[Federal Register Volume 69, Number 162 (Monday, August 23, 2004)]
[Notices]
[Page 51873]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-19243]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50199; File No. SR-NASD-2004-079]


Self-Regulatory Organizations; Order Granting Approval of 
Proposed Rule Change and Amendment Nos. 1 and 2 Thereto by the National 
Association of Securities Dealers, Inc., To Provide for the Web 
Publication of Summaries of Interpretations Issued Under NASD Rule 4550

August 13, 2004.
    On May 14, 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''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to provide for the web publication of summaries of 
interpretations issued under NASD Rule 4550. On June 18, 2004, the 
Nasdaq submitted Amendment No. 1 to the proposal.\3\ One June 25, 2004, 
the Nasdaq submitted Amendment No. 2 to the proposal.\4\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Edward S. Knight, Executive Vice President, 
Nasdaq, to Katherine A. England, Assistant Director, Division of 
Market Regulation (``Division''), Commission, dated June 17, 2004 
(``Amendment No. 1''). Amendment No. 1 replaced and superseded the 
original filing in its entirety. In Amendment No. 1, Nasdaq added 
the 90-day publication date requirements and changed the filing from 
one under Section 19(b)(3)(A) of the Act to one under Section 
19(b)(2) of the Act.
    \4\ See letter from T. Eric Lai, Senior Attorney, Nasdaq, to 
Katherine A. England, Assistant Director, Division, Commission, 
dated June 25, 2004 (``Amendment No. 2''). In Amendment No. 2, 
Nasdaq removed a sentenced relating to the timing for the 
implementation of the proposal.
---------------------------------------------------------------------------

    The proposed rule change, as amended, was published for notice and 
comment in the Federal Register on July 6, 2004.\5\ The Commission 
received no comment letters on the proposal.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 49935 (June 29, 
2004), 69 FR 40699.
---------------------------------------------------------------------------

    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities association 
\6\ and, in particular, the requirements of Section 15A(b)(6) of the 
Act.\7\ Section 15A(b)(6) requires, among other things, that the rules 
of an association be designed to promote just and equitable principles 
of trade, to remove impediments to and perfect the mechanism of a free 
and open market and a national market system, and, in general, to 
protect investors and the public interest.
---------------------------------------------------------------------------

    \6\ In approving this proposed rule change, the Commission 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

    The Commission notes that the proposal is seeking to codify 
Nasdaq's current practice of publishing anonymous summaries of its 
written interpretations of NASD listing rules on the NASD website. The 
Commission believes that publishing these summaries of Nasdaq's 
interpretations will provide Nasdaq issuers with additional guidance to 
help them comply with NASD listing rules. The Commission also believes 
that publishing the summaries of Nasdaq's written interpretations 
should reduce the number of requests from listed issuers who might be 
seeking guidance on identical or similar previously interpreted 
matters. As a result, the Commission believes that the proposed rule 
change could significantly reduce the burden on Nasdaq of producing 
superfluous written interpretations on NASD listing rules. Therefore, 
the Commission finds that the proposed rule change is consistent with 
the Act.
    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-NASD-2004-079), as amended by 
Amendment Nos. 1 and 2, be hereby approved.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-19243 Filed 8-20-04; 8:45 am]
BILLING CODE 8010-01-P