[Federal Register Volume 65, Number 187 (Tuesday, September 26, 2000)]
[Notices]
[Pages 57852-57853]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24640]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43302; File No. SR-NASD-00-56]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the National Association of 
Securities Dealers, Inc. to Extend the Operation of Certain Nasdaq 
Services and Facilities Until 6:30 P.M. Eastern Time

September 19, 2000.
    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 14, 2000, the National Association of Securities Dealers, 
Inc. (``NASD'' or ``Association''), through its wholly owned 
subsidiary, The Nasdaq Stock Market, Inc. (``Nasdaq'') filed with the 
Securities and Exchange Commission (``Commission'' or ``SEC'') the 
proposed rule change as described in Items I, II and III below, which 
Items have been prepared by Nasdaq. Nasdaq 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.\5\ 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\15 U.S.C. 78s(b)(3)(A).
    \4\17 CFR 240.19b-4(f)(6).
    \5\The Commission agreed to waive the 5-day pre-filing notice 
requirement. The Commission also finds good cause to waive the 30-
day pre-operative waiting period. See Rule 19b-4(f)(6)(iii). 17 CFR 
240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    Nasdaq proposes to extend, through March 1, 2001, its pilot program 
extending the availability of several Nasdaq services and facilities 
until 6:30 p.m. Eastern Time. Nasdaq has designated this proposal as 
non-controversial, and requests that the Commission waive both the 5-
day pre-filing notice and the 30-day pre-operative waiting period 
contained in Rule 19b-4(f)(6)(iii) under the Act,\6\ to allow the 
proposal to be both effective and operative immediately upon filing 
with the Commission.
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    \6\17 CFR 240.19b-4(f)(6)(iii).
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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 its proposal and discussed any 
comments it received regarding the proposal. 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 extend, through March 1, 2001, its current pilot 
program that makes available certain Nasdaq systems and facilities 
until 6:30 p.m. Eastern Time. The Commission originally approved the 
pilot on October 13, 1999.\7\ The pilot will continue to operate under 
its current terms and conditions, including mandating 90-second trade 
reporting until 6:30 p.m. Eastern Time.
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    \7\See Securities Exchange Act Release No. 42003 (October 13, 
1999), 64 FR 56554 (October 20, 1999) (SR-NASD-99-57).
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2. Statutory Basis
    Nasdaq believes that the proposal is consistent with the provisions 
of Section 15A(b)(6) of the Act\8\ in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in regulating, clearing, settling, processing

[[Page 57853]]

information with respect to, and facilitating transactions in 
securities.
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    \8\15 U.S.C. 78o-3(b)(6).
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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

    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\9\ and Rule 
19b-4(f)(6) thereunder.\10\ 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.
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    \9\15 U.S.C. 78s(b)(3)(A).
    \10\17 CFR 240.19b-4(f)(6).
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    Nasdaq has requested that the Commission waive the 30-day pre-
operative waiting period. The Commission finds good cause to designate 
the proposal to become immediately operative upon filing, because such 
designation is consistent with the protection of investors and the 
public interest. Acceleration of the operative date will allow the 
pilot to continue without interruption through March 1, 2001. The 
Commission believes the pilot provides beneficial information and 
services to investors, and that acceleration of the operative date will 
ensure that those benefits do not lapse. For these reasons, the 
Commission finds good cause to waive the 30-day operative waiting 
period, and to designate that the proposal become operative 
immediately.\11\
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    \11\For 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).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposal is 
consistent with the Act. Persons making written submissions should file 
six copies thereof with the Secretary, Securities and Exchange 
Commission, 450 Fifth Street, N.W., Washington, D.C. 20549-0609. 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 will also be 
available for inspection and copying at the principal office of the 
NASD. All submissions should refer to file number SR-NASD-00-56 and 
should be submitted by October 17, 2000.
    For the Commission, by the Division of Market Regulation, pursuant 
to delegated authority.\12\
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    \12\17 CFR 200.30-3(a)(12)

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-24640 Filed 9-25-00; 8:45 am]
BILLING CODE 8010-01-M