[Federal Register Volume 68, Number 234 (Friday, December 5, 2003)]
[Notices]
[Page 68129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-30251]


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SECURITIES AND EXCHANGE COMMISSION

[(Release No. 34-48854; File No. SR-NASD-2003-135)]


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change and Amendment No. 1 Thereto by the National Association of 
Securities Dealers, Inc. To Aggregate Odd-Lot Amounts for Display in 
SuperMontage Under Certain Circumstances

November 28, 2003.
    On August 28, 2003, the National Association of Securities Dealers, 
Inc. (``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc. 
(``Nasdaq'') submitted to the Securities and Exchange Commission 
(``Commission''), pursuant to section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to aggregate odd-lot share amounts inside the 
inside spread for display purposes via the SIZE MMID. On October 20, 
2003, Nasdaq filed Amendment No. 1 to the proposed rule change.\3\ The 
Federal Register published the proposed rule change, as amended, for 
comment on October 28, 2003.\4\ The Commission received no comments on 
the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Mary M. Dunbar, Vice President and Deputy 
General Counsel, Nasdaq, to Katherine A. England, Assistant 
Director, Division of Market Regulation, Commission, dated October 
17, 2003 (``Amendment No. 1''). Amendment No. 1 replaced and 
superseded the original proposed rule change in its entirety.
    \4\ See Securities Exchange Act Release No. 48671 (October 21, 
2003), 68 FR 61531.
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    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities association 
\5\ and, in particular, the requirements of section 15A of the Act \6\ 
and the rules and regulations thereunder. The Commission notes that the 
proposed rule change, as amended, permits Nasdaq to aggregate odd-lots 
for display purposes that better the Nasdaq inside market and that 
combined equal or are larger than one round lot, thus increasing 
transparency and providing investors with greater price information. 
Therefore, the Commission finds the proposed rule change is designed to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and a national 
market system, and, in general, to protect investors and the public 
interest, consistent with section 15A(b)(6) of the Act.\7\ As proposed 
by Nasdaq, the proposed rule change will be effective on December 8, 
2003.
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    \5\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78o-3.
    \7\ 15 U.S.C. 78o-3(b)(6).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change, as amended, (SR-NASD-2003-135) 
be, and it hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-30251 Filed 12-4-03; 8:45 am]
BILLING CODE 8010-01-P