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
<![CDATA[
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
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13:40 Jun 09, 2010
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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).
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[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
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13:40 Jun 09, 2010
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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
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Fmt 4703
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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]
-----------------------------------------------------------------------
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.
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\10\ 15 U.S.C. 78f(b).
\11\ 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 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.
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
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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\
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\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).
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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
