Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Proposed Rule Change Relating to Reporting of Trade Cancellations to FINRA, 65578-65580 [E9-29390]
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Federal Register / Vol. 74, No. 236 / Thursday, December 10, 2009 / Notices
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) of the
Act,11 in general, and Section 6(b)(4) of
the Act,12 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its members and
other persons using the facilities of the
Exchange. Moreover, the proposed rule
change is not discriminatory in that all
ETP Holders are eligible to submit (or
not submit) trades and quotes in Order
Delivery or AutoEx in all tapes and as
either displayed or undisplayed, and
may do so at their discretion in the daily
volumes they choose during the course
of the measurement period.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any inappropriate burden on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
mstockstill on DSKH9S0YB1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has taken
effect upon filing pursuant to Section
19(b)(3)(A)(ii) of the Act 13 and
subparagraph (f)(2) of Rule 19b–4 14
thereunder, because, as provided in
(f)(2), it changes ‘‘a due, fee or other
charge applicable only to a member’’
(known on the Exchange as an ETP
Holder). At any time within sixty (60)
days of the filing of such proposed rule
change, the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
11 15
U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(4).
13 15 U.S.C. 78s(b)(3)(A)(ii).
14 17 CFR 240.19b–4.
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17:19 Dec 09, 2009
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–NSX–2009–07 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.
[Release No. 34–61105; File No. SR–
FINRA–2009–082]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Proposed Rule Change Relating to
Reporting of Trade Cancellations to
FINRA
December 3, 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 November
All submissions should refer to File
24, 2009, Financial Industry Regulatory
Number SR–NSX–2009–07. This file
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
number should be included on the
subject line if e-mail is used. To help the (‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
Commission process and review your
and III below, which Items have been
comments more efficiently, please use
only one method. The Commission will prepared by FINRA. The Commission is
post all comments on the Commission’s publishing this notice to solicit
comments on the proposed rule change
Internet Web site (https://www.sec.gov/
from interested persons.
rules/sro.shtml). Copies of the
submission, all subsequent
I. Self-Regulatory Organization’s
amendments, all written statements
Statement of the Terms of Substance of
with respect to the proposed rule
the Proposed Rule Change
change that are filed with the
FINRA is proposing to (1) amend
Commission, and all written
FINRA trade reporting rules to permit
communications relating to the
members to report trade cancellations
proposed rule change between the
after 5:15 p.m. Eastern Time on trade
Commission and any person, other than date to the FINRA/Nasdaq Trade
those that may be withheld from the
Reporting Facility (‘‘FINRA/Nasdaq
public in accordance with the
TRF’’) and the OTC Reporting Facility
provisions of 5 U.S.C. 552, will be
(‘‘ORF’’); and (2) make certain
available for inspection and copying in
conforming changes to the rules relating
the Commission’s Public Reference
to the submission of trade cancellations
to the Alternative Display Facility
Room, 100 F Street, NE., Washington,
(‘‘ADF’’). The amendments proposed
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. herein are identical to the current rules
Copies of the filing will also be available relating to the FINRA/NYSE Trade
Reporting Facility (‘‘FINRA/NYSE
for inspection and copying at the
TRF’’) and would make FINRA rules
principal office of the self-regulatory
governing the submission of trade
organization. All comments received
cancellations consistent across the
will be posted without change; the
‘‘FINRA Facilities.’’ 3
Commission does not edit personal
The text of the proposed rule change
identifying information from
is available on FINRA’s Web site at
submissions. You should submit only
https://www.finra.org, at the principal
information that you wish to make
office of FINRA and at the
available publicly. All submissions
Commission’s Public Reference Room.
should refer to File Number SR–NSX–
2009–07 and should be submitted on or II. Self-Regulatory Organization’s
Statement of the Purpose of, and
before December 31, 2009.
Statutory Basis for, the Proposed Rule
For the Commission, by the Division of
Change
Trading and Markets, pursuant to delegated
In its filing with the Commission,
authority.15
FINRA included statements concerning
Florence E. Harmon,
the purpose of and basis for the
Deputy Secretary.
[FR Doc. E9–29391 Filed 12–9–09; 8:45 am]
15 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00071
Fmt 4703
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 The ADF, FINRA/Nasdaq TRF, FINRA/NYSE
TRF and ORF are collectively referred to herein as
the ‘‘FINRA Facilities.’’
2 17
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Federal Register / Vol. 74, No. 236 / Thursday, December 10, 2009 / Notices
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
mstockstill on DSKH9S0YB1PROD with NOTICES
1. Purpose
FINRA rules require members to
report the cancellation of any over-thecounter trade that was previously
submitted to a FINRA Facility within
certain prescribed time periods.4 For
example, if a trade executed during
normal market hours (i.e., 9:30 a.m. to
4 p.m. Eastern Time) is canceled during
normal market hours on trade date, the
cancellation must be reported to FINRA
within 90 seconds.5
The rules governing the reporting of
trade cancellations to the FINRA/
Nasdaq TRF and ORF are based on the
traditional 5:15 p.m. ‘‘media’’ cut-off
time (i.e., for the submission of trades
for public dissemination purposes) and
prohibit the reporting of trade
cancellations after 5:15 p.m. on trade
date.6 In other words, although the
FINRA/Nasdaq TRF and ORF are open
until 8 p.m., if a member does not report
a trade cancellation by 5:15 p.m. on
trade date, then the member must wait
until the next day to report the
cancellation. This means that trade
cancellations are not submitted to the
Securities Information Processors
(‘‘SIPs’’) by the FINRA/Nasdaq TRF or
to the Trade Data Dissemination Service
(‘‘TDDS’’) feed by the ORF after 5:15
p.m. on trade date, and the high price/
low price/last sale price calculations for
the day are not updated after 5:15 p.m.7
4 See Rules 6282(j), 6380A(g), 6380B(f) and
6622(f).
5 See Rules 6380A(g)(2)(A), 6380B(f)(2)(A) and
6622(f)(2)(A).
FINRA notes that currently, the ADF rules do not
contain a 90-second reporting requirement for trade
cancellations. As described more fully below,
FINRA is proposing to amend the ADF rules to
conform to the rules for the other FINRA Facilities
in this regard.
6 See Rules 6380A(g)(2) and 6622(f)(2).
7 Market participants historically have relied on
the high/low/last calculations provided by the SIPs,
e.g., some market data vendors would ‘‘lock in’’
high/low/last for the day in their data products at
the 5:15 p.m. media cut-off time, and mutual fund
companies would set their daily fund net asset
values based on the last sale price as of the 5:15
p.m. media cut-off. FINRA does not believe that
market participants today rely on the high/low/last
calculations provided by the SIPs to the degree they
once did. For example, today many market
participants buy closing price data directly from the
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17:19 Dec 09, 2009
Jkt 220001
By contrast, the rules relating to the
ADF and FINRA/NYSE TRF do not
include a 5:15 p.m. cut-off.
Cancellations on trade date can be
reported to these two facilities until the
time they close (6:30 p.m. for the ADF
and 8 p.m. for the FINRA/NYSE TRF),8
and the SIPs update the high/low/last
calculations accordingly.
FINRA is proposing to amend Rules
6380A(g)(2) and 6622(f)(2) relating to
the FINRA/Nasdaq TRF and the ORF,
respectively, to eliminate the 5:15 p.m.
cut-off and to allow members to submit
reports of trade cancellations on trade
date until the close of the facilities at 8
p.m. As a result of the proposed rule
change, reports of trade cancellations
submitted to the FINRA/Nasdaq TRF
and ORF until 8 p.m. on trade date will
update the high/low/last calculations
for the day. The text of the proposed
amendments is identical to the text of
current Rule 6380B(f)(2) relating to the
FINRA/NYSE TRF.9
FINRA also is proposing to amend
Rule 6282(j)(2) relating to the ADF to
conform to Rule 6380B(f)(2) relating to
the FINRA/NYSE TRF. Among other
changes, the proposed amendments to
Rule 6282(j)(2) will provide that if a
normal market hours trade is cancelled
during market hours on trade date, the
cancellation must be reported within 90
seconds.10
FINRA believes that the proposed rule
change will promote more consistent
trade reporting by members by
primary listing market for the issue. However,
FINRA is requesting that the SEC specifically solicit
comment on the industry’s reliance on the high/
low/last calculation provided by the SIPs and/or
TDDS, and in turn, the relevance of the 5:15 p.m.
media cut-off today.
8 See Rules 6282(j)(2) and 6380B(f)(2).
9 FINRA is proposing to make a technical change
to Rule 6380B(f)(2)(F) relating to the FINRA/NYSE
TRF. Pursuant to SR–NASD–2007–037, FINRA
proposed to amend its trade reporting rules to
extend the closing time of the FINRA/NYSE TRF
from 6:30 p.m. to 8 p.m. Eastern Time. See
Securities Exchange Act Release No. 55916 (June
15, 2007), 72 FR 34499 (June 22, 2007) (notice of
filing and immediate effectiveness of SR–NASD–
2007–037). However, FINRA inadvertently
neglected to propose to replace a reference to 6:30
p.m. with 8 p.m. in Rule 6380B(f)(2)(F) and is
proposing to make that change in this filing.
FINRA also is proposing technical changes,
where necessary, to clarify that references to
‘‘before 4 p.m.’’ mean ‘‘at or before 4 p.m.’’ and
references to ‘‘after 6:30 p.m.’’ (or 8 p.m., as
applicable) mean ‘‘at or after 6:30 p.m.’’ (or 8 p.m.,
as applicable) to close any inadvertent gaps in the
rules.
10 FINRA recently filed a proposed rule change to
reduce the 90-second reporting requirement to 30
seconds. See Securities Exchange Act Release No.
60960 (November 6, 2009), 74 FR 59272 (November
17, 2009) (notice of filing of SR–FINRA–2009–061).
The proposed 30-second reporting requirement also
would apply to trade cancellations. Depending on
the timing of Commission approval of these filings,
FINRA will file an amendment or separate filing, as
necessary, to make conforming changes.
PO 00000
Frm 00072
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65579
conforming the reporting requirements
applicable to trade cancellations across
FINRA Facilities. Additionally, the
proposed rule change will enhance
market transparency by eliminating
systematically imposed delays in the
reporting of trade cancellations to the
FINRA/Nasdaq TRF and ORF.11
FINRA will announce the effective
date of the proposed rule change in a
Regulatory Notice. FINRA is proposing
that the implementation date will be
between 45 and 90 days following the
date of Commission approval.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,12 which
requires, among other things, that
FINRA rules be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, and, in general, to
protect investors and the public interest.
FINRA believes that the proposed rule
change will enhance market
transparency and promote more
consistent trade reporting by members.
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
11 FINRA notes that where a proposed rule change
strictly proposes to make conforming changes to the
rules applicable to one FINRA Facility that are
identical to existing rules applicable to one or more
other FINRA Facilities, FINRA typically would file
such proposed rule change for immediate
effectiveness under Section (b)(3)(A) of the Act.
However, because the conforming changes
proposed herein for the FINRA/Nasdaq TRF and
ORF will impact the high/low/last calculations,
FINRA is filing under Section (b)(2) of the Act to
provide members and other interested parties an
opportunity to comment.
12 15 U.S.C. 78o–3(b)(6).
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Federal Register / Vol. 74, No. 236 / Thursday, December 10, 2009 / Notices
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:
mstockstill on DSKH9S0YB1PROD 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–FINRA–2009–082 on the
subject line.
should be submitted on or before
December 31, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–29390 Filed 12–9–09; 8:45 am]
• Hand Delivery or Courier: 2401 E
St., NW., Room H328, Washington, DC
20037.
You must include the DS form number
(if applicable), information collection
title, and OMB control number in any
correspondence.
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice: 6839]
30-Day Notice of Proposed Information
Collection: DS–2028, Overseas
Schools Grant Status Report OMB
1405–0033
ACTION: Notice of request for public
comment and submission to OMB of
proposed collection of information.
SUMMARY: The Department of State has
submitted the following information
Paper Comments
collection request to the Office of
• Send paper comments in triplicate
Management and Budget (OMB) for
to Elizabeth M. Murphy, Secretary,
approval in accordance with the
Securities and Exchange Commission,
Paperwork Reduction Act of 1995.
100 F Street, NE., Washington, DC
• Title of Information Collection:
20549–1090.
Overseas Schools Grant Status Report.
All submissions should refer to File
• OMB Control Number: OMB 1405–
Number SR–FINRA–2009–082. This file 0033.
number should be included on the
• Type of Request: Extension.
• Originating Office: Office of
subject line if e-mail is used. To help the
Overseas Schools, A/OPR/OS.
Commission process and review your
• Form Number: DS–2028.
comments more efficiently, please use
• Respondents: Overseas schools
only one method. The Commission will
post all comments on the Commission’s grantees.
• Estimated Number of Respondents:
Internet Web site (https://www.sec.gov/
196.
rules/sro.shtml). Copies of the
• Estimated Number of Responses:
submission, all subsequent
196.
amendments, all written statements
• Average Hours per Response: 15
with respect to the proposed rule
minutes.
change that are filed with the
• Total Estimated Burden: 49.
Commission, and all written
• Frequency: Annually.
communications relating to the
• Obligation to Respond: Required to
proposed rule change between the
Commission and any person, other than obtain or retain a benefit.
DATES: Submit comments to the Office
those that may be withheld from the
of Management and Budget (OMB) for
public in accordance with the
up to 30 days from December 10, 2009.
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
ADDRESSES: Keith Miller, Department of
the Commission’s Public Reference
State, Office of Overseas Schools, A/
Room, 100 F Street, NE., Washington,
OPR/OS, Room H328, SA–1,
DC 20549, on official business days
Washington, DC 20522–0132, who is
between the hours of 10 a.m. and 3 p.m. reachable on 202–261–8200. You may
Copies of such filing also will be
submit comments by any of the
available for inspection and copying at
following methods:
the principal office of FINRA. All
• E-mail: millerkd2@state.gov.
comments received will be posted
• Mail (paper, disk, or CD–ROM
without change; the Commission does
submissions): Office of Overseas
not edit personal identifying
Schools, U.S. Department of State, 2201
information from submissions. You
C St., NW., Washington, DC 20522–
should submit only information that
0132.
you wish to make publicly available. All
• Fax: 202–261–8224.
submissions should refer to File
13 17 CFR 200.30–3(a)(12).
Number SR–FINRA–2009–082 and
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FOR FURTHER INFORMATION CONTACT:
Direct requests for additional
information regarding the collection
listed in this notice, including requests
for copies of the proposed information
collection and supporting documents, to
Keith Miller, Department of State, Office
of Overseas Schools, A/OPR/OS, Room
H328, SA–1, Washington, DC 20522–
0132, who is reachable on 202–261–
8200 or at millerkd2@state.gov.
We are
soliciting public comments to permit
the Department to:
• Evaluate whether the proposed
information collection is necessary for
the proper performance of our
functions.
• Evaluate the accuracy of our
estimate of the burden of the proposed
collection, including the validity of the
methodology and assumptions used.
• Enhance the quality, utility, and
clarity of the information to be
collected.
• Minimize the reporting burden on
those who are to respond, including the
use of automated collection techniques
or other forms of technology.
Abstract of proposed collection:
The Office of Overseas Schools of the
Department of State (A/OPR/OS) is
responsible for determining that
adequate educational opportunities
exist at Foreign Service Posts for
dependents of U.S. Government
personnel stationed abroad, and for
assisting American-sponsored overseas
schools to demonstrate U.S. educational
philosophy and practice. The
information gathered provides the
technical and professional staff of A/
OPR/OS the means by which
obligations, expenditures and
reimbursements of the grant funds are
monitored to ensure the grantee
complies with the terms of the grant.
Methodology: Information is collected
via electronic and paper submission.
Additional Information:
SUPPLEMENTARY INFORMATION:
Dated: November 25, 2009.
Peggy Philbin,
Executive Director, Bureau of Administration,
Department of State.
[FR Doc. E9–29450 Filed 12–9–09; 8:45 am]
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]]>Agencies
[Federal Register Volume 74, Number 236 (Thursday, December 10, 2009)]
[Notices]
[Pages 65578-65580]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-29390]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61105; File No. SR-FINRA-2009-082]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of Proposed Rule Change Relating to
Reporting of Trade Cancellations to FINRA
December 3, 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 November 24, 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,
II, and III below, which Items have been prepared by FINRA. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to (1) amend FINRA trade reporting rules to
permit members to report trade cancellations after 5:15 p.m. Eastern
Time on trade date to the FINRA/Nasdaq Trade Reporting Facility
(``FINRA/Nasdaq TRF'') and the OTC Reporting Facility (``ORF''); and
(2) make certain conforming changes to the rules relating to the
submission of trade cancellations to the Alternative Display Facility
(``ADF''). The amendments proposed herein are identical to the current
rules relating to the FINRA/NYSE Trade Reporting Facility (``FINRA/NYSE
TRF'') and would make FINRA rules governing the submission of trade
cancellations consistent across the ``FINRA Facilities.'' \3\
---------------------------------------------------------------------------
\3\ The ADF, FINRA/Nasdaq TRF, FINRA/NYSE TRF and ORF are
collectively referred to herein as the ``FINRA Facilities.''
---------------------------------------------------------------------------
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
[[Page 65579]]
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 rules require members to report the cancellation of any over-
the-counter trade that was previously submitted to a FINRA Facility
within certain prescribed time periods.\4\ For example, if a trade
executed during normal market hours (i.e., 9:30 a.m. to 4 p.m. Eastern
Time) is canceled during normal market hours on trade date, the
cancellation must be reported to FINRA within 90 seconds.\5\
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\4\ See Rules 6282(j), 6380A(g), 6380B(f) and 6622(f).
\5\ See Rules 6380A(g)(2)(A), 6380B(f)(2)(A) and 6622(f)(2)(A).
FINRA notes that currently, the ADF rules do not contain a 90-
second reporting requirement for trade cancellations. As described
more fully below, FINRA is proposing to amend the ADF rules to
conform to the rules for the other FINRA Facilities in this regard.
---------------------------------------------------------------------------
The rules governing the reporting of trade cancellations to the
FINRA/Nasdaq TRF and ORF are based on the traditional 5:15 p.m.
``media'' cut-off time (i.e., for the submission of trades for public
dissemination purposes) and prohibit the reporting of trade
cancellations after 5:15 p.m. on trade date.\6\ In other words,
although the FINRA/Nasdaq TRF and ORF are open until 8 p.m., if a
member does not report a trade cancellation by 5:15 p.m. on trade date,
then the member must wait until the next day to report the
cancellation. This means that trade cancellations are not submitted to
the Securities Information Processors (``SIPs'') by the FINRA/Nasdaq
TRF or to the Trade Data Dissemination Service (``TDDS'') feed by the
ORF after 5:15 p.m. on trade date, and the high price/low price/last
sale price calculations for the day are not updated after 5:15 p.m.\7\
By contrast, the rules relating to the ADF and FINRA/NYSE TRF do not
include a 5:15 p.m. cut-off. Cancellations on trade date can be
reported to these two facilities until the time they close (6:30 p.m.
for the ADF and 8 p.m. for the FINRA/NYSE TRF),\8\ and the SIPs update
the high/low/last calculations accordingly.
---------------------------------------------------------------------------
\6\ See Rules 6380A(g)(2) and 6622(f)(2).
\7\ Market participants historically have relied on the high/
low/last calculations provided by the SIPs, e.g., some market data
vendors would ``lock in'' high/low/last for the day in their data
products at the 5:15 p.m. media cut-off time, and mutual fund
companies would set their daily fund net asset values based on the
last sale price as of the 5:15 p.m. media cut-off. FINRA does not
believe that market participants today rely on the high/low/last
calculations provided by the SIPs to the degree they once did. For
example, today many market participants buy closing price data
directly from the primary listing market for the issue. However,
FINRA is requesting that the SEC specifically solicit comment on the
industry's reliance on the high/low/last calculation provided by the
SIPs and/or TDDS, and in turn, the relevance of the 5:15 p.m. media
cut-off today.
\8\ See Rules 6282(j)(2) and 6380B(f)(2).
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FINRA is proposing to amend Rules 6380A(g)(2) and 6622(f)(2)
relating to the FINRA/Nasdaq TRF and the ORF, respectively, to
eliminate the 5:15 p.m. cut-off and to allow members to submit reports
of trade cancellations on trade date until the close of the facilities
at 8 p.m. As a result of the proposed rule change, reports of trade
cancellations submitted to the FINRA/Nasdaq TRF and ORF until 8 p.m. on
trade date will update the high/low/last calculations for the day. The
text of the proposed amendments is identical to the text of current
Rule 6380B(f)(2) relating to the FINRA/NYSE TRF.\9\
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\9\ FINRA is proposing to make a technical change to Rule
6380B(f)(2)(F) relating to the FINRA/NYSE TRF. Pursuant to SR-NASD-
2007-037, FINRA proposed to amend its trade reporting rules to
extend the closing time of the FINRA/NYSE TRF from 6:30 p.m. to 8
p.m. Eastern Time. See Securities Exchange Act Release No. 55916
(June 15, 2007), 72 FR 34499 (June 22, 2007) (notice of filing and
immediate effectiveness of SR-NASD-2007-037). However, FINRA
inadvertently neglected to propose to replace a reference to 6:30
p.m. with 8 p.m. in Rule 6380B(f)(2)(F) and is proposing to make
that change in this filing.
FINRA also is proposing technical changes, where necessary, to
clarify that references to ``before 4 p.m.'' mean ``at or before 4
p.m.'' and references to ``after 6:30 p.m.'' (or 8 p.m., as
applicable) mean ``at or after 6:30 p.m.'' (or 8 p.m., as
applicable) to close any inadvertent gaps in the rules.
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FINRA also is proposing to amend Rule 6282(j)(2) relating to the
ADF to conform to Rule 6380B(f)(2) relating to the FINRA/NYSE TRF.
Among other changes, the proposed amendments to Rule 6282(j)(2) will
provide that if a normal market hours trade is cancelled during market
hours on trade date, the cancellation must be reported within 90
seconds.\10\
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\10\ FINRA recently filed a proposed rule change to reduce the
90-second reporting requirement to 30 seconds. See Securities
Exchange Act Release No. 60960 (November 6, 2009), 74 FR 59272
(November 17, 2009) (notice of filing of SR-FINRA-2009-061). The
proposed 30-second reporting requirement also would apply to trade
cancellations. Depending on the timing of Commission approval of
these filings, FINRA will file an amendment or separate filing, as
necessary, to make conforming changes.
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FINRA believes that the proposed rule change will promote more
consistent trade reporting by members by conforming the reporting
requirements applicable to trade cancellations across FINRA Facilities.
Additionally, the proposed rule change will enhance market transparency
by eliminating systematically imposed delays in the reporting of trade
cancellations to the FINRA/Nasdaq TRF and ORF.\11\
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\11\ FINRA notes that where a proposed rule change strictly
proposes to make conforming changes to the rules applicable to one
FINRA Facility that are identical to existing rules applicable to
one or more other FINRA Facilities, FINRA typically would file such
proposed rule change for immediate effectiveness under Section
(b)(3)(A) of the Act. However, because the conforming changes
proposed herein for the FINRA/Nasdaq TRF and ORF will impact the
high/low/last calculations, FINRA is filing under Section (b)(2) of
the Act to provide members and other interested parties an
opportunity to comment.
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FINRA will announce the effective date of the proposed rule change
in a Regulatory Notice. FINRA is proposing that the implementation date
will be between 45 and 90 days following the date of Commission
approval.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\12\ which requires, among
other things, that FINRA rules be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes that the proposed rule change will
enhance market transparency and promote more consistent trade reporting
by members.
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\12\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
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
[[Page 65580]]
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-2009-082 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-2009-082. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of FINRA. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make publicly available. All
submissions should refer to File Number SR-FINRA-2009-082 and should be
submitted on or before December 31, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-29390 Filed 12-9-09; 8:45 am]
BILLING CODE 8011-01-P
