In the Matter of Harbour Intermodal, Ltd.; Order of Suspension of Trading, 34061 [08-1361]
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Federal Register / Vol. 73, No. 116 / Monday, June 16, 2008 / Notices
SECURITIES AND EXCHANGE
COMMISSION
approve the proposal on an accelerated
basis.
[File No. 500–1]
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
In the Matter of Harbour Intermodal,
Ltd.; Order of Suspension of Trading
June 12, 2008.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Harbour
Intermodal, Ltd. because it has not filed
any periodic reports since the period
ended September 30, 2002.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
company.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the abovelisted company is suspended for the
period from 9:30 a.m. EDT on June 12,
2008, through 11:59 p.m. EDT on June
25, 2008.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 08–1361 Filed 6–12–08; 12:18pm]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57935; File No. SR–FINRA–
2008–023]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Order Granting Accelerated Approval
of a Proposed Rule Change Relating to
Violations Appropriate for Disposition
Under FINRA’s Minor Rule Violation
Plan
rwilkins on PROD1PC63 with NOTICES
June 6, 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 May 27,
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 and II
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 and to
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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17:04 Jun 13, 2008
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FINRA proposes to amend NASD
Interpretive Material (‘‘IM’’) 9216 3 to
expand FINRA’s Minor Rule Violation
Plan (‘‘MRVP’’) to include violations of
options position and exercise limits and
contrary exercise advice procedures.
The text of the proposed rule change is
available at FINRA, the Commission’s
Public Reference Room, and https://
www.finra.org.
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 III 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The proposed rule change would
amend NASD IM–9216 to include in
FINRA’s MRVP violations of (1) options
position and exercise limits under
NASD Rule 2860(b)(3) and (b)(4), and
(2) contrary exercise advice procedures
under NASD Rule 2860(b)(23). NASD
Rule 9216 sets forth FINRA’s MRVP,
which allows FINRA to impose a fine of
up to $2,500 on any member or person
associated with a member for a minor
violation of the rules identified in IM–
9216 (known as ‘‘Minor Rule
Violations’’). The purpose of the MRVP
is to provide meaningful sanctions for
minor or technical violations of rules
when the initiation of a formal
disciplinary proceeding would be more
significant than warranted. Minor Rule
Violation letters also represent a useful
3 FINRA has filed with the Commission a
proposed rule change (SR–FINRA–2008–021) in
which FINRA proposes, among other things, to
adopt NASD IM–9216 as FINRA Rule 9217, without
material change. Assuming Commission approval of
this proposed rule change prior to the approval of
SR–FINRA–2008–021, FINRA will amend SR–
FINRA–2008–021, as necessary, to reflect such
approval.
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34061
tool for implementing the concept of
progressive discipline.
Inclusion of a rule in the MRVP does
not mean that all violations of that rule
should be treated as Minor Rule
Violations, and, in fact, significant
violations would not be handled under
the MRVP. Accordingly, under the
MRVP, FINRA retains the discretion to
bring full disciplinary proceedings for
any violation of a rule included in the
MRVP.
The NASD options rules contain
provisions imposing limits on the size
of an options position, and limits on the
number of options contracts that can be
exercised into shares of the underlying
security during a fixed period. To
address inadvertent violations of these
rules, due to among other things,
miscounting, technical problems, or a
misinterpretation of the position limit
calculation methodologies, that in the
judgment of FINRA do not materially
affect the market, FINRA proposes
adding violations of options position
and exercise limits as eligible for
disposition under the MRVP. Violations
of these rules deemed to have a
manipulative effect or intent would not
be treated as Minor Rule Violations.
Options issued by The Options
Clearing Corporation (i.e., exchangetraded options) have specific terms
regarding whether options that can be
settled only by delivery of the asset
underlying the option (typically an
equity security) will be automatically
exercised at settlement. The NASD
options rule has detailed ‘‘contrary
exercise advice’’ (‘‘CEA’’) procedures
describing the manner in which an
option holder can elect not to exercise
an option that normally would be
exercised, or exercise an option contract
that normally would expire worthless.
To prevent option holders from unfairly
exploiting after-hours news or market
information that affects the price of the
underlying security, the CEA notices
must be submitted to the broker-dealer
and by the broker-dealer to the OCC by
certain specified cut-off times.
Occasionally, due to technical problems
or other inadvertent errors, firms fail to
submit CEA notices within the
applicable time limits. For those
instances, FINRA proposes to have the
flexibility to treat the violation as a
Minor Rule Violation. Violations of the
CEA rules that exploit or are intended
to exploit after-hours news would not be
treated as Minor Rule Violations.
FINRA notes that position and
exercise limits and CEA violations are
part of the MRVP of the options
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[Federal Register Volume 73, Number 116 (Monday, June 16, 2008)]
[Notices]
[Page 34061]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 08-1361]
[[Page 34061]]
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SECURITIES AND EXCHANGE COMMISSION
[File No. 500-1]
In the Matter of Harbour Intermodal, Ltd.; Order of Suspension of
Trading
June 12, 2008.
It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Harbour Intermodal, Ltd. because it has not filed any periodic reports
since the period ended September 30, 2002.
The Commission is of the opinion that the public interest and the
protection of investors require a suspension of trading in the
securities of the above-listed company.
Therefore, it is ordered, pursuant to Section 12(k) of the
Securities Exchange Act of 1934, that trading in the above-listed
company is suspended for the period from 9:30 a.m. EDT on June 12,
2008, through 11:59 p.m. EDT on June 25, 2008.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 08-1361 Filed 6-12-08; 12:18pm]
BILLING CODE 8010-01-P
