Document ID: SEC-2006-1003-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2006-08-04T04:00Z

[Federal Register: August 4, 2006 (Volume 71, Number 150)]
[Notices]               
[Page 44338-44339]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04au06-116]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54252; File No. SR-NASDAQ-2006-022]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Regarding Technical and Conforming Changes to Nasdaq's 6000, 9000, and 
11000 Series Rules

July 31, 2006.
    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 July 28, 2006, The NASDAQ Stock Market LLC (``Nasdaq''), 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 by Nasdaq. Nasdaq has designated the proposed rule change as 
constituting a ``non-controversial'' rule change under Rule 19b-4(f)(6) 
under the Act,\3\ 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of Terms of the Substance 
of the Proposed Rule Change

    Nasdaq proposes to conform the Rule 6000, 9000, and 11000 Series of 
Nasdaq's rules to certain changes made to the corresponding rule series 
of the rules of the National Association of Securities Dealers, Inc. 
(``NASD'') since approval of Nasdaq's rules by the Commission in 
January 2006 and to correct certain errors in the approved rules. 
Nasdaq proposes to implement the proposed rule change immediately. The 
text of the proposed rule change is available on Nasdaq's Web site 
(http://www.nasdaq.com), at Nasdaq's principal office and at 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, 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
    Nasdaq is modifying its 6000, 9000 and 11000 Series Rules to 
conform them to certain changes made to the corresponding NASD rule 
series since approval of Nasdaq's rules by the Commission in January 
2006 and to correct certain errors in the approved rules. Specifically, 
Nasdaq is:
     Amending Nasdaq Rule 6951 to reflect the effectiveness of 
a change to the definition of ``Reporting Member.''
     Adding Nasdaq Rule 6958 to provide exemptive authority 
comparable to the authority provided to NASD by NASD Rule 6958.\4\
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    \4\ Securities Exchange Act Release Nos. 53819 (May 17, 2006), 
71 FR 29697 (May 23, 2006) (SR-NASD-2006-052); and 53580 (March 30, 
2006), 71 FR 17529 (April 4, 2006) (SR-NASD-2006-040).
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     Amending Nasdaq Rule 9120 to reflect the deletion, 
effective August 28, 2006, of the Nasdaq Rule 5000 Series and to 
eliminate an erroneous reference to the Nasdaq Rule 7000 Series.\5\
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    \5\ Securities Exchange Act Release No. 54155 (July 14, 2006), 
71 FR 41291 (July 20, 2006) (SR-NASDAQ-2006-001).
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     Amending Nasdaq IM-11810 in accordance with changes to 
NASD IM-11810 made by SR-NASD-2005-087.\6\
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    \6\ Securities Exchange Act Release No. 54084 (June 30, 2006), 
71 FR 38935 (July 10, 2006) (SR-NASD-2005-087).
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     Amending Nasdaq Rule 11890 to reflect changes made to NASD 
Rule 11890 by SR-NASD-2006-033.\7\
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    \7\ Securities Exchange Act Release No. 53541 (March 22, 2006), 
71 FR 15792 (March 29, 2006) (SR-NASD-2006-033).
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     Amending Nasdaq Rules 6250, 6800, 6954, 9110, 11310, and 
11840 and

[[Page 44339]]

Nasdaq IM-9216 and IM-11110 to correct typographical errors.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
the provisions of Section 6 of the Act,\8\ in general, and with Section 
6(b)(5) of the Act,\9\ in particular, in that it is designed to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest; and is not designed to 
permit unfair discrimination between customers, issuers, brokers, or 
dealers.
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    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(5).
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    Nasdaq believes that the proposed rule change conforms the Nasdaq 
Rules 6000, 9000, and 11000 Series of Nasdaq's rules to certain changes 
made to the corresponding rule series of the rules of NASD since 
approval of Nasdaq's rules by the Commission in January 2006 and 
corrects certain errors in the approved rules.

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

    Nasdaq has designated the foregoing rule change as a ``non-
controversial'' rule change pursuant to Section 19(b)(3)(A) of the 
Act\10\ and Rule 19b-4(f)(6) thereunder\11\ 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 if consistent with the protection of investors and the public 
interest.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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    Nasdaq has requested that the Commission waive the 30-day pre-
operative period requirement for ``non-controversial'' proposals, based 
upon a representation that such waiver will allow Nasdaq to implement 
the rule changes, which have either recently been made effective as 
changes to NASD rules or are technical in nature, prior to the time 
when Nasdaq begins to operate as a national securities exchange. The 
Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest. 
Waiver of the 30-day operative period will allow Nasdaq to implement 
these changes immediately so that they can be in place prior to the 
time Nasdaq begins to operate as a national securities exchange. 
Accordingly, the Commission has determined to waive the operative 
delay, and the proposed rule change has become effective upon filing 
with the Commission.\12\
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    \12\ For purposes only of waiving the operative date of this 
proposal, he Commission has considered the proposed rule's impact on 
efficiency, competition and capital formation. See 15 U.S.C. 78c(f).
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    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 rule-comments@sec.gov. Please include 

File Number SR-NASDAQ-2006-022 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-2006-022. 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 Section, 100 F Street, 
NE., Washington, DC 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of the Nasdaq. 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-2006-022 and should 
be submitted on or before August 25, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-12613 Filed 8-3-06; 8:45 am]

BILLING CODE 8010-01-P