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DOCUMENT ID: [Release No. 34-48965; File No. SR-NASD-2003-166]
SUBJECT CATEGORY: Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 by the National Association of Securities Dealers, Inc. To Correct Inaccurate Descriptions of the Territorial Boundaries of Two NASD District Offices
DOCUMENT SUMMARY: December 19, 2003.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on November 12, 2003, the National Association of Securities Dealers,
Inc. (``NASD'') 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 NASD. NASD amended the
proposed rule change on December 18, 2003.\3\ NASD filed the proposed
rule change pursuant to section 19(b)(3)(A)(i) of the Act,\4\ and Rule
19b4(f)(1) thereunder,\5\ as one constituting a stated policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule, which renders the
proposed rule change effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ See December 17, 2003 letter from Patricia M. Albrecht,
Assistant General Counsel, Regulatory Policy and Oversight, NASD, to
Katherine A. England, Assistant Director, Division of Market
Regulation, Commission (``Amendment No. 1''). In Amendment No. 1,
NASD corrected a typographical error in the proposed rule text, and
added language to clarify the reason for the proposed rule change.
For purposes of calculating the 60day abrogation period, the
Commission considers the period to have begun on December 18, 2003, the day NASD filed Amendment No. 1.
\4\ 15 U.S.C. 78s(b)(3)(A)(i).
\5\ 17 CFR 240.19b4(f)(1)
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
NASD proposes to amend Schedule B to the NASD ByLaws to correct
the inaccurate descriptions of the territorial boundaries of two NASD
District Offices. The text of the proposed rule change is available at NASD and at the Commission.
II. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASD included statements concerning the purpose of and basis for the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. NASD has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
The proposed rule change would amend Schedule B to the NASD ByLaws to correct inaccurate descriptions of Districts 9 and 10. Before 1997, the New York counties of Orange, Rockland, Putnam, and Westchester were assigned to NASD's District 10 office. In late 1997, during a reorganization of the District Offices, District 11 assumed responsibility for Orange, Rockland, Putnam, and Westchester counties. However, NASD failed to amend Schedule B to reflect this change.
In 2003, NASD conducted its most recent reorganization of the
District Offices and, among other things, transferred responsibility
for the New York counties of Orange, Rockland, Putnam, and Westchester
from District 11 to District 9. After filing a rule change to Schedule
B to the NASD ByLaws to reflect the Districts' new descriptions,\6\
NASD became aware that the 1997 change was never reflected in Schedule
B, and that Schedule B still lists District 10 as being responsible for
the New York counties of Orange, Rockland, Putnam, and Westchester.
Accordingly, NASD is filing the proposed rule change to amend Schedule
B to the NASD ByLaws to accurately align these counties within District 9.
\6\ See Securities Exchange Act Release No. 48488 (September 3, 2003), 68 FR 54762 (September 12, 2003) (SRNASD2003138).
NASD believes that the proposed rule change is consistent with the
provisions of section 15A(b)(6) of the Act,\7\ which requires, among
other things, that NASD's rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the public interest.
\7\ 15 U.S.C. 78o3(b)(6).
B. SelfRegulatory Organization's Statement on Burden on Competition
NASD 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, as amended.
C. SelfRegulatory 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
The foregoing proposal has become effective pursuant to section
19(b)(3)(A)(i) of the Act,\8\ and Rule 19b4(f)(1) \9\ thereunder, in
that it constitutes a stated policy and interpretation with respect to
the meaning of an existing rule. 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.
\8\ 15 U.S.C. 78s(b)(3)(A)(i).
\9\ 17 CFR 240.19b4(f)(1).
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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 205490609.
Comments may also be submitted electronically at the following email
address: rulecomments@sec.gov. All comment letters should refer to
File No. SRNASD2003166. This file number should be included on the
subject line if email is used. To help the Commission process and review
[[Page 75299]]
comments more efficiently, comments should be sent in hardcopy or by e
mail but not by both methods. 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 the NASD. All
submissions should refer to file number SRNASD2003166 and should be submitted by January 20, 2004.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\10\
\10\ 17 CFR 200.303(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 0331948 Filed 122903; 8:45 am]
BILLING CODE 801001P
SUMMARY: National Association of Securities Dealers, Inc.,
DOCUMENT BODY 2: December 19, 2003.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on November 12, 2003, the National Association of Securities Dealers,
Inc. (``NASD'') 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 NASD. NASD amended the
proposed rule change on December 18, 2003.\3\ NASD filed the proposed
rule change pursuant to section 19(b)(3)(A)(i) of the Act,\4\ and Rule
19b4(f)(1) thereunder,\5\ as one constituting a stated policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule, which renders the
proposed rule change effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b4.
\3\ See December 17, 2003 letter from Patricia M. Albrecht,
Assistant General Counsel, Regulatory Policy and Oversight, NASD, to
Katherine A. England, Assistant Director, Division of Market
Regulation, Commission (``Amendment No. 1''). In Amendment No. 1,
NASD corrected a typographical error in the proposed rule text, and
added language to clarify the reason for the proposed rule change.
For purposes of calculating the 60day abrogation period, the
Commission considers the period to have begun on December 18, 2003, the day NASD filed Amendment No. 1.
\4\ 15 U.S.C. 78s(b)(3)(A)(i).
\5\ 17 CFR 240.19b4(f)(1)
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
NASD proposes to amend Schedule B to the NASD ByLaws to correct
the inaccurate descriptions of the territorial boundaries of two NASD
District Offices. The text of the proposed rule change is available at NASD and at the Commission.
II. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASD included statements concerning the purpose of and basis for the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. NASD has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
The proposed rule change would amend Schedule B to the NASD ByLaws to correct inaccurate descriptions of Districts 9 and 10. Before 1997, the New York counties of Orange, Rockland, Putnam, and Westchester were assigned to NASD's District 10 office. In late 1997, during a reorganization of the District Offices, District 11 assumed responsibility for Orange, Rockland, Putnam, and Westchester counties. However, NASD failed to amend Schedule B to reflect this change.
In 2003, NASD conducted its most recent reorganization of the
District Offices and, among other things, transferred responsibility
for the New York counties of Orange, Rockland, Putnam, and Westchester
from District 11 to District 9. After filing a rule change to Schedule
B to the NASD ByLaws to reflect the Districts' new descriptions,\6\
NASD became aware that the 1997 change was never reflected in Schedule
B, and that Schedule B still lists District 10 as being responsible for
the New York counties of Orange, Rockland, Putnam, and Westchester.
Accordingly, NASD is filing the proposed rule change to amend Schedule
B to the NASD ByLaws to accurately align these counties within District 9.
\6\ See Securities Exchange Act Release No. 48488 (September 3, 2003), 68 FR 54762 (September 12, 2003) (SRNASD2003138).
NASD believes that the proposed rule change is consistent with the
provisions of section 15A(b)(6) of the Act,\7\ which requires, among
other things, that NASD's rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the public interest.
\7\ 15 U.S.C. 78o3(b)(6).
B. SelfRegulatory Organization's Statement on Burden on Competition
NASD 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, as amended.
C. SelfRegulatory 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
The foregoing proposal has become effective pursuant to section
19(b)(3)(A)(i) of the Act,\8\ and Rule 19b4(f)(1) \9\ thereunder, in
that it constitutes a stated policy and interpretation with respect to
the meaning of an existing rule. 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.
\8\ 15 U.S.C. 78s(b)(3)(A)(i).
\9\ 17 CFR 240.19b4(f)(1).
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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 205490609.
Comments may also be submitted electronically at the following email
address: rulecomments@sec.gov. All comment letters should refer to
File No. SRNASD2003166. This file number should be included on the
subject line if email is used. To help the Commission process and review
[[Page 75299]]
comments more efficiently, comments should be sent in hardcopy or by e
mail but not by both methods. 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 the NASD. All
submissions should refer to file number SRNASD2003166 and should be submitted by January 20, 2004.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\10\
\10\ 17 CFR 200.303(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 0331948 Filed 122903; 8:45 am]
BILLING CODE 801001P
14 CFR Part 39 40 CFR Part 52 14 CFR Part 71 33 CFR Part 165 50 CFR Part 679 47 CFR Part 73 26 CFR Part 1 40 CFR Part 180 33 CFR Part 117 50 CFR Part 17 44 CFR Part 67 50 CFR Part 648 14 CFR Part 97 33 CFR Part 100 40 CFR Part 63 50 CFR Part 622 44 CFR Part 65 50 CFR Part 660 26 CFR Part 301 39 CFR Part 111 40 CFR Part 300 6 CFR Part 5 40 CFR Part 271 47 CFR Part 64 40 CFR Parts 52 and 81 50 CFR Part 665 44 CFR Part 64 10 CFR Part 50 49 CFR Part 571 47 CFR Part 76