Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to UPC Advisory on Trading Halts in OTC Equity Securities, 61178-61180 [E8-24377]

Download as PDF 61178 Federal Register / Vol. 73, No. 200 / Wednesday, October 15, 2008 / Notices breaker rule; however, FINRA’s Board has authority to act in certain emergency or extraordinary market conditions pursuant to Article VII, Section 3 of FINRA’s By-Laws. FINRA is proposing to adopt new FINRA Rule 6121, which would authorize FINRA to halt OTC trading of NMS stocks if other major U.S. securities markets initiate market-wide trading halts in response to their rules or extraordinary market conditions or if otherwise directed by the SEC. FINRA believes that such generalized authority is appropriate and necessary to provide adequate flexibility to deal with extraordinary market conditions. FINRA also believes the proposed rule change will further the goal of coordinated SRO action to address potentially destabilizing market volatility, consistent with the circuit breaker trading halt authority of the exchanges. FINRA has filed the proposed rule change for immediate effectiveness. The operative date of the proposed rule change is the date of filing. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,8 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. FINRA believes that the proposed rule change is consistent with the circuit breaker rules of other SROs and will further the goal of investor protection by providing a coordinated means to address potentially destabilizing market volatility. 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 jlentini on PROD1PC65 with NOTICES Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change is effective upon filing pursuant to Section 19(b)(3)(A) of the Act 9 and paragraph (f)(3) of Rule 19b–4 thereunder,10 in that the proposed rule change is concerned solely with the administration of the self-regulatory organization. At any time within 60 days of the filing of the 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: U.S.C. 78o–3(b)(6). VerDate Aug<31>2005 18:32 Oct 14, 2008 BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58754; File No. SR–FINRA– 2008–049] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to UPC Advisory on Trading Halts in OTC Equity Securities Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–FINRA–2008–048. 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, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of FINRA. All comments received 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 7, 2008, the 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’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by FINRA. FINRA has designated the proposed rule change as constituting a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule under Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(1) thereunder,4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(3). 10 17 Jkt 217001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Acting Secretary. [FR Doc. E8–24376 Filed 10–14–08; 8:45 am] 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–2008–048 on the subject line. 9 15 8 15 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– 2008–048 and should be submitted on or before November 5, 2008. PO 00000 Frm 00162 Fmt 4703 Sfmt 4703 October 8, 2008. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change FINRA is filing a Uniform Practice Code (UPC) Advisory that provides 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(1). 1 15 E:\FR\FM\15OCN1.SGM 15OCN1 Federal Register / Vol. 73, No. 200 / Wednesday, October 15, 2008 / Notices notice that FINRA will halt trading in OTC Equity Securities under FINRA Rule 6460(a)(3) (formerly NASD Rule 6660(a)(3)) if there is a market-wide halt in trading in NMS stocks.5 The text of the proposed UPC Advisory is attached as Exhibit 1. There are no 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 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 National securities exchanges generally have circuit breaker rules whereby the trading in all exchangelisted securities is halted based on a one-day decline of 10%, 20% and 30% of the Dow Jones Industrial Average (‘‘DJIA’’), with the percentage value based on the average closing value of the DJIA for the month prior to the beginning of the quarter, or have other general authority to halt trading in response to similar extraordinary market conditions.6 Unlike the exchanges, with respect to OTC Equity Securities (as that term is defined in the FINRA Rule 6400 Series (formerly NASD Rule 6600 Series)), FINRA does not have an express circuit breaker rule but relies on its authority under FINRA Rule 6460(a)(3) (formerly NASD Rule 6660(a)(3)), which provides that FINRA may halt quoting and trading in OTC equity securities if FINRA determines jlentini on PROD1PC65 with NOTICES 5 On September 25, 2008, the SEC approved proposed rule change SR–FINRA–2008–021, in which FINRA proposed, among other things, to adopt the NASD Marketplace Rules (the NASD Rule 4000 through 7000 Series) as the FINRA Rule 6000 through 7000 Series in the Consolidated FINRA Rulebook. See Securities Exchange Act Release No. 58643 (September 25, 2008), 73 FR 57174 (October 1, 2008) (Order Approving SR–FINRA–2008–021; SR–FINRA–2008–022; SR–FINRA–2008–026; SR– FINRA–2008–028 and SR–FINRA–2008–029). As part of that proposed rule change, FINRA adopted the provisions of NASD Rule 6660 as new FINRA Rule 6460 relating to trading and quotation halts in OTC Equity Securities. 6 See, e.g., NYSE Rule 80B, NYSE Arca Equities Rule 7.12 and NASDAQ Exchange Rule 4121. VerDate Aug<31>2005 18:32 Oct 14, 2008 Jkt 217001 that an extraordinary event has occurred or is ongoing that has had a material effect on the market for the OTC Equity Security or has caused or has the potential to cause major disruption to the marketplace and/or significant uncertainty in the settlement and clearance process. FINRA considers a market-wide halt in the trading of exchange-listed securities to be an extraordinary event under Rule 6460(a)(3) and has therefore published a UPC Advisory (attached as Exhibit 1) to give notice to members and other interested parties that FINRA will halt quoting and trading in OTC Equity Securities under these circumstances. FINRA has filed the proposed rule change for immediate effectiveness and it is operative on the date of filing. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,7 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. FINRA believes that the proposed rule change is consistent with the circuit breaker rules of other SROs and will further the goal of investor protection by providing a coordinated means to address potentially destabilizing market volatility. 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 The proposed rule change is effective upon filing pursuant to Section 19(b)(3)(A) of the Act 8 and paragraph (f)(1) of Rule 19b–4 thereunder,9 in that the proposed rule change is a stated policy, practice or interpretation with respect to the meaning, administration or enforcement of an existing rule. At 7 15 U.S.C. 78o–3(b)(6). U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b–4(f)(1). 8 15 PO 00000 Frm 00163 Fmt 4703 Sfmt 4703 61179 any time within 60 days of the filing of the 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: 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–2008–049 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–FINRA–2008–049. 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, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the 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– E:\FR\FM\15OCN1.SGM 15OCN1 61180 Federal Register / Vol. 73, No. 200 / Wednesday, October 15, 2008 / Notices 2008–049 and should be submitted on or before November 5, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Acting Secretary. Exhibit 1 Attn: Trading and Market Making/Legal and Compliance/Operations/Systems Uniform Practice Advisory (UPC # XXX–2008) October 6, 2008 Exchange Circuit Breaker Declaration— FINRA OTC Equity Market Trigger FINRA Rule 6460 (NASD Rule 6660) Financial Industry Regulatory Authority, Inc. (FINRA) members are hereby provided notice that upon FINRA’s receipt of actual notification (via the NMS consolidated data plans or otherwise) that a market-wide trading halt has been declared for NMS stocks, due to a percentage-based circuit breaker having been triggered, FINRA will exercise its authority under FINRA Rule 6460(a)(3) (NASD Rule 6660(a)(3)) to halt quoting and trading activity in the market for OTC Equity securities (as defined in the FINRA Rule 6400 Series (NASD Rule 6600 Series)).11 Questions regarding this notice should be directed to: FINRA Operations, 866–776–0800. [FR Doc. E8–24377 Filed 10–14–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–58755; File No. SR–Phlx– 2008–71] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the NASDAQ OMX PHLX, Inc. Relating to Deleting Unnecessary Fees October 8, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 10 17 CFR 200.30–3(a)(12). September 25, 2008, the SEC approved proposed rule change SR–FINRA–2008–021, in which FINRA proposed, among other things, to adopt the NASD Marketplace Rules (the NASD Rule 4000 through 7000 Series) as the FINRA Rule 6000 through 7000 Series in the Consolidated FINRA Rulebook. See Securities Exchange Act Release No. 58643 (September 25, 2008), 73 FR 57174 (October 1, 2008) (Order Approving SR–FINRA–2008–021; SR–FINRA–2008–022; SR–FINRA–2008–026; SR– FINRA–2008–028 and SR–FINRA–2008–029). As part of that proposed rule change, FINRA adopted the provisions of NASD Rule 6660 as new FINRA Rule 6460 relating to trading and quotation halts in OTC Equity Securities. jlentini on PROD1PC65 with NOTICES 11 On VerDate Aug<31>2005 18:32 Oct 14, 2008 Jkt 217001 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on October 1, 2008, the NASDAQ OMX PHLX, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. 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 The Exchange, pursuant to Section 19(b)(1) of the Act 3 and Rule 19b–4 thereunder,4 proposes to update its fee schedules by deleting fees that the Exchange has deemed no longer necessary. Specifically, the Exchange proposes to delete its Summary of Physical Delivery Currency Option Charges fee schedule. The Exchange also proposes to delete the following fees from Appendix A of its fee schedule: Foreign Currency User Fee; Transfer Fee for Foreign Currency Options (‘‘FCO’’) Participant; Direct Wire to the Floor; Wireless Telephone System; Tether Initial Connectivity Fee;5 Execution Services/ Communication Charge; Phlx CCH Wall Street (‘‘CCH’’) Guide; Option Report Service (New York and Chicago); Instinet, Reuters Equipment; and the Hyperfeed fee. While changes to the fee schedule pursuant to this proposal are effective upon filing, the Exchange has designated these changes to become effective on October 1, 2008. The text of the proposed rule change is available on the Exchange’s Web site at http://www.phlx.com/regulatory/ reg_rulefilings.aspx. 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 IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(1). 4 17 CFR 240.19b–4. 5 The $150 Tether Monthly Service Fee will continue to be assessed. 2 17 PO 00000 Frm 00164 Fmt 4703 Sfmt 4703 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 The purpose of the proposed rule change is to update the Exchange’s fee schedule to delete fees that the Exchange believes are no longer necessary. Specifically, the Exchange no longer provides a trading venue for physical delivery FCOs. Thus, the Summary of Physical Delivery Currency Option Charges no longer applies to products traded at the Exchange.6 Additionally, the Exchange no longer offers FCO participations. Therefore, the Foreign Currency User Fee and the Transfer Fee for FCO Participants are no longer necessary. For business purposes, the Exchange has determined not to assess the following fees: Direct Wire to the Floor; Wireless Telephone System; and Execution Service/Communication Charges. These fees, which relate generally to telephone access to the floor, are not deemed necessary at this time. Additionally, the Exchange believes the Tether Initial Connectivity Fee, which refers to establishing a hardwire connection to an existing communication network on the trading floor, is no longer necessary at this time. Currently, there is not a significant demand for this type of telephone access to the floor or for establishing a hardwire connection to an existing communication network on the trading floor. With respect to the Phlx CCH Guide, which includes Phlx By-Laws and rules, the Exchange will no longer supply members with a hard copy of the Phlx CCH Guide because the guide is now available on-line through the Phlx Web site.7 The fees relating to the Option Report Service (New York and Chicago), Instinet, Reuters Equipment, and Hyperfeed are not required because these services are no longer being offered by the Exchange. While changes to the fee schedule pursuant to this proposal are effective upon filing, the Exchange has designated these changes to become effective on October 1, 2008. 6 Exchange members, however, may still trade foreign currency options. The Exchange currently has a separate fee schedule for U.S. dollar-settled foreign currency options. 7 There is no fee to access the Phlx CCH Guide on-line. E:\FR\FM\15OCN1.SGM 15OCN1

Agencies

[Federal Register Volume 73, Number 200 (Wednesday, October 15, 2008)]
[Notices]
[Pages 61178-61180]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-24377]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58754; File No. SR-FINRA-2008-049]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of 
Proposed Rule Change Relating to UPC Advisory on Trading Halts in OTC 
Equity Securities

October 8, 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 October 7, 2008, the 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'') the proposed rule change as described in Items I, 
II, and III below, which Items have been prepared by FINRA. FINRA has 
designated the proposed rule change as constituting a stated policy, 
practice, or interpretation with respect to the meaning, 
administration, or enforcement of an existing rule under Section 
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(1) thereunder,\4\ which 
renders the proposal effective upon filing with the Commission. 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).
    \4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    FINRA is filing a Uniform Practice Code (UPC) Advisory that 
provides

[[Page 61179]]

notice that FINRA will halt trading in OTC Equity Securities under 
FINRA Rule 6460(a)(3) (formerly NASD Rule 6660(a)(3)) if there is a 
market-wide halt in trading in NMS stocks.\5\
---------------------------------------------------------------------------

    \5\ On September 25, 2008, the SEC approved proposed rule change 
SR-FINRA-2008-021, in which FINRA proposed, among other things, to 
adopt the NASD Marketplace Rules (the NASD Rule 4000 through 7000 
Series) as the FINRA Rule 6000 through 7000 Series in the 
Consolidated FINRA Rulebook. See Securities Exchange Act Release No. 
58643 (September 25, 2008), 73 FR 57174 (October 1, 2008) (Order 
Approving SR-FINRA-2008-021; SR-FINRA-2008-022; SR-FINRA-2008-026; 
SR-FINRA-2008-028 and SR-FINRA-2008-029). As part of that proposed 
rule change, FINRA adopted the provisions of NASD Rule 6660 as new 
FINRA Rule 6460 relating to trading and quotation halts in OTC 
Equity Securities.
---------------------------------------------------------------------------

    The text of the proposed UPC Advisory is attached as Exhibit 1. 
There are no 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 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
    National securities exchanges generally have circuit breaker rules 
whereby the trading in all exchange-listed securities is halted based 
on a one-day decline of 10%, 20% and 30% of the Dow Jones Industrial 
Average (``DJIA''), with the percentage value based on the average 
closing value of the DJIA for the month prior to the beginning of the 
quarter, or have other general authority to halt trading in response to 
similar extraordinary market conditions.\6\ Unlike the exchanges, with 
respect to OTC Equity Securities (as that term is defined in the FINRA 
Rule 6400 Series (formerly NASD Rule 6600 Series)), FINRA does not have 
an express circuit breaker rule but relies on its authority under FINRA 
Rule 6460(a)(3) (formerly NASD Rule 6660(a)(3)), which provides that 
FINRA may halt quoting and trading in OTC equity securities if FINRA 
determines that an extraordinary event has occurred or is ongoing that 
has had a material effect on the market for the OTC Equity Security or 
has caused or has the potential to cause major disruption to the 
marketplace and/or significant uncertainty in the settlement and 
clearance process. FINRA considers a market-wide halt in the trading of 
exchange-listed securities to be an extraordinary event under Rule 
6460(a)(3) and has therefore published a UPC Advisory (attached as 
Exhibit 1) to give notice to members and other interested parties that 
FINRA will halt quoting and trading in OTC Equity Securities under 
these circumstances.
---------------------------------------------------------------------------

    \6\ See, e.g., NYSE Rule 80B, NYSE Arca Equities Rule 7.12 and 
NASDAQ Exchange Rule 4121.
---------------------------------------------------------------------------

    FINRA has filed the proposed rule change for immediate 
effectiveness and it is operative on the date of filing.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\7\ 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. FINRA believes that the proposed rule change is 
consistent with the circuit breaker rules of other SROs and will 
further the goal of investor protection by providing a coordinated 
means to address potentially destabilizing market volatility.
---------------------------------------------------------------------------

    \7\ 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

    The proposed rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) of the Act \8\ and paragraph (f)(1) of Rule 19b-4 
thereunder,\9\ in that the proposed rule change is a stated policy, 
practice or interpretation with respect to the meaning, administration 
or enforcement of an existing rule. At any time within 60 days of the 
filing of the 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-FINRA-2008-049 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-FINRA-2008-049. 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, on official 
business days between the hours of 10 a.m. and 3 p.m. Copies of the 
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-

[[Page 61180]]

2008-049 and should be submitted on or before November 5, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.

Exhibit 1

Attn: Trading and Market Making/Legal and Compliance/Operations/Systems

Uniform Practice Advisory (UPC  XXX-2008) October 6, 2008
Exchange Circuit Breaker Declaration--FINRA OTC Equity Market Trigger
FINRA Rule 6460 (NASD Rule 6660)
    Financial Industry Regulatory Authority, Inc. (FINRA) members are 
hereby provided notice that upon FINRA's receipt of actual notification 
(via the NMS consolidated data plans or otherwise) that a market-wide 
trading halt has been declared for NMS stocks, due to a percentage-
based circuit breaker having been triggered, FINRA will exercise its 
authority under FINRA Rule 6460(a)(3) (NASD Rule 6660(a)(3)) to halt 
quoting and trading activity in the market for OTC Equity securities 
(as defined in the FINRA Rule 6400 Series (NASD Rule 6600 Series)).\11\ 
Questions regarding this notice should be directed to: FINRA 
Operations, 866-776-0800.
---------------------------------------------------------------------------

    \11\ On September 25, 2008, the SEC approved proposed rule 
change SR-FINRA-2008-021, in which FINRA proposed, among other 
things, to adopt the NASD Marketplace Rules (the NASD Rule 4000 
through 7000 Series) as the FINRA Rule 6000 through 7000 Series in 
the Consolidated FINRA Rulebook. See Securities Exchange Act Release 
No. 58643 (September 25, 2008), 73 FR 57174 (October 1, 2008) (Order 
Approving SR-FINRA-2008-021; SR-FINRA-2008-022; SR-FINRA-2008-026; 
SR-FINRA-2008-028 and SR-FINRA-2008-029). As part of that proposed 
rule change, FINRA adopted the provisions of NASD Rule 6660 as new 
FINRA Rule 6460 relating to trading and quotation halts in OTC 
Equity Securities.

[FR Doc. E8-24377 Filed 10-14-08; 8:45 am]
BILLING CODE 8011-01-P