Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay Implementation of Certain Rule Changes Approved in SR-NASD-2005-146, 67326-67328 [E7-23113]
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Federal Register / Vol. 72, No. 228 / Wednesday, November 28, 2007 / Notices
and retain a written notification from
each bank in which it has a Special
Reserve Bank Account to evidence
bank’s acknowledgement that assets
deposited in the Account are being held
by the bank for the exclusive benefit of
the broker-dealer’s customers. As stated
previously, 344 broker-dealers are
presently fully-subject to Rule 15c3–3.
In addition, 140 broker-dealers operate
in accordance with the exemption
provided in paragraph (k)(2)(i) which
also requires that a broker-dealer
maintain a Special Reserve Bank
Account. The staff estimates that of the
total broker-dealers that must comply
with this rule, only 25%, or 121 ((344
+ 140) × .25) must obtain 1 new letter
each year (either because the brokerdealer changed the type of business it
does and became subject to either
paragraph (e)(3) or (k)(2)(i) or simply
because the broker-dealer established a
new Special Reserve Bank Account).
The staff estimates that it would take a
broker-dealer approximately 1 hour to
obtain this written notification from a
bank regarding a Special Reserve Bank
Account because the language in these
letters is largely standardized.
Therefore, Commission staff estimates
that broker-dealers will spend
approximately 121 hours each year to
obtain these written notifications.
In addition, a broker-dealer must
immediately notify the Commission and
its designated examining authority if it
fails to make a required deposit to its
Special Reserve Bank Account.
Commission staff estimates that brokerdealers file approximately 65 such
notices per year. Broker-dealers would
require approximately 30 minutes, on
average, to file such a notice. Therefore,
Commission staff estimates that brokerdealers would spend a total of
approximately 33 hours each year to
comply with the notice requirement of
Rule 15c3–3.
Finally, a broker-dealer that effects
transactions in securities futures
products (‘‘SFPs’’) for customers 1 also
will have paperwork burdens associated
with the requirement in paragraph (o) of
Rule 15c3–3 to make a record of each
change in account type.2 More
specifically, a broker-dealer that
changes the type of account in which a
customer’s SFPs are held must create a
record of each change in account type
that includes the name of the customer,
ebenthall on PRODPC61 with NOTICES
1 Broker-dealers
that do not engage in an SFP
business with or for customers are not affected by
this section of Rule 15c3–3. Broker-dealers that
engage in an SFP business must also register with
the CFTC as a futures commission merchant
(‘‘FCM’’). As of January 31, 2007 there were 64
broker-dealers that were also registered as FCMs.
2 17 CFR 240.15c3–3(o)(3)(i).
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15:18 Nov 27, 2007
Jkt 214001
the account number, the date the brokerdealer received the customer’s request
to change the account type, and the date
the change in account type took place.
As of December 31, 2006, broker-dealers
that were also registered as futures
commission merchants (‘‘FCMs’’)
reported that they maintained
38,815,092 customer accounts. The staff
estimates that 8% of these customers
may engage in SFP transactions
(38,815,092 accounts × 8% = 3,105,207).
Further, the staff estimates that 20% per
year may change account type. Thus,
broker-dealers may be required to create
this record for up to 621,041 accounts
(3,105,207 accounts × 20%). The staff
believes that it will take approximately
3 minutes to create each record.3 Thus,
the total annual burden associated with
creating a record of change of account
type will be 31,052 hours (621,041
accounts × (3min/60min)).
Consequently, the staff estimates that
the total annual burden hours associated
with Rule 15c3–3 would be
approximately 71,156 hours (39,950
hours + 121 hours + 33 hours + 31,052
hours).
In addition, a broker-dealer that
effects transactions in SFPs for
customers also will have an annualized
cost burden associated with the
requirements in paragraph (o) of Rule
15c3–3 to (1) provide each customer
that plans to effect SFP transactions
with a disclosure document containing
certain information,4 and (2) send each
SFP customer notification of any change
of account type.5 Approximately 8% of
the accounts held by broker-dealers that
are also registered as FCMs, or 3,105,207
accounts, may engage in SFP
transactions. The staff estimates that the
cost of printing and sending each
disclosure document will be
approximately $.12 per document sent.6
Thus, the staff estimates that the cost of
printing and sending disclosure
documents would be approximately
$372,625 (3,105,207 accounts × $.12). In
addition, approximately 621,041
accounts (3,105,207 accounts × 20%)
may change account type per year
requiring that broker-dealers provide
notification to those customers. The
staff estimates that the cost of sending
this notification to customers will be
about $74,525 (621,041 accounts × $.12).
Consequently, the staff estimates that
3 In fact, the staff believes that most firms will
have this process automated. To the extent that no
person need be involved in the generation of this
record, the burden will be very minimal.
4 17 CFR 240.15c3–3(o)(2).
5 17 CFR 240.15c3–3(o)(3)(ii).
6 Based on past conversations with industry
representatives regarding other rule changes as
adjusted to account for inflation.
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the total annual cost associated with
Rule 15c3–3 would be $447,150
($372,625 + $74,525).
Records required to be created and
notices required to be filed with the
Commission pursuant to Rule 15c3–3
must be maintained in accordance with
Rule 17a–4 (17 CFR 240.17a–4). The
collection of information is mandatory
and the information required to be
provided to the Commission pursuant to
these Rules are deemed confidential,
notwithstanding any other provision of
law under Section 24(b) of the
Securities Exchange Act of 1934 (15
U.S.C. 78x(b)) and Section 552(b)(3)(B)
of the Freedom of Information Act (5
U.S.C. 552(b)(3)(B)).
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Comments should be directed to (i)
Desk Officer for the Securities and
Exchange Commission, Office of
Information and Regulatory Affairs,
Office of Management and Budget,
Room 10102, New Executive Office
Building, Washington, DC 20503 or by
sending an e-mail to:
Alexander_T._Hunt@omb.eop.gov; and
(ii) R. Corey Booth, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Shirley
Martinson, 6432 General Green Way,
Alexandria, VA 22312 or send an e-mail
to: PRA_Mailbox@sec.gov. Comments
must be submitted within 30 days of
this notice.
Dated: November 19, 2007.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–23111 Filed 11–27–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56822; File No. SR–FINRA–
2007–023]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Delay Implementation
of Certain Rule Changes Approved in
SR–NASD–2005–146
November 20, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
E:\FR\FM\28NON1.SGM
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Federal Register / Vol. 72, No. 228 / Wednesday, November 28, 2007 / Notices
16, 2007, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) (f/k/a
National Association of Securities
Dealers, Inc. (‘‘NASD’’)) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been
substantially prepared by FINRA.
FINRA filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder,4 which renders it effective
upon filing with the Commission.5 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
FINRA is proposing to establish
January 14, 2008 as the final
implementation date of the rule changes
approved in SR–NASD–2005–146.6
There are no new changes to the text of
FINRA rules.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA 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 those
statements may be examined at the
places specified in Item IV below.
FINRA has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On February 26, 2007, the
Commission approved SR–NASD–2005–
146, which, among other things,
amended IM–2110–2 7 to expand the
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 FINRA has requested that the Commission
waive the 5 day pre-filing notice and 30-day
operative delay required by Rule 19b–4(f)(6)(iii), 17
CFR 240.19b–4(f)(6)(iii). See discussion infra
Section III.
6 See Securities Exchange Act Release No. 55351
(February 26, 2007), 72 FR 9810 (March 5, 2007)
(order approving SR–NASD–2005–146). See also
NASD Notice to Members 07–19 (April 2007)
(announcing the effective date of the rule changes
in SR–NASD–2005–146).
7 Currently, IM–2110–2 generally prohibits a
member from trading for its own account in an
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4 17
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15:18 Nov 27, 2007
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scope to apply to OTC equity securities
and modify the minimum priceimprovement standards for securities
trading in decimals. The amendments
relating to OTC equity securities and the
minimum price-improvement
provisions are scheduled to become
effective on November 26, 2007.8
On June 27, 2007, FINRA filed a
proposed rule change (SR–NASD–2007–
041) to amend the minimum priceimprovement standards in IM–2110–2
that were approved as part of SR–
NASD–2005–146.9 FINRA has proposed
to implement the changes in SR–NASD–
2007–041 on the final implementation
date of SR–NASD–2005–146. SR–
NASD–2007–041 remains pending at
the Commission.
To provide additional time for the
Commission to consider and act upon
the proposed changes in SR–NASD–
2007–041 and, if SR–NASD–2007–041
is approved, allow firms sufficient time
to make the required technological
changes to implement the proposed
changes in SR–NASD–2007–041, FINRA
is proposing that the final
implementation date of SR–NASD–
2005–146 currently scheduled for
November 26, 2007 be delayed until
January 14, 2008.10 In doing so, the
proposed minimum price-improvement
provisions in SR–NASD–2007–041, if
approved, would become effective on
January 14, 2008. FINRA has filed the
proposed rule change for immediate
effectiveness. FINRA proposes to
implement the proposed rule change as
described herein.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,11 which
requires, among other things, that
FINRA rules be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, and, in general, to
protect investors and the public interest.
FINRA believes that the proposed rule
exchange-listed security at a price that is equal to
or better than an unexecuted customer limit order
in that security, unless the member immediately
thereafter executes the customer limit order at the
price at which it traded for its own account or
better.
8 See Securities Exchange Act Release No. 56103
(July 19, 2007), 72 FR 40918 (July 25, 2007) (notice
of filing and immediate effectiveness of SR–NASD–
2007–039). See also Member Alert, dated June 20,
2007 (announcing a revised implementation date of
certain rule changes approved in SR–NASD–2005–
146 until November 26, 2007).
9 See File No. SR–NASD–2007–041.
10 Certain other rule changes that were approved
as part of SR–NASD–2005–146 became effective on
July 26, 2007 and are not effected by this proposed
rule change. See supra note 8.
11 15 U.S.C. 78o–3(b)(6).
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67327
change is consistent with the provisions
of the Act noted above because
extending the final implementation date
of SR–NASD–2005–146 will ensure that
the Commission has adequate time to
act on the proposed changes in SR–
NASD–2007–041 and, if SR–NASD–
2007–041 is approved, ensure firms
have sufficient time to make the
necessary changes to comply with the
new price-improvement standards.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA 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.
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 does not: (1) Significantly affect
the protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for thirty days from the date
on which it was filed, or such shorter
time as the Commission may designate
if consistent with the protection of
investors and the public interest, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6) 13 thereunder.14
A proposed rule change filed under
Commission Rule 19b–4(f)(6) 15
normally does not become operative
prior to thirty days after the date of
filing. FINRA requests that the
Commission waive the 30-day operative
delay, as specified in Rule 19b–
4(f)(6)(iii), and designate the proposed
rule change to become operative
immediately to allow FINRA to delay
the implementation date of SR–NASD–
2005–146 currently scheduled for
November 26, 2007 until January 14,
2008. The Commission believes that
waiving the 30-day operative delay is
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
14 FINRA has requested that the Commission
waive the requirement that it provide the
Commission written notice of its intent to file the
proposed rule change, along with a brief description
and text of the proposed rule change, at least five
business days prior to the date on which FINRA
filed the proposed rule change pursuant to Rule
19b–4(f)(6)(iii). The Commission hereby grants this
request. See 17 CFR 240.19b–4(f)(6)(iii).
15 17 CFR 240.19b–4(f)(6).
13 17
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67328
Federal Register / Vol. 72, No. 228 / Wednesday, November 28, 2007 / Notices
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of FINRA. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly.
All submissions should refer to File
Number SR–FINRA–2007–023 and
should be submitted on or before
December 19, 2007.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–23113 Filed 11–27–07; 8:45 am]
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–FINRA–2007–023 on the
subject line.
ebenthall on PRODPC61 with NOTICES
consistent with the protection of
investors and the public interest
because if SR–NASD–2007–041 is
approved by the Commission, it would
allow firms sufficient time to make the
required technological changes. For
these reasons, the Commission
designates the proposed rule change as
operative upon filing.16
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 the furtherance of the
purposes of the Act.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–FINRA–2007–023. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). 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
16 For the purposes only of waiving the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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15:18 Nov 27, 2007
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BILLING CODE 8011–01–P
[Release No. 34–56832; File No. SR–
NYSEArca–02007–102]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and Order
Granting Accelerated Approval of
Proposed Rule Change to Trade Units
of the United States 12 Month Oil Fund,
LP and the United States 12 Month
Natural Gas Fund, LP Pursuant to
Unlisted Trading Privileges
November 21, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
2, 2007, NYSE Arca, Inc. (the
‘‘Exchange’’), through its wholly owned
subsidiary, NYSE Arca Equities, Inc.
(‘‘NYSE Arca Equities’’), filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been
substantially prepared by the Exchange.
This order provides notice of the
proposed rule change and approves the
proposed rule change on an accelerated
basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to trade
pursuant to unlisted trading privileges
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
(‘‘UTP’’) units (‘‘Units’’) of the United
States 12 Month Oil Fund, LP (‘‘12
Month Oil Fund’’) and the United States
12 Month Natural Gas Fund, LP (‘‘12
Month Natural Gas Fund’’) (each, a
‘‘Partnership,’’ and collectively, the
‘‘Partnerships’’). The text of the
proposed rule change is available at the
Exchange’s principal office, the
Commission’s Public Reference Room,
and https://www.nyse.com.
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
Exchange 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 III below. The
Exchange 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
1. Purpose
Under NYSE Arca Equities Rule
8.300, which sets forth criteria to permit
the trading of Partnership Units 3 either
by listing or pursuant to UTP, the
Exchange proposes to trade pursuant to
UTP the Units of each Partnership. The
Commission has approved the listing
and trading of such Units on the
American Stock Exchange LLC
(‘‘Amex’’).4
Ownership of each Partnership Unit
represents a fractional undivided unit of
a beneficial interest in the net assets of
the applicable Partnership.5 The net
assets of each of the Partnerships will
consist primarily of investments in
futures contracts for crude oil, heating
oil, gasoline, natural gas, and other
petroleum-based fuels that are traded on
3 NYSE Arca Equities Rule 8.300(b)(2) defines
Partnership Units as securities issued by a
partnership that invests in any combination of
futures contracts, options on futures contracts,
forward contracts, commodities, and/or securities
and that are redeemed daily in specified aggregate
amounts at net asset value (‘‘NAV’’).
4 See Securities Exchange Act Release No. 56831
(November 21, 2007) (SR–Amex–2007–98) (granting
approval to list and trade the Units on Amex);
Securities Exchange Act Release No. 56719 (October
29, 2007), 72 FR 62277 (November 2, 2007) (SR–
Amex–2007–98) (providing notice of Amex’s
proposal to list and trade the Units) (‘‘Amex
Notice’’).
5 Each Partnership is a commodity pool that will
issue Units that may be purchased and sold on the
Exchange.
E:\FR\FM\28NON1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 228 (Wednesday, November 28, 2007)]
[Notices]
[Pages 67326-67328]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23113]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56822; File No. SR-FINRA-2007-023]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Delay Implementation of Certain Rule Changes
Approved in SR-NASD-2005-146
November 20, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on November
[[Page 67327]]
16, 2007, Financial Industry Regulatory Authority, Inc. (``FINRA'') (f/
k/a National Association of Securities Dealers, Inc. (``NASD'')) filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II and III below, which
Items have been substantially prepared by FINRA. FINRA filed the
proposal as a ``non-controversial'' proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6)
thereunder,\4\ which renders it effective upon filing with the
Commission.\5\ The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
\5\ FINRA has requested that the Commission waive the 5 day pre-
filing notice and 30-day operative delay required by Rule 19b-
4(f)(6)(iii), 17 CFR 240.19b-4(f)(6)(iii). See discussion infra
Section III.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to establish January 14, 2008 as the final
implementation date of the rule changes approved in SR-NASD-2005-
146.\6\ There are no new changes to the text of FINRA rules.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 55351 (February 26,
2007), 72 FR 9810 (March 5, 2007) (order approving SR-NASD-2005-
146). See also NASD Notice to Members 07-19 (April 2007) (announcing
the effective date of the rule changes in SR-NASD-2005-146).
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA 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 those statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in Sections A,
B, and C below, of the most significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
On February 26, 2007, the Commission approved SR-NASD-2005-146,
which, among other things, amended IM-2110-2 \7\ to expand the scope to
apply to OTC equity securities and modify the minimum price-improvement
standards for securities trading in decimals. The amendments relating
to OTC equity securities and the minimum price-improvement provisions
are scheduled to become effective on November 26, 2007.\8\
---------------------------------------------------------------------------
\7\ Currently, IM-2110-2 generally prohibits a member from
trading for its own account in an exchange-listed security at a
price that is equal to or better than an unexecuted customer limit
order in that security, unless the member immediately thereafter
executes the customer limit order at the price at which it traded
for its own account or better.
\8\ See Securities Exchange Act Release No. 56103 (July 19,
2007), 72 FR 40918 (July 25, 2007) (notice of filing and immediate
effectiveness of SR-NASD-2007-039). See also Member Alert, dated
June 20, 2007 (announcing a revised implementation date of certain
rule changes approved in SR-NASD-2005-146 until November 26, 2007).
---------------------------------------------------------------------------
On June 27, 2007, FINRA filed a proposed rule change (SR-NASD-2007-
041) to amend the minimum price-improvement standards in IM-2110-2 that
were approved as part of SR-NASD-2005-146.\9\ FINRA has proposed to
implement the changes in SR-NASD-2007-041 on the final implementation
date of SR-NASD-2005-146. SR-NASD-2007-041 remains pending at the
Commission.
---------------------------------------------------------------------------
\9\ See File No. SR-NASD-2007-041.
---------------------------------------------------------------------------
To provide additional time for the Commission to consider and act
upon the proposed changes in SR-NASD-2007-041 and, if SR-NASD-2007-041
is approved, allow firms sufficient time to make the required
technological changes to implement the proposed changes in SR-NASD-
2007-041, FINRA is proposing that the final implementation date of SR-
NASD-2005-146 currently scheduled for November 26, 2007 be delayed
until January 14, 2008.\10\ In doing so, the proposed minimum price-
improvement provisions in SR-NASD-2007-041, if approved, would become
effective on January 14, 2008. FINRA has filed the proposed rule change
for immediate effectiveness. FINRA proposes to implement the proposed
rule change as described herein.
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\10\ Certain other rule changes that were approved as part of
SR-NASD-2005-146 became effective on July 26, 2007 and are not
effected by this proposed rule change. See supra note 8.
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2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\11\ which requires, among
other things, that FINRA rules be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes that the proposed rule change is
consistent with the provisions of the Act noted above because extending
the final implementation date of SR-NASD-2005-146 will ensure that the
Commission has adequate time to act on the proposed changes in SR-NASD-
2007-041 and, if SR-NASD-2007-041 is approved, ensure firms have
sufficient time to make the necessary changes to comply with the new
price-improvement standards.
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\11\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA 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.
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 does not: (1)
Significantly affect the protection of investors or the public
interest; (2) impose any significant burden on competition; and (3)
become operative for thirty days from the date on which it was filed,
or such shorter time as the Commission may designate if consistent with
the protection of investors and the public interest, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6) \13\ thereunder.\14\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
\14\ FINRA has requested that the Commission waive the
requirement that it provide the Commission written notice of its
intent to file the proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date on which FINRA filed the proposed
rule change pursuant to Rule 19b-4(f)(6)(iii). The Commission hereby
grants this request. See 17 CFR 240.19b-4(f)(6)(iii).
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A proposed rule change filed under Commission Rule 19b-4(f)(6) \15\
normally does not become operative prior to thirty days after the date
of filing. FINRA requests that the Commission waive the 30-day
operative delay, as specified in Rule 19b-4(f)(6)(iii), and designate
the proposed rule change to become operative immediately to allow FINRA
to delay the implementation date of SR-NASD-2005-146 currently
scheduled for November 26, 2007 until January 14, 2008. The Commission
believes that waiving the 30-day operative delay is
[[Page 67328]]
consistent with the protection of investors and the public interest
because if SR-NASD-2007-041 is approved by the Commission, it would
allow firms sufficient time to make the required technological changes.
For these reasons, the Commission designates the proposed rule change
as operative upon filing.\16\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ For the purposes only of waiving the operative date of this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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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 the 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, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-FINRA-2007-023 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2007-023. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). 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, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of FINRA. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly.
All submissions should refer to File Number SR-FINRA-2007-023 and
should be submitted on or before December 19, 2007.
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\17\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-23113 Filed 11-27-07; 8:45 am]
BILLING CODE 8011-01-P
