[Federal Register Volume 59, Number 209 (Monday, October 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26826]
[[Page Unknown]]
[Federal Register: October 31, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34884; File No. SR-NASD-94-53]
Self-Regulatory Organizations; Notice and Immediate Effectiveness
of Proposed Rule Change by National Association of Securities Dealers,
Inc. Relating to Transmittal of Forms T
October 24, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on October
3, 1994, the National Association of Securities Dealers, Inc. (``NASD''
or ``Association'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') a proposed rule change providing for
technical amendments to the NASD's transaction reporting rules.
The NASD has designated this proposal as constituting a stated
policy, practice or interpretation with respect to the administration
and enforcement of existing reporting rules, permitting it to become
effective upon filing pursuant to Section 19(b)(3)(A)(i) of the Act and
subparagraph (e) of Rule 19b-4 under the Act. The Commission is
publishing this notice to solicit comments from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The NASD is proposing a rule change that effects a technical
amendment to the existing transaction reporting rules. The amendatory
language specifies that transaction data reported via Form T shall be
sent to the NASD's Market Surveillance Department of Rockville,
Maryland. Specifically, the reporting provisions of Parts X, XI, XII
and XIII of Schedule D, and Section 2 of Schedule G to the NASD By-Laws
are amended to reflect that transaction data reported via Form T shall
be reported to the NASD's Market Surveillance Department in Rockville,
Maryland, rather than to the Market Operations Department in Trumbull,
Connecticut.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the 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. The 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
On August 11, 1994, the Commission approved a series of parallel
changes to the NASD rules governing transaction reporting in Nasdaq
National Market securities, Nasdaq SmallCapSM
securities, Nasdaq convertible debt securities, over-the-counter equity
securities, and exchange-listed securities eligible for inclusion in
the Consolidated Quotations Service.\1\ Essentially, these amendments
eliminated the manually prepared Form T as the principal means of
reporting transactions in the foregoing categories of securities when
such transactions are executed outside normal market hours (9:30 a.m.
to 4:00 p.m. E.T.) or outside the hours of the Automated Confirmation
Transaction Service (``ACT'') (currently 9:00 a.m. to 5:15 p.m. E.T.).
Instead, the covered transactions will be reported electronically
through ACT either on trade date or the next business day.
Nevertheless, the amended rules still permit the use of Form T in the
event of a system outage or other unusual circumstance that precludes
electronic entry of trade reports by a member firm.
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\1\See Securities Exchange Act Release No. 34527 (August 11,
1994); 59 FR 42613 (August 18, 1994).
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The sole purpose of this rule change is to specify that the Forms T
be directed to the NASD's Market Surveillance Department in Rockville,
Maryland rather than the Market Operations Department in Trumbull,
Connecticut. The Market Surveillance Department compiles and utilizes
Form T data for regulatory purposes. At this point, there is no longer
any operational reason for the Market Operations Department to be the
initial recipient of Form T data.
The NASD believes that this proposed rule is consistent with
Section 15A(b)(2) and (b)(6) of the Act. Section 15A(b)(2) requires
that a national securities association be appropriately organized and
have the capacity to enforce member firms' compliance with all
applicable provisions of the Act as well as its own rules. Section
15A(b)(6) requires, among other things, that the association's rules be
designed to prevent fraudulent and manipulative acts and practices,
promote just and equitable principles of trade and, in general, to
protect investors and the public interest. The instant rule change is
consistent with these statutory provisions because it will expedite the
receipt of Form T transaction data, which is collected and analyzed for
regulatory purposes, by the department responsible for that regulatory
function. Hence, the end result is greater efficiency in the processing
of Forms T by the NASD's Market Surveillance staff.
B. Self-Regulatory Organization's Statement on Burden on Competition
The NASD believes that the proposed rule change will not 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
Comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(i) of the Act and subparagraph (e) of Securities Exchange
Act Rule 19b-4 because the proposal has been filed as constituting a
stated policy, practice or interpretation with respect to the meaning,
administration, or enforcement of an existing rule. 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. Persons making written submission
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
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 the file number in the caption
above and should be submitted by November 21, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\2\
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\2\17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 94-26826 Filed 10-28-94; 8:45 am]
BILLING CODE 8010-01-M
