[Federal Register Volume 70, Number 43 (Monday, March 7, 2005)]
[Notices]
[Pages 11036-11040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-4293]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51278; File No. SR-NASD-2005-027]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the National Association of 
Securities Dealers, Inc. Clarifying Members' Obligations To Report 
Cancelled Trades

February 28, 2005.
    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 14, 2005, 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. 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.
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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 clarify members' obligations to report the 
cancellation of trades previously submitted to the Nasdaq Market 
Center. Pursuant to Section 19(b)(3)(A)(i) of the Act \3\ and Rule 19b-
4(f)(6) \4\ thereunder, Nasdaq has designated this proposal as 
effecting a change that does not significantly affect the protection of 
investors or the public interest, and does not impose any significant 
burden on competition. Nasdaq is proposing to make the change operative 
60 days after the date of filing. Nasdaq has provided the Commission 
the pre-filing notification as required by subparagraph (iii) of Rule 
19b-4(f)(6).
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    \3\ 15 U.S.C. 78s(b)(3)(A)(i).
    \4\ 17 CFR 240.19b-4(f)(6).
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    The text of the proposed rule change is below. Proposed new 
language is italicized; proposed deletions are in brackets.\5\
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    \5\ The proposed rule change is marked to show changes from the 
rule as it appears in the electronic NASD Manual available at http://www.nasd.com.
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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

[[Page 11037]]

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 cancelled [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 time the 
trade is cancelled [decision to cancel the trade].
    (B) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and cancelled [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 business 
day by 6:30 p.m.
    (C) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and cancelled [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 business 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 cancelled [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 cancelled [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 
business day by 6:30 p.m.
    (F) For any trade cancelled [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 of cancellation if the trade is cancelled before 6:30 p.m. [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 
business day if the trade is cancelled at or after 6:30 p.m.
    (G) For purposes of determining the deadline by which a trade 
cancellation must be reported to Nasdaq pursuant to subparagraph (g) of 
this rule the term ``cancelled'' shall mean the time at which (i) the 
member with the reporting responsibility informs its contra party, or 
is informed by its contra party, that a trade is being cancelled, (ii) 
the member with the reporting responsibility and its contra party agree 
to cancel a trade if neither party can unilaterally cancel the trade, 
or (iii) the member with the reporting responsibility takes an action 
to cancel the trade on its books and records, whichever event occurs 
first.
* * * * *

4640. Reporting Transactions in Nasdaq SmallCap\SM\ 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 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 cancelled [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 time the 
trade is cancelled [decision to cancel the trade].
    (B) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and cancelled [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 business 
day by 6:30 p.m.
    (C) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and cancelled [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 business 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 cancelled [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 cancelled [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 
business day by 6:30 p.m.
    (F) For any trade cancelled [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 of cancellation if the trade is cancelled before 6:30 p.m. [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 
business day if the trade is cancelled at or after 6:30 p.m.
    (G) For purposes of determining the deadline by which a trade 
cancellation must be reported to Nasdaq pursuant to subparagraph (g) of 
this rule the term ``cancelled'' shall mean the time at which (i) the 
member with the reporting responsibility informs its contra party, or 
is informed by its contra party, that a trade is being cancelled, (ii) 
the member with the reporting responsibility and its contra party agree 
to cancel a trade if neither party can unilaterally cancel the trade, 
or (iii) the member with the reporting responsibility takes an action 
to cancel the trade on its books and records, whichever event occurs 
first.
* * * * *

4650. Reporting Transactions in Nasdaq Convertible Debt Securities

* * * * *

[[Page 11038]]

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 cancelled [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 time the 
trade is cancelled [decision to cancel the trade].
    (B) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and cancelled [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 business 
day by 6:30 p.m.
    (C) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and cancelled [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 business 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 cancelled [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 cancelled [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 
business day by 6:30 p.m.
    (F) For any trade cancelled [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 of cancellation if the trade is cancelled before 6:30 p.m. [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 
business day if the trade is cancelled at or after 6:30 p.m.
    (G) For purposes of determining the deadline by which a trade 
cancellation must be reported to Nasdaq pursuant to subparagraph (g) of 
this rule the term ``cancelled'' shall mean the time at which (i) the 
member with the reporting responsibility informs its contra party, or 
is informed by its contra party, that a trade is being cancelled, (ii) 
the member with the reporting responsibility and its contra party agree 
to cancel a trade if neither party can unilaterally cancel the trade, 
or (iii) the member with the reporting responsibility takes an action 
to cancel the trade on its books and records, whichever event occurs 
first.
* * * * *

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 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 cancelled [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 time the 
trade is cancelled [decision to cancel the trade].
    (B) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and cancelled [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 business 
day by 6:30 p.m.
    (C) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and cancelled [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 business 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 cancelled [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 cancelled [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 
business day by 6:30 p.m.
    (F) For any trade cancelled [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 of cancellation if the trade is cancelled before 6:30 p.m. [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 
business day if the trade is cancelled at or after 6:30 p.m.
    (G) For purposes of determining the deadline by which a trade 
cancellation must be reported to Nasdaq pursuant to subparagraph (f) of 
this rule the term ``cancelled'' shall mean the time at which (i) the 
member with the reporting responsibility informs its contra party,

[[Page 11039]]

or is informed by its contra party, that a trade is being cancelled, 
(ii) the member with the reporting responsibility and its contra party 
agree to cancel a trade if neither party can unilaterally cancel the 
trade, or (iii) the member with the reporting responsibility takes an 
action to cancel the trade on its books and records, whichever event 
occurs first.
* * * * *

6600. REPORTING TRANSACTIONS IN OVER-THE-COUNTER EQUITY SECURITIES

* * * * *

6620. 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 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 cancelled [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 time the 
trade is cancelled [decision to cancel the trade].
    (B) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and cancelled [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 business 
day by 6:30 p.m.
    (C) For trades executed between 9:30 a.m. and 4 p.m. Eastern Time 
and cancelled [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 business 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 cancelled [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 cancelled [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 
business day by 6:30 p.m.
    (F) For any trade cancelled [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 of cancellation if the trade is cancelled before 6:30 p.m. [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 
business day if the trade is cancelled at or after 6:30 p.m.
    (G) For purposes of determining the deadline by which a trade 
cancellation must be reported to Nasdaq pursuant to subparagraph (f) of 
this rule the term ``cancelled'' shall mean the time at which (i) the 
member with the reporting responsibility informs its contra party, or 
is informed by its contra party, that a trade is being cancelled, (ii) 
the member with the reporting responsibility and its contra party agree 
to cancel a trade if neither party can unilaterally cancel the trade, 
or (iii) the member with the reporting responsibility takes an action 
to cancel the trade on its books and records, whichever event occurs 
first.
* * * * *

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
    On July 22, 2004, the Commission approved a proposed rule change 
requiring members to report to Nasdaq the cancellation of any trade 
previously reported to Nasdaq, unless the trade is cancelled by Nasdaq 
staff.\6\ Soon after Commission approval, questions were raised about 
the meaning of certain text in the new rules. Specifically, the rule 
requires trades executed and cancelled during normal market hours to be 
reported within 90 seconds of ``the decision to cancel the trade.'' 
Trades cancelled outside normal market hours also must be reported by 
certain specified times. Because the phrase ``the decision to cancel 
the trade'' is susceptible to multiple legitimate interpretations, thus 
making it difficult to impose a uniform standard against which 
compliance with the rule can be judged, Nasdaq is proposing new 
language to clarify the events that trigger the reporting obligation. 
The events are as follows: (1) When the member with the reporting 
obligation informs its contra party, or is informed by its contra 
party, that a trade is being cancelled, (2) when the member and its 
contra party agree to cancel a trade if neither party has the ability 
to unilaterally cancel it, or (3) the member takes an action to cancel 
the trade on its books and records. The new language also makes it 
clear that the earliest occurrence of any one of three specified events 
triggers the reporting obligation. For example, if a member and its 
contra party decide at 11 a.m. that a trade executed that same day 
(after 9:30 a.m.) should be cancelled, the member with the reporting 
obligation must report the cancellation to Nasdaq by 11:01:30 a.m., 
even if the member does not take action to remove the trade from its 
books and records until some time later that day. Requiring the trigger 
to be the earliest of the three events is designed to ensure the 
reporting of the cancellation as soon as possible.\7\
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    \6\ See Securities Exchange Act Release No. 50059 (July 22, 
2004), 69 FR 45103 (July 28, 2004).
    \7\ The original proposed rule change and this current filing 
only establish an obligation to report cancellations and do not 
establish rules governing the circumstance in which it is 
permissible to cancel trades.
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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,\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

[[Page 11040]]

information with respect to, and facilitating transactions in 
securities, and to protect investors and the public interest. The 
proposed rule change will establish clear standards for determining 
when the obligation to report a cancelled trade is triggered, and thus 
it assists members in complying with the reporting obligation. The 
clear standards also will make it easier for the NASD to audit for 
compliance with the rule.
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    \8\ 15 U.S.C. 78o-3.
    \9\ 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 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

    Because the foregoing proposed rule change does not:
    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) Impose any significant burden on competition; and
    (iii) Become operative for 30 days from the date on which it was 
filed,\10\ or such shorter time as the Commission may designate, it has 
become effective pursuant to 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6) \12\ thereunder.
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    \10\ Nasdaq has provided the Commission the pre-filing 
notification as required by subparagraph (iii) of Rule 19b-4(f)(6), 
and intends to make the change operative 60 days after the date of 
filing.
    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
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    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.\13\
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    \13\ 15 U.S.C. 78s(b)(3)(C).
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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 SR-NASD-2005-027 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-2005-027. 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 the 
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-2005-027 and should be submitted on or before March 28, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 05-4293 Filed 3-4-05; 8:45 am]
BILLING CODE 8010-01-P