[Federal Register Volume 68, Number 249 (Tuesday, December 30, 2003)]
[Notices]
[Pages 75298-75299]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-31948]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48965; File No. SR-NASD-2003-166]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change and Amendment No. 1 by the 
National Association of Securities Dealers, Inc. To Correct Inaccurate 
Descriptions of the Territorial Boundaries of Two NASD District Offices

December 19, 2003.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on November 12, 2003, the National Association of Securities Dealers, 
Inc. (``NASD'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by NASD. NASD amended the 
proposed rule change on December 18, 2003.\3\ NASD filed the proposed 
rule change pursuant to section 19(b)(3)(A)(i) of the Act,\4\ and Rule 
19b-4(f)(1) thereunder,\5\ as one constituting a stated policy, 
practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule, which renders the 
proposed rule change effective upon filing with the Commission. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change, as amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See December 17, 2003 letter from Patricia M. Albrecht, 
Assistant General Counsel, Regulatory Policy and Oversight, NASD, to 
Katherine A. England, Assistant Director, Division of Market 
Regulation, Commission (``Amendment No. 1''). In Amendment No. 1, 
NASD corrected a typographical error in the proposed rule text, and 
added language to clarify the reason for the proposed rule change. 
For purposes of calculating the 60-day abrogation period, the 
Commission considers the period to have begun on December 18, 2003, 
the day NASD filed Amendment No. 1.
    \4\ 15 U.S.C. 78s(b)(3)(A)(i).
    \5\ 17 CFR 240.19b-4(f)(1)
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    NASD proposes to amend Schedule B to the NASD By-Laws to correct 
the inaccurate descriptions of the territorial boundaries of two NASD 
District Offices. The text of the proposed rule change is available at 
NASD and at the Commission.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, NASD included statements 
concerning the purpose of and basis for the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. NASD has prepared summaries, set forth in Sections A, B, 
and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The proposed rule change would amend Schedule B to the NASD By-Laws 
to correct inaccurate descriptions of Districts 9 and 10. Before 1997, 
the New York counties of Orange, Rockland, Putnam, and Westchester were 
assigned to NASD's District 10 office. In late 1997, during a 
reorganization of the District Offices, District 11 assumed 
responsibility for Orange, Rockland, Putnam, and Westchester counties. 
However, NASD failed to amend Schedule B to reflect this change.
    In 2003, NASD conducted its most recent reorganization of the 
District Offices and, among other things, transferred responsibility 
for the New York counties of Orange, Rockland, Putnam, and Westchester 
from District 11 to District 9. After filing a rule change to Schedule 
B to the NASD By-Laws to reflect the Districts' new descriptions,\6\ 
NASD became aware that the 1997 change was never reflected in Schedule 
B, and that Schedule B still lists District 10 as being responsible for 
the New York counties of Orange, Rockland, Putnam, and Westchester. 
Accordingly, NASD is filing the proposed rule change to amend Schedule 
B to the NASD By-Laws to accurately align these counties within 
District 9.
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    \6\ See Securities Exchange Act Release No. 48488 (September 3, 
2003), 68 FR 54762 (September 12, 2003) (SR-NASD-2003-138).
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2. Statutory Basis
    NASD believes that the proposed rule change is consistent with the 
provisions of section 15A(b)(6) of the Act,\7\ which requires, among 
other things, that NASD's rules must be designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, and, in general, to protect investors and the 
public interest.
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    \7\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    NASD does not believe that the proposed rule change will result in 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act, as amended.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposal has become effective pursuant to section 
19(b)(3)(A)(i) of the Act,\8\ and Rule 19b-4(f)(1) \9\ thereunder, in 
that it constitutes a stated policy and interpretation with respect to 
the meaning of an existing rule. At any time within 60 days of the 
filing of the proposed rule change, the Commission may summarily 
abrogate such rule change if it appears to the Commission that such 
action is necessary or appropriate in the public interest, for the 
protection of investors, or otherwise in furtherance of the purposes of 
the Act.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(i).
    \9\ 17 CFR 240.19b-4(f)(1).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-NASD-2003-166. This file number should be included on the 
subject line if e-mail is used. To help the Commission process and 
review

[[Page 75299]]

comments more efficiently, comments should be sent in hardcopy or by e-
mail but not by both methods. Copies of the submission, all subsequent 
amendments, all written statements with respect to the proposed rule 
change that are filed with the Commission, and all written 
communications relating to the proposed rule change between the 
Commission and any person, other than those that may be withheld from 
the public in accordance with the provisions of 5 U.S.C. 552, will be 
available for inspection and copying in the Commission's Public 
Reference Room. Copies of such filing will also be available for 
inspection and copying at the principal office of the NASD. All 
submissions should refer to file number SR-NASD-2003-166 and should be 
submitted by January 20, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-31948 Filed 12-29-03; 8:45 am]
BILLING CODE 8010-01-P