Document ID: SEC-2006-1025-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2006-08-08T04:00Z

[Federal Register: August 8, 2006 (Volume 71, Number 152)]
[Notices]               
[Page 45084-45086]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08au06-94]                         

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SECURTITES AND EXCHANGE COMMISSION /

[Release No. 34-54260; File No. SR-NASDAQ-2006-024]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Regarding Technical and Conforming Changes to Nasdaq's 7000 Series 
Rules

August 1, 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 31, 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 filed the proposed rule change as a 
``non-controversial'' rule change pursuant to Section 19(b)(3)(A) of 
the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders it 
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\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq proposes to conform the Rule 7000 Series of Nasdaq's rules 
to certain changes made to the Rule 7000 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 on August 1, 2006. The text of the 
proposed rule change is available on Nasdaq's Web site at http://www.nasdaq.com
, at the principal office of Nasdaq, and at the 

Commission's Public Reference Room.

[[Page 45085]]

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 7000 Series Rules to reflect certain 
changes made to the Rule 7000 Series of the rules of NASD 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 7015 to reflect changes to NASD Rule 
7010(f) by SR-NASD-2006-026, SR-NASD-2006-027, and SR-NASD-2006-043.\5\ 
The amendments to Nasdaq Rule 7015 also reflect prior Commission 
approvals for the application of NASD Rule 7010(f) to non-members, such 
as service bureaus, that obtain access services from Nasdaq.
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    \5\ Securities Exchange Act Release Nos. 53536 (March 21, 2006), 
71 FR 15784 (March 29, 2006) (SR-NASD-2006-026); 53535 (March 21, 
2006), 71 FR 15788 (March 29, 2006) (SR-NASD-2006-027); and 53617 
(April 7, 2006), 71 FR 19597 (April 14, 2006) (SR-NASD-2006-043).
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     Amending Nasdaq Rule 7017 to restore a pilot program for 
NQDS fees for non-professional users that had lapsed at the time of the 
approval of Nasdaq's exchange registration application but that was 
restored under NASD rules in SR-NASD-2006-009.\6\
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    \6\ Securities Exchange Act Release No. 53255 (February 8, 
2006), 71 FR 8016 (February 15, 2006) (SR-NASD-2006-009).
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     Amending Nasdaq Rule 7021 to reflect changes to NASD Rule 
7010(n) made by SR-NASD-2006-072.\7\
     Adding NASDAQ Rule 7034 to reflect the addition of Inet 
connectivity fees to NASD Rule 7010(w) in SR-NASD-2005-147 and SR-NASD-
2005-148 \8\ and subsequent amendments to the Rule by SR-NASD-2006-013, 
SR-NASD-2006-031 and SR-NASD-2006-032.\9\
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    \7\ Securities Exchange Act Release No. 54002 (June 16, 2006), 
71 FR 36143 (June 23, 2006) (SR-NASD-2006-072).
    \8\ Securities Exchange Act Release Nos. 53005 (December 22, 
2005), 70 FR 77215 (December 29, 2005) (SR-NASD-2005-147); and 53006 
(December 22, 2005), 70 FR 77220 (March 29, 2006) (SR-NASD-2005-
148).
    \9\ Securities Exchange Act Release Nos. 53256 (February 8, 
2006), 71 FR 8020 (February 15, 2006) (SR-NASD-2006-013); 53504 
(March 16, 2006), 71 FR 14760 (March 23, 2006) (SR-NASD-2006-031); 
and 53505 (March 16, 2006), 71 FR 14758 (March 23, 2006) (SR-NASD-
2006-032).
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     Adding Nasdaq Rule 7035 to reflect the addition of NASD 
Rule 7010(x) in SR-NASD-2006-030.\10\
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    \10\ Securities Exchange Act Release No. 54005 (June 16, 2006), 
71 FR 36145 (June 23, 2006) (SR-NASD-2006-030).
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     Adding Nasdaq Rule 7036 to reflect the addition of NASD 
Rule 7010(y) in SR-NASD-2006-056.\11\
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    \11\ Securities Exchange Act Release No. 54003 (June 16, 2006), 
71 FR 36141 (June 23, 2006) (SR-NASD-2006-056).
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     Amending Nasdaq Rules 7011, 7025, 7028, and 7033 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,\12\ in general, and with 
Sections 6(b)(4) and (5) of the Act,\13\ in particular, in that the 
proposal provides for the equitable allocation of reasonable dues, fees 
and other charges among members and issuers and other persons using any 
facility or system which Nasdaq operates or controls, and 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 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. Nasdaq believes the proposed 
rule change conforms the Rule 7000 Series of Nasdaq's rules to certain 
changes made to the Rule 7000 Series of NASD rules since approval of 
Nasdaq's rules by the Commission in January 2006 and corrects certain 
errors in the approved rules.
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    \12\ 15 U.S.C. 78f.
    \13\ 15 U.S.C. 78f(b)(4) and (5).
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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 forgoing rule change does not: (1) Significantly affect 
the protection of investors or the public interest; (2) impose any 
significant burden on competition; and (3) become operative for 30 days 
after the date of this filing, or such shorter time as the Commission 
may designate, it has become effective pursuant to Section 19(b)(3)(A) 
of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b4(f)(6).
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    A proposed rule change filed under 19b-4(f)(6) normally may not 
become operative prior to 30 days after the date of filing.\16\ 
However, Rule 19b-4(f)(6)(iii) \17\ permits the Commission to designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. Nasdaq provided the Commission with 
written notice of its intent to file this proposed rule change at least 
five business days prior to the date of filing the proposed rule 
change. In addition, Nasdaq has requested that the Commission waive the 
30-day pre-operative delay, and the Commission hereby grants that 
request.\18\ The Commission believes that waiving the 30-day pre-
operative delay is consistent with the protection of investors and in 
the public interest because it 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, at the time when Nasdaq begins 
to operate as a national securities exchange.
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    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ Id.
    \18\ For the purposes only of waiving the 30-day pre-operative 
delay, the 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 Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and

[[Page 45086]]

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 No. SR-NASDAQ-2006-024 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 No. SR-NASDAQ-2006-024. 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 will also be available for inspection and copying at the 
principal office of 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 No. SR-NASDAQ-2006-024 and should be submitted on or before August 
29, 2006.
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    \19\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\19\
Nancy M. Morris,
Secretary.
 [FR Doc. E6-12840 Filed 8-7-06; 8:45 am]

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