Escolar Documentos
Profissional Documentos
Cultura Documentos
VerDate Aug<31>2005 15:27 May 15, 2007 Jkt 211001 PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 E:\FR\FM\16MYN1.SGM 16MYN1
Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Notices 27605
same pricing flexibility that floor-based (B) Institute proceedings to determine submitted on or before June 6, 2007.
whether the proposed rule change
4 See Supplementary Material .06 to ISE Rule 716.
5 See
should be disapproved.
Securities Exchange Act Release No. 51666
(May 9, 2005), 70 FR 25631 (May 13, 2005) (SR–
ISE–2003–07). 7 15 U.S.C. 78f(b).
6 See Penny Pilot Order, supra note 3. 8 15 U.S.C. 78f(b)(5).
VerDate Aug<31>2005 15:27 May 15, 2007 Jkt 211001 PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 E:\FR\FM\16MYN1.SGM 16MYN1
27606 Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Notices
For the Commission, by the Division of On February 7, 2007, NASD filed 2000. BUSINESS CONDUCT
Market Regulation, pursuant to delegated Amendment No. 1 to the proposed rule
authority.9 * * * * *
change, which also responded to the
Florence E. Harmon, comments.5 The Commission received 2300. Transactions with Customers
Deputy Secretary. one comment in response to * * * * *
[FR Doc. E7–9365 Filed 5–15–07; 8:45 am] Amendment No. 1.6 All of the
2342. SIPC Information
BILLING CODE 8010–01–P comments received by the Commission
regarding the proposed rule change are All members, except those members:
available on the Commission’s Internet (a) that pursuant to Section 3(a)(2)(A)(i)
SECURITIES AND EXCHANGE Web site (http://www.sec.gov/rules/ through (iii) of the Securities Investor
COMMISSION sro.shtml). On April 19, 2007, NASD Protection Act of 1970 (SIPA) are
[Release No. 34–55737; File No. SR–NASD– filed Amendment No. 2 to the proposed excluded from membership in the
2006–124] rule change, which also responded to Securities Investor Protection
the comment on the proposed rule Corporation (SIPC) and that are not
Self-Regulatory Organizations; change as modified by Amendment No. SIPC members; and (b) whose business
National Association of Securities 1.7 consists exclusively of the sale of
Dealers, Inc.; Notice of Filing of investments that are ineligible for SIPC
Amendment Nos. 1 and 2 to, and Order NASD filed the proposed rule change protection, shall advise all new
Granting Accelerated Approval of, a to adopt proposed NASD Rule 2342, customers, in writing, at the opening of
Proposed Rule Change as Modified by which would require NASD members to an account, that they may obtain
Amendment Nos. 1 and 2 To Require advise all new customers, in writing, at information about SIPC, including the
the Provision of Certain Information the opening of an account, and all SIPC brochure, by contacting SIPC, and
About the Securities Investor customers at least once each year that also shall provide the Web site address
Protection Corporation to Customers they may obtain information about and telephone number of SIPC. In
SIPC, including the SIPC brochure, by addition, such members shall provide
May 10, 2007. contacting SIPC, and to provide such all customers with the same
I. Introduction customers with SIPC’s telephone information, in writing, at least once
number and Web site address. each year. In cases where both an
Pursuant to Section 19(b)(1) of the Amendment No. 1 proposed that firms introducing firm and clearing firm
Securities Exchange Act of 1934 (the that are excluded from membership in service an account, the firms may assign
‘‘Act’’) 1 and Rule 19b–4 thereunder,2 these requirements to one of the firms.
SIPC pursuant to Section 3(a)(2)(A)(i)
notice is hereby given that the National
through (iii) of the Securities Investor III. Summary of Comments on the
Association of Securities Dealers, Inc.
Protection Act of 1970 (‘‘SIPA’’) and Proposal and Amendment No. 1
(‘‘NASD’’) has filed Amendment Nos. 1
that are not SIPC members be exempt
and 2 to the proposed rule change, Two commenters supported the
from the requirements of proposed Rule
which, as amended, would adopt proposed rule change. One believed that
proposed NASD Rule 2342 to require 2342. Amendment No. 2 proposed to
the disclosure required by proposed
NASD members, except those excluded exempt firms whose business consists
NASD Rule 2342 would remind clients
from membership in the Securities exclusively of the sale of investments
that they are buying a product that is
Investor Protection Corporation that are ineligible for SIPC protection not directly underwritten or supported
(‘‘SIPC’’) or who sell only investments from the requirements of proposed Rule by a bank or covered by the Federal
ineligible for SIPC protection, to provide 2342. Below is the text of the proposed Deposit Insurance Corporation
new customers, and all customers rule change, as modified by Amendment (‘‘FDIC’’).8 Another believed that public
annually, with certain information Nos. 1 and 2. Proposed new language is customers would benefit from broader
about SIPC. This order provides notice in italics. dissemination of information about
of and solicits comments from SIPC.9
interested persons on the proposed rule December 20, 2006 (‘‘Ferrara 1’’); e-mail from Philip Seven commenters generally opposed
C. McMorrow, President, Cantella Co., Inc. dated the proposed rule change.10 Five
change as modified by Amendment Nos. December 21, 2006 (‘‘McMorrow’’); e-mail from E.C.
1 and 2, and approves the proposed rule Blitz dated December 22, 2006 (‘‘Blitz’’); letter from questioned the need for disseminating
change as amended on an accelerated Kenneth M. Cherrier, Chief Compliance Officer, the information that would be required
basis. Fintegra, to Nancy M. Morris, Secretary, by proposed Rule 2342.11 Two
Commission, dated December 22, 2006 (‘‘Cherrier’’); suggested that the proposed rule be
II. Description of the Proposal e-mail from Michael A. Pagano, 1st Global Capital
revised to mandate that firms include on
Corp. dated December 22, 2006 (‘‘Pagano’’); e-mail
NASD filed the proposed rule change from Christine E. Saccente, Vice President, Chief their Web sites a link to SIPC’s Web
with the Securities and Exchange Compliance Officer, Operations Manager, Maxwell site.12 One questioned whether
Commission (the ‘‘Commission’’) on Noll Inc. dated December 27, 2006 (‘‘Saccente’’); e- investors need, or are interested in,
mail from William R. Sykes, Sykes Financial
November 9, 2006. The Commission Services LLC dated December 28, 2006 (‘‘Sykes’’);
information about SIPC, suggested that
published the proposal for comment in e-mail from John Harris, Chief Executive Officer, investors are unlikely to read the
the Federal Register on December 13, BondMart, Inc. dated December 30, 2006 (‘‘Harris’’); proposed disclosure, and questioned the
2006.3 The Commission received nine letter from Noland Cheng, Chairman, SIFMA cost of implementing it.13 Another
Operations Committee, to Nancy M. Morris,
comments in response to the Notice.4 Secretary, Commission, dated January 12, 2007
stated that customers will be made
(‘‘Cheng’’).
cprice-sewell on PROD1PC66 with NOTICES
3 See Securities Exchange Act Release No. 54871 Compliance Officer, Panattoni Securities, Inc. dated Saccente; Sykes; Harris.
11 See McMorrow; Blitz; Pagano; Saccente; Sykes;
(December 5, 2006), 71 FR 74970 (December 13, February 13, 2007 (‘‘Ferrara 2’’)
2006) (SR–NASD–2006–124) (‘‘Notice’’). 7 Amendment No. 2 further modified the text of Harris.
4 See e-mail from Frederick G. Ferrara, Chief 12 See Pagano; Saccente.
proposed Rule 2342 and proposed changing the
Compliance Office, Panattoni Securities, Inc. dated effective date of the rule change. 13 See Pagano.
VerDate Aug<31>2005 15:27 May 15, 2007 Jkt 211001 PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 E:\FR\FM\16MYN1.SGM 16MYN1