Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Certain Non-Substantive Technical Changes to FINRA Rule 4521(d), 4596-4598 [2010-1662]

Download as PDF 4596 Federal Register / Vol. 75, No. 18 / Thursday, January 28, 2010 / Notices Inc. (‘‘BATS X’’). BATS Y Exchange would operate as a self-regulatory organization, separate from BATS X, under its own exchange license. In general, BATS Y Exchange will operate a fully automated electronic book for orders to buy or sell securities with a continuous, automated matching function. Liquidity will be derived from orders to buy and sell submitted to BATS Y Exchange electronically by BATS Y Exchange members from remote locations as well as from quotes submitted by BATS Y Exchange members that chose to register with BATS Y Exchange as a market maker. BATS Y Exchange will not have a trading floor. BATS Y Exchange’s Form 1 is available at the Commission’s Public Reference Room and https:// www.sec.gov. Interested persons are invited to submit written data, views, and arguments concerning BATS Y Exchange’s Form 1, including whether BATS Y Exchange’s application is consistent with the Exchange 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 10–198 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number 10–198. 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 BATS Y Exchange’s Form 1 filed with the Commission, and all written communications relating to the application 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. VerDate Nov<24>2008 17:16 Jan 27, 2010 Jkt 220001 All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number 10–198 and should be submitted on or before March 15, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.2 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–1767 Filed 1–27–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61408; File No. SR–FINRA– 2010–004] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Certain NonSubstantive Technical Changes to FINRA Rule 4521(d) January 22, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’ or ‘‘SEA’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on January 20, 2010, 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 and II below, which Items have been prepared by FINRA. FINRA has designated the proposed rule change as constituting a ‘‘non-controversial’’ rule change under paragraph (f)(6) of Rule 19b–4 under the Act,3 which renders the proposal effective upon receipt of this filing by the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change FINRA is proposing to make certain non-substantive technical changes to FINRA Rule 4521(d). The text of the proposed rule change is below. Proposed new language is italicized; proposed deletions are in brackets: * * * * * 2 17 CFR 200.30–3(a)(71)(i). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 1 15 PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 4000. FINANCIAL AND OPERATIONAL RULES * * * * * 4500. BOOKS, RECORDS AND REPORTS * * * * * 4520. Financial Records and Reporting Requirements 4521. Notifications, Questionnaires and Reports (a) through (c) No Change. (d)(1) No Change. (2) Each member carrying margin accounts for customers shall submit reports containing the following customer information: (A) No Change. (B) Total of all free credit balances in all cash accounts and all securities margin accounts. (3) For purposes of this paragraph (d): (A) Only free credit balances in cash and securities margin accounts shall be included in the member’s report. Balances in short accounts and in [S]special [M]memorandum [A]accounts ([as defined in Section 2.2 of] see Regulation T [under the Exchange Act] of the Board of Governors of the Federal Reserve System) shall not be considered as free credit balances. (B) Reported debit or credit balance information shall not include the accounts of other [organizations that are] FINRA members, or of the associated persons of the member submitting the report where such associated person’s account is excluded from the definition of customer pursuant to SEA Rule 15c3–3. (e) through (f) No Change. * * * Supplementary Material: lllll .01 No Change. * * * * * II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FINRA included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those 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 parts of such statements. E:\FR\FM\28JAN1.SGM 28JAN1 Federal Register / Vol. 75, No. 18 / Thursday, January 28, 2010 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose On November 4, 2009, the Commission approved FINRA Rule 4521 (Notifications, Questionnaires and Reports) as part of a new, consolidated set of financial responsibility rules 4 for inclusion in FINRA’s consolidated rulebook (‘‘Consolidated FINRA Rulebook’’).5 FINRA announced in Regulatory Notice 09–71 that the new financial responsibility rules will be implemented on February 8, 2010.6 FINRA Rule 4521(d) sets forth certain reporting requirements for members carrying margin accounts for customers. The proposed rule change would make several non-substantive technical changes to the rule. FINRA Rule 4521(d)(2)(B) would be revised to clarify that members must submit the total of all free credit balances in all cash accounts and all securities margin accounts. Similarly, in FINRA Rule 4521(d)(3)(A) ‘‘margin accounts’’ would be revised to read ‘‘securities margin accounts.’’ Further, the reference to special memorandum accounts in FINRA Rule 4521(d)(3)(A) would be revised to align with Regulation T of the Board of Governors of the Federal Reserve System. Lastly, in FINRA Rule 4521(d)(3)(B) ‘‘other organizations that are FINRA members’’ would be revised to read ‘‘other FINRA members.’’ FINRA has filed the proposed rule change for immediate effectiveness and has requested that the SEC waive the requirement that the proposed rule change not become operative for 30 days after the date of the filing, such that FINRA can implement the proposed rule change on February 8, 2010. mstockstill on DSKH9S0YB1PROD with NOTICES 4 See Regulatory Notice 09–71 (December 2009) (SEC Approves Consolidated FINRA Rules Governing Financial Responsibility). See also Securities Exchange Act Release No. 60933 (November 4, 2009), 74 FR 58334 (November 12, 2009) (Order Granting Approval to Proposed Rule Change; File No. SR–FINRA–2008–067). 5 The current FINRA rulebook consists of (1) FINRA Rules; (2) NASD Rules; and (3) rules incorporated from NYSE (‘‘Incorporated NYSE Rules’’) (together, the NASD Rules and Incorporated NYSE Rules are referred to as the ‘‘Transitional Rulebook’’). While the NASD Rules generally apply to all FINRA members, the Incorporated NYSE Rules apply only to those members of FINRA that are also members of the NYSE (‘‘Dual Members’’). The FINRA Rules apply to all FINRA members, unless such rules have a more limited application by their terms. For more information about the rulebook consolidation process, see Information Notice, March 12, 2008 (Rulebook Consolidation Process). 6 See note 4. VerDate Nov<24>2008 17:16 Jan 27, 2010 Jkt 220001 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,7 which requires, among other things, that FINRA rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. FINRA believes that the proposed rule change is consistent with the purposes of the Act because it will provide greater clarity to members and the public regarding FINRA’s rules. B. Self-Regulatory Organization’s Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 8 and Rule 19b– 4(f)(6) thereunder.9 A proposed rule change filed under 19b–4(f)(6) normally does not become operative prior to 30 days after the date of filing. However, Rule 19b– 4(f)(6)(iii) 10 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. As noted above, on November 4, 2009, the Commission approved FINRA 4521 (Notifications, Questionnaires and 7 15 U.S.C. 78o–3(b)(6). U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b–4(f)(6). 10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires that a self-regulatory organization submit to the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Commission notes that FINRA has satisfied the five-day pre-filing notice requirement. 8 15 PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 4597 Reports) as part of a new, consolidated set of financial responsibility rules.11 FINRA has requested that the Commission waive the 30-day operative delay set forth in Rule 19b–4(f)(6)(iii) under the Act 12 in order for the rule to become operative upon filing. The Commission notes that the proposed rule changes makes technical nonsubstantive changes to Rule 4521. The Commission further notes that the operative date of FINRA 4150 is February 8, 2009.13 The Commission believes that the earlier operative date is consistent with the protection of investors and the public interest because the proposed rule change permits FINRA to implement the rule without further delay and in time for the operative date of the financial responsibility rules.14 At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–FINRA–2010–004 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–2010–004. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your 11 See notes 4 and 5. CFR 240.19b–4(f)(6)(iii). 13 See FINRA Regulatory Notice 09–71 (December 2009). 14 For purposes only of waiving the 30-day operative delay of this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 12 17 E:\FR\FM\28JAN1.SGM 28JAN1 4598 Federal Register / Vol. 75, No. 18 / Thursday, January 28, 2010 / Notices 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 available publicly. All submissions should refer to File Number SR–FINRA–2010–004 and should be submitted on or before February 18, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–1662 Filed 1–27–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61403; File No. SR–NYSE Amex–2009–85] Self-Regulatory Organizations; NYSE Amex, Inc.; Order Approving Proposed Rule Change To Establish the NYSE Amex Realtime Reference Prices Service mstockstill on DSKH9S0YB1PROD with NOTICES January 22, 2010. I. Introduction On November 30, 2009, the NYSE Amex, Inc. (‘‘NYSE Amex’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 a proposed rule change to 15 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Nov<24>2008 17:16 Jan 27, 2010 Jkt 220001 establish the NYSE Amex Realtime Reference Prices service and to establish a flat monthly fee and a per-query fee for that service. The proposed rule change was published for comment in the Federal Register on December 18, 2009.3 The Commission received no comments on the proposal. This order approves the proposed rule change. II. Description of the Proposal a. The Service The Exchange proposes to establish the NYSE Amex Realtime Reference Prices service and to establish a flat monthly fee and a per-query fee for that service. The Exchange believes that the NYSE Amex Realtime Reference Prices service would provide a low-cost service that makes real-time prices widely available to casual investors, provides vendors with a useful real-time substitute for delayed prices; and relieves vendors of administrative burdens. The Exchange states that the product would respond to the requirements for distribution of realtime last sale prices over the internet for reference purposes, rather than as a basis for making trading decisions. The NYSE Amex Realtime Reference Prices service would allow internet service providers, traditional market data vendors, and others (‘‘NYSE AmexOnly Vendors’’) to make available NYSE Amex Realtime Reference Prices on a real-time basis.4 The NYSE Amex Realtime Reference Price information includes last sale prices for all securities that trade on the Exchange, updated in real-time. In addition, the product also includes open, high and low prices and cumulative volume. The Exchange anticipates that it would update these data elements every second, though initially it would update them once per minute. The product does not include bid/ask quotations or the size of each trade. The Exchange would not permit NYSE Amex-Only Vendors to provide NYSE Amex Realtime Reference Prices in a context in which a trading or orderrouting decision can be implemented unless the NYSE Amex-Only Vendor also provides consolidated displays of Network A last sale prices available in an equivalent manner, as Rule 603(c)(1) of Regulation NMS requires. The Exchange states that the service would eliminate some of the 3 See Securities Exchange Act Release No. 61144 (December 10, 2009), 74 FR 67275. 4 The Exchange notes that it will make the NYSE Amex Realtime Reference Prices available to vendors no earlier than it makes those prices available to the processor under the CTA and Nasdaq/UTP Plans. PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 administrative burdens associated with the distribution of real-time CTA prices. The service would feature a flat, fixed monthly vendor fee, no user-based fees, no vendor reporting requirements, and no professional or non-professional subscriber agreements. b. The Fees The Exchange proposes to establish a $10,000 monthly flat fee that entitles an NYSE Amex-Only Vendor to receive access to the NYSE Amex Realtime Reference Prices datafeed. For that fee, the NYSE Amex-Only Vendor could provide unlimited NYSE Amex Realtime Reference Prices to an unlimited number of the NYSE AmexOnly Vendor’s subscribers and customers. The Exchange does not propose to impose any device or enduser fee for the NYSE Amex-Only Vendors’ distribution of NYSE Amex Realtime Reference Prices. In addition, the Exchange proposes to establish as an alternative to the fixed monthly fee a fee of $.004 for each realtime reference price that a NYSE AmexOnly Vendor disseminates to its customers. The Exchange proposes to limit a NYSE Amex-Only Vendor’s exposure under this alternative fee by setting $10,000, the same amount as the proposed fixed monthly rate, as the maximum fee that an NYSE Amex-Only Vendor would have to pay for real-time reference prices that it disseminates in any calendar month pursuant to the perquery fee. In order to take advantage of the perquery fee, a NYSE Amex-Only Vendor must document in its Exhibit A that it has the ability to measure accurately the number of queries and must have the ability to report aggregate query quantities on a monthly basis. The Exchange states that it would impose the per-query fee only on the dissemination of real-time reference prices. NYSE Amex-Only Vendors may provide delayed data services in the same manner as they do today. The per-query charge would be imposed on NYSE Amex-Only Vendors, not end-users, and would be payable on a monthly basis. NYSE Amex-Only Vendors may elect to disseminate NYSE Amex Realtime Reference Prices pursuant to the per-query fee rather than the fixed monthly fee. c. Justification of Fees The Exchange believes that the proposed flat monthly fee and per-query fee for the NYSE Amex Realtime Reference Prices service enable Internet service providers and traditional vendors to contribute to the Exchange’s operating costs in a manner that is E:\FR\FM\28JAN1.SGM 28JAN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 75, Number 18 (Thursday, January 28, 2010)]
[Notices]
[Pages 4596-4598]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-1662]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61408; File No. SR-FINRA-2010-004]


 Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of 
Proposed Rule Change To Make Certain Non-Substantive Technical Changes 
to FINRA Rule 4521(d)

January 22, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'' or ``SEA'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby 
given that on January 20, 2010, 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 and II below, which Items have been prepared by 
FINRA. FINRA has designated the proposed rule change as constituting a 
``non-controversial'' rule change under paragraph (f)(6) of Rule 19b-4 
under the Act,\3\ which renders the proposal effective upon receipt of 
this filing by the Commission. The Commission is publishing this notice 
to solicit comments on the proposed rule change from interested 
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    FINRA is proposing to make certain non-substantive technical 
changes to FINRA Rule 4521(d). The text of the proposed rule change is 
below. Proposed new language is italicized; proposed deletions are in 
brackets:
* * * * *
4000. FINANCIAL AND OPERATIONAL RULES
* * * * *
4500. BOOKS, RECORDS AND REPORTS
* * * * *
4520. Financial Records and Reporting Requirements
4521. Notifications, Questionnaires and Reports
    (a) through (c) No Change.
    (d)(1) No Change.
    (2) Each member carrying margin accounts for customers shall submit 
reports containing the following customer information:
    (A) No Change.
    (B) Total of all free credit balances in all cash accounts and all 
securities margin accounts.
    (3) For purposes of this paragraph (d):
    (A) Only free credit balances in cash and securities margin 
accounts shall be included in the member's report. Balances in short 
accounts and in [S]special [M]memorandum [A]accounts ([as defined in 
Section 2.2 of] see Regulation T [under the Exchange Act] of the Board 
of Governors of the Federal Reserve System) shall not be considered as 
free credit balances.
    (B) Reported debit or credit balance information shall not include 
the accounts of other [organizations that are] FINRA members, or of the 
associated persons of the member submitting the report where such 
associated person's account is excluded from the definition of customer 
pursuant to SEA Rule 15c3-3.
    (e) through (f) No Change.
    * * * Supplementary Material: ----------
    .01 No Change.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, FINRA included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of those 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 parts of such statements.

[[Page 4597]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On November 4, 2009, the Commission approved FINRA Rule 4521 
(Notifications, Questionnaires and Reports) as part of a new, 
consolidated set of financial responsibility rules \4\ for inclusion in 
FINRA's consolidated rulebook (``Consolidated FINRA Rulebook'').\5\ 
FINRA announced in Regulatory Notice 09-71 that the new financial 
responsibility rules will be implemented on February 8, 2010.\6\
---------------------------------------------------------------------------

    \4\ See Regulatory Notice 09-71 (December 2009) (SEC Approves 
Consolidated FINRA Rules Governing Financial Responsibility). See 
also Securities Exchange Act Release No. 60933 (November 4, 2009), 
74 FR 58334 (November 12, 2009) (Order Granting Approval to Proposed 
Rule Change; File No. SR-FINRA-2008-067).
    \5\ The current FINRA rulebook consists of (1) FINRA Rules; (2) 
NASD Rules; and (3) rules incorporated from NYSE (``Incorporated 
NYSE Rules'') (together, the NASD Rules and Incorporated NYSE Rules 
are referred to as the ``Transitional Rulebook''). While the NASD 
Rules generally apply to all FINRA members, the Incorporated NYSE 
Rules apply only to those members of FINRA that are also members of 
the NYSE (``Dual Members''). The FINRA Rules apply to all FINRA 
members, unless such rules have a more limited application by their 
terms. For more information about the rulebook consolidation 
process, see Information Notice, March 12, 2008 (Rulebook 
Consolidation Process).
    \6\ See note 4.
---------------------------------------------------------------------------

    FINRA Rule 4521(d) sets forth certain reporting requirements for 
members carrying margin accounts for customers. The proposed rule 
change would make several non-substantive technical changes to the 
rule. FINRA Rule 4521(d)(2)(B) would be revised to clarify that members 
must submit the total of all free credit balances in all cash accounts 
and all securities margin accounts. Similarly, in FINRA Rule 
4521(d)(3)(A) ``margin accounts'' would be revised to read ``securities 
margin accounts.'' Further, the reference to special memorandum 
accounts in FINRA Rule 4521(d)(3)(A) would be revised to align with 
Regulation T of the Board of Governors of the Federal Reserve System. 
Lastly, in FINRA Rule 4521(d)(3)(B) ``other organizations that are 
FINRA members'' would be revised to read ``other FINRA members.''
    FINRA has filed the proposed rule change for immediate 
effectiveness and has requested that the SEC waive the requirement that 
the proposed rule change not become operative for 30 days after the 
date of the filing, such that FINRA can implement the proposed rule 
change on February 8, 2010.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\7\ which requires, among 
other things, that FINRA rules must be designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, and, in general, to protect investors and the 
public interest. FINRA believes that the proposed rule change is 
consistent with the purposes of the Act because it will provide greater 
clarity to members and the public regarding FINRA's rules.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.\9\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under 19b-4(f)(6) normally does not 
become operative prior to 30 days after the date of filing. However, 
Rule 19b-4(f)(6)(iii) \10\ permits the Commission to designate a 
shorter time if such action is consistent with the protection of 
investors and the public interest. As noted above, on November 4, 2009, 
the Commission approved FINRA 4521 (Notifications, Questionnaires and 
Reports) as part of a new, consolidated set of financial responsibility 
rules.\11\ FINRA has requested that the Commission waive the 30-day 
operative delay set forth in Rule 19b-4(f)(6)(iii) under the Act \12\ 
in order for the rule to become operative upon filing. The Commission 
notes that the proposed rule changes makes technical non-substantive 
changes to Rule 4521. The Commission further notes that the operative 
date of FINRA 4150 is February 8, 2009.\13\ The Commission believes 
that the earlier operative date is consistent with the protection of 
investors and the public interest because the proposed rule change 
permits FINRA to implement the rule without further delay and in time 
for the operative date of the financial responsibility rules.\14\
---------------------------------------------------------------------------

    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires that a self-regulatory organization submit to the 
Commission written notice of its intent to file the proposed rule 
change, along with a brief description and text of the proposed rule 
change, at least five business days prior to the date of filing of 
the proposed rule change, or such shorter time as designated by the 
Commission. The Commission notes that FINRA has satisfied the five-
day pre-filing notice requirement.
    \11\ See notes 4 and 5.
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ See FINRA Regulatory Notice 09-71 (December 2009).
    \14\ For purposes only of waiving the 30-day operative delay of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-FINRA-2010-004 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-2010-004. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your

[[Page 4598]]

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 available publicly. All submissions should refer to File Number 
SR-FINRA-2010-004 and should be submitted on or before February 18, 
2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-1662 Filed 1-27-10; 8:45 am]
BILLING CODE 8011-01-P

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