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]

Download as PDF 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 (http://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 (http://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 VerDate Aug<31>2005 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 25MRN1 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 (http://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 (http://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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

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 (http://
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 (http://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\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12) .
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-5964 Filed 3-24-08; 8:45 am]
BILLING CODE 8011-01-P