Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Changes Deleting NYSE Rules 352(e)-(g) and Adopting New Rule 3240 To Correspond With Rule Changes Filed by the Financial Industry Regulatory Authority, Inc., 32978-32980 [2010-13931]

Download as PDF 32978 Federal Register / Vol. 75, No. 111 / Thursday, June 10, 2010 / Notices cprice-sewell on DSK8KYBLC1PROD with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 10 and Rule 19b–4(f)(6) 11 thereunder because the proposal does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) by its terms, become operative for 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, provided that the Exchange has given the Commission 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.12 A proposed rule change filed under Rule 19b–4(f)(6) normally may not become operative prior to 30 days after the date of filing. However, Rule 19b– 4(f)(6)(iii) 13 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay period. The Commission believes that waiver of the 30-day operative delay period is consistent with the protection of investors and the public interest. In particular, the Exchange would be permitted to list the restricted series solely for the purpose of closing transactions as long as the restricted series is listed and restricted to closing transactions on another national securities exchange. Further, the proposal would allow an exception for opening transactions by market makers to accommodate closing transactions of other market participants. The Commission notes that the proposed 10 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 12 The Exchange has satisfied the five-day prefiling notice requirement. 13 17 CFR 240.19b–4(f)(6)(iii). 11 17 VerDate Mar<15>2010 13:40 Jun 09, 2010 Jkt 220001 rule change is substantially similar to the rules of other options exchanges.14 The Commission therefore designates the proposal operative upon filing.15 At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such proposed 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.16 IV. Solicitation of Comments 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–ISE– 2010–51 and should be submitted on or before July 1, 2010. 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Florence E. Harmon, Deputy Secretary. Electronic Comments BILLING CODE 8010–01–P • 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–ISE–2010–51 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–ISE–2010–51. 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 14 See CBOE Rule 5.4.12; NOM Chapter IV, Section 4; and Phlx Rule 1010. 15 For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 16 15 U.S.C. 78s(b)(3)(C). PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 [FR Doc. 2010–13932 Filed 6–9–10; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62223; File No. SR–NYSE– 2010–40] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Changes Deleting NYSE Rules 352(e)–(g) and Adopting New Rule 3240 To Correspond With Rule Changes Filed by the Financial Industry Regulatory Authority, Inc. June 4, 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 17, 2010, New York Stock Exchange LLC (the ‘‘Exchange’’ or ‘‘NYSE’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule changes as described in Items I, II, and III below, which Items have been substantially prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule changes from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Changes The Exchange proposes to delete NYSE Rules 352(e)–(g) and adopt new Rule 3240 to correspond with rule changes filed by the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) 17 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 1 15 E:\FR\FM\10JNN1.SGM 10JNN1 Federal Register / Vol. 75, No. 111 / Thursday, June 10, 2010 / Notices and approved by the Commission.4 The text of the proposed rule changes 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 Changes In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for, the proposed rule changes and discussed any comments it received on the proposed rule changes. 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 Changes 1. Purpose The purpose of the proposed rule changes is to delete NYSE Rules 352(e)– (g) (Guarantees, Sharing in Accounts, and Loan Arrangements) and adopt new Rule 3240 (Borrowing From or Lending to Customers) to correspond with rule changes filed by FINRA and approved by the Commission. Background cprice-sewell on DSK8KYBLC1PROD with NOTICES 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. 61537 (February 18, 2010), 75 FR 8772. (February 25, 2010) (order approving SR–FINRA–2009–095). 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 VerDate Mar<15>2010 13:40 Jun 09, 2010 Jkt 220001 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 adopted NASD Rule 2370 (Borrowing From or Lending to Customers), which governs lending arrangements between registered persons and their customers, as consolidated FINRA Rule 3240, subject to certain modifications.7 Because they are substantially similar to consolidated FINRA Rule 3240, FINRA also deleted FINRA Incorporated NYSE Rules 352(e)–(g).8 To harmonize the NYSE Rules with the approved consolidated FINRA Rules, the Exchange correspondingly proposes to delete NYSE Rules 352(e)– (g) and replace them with proposed NYSE Rule 3240, which is substantially similar to the new FINRA Rule.9 As proposed, NYSE Rule 3240 adopts the same language as FINRA Rule 3240, except for substituting for or adding to, as needed, the term ‘‘member organization’’ for the term ‘‘member,’’ and making corresponding technical changes. In addition, in order to ensure that both proposed NYSE Rule 3240 and FINRA Rule 3240 are fully harmonized, the Exchange also proposes to add Supplementary Material .02 to NYSE Rule 3240 to provide that, for the purposes of the rule, the term ‘‘person associated with a member organization’’ shall have the same meaning as the terms ‘‘person associated with a member’’ or ‘‘associated person of a member’’ as defined in Article I (rr) of the FINRA By-Laws. 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. 61537 (February 18, 2010), 75 FR 8772 (February 25, 2010). 8 Id. 9 NYSE Amex has submitted a companion rule filing amending its rules in accordance with FINRA’s rule changes. See SR–NYSEAmex–2010– 47. PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 32979 2. Statutory Basis The Exchange believes that the proposed rule changes are consistent with Section 6(b) of the Act,10 in general, and further the objectives of Section 6(b)(5) of the Act,11 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 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 changes 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 Changes Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule changes. III. Date of Effectiveness of the Proposed Rule Changes and Timing for Commission Action The Exchange has filed the proposed rule changes pursuant to Section 19(b)(3)(A)(iii) of the Act 12 and Rule 19b–4(f)(6) thereunder.13 Because the proposed rule changes do 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 changes have become 10 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 12 15 U.S.C. 78s(b)(3)(A)(iii). 13 17 CFR 240.19b–4(f)(6). 11 15 E:\FR\FM\10JNN1.SGM 10JNN1 32980 Federal Register / Vol. 75, No. 111 / Thursday, June 10, 2010 / Notices 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) 14 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b–4(f)(6)(iii),15 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission notes that the proposed rule changes are substantially identical to rule changes proposed by FINRA and approved by the Commission after an opportunity for public comment, and do not raise any new substantive issues.16 For these reasons, the Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest because it will promote greater harmonization between NYSE Rules and FINRA Rules of similar purpose, resulting in less burdensome and more efficient regulatory compliance for joint members and greater harmonization between NYSE Rules and FINRA Rules. Therefore, the Commission designates the proposed rule change effective and operative upon filing.17 At any time within 60 days of the filing of the proposed rule changes, the Commission may summarily abrogate such rule changes 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 changes are consistent with the Act. Comments may be submitted by any of the following methods: cprice-sewell on DSK8KYBLC1PROD 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 CFR 240.19b–4(f)(6). 15 17 CFR 240.19b–4(f)(6)(iii). 16 See supra note 7. 17 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). Number SR–NYSE–2010–40 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. 13:40 Jun 09, 2010 Jkt 220001 [Public Notice: 7043] Culturally Significant Objects Imported for Exhibition Determinations: ‘‘Ringo Starr’s Snare Drum’’ SUMMARY: Notice is hereby given of the following determinations: Pursuant to the authority vested in me by the Act of October 19, 1965 (79 Stat. 985; 22 U.S.C. All submissions should refer to File 2459), Executive Order 12047 of March Number SR–NYSE–2010–40. This file 27, 1978, the Foreign Affairs Reform and number should be included on the subject line if e-mail is used. To help the Restructuring Act of 1998 (112 Stat. 2681, et seq.; 22 U.S.C. 6501 note, et Commission process and review your seq.), Delegation of Authority No. 234 of comments more efficiently, please use only one method. The Commission will October 1, 1999, Delegation of Authority post all comments on the Commission’s No. 236 of October 19, 1999, as amended, and Delegation of Authority Internet Web site (https://www.sec.gov/ No. 257 of April 15, 2003 [68 FR 19875], rules/sro.shtml). Copies of the I hereby determine that the object to be submission, all subsequent included in the exhibit ‘‘Ringo Starr’s amendments, all written statements Snare Drum,’’ imported from abroad for with respect to the proposed rule temporary exhibition within the United changes that are filed with the States, is of cultural significance. The Commission, and all written object is imported pursuant to a loan communications relating to the agreement with the foreign owner or proposed rule changes between the custodian. I also determine that the Commission and any person, other than exhibition or display of the exhibit those that may be withheld from the object at the Metropolitan Museum of public in accordance with the Art, New York, NY, from on or about provisions of 5 U.S.C. 552, will be July 1, 2010, until on or about December available for Web site viewing and 31, 2010, and at possible additional printing in the Commission’s Public exhibitions or venues yet to be determined, is in the national interest. Reference Room, 100 F Street, NE., Washington, DC 20549–1090 on official Public Notice of these Determinations is ordered to be published in the Federal business days between the hours of 10 a.m. and 3 p.m. Copies of the filing will Register. also be available for inspection and FOR FURTHER INFORMATION CONTACT: For further information, including a copying at the NYSE’s principal office description of the exhibit object, contact and on its Internet Web site at https:// Carol B. Epstein, Attorney-Adviser, www.nyse.com. All comments received Office of the Legal Adviser, U.S. will be posted without change; the Department of State (telephone: 202/ Commission does not edit personal 632–6473). The address is U.S. identifying information from Department of State, SA–5, L/PD, Fifth submissions. You should submit only Floor, Washington, DC 20522–0505. information that you wish to make Dated: June 2, 2010. available publicly. All submissions should refer to File Number SR–NYSE– Maura M. Pally, 2010–40 and should be submitted on or Deputy Assistant Secretary for Professional and Cultural Exchanges, Bureau of before July 1, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Florence E. Harmon, Deputy Secretary. Educational and Cultural Affairs, Department of State. [FR Doc. 2010–13965 Filed 6–9–10; 8:45 am] BILLING CODE 4710–05–P [FR Doc. 2010–13931 Filed 6–9–10; 8:45 am] DEPARTMENT OF STATE BILLING CODE 8010–01–P [Public Notice: 7042] Culturally Significant Objects Imported for Exhibition Determinations: ‘‘Olmec: Masterworks of Ancient Mexico’’ 14 17 VerDate Mar<15>2010 DEPARTMENT OF STATE 18 17 PO 00000 CFR 200.30–3(a)(12). Frm 00081 Fmt 4703 Sfmt 4703 SUMMARY: Notice is hereby given of the following determinations: Pursuant to the authority vested in me by the Act of October 19, 1965 (79 Stat. 985; 22 U.S.C. E:\FR\FM\10JNN1.SGM 10JNN1

Agencies

[Federal Register Volume 75, Number 111 (Thursday, June 10, 2010)]
[Notices]
[Pages 32978-32980]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-13931]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62223; File No. SR-NYSE-2010-40]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Changes 
Deleting NYSE Rules 352(e)-(g) and Adopting New Rule 3240 To Correspond 
With Rule Changes Filed by the Financial Industry Regulatory Authority, 
Inc.

June 4, 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 17, 2010, New York Stock Exchange LLC (the 
``Exchange'' or ``NYSE'') filed with the Securities and Exchange 
Commission (the ``Commission'') the proposed rule changes as described 
in Items I, II, and III below, which Items have been substantially 
prepared by the Exchange. The Commission is publishing this notice to 
solicit comments on the proposed rule changes 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 Changes

    The Exchange proposes to delete NYSE Rules 352(e)-(g) and adopt new 
Rule 3240 to correspond with rule changes filed by the Financial 
Industry Regulatory Authority, Inc. (``FINRA'')

[[Page 32979]]

and approved by the Commission.\4\ The text of the proposed rule 
changes is available at the Exchange, the Commission's Public Reference 
Room, and https://www.nyse.com.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 61537 (February 18, 
2010), 75 FR 8772. (February 25, 2010) (order approving SR-FINRA-
2009-095).
---------------------------------------------------------------------------

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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of, and basis for, the proposed rule changes and 
discussed any comments it received on the proposed rule changes. 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 Changes

1. Purpose
    The purpose of the proposed rule changes is to delete NYSE Rules 
352(e)-(g) (Guarantees, Sharing in Accounts, and Loan Arrangements) and 
adopt new Rule 3240 (Borrowing From or Lending to Customers) 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 adopted NASD Rule 2370 (Borrowing From or Lending to 
Customers), which governs lending arrangements between registered 
persons and their customers, as consolidated FINRA Rule 3240, subject 
to certain modifications.\7\ Because they are substantially similar to 
consolidated FINRA Rule 3240, FINRA also deleted FINRA Incorporated 
NYSE Rules 352(e)-(g).\8\
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 61537 (February 18, 
2010), 75 FR 8772 (February 25, 2010).
    \8\ Id.
---------------------------------------------------------------------------

    To harmonize the NYSE Rules with the approved consolidated FINRA 
Rules, the Exchange correspondingly proposes to delete NYSE Rules 
352(e)-(g) and replace them with proposed NYSE Rule 3240, which is 
substantially similar to the new FINRA Rule.\9\ As proposed, NYSE Rule 
3240 adopts the same language as FINRA Rule 3240, except for 
substituting for or adding to, as needed, the term ``member 
organization'' for the term ``member,'' and making corresponding 
technical changes. In addition, in order to ensure that both proposed 
NYSE Rule 3240 and FINRA Rule 3240 are fully harmonized, the Exchange 
also proposes to add Supplementary Material .02 to NYSE Rule 3240 to 
provide that, for the purposes of the rule, the term ``person 
associated with a member organization'' shall have the same meaning as 
the terms ``person associated with a member'' or ``associated person of 
a member'' as defined in Article I (rr) of the FINRA By-Laws.
---------------------------------------------------------------------------

    \9\ NYSE Amex has submitted a companion rule filing amending its 
rules in accordance with FINRA's rule changes. See SR-NYSEAmex-2010-
47.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent 
with Section 6(b) of the Act,\10\ in general, and further the 
objectives of Section 6(b)(5) of the Act,\11\ 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    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 changes 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 Changes Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule changes.

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

    The Exchange has filed the proposed rule changes pursuant to 
Section 19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-4(f)(6) 
thereunder.\13\ Because the proposed rule changes do 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 changes have become

[[Page 32980]]

effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \13\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Commission notes that 
the proposed rule changes are substantially identical to rule changes 
proposed by FINRA and approved by the Commission after an opportunity 
for public comment, and do not raise any new substantive issues.\16\ 
For these reasons, the Commission believes that waiver of the 30-day 
operative delay is consistent with the protection of investors and the 
public interest because it will promote greater harmonization between 
NYSE Rules and FINRA Rules of similar purpose, resulting in less 
burdensome and more efficient regulatory compliance for joint members 
and greater harmonization between NYSE Rules and FINRA Rules. 
Therefore, the Commission designates the proposed rule change effective 
and operative upon filing.\17\
---------------------------------------------------------------------------

    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
    \16\ See supra note 7.
    \17\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
changes, the Commission may summarily abrogate such rule changes 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 
changes are 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-2010-40 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-2010-40. 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 changes that are 
filed with the Commission, and all written communications relating to 
the proposed rule changes 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 20549-1090 on official business days between the hours 
of 10 a.m. and 3 p.m. Copies of the filing will also be available for 
inspection and copying at the NYSE's principal office and on its 
Internet Web site at https://www.nyse.com. 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-NYSE-2010-40 and should be submitted on 
or before July 1, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-13931 Filed 6-9-10; 8:45 am]
BILLING CODE 8010-01-P
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