Self-Regulatory Organizations: Financial Industry Regulatory Authority, Inc.; Notice of Filing of Proposed Rule Change Relating to Amendments to the Codes of Arbitration Procedure To Permit Submissions to Arbitrators After a Case Has Closed Under Limited Circumstances, 15815-15817 [E8-5964]
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Federal Register / Vol. 73, No. 58 / Tuesday, March 25, 2008 / Notices
the date of filing.9 However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protections of
investors and the public interest.10 The
Exchange has requested that the
Commission waive the 30-day operative
date, so that the Exchange’s rules may
be updated as soon as possible to reflect
the clean-up changes proposed in this
filing. The Commission believes that the
proposed rule change does not raise any
new regulatory issues. For this reason,
the Commission designates the proposal
to be operative upon filing with the
Commission.11
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 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:
mstockstill on PROD1PC66 with NOTICES
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–CBOE–2008–28 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–CBOE–2008–28. 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
9 Id.
10 17
CFR 240.19b–4(f)(6)(iii).
purposes 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).
11 For
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18:33 Mar 24, 2008
Jkt 214001
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, 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 the CBOE. 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–CBOE–
2008–28 and should be submitted on or
before April 15, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–5918 Filed 3–24–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57525; File No. SR–FINRA–
2008–005]
Self-Regulatory Organizations:
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Proposed Rule Change Relating to
Amendments to the Codes of
Arbitration Procedure To Permit
Submissions to Arbitrators After a
Case Has Closed Under Limited
Circumstances
March 18, 2008.
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 February
7, 2008, 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. The
Commission is publishing this notice to
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
15815
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 Rule 12905 of the
NASD Code of Arbitration Procedure for
Customer Disputes (‘‘Customer Code’’)
and Rule 13905 of the NASD Code of
Arbitration Procedure for Industry
Disputes (‘‘Industry Code’’) to permit
submissions to arbitrators after a case
has closed only under the following
circumstances: (1) As ordered by a
court; (2) at the request of any party
within 30 days of service of an award or
notice that a matter has been closed, for
ministerial matters; or (3) if all parties
agree and submit documents within 30
days of service of an award or notice
that a matter has been closed. Below is
the text of the proposed rule change. All
the text is new.
*
*
*
*
*
12905. Submissions After a Case Has
Closed
(a) Parties may not submit documents
to arbitrator(s) in cases that have been
closed except under the following
limited circumstances:
• As ordered by a court;
• At the request of any party within
30 days of service of an award or notice
that a matter has been closed, for
ministerial matters such as
miscalculation of figures, mistake in the
description of any person, thing or
property referred to in the award, or if
the award is imperfect in a matter of
form that does not affect the decision on
the merits; or
• If all parties agree and submit
documents within 30 days of (1) service
of an award or (2) notice that a matter
has been closed.
(b) Parties must make requests under
this rule in writing to the Director and
must include the basis relied on under
this rule for the request. The Director
will forward the documents, along with
any responses from other parties, to the
arbitrators. Unless the arbitrators rule
within 20 days after the Director
forwards the documents to the
arbitrators, the request shall be deemed
denied.
13905. Submissions After a Case Has
Closed
(a) Parties may not submit documents
to arbitrator(s) in cases that have been
closed except under the following
limited circumstances:
• As ordered by a court;
• At the request of any party within
30 days of service of an award or notice
that a matter has been closed, for
E:\FR\FM\25MRN1.SGM
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15816
Federal Register / Vol. 73, No. 58 / Tuesday, March 25, 2008 / Notices
ministerial matters such as
miscalculation of figures, mistake in the
description of any person, thing or
property referred to in the award, or if
the award is imperfect in a matter of
form that does not affect the decision on
the merits; or
• If all parties agree and submit
documents within 30 days of (1) service
of an award or (2) notice that a matter
has been closed.
(b) Parties must make requests under
this rule in writing to the Director and
must include the basis relied on under
this rule for the request. The Director
will forward the documents, along with
any responses from other parties, to the
arbitrators. Unless the arbitrators rule
within 20 days after the Director
forwards the documents to the
arbitrators, the request shall be deemed
denied.
*
*
*
*
*
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 these 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
aspects of such statements.
mstockstill on PROD1PC66 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
FINRA is proposing to amend its
Customer Code and Industry Code to
adopt new rules to permit submissions
to arbitrators after a case has closed only
under limited circumstances. The
proposed rule change would reduce
attorneys’ fees and other costs
associated with responding to such
submissions and would support the
finality of arbitration awards issued in
the forum.
FINRA staff receives several requests
each year from parties to submit
documents to arbitrators (the panel) in
cases that have been closed for long
periods of time. Parties file these
requests for a number of reasons, such
as to obtain expungement relief that a
party failed to request during the life of
the case, to correct what a party
perceives to be a mistake in the award,
or to request that forum fee allocations
be changed.
VerDate Aug<31>2005
18:33 Mar 24, 2008
Jkt 214001
Currently, the Customer and Industry
Codes do not contain deadlines for such
submissions and, indeed, do not address
the matter. Therefore, staff forwards to
panels the requests, along with any
responses from other parties, regardless
of the time that has elapsed since the
case was closed. The panels rarely
determine to reopen a matter.
A case is deemed closed on the date
FINRA serves an award or sends to the
parties a letter notifying them that a case
is closed (for example, by settlement).
The absence of deadlines in the
Customer and Industry Codes for
submissions in closed cases can cause
numerous problems. For example,
parties might submit documents to the
panel years after cases have closed.
Also, arbitrators might have resigned
from the roster or died by the time such
submissions are made. Finally, parties
might incur substantial attorneys’ fees
and other costs in responding to closedcase submissions.
Potential legal issues are also present.
Some states empower arbitrators to
correct technical or mathematical errors
in their awards, but only for a short
period of time following the award’s
issuance, and courts may remand a
matter to the original arbitrators when
they vacate awards in whole or in part.3
Beyond these examples, however, the
law generally provides that the
arbitrators’ authority ends when the
arbitrators render their decisions.
To address the problems associated
with submissions in closed cases,
FINRA is proposing to permit
submissions to arbitrators after a case
has closed only under the following
limited circumstances:
• As ordered by a court;
• At the request of any party within
30 days of service of an award or notice
that a matter has been closed, for
ministerial matters such as
miscalculation of figures, mistake in the
description of any person, thing or
property referred to in the award, or if
the award is imperfect in a matter of
form that does not affect the decision on
the merits; or
• If all parties agree and submit
documents within 30 days of (1) service
of an award or (2) notice that a matter
has been closed.
The 30-day limit is in line with time
limits allowed under many state laws 4
and would ensure that a majority of the
arbitrators that served on the panel will
be available to review the submissions.
3 See
N.Y. CPLR 7509, 7511 (McKinney 2008).
see also, CAL. CODE CIV. PROC. 1284
(2007); FLA. STAT. 682.10 (2007); TEX. CIV. PRAC.
& REM. 171.054 (2007); VA. CODE ANN. 8.01–
581.08 (2007).
4 Id.;
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
Under the second alternative, request by
only one party, FINRA would follow its
normal procedure of soliciting a
response from the other parties before
forwarding the request to the panel.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,5 which
requires, among other things, that
FINRA rules must 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. The proposed rule
change would reduce the costs
associated with responding to
submissions in closed cases and support
the finality of arbitration awards issued
in the forum.
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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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:
5 15
U.S.C. 78o–3(b)(6).
E:\FR\FM\25MRN1.SGM
25MRN1
Federal Register / Vol. 73, No. 58 / Tuesday, March 25, 2008 / Notices
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–2008–005 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.
mstockstill on PROD1PC66 with NOTICES
All submissions should refer to File
Number SR–FINRA–2008–005. 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–2008–005 and
should be submitted on or before April
15, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–5964 Filed 3–24–08; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57529; File No. SR–FINRA–
2008–009]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Proposed Rule Change to the Code of
Arbitration Procedure for Customer
Disputes and the Code of Arbitration
Procedure for Industry Disputes To
Amend the Chairperson Eligibility
Requirements
March 19, 2008.
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 Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) (f/k/a National Association
of Securities Dealers, Inc. (‘‘NASD’’))
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
on March 12, 2008, the proposed rule
change as described in Items I, II, and
III below, which Items have been
substantially prepared by FINRA
Dispute Resolution. 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 Dispute Resolution is
proposing to amend the chairperson
eligibility requirements under NASD
Rule 12400(c) of the Code of Arbitration
Procedure for Customer Disputes
(‘‘Customer Code’’) and NASD Rule
13400(c) of the Code of Arbitration
Procedure for Industry Disputes
(‘‘Industry Code’’). Below is the text of
the proposed rule change. Proposed
deletions are in brackets.
*
*
*
*
*
12400. Neutral List Selection System
and Arbitrator Rosters
(a)–(b) No change.
(c) Eligibility for Chairperson Roster
In customer disputes, chairpersons
must be public arbitrators. Arbitrators
are eligible for the chairperson roster if
they have completed chairperson
training provided by NASD [or have
substantially equivalent training or
experience] and:
[Remainder of the rule unchanged.]
*
*
*
*
*
BILLING CODE 8011–01–P
1 15
6 17
CFR 200.30–3(a)(12) .
VerDate Aug<31>2005
18:33 Mar 24, 2008
2 17
Jkt 214001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00100
Fmt 4703
Sfmt 4703
15817
13400. Neutral List Selection System
and Arbitrator Rosters
(a)–(b) No change.
(c) Eligibility for Chairperson Roster
Arbitrators are eligible to serve as
chairperson of panels submitted for
arbitration under the Code if they have
completed chairpersons training
provided by NASD [or have
substantially equivalent training or
experience] and:
[Remainder of the rule unchanged.]
*
*
*
*
*
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 these 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
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
FINRA 3 proposes to amend the
chairperson eligibility requirements
under Rule 12400(c) of the Customer
Code and Rule 13400(c) of the Industry
Code.
On January 24, 2007, the SEC
approved the NASD Codes of
Arbitration Procedure for Customer and
Industry Disputes (collectively referred
to as ‘‘Codes’’).4 The Codes reorganized
the dispute resolution rules into
separate procedural codes, simplified
the language of the old NASD Code of
Arbitration Procedure, codified current
practices, and implemented several
substantive changes. One such
substantive change involved improving
the arbitrator selection process by
creating and maintaining a new roster of
arbitrators who are qualified to serve as
chairpersons.
Under the Codes, arbitrators are
eligible for the chairperson roster if they
have completed chairperson training
3 Although some of the events referenced in this
rule filing occurred prior to the formation of FINRA,
the rule filing refers to FINRA throughout for
simplicity.
4 See Securities Exchange Act Release No. 55158
(January 24, 2007); 72 FR 4574 (January 31, 2007)
(File Nos. SR–NASD–2003–158 and SR–NASD–
2004–011). The new Codes became effective on
April 16, 2007.
E:\FR\FM\25MRN1.SGM
25MRN1
]]>Agencies
[Federal Register Volume 73, Number 58 (Tuesday, March 25, 2008)]
[Notices]
[Pages 15815-15817]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-5964]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57525; File No. SR-FINRA-2008-005]
Self-Regulatory Organizations: Financial Industry Regulatory
Authority, Inc.; Notice of Filing of Proposed Rule Change Relating to
Amendments to the Codes of Arbitration Procedure To Permit Submissions
to Arbitrators After a Case Has Closed Under Limited Circumstances
March 18, 2008.
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 February 7, 2008, 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.
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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing Rule 12905 of the NASD Code of Arbitration
Procedure for Customer Disputes (``Customer Code'') and Rule 13905 of
the NASD Code of Arbitration Procedure for Industry Disputes
(``Industry Code'') to permit submissions to arbitrators after a case
has closed only under the following circumstances: (1) As ordered by a
court; (2) at the request of any party within 30 days of service of an
award or notice that a matter has been closed, for ministerial matters;
or (3) if all parties agree and submit documents within 30 days of
service of an award or notice that a matter has been closed. Below is
the text of the proposed rule change. All the text is new.
* * * * *
12905. Submissions After a Case Has Closed
(a) Parties may not submit documents to arbitrator(s) in cases that
have been closed except under the following limited circumstances:
As ordered by a court;
At the request of any party within 30 days of service of
an award or notice that a matter has been closed, for ministerial
matters such as miscalculation of figures, mistake in the description
of any person, thing or property referred to in the award, or if the
award is imperfect in a matter of form that does not affect the
decision on the merits; or
If all parties agree and submit documents within 30 days
of (1) service of an award or (2) notice that a matter has been closed.
(b) Parties must make requests under this rule in writing to the
Director and must include the basis relied on under this rule for the
request. The Director will forward the documents, along with any
responses from other parties, to the arbitrators. Unless the
arbitrators rule within 20 days after the Director forwards the
documents to the arbitrators, the request shall be deemed denied.
13905. Submissions After a Case Has Closed
(a) Parties may not submit documents to arbitrator(s) in cases that
have been closed except under the following limited circumstances:
As ordered by a court;
At the request of any party within 30 days of service of
an award or notice that a matter has been closed, for
[[Page 15816]]
ministerial matters such as miscalculation of figures, mistake in the
description of any person, thing or property referred to in the award,
or if the award is imperfect in a matter of form that does not affect
the decision on the merits; or
If all parties agree and submit documents within 30 days
of (1) service of an award or (2) notice that a matter has been closed.
(b) Parties must make requests under this rule in writing to the
Director and must include the basis relied on under this rule for the
request. The Director will forward the documents, along with any
responses from other parties, to the arbitrators. Unless the
arbitrators rule within 20 days after the Director forwards the
documents to the arbitrators, the request shall be deemed denied.
* * * * *
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 these 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 aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
FINRA is proposing to amend its Customer Code and Industry Code to
adopt new rules to permit submissions to arbitrators after a case has
closed only under limited circumstances. The proposed rule change would
reduce attorneys' fees and other costs associated with responding to
such submissions and would support the finality of arbitration awards
issued in the forum.
FINRA staff receives several requests each year from parties to
submit documents to arbitrators (the panel) in cases that have been
closed for long periods of time. Parties file these requests for a
number of reasons, such as to obtain expungement relief that a party
failed to request during the life of the case, to correct what a party
perceives to be a mistake in the award, or to request that forum fee
allocations be changed.
Currently, the Customer and Industry Codes do not contain deadlines
for such submissions and, indeed, do not address the matter. Therefore,
staff forwards to panels the requests, along with any responses from
other parties, regardless of the time that has elapsed since the case
was closed. The panels rarely determine to reopen a matter.
A case is deemed closed on the date FINRA serves an award or sends
to the parties a letter notifying them that a case is closed (for
example, by settlement). The absence of deadlines in the Customer and
Industry Codes for submissions in closed cases can cause numerous
problems. For example, parties might submit documents to the panel
years after cases have closed. Also, arbitrators might have resigned
from the roster or died by the time such submissions are made. Finally,
parties might incur substantial attorneys' fees and other costs in
responding to closed-case submissions.
Potential legal issues are also present. Some states empower
arbitrators to correct technical or mathematical errors in their
awards, but only for a short period of time following the award's
issuance, and courts may remand a matter to the original arbitrators
when they vacate awards in whole or in part.\3\ Beyond these examples,
however, the law generally provides that the arbitrators' authority
ends when the arbitrators render their decisions.
---------------------------------------------------------------------------
\3\ See N.Y. CPLR 7509, 7511 (McKinney 2008).
---------------------------------------------------------------------------
To address the problems associated with submissions in closed
cases, FINRA is proposing to permit submissions to arbitrators after a
case has closed only under the following limited circumstances:
As ordered by a court;
At the request of any party within 30 days of service of
an award or notice that a matter has been closed, for ministerial
matters such as miscalculation of figures, mistake in the description
of any person, thing or property referred to in the award, or if the
award is imperfect in a matter of form that does not affect the
decision on the merits; or
If all parties agree and submit documents within 30 days
of (1) service of an award or (2) notice that a matter has been closed.
The 30-day limit is in line with time limits allowed under many
state laws \4\ and would ensure that a majority of the arbitrators that
served on the panel will be available to review the submissions. Under
the second alternative, request by only one party, FINRA would follow
its normal procedure of soliciting a response from the other parties
before forwarding the request to the panel.
---------------------------------------------------------------------------
\4\ Id.; see also, CAL. CODE CIV. PROC. 1284 (2007); FLA. STAT.
682.10 (2007); TEX. CIV. PRAC. & REM. 171.054 (2007); VA. CODE ANN.
8.01-581.08 (2007).
---------------------------------------------------------------------------
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\5\ which requires, among
other things, that FINRA rules must 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. The proposed rule change would reduce the costs
associated with responding to submissions in closed cases and support
the finality of arbitration awards issued in the forum.
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\5\ 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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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:
[[Page 15817]]
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-2008-005 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-2008-005. 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-2008-005
and should be submitted on or before April 15, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12) .
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-5964 Filed 3-24-08; 8:45 am]
BILLING CODE 8011-01-P
