Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Deleting NYSE Rule 413 To Correspond With Rule Changes Filed by the Financial Industry Regulatory Authority, Inc., 29795-29797 [2010-12745]
Download as PDF
Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Notices
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
FINRA. All comments received will be
posted without change; the Commission
does not edit personal identifying
information from submissions. You
should submit only information that
you wish to make publicly available. All
submissions should refer to File
Number SR–FINRA–2010–023 and
should be submitted on or before June
17, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–12747 Filed 5–26–10; 8:45 am]
BILLING CODE 8010–01–P
[Release No. 34–62142; File No. SR–NYSE–
2010–38]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Deleting NYSE
Rule 413 To Correspond With Rule
Changes Filed by the Financial
Industry Regulatory Authority, Inc.
wwoods2 on DSK1DXX6B1PROD with NOTICES
May 20, 2010.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on May 12,
2010, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
CFR 200.30–3(a)(12).
1 15 U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
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15:26 May 26, 2010
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to delete
NYSE Rule 413 to correspond with rule
changes filed by the Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
and approved by the Commission.4 The
text of the proposed rule change is
available at the Exchange, the
Commission’s Public Reference Room,
and https://www.nyse.com.
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
self-regulatory organization 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.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
16 17
comments on the proposed rule change
from interested persons.
The purpose of the proposed rule
changes is to delete NYSE Rule 413
(Uniform Forms) to correspond with
rule changes filed by FINRA and
approved by the Commission.
Background:
On July 30, 2007, FINRA’s
predecessor, the National Association of
Securities Dealers, Inc. (‘‘NASD’’), and
NYSE Regulation, Inc. (‘‘NYSER’’)
consolidated their member firm
regulation operations into a combined
organization, FINRA. Pursuant to Rule
17d–2 under the Act, NYSE, NYSER and
FINRA entered into an agreement (the
‘‘Agreement’’) to reduce regulatory
duplication for their members by
allocating to FINRA certain regulatory
responsibilities for certain NYSE rules
and rule interpretations (‘‘FINRA
Incorporated NYSE Rules’’). NYSE
Amex LLC (‘‘NYSE Amex’’) became a
party to the Agreement effective
December 15, 2008.5
4 See Securities Exchange Act Release No. 61542
(February 18, 2010), 75 FR 8768 (February 25, 2010)
(order approving SR–FINRA–2009–093).
5 See Securities Exchange Act Release Nos. 56148
(July 26, 2007), 72 FR 42146 (August 1, 2007) (order
approving the Agreement); 56147 (July 26, 2007), 72
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
29795
As part of its effort to reduce
regulatory duplication and relieve firms
that are members of FINRA, NYSE and
NYSE Amex of conflicting or
unnecessary regulatory burdens, FINRA
is now engaged in the process of
reviewing and amending the NASD and
FINRA Incorporated NYSE Rules in
order to create a consolidated FINRA
rulebook.6
Proposed Conforming Amendments to
NYSE Rules:
FINRA recently deleted FINRA
Incorporated NYSE Rule 413 (Uniform
Forms), which required that each
member had to adopt such uniform
forms as may be prescribed by the
Exchange to facilitate the orderly flow of
transactions within the financial
community.7
In deleting FINRA Incorporated NYSE
Rule 413, FINRA noted that several
provisions in its By-Laws required its
members to provide certain information
in the manner and form prescribed by
FINRA, including membership
applications, registration of branch
offices, registration of registered
representatives and associated persons,
and termination of registered
employees. FINRA also noted its
proposal to adopt a new Rule 4540
governing information and data
reporting and filing requirements.8
In order to harmonize the NYSE Rules
with the approved consolidated FINRA
Rules, the Exchange correspondingly
proposes to delete NYSE Rule 413.9 As
with FINRA, the Exchange has a number
of rules that require members and
member organizations to provide certain
information in the manner and form
prescribed by the Exchange: for
example, NYSE Rules 301(b) and 311–
FR 42166 (August 1, 2007) (SR–NASD–2007–054)
(order approving the incorporation of certain NYSE
Rules as ‘‘Common Rules’’); and 60409 (July 30,
2009), 74 FR 39353 (August 6, 2009) (order
approving the amended and restated Agreement,
adding NYSE Amex LLC as a party). Paragraph 2(b)
of the Agreement sets forth procedures regarding
proposed changes by FINRA, NYSE or NYSE Amex
to the substance of any of the Common Rules.
6 FINRA’s rulebook currently has three sets of
rules: (1) NASD Rules, (2) FINRA Incorporated
NYSE Rules, and (3) consolidated FINRA Rules.
The FINRA Incorporated NYSE Rules apply only to
those members of FINRA that are also members of
the NYSE (‘‘Dual Members’’), while the consolidated
FINRA Rules apply to all FINRA members. For
more information about the FINRA rulebook
consolidation process, see FINRA Information
Notice, March 12, 2008.
7 See Securities Exchange Act Release No. 61542
(February 18, 2010), 75 FR 8768 (February 25,
2010).
8 See Securities Exchange Act Release No. 61542
(February 18, 2010), 75 FR 8768 (February 25,
2010).
9 NYSE Amex has submitted a companion rule
filing amending its rules in accordance with
FINRA’s rule changes. See SR–NYSEAmex–2010–
45.
E:\FR\FM\27MYN1.SGM
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Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Notices
313 deal with membership applications;
Rule 342(c) requires filing for branch
offices (Form BR); Rule 345, particularly
345.12, covers applications for
registered representatives (Form U–4);
and Rules 312(a) and 345 require
reporting termination of registered
persons (Form U–5). In addition, similar
to proposed consolidated FINRA Rules
4530 and 4540, NYSE Rule 351 (see
351.10) requires members and member
organizations to provide the Exchange
with certain regulatory and disciplinary
information, and Rules 341 and 416A
require members and member
organizations to maintain current
contact information with the
Exchange.10
Notwithstanding these other rules,
NYSE Rule 416(a) broadly provides that
members and member organizations
must ‘‘submit to the Exchange at such
times as may be designated in such form
and within such time period as may be
prescribed such information as the
Exchange deems essential for the
protection of investors and the public
interest.’’ 11 Thus, deletion of NYSE Rule
413 will not limit the Exchange’s
authority to require its members and
member organizations to provide
information in a prescribed manner as
needed.
wwoods2 on DSK1DXX6B1PROD with NOTICES
2. Statutory Basis
The Exchange believes that the
proposed rule changes are consistent
with Section 6(b) of the Act,12 in
general, and further the objectives of
Section 6(b)(5) of the Act,13 in
particular, in that they are designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, 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 Exchange believes that the
proposed rule changes support the
objectives of the Act by providing
greater harmonization between NYSE
Rules and FINRA Rules (including
10 See FINRA Regulatory Notices 08–71
(November 28, 2008) (discussing proposed FINRA
Rule 4530) and 09–02 (January 6, 2009) (discussing
proposed FINRA Rule 4540). Per the rule
harmonization process, the Exchange will likely
adopt versions of these rules once they are filed
with and approved by the Commission.
11 FINRA has proposed to delete portions of
NYSE Rule 416 as part of its broader proposal to
adopt new membership rules. See FINRA
Regulatory Notice 10–01 (January 4, 2010)
(discussing proposed FINRA Rules 1111–1190). Per
the rule harmonization process, the Exchange will
likely adopt versions of these rules once they are
filed with and approved by the Commission.
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
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15:26 May 26, 2010
Jkt 220001
Common Rules) of similar purpose,
resulting in less burdensome and more
efficient regulatory compliance for Dual
Members. To the extent the Exchange
has proposed changes that differ from
the FINRA version of the Rules, such
changes are technical in nature and do
not change the substance of the
proposed NYSE Rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
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
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 14 and Rule
19b–4(f)(6) thereunder.15 Because the
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
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 16 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),17 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest.18 The Commission believes
that waiver of the operative delay is
14 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6)(iii).
18 See id. Pursuant to Rule 19b–4(f)(6)(iii) under
the Exchange Act, the Exchange is required to give
the Commission written notice of its intent to file
a 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 Exchange
has satisfied this requirement.
15 17
PO 00000
Frm 00091
Fmt 4703
Sfmt 4703
consistent with the protection of
investors and the public interest
because the proposed rule change is
merely deleting a rule that is duplicative
of other rules in its rulebook.19 The
Exchange has represented that the
deletion of the rule will not limit the
Exchange’s authority to require its
members and member organizations to
provide needed information.
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–NYSE–2010–38 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–NYSE–2010–38. 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
19 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).
E:\FR\FM\27MYN1.SGM
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Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Notices
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
publicly available. All submissions
should refer to File Number SR–NYSE–
2010–38 and should be submitted on or
before June 17, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–12745 Filed 5–26–10; 8:45 am]
BILLING CODE 8010–01–P
SOCIAL SECURITY ADMINISTRATION
Agency Information Collection
Activities: Comment Request
The Social Security Administration
(SSA) publishes a list of information
collection packages requiring clearance
by the Office of Management and
Budget (OMB) in compliance with
Public Law (Pub. L.) 104–13, the
Paperwork Reduction Act of 1995,
effective October 1, 1995. This notice
includes revisions and extensions of
OMB-approved information collections
and a collection in use without an OMB
number.
SSA is soliciting comments on the
accuracy of the agency’s burden
estimate; the need for the information;
its practical utility; ways to enhance its
quality, utility, and clarity; and ways to
minimize burden on respondents,
including the use of automated
collection techniques or other forms of
information technology. Mail, e-mail, or
fax your comments and
recommendations on the information
collection(s) to the OMB Desk Officer
and SSA Reports Clearance Director to
the following addresses or fax numbers.
(OMB) Office of Management and
Budget, Attn: Desk Officer for SSA, Fax:
202–395–6974, E-mail address:
OIRA_Submission@omb.eop.gov.
Number of
respondents
Collection method
(SSA) Social Security Administration,
DCBFM, Attn: Director, Center for
Reports Clearance, 1333 Annex
Building, 6401 Security Blvd.,
Baltimore, MD 21235, Fax: 410–965–
0454, E-mail address:
OPLM.RCO@ssa.gov.
SSA submitted the information
collections listed below to OMB for
clearance. Your comments on the
information collections would be most
useful if OMB and SSA receive them
within 30 days from the date of this
publication. To be sure we consider
your comments, we must receive them
no later than June 28, 2010. You can
obtain a copy of the OMB clearance
packages by calling the SSA Director for
Reports Clearance at 410–965–0454 or
by writing to the above e-mail address.
1. Application for Lump Sum Death
Payment—20 CFR 404.390–404.392—
0960–0013. SSA uses Form SSA–8–F4
to collect information needed to
authorize payment of the lump sum
death payment (LSDP) to a widow,
widower, or children as defined in
Section 202(i) of the Social Security Act.
Respondents complete the application
for this one-time payment via paper
form, telephone, or an in-person
interview with SSA employees.
Respondents are applicants for the
LSDP.
Estimated completion time
Burden hours
MCS ..............................................................................
MCS/Signature Proxy ...................................................
Paper .............................................................................
278,825
278,825
29,350
10 minutes ....................................................................
9 minutes ......................................................................
10 minutes ....................................................................
46,471
41,824
4,892
Totals .....................................................................
587,000
.......................................................................................
93,187
2. Supplemental Statement Regarding
Farming Activities of Person Living
Outside the U.S.A.—0960–0103. SSA
uses Form SSA–7163A to document
beneficiary or claimant reports of
working on a farm outside the United
States. Specifically, the information
helps us to determine if we should
apply foreign work deductions to the
recipient’s Title II benefits. We collect
the information either annually or every
other year, depending on the
respondent’s country of residence.
Respondents are Social Security
recipients engaged in farming activities
outside the United States.
Type of Request: Revision of an OMBapproved information collection.
Number of Respondents: 1,000.
Frequency of Response: 1.
Average Burden per Response: 1 hour.
Estimated Annual Burden: 1,000
hours.
3. Request for Earnings and Benefit
Estimate Statement—20 CFR 404.810—
0960–0466. SSA uses the information
Number of
respondents
wwoods2 on DSK1DXX6B1PROD with NOTICES
Collection instrument
Paper Version ..................................................................................................
Internet Version ...............................................................................................
20 17
respondents provide on Form SSA–7004
to identify respondents’ Social Security
earnings records, extract posted
earnings information, calculate potential
benefit estimates, produce the resulting
Social Security statements, and mail
them to the requesters. The respondents
are Social Security number holders
requesting information about their
Social Security earnings records and
estimates of their potential benefits.
Type of Request: Revision of an OMBapproved information collection.
Frequency of
response
127,000
426,000
1
1
CFR 200.30–3(a)(12).
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15:26 May 26, 2010
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E:\FR\FM\27MYN1.SGM
27MYN1
Average
burden per
response
(minutes)
Total annual
burden
(hours)
5
5
10,583
35,500
Agencies
[Federal Register Volume 75, Number 102 (Thursday, May 27, 2010)]
[Notices]
[Pages 29795-29797]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-12745]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62142; File No. SR-NYSE-2010-38]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Deleting NYSE Rule 413 To Correspond With Rule Changes Filed by the
Financial Industry Regulatory Authority, Inc.
May 20, 2010.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on May 12, 2010, New York Stock Exchange LLC (``NYSE'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to delete NYSE Rule 413 to correspond with
rule changes filed by the Financial Industry Regulatory Authority, Inc.
(``FINRA'') and approved by the Commission.\4\ The text of the proposed
rule change is available at the Exchange, the Commission's Public
Reference Room, and https://www.nyse.com.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 61542 (February 18,
2010), 75 FR 8768 (February 25, 2010) (order approving SR-FINRA-
2009-093).
---------------------------------------------------------------------------
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 self-regulatory organization
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. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts 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 proposed rule changes is to delete NYSE Rule 413
(Uniform Forms) to correspond with rule changes filed by FINRA and
approved by the Commission.
Background:
On July 30, 2007, FINRA's predecessor, the National Association of
Securities Dealers, Inc. (``NASD''), and NYSE Regulation, Inc.
(``NYSER'') consolidated their member firm regulation operations into a
combined organization, FINRA. Pursuant to Rule 17d-2 under the Act,
NYSE, NYSER and FINRA entered into an agreement (the ``Agreement'') to
reduce regulatory duplication for their members by allocating to FINRA
certain regulatory responsibilities for certain NYSE rules and rule
interpretations (``FINRA Incorporated NYSE Rules''). NYSE Amex LLC
(``NYSE Amex'') became a party to the Agreement effective December 15,
2008.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release Nos. 56148 (July 26,
2007), 72 FR 42146 (August 1, 2007) (order approving the Agreement);
56147 (July 26, 2007), 72 FR 42166 (August 1, 2007) (SR-NASD-2007-
054) (order approving the incorporation of certain NYSE Rules as
``Common Rules''); and 60409 (July 30, 2009), 74 FR 39353 (August 6,
2009) (order approving the amended and restated Agreement, adding
NYSE Amex LLC as a party). Paragraph 2(b) of the Agreement sets
forth procedures regarding proposed changes by FINRA, NYSE or NYSE
Amex to the substance of any of the Common Rules.
---------------------------------------------------------------------------
As part of its effort to reduce regulatory duplication and relieve
firms that are members of FINRA, NYSE and NYSE Amex of conflicting or
unnecessary regulatory burdens, FINRA is now engaged in the process of
reviewing and amending the NASD and FINRA Incorporated NYSE Rules in
order to create a consolidated FINRA rulebook.\6\
---------------------------------------------------------------------------
\6\ FINRA's rulebook currently has three sets of rules: (1) NASD
Rules, (2) FINRA Incorporated NYSE Rules, and (3) consolidated FINRA
Rules. The FINRA Incorporated NYSE Rules apply only to those members
of FINRA that are also members of the NYSE (``Dual Members''), while
the consolidated FINRA Rules apply to all FINRA members. For more
information about the FINRA rulebook consolidation process, see
FINRA Information Notice, March 12, 2008.
---------------------------------------------------------------------------
Proposed Conforming Amendments to NYSE Rules:
FINRA recently deleted FINRA Incorporated NYSE Rule 413 (Uniform
Forms), which required that each member had to adopt such uniform forms
as may be prescribed by the Exchange to facilitate the orderly flow of
transactions within the financial community.\7\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 61542 (February 18,
2010), 75 FR 8768 (February 25, 2010).
---------------------------------------------------------------------------
In deleting FINRA Incorporated NYSE Rule 413, FINRA noted that
several provisions in its By-Laws required its members to provide
certain information in the manner and form prescribed by FINRA,
including membership applications, registration of branch offices,
registration of registered representatives and associated persons, and
termination of registered employees. FINRA also noted its proposal to
adopt a new Rule 4540 governing information and data reporting and
filing requirements.\8\
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 61542 (February 18,
2010), 75 FR 8768 (February 25, 2010).
---------------------------------------------------------------------------
In order to harmonize the NYSE Rules with the approved consolidated
FINRA Rules, the Exchange correspondingly proposes to delete NYSE Rule
413.\9\ As with FINRA, the Exchange has a number of rules that require
members and member organizations to provide certain information in the
manner and form prescribed by the Exchange: for example, NYSE Rules
301(b) and 311-
[[Page 29796]]
313 deal with membership applications; Rule 342(c) requires filing for
branch offices (Form BR); Rule 345, particularly 345.12, covers
applications for registered representatives (Form U-4); and Rules
312(a) and 345 require reporting termination of registered persons
(Form U-5). In addition, similar to proposed consolidated FINRA Rules
4530 and 4540, NYSE Rule 351 (see 351.10) requires members and member
organizations to provide the Exchange with certain regulatory and
disciplinary information, and Rules 341 and 416A require members and
member organizations to maintain current contact information with the
Exchange.\10\
---------------------------------------------------------------------------
\9\ NYSE Amex has submitted a companion rule filing amending its
rules in accordance with FINRA's rule changes. See SR-NYSEAmex-2010-
45.
\10\ See FINRA Regulatory Notices 08-71 (November 28, 2008)
(discussing proposed FINRA Rule 4530) and 09-02 (January 6, 2009)
(discussing proposed FINRA Rule 4540). Per the rule harmonization
process, the Exchange will likely adopt versions of these rules once
they are filed with and approved by the Commission.
---------------------------------------------------------------------------
Notwithstanding these other rules, NYSE Rule 416(a) broadly
provides that members and member organizations must ``submit to the
Exchange at such times as may be designated in such form and within
such time period as may be prescribed such information as the Exchange
deems essential for the protection of investors and the public
interest.'' \11\ Thus, deletion of NYSE Rule 413 will not limit the
Exchange's authority to require its members and member organizations to
provide information in a prescribed manner as needed.
---------------------------------------------------------------------------
\11\ FINRA has proposed to delete portions of NYSE Rule 416 as
part of its broader proposal to adopt new membership rules. See
FINRA Regulatory Notice 10-01 (January 4, 2010) (discussing proposed
FINRA Rules 1111-1190). Per the rule harmonization process, the
Exchange will likely adopt versions of these rules once they are
filed with and approved by the Commission.
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2. Statutory Basis
The Exchange believes that the proposed rule changes are consistent
with Section 6(b) of the Act,\12\ in general, and further the
objectives of Section 6(b)(5) of the Act,\13\ in particular, in that
they are designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, 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.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule changes support the
objectives of the Act by providing greater harmonization between NYSE
Rules and FINRA Rules (including Common Rules) of similar purpose,
resulting in less burdensome and more efficient regulatory compliance
for Dual Members. To the extent the Exchange has proposed changes that
differ from the FINRA version of the Rules, such changes are technical
in nature and do not change the substance of the proposed NYSE Rules.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose 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
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
Because the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\17\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.\18\ The Commission
believes that waiver of the operative delay is consistent with the
protection of investors and the public interest because the proposed
rule change is merely deleting a rule that is duplicative of other
rules in its rulebook.\19\ The Exchange has represented that the
deletion of the rule will not limit the Exchange's authority to require
its members and member organizations to provide needed information.
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\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6)(iii).
\18\ See id. Pursuant to Rule 19b-4(f)(6)(iii) under the
Exchange Act, the Exchange is required to give the Commission
written notice of its intent to file a 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 Exchange has satisfied this requirement.
\19\ 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).
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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 Number SR-NYSE-2010-38 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-NYSE-2010-38. 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
[[Page 29797]]
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 publicly available. All
submissions should refer to File Number SR-NYSE-2010-38 and should be
submitted on or before June 17, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-12745 Filed 5-26-10; 8:45 am]
BILLING CODE 8010-01-P