11416 Federal Register / Vol. 72, No. 48 / Tuesday, March 13, 2007 / Notices 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 55180 

(January 26, 2007), 72 FR 5095. 

4Amendment No. 1 made technical changes to 

the proposal and is not subject to notice and 

comment. 

5 In approving this proposed rule change, the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

6 15 U.S.C. 78o–3(b)(5). 

7 15 U.S.C. 78s(b)(2). 

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 11 and Rule 19b–4(f)(6) 

thereunder.12

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 rulecomments@sec.gov. Please include File 

Number SR–NASD–2007–015 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–2007–015. 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–2007–015 and 

should be submitted on or before April 

3, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4505 Filed 3–12–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55409; File No. SR–NASD–

2007–004] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Order Approving 

Proposed Rule Change as Modified by 

Amendment No. 1 To Amend NASD 

Rule 7010(k) Relating to Transaction 

Reporting and Compliance Engine 

Transaction Data 

March 6, 2007. 

On January 16, 2007, 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 to offer 

subscribers to its Transaction Reporting 

and Compliance Engine system 

(‘‘TRACE’’) the ability to receive, for a 

reduced fee, a ‘‘snapshot’’ of real-time 

TRACE transaction data once each day 

rather than continuously throughout the 

day. The proposed rule change was 

published for comment in the Federal 

Register on February 2, 2007.3 The 

Commission received no comments 

regarding the proposal. On March 2, 

2007, the Exchange submitted 

Amendment No. 1 to the proposed rule 

change.4

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 proposal 

would offer a new TRACE subscription 

option whereby subscribers could pay 

$250/month to receive TRACE 

transaction data daily, once a day 

(‘‘Snapshot TRACE data’’) rather than 

paying $1,500/month for continuous 

access to TRACE transaction data. 

NASD has identified certain market 

participants, namely institutional 

investors, who only need a single price, 

daily, for each security for purposes of 

position valuation. NASD believes that, 

given the limited need for TRACE 

transaction data for these market 

participants, the $1,500/month charge 

for continuous access to TRACE 

transaction data may be unnecessarily 

expensive for them. NASD further 

believes that the proposed charge of 

$250/month for Snapshot TRACE data is 

reasonable and more appropriate for the 

tailored transaction informational needs 

of certain institutional market 

participants, who are currently 

foregoing TRACE transaction data at the 

higher monthly charge for continuous 

data. 

The Commission finds that the 

proposed rule change is consistent with 

the Act, and particularly with Section 

15A(b)(5) thereof,6 which requires that 

NASD’s rules provide for the equitable 

allocation of dues, fees, and other 

charges among members and issuers and 

other persons using any facility or 

system which NASD operates or 

controls. The Commission believes that 

the proposed rule change, by offering 

the option of tailored access to TRACE 

transaction data at a reduced cost, is 

reasonable. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,7 that the 

proposed rule change (SR–NASD–2007–


cprice-sewell on PROD1PC66 with NOTICES
Federal Register / Vol. 72, No. 48 / Tuesday, March 13, 2007 / Notices 11417 

8 17 CFR 200.30–3(a)(12); 17 CFR 200.30–3(a)(44). 

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). 

5See Securities Exchange Act Release No. 55101 

(January 12, 2007), 72 FR 2568 (January 19, 2007) 

(SR–NASD–2007–002). 

6See Securities Exchange Act Release No. 55160 

(January 24, 2007), 72 FR 4202 (January 30, 2007). 

7 ‘‘System’’ is defined in Rule 6110 to mean the 

NASD/Nasdaq TRF, the OTC Reporting Facility, 

and the ITS/CAES System. 

8See Securities Exchange Act Release No. 54537 

(September 28, 2006), 71 FR 59173 (October 6, 

2006) (SR–NASD–2006–091). See also NASD Notice 

to Members 06–67 (November 2006) announcing the 

effective date of SR–NASD–2006–091. 

9The rules relating to the NASD/NSX Trade 

Reporting Facility, the NASD/BSE Trade Reporting 

Facility, and the NASD/NYSE Trade Reporting 

Facility prohibit the aggregation of trades for 

purposes of reporting. 

10 15 U.S.C. 78o–3(b)(6). 

004), as amended, be, and hereby is, 

approved and declared effective. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4507 Filed 3–12–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55410; File No. SR–NASD–

2007–020] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Revise the 

Implementation Date of Previously 

Proposed Amendments to NASD Rules 

4632(f) and 6130(e) 

March 6, 2007. 

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 March 5, 

2007, the National Association of 

Securities Dealers, Inc. (‘‘NASD’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been substantially prepared by NASD. 

NASD has filed the proposal as a ‘‘noncontroversial’’ rule change pursuant to 

Section 19(b)(3)(A) of the Act3 and Rule 

19b-4(f)(6) thereunder,4 which renders it 

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 

NASD proposes to revise the 

implementation date of certain 

amendments to the NASD/Nasdaq Trade 

Reporting Facility (‘‘NASD/Nasdaq 

TRF’’) rules that were previously 

proposed by NASD pursuant to SR–

NASD–2007–002.5 Specifically, NASD 

proposes to implement the amendments 

to Rule 4632(f) and Rule 6130(e) 

regarding aggregation of trades for 

purposes of reporting to the NASD/ 

Nasdaq TRF on the Regulation NMS 

Trading Phase Date, March 5, 2007.6

There is no new rule text. 

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 January 8, 2007, NASD filed 

proposed rule change SR–NASD–2007–

002, which proposed to make 

conforming changes to the transaction 

reporting rules relating to the NASD/ 

Nasdaq TRF consistent with the new 

requirements of Regulation NMS under 

the Act. Among other changes, NASD 

proposed to amend Rule 4632(f) to 

expressly prohibit a member from 

aggregating individual executions of 

orders in a security at the same price 

into a single transaction report for tape 

purposes. As stated in SR–NASD–2007–

002, NASD has determined that 

prohibiting the bunching of transactions 

when reporting to an NASD facility 

helps ensure greater transparency of 

individual transactions. However, for 

purposes of trades that are not printed 

to the tape, NASD proposed to amend 

Rule 6130(e) to continue to permit 

members—for clearing purposes only—

to aggregate individual executions of 

orders in a security at the same price 

with the identical contra party and 

submit a single report to the System.7

These amendments are consistent 

with recent amendments to the 

reporting rules relating to NASD’s 

Alternative Display Facility (‘‘ADF’’). 

Pursuant to SR–NASD–2006–091, 

NASD proposed to amend Rule 4632A(f) 

to expressly prohibit aggregation of 

individual executions of orders in a 

security at the same price into a single 

transaction report. The effective date of 

SR–NASD–2006–091 is the Regulation 

NMS Trading Phase Date.8

To ensure consistency across NASD 

facilities, NASD proposes to implement 

the amendments to Rules 4632(f) and 

6130(e) on the Regulation NMS Trading 

Phase Date, which, as noted above, is 

the implementation date for similar 

amendments to the ADF rules.9 All 

other changes that were proposed in 

SR–NASD–2007–002 will become 

effective on the Pilot Stocks Phase Date, 

as set forth in that filing. 

NASD is clarifying that proposed Rule 

4632(f) is intended to prohibit only the 

aggregation of multiple executions into 

a single transaction report using the 

‘‘.B’’ modifier for purposes of 

transaction reporting to the NASD/ 

Nasdaq TRF. It will not apply to the 

matching or crossing of multiple orders 

in a single execution (e.g., via an 

alternative trading system or brokerdealer order-management system). 

Today, such single executions are not 

submitted to the NASD/Nasdaq TRF as 

bunched or aggregated transaction 

reports using the ‘‘.B’’ modifier and, 

thus, are not affected by the proposed 

rule change. 

NASD has filed the proposed rule 

change for immediate effectiveness. 

NASD proposes to implement the 

amendments to Rules 4632(f) and 

6130(e) on the Regulation NMS Trading 

Phase Date, March 5, 2007. 

2. Statutory Basis 

NASD believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,10 which 

requires, among other things, that NASD 

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. NASD 

believes that the proposed rule change 

will enhance the consistency of the 

trade reporting rules applicable to 

NASD facilities and will ensure greater 

transparency of individual transactions. 

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 


cprice-sewell on PROD1PC66 with NOTICES