Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Update Rule Cross-References and Make Other Various Non-Substantive Technical Changes to FINRA Rules00, 78412-78414 [E8-30319]

Download as PDF 78412 Federal Register / Vol. 73, No. 246 / Monday, December 22, 2008 / Notices IV. Discussion The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to DTC. In particular, the Commission believes the proposal is consistent with Section 17A(b)(3)(F) of the Act,8 which requires that the rules of a registered clearing agency are designed to, among other things, promote the prompt and accurate clearance and settlement of securities transactions. DTC’s creation of a service to assist issuers and their agents fulfill their regulatory obligations to monitor and limit the number of beneficial shareholders of their closely held securities should provide a meaningful incentive for issuers and participants to utilize DTC’s depository services, which should provide more efficient processing of such transactions by reducing the incidence of physical processing outside of DTC. The Commission duly notes the importance of the issue of short selling that the commenter appeared to be expressing and will continue to monitor developments in this area and assert its oversight responsibilities of industry participants with the view to ensure that appropriate safeguards are in place to facilitate the prompt and accurate clearance and settlement of securities transactions and to protect investors. However, that issue is outside the scope and purpose of this proposed rule change, which is to implement a service to allow issuers of closely held securities to enhance their compliance with federal securities laws. V. Conclusion mstockstill on PROD1PC66 with NOTICES On the basis of the foregoing, the Commission finds that the proposed rule change is consistent with the requirements of the Act and in particular Section 17A of the Act 9 and the rules and regulations thereunder. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,10 that the proposed rule change (File No. SR– DTC–2008–11) be and hereby is approved.11 8 15 U.S.C. 78q–1(b)(3)(F). U.S.C. 78q–1. 10 15 U.S.C. 78s(b)(2). 11 In approving the proposed rule change, the Commission considered the proposal’s impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). For the Commission by the Division of Trading and Markets, pursuant to delegated authority.12 Florence E. Harmon, Acting Secretary. [FR Doc. E8–30322 Filed 12–19–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–59097; File No. SR–FINRA– 2008–057] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Update Rule CrossReferences and Make Other Various Non-Substantive Technical Changes to FINRA Rules00 December 12, 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 December 3, 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 prepared by FINRA. FINRA designated the proposed rule change as ‘‘noncontroversial’’ under Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(6) 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change FINRA is proposing to update rule cross-references and make other various non-substantive technical changes to FINRA rules that have been adopted in the consolidated FINRA rulebook but not yet implemented. The text of the proposed rule change is available on FINRA’s Web site at http://www.finra.org, at the principal office of FINRA and at the Commission’s Public Reference Room. 9 15 VerDate Aug<31>2005 19:07 Dec 19, 2008 Jkt 217001 12 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)(iii). 4 17 CFR 240.19b–4(f)(6). 1 15 PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 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 in process of developing a new consolidated rulebook (‘‘Consolidated FINRA Rulebook’’).5 That process involves FINRA submitting to the Commission for approval a series of proposed rule changes over time to adopt rules in the Consolidated FINRA Rulebook. The phased adoption and implementation of those rules necessitates periodic amendments to update rule cross-references and other non-substantive technical changes in the Consolidated FINRA Rulebook. The proposed rule change would effectuate those amendments in certain rules that have been approved by the Commission but not yet implemented in the Consolidated FINRA Rulebook. During the months of August and September 2008, the Commission approved nine FINRA proposed rule changes (‘‘Phase 1 Rules’’).6 Those rules 5 The current FINRA rulebook includes, in addition to FINRA Rules, (1) NASD Rules and (2) rules incorporated from NYSE (‘‘Incorporated NYSE Rules’’) (together, the NASD Rules and Incorporated NYSE Rules are referred to as the ‘‘Transitional Rulebook’’). While the NASD Rules generally apply to all FINRA members, the Incorporated NYSE Rules apply only to those members of FINRA that are also members of the NYSE (‘‘Dual Members’’). For more information about the rulebook consolidation process, see FINRA Information Notice, March 12, 2008 (Rulebook Consolidation Process). 6 See Securities Exchange Act Release No. 58421 (August 25, 2008), 73 FR 51032 (August 29, 2008) (Order Approving File No. SR–FINRA–2008–025); Securities Exchange Act Release No. 58461 (September 4, 2008), 73 FR 52710 (September 10, 2008) (Order Approving File No. SR–FINRA–2008– 033); Securities Exchange Act Release No. 58514 (September 11, 2008), 73 FR 54190 (September 18, 2008) (Order Approving File No. SR–FINRA–2008– 039); Securities Exchange Act Release No. 58643 (September 25, 2008), 73 FR 57174 (October 1, 2008) (Order Approving File Nos. SR–FINRA– 2008–021; SR–FINRA–2008–022; SR–FINRA–2008– 026; SR–FINRA–2008–028 and SR–FINRA–2008– 029); Securities Exchange Act Release No. 58660 (September 26, 2008), 73 FR 57393 (October 2, E:\FR\FM\22DEN1.SGM 22DEN1 Federal Register / Vol. 73, No. 246 / Monday, December 22, 2008 / Notices mstockstill on PROD1PC66 with NOTICES will be implemented on December 15, 2008.7 The proposed rule change generally would make several types of changes to those approved rules. First, it would update rule cross-references. For example, references to NASD rules would be changed to reference the new corresponding FINRA rules. In addition, the proposed rule change would update FINRA Rule 7410(g) to reference New York Stock Exchange Rule 132B, rather than Rule 80A, pursuant to a previously approved New York Stock Exchange rule filing.8 Second, the proposed rule change would adopt into the Consolidated FINRA Rulebook without material change new NASD rules that were approved after the Phase 1 Rules were submitted to the Commission: NASD Rules 12905 and 13905.9 It would also update the Consolidated FINRA Rulebook to account for amendments to NASD and Incorporated NYSE Rules that were approved after the Phase I Rules were submitted to the Commission. Those affected rules are FINRA Rules 6220, 6275, 6540, 6560 (since deleted), 6622, 6730 and 9217.10 Third, the proposed rule change would delete a reference in FINRA Rule 5110 to ‘‘SEC Regulation B’’, which previously was rescinded.11 In that same FINRA rule, the proposed rule change would add language that inadvertently was left out of the existing NASD rule when that NASD rule was 2008) (Order Approving File No. SR–FINRA–2008– 027); Securities Exchange Act Release No. 58661 (September 26, 2008), 73 FR 57395 (October 2, 2008) (Order Approving File No. SR–FINRA–2008– 030). 7 See FINRA Regulatory Notice 08–57 (October 2008) (FINRA Announces SEC Approval and Effective Date for New Consolidated FINRA Rules). 8 See Securities Exchange Act Release No. 56726 (October 31, 2007), 72 FR 62719 (November 6, 2007) (Notice of Filing and Immediate Effectiveness of File No. SR–NYSE–2007–96). 9 See Securities Exchange Act Release No. 58739 (October 6, 2008), 73 FR 60738 (October 14, 2008) (Order Approving File No. SR–FINRA–2008–005). 10 See Securities Exchange Act Release No. 55351 (February 26, 2007), 72 FR 9810 (March 5, 2007) (Order Approving File No. SR–NASD–2005–146); Securities Exchange Act Release No. 58532 (September 12, 2008), 73 FR 54649 (September 22, 2008) (Order Approving File No. SR–NASD–2007– 041); Securities Exchange Act Release No. 58331 (August 8, 2008), 73 FR 47990 (August 15, 2008) (Order Approving File No. SR–FINRA–2008–016); Securities Exchange Act Release No. 58514 (September 11, 2008), 73 FR 54190 (September 18, 2008) (Order Approving File No. SR–FINRA–2008– 039); Securities Exchange Act Release No. 58533 (September 12, 2008), 73 FR 54652 (September 22, 2008) (Order Approving File No. SR–FINRA–2008– 036); Securities Exchange Act Release No. 58520 (September 11, 2008), 73 FR 54193 (September 18, 2008) (Order Approving File No. SR–FINRA–2008– 040). 11 See Securities Exchange Act Release No. 37262 (May 31, 1996), 61 FR 30397 (June 14, 1996) (File No. S7–6–96). VerDate Aug<31>2005 19:07 Dec 19, 2008 Jkt 217001 adopted without material change into the Consolidated FINRA Rulebook.12 The proposed rule change also would delete in FINRA Rule 6440 references to certain subparagraphs of SEA Rule 15c2–11 that no longer exist. Fourth, the proposed rule change would replace references to the SEC’s Electronic Data Gathering and Retrieval (‘‘EDGAR’’) System with its new name, the Interactive Data Electronic Applications (‘‘IDEA’’) System. Finally, the proposed rule change would update FINRA Rules 4560 and 5110 to reflect a change in FINRA style convention when referencing SEC rules and regulations. FINRA has filed the proposed rule change for immediate effectiveness and has requested that the SEC waive the requirement that the proposed rule change not become operative for 30 days after the date of the filing, such that FINRA can implement the proposed rule change on December 15, 2008, the date on which the previously approved rule changes will also be implemented. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,13 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 the proposed rule change will provide greater clarity to members and the public regarding FINRA’s rules. B. Self-Regulatory Organization’s Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public 12 See Securities Exchange Act Release No. 58514 (September 11, 2008), 73 FR 54190 (September 18, 2008) (Order Approving File No. SR–FINRA–2008– 039, which failed to include language adopted in SR–NASD–2001–046). 13 15 U.S.C. 78o–3(b)(6). PO 00000 Frm 00130 Fmt 4703 Sfmt 4703 78413 interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days after the date of filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 14 and subparagraph (f)(6) of Rule 19b–4 thereunder.15 As required under Rule 19b–4(f)(6)(iii),16 FINRA provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the filing of the proposed rule change. A proposed rule change filed under Rule 19b–4(f)(6) normally may not become operative prior to the 30th day after the date of filing.17 However, Rule 19b–4(f)(6)(iii) 18 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. FINRA requested that the Commission waive the 30-day operative delay and designate the proposed rule change to become operative upon filing so that FINRA can implement the proposed rule change on December 15, 2008, the same date on which the previously approved rule changes relating the Consolidated FINRA Rulebook will be implemented. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. In particular, the Commission does not believe that the proposed rule change presents any novel issues. The proposed rule change makes non-substantive changes to update FINRA rules in the Consolidated FINRA Rulebook to reflect changes to FINRA rules previously published for comment by the Commission. Accordingly, the Commission designates the proposed rule change to be operative upon filing with the Commission.19 At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate the rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, 14 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 16 17 CFR 240.19b–4(f)(6)(iii). 17 See id. 18 Id. 19 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 15 17 E:\FR\FM\22DEN1.SGM 22DEN1 78414 Federal Register / Vol. 73, No. 246 / Monday, December 22, 2008 / Notices 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.20 Florence E. Harmon, Acting Secretary. [FR Doc. E8–30319 Filed 12–19–08; 8:45 am] SECURITIES AND EXCHANGE COMMISSION • 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–2008–057 on the subject line. [Release No. 34–59092; File No. SR–ISE– 2008–93] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes December 12, 2008. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2 to Secretary, Securities and Exchange notice is hereby given that on December Commission, 100 F Street, NE., 8, 2008, the International Securities Washington, DC 20549–1090. Exchange, LLC (the ‘‘Exchange’’ or the ‘‘ISE’’) filed with the Securities and All submissions should refer to File Number SR–FINRA–2008–057. This file Exchange Commission the proposed rule change, as described in Items I, II, number should be included on the subject line if e-mail is used. To help the and III below, which items have been prepared by the self-regulatory Commission process and review your organization. The Commission is comments more efficiently, please use only one method. The Commission will publishing this notice to solicit post all comments on the Commission’s comments on the proposed rule change from interested persons. Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s submission, all subsequent Statement of the Terms of Substance of amendments, all written statements the Proposed Rule Change with respect to the proposed rule The ISE is proposing to amend its change that are filed with the Schedule of Fees to establish fees for Commission, and all written transactions in options on 2 Premium communications relating to the Products.3 The text of the proposed rule proposed rule change between the Commission and any person, other than change is available on the Exchange’s Web site (http://www.ise.com), at the those that may be withheld from the principal office of the Exchange, and at public in accordance with the the Commission’s Public Reference provisions of 5 U.S.C. 552, will be Room. available for inspection and copying in the Commission’s Public Reference II. Self-Regulatory Organization’s Room, 100 F Street, NE., Washington, Statement of the Purpose of, and DC 20549, on official business days Statutory Basis for, the Proposed Rule between the hours of 10 a.m. and 3 p.m. Change Copies of such filing also will be In its filing with the Commission, the available for inspection and copying at self-regulatory organization included the principal office of FINRA. All statements concerning the purpose of, comments received will be posted and basis for, the proposed rule change without change; the Commission does and discussed any comments it received not edit personal identifying on the proposed rule change. The text information from submissions. You of these statements may be examined at should submit only information that you wish to make available publicly. All the places specified in Item IV below. The self-regulatory organization has submissions should refer to File prepared summaries, set forth in Number SR–FINRA–2008–057 and should be submitted on or before 1 15 U.S.C. 78s(b)(1). January 12, 2009. 2 17 CFR 240.19b–4. mstockstill on PROD1PC66 with NOTICES Paper Comments 3 Premium Products is defined in the Schedule of Fees as the products enumerated therein. CFR 200.30–3(a)(12). VerDate Aug<31>2005 19:07 Dec 19, 2008 Jkt 217001 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change BILLING CODE 8011–01–P Electronic Comments 20 17 sections A, B and C below, of the most significant aspects of such statements. PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 1. Purpose The Exchange is proposing to amend its Schedule of Fees to establish fees for transactions in options on the iShares Silver Trust (‘‘SLV’’) 4 and the iShares® COMEX Gold Trust (‘‘IAU’’).5 The Exchange represents that SLV and IAU are eligible for options trading because they constitute ‘‘Exchange-Traded Fund Shares,’’ as defined by ISE Rule 502(h). All of the applicable fees covered by this filing are identical to fees charged by the Exchange for all other Premium Products. Specifically, the Exchange is proposing to adopt an execution fee for all transactions in options on SLV and IAU.6 The amount of the execution fee 4 iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, service marks or registered trademarks are the property of their respective owners. The iShares Silver Trust’s (‘‘SLV’’) sponsor is Barclays Global Investors International, Inc. (‘‘BGII’’), a subsidiary of Barclays Bank PLC. SLV is not sponsored, endorsed, sold or promoted by BGII, and BGII makes no representation regarding the advisability of investing in SLV. BGII has not licensed or authorized ISE to (i) engage in the creation, listing, provision of a market for trading, marketing, and promotion of options on SLV or (ii) to use and refer to any of their trademarks or service marks in connection with the listing, provision of a market for trading, marketing, and promotion of options on SLV or with making disclosures concerning options on SLV under any applicable federal or state laws, rules or regulations. BGII does not sponsor, endorse, or promote such activity by ISE and is not affiliated in any manner with ISE. 5 iShares® is a registered trademark of Barclays Global Investors, N.A., ‘‘Commodity Exchange, Inc.’’ and ‘‘COMEX’’ are trademarks of Commodity Exchange, Inc., and have been licensed for use for certain purposes to Barclays Global Investors and the iShares® COMEX Gold Trust (‘‘IAU’’). All other trademarks, service marks or registered trademarks are the property of their respective owners. IAU’s sponsor is Barclays Global Investors International, Inc., (‘‘BGII’’), a Delaware corporation and a subsidiary of Barclays Bank PLC. IAU is not sponsored, endorsed, sold or promoted by BGII or by Commodity Exchange, Inc., nor do BGII and Commodity Exchange, Inc., make any representation regarding the advisability of investing in IAU. BGII and Commodity Exchange, Inc., have not licensed or authorized ISE to (i) engage in the creation, listing, provision of a market for trading, marketing, and promotion of options on IAU or (ii) to use and refer to any of their trademarks or service marks in connection with the listing, provision of a market for trading, marketing, and promotion of options on IAU or with making disclosures concerning options on IAU under any applicable federal or state laws, rules or regulations. BGII and Commodity Exchange, Inc., do not sponsor, endorse, or promote such activity by ISE and are not affiliated in any manner with ISE. 6 These fees will be charged only to Exchange members. Under a pilot program that is set to expire on July 31, 2009, these fees will also be charged to Linkage Principal Orders (’’Linkage P Orders’’) and Linkage Principal Acting as Agent Orders (’’Linkage E:\FR\FM\22DEN1.SGM 22DEN1

Agencies

[Federal Register Volume 73, Number 246 (Monday, December 22, 2008)]
[Notices]
[Pages 78412-78414]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-30319]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59097; File No. SR-FINRA-2008-057]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of 
Proposed Rule Change to Update Rule Cross-References and Make Other 
Various Non-Substantive Technical Changes to FINRA Rules00

December 12, 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 December 3, 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 prepared by FINRA. FINRA designated the 
proposed rule change as ``non-controversial'' under Section 
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) 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)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    FINRA is proposing to update rule cross-references and make other 
various non-substantive technical changes to FINRA rules that have been 
adopted in the consolidated FINRA rulebook but not yet implemented.
    The text of the proposed rule change is available on FINRA's Web 
site at http://www.finra.org, at the principal office of FINRA and at 
the Commission's Public Reference Room.

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 in process of developing a new consolidated rulebook 
(``Consolidated FINRA Rulebook'').\5\ That process involves FINRA 
submitting to the Commission for approval a series of proposed rule 
changes over time to adopt rules in the Consolidated FINRA Rulebook. 
The phased adoption and implementation of those rules necessitates 
periodic amendments to update rule cross-references and other non-
substantive technical changes in the Consolidated FINRA Rulebook. The 
proposed rule change would effectuate those amendments in certain rules 
that have been approved by the Commission but not yet implemented in 
the Consolidated FINRA Rulebook.
---------------------------------------------------------------------------

    \5\ The current FINRA rulebook includes, in addition to FINRA 
Rules, (1) NASD Rules and (2) rules incorporated from NYSE 
(``Incorporated NYSE Rules'') (together, the NASD Rules and 
Incorporated NYSE Rules are referred to as the ``Transitional 
Rulebook''). While the NASD Rules generally apply to all FINRA 
members, the Incorporated NYSE Rules apply only to those members of 
FINRA that are also members of the NYSE (``Dual Members''). For more 
information about the rulebook consolidation process, see FINRA 
Information Notice, March 12, 2008 (Rulebook Consolidation Process).
---------------------------------------------------------------------------

    During the months of August and September 2008, the Commission 
approved nine FINRA proposed rule changes (``Phase 1 Rules'').\6\ Those 
rules

[[Page 78413]]

will be implemented on December 15, 2008.\7\ The proposed rule change 
generally would make several types of changes to those approved rules. 
First, it would update rule cross-references. For example, references 
to NASD rules would be changed to reference the new corresponding FINRA 
rules. In addition, the proposed rule change would update FINRA Rule 
7410(g) to reference New York Stock Exchange Rule 132B, rather than 
Rule 80A, pursuant to a previously approved New York Stock Exchange 
rule filing.\8\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 58421 (August 25, 
2008), 73 FR 51032 (August 29, 2008) (Order Approving File No. SR-
FINRA-2008-025); Securities Exchange Act Release No. 58461 
(September 4, 2008), 73 FR 52710 (September 10, 2008) (Order 
Approving File No. SR-FINRA-2008-033); Securities Exchange Act 
Release No. 58514 (September 11, 2008), 73 FR 54190 (September 18, 
2008) (Order Approving File No. SR-FINRA-2008-039); Securities 
Exchange Act Release No. 58643 (September 25, 2008), 73 FR 57174 
(October 1, 2008) (Order Approving File Nos. SR-FINRA-2008-021; SR-
FINRA-2008-022; SR-FINRA-2008-026; SR-FINRA-2008-028 and SR-FINRA-
2008-029); Securities Exchange Act Release No. 58660 (September 26, 
2008), 73 FR 57393 (October 2, 2008) (Order Approving File No. SR-
FINRA-2008-027); Securities Exchange Act Release No. 58661 
(September 26, 2008), 73 FR 57395 (October 2, 2008) (Order Approving 
File No. SR-FINRA-2008-030).
    \7\ See FINRA Regulatory Notice 08-57 (October 2008) (FINRA 
Announces SEC Approval and Effective Date for New Consolidated FINRA 
Rules).
    \8\ See Securities Exchange Act Release No. 56726 (October 31, 
2007), 72 FR 62719 (November 6, 2007) (Notice of Filing and 
Immediate Effectiveness of File No. SR-NYSE-2007-96).
---------------------------------------------------------------------------

    Second, the proposed rule change would adopt into the Consolidated 
FINRA Rulebook without material change new NASD rules that were 
approved after the Phase 1 Rules were submitted to the Commission: NASD 
Rules 12905 and 13905.\9\ It would also update the Consolidated FINRA 
Rulebook to account for amendments to NASD and Incorporated NYSE Rules 
that were approved after the Phase I Rules were submitted to the 
Commission. Those affected rules are FINRA Rules 6220, 6275, 6540, 6560 
(since deleted), 6622, 6730 and 9217.\10\
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 58739 (October 6, 
2008), 73 FR 60738 (October 14, 2008) (Order Approving File No. SR-
FINRA-2008-005).
    \10\ See Securities Exchange Act Release No. 55351 (February 26, 
2007), 72 FR 9810 (March 5, 2007) (Order Approving File No. SR-NASD-
2005-146); Securities Exchange Act Release No. 58532 (September 12, 
2008), 73 FR 54649 (September 22, 2008) (Order Approving File No. 
SR-NASD-2007-041); Securities Exchange Act Release No. 58331 (August 
8, 2008), 73 FR 47990 (August 15, 2008) (Order Approving File No. 
SR-FINRA-2008-016); Securities Exchange Act Release No. 58514 
(September 11, 2008), 73 FR 54190 (September 18, 2008) (Order 
Approving File No. SR-FINRA-2008-039); Securities Exchange Act 
Release No. 58533 (September 12, 2008), 73 FR 54652 (September 22, 
2008) (Order Approving File No. SR-FINRA-2008-036); Securities 
Exchange Act Release No. 58520 (September 11, 2008), 73 FR 54193 
(September 18, 2008) (Order Approving File No. SR-FINRA-2008-040).
---------------------------------------------------------------------------

    Third, the proposed rule change would delete a reference in FINRA 
Rule 5110 to ``SEC Regulation B'', which previously was rescinded.\11\ 
In that same FINRA rule, the proposed rule change would add language 
that inadvertently was left out of the existing NASD rule when that 
NASD rule was adopted without material change into the Consolidated 
FINRA Rulebook.\12\ The proposed rule change also would delete in FINRA 
Rule 6440 references to certain subparagraphs of SEA Rule 15c2-11 that 
no longer exist.
---------------------------------------------------------------------------

    \11\ See Securities Exchange Act Release No. 37262 (May 31, 
1996), 61 FR 30397 (June 14, 1996) (File No. S7-6-96).
    \12\ See Securities Exchange Act Release No. 58514 (September 
11, 2008), 73 FR 54190 (September 18, 2008) (Order Approving File 
No. SR-FINRA-2008-039, which failed to include language adopted in 
SR-NASD-2001-046).
---------------------------------------------------------------------------

    Fourth, the proposed rule change would replace references to the 
SEC's Electronic Data Gathering and Retrieval (``EDGAR'') System with 
its new name, the Interactive Data Electronic Applications (``IDEA'') 
System. Finally, the proposed rule change would update FINRA Rules 4560 
and 5110 to reflect a change in FINRA style convention when referencing 
SEC rules and regulations.
    FINRA has filed the proposed rule change for immediate 
effectiveness and has requested that the SEC waive the requirement that 
the proposed rule change not become operative for 30 days after the 
date of the filing, such that FINRA can implement the proposed rule 
change on December 15, 2008, the date on which the previously approved 
rule changes will also be implemented.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\13\ 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 the proposed rule change will provide 
greater clarity to members and the public regarding FINRA's rules.
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    \13\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the proposed rule change does not: (i) Significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days after the date of filing, or such shorter time as the Commission 
may designate if consistent with the protection of investors and the 
public interest, the proposed rule change has become effective pursuant 
to Section 19(b)(3)(A) of the Act \14\ and subparagraph (f)(6) of Rule 
19b-4 thereunder.\15\ As required under Rule 19b-4(f)(6)(iii),\16\ 
FINRA provided the Commission with written notice of its intent to file 
the proposed rule change, along with a brief description and text of 
the proposed rule change, at least five business days prior to the 
filing of the proposed rule change.
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally may 
not become operative prior to the 30th day after the date of 
filing.\17\ However, Rule 19b-4(f)(6)(iii) \18\ permits the Commission 
to designate a shorter time if such action is consistent with the 
protection of investors and the public interest. FINRA requested that 
the Commission waive the 30-day operative delay and designate the 
proposed rule change to become operative upon filing so that FINRA can 
implement the proposed rule change on December 15, 2008, the same date 
on which the previously approved rule changes relating the Consolidated 
FINRA Rulebook will be implemented. The Commission believes that 
waiving the 30-day operative delay is consistent with the protection of 
investors and the public interest. In particular, the Commission does 
not believe that the proposed rule change presents any novel issues. 
The proposed rule change makes non-substantive changes to update FINRA 
rules in the Consolidated FINRA Rulebook to reflect changes to FINRA 
rules previously published for comment by the Commission. Accordingly, 
the Commission designates the proposed rule change to be operative upon 
filing with the Commission.\19\
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    \17\ See id.
    \18\ Id.
    \19\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate the rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors,

[[Page 78414]]

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 rule-comments@sec.gov. Please include 
File Number SR-FINRA-2008-057 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-2008-057. 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-2008-057 and should be 
submitted on or before January 12, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-30319 Filed 12-19-08; 8:45 am]
BILLING CODE 8011-01-P