Self-Regulatory Organizations; The NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 3121 To Reflect Changes to Corresponding FINRA Rule, 16213-16214 [2010-7104]
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Federal Register / Vol. 75, No. 61 / Wednesday, March 31, 2010 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61769; File No. SR–BX–
2010–020]
Self-Regulatory Organizations; The
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
3121 To Reflect Changes to
Corresponding FINRA Rule
March 24, 2010.
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 March 19,
2010, The 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
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
jlentini on DSKJ8SOYB1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing this proposed
rule change to amend BX Rule 3121 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.
Proposed new language is in italics and
proposed deletions are in brackets.
*
*
*
*
*
[ 3121]4570. Custodian of [the]Books
and Records
A member who files a [Securities and
Exchange Commission] Form BDW shall
designate on the Form BDW, as the
custodian of the member’s books and
records, a person associated with the
member at the time that the Form BDW
is filed.
*
*
*
*
*
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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
19:40 Mar 30, 2010
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Many of BX’s rules are based on rules
of FINRA (formerly the National
Association of Securities Dealers
(‘‘NASD’’)). 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 proposes to
initiate a process of modifying its
rulebook to ensure that BX rules
corresponding to FINRA rules continue
to mirror them as closely as practicable.
In some cases, it will not be possible for
the rule numbers of BX rules to mirror
corresponding FINRA rule numbers,
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 Rule 3121,
which formerly corresponded to NASD
3121. In SR–FINRA–2009–080,4 FINRA
redesignated NASD Rule 3121 as FINRA
Rule 4570 with minor technical
changes. FINRA Rule 4570 requires a
member to designate, as the custodian of
its required books and records on Form
BDW, a person who is associated with
the firm at the time Form BDW is filed.
The rule is intended to enhance the
SRO’s ability to obtain required books
and records from firms that are no
longer conducting business and to
ensure that the custodian of the books
and records has been subject to certain
background checks. The FINRA Rule
4570 text makes minor technical
changes by adopting terminology
consistent with that used in Form BDW.
BX is adopting the new FINRA rule in
full, and redesignating BX Rule 3121 to
be BX Rule 4570, so as to correspond to
the new FINRA rule number.
4 Securities Exchange Act Release No. 61332
(January 12, 2010), 75 F.R. 3270 (January 20, 2010)
(SR–FINRA–2009–080).
2 17
VerDate Nov<24>2008
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.
Jkt 220001
PO 00000
Frm 00148
Fmt 4703
Sfmt 4703
16213
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 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 Rule
3121 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
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) of the Act 7 and Rule 19b–
4(f)(6) 8 thereunder in that it effects a
change that: (i) Does not significantly
affect the protection of investors or the
public interest; (ii) does not impose any
significant burden on competition; and
(iii) by its terms, does not become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate if consistent
5 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
7 15 U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires 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 the
Exchange has satisfied the five-day pre-filing notice
requirement.
6 15
E:\FR\FM\31MRN1.SGM
31MRN1
16214
Federal Register / Vol. 75, No. 61 / Wednesday, March 31, 2010 / Notices
with the protection of investors and the
public interest.
In its guidance on the proposed rules
of Self-Regulatory Organizations
(‘‘SROs’’),9 the Commission concluded
that filings based on the rules of another
SRO already approved by the
Commission are eligible for immediate
effectiveness under Rule 19b–4(f)(6).10
The Commission noted that ‘‘a proposed
rule change appropriately may be filed
as an immediately effective rule so long
as it is based on and similar to another
SRO’s rule and each policy issue raised
by the proposed rule (i) has been
considered previously by the
Commission when the Commission
approved another exchange’s rule (that
was subject to notice and comment),
and (ii) the rule change resolves such
policy issue in a manner consistent with
such prior approval.’’11 The Exchange
notes that the change is identical to a
change by FINRA approved by the
Commission.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, 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–BX–2010–020 on the
subject line.
jlentini on DSKJ8SOYB1PROD with NOTICES
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–BX–2010–020. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
9 Securities Exchange Act Release No. 58092 (July
3, 2008), 73 FR 40144 (July 11, 2008).
10 17 CFR 240.19b–4(f)(6).
11 See supra note 9 at 40149.
VerDate Nov<24>2008
19:40 Mar 30, 2010
Jkt 220001
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 Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions.
You should submit only information
that you wish to make available
publicly. All submissions should refer
to File Number SR–BX–2010–020 and
should be submitted on or before April
21, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–7104 Filed 3–30–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61783; File No. SR–NSCC–
2010–03]
Self-Regulatory Organizations; The
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Expand the Eligibility
of Securities Processed Through the
ID Net Service
March 25, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
March 5, 2010, the National Securities
Clearing Corporation (‘‘NSCC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change described in Items
I, II, and III below, which items have
been prepared primarily by NSCC.
NSCC filed the proposal pursuant to
Section 19(b)(3)(A)(iii) of the Act 2 and
Rule 19b–4(f)(4) 3 thereunder so that the
proposal was effective upon filing with
the Commission. The Commission is
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(iii).
3 17 CFR 240.19b–4(f)(4).
1 15
PO 00000
Frm 00149
Fmt 4703
Sfmt 4703
publishing this notice to solicit
comments on the rule change from
interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change amends
NSCC’s rules regarding the eligibility of
securities processed through the ID Net
Service (‘‘ID Net’’).
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NSCC 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. NSCC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.4
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
On June 2, 2008, the Commission
approved a rule change that provided
for the settlement of institutional
transactions through a joint service of
NSCC and The Depository Trust
Company (‘‘DTC’’) called ID Net. ID Net
enables subscribers to the service to net
all eligible affirmed institutional
transactions at DTC against Continuous
Net Settlement (‘‘CNS’’) transactions 5 at
NSCC. ID Net accepts affirmed
institutional transactions that are
eligible for ID Net from clearing
agencies,6 entities exempt from clearing
agency registration with the
Commission, and ‘‘qualified vendors’’ 7
and nets the broker-dealer’s affirmed
institutional transactions side of such
transaction with the broker-dealer’s CNS
obligations.
Participation in ID Net is voluntary.
Eligibility for ID Net requires that a
4 The Commission has modified the text of the
summaries prepared by NSCC.
5 NSCC’s Continuous Net Settlement System
(CNS) is an automated accounting and securities
settlement system that centralizes and nets the
settlement of compared and recorded security
transactions and maintains an orderly flow of
security and money balances. CNS provides
clearance for equities, corporate bonds, unit
investment trusts, and municipal bonds that are
eligible for book-entry transfer at DTC.
6 The clearing agency must be registered pursuant
to Section 17A of the Act or obtain an exemption.
7 The term ‘‘qualified vendor’’ is defined in the
rules of the New York Stock Exchange, the National
Association of Securities Dealers, and other selfregulatory organizations.
E:\FR\FM\31MRN1.SGM
31MRN1
Agencies
[Federal Register Volume 75, Number 61 (Wednesday, March 31, 2010)]
[Notices]
[Pages 16213-16214]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-7104]
[[Page 16213]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61769; File No. SR-BX-2010-020]
Self-Regulatory Organizations; The NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 3121 To Reflect Changes to Corresponding FINRA Rule
March 24, 2010.
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 March 19, 2010, The 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 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
The Exchange is filing this proposed rule change to amend BX Rule
3121 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.
Proposed new language is in italics and proposed deletions are in
brackets.
* * * * *
[ 3121]4570. Custodian of [the]Books and Records
A member who files a [Securities and Exchange Commission] Form BDW
shall designate on the Form BDW, as the custodian of the member's books
and records, a person associated with the member at the time that the
Form BDW is filed.
* * * * *
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
Many of BX's rules are based on rules of FINRA (formerly the
National Association of Securities Dealers (``NASD'')). 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 proposes to initiate a
process of modifying its rulebook to ensure that BX rules corresponding
to FINRA rules continue to mirror them as closely as practicable. In
some cases, it will not be possible for the rule numbers of BX rules to
mirror corresponding FINRA rule numbers, 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 Rule 3121, which formerly corresponded to
NASD 3121. In SR-FINRA-2009-080,\4\ FINRA redesignated NASD Rule 3121
as FINRA Rule 4570 with minor technical changes. FINRA Rule 4570
requires a member to designate, as the custodian of its required books
and records on Form BDW, a person who is associated with the firm at
the time Form BDW is filed. The rule is intended to enhance the SRO's
ability to obtain required books and records from firms that are no
longer conducting business and to ensure that the custodian of the
books and records has been subject to certain background checks. The
FINRA Rule 4570 text makes minor technical changes by adopting
terminology consistent with that used in Form BDW.
---------------------------------------------------------------------------
\4\ Securities Exchange Act Release No. 61332 (January 12,
2010), 75 F.R. 3270 (January 20, 2010) (SR-FINRA-2009-080).
---------------------------------------------------------------------------
BX is adopting the new FINRA rule in full, and redesignating BX
Rule 3121 to be BX Rule 4570, so as to correspond to the new FINRA rule
number.
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 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 Rule 3121 to recent changes made to a
corresponding FINRA rule, to promote application of consistent
regulatory standards.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6) \8\ thereunder
in that it effects a change that: (i) Does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent
[[Page 16214]]
with the protection of investors and the public interest.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires 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 the Exchange has satisfied the
five-day pre-filing notice requirement.
---------------------------------------------------------------------------
In its guidance on the proposed rules of Self-Regulatory
Organizations (``SROs''),\9\ the Commission concluded that filings
based on the rules of another SRO already approved by the Commission
are eligible for immediate effectiveness under Rule 19b-4(f)(6).\10\
The Commission noted that ``a proposed rule change appropriately may be
filed as an immediately effective rule so long as it is based on and
similar to another SRO's rule and each policy issue raised by the
proposed rule (i) has been considered previously by the Commission when
the Commission approved another exchange's rule (that was subject to
notice and comment), and (ii) the rule change resolves such policy
issue in a manner consistent with such prior approval.''\11\ The
Exchange notes that the change is identical to a change by FINRA
approved by the Commission.
---------------------------------------------------------------------------
\9\ Securities Exchange Act Release No. 58092 (July 3, 2008), 73
FR 40144 (July 11, 2008).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ See supra note 9 at 40149.
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, 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-BX-2010-020 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-BX-2010-020. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions.
You should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-BX-2010-020
and should be submitted on or before April 21, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-7104 Filed 3-30-10; 8:45 am]
BILLING CODE 8011-01-P