

[Federal Register: April 27, 2006 (Volume 71, Number 81)]
[Notices]               
[Page 24878-24879]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27ap06-84]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53687; File No. SR-NASD-2006-015]

 
Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Order Approving Proposed Rule Change To Establish the 
Nasdaq Halt Cross

April 20, 2006.
    On January 31, 2006, the National Association of Securities 
Dealers, Inc. (``NASD''), through its subsidiary, The Nasdaq Stock 
Market, Inc. (``Nasdaq''), filed with the Securities and Exchange 
Commission (``Commission'') a proposed rule change pursuant to section 
19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 
19b-4 thereunder,\2\ to establish the Nasdaq Halt Cross. On February 
16, 2006, Nasdaq filed Amendment No. 1 to the proposed rule change. On 
March 6, 2006, Nasdaq filed Amendment No. 2 to the proposed rule 
change. The proposed rule change, as amended by Amendment Nos. 1 and 2, 
was published for comment in the Federal Register on March 21, 2006.\3\ 
The Commission received no comments on the proposal. On April 17, 2006, 
Nasdaq filed Amendment No. 3 to the proposed rule change to make NASD 
Rule 4703(b)(2)(B) parallel to NASD Rule 4703(a)(2)(B).\4\ This order 
approves the proposed rule change, as amended.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 53488 (March 15, 
2006), 71 FR 14272.
    \4\ Amendment No. 3 was a technical amendment and therefore not 
subject to notice and comment.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities

[[Page 24879]]

association,\5\ the requirements of section 15A of the Act,\6\ in 
general, and section 15A(b)(6) of the Act,\7\ in particular, which 
requires, among other things, that the rules of a national securities 
association be designed to facilitate transactions in securities and to 
remove impediments to and perfect the mechanism of a free and open 
market. The Commission believes that the proposed rule change, as 
amended, should provide useful information to market participants and 
increase transparency and order interaction at the opening after a 
trading halt. In addition, the Commission believes that the proposed 
rule change, as amended, should result in the public dissemination of 
information that more accurately reflects the trading in a particular 
security at the open after a trading halt. The Commission notes that 
the Halt Cross is based on the Nasdaq opening cross, which the 
Commission approved in a prior filing.\8\
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    \5\ In approving the proposed rule change, the Commission has 
considered its impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78o-3.
    \7\ 15 U.S.C. 78o-3(b)(6).
    \8\ See Securities Exchange Act Release No. 50405 (September 16, 
2004), 69 FR 57118 (September 23, 2004).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-NASD-2006-015), as amended, 
be, and it hereby is, approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-6317 Filed 4-26-06; 8:45 am]

BILLING CODE 8010-01-P
