57908 Federal Register / Vol. 70, No. 191 / Tuesday, October 4, 2005 / Notices 

5 17 CFR 200.30–3(a)(1). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 51836 

(June 13, 2005), 70 FR 35753 (June 21, 2005) (the 

‘‘Release’’). 

4See letter from Peter G. Salmon, Director—

Operations & Technology, Investment Company 

Institute, to Jonathan G. Katz, Secretary, 

Commission, dated July 12, 2005 (‘‘ICI Letter’’). 

5See Amendment No. 2 Amendment No. 2 

changed the proposed implementation date from 

July 1, 2005 to the later date of either January 1, 

2006 or on the date all of the proposed 

enhancements to the Mutual Fund Quotation 

Service (‘‘MFQS’’) have been implemented. 

6See footnote 4, supra. 

7See ICI Letter at 1. 

8 Id. at 2. 

9 Id. 

10 Id. 

11 Id. 

12See footnote 5, supra. 

13 In approving the proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition and capital 

formation. 15 U.S.C. 78s(f). 

14 15 U.S.C. 78o3(b)(5). 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/delist.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include the 

File Number 1–10219 or; 

Paper Comments 

• Send paper comments in triplicate 

to Jonathan G. Katz, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–9303. 

All submissions should refer to File 

Number 1–10219. This file number 

should be included on the subject line 

if e-mail is used. To help us 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/delist.shtml). 

Comments are also available for public 

inspection and copying in the 

Commission’s Public Reference Room. 

All comments received will be posted 

without change; we do not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. 

The Commission, based on the 

information submitted to it, will issue 

an order granting the application after 

the date mentioned above, unless the 

Commission determines to order a 

hearing on the matter. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.5

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–19804 Filed 10–3–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52517; File No. SR–NASD–

2005–059] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Order Approving 

Proposed Rule Change and 

Amendment No. 1 Thereto, and Notice 

of Filing and Order Granting 

Accelerated Approval to Amendment 

No. 2 to the Proposed Rule Change, To 

Amend NASD Rule 7090 To Modify the 

Annual Listing and Administrative 

Fees 

September 27, 2005. 

I. Introduction 

On May 10, 2005, 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’’), 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 amend NASD Rule 7090 

(‘‘Mutual Fund Quotation Service’’) to 

modify the annual listing and 

administrative fees. On June 8, 2005, 

Nasdaq filed Amendment No. 1 to the 

proposed rule change. The proposed 

rule change, as modified by Amendment 

No. 1, was published for comment in 

the Federal Register on June 21, 2005.3

The Commission received one comment 

on the proposal.4 On September 14, 

2005, Nasdaq filed Amendment No. 2, 

which incorporated its response to the 

comment.5 This order approves the 

proposed rule change, as modified by 

Amendment No. 1, and provides notice 

of filing and grants accelerated approval 

of Amendment No. 2. 

II. Summary of Comments 

The Commission received one 

comment letter on the proposed rule 

change.6 The commenter stated that it 

supports the planned enhancements to 

the MFQS.7 In addition, the commenter 

does not object to the proposed fee 

increases, provided Nasdaq implements 

the planned enhancements on the 

schedule outlined in the Release.8 The 

commenter is concerned that changes in 

priorities and other factors or events 

could delay the implementation of the 

planned enhancements to the MFQS.9

However, the commenter urged that the 

proposed fee increases only be assessed 

once the planned enhancements are 

implemented.10 The commenter does 

not believe that its recommendation that 

the proposed fee increases be assessed 

once the planned enhancements are 

implemented would impede the 

completion of the planned 

enhancements.11

III. Nasdaq Response to Comments 

In response to the comment letter, 

Nasdaq amended the filing.12 In 

response to the commenter’s request 

that the proposed fee increases only be 

assessed once the planned 

enhancements are implemented, Nasdaq 

amended the implementation date of the 

changes proposed in Amendment No. 1. 

Specifically, Amendment No. 2 

addresses the commenter’s concern by 

stating that the proposed rule change 

will be implemented on the later date of 

either January 1, 2006 or on the date all 

of the proposed enhancements to the 

MFQS system have been implemented. 

IV. Discussion and Commission 

Findings 

After careful review of the proposal, 

the comment letter, and Nazdaq’s 

response, 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 selfregulatory organization.13 In particular, 

the Commission believes that the 

proposed rule change, as amended, is 

consistent with Section 15A(b)(5) of the 

Act,14 which requires, among other 

things, that the rules of the association 

provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facility or system 

which NASD operates or controls. The 

Commission notes that the Nasdaq 

proposal, as amended, will not be 

implemented until the later of either 

Federal Register / Vol. 70, No. 191 / Tuesday, October 4, 2005 / Notices 57909 

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

16 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. 43344 

(September 26, 2000), 65 FR 59038. 

4See letters to Jonathan G. Katz, Secretary, 

Commission, from Harold M. Golz, Krys Boyle 

Freedman & Sawyer, P.C. on behalf of Rocky 

Mountain Securities & Investments, Inc., dated 

October 20, 2000 (‘‘Rocky Mountain Letter’’); 

Mitchell M. Almy, President, Mitchell Securities 

Corporation of Oregon, dated October 20, 2000 

(‘‘Mitchell Securities Letter’’); Joanne Ferrari, 

Compliance Manager, Weeden & Co., dated October 

23, 2000 (‘‘Weeden Letter’’); Bonnie K. Wachtel, 

CEO and Wendie L. Wachtel, COO, Wachtel & Co., 

Inc. dated October 24, 2000 and March 26, 2001 

(‘‘Watchel Letters—1’’); Laurence Storch, Storch & 

Brenner, LLP, dated October 24, 2000 (‘‘Stroch & 

Brenner Letter’’); Allen Thomas, Vice President, 

A.G. Edwards & Sons, Inc., dated October 24, 2000 

(‘‘A.G. Edwards Letter’’); Stuart J. Kaswell, Senior 

Vice President and General Counsel, Securities 

Industry Association, Ad Hoc Committee, dated 

October 24, 2000 (‘‘SIA Letter-1’’); W. Leo McBlain, 

Chairman and Thomas J. Jordan, Executive Director, 

Financial Information Forum, dated October 24, 

2000 (‘‘FIF Letter-1’’); Thomas F. Guinan, Senior 

Vice President, Pershing Division of Donaldson, 

Lufkin & Jenrette Securities Corporation, dated 

October, 24, 2000 (‘‘Pershing Letter’’); Paul A 

Merolla, Senior Vice President and General 

Counsel, Instinet Corporation, dated October 25, 

2000 (‘‘Instinet Letter’’); Richard E. Schell, Vice 

President and Assistant General Counsel, First 

Options of Chicago, dated October 25, 2000 (‘‘First 

Options Letter’’); Jill W. Ostergaard, Vice President, 

Morgan Stanley Dean Witter, dated October 27, 

2000 (‘‘MSDW Letter’’). 

5See Securities Exchange Act Release No. 51890 

(June 21, 2005), 70 FR 36985. 

6See letters to Jonathan G. Katz, Secretary, 

Commission, from Chris Charles, President, Wulff, 

Hansen & Co., dated July 12, 2005 (‘‘Wulff Letter’’); 

Bonnie K. Wachtel, CEO and Wendie L. Wachtel, 

COO, Wachtel & Co., Inc. dated July 18, 2005 

(‘‘Wachtel Letter-2’’); Ronald C. Long, Senior Vice 

President, Wachovia Securities, LLC, dated July 18, 

2005 (‘‘Wachovia Letter’’); Howard Meyerson, 

General Counsel, Liquidnet, Inc., dated July 19, 

2005 (‘‘Liquidnet Letter’’); Bob Linville, ADP/SIS 

Service Bureau Committee Co-Chair, Deborah 

Mittelman, Sunguard Service Bureau Committee 

Co-Chair, W. Leo McBain, Chairman, Manisha 

Kulkarni, Executive Director, Financial Information 

Forum, dated July 22, 2005 (‘‘FIF Letter-2’’); Ira 

Hammerman, Senior Vice President and general 

Counsel, Securities Industry Association, dated July 

26, 2005 (‘‘SIA Letter-2’’). 

January 1, 2006 or on the date all of the 

proposed enhancements to the MFQS 

system have been implemented. The 

Commission believes that this change to 

the proposal sufficiently addresses the 

concerns expressed by the commenter. 

The Commissioner finds good cause 

for approving proposed Amendment No. 

2 before the 30th day after the date of 

publication of notice of filing thereof in 

the Federal Register. Nasdaq filed 

Amendment No. 2 in response to 

comments it received after publication 

of the notice of filing of the proposed 

rule change, to address the commenter’s 

concerns. Because Amendment No. 2 is 

responsive to the commenter’s concerns, 

the Commission finds good cause for 

accelerating approval of Amendment 

No. 2. 

V. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning Amendment No. 

2, including whether Amendment No. 2 

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–2005–059 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Jonathan G. Katz, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–9303. 

All submissions should refer to File 

Number SR–NASD–2005–059. 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 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–2005–059 and 

should be submitted on or before 

October 25, 2005. 

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,15 that the 

proposed rule change (File No. SR–

NASD 2005–059), as modified by 

Amendment No. 1, thereto, be, and it 

hereby is, approved and that 

Amendment No. 2 be, and hereby is, 

approved on an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.16

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–19808 Filed 10–3–05; 8:45 am] 

BILLING CODE 8010–01–M 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52521; File No. SR–NASD–

00–23] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Order Approving 

Amendment No. 2 to Proposed Rule 

Change by Relating to Amendments To 

Order Audit Trail System Rules and 

Notice of and Order Granting 

Accelerated Approval to Amendment 

No. 3 

September 28, 2005. 

I. Introduction 

On April 19, 2000, the National 

Association of Securities Dealers, Inc. 

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

Exchange Commission (‘‘SEC’’ or 

‘‘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 

amend its rules relating to its Order 

Audit Trail System (‘‘OATS’’). On 

September 5, 2000, NASD filed 

Amendment No. 1 to the proposed rule 

change. The proposed rule change, as 

amended by Amendment No. 1, was 

published for comment in the Federal 

Register on October 3, 2000.3 The 

Commission received 13 comment 

letters from 12 commenters in response 

to the publication.4

In response to those comments, on 

June 10, 2005, NASD filed Amendment 

No. 2 to the proposed rule change. 

Amendment No. 2 was published for 

comment in the Federal Register on 

June 27, 2005.5 The Commission 

received six comment letters in 

response to the publication.6 On 

September 14, 2005, NASD filed 

Amendment No. 3 to the proposed rule 

change to address the concerns raised in 

those comment letters, and to make a 

technical change to the rule text. This 

order approves Amendment No. 2 to the 

proposed rule change. In addition, the 

Commission is publishing this notice to 

solicit comments on Amendment No. 3 

to the proposed rule change and is