Document ID: SEC-2006-1703-0001
Agency: sec
Document Type: Notice
Title: Joint Industry Plan: American Stock Exchange LLC et al.
Posted Date: 2006-12-28T05:00Z

[Federal Register: December 28, 2006 (Volume 71, Number 249)]
[Notices]               
[Page 78240-78241]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28de06-125]                         

[[Page 78240]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54988; File No. S7-24-89]

 
Joint Industry Plan; Solicitation of Comments and Order Granting 
Temporary Summary Effectiveness to Request to Extend the Operation of 
the Reporting Plan for Nasdaq-Listed Securities Traded on Exchanges on 
an Unlisted Trading Privilege Basis, Submitted by the American Stock 
Exchange LLC, the Boston Stock Exchange, Inc., the Chicago Stock 
Exchange, Inc., the Chicago Board Options Exchange, Incorporated, the 
International Securities Exchange, Inc., the National Association of 
Securities Dealers, Inc., the National Stock Exchange, Inc., the Nasdaq 
Stock Market LLC, NYSE Arca, Inc., and the Philadelphia Stock Exchange, 
Inc., and to Request Permanent Approval of the Plan

December 20, 2006.

I. Introduction and Description

    On December 12, 2006, NYSE Arca, Inc. (``NYSEArca''), on behalf of 
itself and the American Stock Exchange LLC (``Amex''), the Boston Stock 
Exchange, Inc. (``BSE''), the Chicago Stock Exchange, Inc. (``CHX''), 
the Chicago Board Options Exchange, Incorporated (``CBOE''), the 
International Securities Exchange, Inc. (``ISE''), the National 
Association of Securities Dealers, Inc. (``NASD''), the National Stock 
Exchange, Inc. (``NSX''), the Nasdaq Stock Market LLC (``Nasdaq''), and 
the Philadelphia Stock Exchange, Inc. (``Phlx'') (hereinafter referred 
to collectively as ``Participants''),\1\ as members of the operating 
committee (``Operating Committee'' or ``Committee'') of the Plan 
submitted to the Securities and Exchange Commission (``Commission'') a 
request to extend the operation of the Plan, along with a request for 
permanent approval of the Plan.\2\
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    \1\ NYSEArca is the chair of the operating committee 
(``Operating Committee'' or ``Committee'') for the Joint Self-
Regulatory Organization Plan Governing the Collection, Consolidation 
and Dissemination of Quotation and Transaction Information for 
Nasdaq-Listed Securities Traded on Exchanges on an Unlisted Trading 
Privilege Basis (``Nasdaq UTP Plan'' or ``Plan'') by the 
Participants.
    \2\ See letter from Bridget M. Farrell, Chairman, OTC/UTP 
Operating Committee, to Nancy M. Morris, Secretary, Commission, 
dated December 12, 2006.
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    The Nasdaq UTP Plan governs the collection, processing, and 
dissemination on a consolidated basis of quotation and last sale 
information for Nasdaq-listed securities for each of its Participants. 
This consolidated information informs investors of the current 
quotation and recent trade prices of Nasdaq securities. It enables 
investors to ascertain from one data source the current prices in all 
the markets trading Nasdaq securities. The Plan serves as the required 
transaction reporting plan for its Participants, which is a 
prerequisite for their trading Nasdaq securities.\3\
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    \3\ See Securities Exchange Act Release No. 52886 (December 5, 
2005), 70 FR 74059 (December 14, 2005).
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    This order grants summary effectiveness, pursuant to Rule 608(b)(4) 
under the Securities Exchange Act of 1934 (``Act''),\4\ to the request 
to extend operation of the Plan, as modified by all changes previously 
approved (``Date Extension''). Pursuant to Rule 608(b)(4) under the 
Act,\5\ the Date Extension will be effective upon publication in the 
Federal Register on temporary basis for 120 days from the date of 
publication.\6\
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    \4\ 17 CFR 242.608(b)(4).
    \5\ 17 CFR 242.608(b)(4).
    \6\ The Participants requested that the Commission extend the 
previously issued exemption from compliance with Section VI.C.1 of 
the Plan. However, this exemption is no longer necessary as Nasdaq 
is now a registered national securities exchange with respect to 
Nasdaq-listed securities.
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II. Discussion

    The Commission finds that extending the operation of the Plan is 
consistent with the requirements of the Act and the rules and 
regulations thereunder, and, in particular, Section 12(f) \7\ and 
Section 11A(a)(1) \8\ of the Act and Rules 601 and 608 thereunder.\9\ 
Section 11A of the Act directs the Commission to facilitate the 
development of a national market system for securities, ``having due 
regard for the public interest, the protection of investors, and the 
maintenance of fair and orderly markets,'' and cites as an objective of 
that system the ``fair competition . . . between exchange markets and 
markets other than exchange markets.'' \10\ When the Commission first 
approved the Plan on a pilot basis, it found that the Plan ``should 
enhance market efficiency and fair competition, avoid investor 
confusion, and facilitate surveillance of concurrent exchange and OTC 
trading.'' \11\ The Plan has been in existence since 1990 and 
Participants have been trading Nasdaq securities under the Plan since 
1993.
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    \7\ 15 U.S.C. 78l(f). Nasdaq became an exchange on January 13, 
2006. See Securities Exchange Act Release No. 53128 (January 13, 
2006), 71 FR 3550 (January 23, 2006). Therefore, unlisted trading 
privileges for Nasdaq securities are governed by Section 
12(f)(1)(A)(i).
    \8\ 15 U.S.C. 78k-1(a)(1).
    \9\ 17 CFR 242.601 and 17 CFR 242.608.
    \10\ 15 U.S.C. 78k-1(a).
    \11\ See Securities Exchange Act Release No. 28146 (June 26, 
1990), 55 FR 27917 (July 6, 1990).
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    The Commission finds that extending the operation of the Plan 
through summary effectiveness furthers the goals described above by 
preventing the lapse of the sole effective transaction reporting plan 
for Nasdaq securities traded by exchanges pursuant to unlisted trading 
privileges. The Commission believes that the Plan is currently a 
critical component of the national market system and that the Plan's 
expiration would have a serious, detrimental impact on the further 
development of the national market system.

III. Solicitation of Comments

    The Commission seeks general comments on the extension of the 
operation of the Plan, as well as the request for permanent approval of 
the Plan. Interested persons are invited to submit written data, views, 
and arguments concerning the foregoing, including whether the proposal 
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 S7-24-89 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.
    All submissions should refer to File Number S7-24-89. 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 written statements with 

respect to the Plan extension and the request for permanent approval of 
the Plan that are filed with the Commission, and all written 
communications relating to the Plan extension and the request for 
permanent approval of the Plan 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 the 
filing also will be

[[Page 78241]]

available for inspection and copying at the Office of the Secretary of 
the Committee, currently located at the NYSEArca, 100 South Wacker 
Drive, Suite 1800, Chicago, IL 60606. 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 S7-24-89 and should be submitted on or 
before January 18, 2007.

IV. Conclusion

    It is therefore ordered, pursuant to Sections 12(f) and 11A of the 
Act \12\ and paragraph (b)(4) of Rule 608 thereunder,\13\ that the 
operation of the Plan, as modified by all changes previously approved, 
be, and hereby is, extended, for a period of 120 days from the date of 
publication of this Date Extension in the Federal Register.
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    \12\ 15 U.S.C. 78l(f) and 15 U.S.C. 78k-1.
    \13\ 17 CFR 242.608(b)(4).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(27).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E6-22198 Filed 12-27-06; 8:45 am]

BILLING CODE 8011-01-P