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]

Download as PDF 65578 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. VerDate Nov<24>2008 17:19 Dec 09, 2009 Electronic Comments • Use the Commission’s Internet comment form (http://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 (http://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 http://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 BILLING CODE 8011–01–P Jkt 220001 SECURITIES AND EXCHANGE COMMISSION Sfmt 4703 E:\FR\FM\10DEN1.SGM 10DEN1 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 VerDate Nov<24>2008 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 Fmt 4703 Sfmt 4703 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). E:\FR\FM\10DEN1.SGM 10DEN1 65580 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 (http://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 (http://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 VerDate Nov<24>2008 17:19 Dec 09, 2009 Jkt 220001 PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 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] BILLING CODE 4710–24–P E:\FR\FM\10DEN1.SGM 10DEN1

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 http://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\
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \12\ 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

    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 (http://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 (http://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