[Federal Register: August 14, 2003 (Volume 68, Number 157)]
[Notices]
[Page 48656]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14au03-101]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-48305; File No. SR-NASD-2003-99]
Self-Regulatory Organizations; Order Granting Approval of
Proposed Rule Change by the National Association of Securities Dealers,
Inc. To Amend Rule 6260 Regarding New Issue Notification Procedures for
TRACE-Eligible Securities
August 8, 2003.
On June 19, 2003, the National Association of Securities Dealers,
Inc. (``NASD'') filed with the Securities and Exchange Commission
(``SEC'' or ``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 amend Rule 6260 of NASD's
Trade Reporting and Compliance Engine (``TRACE'') rules. Specifically,
NASD is proposing to amend Rule 6260(a) and (b) to require members to
provide additional, descriptive information in the notice that is sent
to NASD that identifies the basic terms of a new TRACE-eligible
security (``new issue notification''), and to provide the information
required in Rule 6260(b) by email or facsimile. The proposal requires
the managing underwriter of any newly issued TRACE-eligible security to
provide to the TRACE Operations Center information, as determined by
NASD, that is required to determine if a TRACE-eligible security must
be disseminated under Rule 6250 (e.g., size of issue and rating).
Notice of the proposed rule change, including a discussion of the
proposal in greater detail, was published for comment in the Federal
Register on July 8, 2003.\3\ The Commission received no comments
regarding the proposal.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 48113 (June 30, 2003),
68 FR 40727.
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After careful consideration, the Commission finds that the proposed
rule change is consistent with the Act and the rules and regulations
promulgated thereunder applicable to a registered securities
association and, in particular, with the requirements of Section
15A(b)(6) of the Act.\4\ Specifically, the Commission finds that
approval of the proposed rule change is consistent with Section
15A(b)(6) of the Act in that it is 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.\5\
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\4\ 15 U.S.C. 78o-3(b)(6).
\5\ In approving this proposed rule change, the Commission has
considered the proposal's impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
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The Commission believes that requiring NASD members to provide
additional information about new TRACE-eligible securities is necessary
for NASD to determine if those new securities are subject to
dissemination, and that requiring that new issue information be
provided by email or facsimile will provide NASD with written records
about TRACE-eligible securities. The Commission also believes that the
proposed rule change will improve the operation of TRACE which provides
price transparency and provides regulators with heightened capabilities
to regulate and provide surveillance of the debt securities markets to
prevent fraudulent and manipulative acts and practices. For the reasons
discussed above, the Commission finds that the proposal is consistent
with the Act and the rules and regulations thereunder.
It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\6\ that the proposed rule change (SR-NASD-2003-99), be, and hereby
is, approved.
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\6\ Id.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-20769 Filed 8-13-03; 8:45 am]
BILLING CODE 8010-01-P