Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Non-Substantive, Technical Changes to FINRA Trade Reporting Rules Upon Implementation of SR-FINRA-2008-011, 19249-19251 [E9-9559]
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Federal Register / Vol. 74, No. 80 / Tuesday, April 28, 2009 / Notices
erowe on PROD1PC64 with NOTICES
introducing the potential to game the
system due to wider spreads between
bid and offer prices, resulting in
allowing someone to take advantage of
those inadvertently caught in a fail
situation.
In response to these concerns, FICC
noted that FICC’s delivery allocation
process, a process that matches buy
obligations to sell obligations and is
applicable to all members, is necessary
to ensure that the clearing corporation
remains flat. Accordingly, FICC
contends, the fails charge would not
have any unique impact on the
commenter’s firm. With regards to the
concern that the fails charge may result
in firms shifting their business away
from FICC in order to avoid a fails
charge, FICC agrees that applying the
fails charge as proposed by the rule
would result in adverse consequences if
the rest of the industry does not adopt
it. However, FICC argues, FICC would
cease applying the charge if the Credit
and Market Risk Management
Committee of FICC’s Board of Directors
determines that industry events or
practices warrant such a revocation.
Finally, FICC rejected the commenters
assertions regarding the proposed rule
change’s effect on market liquidity and
providing new opportunities for firms to
‘‘game’’ the system as ‘‘highly
speculative.’’ Even if these adverse
effects developed, FICC argues that it
would be able to respond by eliminating
the fails charge or taking other
appropriate action.
IV. Discussion
Section 17A(b)(3)(F) of the Act
requires, among other things, that the
rules of a clearing agency be designed to
promote the prompt and accurate
clearance and settlement of securities
transactions, assure the safeguarding of
securities and funds which are in the
custody or control of the clearing agency
or for which it is responsible, to foster
cooperation and coordination with
persons engaged in the clearance and
settlement of securities transactions, to
remove impediments to and perfect the
mechanism of a national system for the
prompt and accurate clearance and
settlement of securities transactions,
and, in general, to protect investors and
the public interest.6 The Commission
believes the rule change is consistent
with Act because the fails-to-deliver
charge should discourage firms from
creating and maintaining persistent
fails-to-deliver in treasury securities,
which if permitted to subsist, may
adversely affect FICC’s ability to
safeguard securities or funds in FICC’s
6 15
U.S.C. 78q(b)(3)(F).
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15:33 Apr 27, 2009
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control or for which it is responsible
and to promptly and accurately clear
and settle securities transactions. In the
event that the rule change does not have
the intended affect or produces other
undesirable consequences, FICC has the
ability to eliminate the rule or take other
appropriate action to address any
ensuing problems.7
Accordingly, for the reasons stated
above the Commission believes that the
rule change is consistent with FICC’s
obligation under Section 17A of the Act.
V. Conclusion
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 with the requirements of
Section 17A of the Act and the rules and
regulations thereunder.8
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (File No. SR–
FICC–2008–03) be and hereby is
approved.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–9557 Filed 4–27–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59805; File No. SR–FINRA–
2009–027]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Make NonSubstantive, Technical Changes to
FINRA Trade Reporting Rules Upon
Implementation of SR–FINRA–2008–
011
April 21, 2009.
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 April 16,
2009, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) (f/k/a
7 Elimination or modification of the fails-todeliver charge would require FICC to file a
proposed rule change pursuant to Section 19(b) of
the Act.
8 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).
9 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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19249
National Association of Securities
Dealers, Inc. (‘‘NASD’’)) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II
and III below, which Items have been
prepared by FINRA. FINRA has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
change under Section 19(b)(3)(A) of the
Act3 and paragraph (f)(6) 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 (1) replace
references to ‘‘MMID’’ or ‘‘OEID’’ in
Rules 6282, 7130, 7230A, 7230B and
7330 that will be obsolete upon the
implementation of proposed rule change
SR–FINRA–2008–011; and (2) update
rule cross-references in Rules 6380B and
7230B, as amended pursuant to SR–
FINRA–2008–011.5
The text of the proposed rule change
is available on FINRA’s Web site at
https://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
On November 5, 2008, the SEC
approved amendments to FINRA trade
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 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). SR–FINRA–2008–011 will be
implemented on August 3, 2009. See FINRA
Regulatory Notice 09–08 (January 2009).
4 17
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Federal Register / Vol. 74, No. 80 / Tuesday, April 28, 2009 / Notices
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reporting rules applicable to over-thecounter (‘‘OTC’’) equity transactions 6 to
(1) replace the current market makerbased trade reporting structure with an
‘‘executing party’’ structure; and (2)
require members with the trade
reporting obligation under FINRA rules
that are acting in a riskless principal or
agency capacity on behalf of one or
more other member firms to submit nontape report(s) to FINRA, as necessary, to
identify such other member firm(s) as a
party to the trade.
This proposed rule change would
make technical, non-substantive
changes to certain FINRA rules upon the
implementation of SR–FINRA–2008–
011. Specifically, FINRA is proposing to
delete the references to ‘‘MMID’’ and
‘‘OEID’’ in Rules 6282(c) and (d),
7130(b), 7230A(d), 7230B(d) and
7330(d). When the market maker-based
trade reporting structure is replaced
with the executing party structure,
references to ‘‘MMID’’ (which
corresponds to the ‘‘market maker’’ side)
and ‘‘OEID’’ (which corresponds to the
‘‘order entry’’ side) will be obsolete, and
they will be deleted from the revised
system technical specifications for the
FINRA Facilities. As such, FINRA is
proposing to amend the rules to refer to
the Reporting Member (denoted as the
‘‘Executing Party’’ or ‘‘EPID’’) and the
Non-Reporting Member or Party, as
applicable (denoted as the ‘‘Contra
Party’’ or ‘‘CPID’’).
In this regard, FINRA also is
proposing to amend Rule 6282 to (1)
replace references in paragraphs (c) and
(d) to ‘‘Non-Reporting Member’’ with
‘‘Non-Reporting Member (or other
contra party),’’ where applicable, to
clarify that the contra party to a trade
may not always be a FINRA member,
and (2) replace references in paragraph
(c) to ‘‘Reporting FINRA Member’’ with
‘‘Reporting Member’’ to maintain
consistency in the terminology used in
the rule.7
In addition, on December 22, 2008,
FINRA filed proposed rule change SR–
FINRA–2008–066 to reflect the closing
of the FINRA/NSX TRF. As part of that
proposed rule change, FINRA proposed
6 OTC equity transactions include transactions in
NMS stocks effected otherwise than on an
exchange, which are reported through the
Alternative Display Facility (‘‘ADF’’) or a Trade
Reporting Facility (‘‘TRF’’), and transactions in OTC
Equity Securities, as defined in Rule 6420, which
are reported through the OTC Reporting Facility
(‘‘ORF’’). The ADF, TRFs and ORF are collectively
referred to herein as the ‘‘FINRA Facilities.’’
7 FINRA also is proposing technical amendments
to correct the cross-references in paragraphs (c) and
(d) of Rule 6282 that incorrectly refer to numbered
subparagraphs of (e) and (f), respectively; these
cross-references should refer to numbered
subparagraphs of (c) and (d), respectively.
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15:33 Apr 27, 2009
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to renumber the rules relating to the
FINRA/NYSE TRF, and Rules 6380C
and 7230C became Rules 6380B and
7230B, respectively.8 In this filing,
FINRA is proposing to update the crossreferences in Rules 6380B(d)(4) and
7230B(c), as amended pursuant to SR–
FINRA–2008–011, to reflect the
renumbering of the pertinent rules.
FINRA has filed the proposed rule
change for immediate effectiveness. The
proposed rule change will be operative
on August 3, 2009, the date on which
SR–FINRA–2008–011 will 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,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 trade
reporting 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 foregoing 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 from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
8 See Securities Exchange Act Release No. 59175
(December 30, 2008), 74 FR 840 (January 8, 2009)
(notice of filing and immediate effectiveness of SR–
FINRA–2008–066). SR–FINRA–2008–066 was filed
for immediate effectiveness with an operative date
of January 1, 2009.
9 15 U.S.C. 78o–3(b)(6).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
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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–2009–027 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–FINRA–2009–027. 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 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
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Federal Register / Vol. 74, No. 80 / Tuesday, April 28, 2009 / Notices
submissions should refer to File
Number SR–FINRA–2009–027 and
should be submitted on or before May
19, 2009.
The text of the proposed rule change
is below. Proposed new language is
italicized and proposed deletions are in
brackets.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–9559 Filed 4–27–09; 8:45 am]
4758. Order Routing
(a) Order Routing Process.
(1) The Order Routing Process shall be
available to Participants from 7:00 a.m.
until 8:00 p.m. Eastern Time, and shall
route orders as described below: All
routing of orders shall comply with Rule
611 of Regulation NMS under the
Exchange Act.
(A) The System provides three routing
options. Of these three, DOT is only
available for orders ultimately sought to
be directed to either the New York Stock
Exchange (‘‘NYSE’’) or [the American
Stock Exchange (‘‘AMEX’’)] NYSE
Amex. The System will consider the
quotations only of accessible markets.
The three System routing options are:
(i) DOT (‘‘DOT’’)—under this option,
after checking the System for available
shares if so instructed by the entering
firm, orders are sent to other available
market centers for potential execution,
per entering firm’s instructions, before
being sent to the destination exchange,
so long as the price at such market
centers would not violate the Order
Protection Rule. Any un-executed
portion will thereafter be sent to the
NYSE or [AMEX] NYSE Amex, as
appropriate, at the order’s original limit
order price. This option may only be
used for orders with time-in-force
parameters of either SDAY, SIOC,
MDAY, MIOC, GTMC or market-onopen/close. Notwithstanding the
foregoing, orders designated for
participation in the NYSE or [AMEX]
NYSE Amex opening or closing
processes will not check the System for
available shares prior to routing.
(ii) Reactive Electronic Only
(‘‘STGY’’)—under this option, after
checking the System for available shares
if so instructed by the entering firm,
orders are sent to other available market
centers for potential execution, per
entering firm’s instructions. When
checking the book, the System will seek
to execute at the price it would send the
order to a destination market center. If
shares remain un-executed after routing,
they are posted on the book. Once on
the book, should the order subsequently
be locked or crossed by another
accessible market center, the System
shall route the order to the locking or
crossing market center. With the
exception of the Minimum Quantity
order type, all time-in-force parameters
and order types may be used in
conjunction with this routing option.
(iii) Electronic Only Scan (‘‘SCAN’’)—
under this option, after checking the
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59807; File No. SR–
NASDAQ–2009–036]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Order Routing
April 21, 2009.
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 April 17,
2009, The NASDAQ Stock Market LLC
(‘‘NASDAQ’’) 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 NASDAQ. NASDAQ has designated
the proposed rule change as constituting
a non-controversial rule change under
Rule 19b–4(f)(6) under the Act,3 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.
erowe on PROD1PC64 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASDAQ proposes to modify Rule
4758, Order Routing, to provide market
participants with the option of entering
orders that do not check the Nasdaq
Market Center book prior to routing.
NASDAQ proposes to implement the
change with respect to Rule
4758(a)(1)(A)(i) on or about May 1,
2009, and will announce the exact date
of implementation in a NASDAQ Equity
Trader Alert. NASDAQ proposes to
implement the change with respect to
Rules 4758(a)(1)(A)(ii) and (iii) on a date
in May or June 2009, to be announced
in a NASDAQ Equity Trader Alert.
12 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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19251
System for available shares if so
instructed by the entering firm, orders
are sent to other available market
centers for potential execution, per
entering firm’s instructions, in
compliance with Rule 611 under
Regulation NMS. When checking the
book, the System will seek to execute at
the price it would send the order to a
destination market center. If shares
remain un-executed after routing, they
are posted on the book. Once on the
book, should the order subsequently be
locked or crossed by another market
center, the System will not route the
order to the locking or crossing market
center. With the exception of the
Minimum Quantity order type, all timein-force parameters and order types may
be used in conjunction with this routing
option.
Orders that do not check the System
for available shares prior to routing may
not be sent to a facility of an exchange
that is an affiliate of Nasdaq, except for
orders that are sent to the NASDAQ
OMX BX Equities Market.
(B) No change.
(b) No change.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NASDAQ 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.
NASDAQ 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
In SR–NASDAQ–2008–079,4
NASDAQ amended Rule 4758 to
provide that if an order is routed to the
New York Stock Exchange (‘‘NYSE’’) or
NYSE Amex and is designated as
eligible for posting to the NYSE or
NYSE Amex book, the order must check
the NASDAQ book prior to routing.
Routing of orders eligible to post at
NYSE or NYSE Amex is conducted
pursuant to NASDAQ’s DOT routing
strategy, as described in Rule
4 Securities Exchange Act Release No. 58721
(October 2, 2008), 73 FR 59696 (October 9, 2008)
(SR–NASDAQ–2008–079).
E:\FR\FM\28APN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 80 (Tuesday, April 28, 2009)]
[Notices]
[Pages 19249-19251]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-9559]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59805; File No. SR-FINRA-2009-027]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Make Non-Substantive, Technical Changes to
FINRA Trade Reporting Rules Upon Implementation of SR-FINRA-2008-011
April 21, 2009.
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 April 16, 2009, Financial Industry Regulatory Authority, Inc.
(``FINRA'') (f/k/a National Association of Securities Dealers, Inc.
(``NASD'')) filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by FINRA. FINRA has
designated the proposed rule change as constituting a ``non-
controversial'' rule change under Section 19(b)(3)(A) of the Act\3\ and
paragraph (f)(6) 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)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to (1) replace references to ``MMID'' or
``OEID'' in Rules 6282, 7130, 7230A, 7230B and 7330 that will be
obsolete upon the implementation of proposed rule change SR-FINRA-2008-
011; and (2) update rule cross-references in Rules 6380B and 7230B, as
amended pursuant to SR-FINRA-2008-011.\5\
---------------------------------------------------------------------------
\5\ 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). SR-FINRA-2008-011 will be implemented
on August 3, 2009. See FINRA Regulatory Notice 09-08 (January 2009).
---------------------------------------------------------------------------
The text of the proposed rule change is available on FINRA's Web
site at https://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
On November 5, 2008, the SEC approved amendments to FINRA trade
[[Page 19250]]
reporting rules applicable to over-the-counter (``OTC'') equity
transactions \6\ to (1) replace the current market maker-based trade
reporting structure with an ``executing party'' structure; and (2)
require members with the trade reporting obligation under FINRA rules
that are acting in a riskless principal or agency capacity on behalf of
one or more other member firms to submit non-tape report(s) to FINRA,
as necessary, to identify such other member firm(s) as a party to the
trade.
---------------------------------------------------------------------------
\6\ OTC equity transactions include transactions in NMS stocks
effected otherwise than on an exchange, which are reported through
the Alternative Display Facility (``ADF'') or a Trade Reporting
Facility (``TRF''), and transactions in OTC Equity Securities, as
defined in Rule 6420, which are reported through the OTC Reporting
Facility (``ORF''). The ADF, TRFs and ORF are collectively referred
to herein as the ``FINRA Facilities.''
---------------------------------------------------------------------------
This proposed rule change would make technical, non-substantive
changes to certain FINRA rules upon the implementation of SR-FINRA-
2008-011. Specifically, FINRA is proposing to delete the references to
``MMID'' and ``OEID'' in Rules 6282(c) and (d), 7130(b), 7230A(d),
7230B(d) and 7330(d). When the market maker-based trade reporting
structure is replaced with the executing party structure, references to
``MMID'' (which corresponds to the ``market maker'' side) and ``OEID''
(which corresponds to the ``order entry'' side) will be obsolete, and
they will be deleted from the revised system technical specifications
for the FINRA Facilities. As such, FINRA is proposing to amend the
rules to refer to the Reporting Member (denoted as the ``Executing
Party'' or ``EPID'') and the Non-Reporting Member or Party, as
applicable (denoted as the ``Contra Party'' or ``CPID'').
In this regard, FINRA also is proposing to amend Rule 6282 to (1)
replace references in paragraphs (c) and (d) to ``Non-Reporting
Member'' with ``Non-Reporting Member (or other contra party),'' where
applicable, to clarify that the contra party to a trade may not always
be a FINRA member, and (2) replace references in paragraph (c) to
``Reporting FINRA Member'' with ``Reporting Member'' to maintain
consistency in the terminology used in the rule.\7\
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\7\ FINRA also is proposing technical amendments to correct the
cross-references in paragraphs (c) and (d) of Rule 6282 that
incorrectly refer to numbered subparagraphs of (e) and (f),
respectively; these cross-references should refer to numbered
subparagraphs of (c) and (d), respectively.
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In addition, on December 22, 2008, FINRA filed proposed rule change
SR-FINRA-2008-066 to reflect the closing of the FINRA/NSX TRF. As part
of that proposed rule change, FINRA proposed to renumber the rules
relating to the FINRA/NYSE TRF, and Rules 6380C and 7230C became Rules
6380B and 7230B, respectively.\8\ In this filing, FINRA is proposing to
update the cross-references in Rules 6380B(d)(4) and 7230B(c), as
amended pursuant to SR-FINRA-2008-011, to reflect the renumbering of
the pertinent rules.
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\8\ See Securities Exchange Act Release No. 59175 (December 30,
2008), 74 FR 840 (January 8, 2009) (notice of filing and immediate
effectiveness of SR-FINRA-2008-066). SR-FINRA-2008-066 was filed for
immediate effectiveness with an operative date of January 1, 2009.
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FINRA has filed the proposed rule change for immediate
effectiveness. The proposed rule change will be operative on August 3,
2009, the date on which SR-FINRA-2008-011 will 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,\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 trade
reporting 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
Because the foregoing 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 from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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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 rule-comments@sec.gov. Please include
File Number SR-FINRA-2009-027 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2009-027. 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 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
[[Page 19251]]
submissions should refer to File Number SR-FINRA-2009-027 and should be
submitted on or before May 19, 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 E. Harmon,
Deputy Secretary.
[FR Doc. E9-9559 Filed 4-27-09; 8:45 am]
BILLING CODE 8010-01-P
