55816 Federal Register / Vol. 71, No. 185 / Monday, September 25, 2006 / Notices 

9 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(6). 5 17 CFR 240.19b–4(f)(6)(iii). 

6See NASD Rule 4903(b). 

7 15 U.S.C. 78o–3. 

8 15 U.S.C. 78o–3(b)(6). 

9 15 U.S.C. 78s(b)(3)(A)(iii). 

10 17 CFR 240.19b–4(f)(6). 

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–2006–100 and 

should be submitted on or before 

October 16, 2006. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Nancy M. Morris, 

Secretary. 

[FR Doc. 06–8141 Filed 9–22–06; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54462; File No. SR–NASD–

2006–107] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to Thru Orders 

for Nasdaq’s INET Facility 

September 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 

September 11, 2006, 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 and II below, which Items have 

been prepared by Nasdaq. Nasdaq has 

filed the proposal pursuant to Section 

19(b)(3)(A) of the Act 3 and Rule 19b–

4(f)(6) thereunder,4 which renders the 

proposal effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to introduce a new 

Thru order type for Nasdaq’s INET 

Facility that will allow users to direct 

that their order be delivered by the INET 

system to the American Stock Exchange 

(‘‘Amex’’) or New York Stock Exchange 

(‘‘NYSE’’), as appropriate. Nasdaq has 

designated this proposal as noncontroversial and has requested that the 

Commission waive the 30-day preoperative waiting period contained in 

Rule 19b–4(f)(6)(iii) under the Act.5

The text of the proposed rule change 

is below. Proposed new language is 

italicized; proposed deletions are in 

[brackets]. 

* * * * * 

4956. Routing 

(a) INET Order Routing Process 

(1) The INET Order Routing Process 

shall be available to Participants from 7 

a.m. to 8 p.m. Eastern Time, and shall 

route orders as described below: 

(A) Routing Options. 

The System provides [eight] nine 

routing options for orders. Of these 

eight, [five] six—DOT Immediate , DOT 

Alternative, DOT Alternative 2, Reactive 

Only DOT, [and] DOT Nasdaq—and 

Thru DOT—are available for orders 

ultimately sought to be directed to 

either the New York Stock Exchange 

(‘‘NYSE’’) or the American Stock 

Exchange (‘‘AMEX’’). The System also 

allows firms to send individual orders 

to the NYSE Direct + System, and to 

elect to have orders not be sent to the 

AMEX. The [eight] nine System routing 

options are: 

(i)–(viii) No Change. 

(ix) Thru DOT (‘‘TDOT’’)—under this 

option, orders are sent directly to either 

the NYSE or AMEX, as directed by the 

entering party. If unexecuted, the order 

(or unexecuted portion thereof) shall be 

returned to the entering party. This 

option may only be used for orders with 

time-in-force parameters of either DAY, 

IOC, or market-on-open/close. 

(B) 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, 

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 create a new order 

routing option for its INET facility that 

would allow users to direct that their 

orders be delivered by the INET system 

to the NYSE or the Amex, as 

appropriate. Nasdaq notes that this 

direct delivery functionality already 

exists in Nasdaq’s Brut facility as the 

Thru Brut order 6 and would provide 

additional flexibility and functionality 

to INET system users that desire to send 

orders to the NYSE or the Amex. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 15A of the Act,7 in 

general, and with Section 15A(b)(6) of 

the Act,8 in particular, in that it is 

designed to promote just and equitable 

principles of trade, and to remove 

impediments to a free and open market 

and a national market system. 

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 were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change is 

subject to Section 19(b)(3)(A)(iii) of the 

Act 9 and Rule 19b–4(f)(6) thereunder 10

because the proposal: (i) Does not 

significantly affect the protection of 

investors or the public interest; (ii) does 

not impose any significant burden on 


rwilkins on PROD1PC63 with NOTICES
Federal Register / Vol. 71, No. 185 / Monday, September 25, 2006 / Notices 55817 

11For purposes only of accelerating the operative 

date of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

12 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(6). 

5 17 CFR 240.19b–4(f)(6)(iii). 

competition; and (iii) does not become 

operative prior to 30 days after the date 

of filing or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest; provided that Nasdaq 

has given the Commission notice of its 

intent to file the proposed rule change, 

along with a brief description and text 

of the proposed rule change, at least five 

business days prior to the date of filing 

of the proposed rule change, or such 

shorter time as designated by the 

Commission. 

Nasdaq has fulfilled the five-day prefiling requirement. Nasdaq has 

requested that the Commission waive 

the 30-day operative delay. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because such waiver 

would provide users of Nasdaq’s INET 

facility the ability to utilize the 

proposed Thru DOT order type 

immediately, an order type with the 

same functionality as an order type that 

is currently available for use in Nasdaq’s 

Brut facility. For these reasons, the 

Commission designates the proposed 

rule change to be effective and operative 

upon filing with the Commission.11

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. 

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 rulecomments@sec.gov. Please include File 

Number SR–NASD–2006–107 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–2006–107. 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 the 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–2006–107 and 

should be submitted on or before 

October 16, 2006. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Nancy M. Morris, 

Secretary. 

[FR Doc. 06–8142 Filed 9–22–06; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54461; File No. SR–NASD–

2006–106] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to Market/Limiton-Open Orders Sent to the American 

Stock Exchange or New York Stock 

Exchange 

September 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 

September 11, 2006, 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 and II below, which Items have 

been prepared by Nasdaq. Nasdaq has 

filed the proposal pursuant to Section 

19(b)(3)(A) of the Act 3 and Rule 19b–

4(f)(6) thereunder,4 which renders the 

proposal effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to establish a new 

order processing option for its INET and 

Brut facilities that allow those system 

users to direct that their market/limiton-open orders being sent to the 

American Stock Exchange (‘‘Amex’’) or 

New York Stock Exchange (‘‘NYSE’’) for 

participation in those markets’’ opening 

processes have any shares remaining 

unexecuted after the open be returned to 

the Nasdaq facility of their origin for 

display and potential execution, as 

appropriate. Nasdaq has designated this 

proposal as non-controversial and has 

requested that the Commission waive 

the 30-day pre-operative waiting period 

contained in Rule 19b–4(f)(6)(iii) under 

the Act.5

The text of the proposed rule change 

is below. Proposed new language is 

italicized. 

* * * * * 

4903. Order Entry Parameters 

(a)–(b) No Change. 

(c) Thru Brut Orders—

(1) General. A Thru Brut Order is an 

order submitted to the System that is 

designated for routing to another market 

center. The following requirements shall 

apply to Thru Brut Orders: 

(A)–(B) No Change. 

(C) Market/Limit on Open Orders—if 

requested by the entering party, 

unexecuted share amounts of market on 

open orders directed to the New York or 

American stock exchanges will be 

returned to the System for display and 

potential execution. 

(d)–(f) No Change. 

* * * * * 


rwilkins on PROD1PC63 with NOTICES