Federal Register / Vol. 66, No. 10 / Tuesday, January 16, 2001 / Notices 3629

8 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See letter to Katherine A. England, Assistant

Director, Division of Market Regulation,

Commission, from Laura Leedy Gansler, Counsel,

NASD Dispute Resolution, dated January 3, 2001

(‘‘Amendment No. 1’’).

4On January 12, 2000, NASD Regulation, Inc.

filed a proposed rule filing, SR–NASD–00–02 to

amend rule 10335 and to make it a permanent part

of the Code. See Securities Exchange Act Release

No. 42606 (April 3, 2000), 65 FR 18405 (April 7,

2000) (File No. NASD–00–02). Simultaneously with

this rule filing, the NASD Dispute Resolution has

filed a response to Comments and Amendment No.

3 to SR–NASD–00–02.

5 15 U.S.C. 780o–(b)(6).

6 In reviewing this proposal, the Commission has

considered its impact on efficiency, competition,

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

provisions of 5 U.S.C. 552, will be

available for inspection and copying at

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 No.

SR–NASD–00–80 and should be

submitted by February 6, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–1151 Filed 1–12–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43813; File No. SR–NASD–

00–75]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of a Proposed

Rule Change and Amendment No. 1 by

the National Association of Securities

Dealers, Inc. to Extend the

Effectiveness of the Pilot Injunctive

Relief Rule

January 5, 2001.

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 December

19, 2000, the National Association of

Securities Dealers, Inc. (‘‘NASD’’ or

‘‘Association’’), through its whollyowned subsidiary NASD Dispute

Resolution, Inc. (‘‘NASD Dispute

Resolution’’) filed with the Securities

and Exchange Commission (‘‘SEC’’ or

‘‘Commission’’) a proposed rule change

as described in Items I and II below,

which Items have been prepared by

NASD Dispute Resolution. On January

4, 2001, NASD Dispute Resolution

submitted Amendment No. 1 to the

proposed rule change.3 For the reasons

discussed below, the Commission is

publishing this notice to solicit

comments on the proposed rule change

and Amendment No. 1 and to approve

the proposal and Amendment No. 1 on

an accelerated basis.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

NASD Dispute Resolution is

proposing to amend Rule 10335 of the

Code of Arbitration (‘‘Code’’) of the

NASD, to extend the pilot injunctive

relief rule for one year, pending

Commission action on a pending rule

filing, SR–NASD–00–02, to amend Rule

19335 and make it a permanent part of

the code. Below is the text of the

proposed rule change. Proposed new

language is in italics; proposed

delections are in brackets.

10335. Injunctions

(i) Effective Date. This Rule shall

apply to arbitration claims filed on or

after January 3, 1996. Except as

otherwise provided in this Rule, the

remaining provisions of the Code shall

apply to proceedings instituted under

this Rule. This rule shall expire on

[January 5, 2000] January 4, 2002,

unless extended by the Association’s

Board of Governors.

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 Dispute Resolution 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 III below.

NASD Dispute Resolution 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

Rule 10335, the NASD’s pilot

injunctive relief rule, provides

procedures for obtaining interim

injunctive relief in controversies

involving member firms and associated

persons in arbitration. The rule has

primarily been used in ‘‘raiding cases,’’

or cases involving the transfer of an

employee from one firm to another firm.

Rule 10335 took effect on January 3,

1996, for a one-year pilot period. The

SEC has periodically extended the

initial pilot period in order to permit the

NASD to assess the effectiveness of the

rule. The pilot rule is currently due to

expire on January 5, 2001.4

NASD Dispute Resolution believes

that it is in the interest of members and

associated persons that the effectiveness

of the pilot rule remain uninterrupted

pending final Commission action on

SR–NASD–00–02. Therefore, NASD

Dispute Resolution believes that the

pilot rule should be extended to January

4, 2002, or such earlier time as

permitted by Commission action on the

permanent rule filing, which makes

clear that, if approved, the amended

rule would supersede the pilot rule in

its entirety.

2. Statutory Basis

NASD Dispute Resolution 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 the

Association’s 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.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

NASD Dispute Resolution 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

No written comments were solicited

or received with respect to the proposed

rule change.

III. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing,

including whether the proposed rule

change, as amended, is consistent with

the Act.6 Persons making written

submissions should file six copies

thereof with the Secretary, Securities

and Exchange Commission, 450 Fifth

3630 Federal Register / Vol. 66, No. 10 / Tuesday, January 16, 2001 / Notices

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

8 15 U.S.C. 78o-3.

9See supra note 4.

10 17 U.S.C. 78o-3.

11 15 U.S.C. 78s(b)(2).

12 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3Securities Exchange Act Release No. 43769

(December 22, 2000), 66 FR 826 (January 4, 2001).

4Securities Exchange Act Release No. 43768

(December 22, 2000), 66 FR 824 (January 4, 2001).

Street, NW., Washington, DC. 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 provision

of the 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 No.

SR–NASA–00–75 and should be

submitted by February 6, 2001.

IV. Commission Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

NASD Dispute Resolution has

requested that the Commission find

good cause pursuant to Section

19(b)(2) 7 for approving the proposed

rule change and Amendment No. 1 prior

to the 30th day after publication in the

Federal Register. The Commission finds

that the proposed rule change and

Amendment No. 1 are consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to the NASD and, in

particular, the requirements of Section

15A of the Act and the rules and

regulations thereunder.8 Rule 10335 is

intended to provide a pilot system

within the NASD arbitration forum to

process requests for temporary

injunctive relief. Rule 10335 is intended

principally to facilitate the disposition

of employment disputes, and related

disputes, concerning members who file

for injunctive relief, to prevent

registered representatives from

transferring their client accounts to their

new firms.

The Commission finds good cause for

approving the proposed rule change and

Amendment No. 1 prior to the 30th day

after the date of publication of notice of

filing thereof in that accelerated

approval will permit members to have

the benefit of injunctive relief in

arbitration pending Commission action

on the rule filing proposing to amend

Rule 10335 and make it a permanent

part of the Code.9 Amendment No. 1

makes several technical changes to the

proposal and adds the statutory basis to

the rule filing. The Commission

believes, therefore, that granting

accelerated approval of the proposed

rule change, as amended, is consistent

with Section 15A of the Act.10

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,11 that the

proposed rule change (SR–NASD–00–

75), as amended, is approved on an

accelerated basis through January 4,

2002.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Jonathan G. Katz,

Secretary.

[FR Doc. 01–1155 Filed 1–12–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43814; File No. SR–NASD–

00–79]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the National Association of Securities

Dealers, Inc. Relating to EWN II Fees

for NASD Members

January 8, 2001.

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 December

21, 2000, the National Association of

Securities Dealers, Inc. (‘‘NASD’’ or

‘‘Association’’), through its whollyowned 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. 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 is filing this proposed rule to

pass on costs associated with increasing

the bandwidth of the Enterprise Wide

Network II (‘‘EWN II’’) to NASD

members for the period December 1–12,

2000. Nasdaq previously filed under

Section 19(b)(3)(A)(ii) a proposed rule

change to increase the fees beginning

December 13, 2000, which was

immediately effective upon filing.3

Nasdaq also filed a parallel rule filing to

effect amendments to the EWN II fee

structure to apply to non-NASD

members.4 Below is the text of the

proposed rule change. Proposed new

language is in italics; proposed

deletions are in brackets.

7010. System Services

(a)–(e) No Change

(f) Nasdaq Workstation Service

(1) No Change

(2) The following charges shall apply

to the receipt of Level 2 or Level 3

Nasdaq Service via equipment and

communications linkages prescribed for

the Nasdaq Workstation II Service:

Service Charge $1.875/month per service

delivery platform

(‘‘SDP’’) from December

[13] 1, 2000 through

February 28, 2001

$2,035/month per SDP beginning March 1, 2001

Display Charge $525/month per presentation device (‘‘PD’’)

Additional Circuit/SDP

Charge

$3,075/month from December [13] 1, 2000

through February 28,

2001, and 3,225/month

beginning March 1,

2001*

A subscriber that accesses Nasdaq

Workstation II Service via an

application programming interface

(‘‘API’’) shall be assessed the Service

Charge for each of the subscriber’s SDPs

and shall be assessed the Display Charge

for each of the subscriber’s API linkages,

including an NWII substitute or quoteupdate facility. API subscribers also

shall be subject to the Additional

Circuit/SDP Charge.

* No change to footnotes

* * * * *

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.