[Federal Register Volume 71, Number 119 (Wednesday, June 21, 2006)]
[Notices]
[Pages 35721-35723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-9723]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53994; File No. SR-NASD-2006-071]
Self-Regulatory Organizations: National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Technical Amendments to Rule 3210
June 15, 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 June 2, 2006, the National Association of Securities Dealers, Inc.
(``NASD'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by NASD. NASD has
designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of
[[Page 35722]]
Rule 19b-4 under the Act,\3\ which renders the proposal effective upon
receipt of this filing by the Commission. 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\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NASD is proposing to amend NASD Rule 3210 to change references to
paragraph ``(b)(1)'' in Rule 3210 to paragraph ``(b)'' in Rule 3210.
Below is the text of the proposed rule change. Proposed deletions are
in brackets.
* * * * *
3210. Short Sale Delivery Requirements
(a) No Change.
(b) The provisions of this rule shall not apply to the amount of
the fail to deliver position that the participant of a registered
clearing agency had at a registered clearing agency on the settlement
day immediately preceding the day that the security became a non-
reporting threshold security; provided, however, that if the fail to
deliver position at the clearing agency is subsequently reduced below
the fail to deliver position on the settlement day immediately
preceding the day that the security became a non-reporting threshold
security, then the fail to deliver position excepted by this paragraph
(b)[(1)] shall be the lesser amount.
(c) through (g) No Change.
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASD 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. NASD 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
On April 4, 2006, the SEC approved new Rule 3210, Short Sale
Delivery Requirements, which applies a short sale delivery framework to
those equity securities not otherwise covered by the delivery
requirements of Regulation SHO, namely non-reporting OTC equity
securities.\4\ There is an incorrect paragraph reference in Rule
3210(b). Accordingly, NASD is filing this proposed rule change to amend
Rule 3210(b) to change references to paragraph ``(b)(1)'' and replace
it with paragraph ``(b).''
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\4\ See Securities Exchange Act Release No. 53596 (April 4,
2006), 71 FR 18392 (April 11, 2006) (File No. SR-NASD-2004-044).
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NASD proposes to make the proposed rule change effective on July 3,
2006 to coincide with the effective date of Rule 3210.
2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of section 15A(b)(6) of the Act,\5\ which requires, among
other things, that NASD rules must 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. NASD believes that amending the references to the
incorrect subparagraph in Rule 3210 will eliminate confusion when
reading the provisions of Rule 3210.
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\5\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition
NASD 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 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, or such shorter time as the Commission may designate, it has
become effective pursuant to section 19(b)(3)(A) of the Act and Rule
19b-4(f)(6) thereunder.\6\
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\6\ 17 CFR 240.19b-4(f)(6).
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At any time within 60 days of the filing of the 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.
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-2006-071 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-2006-071. 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 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-2006-071
and should be submitted on or before July 12, 2006.
[[Page 35723]]
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
Nancy M. Morris,
Secretary.
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\7\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E6-9723 Filed 6-20-06; 8:45 am]
BILLING CODE 8010-01-P