[Federal Register Volume 61, Number 13 (Friday, January 19, 1996)]
[Notices]
[Page 1419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-541]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36698; File No. SR-NASD-95-51]
Self-Regulatory Organizations; Order Approving Proposed Rule
Change by National Association of Securities Dealers, Inc. Regarding
Rearranging of Rules and a New Rule Numbering System for The NASD
Manual
January 11, 1996.
On November 3, 1995, the National Association of Securities
Dealers, Inc. (``NASD'' or ``Association'') filed a proposed rule
change 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\ The proposed
rule change rearranges the current NASD Manual by renumbering the Rules
of the Association.
\1\ 15 U.S.C. 78s(b)(1)
\2\ 17 CFR 240.19b-4
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Notice of proposed rule change, together with the substance of the
proposal as initially filed, was provided by issuance of a Commission
release (Securities Exchange Act Release No. 36517, November 27, 1995)
and by publication in the Federal Register (60 FR 62116, December 4,
1995). No comment letters were received. This order approves the
proposed rule change.
The NASD Manual currently is arranged with multiple rule sections
with each section of rules subsequently indexed in various ways. This
rule change is a non-substantive reorganization of the existing Rules.
All Rules in the NASD Manual, including not only the current Rules of
Fair Practice, but also such specialized Rules as the PORTAL Rules,
Nasdaq Rules, Code of Arbitration Procedure, and so forth, have been
numbered consecutively throughout the Manual and considered together as
``Rules.'' In addition, a common numbering and naming scheme for
subdivisions within a Rule has been implemented.
The NASD proposes to make the rule change effective no later than
six months from the date of approval, although it anticipates an
effective date no later than May 1, 1996.\3\ The NASD will provide
notice to its membership of the definite effective date by way of
publication in the Notice to Members.\4\ In the interim period between
the date of approval and the effective date of the revised Rules, any
proposed rule changes by the NASD will include the old rule language
and number, with a footnote which will indicate the new rule language
and number. Any future NASD rule proposals will also refer to the
Commission's approval order and the planned effective date of the
revision. This should minimize any confusion to the industry and to the
public.
\3\ See Letter from Suzanne E. Rothwell, Associate General
Counsel, NASD, to Mark P. Barracca, Branch Chief, Over-the-Counter
Regulation, Division of Market Regulation, SEC, dated January 4,
1996 (``Amendment No. 1'').
\4\ In addition, the NASD will file a proposed rule change,
pursuant to Section 19(b)(3)(A) of the Act, with the Commission to
ensure proper notice in the Federal Register of the definitive
effective date.
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The Commission finds that the proposed rule change is consistent
with the provisions of Section 15A(b)(6) of the Act \5\ because the
rule change will protect investors and the public interest by
simplifying the layout of the NASD Manual. There will now be a more
logical progression of the Rules within the Manual. This in turn will
assist NASD members and non-members in utilizing the Manual.
\5\ 15 U.S.C. 78o-3.
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It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that File No. SR-NASD-95-51 be, and hereby is, approved.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-541 Filed 1-18-96; 8:45 am]
BILLING CODE 8010-01-M
