Securities and Exchange Commission
Document Headings Document headings vary by document type but may contain the following: the agency or agencies that issued and signed a document the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to the agency docket number / agency internal file number the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions See the Document Drafting Handbook for more details. Securities and Exchange Commission [Release No. 34-45998; File No. SR-NASD-2001-66] I. Introduction On October 4, 2001, the National Association of Securities Dealers, Inc. (“NASD” or “Association”), through its subsidiary The Nasdaq Stock Market, Inc. (“Nasdaq”), submitted to the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”), [ 1 ] and Rule 19b-4 thereunder, [ 2 ] a proposed rule change relating to display requirements when using reserve size in the Nasdaq National Market Execution System (“NNMS” or “SuperSOES”). On October 23, 2001 and October 29, 2001, NASD submitted Amendment Nos. 1 and 2 to the proposed rule change, respectively. [ 3 ] The proposed rule change, as amended, was published for comment in the Federal Register on November 13, 2001. [ 4 ] The Commission received 233 comment letters on the proposed rule change. [ 5 ] In addition, Nasdaq submitted two letters in response to comments. [ 6 ] This order approves the proposed rule change, as amended. II. Description of Proposal Under the NNMS, market makers are allowed to keep shares in reserve. Known as reserve size, shares kept in reserve are available for execution through SuperSOES, but are not shown to the marketplace. [ 7 ] Currently, the SuperSOES rules prohibit the use of the system's reserve size functionality unless a market maker is displaying…
Citation: 67 FR 39759
