[Federal Register Volume 69, Number 116 (Thursday, June 17, 2004)]
[Notices]
[Pages 33980-33984]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-13640]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49844; File No. SR-NASD-2004-021]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change and Amendment No. 1 Thereto by the National Association of 
Securities Dealers, Inc. Relating to Reporting of Cancelled Trades

June 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 February 4, 2004, the National Association of Securities Dealers, 
Inc. (``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc. 
(``Nasdaq''), 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 Nasdaq. On May 19, 
2004, Nasdaq filed an amendment 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 Mary M. Dunbar, Vice President and Deputy 
General Counsel, Nasdaq, to Katherine A. England, Assistant 
Director, Commission, dated May 18, 2004 (``Amendment No. 1''). 
Amendment No. 1 replaced Nasdaq's February 4, 2004 filing in its 
entirety. Amendment No. 1 is incorporated into this notice.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change Regarding Reporting of Cancelled 
Trades

    Nasdaq proposes to require members to report the cancellation of 
any trades previously submitted to the Nasdaq Market Center. The text 
of the proposed rule change is below. Proposed new language is 
italicized.\4\
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    \4\ The proposed rule change is marked to show changes from the 
rule as it appears in the electronic NASD Manual available at 
www.nasd.com, and also reflects a proposal to rename the Automated 
Confirmation Transaction Service to the Nasdaq Market Center as 
contained in proposed rule change filing SR-NASD-2004-076.
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* * * * *
4630. Reporting Transactions in Nasdaq National Market Securities
* * * * *
4632. Transaction Reporting
* * * * *

(g) Reporting Cancelled Trades

(1) Obligation and Party Responsible for Reporting Cancelled Trades

    With the exception of trades cancelled by Nasdaq staff in 
accordance with Rule 11890, members shall report to the Nasdaq Market 
Center the cancellation of any trade previously submitted to the Nasdaq 
Market Center. The member responsible under Rule 5430(b) for submitting 
the original trade report shall submit the cancellation report in 
accordance with the procedures set forth in paragraph (g)(2). For 
trades executed through a Nasdaq system that automatically reports 
trades to the Nasdaq Market Center, the member that would have been 
required by Rule 5430(b) to report the trade (but for the trade being 
reported automatically by the Nasdaq system) shall submit the 
cancellation report in accordance with the procedures set forth in 
paragraph (g)(2).

(2) Deadlines for Reporting Cancelled Trades

    (A) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs before 5:13:30 p.m. on the 
date of execution, the member responsible under paragraph (g)(1) shall 
report the cancellation within 90 seconds of the decision to cancel the 
trade.
    (B) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs after 5:13:30 p.m., but 
before 5:15 p.m. on the date of execution, the member responsible under 
paragraph (g)(1) shall use its best efforts to report the cancellation 
not later than 5:15 p.m. on the date of execution, and otherwise it 
shall report the cancellation on the following day by 6:30 p.m.
    (C) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs after 5:15 p.m. on the date 
of execution, the member responsible under paragraph (g)(1) shall 
report the cancellation on the following day by 6:30 p.m.
    (D) For trades executed outside the hours of 9:30 a.m. to 4 p.m. 
Eastern Time and for which a decision to cancel is made prior to 6:30 
p.m. on the date of execution, the member responsible for reporting 
under paragraph (g)(1) shall report the cancellation by 6:30 p.m.
    (E) For trades executed outside the hours of 9:30 a.m. to 4 p.m. 
Eastern Time and for which the decision to cancel occurs after 6:30 
p.m. on the date of execution, the member responsible under paragraph 
(g)(1) shall report the cancellation on the following day by 6:30 p.m.
    (F) For any trade for which the decision to cancel occurs on any 
date after the date of execution, the member responsible under 
paragraph (g)(1) shall report the cancellation (i) if the decision to 
cancel occurs before 6:30 p.m., then by 6:30 p.m. on the date when the 
decision to cancel occurs, or (ii) if the decision to cancel occurs at 
or after 6:30 p.m., then by 6:30 p.m. on the following day.
* * * * *
4640. Reporting Transactions in Nasdaq SmallCapSM Market Securities
* * * * *
4642. Transaction Reporting
* * * * *
    (g) Reporting Cancelled Trades
    (1) Obligation and Party Responsible for Reporting Cancelled Trades
    With the exception of trades cancelled by Nasdaq staff in 
accordance with Rule 11890, members shall report to the Nasdaq Market 
Center the cancellation of any trade previously submitted to the Nasdaq 
Market Center. The member responsible under Rule 5430(b) for submitting 
the original trade report shall submit the cancellation report in 
accordance with the procedures set forth in paragraph (g)(2). For 
trades executed through a Nasdaq system that automatically reports 
trades to the Nasdaq Market Center, the member that would have been 
required by Rule 5430(b) to report the trade (but for the trade being 
reported automatically by

[[Page 33981]]

the Nasdaq system) shall submit the cancellation report in accordance 
with the procedures set forth in paragraph (g)(2).
    (2) Deadlines for Reporting Cancelled Trades
    (A) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs before 5:13:30 p.m. on the 
date of execution, the member responsible under paragraph (g)(1) shall 
report the cancellation within 90 seconds of the decision to cancel the 
trade.
    (B) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs after 5:13:30 p.m., but 
before 5:15 p.m. on the date of execution, the member responsible under 
paragraph (g)(1) shall use its best efforts to report the cancellation 
not later than 5:15 p.m. on the date of execution, and otherwise it 
shall report the cancellation on the following day by 6:30 p.m.
    (C) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs after 5:15 p.m. on the date 
of execution, the member responsible under paragraph (g)(1) shall 
report the cancellation on the following day by 6:30 p.m.
    (D) For trades executed outside the hours of 9:30 a.m. to 4 p.m. 
Eastern Time and for which a decision to cancel is made prior to 6:30 
p.m. on the date of execution, the member responsible for reporting 
under paragraph (g)(1) shall report the cancellation by 6:30 p.m.
    (E) For trades executed outside the hours of 9:30 a.m. to 4 p.m. 
Eastern Time and for which the decision to cancel occurs after 6:30 
p.m. on the date of execution, the member responsible under paragraph 
(g)(1) shall report the cancellation on the following day by 6:30 p.m.
    (F) For any trade for which the decision to cancel occurs on any 
date after the date of execution, the member responsible under 
paragraph (g)(1) shall report the cancellation (i) if the decision to 
cancel occurs before 6:30 p.m., then by 6:30 p.m. on the date when the 
decision to cancel occurs, or (ii) if the decision to cancel occurs at 
or after 6:30 p.m., then by 6:30 p.m. on the following day.
* * * * *
4650. Reporting Transactions in Nasdaq Convertible Debt Securities
* * * * *
4652. Transaction Reporting
* * * * *
    (g) Reporting Cancelled Trades
    (1) Obligation and Party Responsible for Reporting Cancelled Trades
    With the exception of trades cancelled by Nasdaq staff in 
accordance with Rule 11890, members shall report to the Nasdaq Market 
Center the cancellation of any trade previously submitted to the Nasdaq 
Market Center. The member responsible under Rule 5430(b) for submitting 
the original trade report shall submit the cancellation report in 
accordance with the procedures set forth in paragraph (g)(2). For 
trades executed through a Nasdaq system that automatically reports 
trades to the Nasdaq Market Center, the member that would have been 
required by Rule 5430(b) to report the trade (but for the trade being 
reported automatically by the Nasdaq system) shall submit the 
cancellation report in accordance with the procedures set forth in 
paragraph (g)(2).
    (2) Deadlines for Reporting Cancelled Trades
    (A) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs before 5:13:30 p.m. on the 
date of execution, the member responsible under paragraph (g)(1) shall 
report the cancellation within 90 seconds of the decision to cancel the 
trade.
    (B) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs after 5:13:30 p.m., but 
before 5:15 p.m. on the date of execution, the member responsible under 
paragraph (g)(1) shall use its best efforts to report the cancellation 
not later than 5:15 p.m. on the date of execution, and otherwise it 
shall report the cancellation on the following day by 6:30 p.m.
    (C) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs after 5:15 p.m. on the date 
of execution, the member responsible under paragraph (g)(1) shall 
report the cancellation on the following day by 6:30 p.m.
    (D) For trades executed outside the hours of 9:30 a.m. to 4 p.m. 
Eastern Time and for which a decision to cancel is made prior to 6:30 
p.m. on the date of execution, the member responsible for reporting 
under paragraph (g)(1) shall report the cancellation by 6:30 p.m.
    (E) For trades executed outside the hours of 9:30 a.m. to 4 p.m. 
Eastern Time and for which the decision to cancel occurs after 6:30 
p.m. on the date of execution, the member responsible under paragraph 
(g)(1) shall report the cancellation on the following day by 6:30 p.m.
    (F) For any trade for which the decision to cancel occurs on any 
date after the date of execution, the member responsible under 
paragraph (g)(1) shall report the cancellation (i) if the decision to 
cancel occurs before 6:30 p.m., then by 6:30 p.m. on the date when the 
decision to cancel occurs, or (ii) if the decision to cancel occurs at 
or after 6:30 p.m., then by 6:30 p.m. on the following day.
* * * * *
6100. Trade Reporting Service
* * * * *
6130. Trade Report Input
* * * * *
    (f) Reporting Cancelled Trades
    (1) Obligation and Party Responsible for Reporting Cancelled Trades
    With the exception of trades cancelled by Nasdaq staff in 
accordance with Rule 11890, members shall report to the Nasdaq Market 
Center the cancellation of any trade previously submitted to the Nasdaq 
Market Center. The member responsible under Rules 5430, 6420, or 6620 
for submitting the original trade report shall submit the cancellation 
report in accordance with the procedures set forth in paragraph (f)(2). 
For trades executed through a Nasdaq system that automatically reports 
trades to the Nasdaq Market Center, the member that would have been 
required by Rule 5430, 6420, or 6620 to report the trade (but for the 
trade being reported automatically by the Nasdaq system) shall submit 
the cancellation report in accordance with the procedures set forth in 
paragraph (f)(2).
    (2) Deadlines for Reporting Cancelled Trades
    Members shall comply with deadlines established in Rules 4632, 
4642, 4652, 6420, and 6620 for reporting cancelled trades.
* * * * *
6420. Transaction Reporting
* * * * *
    (f) Reporting Cancelled Trades
    (1) Obligation and Party Responsible for Reporting Cancelled Trades
    With the exception of trades cancelled by Nasdaq staff in 
accordance with Rule 11890, members shall report to the Nasdaq Market 
Center the cancellation of any trade previously submitted to the Nasdaq 
Market Center. The member responsible under Rule 6420 for submitting 
the original trade report shall submit the cancellation report in 
accordance with the procedures set forth in paragraph (f)(2). For 
trades executed through a Nasdaq system that automatically reports 
trades to the Nasdaq Market Center, the member that

[[Page 33982]]

would have been required by Rule 6420 to report the trade (but for the 
trade being reported automatically by the Nasdaq system) shall submit 
the cancellation report in accordance with the procedures set forth in 
paragraph (f)(2).
    (2) Deadlines for Reporting Cancelled Trades
    (A) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs before 5:13:30 p.m. on the 
date of execution, the member responsible under paragraph (f)(1) shall 
report the cancellation within 90 seconds of the decision to cancel the 
trade.
    (B) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs after 5:13:30 p.m., but 
before 5:15 p.m. on the date of execution, the member responsible under 
paragraph (f)(1) shall use its best efforts to report the cancellation 
not later than 5:15 p.m. on the date of execution, and otherwise it 
shall report the cancellation on the following day by 6:30 p.m.
    (C) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs after 5:15 p.m. on the date 
of execution, the member responsible under paragraph (f)(1) shall 
report the cancellation on the following day by 6:30 p.m.
    (D) For trades executed outside the hours of 9:30 a.m. to 4 p.m. 
Eastern Time and for which a decision to cancel is made prior to 6:30 
p.m. on the date of execution, the member responsible for reporting 
under paragraph (f)(1) shall report the cancellation by 6:30 p.m.
    (E) For trades executed outside the hours of 9:30 a.m. to 4 p.m. 
Eastern Time and for which the decision to cancel occurs after 6:30 
p.m. on the date of execution, the member responsible under paragraph 
(f)(1) shall report the cancellation on the following day by 6:30 p.m.
    (F) For any trade for which the decision to cancel occurs on any 
date after the date of execution, the member responsible under 
paragraph (f)(1) shall report the cancellation (i) if the decision to 
cancel occurs before 6:30 p.m., then by 6:30 p.m. on the date when the 
decision to cancel occurs, or (ii) if the decision to cancel occurs at 
or after 6:30 p.m., then by 6:30 p.m. on the following day.
* * * * *
6600. REPORTING TRANSACTIONS IN OVER-THE-COUNTER EQUITY SECURITIES
* * * * *
6620. Transaction Reporting
* * * * *
    (f) Reporting Cancelled Trades
    (1) Obligation and Party Responsible for Reporting Cancelled Trade
    With the exception of trades cancelled by Nasdaq staff in 
accordance with Rule 11890, members shall report to the Nasdaq Market 
Center the cancellation of any trade previously submitted to the Nasdaq 
Market Center. The member responsible under Rule 6620 for submitting 
the original trade report shall submit the cancellation report in 
accordance with the procedures set forth in paragraph (f)(2). For 
trades executed through a Nasdaq system that automatically reports 
trades to the Nasdaq Market Center, the member that would have been 
required by Rule 6620 to report the trade (but for the trade being 
reported automatically by the Nasdaq system) shall submit the 
cancellation report in accordance with the procedures set forth in 
paragraph (f)(2).
    (2) Deadlines for Reporting Cancelled Trades
    (A) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs before 5:13:30 p.m. on the 
date of execution, the member responsible under paragraph (f)(1) shall 
report the cancellation within 90 seconds of the decision to cancel the 
trade.
    (B) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs after 5:13:30 p.m., but 
before 5:15 p.m. on the date of execution, the member responsible under 
paragraph (f)(1) shall use its best efforts to report the cancellation 
not later than 5:15 p.m. on the date of execution, and otherwise it 
shall report the cancellation on the following day by 6:30 p.m.
    (C) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and for which the decision to cancel occurs after 5:15 p.m. on the date 
of execution, the member responsible under paragraph (f)(1) shall 
report the cancellation on the following day by 6:30 p.m.
    (D) For trades executed outside the hours of 9:30 a.m. to 4 p.m. 
Eastern Time and for which a decision to cancel is made prior to 6:30 
p.m. on the date of execution, the member responsible for reporting 
under paragraph (f)(1) shall report the cancellation by 6:30 p.m.
    (E) For trades executed outside the hours of 9:30 a.m. to 4 p.m. 
Eastern Time and for which the decision to cancel occurs after 6:30 
p.m. on the date of execution, the member responsible under paragraph 
(f)(1) shall report the cancellation on the following day by 6:30 p.m.
    (F) For any trade for which the decision to cancel occurs on any 
date after the date of execution, the memeber responsible under 
paragraph (f)(1) shall report the cancellation (i) if the decision to 
cancel occurs before 6:30 p.m., then by 6:30 p.m. on the date when the 
decision to cancel occurs, or (ii) if the decision to cancel occurs at 
or after 6:30 p.m., then by 6:30 p.m. on the following day.
* * * * *

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

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

1. Purpose
    Market participants make trading and investment decisions based in 
part on information disseminated by Nasdaq about trades executed in its 
market. To improve the quality of this information, Nasdaq is proposing 
to require members to report the cancellation of any trades previously 
submitted to the Nasdaq Market Center.
    Specifically, Nasdaq is proposing to require members to notify 
Nasdaq, through a submission, when they cancel a trade previously 
reported to Nasdaq.\5\ The member that originally had the obligation to 
report the trade also will have the responsibility to report the 
cancellation of the trade.\6\ Nasdaq proposes to set different 
deadlines--5:15 p.m. same day, 6:30 p.m. same day, or 6:30 p.m. of the 
next trading day--depending on when the original trade is executed and 
when the decision to cancel occurs. The 5:15 p.m. deadline corresponds 
to the final dissemination of market pricing information for trades 
executed during normal market hours (9:30 a.m.-4 p.m.), such as high/
low/last sale and Nasdaq Official Closing Price (``NOCP'') values. The 
6:30 p.m.

[[Page 33983]]

deadline corresponds to the final dissemination of volume totals, and 
the close of the Nasdaq Securities Information Processor and the Nasdaq 
trade reporting system.
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    \5\ Members will not be required to submit a cancellation report 
if Nasdaq cancels a trade using its authority under NASD Rule 11890. 
In such situations, Nasdaq submits the cancellation report.
    \6\ For cancelled trades executed through the Nasdaq Market 
Center execution service, which automatically submits trade reports, 
the member that would have been responsible for submitting the 
original report (but for the system reporting the trade) will be 
responsible for initiating the cancellation. For example, when trade 
executed between two market makers in the Nasdaq Market Center 
execution service is subsequently cancelled, the sell side member is 
responsible for initiating the cancellation.
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    There are four possible scenarios. First, for a trade executed 
during normal market hours that is reported as cancelled prior to 5:15 
p.m. on the same day the trade occurred, the cancellation could impact 
high/low/last sale values and possibly NOCP values. So that Nasdaq can 
quickly and accurately reflect the cancellation, Nasdaq proposes a 90 
second reporting obligation (with best efforts to report cancellations 
that occur after 5:13:30 p.m. and before 5:15 p.m.).
    Second, for a trade executed during normal market hours that is 
cancelled after 5:15 p.m. on the same day the trade occurred, the 
cancellation is to be reported by 6:30 p.m. on the following trading 
day. The trading community and investing public require finalized 
pricing information (i.e., high/low/last and closing prices) at a time 
reasonably related to the 4 p.m. close of regular market-hours trading. 
Allowing a firm to submit a cancelled report of a market hours trade 
after 5:15 p.m. on trade date would require Nasdaq to adjust its prices 
up until this new time, a departure from long-standing industry 
practices and inconsistent with the 5:15 p.m. deadline for reporting a 
market-hours trade.\7\ Next day reporting of the cancellation 
adequately corrects the regulatory audit trail, but does not impact the 
previous day's reported price information.
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    \7\ The deadline for the cancellation of these trades to affect 
volume is set at 5:15 p.m. to remain consistent with the 5:15 p.m. 
deadline for dissemination of high/low/last and NOCP that also 
applies to these trades.
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    Third, for a trade executed outside of normal market hours that is 
cancelled prior to 6:30 p.m. on the day of the trade, the cancellation 
is to be reported prior to the close of Nasdaq's reporting system at 
6:30 p.m. The 6:30 p.m. time is consistent with the report time for 
trades executed outside of normal market hours. Trades that occur 
outside of normal market hours (i.e., .T trades) do not impact high/
low/last sale or NOCP values, but do impact volume. If, however, the 
trade is cancelled after 6:30 p.m. on the day of the trade, the 
cancellation is to be reported by 6:30 p.m. on the next following day.
    Fourth, for any trade, whether a normal market hours trade or a .T 
trade, cancelled after 6:30 p.m. or on a day subsequent to the day the 
trade occurred, there is no impact to high/low/last sale, NOCP values 
or volume. Since the only correction made is to the audit trail, these 
cancellations are to be reported either by 6:30 p.m. on the day in 
which the decision to cancel is made, provided the decision to cancel 
occurs before 6:30 p.m., or the next following day if the decision 
occurs after 6:30 p.m. Nasdaq will issue additional guidance informing 
members of any technical requirements for reporting the cancellation of 
a trade, as appropriate.
    This reporting requirement will improve the accuracy of the 
information disseminated by Nasdaq. Today, members are not required to 
notify Nasdaq when the parties agree to cancel a trade. The lack of a 
reporting obligation creates a problem when the original trade, now 
cancelled, has already been reported to Nasdaq, included in the high 
and low price calculations for the security, and disseminated to market 
participants. During its routine surveillance, Nasdaq has found that in 
some situations cancelled trades have set a new high or low price for a 
security; Nasdaq believes a cancelled trade should not set these 
values. When Nasdaq discovers this situation, it removes the cancelled 
trade from the high and low price calculations and corrects its audit 
trail. However, Nasdaq cannot take these remedial measures if it does 
not know that a trade has been cancelled. Nasdaq's proposal will 
provide it the requisite notice so that it can take any actions 
necessary to correct the information disseminated and to correct its 
audit trail.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 15A of the Act,\8\ in general, and with 
Section 15A(b)(6) of the Act,\9\ in particular, in that it is designed 
to prevent fraudulent and manipulative acts and practices, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, and to protect investors and 
the public interest. The proposed rule change will improve the quality 
of information disseminated by Nasdaq about the prices at which stocks 
are trading in its market.
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    \8\ 15 U.S.C. 78o-3.
    \9\ 15 U.S.C. 78o-3(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 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, as amended, 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-2004-021 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-2004-021. 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

[[Page 33984]]

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 the Amex. 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-2004-021 and should be submitted on or before July 
8, 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. 04-13640 Filed 6-16-04; 8:45 am]
BILLING CODE 8010-01-P