[Federal Register Volume 65, Number 46 (Wednesday, March 8, 2000)]
[Notices]
[Pages 12310-12311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-5558]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-42481; File No. SR-NASD-00-7]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the National Association of
Securities Dealers, Inc. Relating to the Extension of Certain Nasdaq
Services and Facilities Until 6:30 P.M. Eastern Time
March 1, 2000.
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 February 29, 2000, the National Association of Securities Dealers,
Inc. (``NASD'' or ``Association''), through its wholly owned
subsidiary, The Nasdaq Stock Market, Inc. (``Nasdaq'') filed with the
Securities and Exchange Commission (``Commission'' or ``SEC'') the
proposed rule change as described in Items I, II and III below, which
Items have been prepared by Nasdaq. Nasdaq filed the proposal pursuant
to Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(6)
thereunder,\4\ which renders the proposal effective upon filing with
the
[[Page 12311]]
Commission.\5\ 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).
\4\ 17 CFR 240.19b-4(f)(6).
\5\ Nasdaq provided written notice to the Commission on February
28, 2000, that it intended to file this proposal. The Commission
agreed to waive the 5-day pre-filing notice requirement. See Rule
19b-4(f)(6)(iii). 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
Nasdaq filed the proposed rule change to extend, through October 1,
2000, its pilot program which makes available several Nasdaq services
and facilities until 6:30 p.m. Eastern Time. Nasdaq has designated this
proposal as non-controversial, and requests that the Commission waive
both the 5-day pre-filing notice requirement and the 30-day pre-
operative waiting period contained in Rule 19b-4(f)(6)(iii) under the
Act,\6\ to allow the proposal to be both effective and operative
immediately upon filing with the Commission.
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\6\ 17 CFR 240.19b-4(f)(6)(iii).
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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, Nasdaq included statements
concerning the purpose of and basis for its proposal and discussed any
comments it received regarding the proposal. 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 proposes to extend, through October 1, 2000, its after-hours
pilot program that makes available certain Nasdaq systems and
facilities until 6:30 p.m. Eastern Time.\7\ The Commission approved the
pilot on October 13, 1999. The pilot will continue to operate under the
same terms and conditions as set forth in SR-NASD-99-57.\8\
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\7\ See Securities Exchange Act Release No. 42003 (October 13,
1999), 64 FR 56554 (October 20, 1999) (SR-NASD-99-57).
\8\ Id.
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2. Statutory Basis
Nasdaq believes that the proposal is consistent with the provisions
of Section 15A(b)(6) of the Act \9\ 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, and processing
information with respect to, and facilitating transactions in
securities.
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\9\ 15 U.S.C. 78o-3(b)(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 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
Because the foregoing proposed rule change does not:
(i) Significantly affect the protection of investors or the public
interest;
(ii) Impose any significant burden on competition; and
(iii) Become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \10\ and
rule 19b-4(f)(6) thereunder.\11\ 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.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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Nasdaq has requested that the Commission accelerate the operative
date. The Commission finds good cause to designate the proposal to
become immediately operative upon filing, because such designation is
consistent with the protection of investors and the public interest.
Acceleration of the operative date will allow Nasdaq's after-hours
pilot to operate without interruption through October 1, 2000, thereby
allowing Nasdaq to continue to make available services and facilities
that increase the transparency and oversight of trading taking place
outside of traditional market hours. For these reasons, the Commission
finds good cause to waive the 5-day pre-filing requirement, and to
designate that the proposal become operative immediately.\12\
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\12\ In reviewing this rule, the Commission has considered the
proposed rule's impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
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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 proposal 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 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-00-07 and should be
submitted by March 29, 2000.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-5558 Filed 3-7-00; 8:45 am]
BILLING CODE 8010-01-M