Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to a Stated Interpretation of the Meaning, Administration, and Enforcement of FINRA Rule 11892 and Supplementary Material .01, 47661-47662 [2010-19331]
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Federal Register / Vol. 75, No. 151 / Friday, August 6, 2010 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–19373 Filed 8–5–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62608; File No. SR–FINRA–
2010–038]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to a Stated
Interpretation of the Meaning,
Administration, and Enforcement of
FINRA Rule 11892 and Supplementary
Material .01
July 30, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 29,
2010, the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) 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 FINRA. FINRA has designated the
proposed rule change as ‘‘constituting a
stated policy, practice, or interpretation
with respect to the meaning,
administration, or enforcement of an
existing rule’’ under Section
19(b)(3)(A)(i) of the Act 3 and Rule 19b–
4(f)(1) thereunder,4 which renders the
proposal effective upon receipt of this
filing by the Commission The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
sroberts on DSKD5P82C1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing a stated
interpretation of the meaning,
administration, and enforcement of
FINRA Rule 11892 and Supplementary
Material .01.
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
16:35 Aug 05, 2010
In its filing with the Commission,
FINRA included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. FINRA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In light of recent market events, some
exchanges have adopted interpretations
to their clearly erroneous rules
regarding (1) the range of transactions
subject to review and potential
nullification and (2) the date by which
clearly erroneous determinations must
be made.5 FINRA is filing the proposed
rule change to make clear that it will
defer to an exchange’s interpretation of
its clearly erroneous authority in
deciding which over-the-counter trades
in exchange-listed securities are subject
to nullification under FINRA Rule
11892.
FINRA Rule 11892(a)(1) provides that,
in the event of a determination by a
national securities exchange to nullify
one or more transactions in a security
traded on such national securities
exchange, certain FINRA staff may
review any similarly situated
transaction(s) reported through a FINRA
system in such security and declare the
transaction(s) null and void.
Supplementary Material .01 to FINRA
Rule 11892 states that ‘‘FINRA will
generally follow the determination of a
national securities exchange to break a
trade(s) when [the] national securities
exchange has broken a trade(s) at or near
the price range in question at or near the
time in question * * * such that FINRA
breaking such trade(s) would be
consistent with market integrity and
investor protection.’’ These provisions
were adopted to ensure consistent and
transparent determinations of clearly
erroneous transactions.6 To promote
consistency among self-regulatory
organizations, FINRA believes it is
necessary to defer to exchanges’
SR–NYSE–2010–55.
Securities Exchange Act Release No. 61080
(December 1, 2009), 74 FR 64117 (December 7,
2009) (order approving SR–FINRA–2009–068).
interpretations of their clearly erroneous
rules when FINRA makes
determinations of whether to cancel
similarly situated over-the-counter
transactions in exchange-listed
securities under FINRA Rule
11892(a)(1). Consequently, when
making clearly erroneous
determinations under FINRA Rule
11892(a)(1) and Supplementary Material
.01, FINRA will follow the
interpretations of exchanges regarding
the range of transactions subject to
review, and potential nullification, as
clearly erroneous and the date by which
determinations must be made.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,7 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. FINRA believes that the
proposed stated interpretation clarifies
that FINRA will exercise its authority to
declare over-the-counter transactions in
exchange-listed securities null and void
under FINRA Rule 11892 and
Supplementary Material .01 consistent
with decisions made by the exchange(s)
trading such securities. FINRA believes
that such an interpretation promotes
just and equitable principles of trade
because it ensures consistent
application of clearly erroneous
determinations across markets.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A) 8 of the Act and Rule 19b–
4(f)(1) 9 thereunder. At any time within
the 60-day period beginning on the date
5 See
2 17
VerDate Mar<15>2010
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
6 See
Jkt 220001
PO 00000
Frm 00139
Fmt 4703
Sfmt 4703
47661
7 15
U.S.C. 78o–3(b)(6).
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6).
8 15
E:\FR\FM\06AUN1.SGM
06AUN1
47662
Federal Register / Vol. 75, No. 151 / Friday, August 6, 2010 / Notices
of the filing of the proposed rule change,
the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–FINRA–2010–038 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–FINRA–2010–038. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, on official business
days between the hours of 10 a.m. and
3 p.m. Copies of the filing also will be
available for inspection and copying at
FINRA’s principal office. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–FINRA–
2010–038 and should be submitted on
or before August 27, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary
[FR Doc. 2010–19331 Filed 8–5–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62618; File No. SR–
NASDAQ–2010–088]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Fees for Routing to Away Markets
July 30, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 22,
2010, The NASDAQ Stock Market LLC
(‘‘NASDAQ’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify
Rule 7050 governing pricing for
NASDAQ members using the NASDAQ
Options Market (‘‘NOM’’), NASDAQ’s
facility for executing and routing
standardized equity and index options.
While changes to the Fee Schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated these changes to be operative
on August 2, 2010.
The text of the proposed rule change
is set forth below. Proposed new text is
in italics and deleted text is in brackets.3
*
*
*
*
*
7050. NASDAQ Options Market
The following charges shall apply to
the use of the order execution and
routing services of the NASDAQ
Options Market for all securities.
(1)–(3) No Change.
(4) Fees for routing contracts to
markets other than the NASDAQ
Options Market shall be assessed as
provided below. The current fees and a
historical record of applicable fees shall
be posted on the NasdaqTrader.com
website.
Exchange
Customer Firm MM
sroberts on DSKD5P82C1PROD with NOTICES
BATS ............................................................................................................................................................................
BOX .............................................................................................................................................................................
CBOE ...........................................................................................................................................................................
ISE ...............................................................................................................................................................................
ISE Select Symbols* of 100 or more contracts ...........................................................................................................
NYSE Arca Penny Pilot ...............................................................................................................................................
NYSE Arca Non Penny Pilot .......................................................................................................................................
NYSE AMEX ................................................................................................................................................................
PHLX (for all options other than PHLX Select Symbols [the below listed options]) ...................................................
10 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
VerDate Mar<15>2010
16:35 Aug 05, 2010
2 17
Jkt 220001
PO 00000
CFR 240.19b–4.
Frm 00140
Fmt 4703
$0.36
$0.06
$0.06
$0.06
$0.26
$0.50
$0.06
$0.06
$0.06
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
$0.55
3 The proposed text reflects recent amendments to
Rule 7050, specifically proposed rule change SR–
NASDAQ–2010–090.
Sfmt 4703
E:\FR\FM\06AUN1.SGM
06AUN1
]]>Agencies
[Federal Register Volume 75, Number 151 (Friday, August 6, 2010)]
[Notices]
[Pages 47661-47662]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-19331]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62608; File No. SR-FINRA-2010-038]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change Relating to a Stated Interpretation of the
Meaning, Administration, and Enforcement of FINRA Rule 11892 and
Supplementary Material .01
July 30, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on July 29, 2010, the Financial Industry Regulatory Authority,
Inc. (``FINRA'') 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 FINRA. FINRA has designated
the proposed rule change as ``constituting a stated policy, practice,
or interpretation with respect to the meaning, administration, or
enforcement of an existing rule'' under Section 19(b)(3)(A)(i) of the
Act \3\ and Rule 19b-4(f)(1) thereunder,\4\ which renders the proposal
effective upon receipt of this filing by the Commission The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing a stated interpretation of the meaning,
administration, and enforcement of FINRA Rule 11892 and Supplementary
Material .01.
The text of the proposed rule change is available on FINRA's Web
site at https://www.finra.org, at the principal office of FINRA and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
In light of recent market events, some exchanges have adopted
interpretations to their clearly erroneous rules regarding (1) the
range of transactions subject to review and potential nullification and
(2) the date by which clearly erroneous determinations must be made.\5\
FINRA is filing the proposed rule change to make clear that it will
defer to an exchange's interpretation of its clearly erroneous
authority in deciding which over-the-counter trades in exchange-listed
securities are subject to nullification under FINRA Rule 11892.
---------------------------------------------------------------------------
\5\ See SR-NYSE-2010-55.
---------------------------------------------------------------------------
FINRA Rule 11892(a)(1) provides that, in the event of a
determination by a national securities exchange to nullify one or more
transactions in a security traded on such national securities exchange,
certain FINRA staff may review any similarly situated transaction(s)
reported through a FINRA system in such security and declare the
transaction(s) null and void. Supplementary Material .01 to FINRA Rule
11892 states that ``FINRA will generally follow the determination of a
national securities exchange to break a trade(s) when [the] national
securities exchange has broken a trade(s) at or near the price range in
question at or near the time in question * * * such that FINRA breaking
such trade(s) would be consistent with market integrity and investor
protection.'' These provisions were adopted to ensure consistent and
transparent determinations of clearly erroneous transactions.\6\ To
promote consistency among self-regulatory organizations, FINRA believes
it is necessary to defer to exchanges' interpretations of their clearly
erroneous rules when FINRA makes determinations of whether to cancel
similarly situated over-the-counter transactions in exchange-listed
securities under FINRA Rule 11892(a)(1). Consequently, when making
clearly erroneous determinations under FINRA Rule 11892(a)(1) and
Supplementary Material .01, FINRA will follow the interpretations of
exchanges regarding the range of transactions subject to review, and
potential nullification, as clearly erroneous and the date by which
determinations must be made.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 61080 (December 1,
2009), 74 FR 64117 (December 7, 2009) (order approving SR-FINRA-
2009-068).
---------------------------------------------------------------------------
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\7\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes that the proposed stated interpretation
clarifies that FINRA will exercise its authority to declare over-the-
counter transactions in exchange-listed securities null and void under
FINRA Rule 11892 and Supplementary Material .01 consistent with
decisions made by the exchange(s) trading such securities. FINRA
believes that such an interpretation promotes just and equitable
principles of trade because it ensures consistent application of
clearly erroneous determinations across markets.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(1) \9\ thereunder. At any
time within the 60-day period beginning on the date
[[Page 47662]]
of the filing of the proposed rule change, the Commission summarily may
temporarily suspend 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-FINRA-2010-038 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2010-038. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, on
official business days between the hours of 10 a.m. and 3 p.m. Copies
of the filing also will be available for inspection and copying at
FINRA's principal office. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-FINRA-2010-038 and should be submitted on or before August 27, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary
[FR Doc. 2010-19331 Filed 8-5-10; 8:45 am]
BILLING CODE 8010-01-P
