Document ID: SEC-2007-1200-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2007-08-27T04:00Z

[Federal Register: August 27, 2007 (Volume 72, Number 165)]
[Notices]               
[Page 49032-49033]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27au07-91]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56294; File No. SR-NASDAQ-2007-024]

 
Self-Regulatory Organization; The NASDAQ Stock Market LLC; Order 
Approving Proposed Rule Change and Amendment No. 1 Thereto To Provide 
Additional Transparency To How Nasdaq Applies Its Public Interest 
Authority

August 21, 2007.
    On March 16, 2007, The NASDAQ Stock Market LLC (``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 clarify how 
Nasdaq applies its public interest authority. On June 26, 2007, Nasdaq 
filed Amendment No. 1 to the proposed rule change. The proposed rule 
change, as amended, was published for comment in the Federal Register 
on July 17, 2007.\3\ The Commission received no comments regarding the 
proposal.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 56044 (July 11, 
2007), 72 FR 39108.
---------------------------------------------------------------------------

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder 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 that the 
rules of the an exchange be designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national securities system, and, in 
general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \4\ In approving this proposed rule change, the Commission 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).
---------------------------------------------------------------------------

    Nasdaq IM-4300 states that Nasdaq may use its authority under 
Nasdaq Rule 4300 to deny initial or continued listing when an 
individual with a history of regulatory misconduct is associated with 
an issuer. Nasdaq proposes to amend Nasdaq IM-4300 to provide 
additional transparency to how Nasdaq may use this authority pursuant 
to Nasdaq Rule 4300. Specifically, Nasdaq proposes to provide 
additional guidance to issuers by clarifying existing factors in Nasdaq 
IM-4300 that it will consider in applying such

[[Page 49033]]

authority. Nasdaq also proposes to add new language highlighting Nasdaq 
staff's willingness to discuss remedial measures with issuers. The 
Commission believes that this proposal is reasonably designed to 
enhance the transparency and integrity of the Nasdaq's initial or 
continued listing denial process.
    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-NASDAQ-2007-024), as modified 
by Amendment No. 1, be, and it hereby is, approved.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-16879 Filed 8-24-07; 8:45 am]

BILLING CODE 8010-01-P