Federal Register / Vol. 72, No. 62 / Monday, April 2, 2007 / Notices 15737 

6The Commission has considered the amended 

proposed rule change’s impact on efficiency, 

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

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(2). 

10 17 CFR 200.30–3(a)(12). 

1 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)(5). 

5This includes securities listed on Nasdaq’s 

predecessor market, operated as a facility of the 

NASD. 

6See Head Trader Alert 2005–133 (November 14, 

2005), available at: http://www.nasdaqtrader.com/ 

Trader/News/2005/headtraderalerts/hta2005-133.

stm and Vendor Alert 2005–070 (November 14, 

2005), available at: http://www.nasdaqtrader.com/ 

Trader/News/2005/vendoralerts/nva2005-070.stm. 

See also Head Trader Alert 2006–144 (September 

29, 2006), available at: http://www.nasdaqtrader.

com/Trader/News/2006/headtraderalerts/hta2006- 

144.stm, Head Trader Alert 2006–193 (November 

16, 2006), available at: http://www.nasdaqtrader.

com/Trader/News/2006/headtraderalerts/hta2006- 

193.stm and Vendor Alert 2006–065 (October 4, 

2006), available at: http://www.nasdaqtrader.com/ 

Trader/News/2006/vendoralerts/nva2006-065.stm. 

7See Head Trader Alert 2006–201 (December 6, 

2006), available at: http://www.nasdaqtrader.com/ 

Trader/News/2006/headtraderalerts/hta2006-201.

stm, Head Trader Alert 2007–008 (January 25, 

2007), available at: http://www.nasdaqtrader.com/ 

Trader/News/2007/headtraderalerts/hta2007-008.

stm, Head Trader Alert 2007–011 (January 30, 

2007), available at: http://www.nasdaqtrader.com/ 

Trader/News/2007/headtraderalerts/hta2007-011.

stm, Head Trader Alert 2007–020 (February 7, 

2007), available at: http://www.nasdaqtrader.com/ 

Trader/News/2007/headtraderalerts/hta2007-020.

stm, and Head Trader Alert 2007–034 (February 16, 

2007), available at: http://www.nasdaqtrader.com/ 

Trader/News/2007/headtraderalerts/hta2007-034.

stm. 

8Head Trader Alert 2007–050 (March 1, 2007), 

available at: http://www.nasdaqtrader.com/Trader/ 

News/2007/headtraderalerts/hta2007-050.stm. 

a national securities exchange 6 and, in 

particular, the requirements of Section 6 

of the Act.7 Specifically, the 

Commission finds that the proposal is 

consistent with Section 6(b)(5) of the 

Act,8 in that the proposal has been 

designed to promote just and equitable 

principles of trade, and to protect 

investors and the public interest. 

In addition, the Commission believes 

that a Market Maker must have an 

affirmative obligation to hold itself out 

as willing to buy and sell options for its 

own account on a regular or continuous 

basis to justify receiving market maker 

margin. The Commission believes that 

CBOE’s rules impose such affirmative 

obligations on DPMs that choose to 

operate remotely and notes that, under 

the proposal, a DPM acting from a 

remote location would still be required 

to meet the obligations of a DPM set 

forth in CBOE Rule 8.85. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,9 that the 

proposed rule change (SR–CBOE–2006–

94), as modified by Amendment No. 1, 

is approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5980 Filed 3–30–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55491A; File No. SR–

CBOE–2006–95] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Order Granting Accelerated Approval 

of Proposed Rule Change as Modified 

by Amendment Nos. 1 and 2 Thereto to 

List for Trading Options on the 

Vanguard Emerging Markets 

Exchange Traded Fund 

March 26, 2007. 

Correction 

FR Doc. E7–5423, issued on March 26, 

2007 on page 14145, regarding 

Securities Exchange Act Release No. 34–

55491, incorrectly cited the date of the 

release as March 19, 2006. The date 

should read March 19, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.1

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5986 Filed 3–30–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Release No. 34–55519; File No. SR–

NASDAQ–2007–025) 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Trading One-, Two-, and ThreeCharacter Symbols 

March 26, 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 21, 

2007, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 

in Items I, II and III below, which Items 

have been substantially prepared by 

Nasdaq. Nasdaq has filed this proposal 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(5) 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 the Substance 

of the Proposed Rule Change 

Nasdaq proposes to trade the 

securities of Delta Financial Corporation 

using the three-character symbol ‘‘DFC.’’

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 

Historically, securities listed on 

Nasdaq have traded using four or five 

character symbols.5 In 2005, however, 

Nasdaq announced its intent to allow 

companies listed on Nasdaq to also use 

one-, two-, or three-character symbols.6

Nasdaq announced a series of dates 

throughout December 2006 and January 

and February 2007 where market 

participants could test trading Nasdaq 

stocks using one-, two-, or threecharacter symbols on weekends, in after 

hour sessions, and during full day 

sessions.7 Beginning February 20, 2007, 

Nasdaq had the ability to accept and 

distribute Nasdaq-listed securities with 

one-, two-, or three-character symbols. 

Nasdaq reminded market participants 

about this change again on March 1, 

2007, stressing that ‘‘[a]ll customers 

should have completed their coding and 

testing efforts to ensure their readiness 

to support 1-, 2- and 3-character 

NASDAQ-listed issues.’’ 8

Nasdaq believes that the changes to its 

systems to accommodate one-, two-, and 

three-character symbols will promote 

competition among exchanges and 

enhance the strength of the U.S. capital 


hsrobinson on PROD1PC76 with NOTICES
15738 Federal Register / Vol. 72, No. 62 / Monday, April 2, 2007 / Notices 

9 In that regard, Nasdaq notes that symbols are 

freely transferred when securities switch between 

the American Stock Exchange (‘‘Amex’’), the New 

York Stock Exchange (‘‘NYSE’’), and NYSE Arca. 

See, e.g., Yamana Gold Inc. (on January 12, 2007 

switched from Amex to NYSE keeping the symbol 

AUY), VAALCO Energy (on October 12, 2006 

switched from Amex to NYSE keeping the symbol 

EGY), and the transfer of 15 iShares ETFs from 

Amex to NYSE Arca announced on September 27, 

2006. Now that Nasdaq is also a national securities 

exchange, allowing companies to maintain their 

symbol when transferring to Nasdaq would be 

consistent with the practice of other exchanges. 

10Nasdaq notes that Amex has raised no 

objections to Delta Financial’s continued use of the 

symbol DFC. 

11See company press release ‘‘Delta Financial to 

Keep Its ‘DFC’ Ticker on NASDAQ’’ dated March 

12, 2007, available at: http://www.snl.com/ 

irweblinkx/file.aspx?IID=107286&FID=3528005. 

12See Head Trader Alert 2007–057 (March 12, 

2007), available at: http://www.nasdaqtrader.com/ 

Trader/News/2007/headtraderalerts/hta2007-057.

stm. See also Vendor Alert 2007–020 (March 12, 

2007), available at: http://www.nasdaqtrader.com/ 

Trader/News/2007/vendoralerts/nva2007-020.stm. 

13 15 U.S.C. 78f. 

14 15 U.S.C. 78f(b)(5). 

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

16 17 CFR 240.19b–4(f)(5). 

markets. Specifically, Nasdaq believes 

that issuers should have the freedom of 

choice and competition. As issuers face 

the important choice of where to list 

their equities, the symbol an issuer 

currently uses should not factor 

prominently in the listing decision 

process. Similarly, the symbol that a 

market assigns to an issuer should not 

serve as an anchor if the issuer wishes 

to transfer to a competing market.9 As 

such, permitting the portability of this 

symbol will enhance competition 

among exchanges. Furthermore, as a 

result of the technological changes 

noted above, all Nasdaq systems, 

including the Securities Information 

Processor (SIP), are able to support all 

NYSE- and Amex-listed securities using 

their original symbols over its core 

transaction and data platforms. Nasdaq 

states that this provides an added level 

of redundancy and resiliency for the 

U.S. capital markets, and is key to its 

ability to provide full back-up for other 

equity markets in the event of a national 

or local emergency thereby enhancing 

the strength of the U.S. capital markets. 

Nasdaq now proposes to allow one 

company, Delta Financial Corporation, 

to keep its current symbol, DFC, when 

it transfers from Amex to Nasdaq on 

March 22, 2007.10 Investors were 

notified of this change on March 12, 

2007 when the company announced its 

transfer and continued use of the 

symbol ‘‘DFC’’ 11 and Nasdaq notified 

market participants on the same day.12

Moreover, Nasdaq believes that forcing 

the company to change its trading 

symbol will cause confusion among its 

investors. 

Given the foregoing, Nasdaq believes 

that market participants were provided 

adequate notice of this change and are 

prepared to accommodate the trading of 

this company using the symbol DFC. 

Further, Nasdaq believes that any 

change to the symbol will cause 

confusion among investors and market 

participants. As such, Nasdaq proposes 

to begin trading the common stock of 

Delta Financial Corporation on Nasdaq 

using the symbol DFC on March 22, 

2007. While this filing relates to the 

transfer of this issuer, Nasdaq states that 

it remains committed to working with 

the Commission and other markets to 

establish an equitable and transparent 

symbol assignment plan. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,13 in 

general and with Section 6(b)(5) of the 

Act,14 in particular, in that it is designed 

to prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to remove 

impediments to a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. 

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, as amended. 

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 rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 15 and Rule 19b–4(f)(5) 

thereunder 16 in that it effects a change 

to an order-entry or trading system that: 

(i) Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) does not have the effect of limiting 

the access to or availability of the 

system. As such, this proposed rule 

change is effective upon filing with the 

Commission. 

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–NASDAQ–2007–025 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–NASDAQ–2007–025. 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 the Exchange. 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–NASDAQ–2007–025 and 

should be submitted on or before April 

23, 2007. 


hsrobinson on PROD1PC76 with NOTICES
Federal Register / Vol. 72, No. 62 / Monday, April 2, 2007 / Notices 15739 

17 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). NASD gave the 

Commission written notice of its intent to file the 

proposed rule change on March 6, 2007. 

5See Securities Exchange Act Release No. 55325 

(February 21, 2007), 72 FR 8820 (February 27, 2007) 

(SR–NASD–2007–011). 

6NASD also notes that the proposed transaction 

credit program is substantially equivalent to the 

existing transaction credit program for the NASD/ 

Nasdaq Trade Reporting Facility (‘‘NASD/Nasdaq 

TRF’’) under Rule 7001B and the NASD/BSE TRF 

under Rule 7001D. However, under the transaction 

credit programs for the NASD/Nasdaq TRF and 

NASD/BSE TRF, members do not receive 50% of 

gross revenue; instead, members receive 50% of 

revenue after deducting the amount, if any, that the 

respective TRF pays to the Consolidated Tape 

Association or the Nasdaq Securities Information 

Processor for capacity usage. 

7 15 U.S.C. 78o–3. 

8 15 U.S.C. 78o–3(b)(5). 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5966 Filed 3–30–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55526; File No. SR–NASD–

2007–025] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Adopt New NASD Rule 

7000E Series Relating to Fees and 

Credits for the NASD/NYSE Trade 

Reporting Facility 

March 26, 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 21, 

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 prepared substantially by NASD. 

NASD filed the proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 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 adopt a new NASD 

Rule 7000E Series relating to fees and 

credits for the NASD/NYSE Trade 

Reporting Facility (‘‘NASD/NYSE 

TRF’’). The text of the proposed rule 

change is available at http:// 

www.nasd.com, NASD, and the 

Commission’s Public Reference Room. 

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 February 1, 2007, NASD filed for 

immediate effectiveness a proposed rule 

change relating to the establishment of 

the NASD/NYSE TRF.5 The NASD/ 

NYSE TRF will provide NASD members 

with another mechanism for reporting to 

NASD locked-in transactions in 

exchange-listed securities effected 

otherwise than on an exchange. The 

NASD/NYSE TRF will commence 

operation upon successful completion 

of system testing and certification, 

which is currently anticipated to be in 

April 2007. The instant proposed rule 

change would adopt a new NASD Rule 

7000E Series relating to fees and credits 

applicable to the NASD/NYSE TRF. 

NASD is proposing that under new 

Rule 7002E there will be no transaction 

fee for reporting locked-in trades to the 

NASD/NYSE TRF in securities listed on 

the New York Stock Exchange (‘‘Tape 

A’’), the American Stock Exchange 

(‘‘Tape B’’), and the Nasdaq Exchange 

(‘‘Tape C’’). Although NASD is not 

required to file a proposed rule change 

where no fees are to be assessed, for 

members’ convenience and to avoid 

potential confusion with the fee 

structures of other NASD facilities, 

NASD is proposing Rule 7002E to 

clarify that there will be no charge for 

use of the NASD/NYSE TRF to report 

locked-in transactions in exchangelisted securities effected otherwise than 

on an exchange. The text of proposed 

Rule 7002E is identical to the text of 

current Rule 7002C relating to the 

NASD/NSX Trade Reporting Facility 

(‘‘NASD/NSX TRF’’) and Rule 7002D 

relating to the NASD/BSE Trade 

Reporting Facility (‘‘NASD/BSE TRF’’). 

In addition, NASD is proposing a 

transaction credit program under new 

Rule 7001E that is identical to the 

existing transaction credit program for 

the NASD/NSX TRF under Rule 7001C. 

NASD members reporting trades in Tape 

A, Tape B and Tape C stocks to the 

NASD/NYSE TRF will receive a 50% 

pro rata credit on gross market data 

revenue earned by the NASD/NYSE TRF 

with respect to those trade reports. 

Credits will be paid on a quarterly basis. 

To the extent that market data revenue 

is subject to any adjustment, credits may 

be adjusted accordingly.6

Tape A and Tape B revenue is 

currently distributed to NASD and the 

exchanges based on number of trades 

reported, while Tape C revenue is 

distributed based on an average of the 

number of trades and number of shares 

reported. Thus, under the proposed 

program, the Tape A and Tape B 

revenue attributable to a member will be 

based on number of trades reported, 

while the Tape C revenue attributable to 

a member would be based on number of 

trades and number of shares reported. A 

member will receive 50% of the gross 

revenue attributable to it in each of the 

three tapes. ‘‘Gross revenue’’ is the 

revenue received by the NASD/NYSE 

TRF from the three tape associations 

after the tape associations deduct 

allocated support costs and 

unincorporated business costs. 

NASD filed the proposed rule change 

for immediate effectiveness. NASD 

proposes to implement the proposed 

rule change on the first day of operation 

of the NASD/NYSE TRF, which is 

currently anticipated to be in April 

2007. 

2. Statutory Basis 

NASD 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)(5) of the Act,8

in particular, which requires, among 

other things, that NASD rules provide 

for the equitable allocation of reasonable 

dues, fees and other charges among 

members and issuers and other persons 

using any facility or system that NASD 

operates or controls. NASD believes that 

the proposed rule change is a reasonable 

and equitable fee and credit structure in 

that there will be no fees charged for 

trade reporting to the NASD/NYSE TRF 

and the proposed transaction credit 

program is identical to existing credits 

for the NASD/NSX TRF. 


hsrobinson on PROD1PC76 with NOTICES