Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Reflect the Closing of the FINRA/NSX Trade Reporting Facility on December 31, 2008, 840-842 [E9-82]
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Federal Register / Vol. 74, No. 5 / Thursday, January 8, 2009 / Notices
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[FR Doc. E9–111 Filed 1–7–09; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59175; File No. SR–FINRA–
2008–066]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Reflect the Closing of
the FINRA/NSX Trade Reporting
Facility on December 31, 2008
December 30, 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
23, 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 and
II below, which Items have been
prepared by FINRA. FINRA submitted
the proposed rule change under Section
19(b)(3)(A) of the Act and Rule 19b–
4(f)(6) 3 thereunder, 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’s proposed rule change reflects
the closing of the FINRA/NSX Trade
Reporting Facility (the ‘‘FINRA/NSX
TRF’’) as of the close of business on
December 31, 2008. The text of the
proposed rule change is attached as
Exhibit 5.4
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,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
4 The Commission notes that while provided in
Exhibit 5 to the filing, the text of the proposed rule
change is not attached to this notice but is available
at FINRA, the Commission’s Public Reference
Room, and at https://www.finra.org.
2 17
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Federal Register / Vol. 74, No. 5 / Thursday, January 8, 2009 / Notices
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
erowe on PROD1PC63 with NOTICES
1. Purpose
The FINRA/NSX TRF was approved
by the SEC 5 and commenced operation
in November 2006 to provide members
a mechanism for reporting locked-in
trades in NMS stocks, as defined in Rule
600(b)(47) of SEC Regulation NMS,
effected otherwise than on an exchange.
The National Stock Exchange, Inc.
(‘‘NSX’’), the ‘‘Business Member’’ under
the FINRA/NSX Trade Reporting
Facility LLC Agreement (the ‘‘LLC
Agreement’’),6 has determined to close
the FINRA/NSX TRF for business
reasons, and as of the close of business
on December 31, 2008, the FINRA/NSX
TRF will cease accepting trade reports.7
FINRA members have been given
notice of the anticipated closing and
were further notified that any members
using the FINRA/NSX TRF to report
trades are required to find an alternative
mechanism to satisfy their trade
reporting obligations. FINRA and NSX
staff are working to ensure that members
reporting trades to the FINRA/NSX TRF
are transitioned to another FINRA
facility. Notwithstanding the closing of
the FINRA/NSX TRF, FINRA is able to
fulfill all of its regulatory obligations
with respect to over-the-counter trade
reporting through its other facilities, i.e.,
the Alternative Display Facility, the
FINRA/Nasdaq Trade Reporting Facility
and the FINRA/NYSE Trade Reporting
Facility (the ‘‘FINRA/NYSE TRF’’).
Accordingly, FINRA is proposing to
delete the FINRA Rule 6300B and 7200B
Series relating to trade reporting to the
FINRA/NSX TRF and the FINRA Rule
7600B Series relating to fees and credits
for use of the FINRA/NSX TRF from the
Consolidated FINRA Rulebook.8 FINRA
5 See Securities Exchange Act Release No. 54715
(November 6, 2006), 71 FR 66354 (November 14,
2006) (order approving SR–NASD–2006–108).
6 FINRA notes that the LLC Agreement appears in
its manual as the NASD/NSX Trade Reporting
Facility LLC Agreement.
7 Although the FINRA/NSX TRF will cease
operating on December 31, 2008, pursuant to the
termination provisions in the LLC Agreement, the
FINRA/NSX Trade Reporting Facility LLC will
continue its corporate existence until no later than
November 17, 2009.
8 On September 25, 2008, the SEC approved
proposed rule change SR–FINRA–2008–021, which
adopts 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–
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13:57 Jan 07, 2009
Jkt 217001
also is proposing to delete the LLC
Agreement from its manual. The
proposed rule change will ensure that
FINRA rules accurately reflect only the
FINRA facilities that are available to
members for trade reporting.
In addition, to eliminate gaps in the
numbering of the Consolidated FINRA
Rulebook, FINRA is proposing to
renumber the FINRA Rule 6200C, 7300C
and 7600C Series relating to the FINRA/
NYSE TRF as the Rule 6200B, 7300B
and 7600B Series. FINRA is proposing
no substantive changes to those rules.9
FINRA has filed the proposed rule
change for immediate effectiveness and
requested a waiver of the 30-day
operative delay so that the proposed
rule change will be operative on January
1, 2009.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,10 which
requires, among other things, that
FINRA rules 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 by deleting rules
upon the closing of the FINRA/NSX
TRF, the proposed rule change will
prevent potential member confusion
and trade reporting errors and
violations.
FINRA–2008–026; SR–FINRA–2008–028; and SR–
FINRA–2008–029) (the ‘‘Consolidation Proposals’’).
The Consolidation Proposals were implemented on
December 15, 2008. See Regulatory Notice 08–57
(October 2008).
9 On November 5, 2008, the SEC approved
proposed rule change SR–FINRA–2008–011, which
amends the FINRA Rule 6300B and 7200B Series
(relating to the FINRA/NSX TRF) and the FINRA
Rule 6300C and 7200C Series (relating to the
FINRA/NYSE TRF). See Securities Exchange Act
Release No. 58903 (November 5, 2008), 73 FR 67905
(November 17, 2008) (order approving SR–FINRA–
2008–011); and Securities Exchange Act Release
No. 58903A (November 13, 2008), 73 FR 69700
(November 19, 2008) (correction to order approving
SR–FINRA–2008–011). The implementation date of
SR–FINRA–2008–011 will be announced in a
Regulatory Notice and will be between six and nine
months from the date of SEC approval.
Additionally, FINRA filed proposed rule change
SR–FINRA–2008–060 for immediate effectiveness
on December 11, 2008 (available at https://
www.finra.org/Industry/Regulation/RuleFilings/
2008/P117527). SR–FINRA–2008–060 amends the
FINRA Rule 6300B and 6300C Series and will be
operative 30 days after the date of filing.
The changes to the FINRA/NSX TRF rules
adopted pursuant to SR–FINRA–2008–011 and SR–
FINRA–2008–060 will not be implemented. FINRA
will file a separate proposed rule change to make
conforming changes to the FINRA/NYSE TRF rules,
as renumbered pursuant to this filing, in accordance
with SR–FINRA–2008–011 and SR–FINRA–2008–
060.
10 15 U.S.C. 78o–3(b)(6).
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841
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
FINRA has filed the proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act 11 and subparagraph (f)(6) of
Rule 19b–4 thereunder.12 Because
FINRA has designated the foregoing
proposed rule change as one that: (1)
Does not significantly affect the
protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) does not become operative for 30
days from 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 and Rule 19b–
4(f)(6) thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. FINRA
has asked the Commission to waive the
30-day operative delay to expedite the
deletion of rules that apply to the
FINRA/NSX TRF, a FINRA facility that
will cease operations on December 31,
2008. FINRA believes that the deletion
of the rule will prevent potential
member confusion, and trade reporting
errors and violations.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because the proposal will delete rules
that apply to the FINRA/NSX TRF, a
FINRA facility that will cease operations
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
13 As required under Rule 19b–4(f)(6)(iii), the
Exchange has provided the Commission with
written notice of its intent to file the proposed rule
change at least five business days prior to the filing
of the proposed rule change.
12 17
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842
Federal Register / Vol. 74, No. 5 / Thursday, January 8, 2009 / Notices
on December 31, 2008.14 Accordingly,
the Commission believes that the
proposal will ensure that FINRA’s rules
accurately reflect the FINRA trade
reporting facilities that will be in
operation currently and available to
accept trade reports. For these reasons,
the Commission designates the proposal
to be operative on filing with the
Commission.
At any time within 60 days of the
filing of such proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–2008–066 on the
subject line.
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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–2008–066. 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
14 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. 15 U.S.C. 78c(f).
VerDate Nov<24>2008
13:57 Jan 07, 2009
Jkt 217001
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 the filing will also be available
for inspection and copying at the
principal office of the self-regulatory
organization. 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–
2008–066 and should be submitted on
or before January 29, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Acting Secretary.
[FR Doc. E9–82 Filed 1–7–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59183; File No. SR–FINRA–
2008–68]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Pilot
Regarding the Use of Multiple MPIDs
on the Trade Reporting Facilities and
the Alternative Display Facility
December 30, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on December
29, 2008, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) (f/k/a
National Association of Securities
Dealers, Inc. (‘‘NASD’’)) filed with the
Securities and Exchange Commission
(the ‘‘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 ‘‘non-controversial’’ rule
change under paragraph (f)(6) of Rule
19b–4 under the Act,3 which renders
the proposal effective upon receipt of
this filing by the Commission. The
Commission is publishing this notice to
15 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
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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 extend through
January 29, 2010, the current rules
regarding the use of multiple Market
Participant Symbols (‘‘MPIDs’’) in
FINRA Rules 6160 (with respect to
Trade Reporting Facilities (‘‘TRFs’’))
and 6170 (with respect to the
Alternative Display Facility (‘‘ADF’’)).
The text of the proposed rule change
is available at FINRA’s Web site at
https://www.finra.org, at the principal
offices 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 those
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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
(a) FINRA Rule 6160
Rule 6160 (Multiple MPIDs for Trade
Reporting Facility Participants) provides
that any Trade Reporting Facility
Participant that wishes to use more than
one MPID for purposes of reporting
trades to a TRF must submit a written
request to, and obtain approval from,
FINRA Operations for such additional
MPIDs. In addition, Supplementary
Material to the rule states that FINRA
considers the issuance of, and trade
reporting with, multiple MPIDs to be a
privilege and not a right. A Trade
Reporting Facility Participant must
identify the purpose(s) and system(s) for
which the multiple MPIDs will be used.
If FINRA determines that the use of
multiple MPIDs is detrimental to the
marketplace, or that a Trade Reporting
Facility Participant is using one or more
additional MPIDs improperly or for
other than the purpose(s) identified by
the Participant, FINRA staff retains full
discretion to limit or withdraw its grant
of the additional MPID(s) to such Trade
E:\FR\FM\08JAN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 5 (Thursday, January 8, 2009)]
[Notices]
[Pages 840-842]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-82]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59175; File No. SR-FINRA-2008-066]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Reflect the Closing of the FINRA/NSX Trade
Reporting Facility on December 31, 2008
December 30, 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 23, 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 and
II below, which Items have been prepared by FINRA. FINRA submitted the
proposed rule change under Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) \3\ thereunder, 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\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA's proposed rule change reflects the closing of the FINRA/NSX
Trade Reporting Facility (the ``FINRA/NSX TRF'') as of the close of
business on December 31, 2008. The text of the proposed rule change is
attached as Exhibit 5.\4\
---------------------------------------------------------------------------
\4\ The Commission notes that while provided in Exhibit 5 to the
filing, the text of the proposed rule change is not attached to this
notice but is available at FINRA, the Commission's Public Reference
Room, and at https://www.finra.org.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B,
[[Page 841]]
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
The FINRA/NSX TRF was approved by the SEC \5\ and commenced
operation in November 2006 to provide members a mechanism for reporting
locked-in trades in NMS stocks, as defined in Rule 600(b)(47) of SEC
Regulation NMS, effected otherwise than on an exchange. The National
Stock Exchange, Inc. (``NSX''), the ``Business Member'' under the
FINRA/NSX Trade Reporting Facility LLC Agreement (the ``LLC
Agreement''),\6\ has determined to close the FINRA/NSX TRF for business
reasons, and as of the close of business on December 31, 2008, the
FINRA/NSX TRF will cease accepting trade reports.\7\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 54715 (November 6,
2006), 71 FR 66354 (November 14, 2006) (order approving SR-NASD-
2006-108).
\6\ FINRA notes that the LLC Agreement appears in its manual as
the NASD/NSX Trade Reporting Facility LLC Agreement.
\7\ Although the FINRA/NSX TRF will cease operating on December
31, 2008, pursuant to the termination provisions in the LLC
Agreement, the FINRA/NSX Trade Reporting Facility LLC will continue
its corporate existence until no later than November 17, 2009.
---------------------------------------------------------------------------
FINRA members have been given notice of the anticipated closing and
were further notified that any members using the FINRA/NSX TRF to
report trades are required to find an alternative mechanism to satisfy
their trade reporting obligations. FINRA and NSX staff are working to
ensure that members reporting trades to the FINRA/NSX TRF are
transitioned to another FINRA facility. Notwithstanding the closing of
the FINRA/NSX TRF, FINRA is able to fulfill all of its regulatory
obligations with respect to over-the-counter trade reporting through
its other facilities, i.e., the Alternative Display Facility, the
FINRA/Nasdaq Trade Reporting Facility and the FINRA/NYSE Trade
Reporting Facility (the ``FINRA/NYSE TRF'').
Accordingly, FINRA is proposing to delete the FINRA Rule 6300B and
7200B Series relating to trade reporting to the FINRA/NSX TRF and the
FINRA Rule 7600B Series relating to fees and credits for use of the
FINRA/NSX TRF from the Consolidated FINRA Rulebook.\8\ FINRA also is
proposing to delete the LLC Agreement from its manual. The proposed
rule change will ensure that FINRA rules accurately reflect only the
FINRA facilities that are available to members for trade reporting.
---------------------------------------------------------------------------
\8\ On September 25, 2008, the SEC approved proposed rule change
SR-FINRA-2008-021, which adopts 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) (the
``Consolidation Proposals''). The Consolidation Proposals were
implemented on December 15, 2008. See Regulatory Notice 08-57
(October 2008).
---------------------------------------------------------------------------
In addition, to eliminate gaps in the numbering of the Consolidated
FINRA Rulebook, FINRA is proposing to renumber the FINRA Rule 6200C,
7300C and 7600C Series relating to the FINRA/NYSE TRF as the Rule
6200B, 7300B and 7600B Series. FINRA is proposing no substantive
changes to those rules.\9\
---------------------------------------------------------------------------
\9\ On November 5, 2008, the SEC approved proposed rule change
SR-FINRA-2008-011, which amends the FINRA Rule 6300B and 7200B
Series (relating to the FINRA/NSX TRF) and the FINRA Rule 6300C and
7200C Series (relating to the FINRA/NYSE TRF). See Securities
Exchange Act Release No. 58903 (November 5, 2008), 73 FR 67905
(November 17, 2008) (order approving SR-FINRA-2008-011); and
Securities Exchange Act Release No. 58903A (November 13, 2008), 73
FR 69700 (November 19, 2008) (correction to order approving SR-
FINRA-2008-011). The implementation date of SR-FINRA-2008-011 will
be announced in a Regulatory Notice and will be between six and nine
months from the date of SEC approval.
Additionally, FINRA filed proposed rule change SR-FINRA-2008-060
for immediate effectiveness on December 11, 2008 (available at
https://www.finra.org/Industry/Regulation/RuleFilings/2008/P117527).
SR-FINRA-2008-060 amends the FINRA Rule 6300B and 6300C Series and
will be operative 30 days after the date of filing.
The changes to the FINRA/NSX TRF rules adopted pursuant to SR-
FINRA-2008-011 and SR-FINRA-2008-060 will not be implemented. FINRA
will file a separate proposed rule change to make conforming changes
to the FINRA/NYSE TRF rules, as renumbered pursuant to this filing,
in accordance with SR-FINRA-2008-011 and SR-FINRA-2008-060.
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FINRA has filed the proposed rule change for immediate
effectiveness and requested a waiver of the 30-day operative delay so
that the proposed rule change will be operative on January 1, 2009.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\10\ which requires, among
other things, that FINRA rules 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 by deleting rules upon the closing
of the FINRA/NSX TRF, the proposed rule change will prevent potential
member confusion and trade reporting errors and violations.
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\10\ 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
FINRA has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \11\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\12\ Because FINRA has designated the foregoing proposed
rule change as one that: (1) Does not significantly affect the
protection of investors or the public interest; (2) does not impose any
significant burden on competition; and (3) does not become operative
for 30 days from 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 and Rule 19b-4(f)(6)
thereunder.\13\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ As required under Rule 19b-4(f)(6)(iii), the Exchange has
provided the Commission with written notice of its intent to file
the proposed rule change at least five business days prior to the
filing of the proposed rule change.
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. FINRA has asked the Commission to
waive the 30-day operative delay to expedite the deletion of rules that
apply to the FINRA/NSX TRF, a FINRA facility that will cease operations
on December 31, 2008. FINRA believes that the deletion of the rule will
prevent potential member confusion, and trade reporting errors and
violations.
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because the proposal will delete rules that apply to the FINRA/NSX TRF,
a FINRA facility that will cease operations
[[Page 842]]
on December 31, 2008.\14\ Accordingly, the Commission believes that the
proposal will ensure that FINRA's rules accurately reflect the FINRA
trade reporting facilities that will be in operation currently and
available to accept trade reports. For these reasons, the Commission
designates the proposal to be operative on filing with the Commission.
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\14\ 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. 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of such proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
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-2008-066 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-2008-066. 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 the filing will also be available for
inspection and copying at the principal office of the self-regulatory
organization. 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-2008-066 and should be submitted on or before January 29, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Florence E. Harmon,
Acting Secretary.
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\15\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-82 Filed 1-7-09; 8:45 am]
BILLING CODE 8011-01-P
