Post by jannikki on Nov 9, 2005 18:47:10 GMT -4
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52679; File No. SR–NASD–
2005–112]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing of
Proposed Rule Change Relating to
Amendments To Rule 3360 To Expand
Short-Interest Reporting To OTC
Equity Securities
October 26, 2005.
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
September 20, 2005, the National
Association of Securities Dealers, Inc.
(‘‘NASD’’) filed with the Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by NASD. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASD is proposing to amend Rule
3360 to expand the short interest
reporting requirements to over-thecounter
(‘‘OTC’’) equity securities.
Below is the text of the proposed rule
change. Proposed new language is in
italics; proposed deletions are in
brackets.
* * * * *
3360 Short-Interest Reporting
(a) Each member shall maintain a
record of total ‘‘short’’ positions in all
customer and proprietary firm accounts
in OTC Equity Securities, securities
included in The Nasdaq Stock Market,
and in each other security listed on a
registered national securities exchange
and not otherwise reported to another
self-regulatory organization and shall
regularly report such information to
NASD in such a manner as may be
prescribed by NASD. [For the purposes
of this rule, the term ‘‘customer’’
includes a broker/dealer.] Reports shall
be made as of the close of the settlement
date designated by NASD. Reports shall
be received by NASD no later than the
second business day after the reporting
settlement date designated by NASD.
(b) For purposes of this Rule[,]:
(1) ‘‘short’’ positions to be reported
are those resulting from ‘‘short sales’’ as
that term is defined in SEC Rule 200 of
Regulation SHO, with the exception of
positions that meet the requirements of
Subsections (e)(1), (6), (7), (8), and (10)
of SEC Rule 10a–1 adopted under the
Act[.];
(2) the term ‘‘customer’’ includes a
broker-dealer; and
(3) the term ‘‘OTC Equity Securities’’
shall mean any equity security that is
not listed on The Nasdaq Stock Market
or a national securities exchange.
* * * * *
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
NASD is proposing to amend Rule
3360, Short-Interest Reporting, to
require that members maintain and
report on a monthly basis total short
positions in OTC equity securities in all
customer and proprietary firm
accounts.3 Currently, Rule 3360(a)
requires members to maintain a record
of total short positions 4 in all customer5
and proprietary firm accounts in Nasdaq
securities (and listed securities if not
reported to another self-regulatory
organization (‘‘SRO’’)) and requires
members to report such information to
66876 Federal Register / Vol. 70, No. 212 / Thursday, November 3, 2005 / Notices
6 15 U.S.C. 78o–3(b)(6).
7 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
NASD on a monthly basis. NASD
believes that expanding the monthly
short interest reporting requirements to
OTC equity securities will increase the
information available to public investors
and other interested parties related to
trading in OTC equity securities.
Accordingly, NASD proposes to amend
Rule 3360(a) to require that members
maintain and report to NASD short sale
positions for OTC equity securities. For
purposes of the proposed rule change,
OTC equity securities would be defined
as any equity security that is not listed
on The Nasdaq Stock Market or a
national securities exchange.
NASD will announce the effective
date of the proposed rule change in a
Notice to Members to be published no
later than 60 days following
Commission approval. In recognition of
the technological and systems changes
the proposed rule change may require,
the effective date will be 90 days
following publication of the Notice to
Members announcing Commission
approval.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,6 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 the proposed rule
change will increase the information
available to public investors and other
interested parties related to trading in
OTC equity securities.
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.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
A. By order approve such proposed
rule change, or
B. Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
The Commission notes that the NASD
is proposing an implementation period
for proposed NASD Rule 3360.
Specifically, the Commission notes that
the NASD is proposing that it will
announce the effective date of the
proposed rule change in a Notice to
Members to be published no later than
60 days following Commission approval
and that the effective date of the
proposed rule change will be 90 days
following publication of the Notice to
Members announcing Commission
approval. The Commission specifically
requests comment regarding whether
this implementation period could be
shorter.
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 rulecomments@
sec.gov. Please include File
Number SR–NASD–2005–112 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–NASD–2005–112. 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, 100 F Street, NE., Washington,
DC 20549. Copies of such filing also will
be available for inspection and copying
at the principal office of NASD. 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 the
File Number SR–NASD–2005–112 and
should be submitted on or before
November 25,2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.7
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6086 Filed 11–2–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52692; File No. SR–NASD–
2005–064]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Order Granting Approval
of Proposed Rule Change as Amended
by Amendment No. 1 Relating to the
Publication of Decisions Issued by the
National Adjudicatory Council
Pursuant to NASD Rule 1015
October 28, 2005.
I. Introduction
On May 12, 2005, 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 NASD Interpretive Material
8310–2, ‘‘Release of Disciplinary and
Other Information Through the Public
Disclosure Program’’ (‘‘IM–8310–2’’) to
authorize the NASD to release to the
public information with respect to any
decision issued by the National
Adjudicatory Council (‘‘NAC’’) pursuant
to NASD Rule 1015, ‘‘Review of
VerDate Aug<31>2005 18:27 Nov 02, 2005 Jkt 208001 PO 00000 Frm 00061 Fmt 4703 Sfmt 4703 E:\FR\FM\03NON1.SGM 03NON1
COMMISSION
[Release No. 34–52679; File No. SR–NASD–
2005–112]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing of
Proposed Rule Change Relating to
Amendments To Rule 3360 To Expand
Short-Interest Reporting To OTC
Equity Securities
October 26, 2005.
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
September 20, 2005, the National
Association of Securities Dealers, Inc.
(‘‘NASD’’) filed with the Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by NASD. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASD is proposing to amend Rule
3360 to expand the short interest
reporting requirements to over-thecounter
(‘‘OTC’’) equity securities.
Below is the text of the proposed rule
change. Proposed new language is in
italics; proposed deletions are in
brackets.
* * * * *
3360 Short-Interest Reporting
(a) Each member shall maintain a
record of total ‘‘short’’ positions in all
customer and proprietary firm accounts
in OTC Equity Securities, securities
included in The Nasdaq Stock Market,
and in each other security listed on a
registered national securities exchange
and not otherwise reported to another
self-regulatory organization and shall
regularly report such information to
NASD in such a manner as may be
prescribed by NASD. [For the purposes
of this rule, the term ‘‘customer’’
includes a broker/dealer.] Reports shall
be made as of the close of the settlement
date designated by NASD. Reports shall
be received by NASD no later than the
second business day after the reporting
settlement date designated by NASD.
(b) For purposes of this Rule[,]:
(1) ‘‘short’’ positions to be reported
are those resulting from ‘‘short sales’’ as
that term is defined in SEC Rule 200 of
Regulation SHO, with the exception of
positions that meet the requirements of
Subsections (e)(1), (6), (7), (8), and (10)
of SEC Rule 10a–1 adopted under the
Act[.];
(2) the term ‘‘customer’’ includes a
broker-dealer; and
(3) the term ‘‘OTC Equity Securities’’
shall mean any equity security that is
not listed on The Nasdaq Stock Market
or a national securities exchange.
* * * * *
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
NASD is proposing to amend Rule
3360, Short-Interest Reporting, to
require that members maintain and
report on a monthly basis total short
positions in OTC equity securities in all
customer and proprietary firm
accounts.3 Currently, Rule 3360(a)
requires members to maintain a record
of total short positions 4 in all customer5
and proprietary firm accounts in Nasdaq
securities (and listed securities if not
reported to another self-regulatory
organization (‘‘SRO’’)) and requires
members to report such information to
66876 Federal Register / Vol. 70, No. 212 / Thursday, November 3, 2005 / Notices
6 15 U.S.C. 78o–3(b)(6).
7 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
NASD on a monthly basis. NASD
believes that expanding the monthly
short interest reporting requirements to
OTC equity securities will increase the
information available to public investors
and other interested parties related to
trading in OTC equity securities.
Accordingly, NASD proposes to amend
Rule 3360(a) to require that members
maintain and report to NASD short sale
positions for OTC equity securities. For
purposes of the proposed rule change,
OTC equity securities would be defined
as any equity security that is not listed
on The Nasdaq Stock Market or a
national securities exchange.
NASD will announce the effective
date of the proposed rule change in a
Notice to Members to be published no
later than 60 days following
Commission approval. In recognition of
the technological and systems changes
the proposed rule change may require,
the effective date will be 90 days
following publication of the Notice to
Members announcing Commission
approval.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,6 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 the proposed rule
change will increase the information
available to public investors and other
interested parties related to trading in
OTC equity securities.
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.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
A. By order approve such proposed
rule change, or
B. Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
The Commission notes that the NASD
is proposing an implementation period
for proposed NASD Rule 3360.
Specifically, the Commission notes that
the NASD is proposing that it will
announce the effective date of the
proposed rule change in a Notice to
Members to be published no later than
60 days following Commission approval
and that the effective date of the
proposed rule change will be 90 days
following publication of the Notice to
Members announcing Commission
approval. The Commission specifically
requests comment regarding whether
this implementation period could be
shorter.
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 rulecomments@
sec.gov. Please include File
Number SR–NASD–2005–112 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–NASD–2005–112. 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, 100 F Street, NE., Washington,
DC 20549. Copies of such filing also will
be available for inspection and copying
at the principal office of NASD. 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 the
File Number SR–NASD–2005–112 and
should be submitted on or before
November 25,2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.7
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6086 Filed 11–2–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52692; File No. SR–NASD–
2005–064]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Order Granting Approval
of Proposed Rule Change as Amended
by Amendment No. 1 Relating to the
Publication of Decisions Issued by the
National Adjudicatory Council
Pursuant to NASD Rule 1015
October 28, 2005.
I. Introduction
On May 12, 2005, 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 NASD Interpretive Material
8310–2, ‘‘Release of Disciplinary and
Other Information Through the Public
Disclosure Program’’ (‘‘IM–8310–2’’) to
authorize the NASD to release to the
public information with respect to any
decision issued by the National
Adjudicatory Council (‘‘NAC’’) pursuant
to NASD Rule 1015, ‘‘Review of
VerDate Aug<31>2005 18:27 Nov 02, 2005 Jkt 208001 PO 00000 Frm 00061 Fmt 4703 Sfmt 4703 E:\FR\FM\03NON1.SGM 03NON1