Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Use of Multiple Market Participant Symbols When Quoting or Trading OTC Equity Securities, 39721-39723 [E9-18976]
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Federal Register / Vol. 74, No. 151 / Friday, August 7, 2009 / Notices
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing.7 However, Rule 19b–
4(f)(6) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest.8
NASDAQ has requested that the
Commission waive the 30-day operative
delay. The Exchange believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest in that
it would enable the Exchange to
continue to assess identical fees without
disruption to the marketplace. The
Commission believes such waiver is
consistent with the protection of
investors and the public interest
because it presents no new issues and
would allow the Linkage Fee Pilot
Program to continue operating without
interruption. For this reason, the
Commission designates the proposal to
be operative upon filing with the
Commission.9
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:
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 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
Number SR–NASDAQ–2009–073 and
should be submitted on or before
August 28, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–18975 Filed 8–6–09; 8:45 am]
pwalker on DSK8KYBLC1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2009–073 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–NASDAQ–2009–073. This
7 17
CFR 240.19b–4(f)(6).
8 Id.
9 For purposes only of waiving the 30-day preoperative period, the Commission has considered
the proposed rule’s impact on efficiency,
competition and capital formation. 15 U.S.C. 78c(f).
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17:09 Aug 06, 2009
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BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60414; File No. SR–FINRA–
2009–051]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the Use of
Multiple Market Participant Symbols
When Quoting or Trading OTC Equity
Securities
July 31, 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 23,
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 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
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to adopt FINRA
Rule 6480 on a pilot basis to address the
use of multiple Market Participant
Symbols (‘‘MPIDs’’) when quoting or
trading OTC Equity Securities.4
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 has two rules governing the
use of multiple MPIDs on FINRA
facilities: Rule 6160 (Multiple MPIDs for
Trade Reporting Facility Participants)
and Rule 6170 (Primary and Additional
MPIDs for Alternative Display Facility
Participants). The proposed rule change
would adopt, on a pilot basis, a rule for
the use of multiple MPIDs when quoting
OTC Equity Securities or reporting
3 17
10 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
39721
CFR 240.19b–4(f)(6).
purposes of the proposed rule, the term
‘‘OTC Equity Security’’ is defined in FINRA Rule
6420.
4 For
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07AUN1
39722
Federal Register / Vol. 74, No. 151 / Friday, August 7, 2009 / Notices
pwalker on DSK8KYBLC1PROD with NOTICES
trades in such securities to the OTC
Reporting Facility. The use of multiple
MPIDs is currently permitted with
respect to FINRA Trade Reporting
Facilities and the Alternative Display
Facility, and firms have requested that
FINRA extend the use of multiple
MPIDs to the OTC market so that
members can use multiple MPIDs for a
variety of back-office purposes that
would otherwise not be possible—for
example, establishing separate clearing
relationships for different types of
securities (e.g., foreign and domestic
securities). As is the case with respect
to the market for exchange-listed
securities, FINRA believes that there are
legitimate business reasons for members
to maintain multiple MPIDs in the OTC
market and proposes to establish, on a
pilot basis, a system whereby members
can request and be granted multiple
MPIDs for use in quoting and trading
OTC Equity Securities. The proposed
rule is substantially similar to Rule 6160
and, like that rule, would expire on
January 29, 2010, unless extended.5
Like Rule 6160, proposed Rule 6480
provides that any member that wishes to
use more than one MPID for purposes of
quoting an OTC Equity Security or
reporting trades to the OTC Reporting
Facility must submit a written request
to, and obtain approval from, FINRA
Operations for such additional MPIDs.
The rule also states that a member that
posts a quotation in an OTC Equity
Security and reports to a FINRA system
a trade resulting from such posted
quotation must utilize the same MPID
for reporting purposes. In addition,
Supplementary Material to the rule
states that FINRA considers the issuance
of, and trade reporting with, multiple
MPIDs to be a privilege and not a right.
When requesting an additional MPID(s),
a member must identify the purpose(s)
and system(s) for which the multiple
MPIDs will be used. If FINRA
determines that the use of multiple
MPIDs is detrimental to the
marketplace, or that a member is using
one or more additional MPIDs
improperly or for purposes other than
the purpose(s) identified by the
member, FINRA staff retains full
5 Rule 6160 was approved by the Commission in
2006 on a pilot basis. See Securities Exchange Act
Release No. 54715 (November 6, 2006), 71 FR 66354
(November 14, 2006); see also Securities Exchange
Act Release No. 54715A (November 14, 2006), 71
FR 67183 (November 20, 2006). The pilot period
has been extended several times since the rule was
originally adopted and currently expires on January
29, 2010. See Securities Exchange Act Release No.
59183 (December 30, 2008), 74 FR 842 (January 8,
2009); Securities Exchange Act Release No. 57217
(January 28, 2008), 73 FR 6234 (February 1, 2008);
Securities Exchange Act Release No. 55206 (January
31, 2007), 72 FR 5479 (February 6, 2007).
VerDate Nov<24>2008
17:09 Aug 06, 2009
Jkt 217001
discretion to limit or withdraw its grant
of the additional MPID(s) to such
member.
FINRA has filed the proposed rule
change for immediate effectiveness and
has requested that the SEC waive the
requirement that the proposed rule
change not become operative for 30 days
after the date of the filing, such that
FINRA can implement the proposed
rule change immediately.
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 that the
proposed rule change will create a
system that will allow members to use
multiple MPIDs when quoting and
trading OTC Equity Securities with
sufficient oversight by FINRA to ensure
that the MPIDs are not being used
improperly or in a way that would be
detrimental to the marketplace.
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
6 15
U.S.C. 78o–3(b)(6).
U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with 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
7 15
PO 00000
Frm 00118
Fmt 4703
Sfmt 4703
FINRA has requested that the
Commission waive the 30-day operative
delay so that it may immediately extend
the use of multiple MPIDs to the OTC
market on a pilot basis. The
Commission has determined that
waiving the 30-day operative delay of
FINRA’s proposal is consistent with the
protection of investors and the public
interest because FINRA’s proposed
system for extending the use of multiple
MPIDs to the OTC market is comparable
to the pilot program currently in place
for exchange-listed securities, which the
Commission previously approved.9
Therefore, the Commission designates
the proposal operative upon filing.10
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–2009–051 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–2009–051. 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
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
FINRA has met this requirement.
9 See supra note 5.
10 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
E:\FR\FM\07AUN1.SGM
07AUN1
39723
Federal Register / Vol. 74, No. 151 / Friday, August 7, 2009 / Notices
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
submissions should refer to File
Number SR–FINRA–2009–051 and
should be submitted on or before
August 28, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–18976 Filed 8–6–09; 8:45 am]
BILLING CODE 8010–01–P
(‘‘Act’’),1 notice is hereby given that on
July 13, 2009, the Fixed Income Clearing
Corporation (‘‘FICC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change described in Items I, II, and III
below, which items have been prepared
primarily by FICC. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the proposed rule
change is to modify the haircuts applied
to Eligible Clearing Fund Securities and
Eligible Participant Fund Securities.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FICC 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. FICC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.2
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60421; File No. SR–FICC–
2009–07]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify
Haircuts Applied to Eligible Clearing
Fund Securities and Eligible
Participant Fund Securities
August 3, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Under the Rules of the Government
Securities Division (‘‘GSD’’) and the
Mortgage-Backed Securities Division
(‘‘MBSD’’) (‘‘Rules’’), GSD Members and
MBSD Participants are required to
deposit to the GSD Clearing Fund and
MBSD Participants Fund, respectively,
the amount of each Member’s or
Participant’s required deposit, which is
established by FICC in accordance with
formulas specified in the Rules
(‘‘Required Deposit’’).
A Member or Participant may satisfy
its Required Deposit with cash, and
FICC may permit a portion of the
Member’s or Participant’s deposit to be
evidenced by an open account
indebtedness secured by Eligible
Clearing Fund Securities for the GSD
and Eligible Participants Fund
Securities for the MBSD. Eligible
Clearing Fund Securities and Eligible
Participants Fund Securities consist of
certain Treasury, agency, and mortgagebacked securities.
For reasons set forth in a companion
rule filing, FICC’s affiliate, National
Securities Clearing Corporation
(‘‘NSCC’’), has increased haircuts on
Clearing Fund collateral.3 Given that the
haircuts are applied by FICC and NSCC
systemically and on a harmonized basis,
these changes are also being applied by
FICC.
Therefore, FICC proposes to modify
the GSD’s Schedule of Haircuts for
Eligible Clearing Fund Securities and
the MBSD’s Schedule of Haircuts for
Eligible Participants Fund Securities to
update the correlating range of haircuts
applied to the types of Eligible Clearing
Fund Securities and Eligible
Participants Fund Securities.
Specifically, FICC proposes to increase
the haircut on: (i) Interest bearing
Treasuries with terms greater than 10
years but less than 15 years from the
current 5 percent to 6 percent and (ii)
zero coupon obligations of U.S.
Treasury and Agency Securities from
the current 2 to 10 percent based on
term to 5 to 12 percent based on term.
A complete listing of the haircut
schedule, showing modifications, is as
follows (deletions are in brackets and
additions are italicized):
GSD SCHEDULE OF HAIRCUTS FOR ELIGIBLE CLEARING FUND SECURITIES
Security type
Remaining maturity
pwalker on DSK8KYBLC1PROD with NOTICES
1. Treasury
Bills, Notes, Bonds, TIPS ...........................
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
VerDate Nov<24>2008
17:09 Aug 06, 2009
Jkt 217001
Zero to 1 year ...................................................
1 year to 2 years ..............................................
2 years to 5 years ............................................
5 years to 10 years ..........................................
10 years to 15 years ........................................
15 years or greater ...........................................
Zero to 1 year ...................................................
2.0%
2.0%
3.0%
4.0%
[5.0%] 6.0%
6.0%
[2.0%] 5.0%
2 The Commission has modified the text of the
summaries prepared by FICC.
Zero Coupon ..............................................
1 15
Haircut
3 Securities Exchange Act Release No. 60368 (July
22, 2009), 74 FR 37275.
PO 00000
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E:\FR\FM\07AUN1.SGM
07AUN1
]]>Agencies
[Federal Register Volume 74, Number 151 (Friday, August 7, 2009)]
[Notices]
[Pages 39721-39723]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-18976]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60414; File No. SR-FINRA-2009-051]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change Relating to the Use of Multiple Market Participant
Symbols When Quoting or Trading OTC Equity Securities
July 31, 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 23, 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 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 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 adopt FINRA Rule 6480 on a pilot basis to
address the use of multiple Market Participant Symbols (``MPIDs'') when
quoting or trading OTC Equity Securities.\4\
---------------------------------------------------------------------------
\4\ For purposes of the proposed rule, the term ``OTC Equity
Security'' is defined in FINRA Rule 6420.
---------------------------------------------------------------------------
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 has two rules governing the use of multiple MPIDs on FINRA
facilities: Rule 6160 (Multiple MPIDs for Trade Reporting Facility
Participants) and Rule 6170 (Primary and Additional MPIDs for
Alternative Display Facility Participants). The proposed rule change
would adopt, on a pilot basis, a rule for the use of multiple MPIDs
when quoting OTC Equity Securities or reporting
[[Page 39722]]
trades in such securities to the OTC Reporting Facility. The use of
multiple MPIDs is currently permitted with respect to FINRA Trade
Reporting Facilities and the Alternative Display Facility, and firms
have requested that FINRA extend the use of multiple MPIDs to the OTC
market so that members can use multiple MPIDs for a variety of back-
office purposes that would otherwise not be possible--for example,
establishing separate clearing relationships for different types of
securities (e.g., foreign and domestic securities). As is the case with
respect to the market for exchange-listed securities, FINRA believes
that there are legitimate business reasons for members to maintain
multiple MPIDs in the OTC market and proposes to establish, on a pilot
basis, a system whereby members can request and be granted multiple
MPIDs for use in quoting and trading OTC Equity Securities. The
proposed rule is substantially similar to Rule 6160 and, like that
rule, would expire on January 29, 2010, unless extended.\5\
---------------------------------------------------------------------------
\5\ Rule 6160 was approved by the Commission in 2006 on a pilot
basis. See Securities Exchange Act Release No. 54715 (November 6,
2006), 71 FR 66354 (November 14, 2006); see also Securities Exchange
Act Release No. 54715A (November 14, 2006), 71 FR 67183 (November
20, 2006). The pilot period has been extended several times since
the rule was originally adopted and currently expires on January 29,
2010. See Securities Exchange Act Release No. 59183 (December 30,
2008), 74 FR 842 (January 8, 2009); Securities Exchange Act Release
No. 57217 (January 28, 2008), 73 FR 6234 (February 1, 2008);
Securities Exchange Act Release No. 55206 (January 31, 2007), 72 FR
5479 (February 6, 2007).
---------------------------------------------------------------------------
Like Rule 6160, proposed Rule 6480 provides that any member that
wishes to use more than one MPID for purposes of quoting an OTC Equity
Security or reporting trades to the OTC Reporting Facility must submit
a written request to, and obtain approval from, FINRA Operations for
such additional MPIDs. The rule also states that a member that posts a
quotation in an OTC Equity Security and reports to a FINRA system a
trade resulting from such posted quotation must utilize the same MPID
for reporting purposes. In addition, Supplementary Material to the rule
states that FINRA considers the issuance of, and trade reporting with,
multiple MPIDs to be a privilege and not a right. When requesting an
additional MPID(s), a member must identify the purpose(s) and system(s)
for which the multiple MPIDs will be used. If FINRA determines that the
use of multiple MPIDs is detrimental to the marketplace, or that a
member is using one or more additional MPIDs improperly or for purposes
other than the purpose(s) identified by the member, FINRA staff retains
full discretion to limit or withdraw its grant of the additional
MPID(s) to such member.
FINRA has filed the proposed rule change for immediate
effectiveness and has requested that the SEC waive the requirement that
the proposed rule change not become operative for 30 days after the
date of the filing, such that FINRA can implement the proposed rule
change immediately.
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 that the proposed rule change will
create a system that will allow members to use multiple MPIDs when
quoting and trading OTC Equity Securities with sufficient oversight by
FINRA to ensure that the MPIDs are not being used improperly or in a
way that would be detrimental to the marketplace.
---------------------------------------------------------------------------
\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\
---------------------------------------------------------------------------
\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 a self-regulatory organization to provide the Commission
with 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 met this requirement.
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FINRA has requested that the Commission waive the 30-day operative
delay so that it may immediately extend the use of multiple MPIDs to
the OTC market on a pilot basis. The Commission has determined that
waiving the 30-day operative delay of FINRA's proposal is consistent
with the protection of investors and the public interest because
FINRA's proposed system for extending the use of multiple MPIDs to the
OTC market is comparable to the pilot program currently in place for
exchange-listed securities, which the Commission previously
approved.\9\ Therefore, the Commission designates the proposal
operative upon filing.\10\
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\9\ See supra note 5.
\10\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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-2009-051 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-2009-051. 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
[[Page 39723]]
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 submissions should refer to File Number
SR-FINRA-2009-051 and should be submitted on or before August 28, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-18976 Filed 8-6-09; 8:45 am]
BILLING CODE 8010-01-P
