Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Proposed Rule Change Relating to Transaction-Related Charges for Trade Reporting to the OTC Reporting Facility, 33492-33494 [E9-16448]
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33492
Federal Register / Vol. 74, No. 132 / Monday, July 13, 2009 / Notices
proposed Temporary Member access fee
itself are appropriate for the same
reasons set forth in CBOE rule filing SR–
CBOE–2008–12 with respect to the
original Temporary Member access fee.6
Similarly, the Exchange believes that
the process used to set the proposed ITP
access fee and the proposed ITP access
fee itself are appropriate for the same
reasons set forth in CBOE rule filing SR–
CBOE–2008–77 with respect to the
original ITP access fee.7
Each of the proposed access fees will
remain in effect until such time either
that the Exchange submits a further rule
filing pursuant to Section 19(b)(3)(A)(ii)
of the Act 8 to modify the applicable
access fee or the applicable status (i.e.,
the Temporary Membership status or
the ITP status) is terminated.
Accordingly, the Exchange may, and
likely will, further adjust the proposed
access fees in the future if the Exchange
determines that it would be appropriate
to do so taking into consideration lease
rates for transferable CBOE
memberships prevailing at that time.
The procedural provisions of the
CBOE Fee Schedule related to the
assessment of each proposed access fee
are not proposed to be changed and will
remain the same as the current
procedural provisions relating to the
assessment of that access fee.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,9 in general, and
furthers the objectives of Section 6(b)(4)
of the Act,10 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
other charges among persons using its
facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
mstockstill on DSKH9S0YB1PROD with NOTICES
CBOE does not believe that the
proposed rule change will impose any
burden on competition that is not
6 See Securities Exchange Act Release No. 57293
(February 8, 2008), 73 FR 8729 (February 14, 2008)
(SR–CBOE–2008–12), which established the
original Temporary Member access fee, for detail
regarding the rationale in support of the original
Temporary Member access fee and the process used
to set that fee, which is also applicable to this
proposed change to the Temporary Member access
fee as well.
7 See Securities Exchange Act Release No. 58200
(July 21, 2008), 73 FR 43805 (July 28, 2008) (SR–
CBOE–2008–77), which established the original ITP
access fee, for detail regarding the rationale in
support of the original ITP access fee and the
process used to set that fee, which is also applicable
to this proposed change to the ITP access fee as
well.
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4).
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18:36 Jul 10, 2009
Jkt 217001
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
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
Section 19(b)(3)(A) of the Act 11 and
subparagraph (f)(2) of Rule 19b–4 12
thereunder. 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–CBOE–2009–042 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–CBOE–2009–042. 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
PO 00000
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 the Exchange. 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 No.
SR–CBOE–2009–042 and should be
submitted on or before August 3, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–16578 Filed 7–10–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60239; File No. SR–FINRA–
2009–045]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Proposed Rule Change Relating to
Transaction-Related Charges for Trade
Reporting to the OTC Reporting
Facility
July 2, 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 July 1,
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. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
13 17
11 15
U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(2).
Frm 00088
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\13JYN1.SGM
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Federal Register / Vol. 74, No. 132 / Monday, July 13, 2009 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to clarify the
application of transaction-related
charges for trade reporting to the OTC
Reporting Facility (‘‘ORF’’) pursuant to
FINRA Rule 7710.
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
mstockstill on DSKH9S0YB1PROD with NOTICES
The FINRA Rule 7700 Series, among
other things, sets forth the pricing
schedule for the ORF, the OTC Bulletin
Board, and the Trade Reporting and
Compliance Engine Services. On March
1, 2007, FINRA filed a proposed rule
change (SR–NASD–2007–018) for
immediate effectiveness that deleted
certain fee provisions from the FINRA
Rule 7700 Series 3 and amended certain
other provisions.4 In that filing, NASD
Rule 7010(g) was renumbered as NASD
Rule 7010, renamed, and amended to
apply only to the ORF.5 The
amendments became operative on
March 5, 2007.6 As FINRA stated in the
3 At the time of the rule filing, the FINRA Rule
7700 Series was the NASD Rule 7000 Series. The
NASD Rule 7000 Series was renumbered as the
FINRA Rule 7700 Series in 2008. See Securities
Exchange Act Release No. 58643 (September 25,
2008), 73 FR 57174 (October 1, 2008); see also
FINRA Regulatory Notice 08–57 (October 2008).
4 See Securities Exchange Act Release No. 55538
(March 27, 2007), 72 FR 15924 (April 3, 2007)
(Notice of Filing and Immediate Effectiveness of
SR–NASD–2007–018).
5 NASD Rule 7010 was later renumbered as
FINRA Rule 7710. See Securities Exchange Act
Release No. 58643 (September 25, 2008), 73 FR
57174 (October 1, 2008).
6 See Securities Exchange Act Release No. 55538
(March 27, 2007), 72 FR 15924 (April 3, 2007)
(Notice of Filing and Immediate Effectiveness of
SR–NASD–2007–018).
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18:36 Jul 10, 2009
Jkt 217001
filing, the amendments made to the rule
language were not intended to modify
any of the charges relating to the ORF.
Although there was no intent to
modify any charges in connection with
reporting transactions to the ORF, the
rule language, as amended by SR–
NASD–2007–018, omitted some
securities from the rule because of the
definition of ‘‘OTC Equity Security’’ in
FINRA Rule 6420. The previous rule,
NASD Rule 7010(g), included a catch-all
provision that applied a charge of
$0.029/side to the ‘‘reporting of all other
transactions not subject to comparison.’’
This language included, for example,
PORTAL equity securities, which are
reported to the ORF pursuant to the
PORTAL rules in the FINRA Rule 6630
Series. The term ‘‘OTC Equity Security,’’
however, specifically excludes PORTAL
securities and restricted securities from
the definition.7 Thus, by using the
defined term ‘‘OTC Equity Security’’
from March 5, 2007, until June 17, 2009,
PORTAL equity securities were
inadvertently omitted from the scope of
the rule language.8
The proposed rule change deletes the
prior reference to ‘‘OTC Equity
Security’’ in FINRA Rule 7710 to clarify
that, from March 5, 2007, until June 17,
2009, the transaction reporting charges
imposed pursuant to the rule applied to
the reporting of transactions in any
security, not just OTC Equity Securities,
to the ORF that were not subject to
comparison through the ORF.
FINRA is proposing that the operative
date of the proposed rule change be
retroactive from March 5, 2007, to June
17, 2009.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(5) of the Act,9 which
requires, among other things, that
FINRA rules provide for the equitable
allocation of reasonable dues, fees and
other charges among members and
issuers and other persons using any
facility or system that FINRA operates
or controls. FINRA believes that the
proposed rule change clarifies the
charges that were assessed with respect
to transactions that were reported to the
ORF from March 5, 2007, until June 17,
2009, and correctly reflects FINRA’s
intent when it amended the rule in SR–
NASD–2007–018.
FINRA Rule 6420(c), (d).
June 17, 2009, FINRA filed a proposed rule
change for immediate effectiveness that deleted the
reference to OTC Equity Securities in the rule. See
Securities Exchange Act Release No. 60168 (June
24, 2009), 74 FR 31471 (July 1, 2009).
9 15 U.S.C. 78o–3(b)(5).
PO 00000
7 See
8 On
Frm 00089
Fmt 4703
Sfmt 4703
33493
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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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–2009–045 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–2009–045. 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
E:\FR\FM\13JYN1.SGM
13JYN1
33494
Federal Register / Vol. 74, No. 132 / Monday, July 13, 2009 / Notices
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 publicly available. All
submissions should refer to File
Number SR–FINRA–2009–045 and
should be submitted on or before
August 3, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–16448 Filed 7–10–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60243; File No. SR–CHX–
2009–09]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change by the
Chicago Stock Exchange, Inc. Adding
the Post Only and Post Only ISO Order
Types
mstockstill on DSKH9S0YB1PROD with NOTICES
July 6, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 2 thereunder,
notice is hereby given that on June 29,
2009, the Chicago Stock Exchange, Inc.
(‘‘CHX’’ or the ‘‘Exchange’’) 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 CHX. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Nov<24>2008
18:36 Jul 10, 2009
Jkt 217001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CHX proposes to amend its rules to
add the Post Only and Post Only ISO
order types. The text of this proposed
rule change is available on the
Exchange’s Web site at (https://
www.chx.com), at the principal office of
the Exchange, and in 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
CHX included statements concerning
the purpose of and basis for the
proposed rule changes and discussed
any comments it received regarding the
proposal. The text of these statements
may be examined at the places specified
in Item IV below. The CHX 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 Exchange proposes to amend
CHX Article 20, Rule 4 to add the Post
Only and Post Only ISO order types.
A Post Only Order is an order
designed to encourage displayed
liquidity on the Exchange. By its terms,
a Post Only Order is posted on the
Exchange and does not route away to
another trading center. A Post Only
Order will be immediately cancelled if
it is marketable against a contra-side
order in the Matching System when
entered, or if it is at a price that would
lock or cross a manual or protected
quotation.
A Post Only ISO Order is a type of
ISO order that will be immediately
cancelled without execution if it is
marketable against a contra-side order in
the Matching System when entered. If a
Post Only ISO is not immediately
cancelled, it will be posted on the
Exchange at the entered limit price. By
entering a Post Only ISO, a Participant
represents that such Participant has
simultaneously routed one or more
additional limit orders marked ‘‘ISO,’’
as necessary, to away markets to
executed against the full displayed size
of any protected quotation for the
security with a price that is superior or
equal to the limit price of the Post Only
ISO entered in the Matching System.
Consequently, a Post Only ISO order
will be displayed by the Exchange
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
regardless of whether it will lock or
cross another market center’s quote.
Orders marked Post Only and Post
Only ISO will always be considered
‘‘liquidity providing’’ by the Exchange
for purposes of application of the
Exchange’s fees and rebate programs. By
making a Post Only or Post Only ISO
designation, Participants are able to
avoid the risk that their orders will be
considered ‘‘liquidity taking’’ for
purposes of application of the
Exchange’s fees and rebate programs.
CHX notes that order types similar to
the proposed Post Only and Post Only
ISO order types are already in use by
other market centers.3
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act in general,4 and
furthers the objectives of Section 6(b)(5)
in particular,5 in that it is designed to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transaction in securities, to
remove impediments and perfect the
mechanisms of a free and open market,
and, in general, to protect investors and
the public interest by allowing CHX to
amend its rules to add the Post Only
and Post Only ISO order types based on
similar rules already in effect at other
exchanges. The addition of these order
types will benefit Exchange customers
and promote competition among market
centers.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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
No written comments were either
solicited or 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 after the date of
3 See Rule 11.11(c)(5) and (c)(8)(ii) of the National
Stock Exchange, Rule 11.9(c)(6) of the BATS
Exchange and Rule 7.31(w) of NYSE Arca.
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
E:\FR\FM\13JYN1.SGM
13JYN1
]]>Agencies
[Federal Register Volume 74, Number 132 (Monday, July 13, 2009)]
[Notices]
[Pages 33492-33494]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-16448]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60239; File No. SR-FINRA-2009-045]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of Proposed Rule Change Relating to
Transaction-Related Charges for Trade Reporting to the OTC Reporting
Facility
July 2, 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 July 1, 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. 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.
---------------------------------------------------------------------------
[[Page 33493]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to clarify the application of transaction-
related charges for trade reporting to the OTC Reporting Facility
(``ORF'') pursuant to FINRA Rule 7710.
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
The FINRA Rule 7700 Series, among other things, sets forth the
pricing schedule for the ORF, the OTC Bulletin Board, and the Trade
Reporting and Compliance Engine Services. On March 1, 2007, FINRA filed
a proposed rule change (SR-NASD-2007-018) for immediate effectiveness
that deleted certain fee provisions from the FINRA Rule 7700 Series \3\
and amended certain other provisions.\4\ In that filing, NASD Rule
7010(g) was renumbered as NASD Rule 7010, renamed, and amended to apply
only to the ORF.\5\ The amendments became operative on March 5,
2007.\6\ As FINRA stated in the filing, the amendments made to the rule
language were not intended to modify any of the charges relating to the
ORF.
---------------------------------------------------------------------------
\3\ At the time of the rule filing, the FINRA Rule 7700 Series
was the NASD Rule 7000 Series. The NASD Rule 7000 Series was
renumbered as the FINRA Rule 7700 Series in 2008. See Securities
Exchange Act Release No. 58643 (September 25, 2008), 73 FR 57174
(October 1, 2008); see also FINRA Regulatory Notice 08-57 (October
2008).
\4\ See Securities Exchange Act Release No. 55538 (March 27,
2007), 72 FR 15924 (April 3, 2007) (Notice of Filing and Immediate
Effectiveness of SR-NASD-2007-018).
\5\ NASD Rule 7010 was later renumbered as FINRA Rule 7710. See
Securities Exchange Act Release No. 58643 (September 25, 2008), 73
FR 57174 (October 1, 2008).
\6\ See Securities Exchange Act Release No. 55538 (March 27,
2007), 72 FR 15924 (April 3, 2007) (Notice of Filing and Immediate
Effectiveness of SR-NASD-2007-018).
---------------------------------------------------------------------------
Although there was no intent to modify any charges in connection
with reporting transactions to the ORF, the rule language, as amended
by SR-NASD-2007-018, omitted some securities from the rule because of
the definition of ``OTC Equity Security'' in FINRA Rule 6420. The
previous rule, NASD Rule 7010(g), included a catch-all provision that
applied a charge of $0.029/side to the ``reporting of all other
transactions not subject to comparison.'' This language included, for
example, PORTAL equity securities, which are reported to the ORF
pursuant to the PORTAL rules in the FINRA Rule 6630 Series. The term
``OTC Equity Security,'' however, specifically excludes PORTAL
securities and restricted securities from the definition.\7\ Thus, by
using the defined term ``OTC Equity Security'' from March 5, 2007,
until June 17, 2009, PORTAL equity securities were inadvertently
omitted from the scope of the rule language.\8\
---------------------------------------------------------------------------
\7\ See FINRA Rule 6420(c), (d).
\8\ On June 17, 2009, FINRA filed a proposed rule change for
immediate effectiveness that deleted the reference to OTC Equity
Securities in the rule. See Securities Exchange Act Release No.
60168 (June 24, 2009), 74 FR 31471 (July 1, 2009).
---------------------------------------------------------------------------
The proposed rule change deletes the prior reference to ``OTC
Equity Security'' in FINRA Rule 7710 to clarify that, from March 5,
2007, until June 17, 2009, the transaction reporting charges imposed
pursuant to the rule applied to the reporting of transactions in any
security, not just OTC Equity Securities, to the ORF that were not
subject to comparison through the ORF.
FINRA is proposing that the operative date of the proposed rule
change be retroactive from March 5, 2007, to June 17, 2009.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(5) of the Act,\9\ which requires, among
other things, that FINRA rules provide for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system that FINRA operates or
controls. FINRA believes that the proposed rule change clarifies the
charges that were assessed with respect to transactions that were
reported to the ORF from March 5, 2007, until June 17, 2009, and
correctly reflects FINRA's intent when it amended the rule in SR-NASD-
2007-018.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78o-3(b)(5).
---------------------------------------------------------------------------
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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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-2009-045 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-2009-045. 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
[[Page 33494]]
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 publicly available. All submissions should refer to File Number
SR-FINRA-2009-045 and should be submitted on or before August 3, 2009.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-16448 Filed 7-10-09; 8:45 am]
BILLING CODE 8010-01-P
