[Federal Register Volume 69, Number 94 (Friday, May 14, 2004)]
[Notices]
[Pages 26909-26910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10952]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49674; File No. SR-NASD-2004-001]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the National Association of Securities Dealers, Inc. Relating 
to Arbitrator Training Fees

May 10, 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 January 7, 2004, the National Association of Securities Dealers, 
Inc. (``NASD''), through its wholly owned subsidiary, NASD Dispute 
Resolution (``NASD Dispute Resolution''), filed with the Securities and 
Exchange Commission (``SEC'' or ``Commission'') the proposed rule 
change as described in Items I, II, and III below, which Items have 
been prepared by NASD Dispute Resolution. On April 2, 2004, NASD filed 
Amendment No. 1 to the proposed rule change.\3\ 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 letter from Mignon McLemore, NASD, to Katherine England, 
Assistant Director, Division of Market Regulation, Commission, dated 
April 2, 2004.
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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 the fees that are charged to its panel 
member arbitrators. The text of the proposed rule change is available 
at the principal office of NASD and at the Commission.

[[Page 26910]]

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
    NASD proposes to raise the fee for panel member training from $100 
to $125 for all applicants who register for the training after the 
proposed rule change becomes effective. This increase is intended to 
offset increased costs of providing the panel member training program, 
due primarily to increased room rental and staff travel costs. The 
proposed increase of $25 per trainee also will allow NASD to increase 
the honorarium provided to arbitrators who serve as co-trainers for the 
programs.
    Dispute Resolution staff plans to extend the length of the current 
four-hour training program to cover additional subject matter. 
Following approval of the proposed rule change, the usual panel member 
training program will consist of a four-hour morning session, followed 
by a two-hour afternoon session.\4\ During the afternoon session, staff 
and the designated co-trainer, who is an arbitrator on the roster, will 
facilitate a videotaped training on civility. In light of the increased 
length of the training session, NASD plans to raise the honorarium of 
each co-trainer from $300 for a four-hour program to $400 for a six-
hour program.
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    \4\ NASD room rental expenses will not increase, because rates 
quoted are for the entire business day.
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    NASD believes the increase in the training fee will enable it to 
provide in-depth arbitrator training, which will improve the quality of 
the arbitrator roster. Moreover, NASD believes this nominal increase is 
an equitable allocation of reasonable fees among persons using an NASD 
system or facility.
2. Statutory Basis
    NASD believes that the proposed rule change is consistent with the 
provisions of section 15A(b)(6) of the Act, which requires, among other 
things, that the Association'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. NASD believes that the minimal increase in the 
in-person panel member training fee will help NASD improve the 
knowledge and experience of arbitrators and thus, improve the quality 
of the NASD arbitration forum.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 SR-NASD-2004-001 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 SR-NASD-2004-001. 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, 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 SR-NASD-2004-001 
and should be submitted on or before June 4, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 04-10952 Filed 5-13-04; 8:45 am]
BILLING CODE 8010-01-P