[Federal Register Volume 69, Number 53 (Thursday, March 18, 2004)]
[Notices]
[Pages 12876-12877]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6070]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49408; File No. S7-10-04]


Regulation NMS

AGENCY: Securities and Exchange Commission.

[[Page 12877]]


ACTION: Notice of hearings.

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SUMMARY: On February 26, 2004, the Securities and Exchange Commission 
(the ``Commission'') approved for publication proposed Regulation NMS 
(the ``Proposing Release''), which is designed to enhance and modernize 
the regulatory structure of the U.S. equity markets (Securities 
Exchange Act Release No. 34-49325). In connection with the Proposing 
Release, the Commission will hold public hearings to give the 
Commission the benefit of the views of interested members of the public 
regarding the issues raised and questions posed in the Proposing 
Release.

DATES: The initial public hearing will be held on April 1, 2004 in 
Washington, DC. A subsequent public hearing will be held on April 21, 
2004 in New York, New York. The following information pertains to both 
hearings. The hearings will begin at 9 a.m. Both hearings will be 
broadcast live and access will be available via webcast on the 
Commission's Web site at http://www.sec.gov. Persons who wish to 
testify at either hearing must submit a written request to the 
Commission specifying the date on which they prefer to testify and, if 
they are flexible as to either date, to specify so in their request. 
The Commission must receive these requests on or before March 22, 2004. 
Persons requesting to testify must also submit three copies of their 
oral statements or a summary of their intended testimony to the 
Commission. The Commission must receive these submissions on or before 
March 26, 2004. Those who do not wish to appear at the hearings may 
submit written testimony on or before the end of the comment period for 
the Proposing Release, which is 75 days after publication of the 
Proposing Release in the Federal Register (May 24, 2004), for inclusion 
in the public comment file.

ADDRESSES: The April 1, 2004 hearing will be held in the William O. 
Douglas Room of the Commission's headquarters at 450 Fifth Street, NW., 
Washington, DC 20549. The April 21, 2004 hearing will be held at the 
InterContinental The Barclay New York at 111 East 48th Street, New 
York, NY 10017. Persons submitting requests to appear or written 
testimony in lieu of testifying should file three copies of the request 
or testimony with Jonathan G. Katz, Secretary, Securities and Exchange 
Commission, 450 Fifth Street, NW., Washington, DC 20459-0609. Persons 
requesting to appear should also submit three copies of their oral 
statement or summary of their testimony to the same address. Requests 
to appear and copies of oral statements or summaries of intended 
testimony may be filed electronically at the following e-mail address: 
[email protected]. The words ``Request to Testify'' should be 
clearly noted on the subject line of the request. All requests and 
other submissions also should refer to File No. S7-10-04. Copies of all 
requests and other submissions and transcripts of the hearings will be 
available for public inspection and copying in the Commission's Public 
Reference Room at 450 Fifth Street, NW., Washington, DC 20549. All 
submitted requests and other materials will be posted on the 
Commission's Internet Web site (http://www.sec.gov). We do not edit 
personal information from submissions. You should submit only 
information that you wish to make available publicly.

FOR FURTHER INFORMATION CONTACT: Sapna C. Patel, Special Counsel, 
Office of Market Supervision, Division of Market Regulation, at (202) 
942-0166, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-1001.

SUPPLEMENTAL INFORMATION:

I. Summary of Rule Proposals

    The public hearings concern the Commission's proposed Regulation 
NMS. As more fully described in the Proposing Release \1\ (available on 
the Commission's Web site at http://www.sec.gov/rules/proposed/34-49325.htm), Regulation NMS would incorporate four substantive proposals 
that are designed to enhance and modernize the regulatory structure of 
the U.S. equity markets. First, the Commission has proposed a uniform 
rule for all national market system (``NMS'') market centers that, 
subject to certain exceptions, would require a market center to 
establish, maintain, and enforce policies and procedures reasonably 
designed to prevent ``trade-throughs''--the execution of an order in 
its market at a price that is inferior to a price displayed in another 
market. Second, the Commission has proposed a market access rule that 
would modernize the terms of access to quotations and execution of 
orders in the NMS. The third proposal would prohibit market 
participants from accepting, ranking, or displaying orders, quotes, or 
indications of interest in a pricing increment finer than a penny, 
except for securities with a share price of below $1.00. Finally, the 
Commission has proposed amendments to the rules and joint industry 
plans for disseminating market information to the public that, among 
other things, would modify the formulas for allocating plan net income 
to reward markets for more broadly based contributions to public price 
discovery. The Commission also has proposed to redesignate the NMS 
rules adopted under Section 11A of the Securities Exchange Act of 1934 
as Regulation NMS. The Commission will consider the hearing record in 
connection with its rulemaking proposals.
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    \1\ Securities Exchange Act Release No. 49325 (February 26, 
2004), 69 FR 11126 (March 9, 2004).
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II. Procedures for Hearing

    The Commission will publish a schedule of appearances for the April 
1st hearing on or about March 26, 2004 and for the April 21st hearing 
on or about April 12, 2004. Based on the number of requests received, 
the Commission may not be able to accommodate all requests. The 
Commission may limit the time for formal presentations or group 
presentations into a series of panels. Time will be reserved for 
members of the Commission and Commission staff to pose questions to 
each witness concerning his or her testimony as well as other matters 
pertaining to the Proposing Release. The Commission has designated 
Jonathan G. Katz, Secretary of the Commission, as the hearing officer.

    Dated: March 12, 2004.

    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-6070 Filed 3-17-04; 8:45 am]
BILLING CODE 8010-01-M