[Federal Register Volume 70, Number 202 (Thursday, October 20, 2005)]
[Notices]
[Page 61163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-5787]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52603; File No. SR-NASD-2005-082]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Order Approving Proposed Rule Change and Amendment No. 1 
Thereto To Clarify the Listing Standards Applicable to Companies in 
Bankruptcy Proceedings

October 13, 2005.
    On June 22, 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''), 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 clarify the listing standards applicable to 
companies in bankruptcy proceedings. On August 23, 2005, Nasdaq filed 
Amendment No. 1 to the proposed rule change.\3\ The proposed rule 
change was published for comment in the Federal Register on September 
13, 2005.\4\ The Commission received no comments on the proposal. This 
order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, Nasdaq made typographical corrections to 
the rule text and a correction to the stated purpose of the proposed 
rule change.
    \4\ See Securities Exchange Act Release No. 52385 (September 7, 
2005), 70 FR 54096.
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    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,\5\ the requirements of Section 15A of the Act,\6\ in 
general, and Section 15A(b)(6) of the Act,\7\ in particular, which 
requires, among other things, that NASD's rules be designed to prevent 
fraudulent and manipulative acts and practices, 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. The 
Commission believes the proposed rule change may remove ambiguity 
surrounding the standards applicable to companies involved in 
bankruptcy proceedings and may require such companies to meet 
heightened initial inclusion standards upon emerging from bankruptcy, 
thereby protecting investors and the public interest.
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    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78o-3.
    \7\ 15 U.S.C. 78o-3(b)(6).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-NASD-2005-082), as amended, 
is approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
 [FR Doc. E5-5787 Filed 10-19-05; 8:45 am]
BILLING CODE 8010-01-P