Self-Regulatory Organizations; NASDAQ OMX BX; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend IM-1002-1 To Reflect Changes to a Corresponding FINRA Rule, 68644-68646 [E9-30599]
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68644
Federal Register / Vol. 74, No. 247 / Monday, December 28, 2009 / Notices
NYSE Arca would be subject to NYSE
Arca Rules governing trading, and such
rules would be considered NYSE rules
for the purposes of such transactions,
except that: (1) NYSE rules governing
member firm conduct, including
membership requirements and net
capital requirements, will continue to
apply to NYSE members and Sponsored
Participants; and (2) NYSE listing
requirements for all listed securities will
continue to apply.17
NYSE Arca would conduct
surveillance of trading in NYSE-listed
securities on or through the systems and
facilities of NYSE Arca on behalf of the
NYSE.18 NYSE members would remain
subject to the NYSE’s jurisdiction for
any disciplinary action related to the
trading of NYSE-listed securities on or
through the facilities of NYSE Arca.19
The authority granted pursuant to
NYSE Rule 49 would remain operative
for up to 10 calendar days from the date
the NYSE invokes such authority, and
the NYSE may terminate actions taken
pursuant to the rule at any time.20 The
NYSE may request an extension of this
initial 10-day period for a specified
amount of time by filing a proposed rule
change with the Commission pursuant
to Section 19(b)(2) of the Act, and the
Commission must approve the NYSE’s
proposal before any such extension
could take effect.21
III. Discussion and Commission
Findings
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.22 In particular, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,23 which requires, in part, that the
rules of a national securities exchange
be designed to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
17 See
NYSE Rule 49(b)(4).
NYSE Rule 49(b)(5)(i).
19 See NYSE Rule 49(b)(5)(ii).
20 See NYSE Rule 49(c)(2) and (3). The NYSE will
provide adequate prior notice to members,
Sponsored Participants, and investors regarding its
intention to terminate any action taken under the
rule. See NYSE Rule 49(c)(3).
21 Id.
22 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
23 15 U.S.C. 78f(b)(5).
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18 See
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open market and a national market
system, and, in general, to protect
investors and the public interest.
The Commission believes that the
proposal is reasonably designed to
permit the NYSE to continue to operate
in the event of an emergency, as defined
in Section 12(k)(7) of the Act, by
allowing the NYSE to designate its
corporate affiliate, NYSE Arca, to
receive and process quotations in NYSElisted securities and to execute orders in
NYSE-listed securities on behalf of the
NYSE in the event of such an
emergency.24 The NYSE would invoke
its authority under NYSE Rule 49 only
in an emergency, as defined in Section
12(k)(7) of the Act.25 The NYSE will
make reasonable efforts to consult with
the Commission prior to taking action
under NYSE Rule 49.26 Any action
taken under NYSE Rule 49 would be
operative for up to 10 calendar days
from the date that the NYSE invokes its
authority under the rule, and the NYSE
may terminate action taken under the
rule at any time.27 To extend an action
taken pursuant to NYSE Rule 49 beyond
the initial 10-calendar day period, the
NYSE must file a proposed rule change
with the Commission pursuant to
Section 19(b)(2) under the Act, and the
Commission would need to approve
such an extension before it could take
effect.28 In addition, the Commission
could, at any time, exercise its authority
under Section 12(k)(2) of the Act 29 to
terminate an action taken by the NYSE
under NYSE Rule 49.
NYSE Rule 49 also addresses
surveillance and the disciplinary
24 The Commission previously has approved
proposals by other national securities exchanges to
establish back-up trading arrangements. See, e.g.,
Securities Exchange Act Release Nos. 51717 (May
19, 2005), 70 FR 30160 (May 25, 2005) (File No. SR–
CBOE–2004–59) (approving proposal by the
Chicago Board Options Exchange, Incorporated to
enter into back-up trading arrangements with other
exchanges); 51926 (June 27, 2005), 70 FR 38232
(July 1, 2005) (File No. SR–Phlx–2004–65)
(approving proposal by the Philadelphia Stock
Exchange (‘‘Phlx’’) to enter into back-up trading
arrangements with other exchanges); 40088 (June
12, 1998), 63 FR 33426 (June 18, 1998) (File No.
SR–Phlx–98–25) (approving the trading of Dell
options listed on the Phlx at the American Stock
Exchange on a temporary basis); and 27365
(October 19, 1989), 54 FR 43511 (October 25, 1989)
(File Nos. SR–Amex–89–26; CBOE–89–21; PSE–89–
28; and Phlx–89–52) (approving proposals to trade
options listed on the Pacific Stock Exchange on
other exchanges following an earthquake).
25 See NYSE Rule 49(a)(1) and (3). See also note
8, supra, and accompanying text.
26 See NYSE Rule 49(c)(1).
27 See NYSE Rule 49(c)(2) and (3). The NYSE will
provide adequate prior notice to members,
Sponsored Participants, and investors of its
intention to terminate any action taken pursuant to
NYSE Rule 49. See NYSE Rule 49(c).
28 See NYSE Rule 49(c)(2).
29 15 U.S.C. 78l(k)(2).
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procedures that would apply in the
event that NYSE Arca serves as the
NYSE’s alternative trading facility, as
provided in the rule. In particular,
NYSE Arca would conduct surveillance
of trading in Exchange-listed securities
on behalf of the NYSE.30 NYSE
members and member organizations
would remain subject to the NYSE’s
jurisdiction for any disciplinary actions
related to the trading of NYSE-listed
securities on or through the systems and
facilities of NYSE Arca, and violations
of NYSE Arca’s rules would be referred
to the NYSE for prosecution according
to the NYSE’s disciplinary rules.31
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,32 that the
proposed rule change (File No. SR–
NYSE–2009–105) is approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.33
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–30596 Filed 12–24–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61204; File No. SR–BX–
2009–079]
Self-Regulatory Organizations;
NASDAQ OMX BX; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend IM–1002–1 To
Reflect Changes to a Corresponding
FINRA Rule
December 18, 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 December
3, 2009, NASDAQ OMX BX, Inc. (the
‘‘Exchange’’ or ‘‘BX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Exchange has designated the proposed
rule change as constituting a noncontroversial rule change under Rule
19b–4(f)(6) under the Act,3 which
renders the proposal effective upon
filing with the Commission. The
30 See
NYSE Rule 49(b)(5)(i).
NYSE Rule 49(b)(5)(ii).
32 15 U.S.C. 78s(b)(2).
33 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
31 See
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Federal Register / Vol. 74, No. 247 / Monday, December 28, 2009 / Notices
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 the [sic]
Substance of the Proposed Rule Change
The Exchange is filing this proposed
rule change to amend BX IM–1002–1 to
reflect recent changes to a
corresponding rule of the Financial
Industry Regulatory Authority
(‘‘FINRA’’). The Exchange will
implement the proposed rule change
thirty days after the date of the filing.
The text of the proposed rule change is
available at https://
nasdaqomxbx.cchwallstreet.com, at the
Exchange’s principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
BX based much of its rules on those
of The NASDAQ Stock Market LLC
(‘‘NASDAQ’’). Similarly, many of
NASDAQ’s rules are based on rules of
FINRA (formerly the National
Association of Securities Dealers
(‘‘NASD’’)). As a consequence, many of
BX’s rules closely mirror those of
FINRA. During 2008, FINRA embarked
on an extended process of moving rules
formerly designated as ‘‘NASD Rules’’
into a consolidated FINRA rulebook. In
most cases, FINRA has renumbered
these rules, and in some cases has
substantively amended them.
Accordingly, BX also has initiated a
process of modifying its rulebook to
ensure that BX rules corresponding to
FINRA/NASD rules continue to mirror
them as closely as practicable. In some
cases, it is not possible for the rule
numbers of BX rules to mirror
corresponding FINRA rules, because
existing or planned BX rules make use
of those numbers. However, wherever
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11:00 Dec 24, 2009
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possible, BX plans to update its rules to
reflect changes to corresponding FINRA
rules.
This filing addresses BX IM–1002–1,
which prohibits members and
associated persons from filing with BX
misleading information relating to
membership or registration, and which
formerly corresponded to NASD
IM–1000–1. In SR–FINRA–2009–009,4
FINRA redesignated that rule as FINRA
Rule 1122 and made amendments to
clarify and simplify the rule. NASD
IM–1000–1 provided that the filing of
membership or registration information
as a Registered Representative with
FINRA which is incomplete or
inaccurate so as to be misleading, or
which could in any way tend to
mislead, or the failure to correct such
filing after notice thereof, may be
deemed conduct inconsistent with just
and equitable principles of trade and
may be subject to disciplinary action.
FINRA’s rule change clarified the
rule’s applicability to members and
persons associated with members by
specifying that ‘‘no member or person
associated with a member’’ shall file
incomplete or misleading membership
or registration information. FINRA also
eliminated the reference to the filing of
registration information ‘‘as a Registered
Representative’’ to clarify that the rule
applies to the filing of registration
information regarding any category of
registration. In addition, FINRA deleted
the reference that the prohibited
conduct may be deemed inconsistent
with just and equitable principles of
trade and subject to disciplinary action
as unnecessary and to better reflect the
adoption of the NASD IM as a standalone FINRA rule. Likewise, BX is
proposing to make changes to the text of
IM–1002–1 that virtually mirror the
changes made by FINRA to NASD
IM–1000–1 so that the rules remain
consistent for regulatory purposes.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,5
in general, and with Sections [sic]
6(b)(5) of the Act,6 in particular, in that
the proposal is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
4 Securities Exchange Act Release No. 59789
(April 20, 2009), 74 FR 18767 (April 24, 2009) (SR–
FINRA–2009–009).
5 15 U.S.C. 78f.
6 15 U.S.C. 78f(b)(5).
PO 00000
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68645
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest. The
proposed changes will conform BX IM–
1002–1 to recent changes made to a
corresponding FINRA rule, to promote
application of consistent regulatory
standards.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
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
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
7 15
8 17
E:\FR\FM\28DEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
28DEN1
68646
Federal Register / Vol. 74, No. 247 / Monday, December 28, 2009 / Notices
No. SR–BX–2009–079 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–61202; File No. SR–Phlx–
2009–103]
• 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 No.
SR–BX–2009–079. 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,9 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 BX. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File No. SR–BX–2009–
079 and should be submitted on or
before January 19, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–30599 Filed 12–24–09; 8:45 am]
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BILLING CODE 8011–01–P
9 The text of the proposed rule change is available
on the Commission’s Web site at https://
www.sec.gov.
10 17 CFR 200.30–3(a)(12).
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Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Codify
Certain Provisions of the Options
Listing Procedures Plan Into Phlx’s
Rules
December 18, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 2 thereunder,
notice is hereby given that on December
7, 2009, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared by the Exchange. The
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
The Exchange is filing with the
Commission a proposal to amend its
Rule 1012 (Series of Options Open for
Trading) by adding Commentary .10 to
apply uniform objective standards to the
range of options series exercise (or
strike) prices available for trading on the
Exchange. The Exchange is also
amending Options Floor Procedure
Advice F–22 (Intra-Day Addition of
Strike Prices) (‘‘OFPA’’ or ‘‘Advice’’) to
add a cross-reference to Commentary .10
to Rule 1012.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.com/
NASDAQOMXPHLX/Filings/, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00081
Fmt 4703
Sfmt 4703
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposal is to
implement in Phlx rules, specifically
Commentary .10 to Rule 1012, changes
that were recently made to the Plan for
the Purpose of Developing and
Implementing Procedures Designated to
Facilitate the Listing and Trading of
Standardized Options Submitted
Pursuant to Section 11A(a)(3)(B) of the
Securities Exchange Act of 1934, also
known as the Options Listing
Procedures Plan (‘‘OLPP’’), in
Amendment No. 3 thereto.3; and to
cross-reference Commentary .10 to Rule
1012 in OFPA F–22. The proposed rule
change in Commentary .10 incorporates
uniform objective standards to the range
of options series exercise (or strike)
prices available for trading on the
Exchange, as a quote mitigation strategy
intended to reduce the overall number
of option series available for trading,
which will in turn lessen the rate of
increase in quote traffic (‘‘range
limitations’’ or ‘‘range limitation
strategy’’).4
Rule 1012 currently indicates what
series of option contracts may be open
for trading after a particular class of
options has been approved for trading
on the Exchange. This proposal adds
Commentary .10 to Rule 1012 that
applies certain ‘‘range limitations’’ to
3 See Securities Exchange Act Release No. 60531
(August 19, 2009), 74 FR 43173 (August 26,
2009)(order approving Amendment No. 3 to the
OLPP, which would apply uniform objective
standards to the range of options series exercise or
strike prices available for trading on exchanges that
are sponsors of OLPP). The sponsors of OLPP
include Phlx, Chicago Board Options Exchange,
Incorporated; International Stock Exchange LLC;
NASDAQ OMX BX, Inc.; The NASDAQ Stock
Market LLC; NYSE Amex, LLC; and NYSE Arca,
Inc. (together known as the ‘‘Plan Sponsor
Exchanges’’). The OLPP is a national market system
plan that, among other things, sets forth procedures
governing the listing of new options series and
replaces and supersedes the Joint-Exchange Options
Plan (‘‘JEOP’’). See Securities Exchange Act Release
No. 44521 (July 6, 2009), 66 FR 36809 (July 13,
2001)(order approving OLPP). See also Securities
Exchange Act Release No. 29698 (September 17,
1991), 56 FR 48954 (September 25, 1991)(order
approving JEOP).
4 The Exchange expects that other Plan Sponsor
Exchanges will file similar rule change proposals
implementing range limitations in their rules to
mitigate quotes. See, for example, Securities
Exchange Act Release No. 60995 (November 13,
2009), 74 FR 60008 (November 19, 2009)(SR–
CBOE–2009–084)(notice of filing and immediate
effectiveness).
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]]>Agencies
[Federal Register Volume 74, Number 247 (Monday, December 28, 2009)]
[Notices]
[Pages 68644-68646]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-30599]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61204; File No. SR-BX-2009-079]
Self-Regulatory Organizations; NASDAQ OMX BX; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend IM-1002-1
To Reflect Changes to a Corresponding FINRA Rule
December 18, 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 December 3, 2009, NASDAQ OMX BX, Inc. (the ``Exchange'' or ``BX'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Exchange has designated
the proposed rule change as constituting a non-controversial rule
change under Rule 19b-4(f)(6) under the Act,\3\ which renders the
proposal effective upon filing with the Commission. The
[[Page 68645]]
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 the [sic]
Substance of the Proposed Rule Change
The Exchange is filing this proposed rule change to amend BX IM-
1002-1 to reflect recent changes to a corresponding rule of the
Financial Industry Regulatory Authority (``FINRA''). The Exchange will
implement the proposed rule change thirty days after the date of the
filing. The text of the proposed rule change is available at https://nasdaqomxbx.cchwallstreet.com, at the Exchange's principal office, and
at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
BX based much of its rules on those of The NASDAQ Stock Market LLC
(``NASDAQ''). Similarly, many of NASDAQ's rules are based on rules of
FINRA (formerly the National Association of Securities Dealers
(``NASD'')). As a consequence, many of BX's rules closely mirror those
of FINRA. During 2008, FINRA embarked on an extended process of moving
rules formerly designated as ``NASD Rules'' into a consolidated FINRA
rulebook. In most cases, FINRA has renumbered these rules, and in some
cases has substantively amended them. Accordingly, BX also has
initiated a process of modifying its rulebook to ensure that BX rules
corresponding to FINRA/NASD rules continue to mirror them as closely as
practicable. In some cases, it is not possible for the rule numbers of
BX rules to mirror corresponding FINRA rules, because existing or
planned BX rules make use of those numbers. However, wherever possible,
BX plans to update its rules to reflect changes to corresponding FINRA
rules.
This filing addresses BX IM-1002-1, which prohibits members and
associated persons from filing with BX misleading information relating
to membership or registration, and which formerly corresponded to NASD
IM-1000-1. In SR-FINRA-2009-009,\4\ FINRA redesignated that rule as
FINRA Rule 1122 and made amendments to clarify and simplify the rule.
NASD IM-1000-1 provided that the filing of membership or registration
information as a Registered Representative with FINRA which is
incomplete or inaccurate so as to be misleading, or which could in any
way tend to mislead, or the failure to correct such filing after notice
thereof, may be deemed conduct inconsistent with just and equitable
principles of trade and may be subject to disciplinary action.
---------------------------------------------------------------------------
\4\ Securities Exchange Act Release No. 59789 (April 20, 2009),
74 FR 18767 (April 24, 2009) (SR-FINRA-2009-009).
---------------------------------------------------------------------------
FINRA's rule change clarified the rule's applicability to members
and persons associated with members by specifying that ``no member or
person associated with a member'' shall file incomplete or misleading
membership or registration information. FINRA also eliminated the
reference to the filing of registration information ``as a Registered
Representative'' to clarify that the rule applies to the filing of
registration information regarding any category of registration. In
addition, FINRA deleted the reference that the prohibited conduct may
be deemed inconsistent with just and equitable principles of trade and
subject to disciplinary action as unnecessary and to better reflect the
adoption of the NASD IM as a stand-alone FINRA rule. Likewise, BX is
proposing to make changes to the text of IM-1002-1 that virtually
mirror the changes made by FINRA to NASD IM-1000-1 so that the rules
remain consistent for regulatory purposes.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\5\ in general, and with
Sections [sic] 6(b)(5) of the Act,\6\ in particular, in that the
proposal is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
The proposed changes will conform BX IM-1002-1 to recent changes made
to a corresponding FINRA rule, to promote application of consistent
regulatory standards.
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\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(6) thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
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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
[[Page 68646]]
No. SR-BX-2009-079 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 No. SR-BX-2009-079. 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,\9\ 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 BX. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File No. SR-BX-2009-079 and should be
submitted on or before January 19, 2010.
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\9\ The text of the proposed rule change is available on the
Commission's Web site at https://www.sec.gov.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-30599 Filed 12-24-09; 8:45 am]
BILLING CODE 8011-01-P
