Self-Regulatory Organizations: Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Adoption of NASD Rules 12805 and 13805 as FINRA Rules in the New Consolidated FINRA Rulebook, 79525-79527 [E8-30785]
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Federal Register / Vol. 73, No. 249 / Monday, December 29, 2008 / Notices
Act and the rules and regulations
thereunder that are applicable to a
national securities exchange, and, in
particular, with the requirements of
Section 6(b).5 In particular, for the
reasons described above, the proposed
change is consistent with Section 6(b)(5)
of the Act,6 because it would promote
just and equitable principles of trade,
remove impediments to, and perfect the
mechanism of, a free and open market
and a national market system, and, in
general, protect investors and the public
interest.
B. Self-Regulatory Organization’s
Statement of Burden on Competition
The Exchange does not believe that
the proposed rule change imposes any
burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments Regarding the
Proposed Rule Changes Received From
Members, Participants or Others
No written comments were solicited
or received.
III. Date of Effectiveness of the
Proposed Rule Changes and Timing for
Commission Action
Because it is concerned solely with
the administration of the Exchange, the
foregoing proposed rule change has
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 7 and Rule
19b–4(f)(3) thereunder.8 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:
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–BATS–2008–013. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of BATS. 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–BATS–2008–013 and
should be submitted on or before
January 20, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–30788 Filed 12–24–08; 8:45 am]
BILLING CODE 8011–01–P
dwashington3 on PROD1PC60 with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–BATS–2008–013 on the
subject line.
U.S.C. 78(f)(b).
U.S.C. 78f(b)(5).
7 15 U.S.C. 78s(b)(3)(A)(iii).
8 17 CFR 240.19b–4(f)(3).
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59108; File No. SR–FINRA–
2008–063]
Self-Regulatory Organizations:
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Adoption of
NASD Rules 12805 and 13805 as
FINRA Rules in the New Consolidated
FINRA Rulebook
December 16, 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
15, 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
concerned solely with the
administration of the self-regulatory
organization under Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(3)
thereunder,4 which renders the proposal
effective upon receipt of this filing by
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 adopt Rule
12805 of the NASD Code of Arbitration
Procedure for Customer Disputes
(‘‘Customer Code’’) and Rule 13805 of
the NASD Code of Arbitration
Procedure for Industry Disputes
(‘‘Industry Code’’) (collectively, the
‘‘NASD Codes’’) as FINRA rules into a
new consolidated rulebook. Below is the
text of Rules 12805 and 13805. FINRA
is not proposing any changes to the rule
text.
*
*
*
*
*
Customer Code
12805. Expungement of Customer
Dispute Information under Rule 2130
In order to grant expungement of
customer dispute information under
Rule 2130, the panel must:
5 15
1 15
6 15
2 17
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13:19 Dec 24, 2008
9 17
Jkt 217001
79525
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(3).
CFR 200.30–3(a)(12).
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Federal Register / Vol. 73, No. 249 / Monday, December 29, 2008 / Notices
(a) Hold a recorded hearing session
(by telephone or in person) regarding
the appropriateness of expungement.
This paragraph will apply to cases
administered under Rule 12800 even if
a customer did not request a hearing on
the merits.
(b) In cases involving settlements,
review settlement documents and
consider the amount of payments made
to any party and any other terms and
conditions of a settlement.
(c) Indicate in the arbitration award
which of the Rule 2130 grounds for
expungement serve(s) as the basis for its
expungement order and provide a brief
written explanation of the reason(s) for
its finding that one or more Rule 2130
grounds for expungement applies to the
facts of the case.
(d) Assess all forum fees for hearing
sessions in which the sole topic is the
determination of the appropriateness of
expungement against the parties
requesting expungement relief.
*
*
*
*
*
Industry Code
dwashington3 on PROD1PC60 with NOTICES
13805. Expungement of Customer
Dispute Information under Rule 2130
In order to grant expungement of
customer dispute information under
Rule 2130, the panel must:
(a) Hold a recorded hearing session
(by telephone or in person) regarding
the appropriateness of expungement.
This paragraph will apply to cases
administered under Rule 13800 even if
a claimant did not request a hearing on
the merits.
(b) In cases involving settlements,
review settlement documents and
consider the amount of payments made
to any party and any other terms and
conditions of a settlement.
(c) Indicate in the arbitration award
which of the Rule 2130 grounds for
expungement serve(s) as the basis for its
expungement order and provide a brief
written explanation of the reason(s) for
its finding that one or more Rule 2130
grounds for expungement applies to the
facts of the case.
(d) Assess all forum fees for hearing
sessions in which the sole topic is the
determination of the appropriateness of
expungement against the parties
requesting expungement relief.
*
*
*
*
*
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
VerDate Aug<31>2005
13:19 Dec 24, 2008
Jkt 217001
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 the process of developing
the 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.
On September 25, 2008, the
Commission approved, among other
matters, a proposed rule change to adopt
the NASD Codes as FINRA rules into a
new consolidated rulebook.6 Those
rules will be implemented on December
15, 2008.7
The Commission approved new Rules
12805 and 13805 of the NASD Codes,
which FINRA has not yet made
effective.8 In a Regulatory Notice to be
issued on December 15, 2008, FINRA
will announce the effective date for new
Rules 12805 and 13805. The proposed
rule change would permit FINRA to
include new Rules 12805 and 13805
with the rules that will be implemented
in the Consolidated FINRA Rulebook on
December 15, 2008.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
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. 58643
(September 25, 2008), 73 FR 57174 (October 1,
2008) (Order Approving File No. SR–FINRA–2008–
021).
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. 58886
(October 30, 2008), 73 FR 66086 (November 6, 2008)
(Order Approving File No. SR–FINRA–2008–010).
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
of Section 15A(b)(6) of the Act,9 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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 10 and paragraph (f)(3) of Rule
19b–4 thereunder.11 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:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–FINRA–2008–063 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.
9 15
U.S.C. 78o–3(b)(6).
U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(3).
10 15
E:\FR\FM\29DEN1.SGM
29DEN1
Federal Register / Vol. 73, No. 249 / Monday, December 29, 2008 / Notices
All submissions should refer to File
Number SR–FINRA–2008–063. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room 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–2008–063 and
should be submitted on or before
January 20, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence Harmon,
Acting Secretary.
[FR Doc. E8–30785 Filed 12–24–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59119; File No. SR–FINRA–
2008–061]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Proposed Rule Change To Adopt
FINRA Rule 5240 (Anti Intimidation /
Coordination) in the Consolidated
FINRA Rulebook
dwashington3 on PROD1PC60 with NOTICES
December 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 December
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<31>2005
13:19 Dec 24, 2008
Jkt 217001
11, 2008, 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. 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 adopt
Interpretive Material (‘‘IM’’) 2110–5
(Anti-Intimidation/Coordination) as a
FINRA rule in the consolidated FINRA
rulebook without material change. The
proposed rule change would renumber
IM–2110–5 as FINRA Rule 5240 in the
consolidated FINRA rulebook.
The text of the proposed rule change
is attached as Exhibit 5.3
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
As part of the process of developing
a new consolidated rulebook
(‘‘Consolidated FINRA Rulebook’’),4
FINRA is proposing to adopt IM–2110–
3 The Commission notes that while provided in
Exhibit 5, the text of the proposed rule change is
also available at FINRA, the Commission’s Public
Reference Room, and https://www.finra.org.
4 The current FINRA rulebook consists of (1)
FINRA Rules; (2) NASD Rules; and (3) 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’’).
The FINRA Rules apply to all FINRA members,
unless such rules have a more limited application
by their terms. For more information about the
rulebook consolidation process, see FINRA
Information Notice, March 12, 2008 (Rulebook
Consolidation Process).
PO 00000
Frm 00091
Fmt 4703
Sfmt 4703
79527
5 as FINRA Rule 5240 without material
change.
In 1996, the SEC issued a report
pursuant to Section 21(a) of the Act 5
regarding NASD, the Nasdaq market,
and the activities of certain Nasdaq
market makers that impeded price
competition in the Nasdaq market.6 In
conjunction with the report, the SEC
also issued an order pursuant to Section
19(h)(1) of the Act 7 that made findings
regarding the activities and imposed
remedial sanctions on FINRA (then
NASD).8 As part of that order, FINRA
agreed to certain undertakings,
including an undertaking to ‘‘propose a
rule or rule interpretation for
Commission approval which expressly
makes unlawful the coordination by or
among market makers of their quotes,
trades and trade reports, and which
prohibits retribution or retaliatory
conduct for competitive actions of
another market maker or other market
participant.’’ To comply with this
undertaking, FINRA proposed IM–
2110–5, which was approved by the
SEC on July 17, 1997.9
IM–2110–5 identifies three general
types of conduct that are inconsistent
with just and equitable principles of
trade: 10 (1) Coordinating activities by
members involving quotations, prices,
trades, and trade reporting (e.g.,
agreements to report trades inaccurately
or maintain certain minimum spreads);
(2) ‘‘directing or requesting’’ another
member to alter prices or quotations;
and (3) engaging in conduct that
threatens, harasses, coerces, intimidates,
or otherwise attempts improperly to
influence another member or person
associated with a member. The IM also
sets forth seven specific exclusions that
identify bona fide commercial activity
that is permitted (e.g., bona fide
5 15
U.S.C. 78u(a).
Report pursuant to Section 21(a) of the
Exchange Act regarding NASD and The Nasdaq
Stock Market, Inc., Securities Exchange Act Release
No. 37542 (August 8, 1996).
7 15 U.S.C. 78s(h)(1).
8 See In the Matter of National Association of
Securities Dealers, Inc., Administrative Proceeding
File No. 3–9056, Securities Exchange Act Release
No. 37538 (August 8, 1996).
9 See Securities Exchange Act Release No. 38845
(July 17, 1997), 62 FR 39564 (July 23, 1997).
10 NASD Rule 2110 requires members to ‘‘observe
high standards of commercial honor and just and
equitable principles of trade.’’ On September 25,
2008, the Commission approved adopting NASD
Rule 2110 into the Consolidated FINRA Rulebook
as FINRA Rule 2010 without substantive change.
See Securities Exchange Act Release No. 58643
(September 25, 2008), 73 FR 57174 (October 1,
2008). That rule change will take effect on
December 15, 2008. See FINRA Regulatory Notice
08–57 (October 2008). The Commission notes that
this rule change became effective on December 15,
2008.
6 See
E:\FR\FM\29DEN1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 249 (Monday, December 29, 2008)]
[Notices]
[Pages 79525-79527]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-30785]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59108; File No. SR-FINRA-2008-063]
Self-Regulatory Organizations: Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change Relating to Adoption of NASD Rules 12805 and 13805
as FINRA Rules in the New Consolidated FINRA Rulebook
December 16, 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 15, 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 concerned solely with the
administration of the self-regulatory organization under Section
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(3) thereunder,\4\ which
renders the proposal effective upon receipt of this filing by 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)(3).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to adopt Rule 12805 of the NASD Code of
Arbitration Procedure for Customer Disputes (``Customer Code'') and
Rule 13805 of the NASD Code of Arbitration Procedure for Industry
Disputes (``Industry Code'') (collectively, the ``NASD Codes'') as
FINRA rules into a new consolidated rulebook. Below is the text of
Rules 12805 and 13805. FINRA is not proposing any changes to the rule
text.
* * * * *
Customer Code
12805. Expungement of Customer Dispute Information under Rule 2130
In order to grant expungement of customer dispute information under
Rule 2130, the panel must:
[[Page 79526]]
(a) Hold a recorded hearing session (by telephone or in person)
regarding the appropriateness of expungement. This paragraph will apply
to cases administered under Rule 12800 even if a customer did not
request a hearing on the merits.
(b) In cases involving settlements, review settlement documents and
consider the amount of payments made to any party and any other terms
and conditions of a settlement.
(c) Indicate in the arbitration award which of the Rule 2130
grounds for expungement serve(s) as the basis for its expungement order
and provide a brief written explanation of the reason(s) for its
finding that one or more Rule 2130 grounds for expungement applies to
the facts of the case.
(d) Assess all forum fees for hearing sessions in which the sole
topic is the determination of the appropriateness of expungement
against the parties requesting expungement relief.
* * * * *
Industry Code
13805. Expungement of Customer Dispute Information under Rule 2130
In order to grant expungement of customer dispute information under
Rule 2130, the panel must:
(a) Hold a recorded hearing session (by telephone or in person)
regarding the appropriateness of expungement. This paragraph will apply
to cases administered under Rule 13800 even if a claimant did not
request a hearing on the merits.
(b) In cases involving settlements, review settlement documents and
consider the amount of payments made to any party and any other terms
and conditions of a settlement.
(c) Indicate in the arbitration award which of the Rule 2130
grounds for expungement serve(s) as the basis for its expungement order
and provide a brief written explanation of the reason(s) for its
finding that one or more Rule 2130 grounds for expungement applies to
the facts of the case.
(d) Assess all forum fees for hearing sessions in which the sole
topic is the determination of the appropriateness of expungement
against the parties requesting expungement relief.
* * * * *
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 the process of developing the 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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
On September 25, 2008, the Commission approved, among other
matters, a proposed rule change to adopt the NASD Codes as FINRA rules
into a new consolidated rulebook.\6\ Those rules will be implemented on
December 15, 2008.\7\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 58643 (September 25,
2008), 73 FR 57174 (October 1, 2008) (Order Approving File No. SR-
FINRA-2008-021).
\7\ See FINRA Regulatory Notice 08-57 (October 2008) (FINRA
Announces SEC Approval and Effective Date for New Consolidated FINRA
Rules).
---------------------------------------------------------------------------
The Commission approved new Rules 12805 and 13805 of the NASD
Codes, which FINRA has not yet made effective.\8\ In a Regulatory
Notice to be issued on December 15, 2008, FINRA will announce the
effective date for new Rules 12805 and 13805. The proposed rule change
would permit FINRA to include new Rules 12805 and 13805 with the rules
that will be implemented in the Consolidated FINRA Rulebook on December
15, 2008.
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\8\ See Securities Exchange Act Release No. 58886 (October 30,
2008), 73 FR 66086 (November 6, 2008) (Order Approving File No. SR-
FINRA-2008-010).
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2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\9\ 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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\9\ 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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and paragraph (f)(3) of Rule 19b-4
thereunder.\11\ 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.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(3).
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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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-FINRA-2008-063 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.
[[Page 79527]]
All submissions should refer to File Number SR-FINRA-2008-063. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room 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-2008-063
and should be submitted on or before January 20, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence Harmon,
Acting Secretary.
[FR Doc. E8-30785 Filed 12-24-08; 8:45 am]
BILLING CODE 8011-01-P
