[Federal Register Volume 69, Number 86 (Tuesday, May 4, 2004)]
[Notices]
[Pages 24697-24698]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10035]



[[Page 24697]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49622; File No. SR-NASD-2004-063]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by the National Association of 
Securities Dealers, Inc. To Modify NASD Rule 4619 To Correct a 
Typographical Error

April 27, 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 April 14, 2004, 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'') the proposed rule change as described in items I, II 
and III below, which items have been prepared by Nasdaq. Nasdaq filed 
this proposal pursuant to section 19(b)(3)(A)(iii) of the Act \3\ and 
Rule 19b-4(f)(3) \4\ thereunder, as one concerned solely with the 
administration of the self-regulatory organization, which renders the 
proposal 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)(iii).
    \4\ 17 CFR 240.19b-4(f)(3).
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    Nasdaq proposes to modify NASD Rule 4619 to correct a typographical 
error in the rule text.
    Below is the text of the proposed rule change. Proposed new 
language is italics; proposed deletions are in [brackets].\5\
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    \5\ Nasdaq has stated that changes are marked from the text of 
Rule 4619(c) that was approved in Securities Exchange Act Release 
No. 49427 (March 16, 2004), 69 FR 13606 (March 23, 2004), which is 
not yet reflected in the electronic NASD Manual available at http://www.nasd.com. Nasdaq represents that there are no other pending or 
approved rule filings that would affect the text of this Rule.
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* * * * *
4619. Withdrawal of Quotations and Passive Market Making
    (a)-(b) No change
    (c) Excused withdrawal status based on circumstances beyond the 
market maker's control, other than systemic equipment problems, may be 
granted for up to five (5) business days, unless extended by Nasdaq 
MarketWatch. Excused withdrawal status based on demonstrated legal or 
regulatory requirements, supported by appropriate documentation and 
accompanied by a representation that the condition necessitating the 
withdrawal of quotations is not permanent in nature, may, upon 
notification, be granted for not more than sixty (60) days (unless such 
request is required to be made pursuant to paragraph [(d)](e) below). 
Excused withdrawal status based on religious holidays may be granted 
only if written notice is received by the Association one business day 
in advance and is approved by the Association. Excused withdrawal 
status based on vacation may be granted only if:
    (1)-(3) No change
* * * * *

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

    In its filing with the Commission, Nasdaq 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. Nasdaq 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 seeks to correct a typographical error in 
NASD Rule 4619(c). The cross reference to ``paragraph (d)'' in NASD 
Rule 4619(c) should be deleted and replaced with a cross reference to 
``paragraph (e)'' to reflect a previously approved rule change adding a 
new paragraph (b).\6\
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    \6\ See Securities Exchange Act Release No. 49427 (March 16, 
2004), 69 FR 13606 (March 23, 2004).
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2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of section 15A of the Act,\7\ in general and, in 
particular, with section 15A(b)(6) of the Act,\8\ in that it is 
designed to foster cooperation and coordination with persons engaged in 
regulating, clearing, settling, processing information with respect to, 
and facilitating transactions in securities and, in general, to protect 
investors and the public interest. The proposed rule change clarifies 
NASD Rule 4619(c) by correcting a typographical error.
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    \7\ 15 U.S.C. 78o-3.
    \8\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Nasdaq does not believe that the proposed rule change will impose 
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

    No written comments were solicited or received with respect to the 
proposed rule change.

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)(iii) of the Act \9\ and Rule 19b-4(f)(3) \10\ thereunder as 
one concerned solely with the administration of the self-regulatory 
organization. At any time within 60 days of the filing of such 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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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(3).
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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. Comments may be submitted by any of 
the following methods:
    Electronic comments:
     Use the Commission's Internet comment form 
(http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please 
include File Number NASD-2004-063 on the subject line.
    Paper comments:
     Send paper comments in triplicate to Jonathan G. 
Katz, Secretary, Securities and Exchange Commission, 450 Fifth Street, 
NW., Washington, DC 20549-0609.
    All submissions should refer to File Number NASD-2004-063. This 
file number should be included on the

[[Page 24698]]

subject line if e-mail is used. To help the Commission process and 
review your comments more efficiently, please use only one method. The 
Commission will post all comments on the Commission's Internet Web site 
(http://www.sec.gov/rules/sro.shtml). 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 Section, 450 Fifth Street, NW., Washington, DC 20549. Copies 
of such filing also will be available for inspection and copying at the 
principal office of NASD. All comments received will be posted without 
change; the Commission does not edit personal identifying information 
from submissions. You should submit only information that you wish to 
make available publicly. All submissions should refer to File Number 
NASD-2004-063 and should be submitted on or before May 25, 2004.

    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).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-10035 Filed 5-3-04; 8:45 am]
BILLING CODE 8010-01-P