Federal Register: December 1, 2003 (Volume 68, Number 230)
DOCID: FR Doc 03-29802
SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
DOCUMENT ID: [Release No. 34-48821; File No. SR-NASD-2003-134]
NOTICE: NOTICES
ACTION: Self-regulatory organizations; proposed rule changes:
SUBJECT CATEGORY:
Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Order Granting Approval of Proposed Rule Change and Amendment Nos. 1 and 2 thereto by the National Association of Securities Dealers, Inc. To Amend Rule 4710 to Allow Nasdaq National Market Execution System Order Entry Firms To Automatically Internalize in SuperMontage
DOCUMENT SUMMARY:
November 21, 2003.
On August 22, 2003, the National Association of Securities Dealers,
Inc. (``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc.
(``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 19b4 thereunder,\2\ a
proposed rule change to amend NASD Rule 4710 to allow the Nasdaq
National Market Execution System (``NNMS'' or ``SuperMontage'') to
automatically match any nondirected buy and sell quotes/orders entered
by an NNMS Order Entry Firm against the quotes/orders of that same NNMS
Order Entry Firm on the other side of the market if such a quote/order
on the other side of the market is at the best bid/offer in Nasdaq. On
September 26, 2003, Nasdaq amended the proposed rule change.\3\ \1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ See letter from Thomas P. Moran, Associate General Counsel,
Nasdaq, to Katherine A. England, Assistant Director, Division of
Market Regulation (``Division''), Commission, dated September 25, 2003 (``Amendment No. 1'').
The proposed rule change and Amendment No. 1 were published for
comment in the Federal Register on October 16, 2003.\4\ The Commission
received no comments on the proposal, as amended. On November 19, 2003,
Nasdaq filed Amendment No. 2 to the proposed rule change.\5\ This order
approves the proposed rule change, as amended by Amendment Nos. 1 and 2.\6\
\4\ See Securities Exchange Act Release No. 48606 (October 8, 2003), 68 FR 59659 (``Notice'').
\5\ See letter from Thomas P. Moran, Associate General Counsel,
Nasdaq, to Katherine A. England, Assistant Director, Division,
Commission, dated November 19, 2003 (``Amendment No. 2''). In
Amendment No. 2, Nasdaq revised the text of the proposed rule change
to correct a typographical error and to clarify that there would be
no change to paragraphs (b)(1)(B)(iv)(c), (b)(1)(C) or (b)(1)(D) of
NASD Rule 4710. This was a technical amendment and is not subject to notice and comment.
\6\ Nasdaq represented that it would implement the proposed rule
change, as amended, within 60 days after approval by the Commission. See Notice, supra note 4.
The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
association.\7\ In particular, the Commission believes that the
proposed rule change, as amended, is consistent with Section 15A(b) of
the Act \8\ in general, and furthers the objectives of Section
15A(b)(6) \9\ in particular, in that it 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. Specifically, the Commission
finds that Nasdaq's proposal, as amended, provides NNMS Order Entry
Firms with the same opportunity as other Nasdaq market participants to
have their quotes/orders on opposite sides of the market match off against each other.
\7\ In approving the proposed rule change, as amended, the
Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
\8\ 15 U.S.C. 78o3(b).
\9\ 15 U.S.C. 78o3(b)(6).
For the foregoing reasons, the Commission finds that the proposed [[Page 67253]]
rule change, as amended, is consistent with the requirements of the Act and rules and regulations thereunder.
It Is Therefore Ordered, pursuant to Section 19(b)(2) of the Act,\10\ that the proposed rule change (SRNASD2003134) and Amendment Nos. 1 and 2 are approved.
\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\11\
\11\ 17 CFR 200.303(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 0329802 Filed 112803; 8:45 am]
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SUMMARY:
National Association of Securities Dealers, Inc.,
DOCUMENT BODY 2:
November 21, 2003.
On August 22, 2003, the National Association of Securities Dealers,
Inc. (``NASD''), through its subsidiary, The Nasdaq Stock Market, Inc.
(``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 19b4 thereunder,\2\ a
proposed rule change to amend NASD Rule 4710 to allow the Nasdaq
National Market Execution System (``NNMS'' or ``SuperMontage'') to
automatically match any nondirected buy and sell quotes/orders entered
by an NNMS Order Entry Firm against the quotes/orders of that same NNMS
Order Entry Firm on the other side of the market if such a quote/order
on the other side of the market is at the best bid/offer in Nasdaq. On
September 26, 2003, Nasdaq amended the proposed rule change.\3\ \1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ See letter from Thomas P. Moran, Associate General Counsel,
Nasdaq, to Katherine A. England, Assistant Director, Division of
Market Regulation (``Division''), Commission, dated September 25, 2003 (``Amendment No. 1'').
The proposed rule change and Amendment No. 1 were published for
comment in the Federal Register on October 16, 2003.\4\ The Commission
received no comments on the proposal, as amended. On November 19, 2003,
Nasdaq filed Amendment No. 2 to the proposed rule change.\5\ This order
approves the proposed rule change, as amended by Amendment Nos. 1 and 2.\6\
\4\ See Securities Exchange Act Release No. 48606 (October 8, 2003), 68 FR 59659 (``Notice'').
\5\ See letter from Thomas P. Moran, Associate General Counsel,
Nasdaq, to Katherine A. England, Assistant Director, Division,
Commission, dated November 19, 2003 (``Amendment No. 2''). In
Amendment No. 2, Nasdaq revised the text of the proposed rule change
to correct a typographical error and to clarify that there would be
no change to paragraphs (b)(1)(B)(iv)(c), (b)(1)(C) or (b)(1)(D) of
NASD Rule 4710. This was a technical amendment and is not subject to notice and comment.
\6\ Nasdaq represented that it would implement the proposed rule
change, as amended, within 60 days after approval by the Commission. See Notice, supra note 4.
The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
association.\7\ In particular, the Commission believes that the
proposed rule change, as amended, is consistent with Section 15A(b) of
the Act \8\ in general, and furthers the objectives of Section
15A(b)(6) \9\ in particular, in that it 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. Specifically, the Commission
finds that Nasdaq's proposal, as amended, provides NNMS Order Entry
Firms with the same opportunity as other Nasdaq market participants to
have their quotes/orders on opposite sides of the market match off against each other.
\7\ In approving the proposed rule change, as amended, the
Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
\8\ 15 U.S.C. 78o3(b).
\9\ 15 U.S.C. 78o3(b)(6).
For the foregoing reasons, the Commission finds that the proposed [[Page 67253]]
rule change, as amended, is consistent with the requirements of the Act and rules and regulations thereunder.
It Is Therefore Ordered, pursuant to Section 19(b)(2) of the Act,\10\ that the proposed rule change (SRNASD2003134) and Amendment Nos. 1 and 2 are approved.
\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\11\
\11\ 17 CFR 200.303(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 0329802 Filed 112803; 8:45 am]
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