Self-Regulatory Organizations; NASDAQ OMX BX; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend BX Rules 2270 and 2910 To Reflect Changes to Corresponding FINRA Rule 2261, 66820-66822 [2010-27339]
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Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Notices
similar to that of another exchange that
has been approved by the Commission.8
Therefore, the Commission designates
the proposal operative upon filing.9
At any time within 60 days 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:
WReier-Aviles on DSKGBLS3C1PROD 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
Number SR–NYSEAmex–2010–99 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–NYSEAmex–2010–99. This
file number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
8 See
supra note 3.
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).
9 For
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Jkt 223001
a.m. and 3 p.m. Copies of the 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–
NYSEAmex–2010–99 and should be
submitted on or before November 19,
2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–27337 Filed 10–28–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63171; File No. SR–BX–
2010–071]
Self-Regulatory Organizations;
NASDAQ OMX BX; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend BX Rules 2270
and 2910 To Reflect Changes to
Corresponding FINRA Rule 2261
October 25, 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 October
20, 2010, NASDAQ OMX BX, Inc. (the
‘‘Exchange’’ or ‘‘BX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
primarily by the Exchange. The
Exchange has designated the proposed
rule change as constituting a noncontroversial rule change under Rule
19b–4(f)(6) under the Act,3 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing this proposed
rule change to amend BX Rules 2270
and 2910 to reflect recent changes to a
corresponding rule of the Financial
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
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Frm 00105
Fmt 4703
Sfmt 4703
Industry Regulatory Authority
(‘‘FINRA’’), which will result in
consolidating BX Rules 2270 and 2910
into BX Rule 2261. The Exchange
proposes to implement the proposed
rule change immediately. The text of the
proposed rule change is below.
Proposed new language is underlined;
proposed deletions are in [brackets].
*
*
*
*
*
2261. Disclosure of Financial Condition
Exchange Members shall comply with
FINRA Rule 2261 as if such Rule were
part of the Rules of the Exchange.
*
*
*
*
*
[2270. Disclosure of Financial
Condition to Customers]
Exchange Members shall comply with
NASD Rule 2270 as if such Rule were
part of the Rules of the Exchange.
FINRA is in the process of
consolidating certain NASD rules into a
new FINRA rulebook. If the provisions
of NASD Rule 2270 are transferred into
the FINRA rulebook, then Equity Rule
2270 shall be construed to require
Exchange members to comply with the
FINRA rule corresponding to NASD
Rule 2270 (regardless of whether such
rule is renumbered or amended) as if
such rule were part of the Rules of the
Exchange.]
*
*
*
*
*
[2910. Disclosure of Financial
Condition to Other Members]
Any Exchange member who is a party
to an open transaction or who has on
deposit cash or securities of another
member shall furnish upon written
request of the other member a statement
of its financial condition as disclosed in
its most recently prepared balance
sheet.]
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
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Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Notices
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Many of Exchange’s rules are based
on rules of FINRA (formerly the
National Association of Securities
Dealers (‘‘NASD’’)). During 2008, FINRA
embarked on an extended process of
moving rules formerly designated as
‘‘NASD Rules’’ into a consolidated
FINRA rulebook. In most cases, FINRA
has renumbered these rules, and in
some cases has substantively amended
them. Accordingly, the Exchange
initiated a process of modifying its
rulebook to ensure that the Exchange
rules corresponding to FINRA/NASD
rules continue to mirror them as closely
as practicable. The Exchange proposes
to update its rules to reflect changes BX
Rules 2270 and 2910 which corresponds
to FINRA Rule 2261.
BX Rule 2270 (Disclosure of Financial
Condition to Customers) and BX Rule
2910 (Disclosure of Financial Condition
to Other Members) formerly
corresponded to NASD Rule 2270
(Disclosure of Financial Condition to
Customers) and NASD Rule 2910
(Disclosure of Financial Condition to
Other Members). In SR–FINRA–2009–
081,4 FINRA re-designated NASD Rules
2270 and 2910 as FINRA Rule 2261 and
made substantive amendments to
strengthen and simplify the rules.
More specifically, the current BX Rule
2270, which incorporates NASD Rule
2270 by reference, requires that the
members make information relative to a
member’s financial condition, as
disclosed in its most recent balance
sheet, available for inspection by any
bona fide regular customer upon
request. In FINRA SR–2009–081, FINRA
provided members the option of
delivering their balance sheet, in paper
or electronic form, to customers who
request it. Additionally, if the delivery
is electronic, the requesting customer
must provide consent to receive the
balance sheet in electronic form to
ensure that such information is
accessible to the customer.
This proposed filing also addresses
BX Rule 2910, which compares to the
former NASD Rule 2910. BX Rule 2910
requires that any member that is a party
to an open transaction or who has on
deposit cash or securities of another
member to furnish, upon the written
request of the other member, a statement
of its financial condition as disclosed in
4 Securities Exchange Act Release No. 61540
(February 18, 2010), 75 FR 8771 (February 25, 2010)
(SR–FINRA–2009–081).
VerDate Mar<15>2010
15:23 Oct 28, 2010
Jkt 223001
its most recently prepared balance
sheet. In SR–FINRA–2009–081,5 FINRA
amended NASD Rule 2910 and
consolidated it within FINRA Rule 2261
to require that members provide to other
members the balance sheet that was
prepared in accordance with the
member’s usual practice or as required
by state or federal securities laws or any
corresponding rule or regulation. Also,
FINRA amended the provision to
require that members be permitted to
provide their balance sheet to other
members in paper or electronic form;
however, this does not require obtaining
consent of the other members for
delivery.
The Exchange believes that BX Rule
2270 and 2910 should be consolidated
and amended to reflect the provisions in
the new FINRA 2261. For clarification,
this results in deleting BX Rules 2270
and 2910. This will allow customers
and other members to continue to have
access to a copy of the member’s most
recent balance sheet at any time upon
request while simplifying the
provisions. The Exchange is adopting
the new FINRA rule in full by
incorporating by reference FINRA Rule
2261 into the proposed BX Rule 2261.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,6
in general, and with Sections 6(b)(5) of
the Act,7 in particular, in that the
proposal is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest. The
proposed changes will conform BX
Rules 2270 and 2910 to recent changes
made to corresponding FINRA Rule
2261 to promote application of
consistent regulatory standards.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
5 See
supra note 4.
U.S.C. 78f.
7 15 U.S.C. 78f(b)(5).
6 15
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66821
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)
of the Act 8 and Rule 19b–4(f)(6) 9
thereunder in that it effects a change
that: (i) Does not significantly affect the
protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) by its terms, does not become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest.
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.10 However, Rule 19b–
4(f)(6) 11 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 so that the proposal may become
operative upon filing. The Exchange
notes that the changes are identical to
changes made by FINRA approved by
the Commission, because the Exchange
is incorporating those changes.12 BX
proposes to incorporate the FINRA rule
by reference. For these reasons, the
Commission believes it is consistent
with the protection of investors and the
public interest to waive the 30-day
operative delay, and hereby grants such
waiver.13
At any time within 60 days of the
filing of such 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
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, BX has
given the Commission written notice of its intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date on
which the Exchange filed the proposed rule change.
10 17 CFR 240.19b–4(f)(6)(iii).
11 Id.
12 See supra note 4.
13 For the purposes only of waiving the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
9 17
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66822
Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Notices
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, as amended, 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.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–27339 Filed 10–28–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63174; File No. 4–617]
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–BX–2010–071 on the
subject line.
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
Electronic Comments
Study on Extraterritorial Private Rights
of Action
Securities and Exchange
Commission.
ACTION: Request for Comments.
AGENCY:
Section 929Y of the DoddFrank Wall Street Reform and Consumer
Paper Comments
Protection Act (the ‘‘Dodd-Frank Act’’)
• Send paper comments in triplicate
directs the Securities and Exchange
to Elizabeth M. Murphy, Secretary,
Commission (the ‘‘Commission’’) to
Securities and Exchange Commission,
solicit public comment and thereafter
100 F Street, NE., Washington, DC
conduct a study to determine the extent
20549–1090.
to which private rights of action under
the antifraud provisions of the
All submissions should refer to File
Securities Exchange Act of 1934 (the
Number SR–BX–2010–071. This file
‘‘Exchange Act’’) should be extended to
number should be included on the
subject line if e-mail is used. To help the cover transnational securities fraud. The
Commission is soliciting comment on
Commission process and review your
this question and on related questions.
comments more efficiently, please use
only one method. The Commission will DATES: The Commission will accept
post all comments on the Commission’s comments regarding issues related to
Internet Web site (https://www.sec.gov/
the study on or before February 18,
rules/sro.shtml). Copies of the
2011.
submission, all subsequent
ADDRESSES: Comments may be
amendments, all written statements
submitted by any of the following
with respect to the proposed rule
methods:
change that are filed with the
Electronic Comments
Commission, and all written
communications relating to the
• Use the Commission’s Internet
proposed rule change between the
comment form (https://www.sec.gov/
Commission and any person, other than rules/other.shtml); or
those that may be withheld from the
• Send an e-mail to rulepublic in accordance with the
comments@sec.gov. Please include File
provisions of 5 U.S.C. 552, will be
Number 4–617 on the subject line.
available for website viewing and
Paper Comments
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
• Send paper comments in triplicate
Washington, DC 20549, on official
to Elizabeth M. Murphy, Secretary,
business days between the hours of 10
Securities and Exchange Commission,
a.m. and 3 p.m. Copies of such filing
100 F Street, NE., Washington, DC
also will be available for inspection and 20549–1090.
copying at the principal office of the
All submissions should refer to File
Exchange. All comments received will
Number 4–617. This file number should
be posted without change; the
be included on the subject line if e-mail
Commission does not edit personal
is used. To help us process and review
identifying information from
your comments more efficiently, please
submissions.
use only one method. The Commission
You should submit only information
will post all comments on the
that you wish to make available
Commission’s Internet Web site (https://
publicly. All submissions should refer
www.sec.gov). Comments are also
to File Number SR–BX–2010–071 and
available for Web site viewing and
should be submitted on or before
November 19, 2010.
14 17 CFR 200.30–3(a)(12).
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15:23 Oct 28, 2010
Jkt 223001
SUMMARY:
PO 00000
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printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. All comments received
will be posted without change; we do
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly.
FOR FURTHER INFORMATION CONTACT: John
W. Avery, Office of the General Counsel,
at (202) 551–5107, or Robert Peterson,
Office of International Affairs, at (202)
551–6696, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549.
SUPPLEMENTARY INFORMATION:
I. Introduction
In a recent decision in Morrison v.
National Australia Bank, 130 S. Ct. 2869
(2010), the Supreme Court significantly
limited the extraterritorial scope of
Section 10(b) of the Exchange Act. In
the Dodd-Frank Act, Congress restored
the ability of the Commission and the
United States to bring actions under
Section 10(b) in cases involving
transnational securities fraud. Congress
further directed the Commission to
conduct a study to determine whether,
and to what extent, private plaintiffs
should also be able to bring such
actions. Consideration of the Morrison
decision and of extending the
extraterritorial scope of the antifraud
provisions of the Exchange Act to
private actions raises important
questions touching on the Commission’s
mandate to protect investors, to
maintain fair, orderly and efficient
markets, and to facilitate capital
formation. It also raises issues regarding
international comity and the respect
that governments afford each other
regarding their decisions on regulation
of their home markets. Exploration of
these issues will also help inform how
the Commission can best protect
investors and the integrity of U.S.
markets in an environment in which a
significant volume of securities
transactions are conducted across
borders.
II. Background
In Morrison, the Supreme Court
considered ‘‘whether § 10(b) of the
Securities Exchange Act of 1934
provides a cause of action to foreign
plaintiffs suing foreign and American
defendants for misconduct in
connection with securities traded on
foreign exchanges.’’ The text of the
Exchange Act had been silent as to the
transnational reach of Section 10(b). In
a decision issued on June 24, 2010, the
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]]>Agencies
[Federal Register Volume 75, Number 209 (Friday, October 29, 2010)]
[Notices]
[Pages 66820-66822]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-27339]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63171; File No. SR-BX-2010-071]
Self-Regulatory Organizations; NASDAQ OMX BX; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend BX Rules
2270 and 2910 To Reflect Changes to Corresponding FINRA Rule 2261
October 25, 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 October 20, 2010, NASDAQ OMX BX, Inc. (the ``Exchange'' or ``BX'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared primarily by the Exchange. The Exchange has
designated the proposed rule change as constituting a non-controversial
rule change under Rule 19b-4(f)(6) under the Act,\3\ which renders the
proposal effective upon filing with the Commission. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing this proposed rule change to amend BX Rules
2270 and 2910 to reflect recent changes to a corresponding rule of the
Financial Industry Regulatory Authority (``FINRA''), which will result
in consolidating BX Rules 2270 and 2910 into BX Rule 2261. The Exchange
proposes to implement the proposed rule change immediately. The text of
the proposed rule change is below. Proposed new language is underlined;
proposed deletions are in [brackets].
* * * * *
2261. Disclosure of Financial Condition
Exchange Members shall comply with FINRA Rule 2261 as if such Rule
were part of the Rules of the Exchange.
* * * * *
[2270. Disclosure of Financial Condition to Customers]
Exchange Members shall comply with NASD Rule 2270 as if such Rule
were part of the Rules of the Exchange.
FINRA is in the process of consolidating certain NASD rules into a
new FINRA rulebook. If the provisions of NASD Rule 2270 are transferred
into the FINRA rulebook, then Equity Rule 2270 shall be construed to
require Exchange members to comply with the FINRA rule corresponding to
NASD Rule 2270 (regardless of whether such rule is renumbered or
amended) as if such rule were part of the Rules of the Exchange.]
* * * * *
[2910. Disclosure of Financial Condition to Other Members]
Any Exchange member who is a party to an open transaction or who
has on deposit cash or securities of another member shall furnish upon
written request of the other member a statement of its financial
condition as disclosed in its most recently prepared balance sheet.]
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
[[Page 66821]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Many of Exchange's rules are based on rules of FINRA (formerly the
National Association of Securities Dealers (``NASD'')). During 2008,
FINRA embarked on an extended process of moving rules formerly
designated as ``NASD Rules'' into a consolidated FINRA rulebook. In
most cases, FINRA has renumbered these rules, and in some cases has
substantively amended them. Accordingly, the Exchange initiated a
process of modifying its rulebook to ensure that the Exchange rules
corresponding to FINRA/NASD rules continue to mirror them as closely as
practicable. The Exchange proposes to update its rules to reflect
changes BX Rules 2270 and 2910 which corresponds to FINRA Rule 2261.
BX Rule 2270 (Disclosure of Financial Condition to Customers) and
BX Rule 2910 (Disclosure of Financial Condition to Other Members)
formerly corresponded to NASD Rule 2270 (Disclosure of Financial
Condition to Customers) and NASD Rule 2910 (Disclosure of Financial
Condition to Other Members). In SR-FINRA-2009-081,\4\ FINRA re-
designated NASD Rules 2270 and 2910 as FINRA Rule 2261 and made
substantive amendments to strengthen and simplify the rules.
---------------------------------------------------------------------------
\4\ Securities Exchange Act Release No. 61540 (February 18,
2010), 75 FR 8771 (February 25, 2010) (SR-FINRA-2009-081).
---------------------------------------------------------------------------
More specifically, the current BX Rule 2270, which incorporates
NASD Rule 2270 by reference, requires that the members make information
relative to a member's financial condition, as disclosed in its most
recent balance sheet, available for inspection by any bona fide regular
customer upon request. In FINRA SR-2009-081, FINRA provided members the
option of delivering their balance sheet, in paper or electronic form,
to customers who request it. Additionally, if the delivery is
electronic, the requesting customer must provide consent to receive the
balance sheet in electronic form to ensure that such information is
accessible to the customer.
This proposed filing also addresses BX Rule 2910, which compares to
the former NASD Rule 2910. BX Rule 2910 requires that any member that
is a party to an open transaction or who has on deposit cash or
securities of another member to furnish, upon the written request of
the other member, a statement of its financial condition as disclosed
in its most recently prepared balance sheet. In SR-FINRA-2009-081,\5\
FINRA amended NASD Rule 2910 and consolidated it within FINRA Rule 2261
to require that members provide to other members the balance sheet that
was prepared in accordance with the member's usual practice or as
required by state or federal securities laws or any corresponding rule
or regulation. Also, FINRA amended the provision to require that
members be permitted to provide their balance sheet to other members in
paper or electronic form; however, this does not require obtaining
consent of the other members for delivery.
---------------------------------------------------------------------------
\5\ See supra note 4.
---------------------------------------------------------------------------
The Exchange believes that BX Rule 2270 and 2910 should be
consolidated and amended to reflect the provisions in the new FINRA
2261. For clarification, this results in deleting BX Rules 2270 and
2910. This will allow customers and other members to continue to have
access to a copy of the member's most recent balance sheet at any time
upon request while simplifying the provisions. The Exchange is adopting
the new FINRA rule in full by incorporating by reference FINRA Rule
2261 into the proposed BX Rule 2261.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\6\ in general, and with
Sections 6(b)(5) of the Act,\7\ in particular, in that the proposal is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. The proposed
changes will conform BX Rules 2270 and 2910 to recent changes made to
corresponding FINRA Rule 2261 to promote application of consistent
regulatory standards.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) \9\ thereunder in that
it effects a change that: (i) Does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). In addition, BX has given the
Commission written notice of its intent to file the proposed rule
change, along with a brief description and text of the proposed rule
change, at least five business days prior to the date on which the
Exchange filed the proposed rule change.
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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.\10\
However, Rule 19b-4(f)(6) \11\ 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 so that the proposal may
become operative upon filing. The Exchange notes that the changes are
identical to changes made by FINRA approved by the Commission, because
the Exchange is incorporating those changes.\12\ BX proposes to
incorporate the FINRA rule by reference. For these reasons, the
Commission believes it is consistent with the protection of investors
and the public interest to waive the 30-day operative delay, and hereby
grants such waiver.\13\
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\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ Id.
\12\ See supra note 4.
\13\ For the purposes only of waiving the operative date of this
proposal, 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 such 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
[[Page 66822]]
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, as amended, is consistent with the Act. Comments may be
submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-BX-2010-071 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BX-2010-071. 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 website viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions.
You should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-BX-2010-071
and should be submitted on or before November 19, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-27339 Filed 10-28-10; 8:45 am]
BILLING CODE 8011-01-P
