[Federal Register Volume 71, Number 76 (Thursday, April 20, 2006)]
[Notices]
[Pages 20429-20430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-5915]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53653; File No. SR-NASD-2006-035]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Order Granting Accelerated Approval of Proposed Rule 
Change Relating to Proposed Amendments to IM 2110-2 to Codify NASD's 
Existing Position that the Manning Rule Applies to All Members, Whether 
Acting as a Market Maker or Not

April 14, 2006.
    On March 6, 2006, the National Association of Securities Dealers, 
Inc. (``NASD'') 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 relating to proposed amendments to NASD 
Interpretive Material 2110-2, Trading Ahead of Customer Limit Order 
(commonly referred to as the Manning Rule) to state that the rule 
applies to all members, whether acting as a market maker or not. NASD 
asked the Commission to grant accelerated approval to the proposed rule 
change. The Commission stated it would consider granting accelerated 
approval at the close of a 15-day comment period, and published the 
proposed rule change for notice and comment in the Federal Register on 
March 28, 2006.\3\ The Commission received no comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 53527 (March 21, 
2006), 71 FR 15503.
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    The Commission has reviewed carefully the proposed rule change and 
finds that the proposed rule change is consistent with the requirements 
of the Act and the rules and regulations thereunder applicable to a 
national securities association \4\ and, in particular, the 
requirements of section

[[Page 20430]]

15A(b)(6) of the Act,\5\ which requires, among other things, NASD's 
rules be designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, and, in 
general, to protect investors and the public interest. The Commission 
believes that the proposed rule change will improve treatment of 
customer limit orders and clarify the application of the Manning Rule 
to non-market makers. The Commission believes the anticipated improved 
treatment of customer limit orders and the clarification of the 
application of the Manning Rule to non-market makers will benefit 
investors and the public interest, and therefore, the Commission finds 
good cause to approve the proposed rule change prior to the 30th day 
after publication in the Federal Register.
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    \4\ 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).
    \5\ 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 
\6\, that the proposed rule change (SR-NASD-2006-035) be, and it hereby 
is, approved on an accelerated basis.
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    \6\ 15 U.S.C. 78s(b)(2).
    \7\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-5915 Filed 4-19-06; 8:45 am]
BILLING CODE 8010-01-P