Document ID: SEC-2006-1253-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: NASDAQ Stock Market LLC
Posted Date: 2006-09-27T04:00Z

[Federal Register: September 27, 2006 (Volume 71, Number 187)]
[Notices]               
[Page 56571-56573]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27se06-146]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54477; File No. SR-NASDAQ-2006-034]

 
Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Practice of Using a Fifth Character Identifier With the 
Symbol of Foreign Securities

September 20, 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 August 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, II, and III below, which Items 
have been prepared by Nasdaq. Nasdaq filed the proposal pursuant to 
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(1) thereunder,\4\ 
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\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(1).

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[[Page 56572]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Nasdaq is filing with the Commission a proposed rule change to 
clarify the non-applicability of the record-keeping fee in Nasdaq Rule 
4510(e) and Nasdaq Rule 4520(d) when a non-U.S. issuer requests to 
eliminate the fifth character identifier affixed to the symbol of its 
securities.\5\
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    \5\ This proposal does not require changes to Nasdaq's rule 
text. Telephone conversation between Jonathan F. Cayne, Associate 
General Counsel, The Nasdaq Stock Market, Inc., and Nataliya Cowen, 
Special Counsel, Division of Market Regulation, Commission, on 
September 19, 2006.
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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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Prior to 1999, Nasdaq required an ``F'' or ``Y'' be affixed to the 
symbol of all non-U.S. securities and American Depositary Receipts that 
traded on the Nasdaq Stock Market. In 1999, Nasdaq ceased this practice 
for new listings and allowed existing non-U.S. listed companies to 
remove the fifth character identifier upon request.\6\ For those non-
U.S. issuers that have not so requested, Nasdaq continues to include 
the fifth character identifier on the symbol of their securities. 
Nasdaq is making this filing to clarify that the record-keeping fee in 
Rule 4510(e) and Rule 4520(d) is not applicable to a non-U.S. issuer 
that requests that Nasdaq eliminate the fifth character identifier.
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    \6\ See Securities Exchange Act Release No. 41076 (Feb. 19, 
1999); 64 FR 9552 (Feb. 26, 1999).
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    The $2,500 record-keeping fee set forth in Nasdaq Rule 4510(e) and 
Nasdaq Rule 4520(d) is used to address the costs associated with 
revising Nasdaq's records when issuers engage in certain actions, 
including a voluntary change in trading symbol. However, Nasdaq notes 
that these non-U.S. issuers did not choose to have the fifth character 
identifier, as before 1999 it was mandatory. Further, these issuers are 
not requesting any change to their ``root'' four letter symbol. 
Accordingly, Nasdaq believes that these changes should not be treated 
as a voluntary symbol change and, therefore, it is inappropriate to 
charge the $2,500 record-keeping fee when a non-U.S. issuer drops the 
fifth character identifier.
2. Statutory Basis
    Nasdaq believes that the proposed rule change is consistent with 
Section 6(b) of the Act \7\ in general and furthers the objectives of 
Section 6(b)(5) \8\ in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, 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 market system, 
and in general, to protect investors and the public interest.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(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

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(i) of the Act \9\ and subparagraph (f)(1) of Rule 19b-4 
thereunder \10\ in that it constitutes a stated policy, practice or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule. As such, this proposed rule change is 
effective upon filing.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(i).
    \10\ 17 CFR 240.19b-4(f)(1).
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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-2006-034 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 SR-NASDAQ-2006-034. 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 also will be available for inspection and copying at the 
principal offices 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 Number SR-NASDAQ-2006-034 and should be submitted on or before 
October 18, 2006.

[[Page 56573]]

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-15799 Filed 9-26-06; 8:45 am]

BILLING CODE 8010-01-P