[Federal Register Volume 69, Number 12 (Tuesday, January 20, 2004)]
[Notices]
[Pages 2805-2806]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-1083]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49059; File No. SR-NASD-2003-200]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the National Association of 
Securities Dealers, Inc. Relating to an Amendment to NASD Rule 2130

January 12, 2004.
    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 December 30, 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 has 
designated the proposed rule change as ``non-controversial'' under 
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ 
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 from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    NASD is proposing to amend NASD Rule 2130 to correct a 
typographical error in Rule 2130(c). The text of the proposed rule 
change is set forth below. Proposed new language is in italics; 
proposed deletions are in [brackets].
* * * * *

2130. Obtaining an Order of Expungement of Customer Dispute Information 
From the Central Registration Depository (CRD System)

    (a) and (b) No change.
    (c) For purposes of this rule, the terms ``sales practice 
violation,'' ``investment-related,'' and ``involved'' shall have the 
meanings set forth in the Uniform Application for Securities Industry 
Registration [of] or Transfer (``Form U4'') in effect at the time of 
issuance of the subject expungement order.
* * * * *

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 and 
discussed any comments it received on 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 correct a typographical error in 
NASD

[[Page 2806]]

Rule 2130(c) to change ``Uniform Application for Securities Industry 
Registration of Transfer'' to ``Uniform Application for Securities 
Industry Registration or Transfer.'' \5\
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    \5\ See Securities Exchange Act Release No. 48933 (December 16, 
2003), 68 FR 74667 (December 24, 2003) (SR-NASD-2002-168).
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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 \6\ which requires, among 
other things, that NASD's rules 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. NASD believes that correcting the typographical error 
in NASD Rule 2130(c) to change ``Uniform Application for Securities 
Industry Registration of Transfer'' to the correct title ``Uniform 
Application for Securities Industry Registration or Transfer'' is 
consistent with the protection of investors and the public interest.
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    \6\ 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 would result in 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

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

    Because the foregoing proposed rule change does not:
    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) impose any significant burden on competition; and
    (iii) become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, if 
consistent with the protection of investors and the public interest, it 
has become effective pursuant to Section 19(b)(3)(A) of the Act \7\ and 
Rule 19b-4(f)(6) thereunder.\8\ 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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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
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    NASD has requested that the Commission waive the usual five-
business-day notice period and the usual 30-day pre-operative period. 
The Commission notes that the proposal merely corrects a typographical 
error in NASD Rule 2130(c) and raises no new regulatory issues. As a 
result, the Commission believes that it is consistent with the 
protection of investors and the public interest to waive the five-
business-day notice period and accelerate the operative date so that 
the typographical error can be corrected without delay. For these 
reasons, the Commission designates the proposal to be effective and 
operative upon filing with the Commission.\9\
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    \9\ For purposes only of accelerating the operative date of the 
proposed rule change the Commission considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
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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-2003-200. This file number should be included on the 
subject line if e-mail is used. To help the Commission process and 
review your 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 No. SR-NASD-2003-200 and should be 
submitted by February 10, 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. 04-1083 Filed 1-16-04; 8:45 am]
BILLING CODE 8010-01-P