Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule Cross-References in FINRA Rules, 27215-27217 [E9-13252]
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Federal Register / Vol. 74, No. 108 / Monday, June 8, 2009 / Notices
cprice-sewell on PRODPC61 with NOTICES
IV. Discussion and Commission
Findings
After careful review of the proposed
rule change, the comment letters, and
FINRA’s response to comments, the
Commission finds that the proposal is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities association.16 In particular,
the Commission finds that the proposed
rule change is consistent with Section
15A(b)(6) of the Act,17 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.
Requiring broker-dealers that carry
customer accounts to provide customers
at least once each calendar year, or, for
certain broker-dealers that are
introducing firms as described in the
proposed rule, once at the time of initial
purchase, with written information
regarding the BrokerCheck hotline
number, FINRA’s Web site address, and
a statement regarding the availability of
an investor brochure describing
BrokerCheck, publicizes the availability
of information that helps investors
determine whether to conduct, or to
continue to conduct, business with a
FINRA member or associated person of
the member. In addition, the
Commission has found NASD Rule
2280, on which the proposed rule is
based, to be consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities association.18
The Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,19 for approving the proposal, as
modified by Amendment No. 1, prior to
the thirtieth day after the date of
publication of notice of filing of
Amendment No. 1 in the Federal
Register.20 Amendment No. 1
16 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
17 15 U.S.C. 78o–3(b)(6).
18 See Securities Exchange Act Release No. 39043
(September 10, 1997), 62 FR 48689 (September 16,
1997)(Order Approving Proposed Rule Change and
Notice of Filing and Order Granting Accelerated
Approval of Amendment No. 1 to the Proposed
Rule Change by the National Association of
Securities Dealers, Inc. Relating to the Distribution
of Information Concerning the Availability of the
NASD’s Public Disclosure Program).
19 15 U.S.C. 78s(b)(2).
20 Pursuant to Section 19(b)(2) of the Act, 15
U.S.C. 78s(b)(2), the Commission may not approve
any proposed rule change, or amendment thereto,
prior to the thirtieth day after the date of
publication of the notice thereof, unless the
Commission finds good cause for so doing.
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15:15 Jun 05, 2009
Jkt 217001
responded to the comments by tailoring
the requirement for firms whose contact
with customers is limited to introducing
customer accounts to be held directly at
an entity other than a FINRA member
and thereafter do not carry customer
accounts or hold customer funds but
that the customer, at the outset, still
receives the information. In addition,
the firms afforded the exception
proposed in Amendment No. 1 do not
have any obligation under current
NASD Rule 2280, so customers will still
be receiving more information than they
do presently. Therefore, the
Commission believes that it is in the
public interest to approve the proposal,
as modified by Amendment No. 1, on an
expedited basis.
V. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposal, as
modified by Amendment No. 1, 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
No. SR–FINRA–2008–062 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–2008–062. 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,
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
27215
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of FINRA. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–FINRA–2008–062 and
should be submitted on or before June
29, 2009.
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,21 that the
proposed rule change (SR–FINRA–
2008–062), as modified by Amendment
No. 1, be, and hereby is, approved on an
accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–13253 Filed 6–5–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60008; File No. SR–FINRA–
2009–033]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule CrossReferences in FINRA Rules
May 29, 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 May 13,
2009, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) 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 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
21 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
22 17
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27216
Federal Register / Vol. 74, No. 108 / Monday, June 8, 2009 / Notices
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 correct or
update certain rule cross-references in
certain FINRA rules that have been
adopted in the consolidated FINRA
rulebook.
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
cprice-sewell on PRODPC61 with NOTICES
FINRA is in process of developing a
new consolidated rulebook
(‘‘Consolidated FINRA Rulebook’’).4
That process involves FINRA submitting
to the Commission for approval a series
of proposed rule changes over time to
adopt rules in the Consolidated FINRA
Rulebook. The phased adoption and
implementation of those rules
necessitates periodic amendments to
update rule cross-references and other
non-substantive technical changes in
the Consolidated FINRA Rulebook.
The proposed rule change would
update rule cross-references in FINRA
Rules 2114 (Recommendations to
Customers in OTC Equity Securities)
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).
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15:15 Jun 05, 2009
Jkt 217001
and 9610 (Application for Exemptions).
The former FINRA rule was approved
by the Commission on March 19, 2009 5
and will become effective on June 15,
2009. Paragraph (e)(1)(B) of that rule
makes reference to FINRA Rule 4512(c);
however, the referenced rule has not yet
been adopted in the Consolidated
FINRA Rulebook, so the proposed rule
change would revert the reference to the
existing NASD Rule 3110(c)(4)—a nonsubstantive change. With respect to
FINRA Rule 9610, the proposed rule
change would update rule crossreferences to reflect the adoption of Rule
2114.
FINRA has filed the proposed rule
change for immediate effectiveness. The
implementation date will be June 15,
2009, the date on which the previously
approved rule change will also be
implemented.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,6 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. FINRA believes the
proposed rule change will provide
greater clarity to members and the
public regarding FINRA’s rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the 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
5 See Securities Exchange Act Release No. 59605
(March 19, 2009), 74 FR 13283 (March 26, 2009)
(Order Approving File No. SR–FINRA–2008–055).
6 15 U.S.C. 78o–3(b)(6).
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
19(b)(3)(A) of the Act 7 and Rule 19b–
4(f)(6) 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:
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–2009–033 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Florence E. Harmon, Deputy
Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–FINRA–2009–033. 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
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission written
notice of its intent to file the proposed rule change,
along with a brief description and text of the
proposed rule change, at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. FINRA has satisfied this notice
requirement.
8 17
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Federal Register / Vol. 74, No. 108 / Monday, June 8, 2009 / Notices
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of FINRA. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–FINRA–2009–033 and
should be submitted on or before June
29, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–13252 Filed 6–5–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60021; File No. SR–Phlx–
2009–40]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing of Proposed Rule Change as
Modified by Amendment No. 1 Thereto
Relating to Listing and Trading New
Currencies
June 1, 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 May 8,
2009, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III, below, which Items have been
prepared by the Exchange. The
Exchange filed Amendment No. 1 to the
proposal on May 29, 2009.3 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
cprice-sewell on PRODPC61 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Phlx rules to: (1) List and trade U.S.
dollar-settled foreign currency options
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The Commission notes that Amendment No.1
replaces and supersedes the initial filing in its
entirety.
1 15
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15:15 Jun 05, 2009
Jkt 217001
on the Brazilian real, Chinese yuan,4
Danish krone, New Zealand dollar,
Mexican peso, Norwegian krone,
Russian ruble, South African rand,
South Korean won, and Swedish krona
(the listed currencies are together
known as the ‘‘New Currencies’’) 5; (2)
clarify definitions regarding the
Currencies, (3) establish position and
exercise limits for the Currencies; (4)
clarify the uniform pricing convention
(methodology) for all Currencies; and (5)
delete obsolete and out of use references
regarding foreign currency products and
processes.
The Exchange also proposes to amend
Phlx Option Floor Procedure Advices
(‘‘OFPAs’’ or ‘‘Advices’’) to harmonize
Exchange Advices and rules.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.com/
NASDAQOMXPHLX/Filings/, at the
principal office of the Exchange, 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, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend Phlx rules 6 to:
4 The Chinese yuan may also be known as
renminbi (similarly to the British pound and
sterling).
5 Options on the following U.S. dollar-settled
foreign currencies are currently listed and traded on
the Exchange: the Australian dollar, the Euro, the
British pound, the Canadian dollar, the Swiss franc,
and the Japanese yen (together, the ‘‘FCOs’’) (the
New Currencies and FCOs are together known as
the ‘‘Currencies’’). The product specifications for
the U.S. dollar-settled FCOs, which are not altered
by or as a result of this filing, may be found at
https://www.nasdaqtrader.com/
Micro.aspx?id=phlxwcoproductspecs.
6 Rules 1000 (Applicability, Definitions and
References), 1001 (Position Limits), 1002 (Exercise
Limits), 1009 (Criteria for Underlying Securities),
1012 (Series of Options Open for Trading), 1014
(Obligations and Restrictions Applicable to
PO 00000
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Fmt 4703
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27217
Expand the Exchange’s current product
offering to include options on the New
Currencies; clarify certain existing
Exchange rules relating to Currencies;
establish position limits for Currencies;
and clarify the uniform pricing
convention (methodology) for options
on Currencies. In doing so, the
Exchange will delete obsolete and out of
use references regarding foreign
currency products and processes. The
purpose is also to conform existing
Advices 7 to the rules as amended.
Background
In January 2007, the Exchange listed
and began trading U.S. dollar-settled
FCOs on the British pound and the
Euro.8 In July 2007, the Exchange listed
and began trading U.S. dollar-settled
FCOs on the Australian dollar, Canadian
dollar, Swiss franc, and Japanese yen.9
U.S. dollar-settled FCOs continue being
traded electronically over the
Exchange’s options trading platform,
Phlx XL.10 Additionally, through the
spring of 2007 the Exchange traded,
through open outcry, physical delivery
options on foreign currencies.11
Specialists and Registered Options Traders), 1016
(Block Transactions in Physical Delivery Foreign
Currency Options), 1027 (Discretionary Accounts),
1033 (Bids and Offers—Premium), 1034 (Minimum
Increments), 1044 (Delivery and Payment), 1049
(Communications to Customers), 1057 (U.S. DollarSettled Foreign Currency Option Closing Settlement
Value), 1063 (Responsibilities of Floor Brokers),
1069 (Customized Foreign Currency Options), 1070
(Customer Complaints), 1079 (FLEX Index, Equity
and Currency Options), 1089 (Dealing Directly With
Specialist and Registered Option Trader in Foreign
Currency Options), and 1092 (Obvious Errors and
Catastrophic Errors).
7 Option Floor Procedure Advices B–7 (Time
Priority of Bids/Offers in Foreign Currency Options
(Physical Delivery Foreign Currency Option Only)),
C–2 (Options Floor Broker Management System), F–
6 (Options Quote Parameters), F–17 (FCO Trades to
be Effected in the Pit (Physical Delivery Foreign
Currency Option Only)), F–18 (FCO Expiration
Months and Strike Prices—Selective Quoting
Facility (Physical Delivery Foreign Currency Option
Only)), and F–20 (Quoting and Trading Customized
Foreign Currency Options (Foreign Currency
Option Only)).
8 See Securities Exchange Act Release No. 54989
(December 21, 2006), 71 FR 78506 (December 29,
2006) (SR–Phlx–2006–34). In approving the listing
and trading of U.S. dollar-settled FCOs on the
British pound and the Euro, the approval order
stated that the listing and trading of additional U.S.
dollar-settled FCOs on other foreign currencies will
require the Exchange to file additional proposed
rule changes on Form 19b–4.
9 See Securities Exchange Act Release No. 56034
(July 10, 2007), 72 FR 38853 (July 16, 2007) (SR–
Phlx–2007–34).
10 See Securities Exchange Act Release No. 49832
(June 8, 2004), 69 FR 33442 (June 15, 2004) (SR–
Phlx–2003–59)(approving Phlx XL). See also
Release No. 59995 (May 28, 2009) SR–Phlx–2009–
32 (approving Phlx XL II). The Exchange is rolling
out a new trading platform.
11 Physical delivery options, so named because
settlement could involve delivery of the underlying
currency (as opposed to cash for U.S. dollar-settled
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]]>Agencies
[Federal Register Volume 74, Number 108 (Monday, June 8, 2009)]
[Notices]
[Pages 27215-27217]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-13252]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60008; File No. SR-FINRA-2009-033]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule Cross-References in FINRA Rules
May 29, 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 May 13, 2009, Financial Industry Regulatory Authority, Inc.
(``FINRA'') 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 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
[[Page 27216]]
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 is proposing to correct or update certain rule cross-
references in certain FINRA rules that have been adopted in the
consolidated FINRA rulebook.
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
FINRA is in process of developing a new consolidated rulebook
(``Consolidated FINRA Rulebook'').\4\ 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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
The proposed rule change would update rule cross-references in
FINRA Rules 2114 (Recommendations to Customers in OTC Equity
Securities) and 9610 (Application for Exemptions). The former FINRA
rule was approved by the Commission on March 19, 2009 \5\ and will
become effective on June 15, 2009. Paragraph (e)(1)(B) of that rule
makes reference to FINRA Rule 4512(c); however, the referenced rule has
not yet been adopted in the Consolidated FINRA Rulebook, so the
proposed rule change would revert the reference to the existing NASD
Rule 3110(c)(4)--a non-substantive change. With respect to FINRA Rule
9610, the proposed rule change would update rule cross-references to
reflect the adoption of Rule 2114.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 59605 (March 19,
2009), 74 FR 13283 (March 26, 2009) (Order Approving File No. SR-
FINRA-2008-055).
---------------------------------------------------------------------------
FINRA has filed the proposed rule change for immediate
effectiveness. The implementation date will be June 15, 2009, the date
on which the previously approved rule change will also be implemented.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\6\ 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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
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 \7\ and Rule 19b-
4(f)(6) thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires that a self-regulatory organization submit to the
Commission written notice of its intent to file the proposed rule
change, along with a brief description and text of the proposed rule
change, at least five business days prior to the date of filing of
the proposed rule change, or such shorter time as designated by the
Commission. FINRA has satisfied this notice requirement.
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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-2009-033 on the subject line.
Paper Comments
Send paper comments in triplicate to Florence E. Harmon,
Deputy Secretary, Securities and Exchange Commission, 100 F Street,
NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2009-033. 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
[[Page 27217]]
Room, 100 F Street, NE., Washington, DC 20549, on official business
days between the hours of 10 a.m. and 3 p.m. Copies of such filing also
will be available for inspection and copying at the principal office of
FINRA. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
FINRA-2009-033 and should be submitted on or before June 29, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-13252 Filed 6-5-09; 8:45 am]
BILLING CODE 8010-01-P
