[Federal Register: August 6, 2003 (Volume 68, Number 151)]
[Notices]
[Page 46673-46674]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06au03-126]
[[Page 46673]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-48259; File No. SR-NASD-2003-107]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the National Association of
Securities Dealers Delaying the Implementation Date of Amendments to
Article VIII (District Committees and District Nominating Committees)
of the By-Laws of NASD Regulation, Inc.
July 30, 2003.
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 July 8, 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 has
designated the proposed rule change as ``constituting a stated policy,
practice or interpretation'' under subparagraph (f)(1) of Rule 19b-4
under the Act,\3\ 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\ 17 CFR 240.19b-4(f)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NASD proposes to delay until January 1, 2004, the implementation
date of recent amendments to Article VIII (District Committees and
District Nominating Committees) of the By-Laws of NASD Regulation,
Inc.\4\ NASD filed SR-NASD-2003-55 to streamline the nomination and
election processes governing NASD District Committees and District
Nominating Committees (``Committees''), modernize communication
procedures, and improve the consistency among the Committees across all
districts. The proposed rule change would not involve changes to the
rule text.
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\4\ See Securities Exchange Act Release No. 48015 (June 11,
2003), 68 FR 35926 (June 17, 2003) (SR-NASD-2003-55) (``SR-NASD-
2003-55''). The operative date under SR-NASD-2003-55 was July 6,
2003. NASD proposes that the implementation date be delayed to
January 1, 2004, notwithstanding that this proposal inadvertently
was filed after the operative date under SR-NASD-2003-55.
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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, NASD 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. NASD 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
The purpose of the proposed rule change is to notify the Commission
and other interested parties of the delay in implementation of recent
amendments to Article VIII of the By-Laws of NASD Regulation, Inc.
(``Article VIII'') established by SR-NASD-2003-55 until January 1,
2004. On March 21, 2003, NASD filed a proposed rule change to
streamline the nomination and election processes governing District
Committees and District Nominating Committees, modernize communication
procedures, and improve the consistency among the Committees across all
districts. On June 11, 2003, the SEC published a notice of filing and
immediate effectiveness of the proposed rule change. The proposed rule
change was subject to a 30-day delayed operative period beginning on
June 6, 2003, the date NASD filed Amendment No. 3 to the File No. SR-
NASD-2003-55, and ending on July 6, 2003.
However, NASD's election cycle for District Committees and District
Nominating Committees for this year is already underway. As the
amendments to Article VIII were not effective prior to the start of
this year's election cycle, NASD is conducting these elections in
accordance with the provisions of Article VIII effective prior to the
filing of SR-NASD-2003-55. In order to avoid any confusion among
participants and to prevent any disruption in the election procedures
by adopting amendments in the middle of the election cycle, NASD
proposes to delay the implementation date of the amendments to Article
VIII until January 1, 2004.
2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act, \5\ which requires, among
other things, that NASD 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. NASD believes that delaying the implementation date of
the amendments to Article VIII of the By-Laws of NASD Regulation, Inc.
until January 1, 2004, will permit this year's Committee elections to
proceed in an orderly fashion under existing procedures. Any change to
existing procedures in the middle of the current Committee election
cycle may cause unnecessary confusion to participants and disrupt the
election process.
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\5\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory 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.
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 with respect
to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change has been filed by NASD as a stated policy,
practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule under Rule 19b-
4(f)(1) under the Act,\6\ which renders the proposal effective upon
receipt of this filing by the Commission. At any time within 60 days of
the filing of the proposed rule change, the Commission may summarily
abrogate this proposed 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.
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\6\ 17 CFR 240.19b-4(f)(1).
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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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange
[[Page 46674]]
Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 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 SR-NASD-2003-107 and should be
submitted by August 27, 2003.
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. 03-20026 Filed 8-5-03; 8:45 am]
BILLING CODE 8010-01-P