[Federal Register Volume 69, Number 9 (Wednesday, January 14, 2004)]
[Notices]
[Page 2167]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-803]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49029; File No. SR-NASD-2003-145]


Self-Regulatory Organizations; Order Granting Accelerated 
Approval to a Proposed Rule Change and Amendment Nos. 1 and 2 Thereto 
by the National Association of Securities Dealers, Inc. To Give 
Authority to a 3-Member Subcommittee of NASD's Market Regulation 
Committee To Review Alternative Display Facility System Outage and 
Denial of Excused Withdrawal Determinations

January 6, 2004.
    On September 25, 2003, the National Association of Securities 
Dealers, Inc. (``NASD'') submitted the proposed rule change 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\ On November 24, 2003 and December 2, 
2003, NASD filed Amendment Nos. 1\3\ and 2\4\ to the proposed rule 
change, respectively. The proposed rule change amends NASD Rules 4300A 
and 4619A(g) to give jurisdiction to a 3-member subcommittee of NASD's 
Market Regulation Committee (``MRC'') to review system outage 
determinations under Rule 4300A(f) and excused withdrawal denials under 
Rule 4619A. The Federal Register published the proposed rule change, as 
amended, for comment on December 15, 2003.\5\ 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\ NASD filed a new Form 19b-4, which replaces and supersedes 
the original filing in its entirety.
    \4\ Letter from Philip A. Shaikun, Office of General Counsel, 
Regulatory Policy and Oversight, NASD, to Katherine A. England, 
Assistant Director, Division of Market Regulation, Commission, dated 
December 2, 2003 (``Amendment No. 2''). Amendment No. 2 deletes the 
following sentence from Exhibit 1 to the Form 19b-4: ``NASD has 
designated the proposed rule change as concerned solely with 
administration of the self-regulatory organization under Section 
19(b)(3)(A)(iii) of the Act and Rule 19b-4(f)(3) thereunder, which 
renders the proposal effective upon receipt of this filing by the 
Commission.''
    \5\ Securities Exchange Act Release No. 48880 (December 4, 
2003), 68 FR 69734.
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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 exchange \6\ 
and, in particular, the requirements of Section 6 of the Act \7\ and 
the rules and regulations thereunder. The Commission finds that the 
proposed rule change is consistent with Section 6(b)(5) of the Act \8\ 
and believes that the proposed rules should enable the NASD to take 
advantage of the MRC committee's expertise, and at the same time 
continue to provide market participants a sufficient process by which 
to appeal system outage and excused withdraw determinations.
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    \6\ 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).
    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(5).
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    The Commission finds good cause for accelerating approval of the 
proposed rule change and Amendment Nos. 1 and 2 prior to the thirtieth 
day after publication in the Federal Register. The Commission believes 
that accelerated approval will permit, without undue delay, the 3-
member subcommittee of NASD's MRC to review system outage 
determinations and excused withdrawal denials. Accordingly, the 
Commission finds good cause, consistent with Section 19(b)(2) of the 
Act,\9\ to approve the proposed rule change, as amended, prior to the 
thirtieth day after publication of the notice of filing.
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    \9\ 15 U.S.C. 78s(b)(2).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-NASD-2003-145), as amended, 
is hereby approved, on an accelerated basis.
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    \10\ Id.
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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).

J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 04-803 Filed 1-13-04; 8:45 am]
BILLING CODE 8010-01-P