Document ID: SEC-2006-1259-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2006-09-28T04:00Z

[Federal Register: September 28, 2006 (Volume 71, Number 188)]
[Notices]               
[Page 57010-57011]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28se06-97]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54478; File No. SR-NASDAQ-2006-016]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order 
Granting Approval of Proposed Rule Change To Eliminate Registration of 
Foreign Associates Under Nasdaq Membership Rules

September 21, 2006.
    On July 21, 2006, The NASDAQ Stock Market LLC (``Nasdaq'') 
submitted to 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 
eliminate the requirement for foreign associates to register with 
Nasdaq. The proposed rule change was published for comment in the 
Federal Register on August 15, 2006.\3\ The Commission received no 
comments on the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 54284 (August 8, 2006), 
71 FR 46954.46954.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange.\4\ In 
particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(5) of the Act,\5\ which requires, among 
other things, that the rules of the Exchange are 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.

[[Page 57011]]

Nasdaq proposes to eliminate the foreign associate registration 
category under Nasdaq Rule 1100 and add an exemption to Nasdaq Rule 
1060 for persons formerly covered by this registration category. 
Pursuant to Nasdaq's definition of a foreign associate, these 
associated persons would not be conducting any securities activities on 
the Nasdaq market. The Commission notes that NASD Rule 1100 requires 
foreign associates of NASD members to register with NASD. The 
Commission believes that, because many Nasdaq members are also members 
of NASD, requiring Nasdaq members to register its foreign associates 
with both self-regulatory organizations is duplicative.\6\
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    \4\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ The Commission notes that Nasdaq stated in its proposal that 
it has no reason to expect that the small number of non-NASD members 
that become Nasdaq members would have associated persons categorized 
as foreign associates.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-NASDAQ-2006-016) be, and 
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary. 2
 [FR Doc. E6-15897 Filed 9-27-06; 8:45 am]

BILLING CODE 8010-01-P