[Federal Register Volume 71, Number 24 (Monday, February 6, 2006)]
[Notices]
[Pages 6116-6117]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-1537]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53187; File No. SR-NASD-2006-006]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change and Amendment No. 1 Thereto To Modify the Hours of 
Operation of Nasdaq's Brut System

January 30, 2006.
    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 20, 2006, the National Association of Securities Dealers, 
Inc.(``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc. 
(``Nasdaq''), submitted to the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by Nasdaq. Nasdaq filed the 
proposed rule change pursuant to section 19(b)(3)(A) of the Act \3\ 
which renders it effective upon filing with the Commission. On January 
25, 2006, the Amex filed Amendment No. 1 to the proposed rule 
change.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ Amendment No. 1 clarified that the filing was made pursuant 
to section 19(b)(3)(A)(iii) of the Act and Rule 19b-4(f)(6) 
thereunder.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to amend NASD Rule 4912. The text of the proposed 
rule change is below. Additions are italicized; deletions are 
[bracketed].\5\
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    \5\ Changes are marked to the rule text that appears in the 
electronic NASD Manual found at http://www.nasd.com. Prior to the 
date when The NASDAQ Stock Market LLC (``NASDAQ LLC'') commences 
operations, NASDAQ LLC will file a conforming change to the rules of 
NASDAQ LLC approved in Securities Exchange Act Release No. 53128 
(January 13, 2006).
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* * * * *

4912. Normal Business Hours

    The Brut System operates from [6:30] 7:30 a.m. to 8:00 p.m. Eastern 
Time on each business day.
* * * * *

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

    In its filing with the Commission, Nasdaq 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. Nasdaq 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
    Nasdaq proposes to modify the starting time for the Brut ECN hours 
of operation, order acceptance time, from 6:30 a.m. to 7:30 a.m. 
(Eastern Time). This change will standardize the system start times of 
the Nasdaq Market Center and Nasdaq's Brut Facility.
    The current configuration allows connectivity and order entry from 
the time the System is brought online beginning at 6:30 a.m., which 
allows orders and executions to begin at 6:30 a.m.\6\
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    \6\ Phone call from Jonathan Cayne, Associate General Counsel, 
Nasdaq, to Angela R. Muehr, Attorney, Commission, on January 27, 
2006.
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    The proposed amendment would:
    (1) Allow client connection from System up time, scheduled to begin 
at 6:30 a.m. (this process takes 10-15 minutes);
    (2) Reject orders entered prior to 7:30 a.m.;
    (3) Allow orders and executions beginning at 7:30 a.m.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
section 15A of the Act,\7\ in general, and furthers the objectives of 
section 15A(b)(6) of the Act,\8\ in particular, in that it is designed 
to protect investors and the public interest.
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    \7\ 7 15 U.S.C. 78o-3.
    \8\ 8 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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments on the proposed rule change were neither solicited 
nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Nasdaq has filed the proposed rule change pursuant to section 
19(b)(3)(A) of the Act \9\ and subparagraph (f)(6) of Rule 19b-4 
thereunder.\10\ Because the foregoing proposed rule change: (1) Does 
not significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) does not become operative for 30 days from the date of filing, 
or such shorter time as the Commission may designate if consistent with 
the protection of investors and the public interest, the proposed rule 
change has become effective pursuant to section 19(b)(3)(A) of the Act 
and Rule 19b-4(f)(6) thereunder. As required under Rule 19b-
4(f)(6)(iii), Nasdaq provided the Commission with written notice of its 
intent to file the proposed rule change at least five business days 
prior to filing the proposal with the Commission or such shorter period 
as designated by the Commission.
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    \9\ 9 15 U.S.C. 78s(b)(3)(A).
    \10\ 10 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

[[Page 6117]]

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.\11\
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    \11\ The effective date of the original proposed rule change is 
January 20, 2006 and the effective date of Amendment No. 1 is 
January 25, 2006. The proposed rule change does not become operative 
for 30 days from the date of filing. For purposes of calculating the 
60-day period within which the Commission may summarily abrogate the 
proposed rule change, as amended, under section 19(b)(3)(C) of the 
Act, the Commission considers the period to commence on January 25, 
2006, the date on which Nasdaq submitted Amendment No. 1. See 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-2006-006 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASD-2006-006. 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 Room. Copies of such 
filing also will be available for inspection and copying at the 
principal office of Nasdaq. 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-2006-006 and should be submitted on or before 
February 27, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-1537 Filed 2-3-06; 8:45 am]
BILLING CODE 8010-01-P