[Federal Register: May 2, 2006 (Volume 71, Number 84)]
[Notices]
[Page 25875-25876]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02my06-105]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53720; File No. SR-NASD-2006-051]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Expand the Maximum Single Order Share Amount in Nasdaq's
INET Facility
April 25, 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 April 19, 2006, the National Association of Securities Dealers,
Inc.(``NASD''), through its subsidiary, the Nasdaq Stock Market, Inc.
(``Nasdaq''), submitted to the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by Nasdaq. Nasdaq filed the
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\
which renders it 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq proposes to expand the single order maximum share amount in
its INET Facility to 999,999 shares. Nasdaq will implement the proposed
rule change immediately. The text of the proposed rule change is below.
Proposed new language is in italics; deletions are in [brackets].\4\
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\4\ Changes are marked to the rule text that appears in the
electronic NASD Manual found at http://www.nasd.com. Prior to the
date when The NASDAQ Stock Market LLC (``NASDAQ LLC'') commences
operations, NASDAQ LLC will file a conforming change to the rules of
NASDAQ LLC approved in Securities Exchange Act Release No. 53128
(January 13, 2006).
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4953. Order Entry Parameters
(a) INET System Orders
(1)-(3) No Change.
(4) Any order in whole shares up to 999,999 shares may be entered
into the System for normal execution processing.
* * * * *
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
Nasdaq's INET Facility currently operates using a 200,000 share
maximum single order limit for orders sent to the New York Stock
Exchange's DOT system. For all other orders, INET applies a 999,999
share single order maximum share amount. Nasdaq proposes to codify for
its INET Facility a maximum single order share amount standard, for all
orders, of 999,999 shares, the same share number maximum already in
place in the Nasdaq Market Center.\5\ The proposed rule change will
ensure that the INET system provides an adequate and uniform capability
to accept large-size orders as well as reduce technological complexity
for Nasdaq and users of its systems by enhancing the degree of
uniformity among single order share maximums across its systems.\6\
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\5\ See NASD Rule 4706(d)(1).
\6\ The single order maximum share number limit for Nasdaq's
Brut Facility shall remain 1,000,099 shares. See NASD Rule 4903(f).
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2. Statutory Basis
Nasdaq believes that the proposed rule change is consistent with
Section 15A of the Act,\7\ in general, and furthers the objectives of
Section 15A(b)(6) of the Act,\8\ in particular, in that it is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, remove impediments to 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. 78o-3.
\8\ 15 U.S.C. 78o-3(6).
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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
[[Page 25876]]
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
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Nasdaq has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \9\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\10\ Because the foregoing proposed rule change: (1) Does
not significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) does not become operative for 30 days from the date of filing,
or such shorter time as the Commission may designate if consistent with
the protection of investors and the public interest, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
and Rule 19b-4(f)(6) thereunder. As required under Rule 19b-
4(f)(6)(iii), Nasdaq provided the Commission with written notice of its
intent to file the proposed rule change at least five business days
prior to filing the proposal with the Commission or such shorter period
as designated by the Commission. Nasdaq has requested that the
Commission waive 30-day delayed operational date provisions contained
in the above rule, based upon a representation that the proposed rule
filing would ensure that INET users have the beneficial capability to
enter larger size orders as soon as practicable. For this reason, the
Commission designates the proposal to be effective and operative upon
filing with the Commission.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
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At any time within 60 days of the filing of such 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-NASD-2006-051 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC, 20549-1090.
All submissions should refer to File Number SR-NASD-2006-051. 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 office 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-NASD-2006-051 and should be submitted on or before May
23, 2006.
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. E6-6556 Filed 5-1-06; 8:45 am]
BILLING CODE 8010-01-P