[Federal Register Volume 62, Number 98 (Wednesday, May 21, 1997)]
[Notices]
[Pages 27818-27819]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13227]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38618; File No. SR-NASD-97-36]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by National Association of
Securities Dealers, Inc. Relating to Redesignation of a Rule Number
May 12, 1997.
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 May 7,
1997, the National Association of Securities Dealers, Inc. (``NASD'' or
``Association'') 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
[[Page 27819]]
have been prepared by the NASD. The NASD has designated this proposal
as one concerned solely with the administration of the organization
under Sec. 19(b)(3)(A)(iii) of the Act, which renders the rule
effective upon the Commission's receipt of this filing. 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
The NASD is proposing to redesignate Rule 4623 that was approved by
the SEC in Securities Exchange Act Release No. 38360 (March 4, 1997)
with respect to Rule Filing SR-NASD-97-15, titled ``Penalty Bids and
Syndicate Covering Transactions,'' as Rule 4624.
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 self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Section 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 SEC approved, effective March 4 and 14, 1997, amendments to the
NASD rules regarding Corporate Financing, the Nasdaq Stock Market,
Inc., and the OTC Bulletin Board that are designed to assist members in
complying with SEC Regulation M.\1\ The NASD is proposing to change the
rule number of Rule 4623, that was approved by the SEC in Securities
Exchange Act Release No. 38360 (March 4, 1997) with respect to Rule
Filing SR-NASD-97-15, titled ``Penalty Bids and Syndicate Covering
Transactions,'' to Rule 4624. Rule 4623 was previously approved by the
SEC in connection with SR-NASD-96-43 to designate a rule related to
``Electronic Communications Networks'' in connection with the Order
Execution Rules.\2\
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\1\ Securities Exchange Act Release No. 38360 (March 4, 1997);
Securities Exchange Act Release No. 38399 (March 14, 1997).
\2\ Securities Exchange Act Release No. 38156 (January 10,
1997).
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2. Statutory Basis
The NASD believes that the proposed rule change is consistent with
the provisions of Section 15A(b)(2) of the Act in that the proposed
rule change will enforce and facilitate compliance by NASD members with
the Securities Exchange Act Rules, in addition to compliance with the
rules of the Association.
B. Self-Regulatory Organization's Statement on Burden on Competition
NASD Regulation 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, as amended.
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 concerns the
administration of the organization in that it renumbers a rule, the
rule change becomes effective upon filing pursuant to Section
19(b)(3)(A)(iii) of the Act and Rule 19b-4(e) thereunder. In
particular, the Commission believes the rule change makes a technical
and clarifying change to an existing NASD rule. Accordingly, it neither
significantly affects the protection of investors of the public
interest and does not impose any significant burden on competition. At
any time within 60 days of the filing of a rule change pursuant to
Section 19(b)(3)(A) of the Act, the Commission may summarily abrogate
the 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 submissions
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 maybe 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 June 11, 1997.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\3\
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\3\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-13227 Filed 5-20-97; 8:45 am]
BILLING CODE 8010-01-M
