Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update Certain Cross-References and Make Non-Substantive Technical Changes to Certain FINRA Rules, 71164-71166 [2010-29395]
Download as PDF
71164
Federal Register / Vol. 75, No. 224 / Monday, November 22, 2010 / Notices
in general, and Section 6(b)(5) of the
Act,4 in particular, in that it is designed
to prevent fraudulent and manipulative
acts and practices, promote just and
equitable principles of trade, foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, and remove
impediments to and perfect the
mechanism for a free and open market
and a national market system and, in
general, to protect investors and the
public interest. In particular, the
Exchange believes listing additional
near-term expiration months will offer
investors more variety in trading
options series that were previously not
available. The Exchange believes this
proposal will also generate additional
volume in these options classes without
significantly taxing system resources.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition 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
The Exchange has neither solicited
nor received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not significantly affect the
protection of investors or the public
interest, does not impose any significant
burden on competition, and, by its
terms, does not become operative for 30
days from the date on which it was
filed, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 5 and Rule 19b–
4(f)(6) thereunder.6
The Exchange has requested that the
Commission waive the 30-day operative
delay. The Commission believes that
waiver of the operative delay is
consistent with the protection of
4 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A).
6 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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. The Commission
has waived the five-day pre-filing requirement in
this case.
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5 15
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17:49 Nov 19, 2010
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investors and the public interest
because the proposal is substantially
similar to that of another exchange that
has been approved by the Commission.7
Therefore, the Commission designates
the proposal operative upon filing.8
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:
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–BX–2010–077 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–2010–077. 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
7 See Securities Exchange Act Release No. 63104
(October 14, 2010), 75 FR 64773 (October 20, 2010)
(Approving Additional Expiration Months Pilot
Program).
8 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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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 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–BX–
2010–077 and should be submitted on
or before December 13, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–29352 Filed 11–19–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63319; File No. SR–FINRA–
2010–060]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Update Certain CrossReferences and Make Non-Substantive
Technical Changes to Certain FINRA
Rules
November 16, 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 November
10, 2010, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) 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 FINRA. FINRA has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
change under paragraph (f)(6) of Rule
19b–4 under the Act,3 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.
9 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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Federal Register / Vol. 75, No. 224 / Monday, November 22, 2010 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to update crossreferences within certain FINRA rules to
reflect changes adopted in the
consolidated FINRA rulebook and to
make non-substantive technical changes
to certain FINRA Rules.
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
Statutory Basis for, the Proposed Rule
Change
jlentini on DSKJ8SOYB1PROD with NOTICES
1. Purpose
FINRA is in the process of developing
a new consolidated rulebook
(‘‘Consolidated FINRA Rulebook’’).4
That process involves FINRA submitting
to the Commission for approval a series
of proposed rule changes over time to
adopt rules in the Consolidated FINRA
Rulebook. The phased adoption and
implementation of those rules
necessitates periodic amendments to
update rule cross-references and other
non-substantive technical changes in
the Consolidated FINRA Rulebook.
The proposed rule change would
update rule cross-references to reflect
recent changes adopted in the
Consolidated FINRA Rulebook. In this
regard, the proposed rule change would
update references in FINRA Rules 0150
4 The current FINRA rulebook consists of (1)
FINRA Rules; (2) NASD Rules; and (3) rules
incorporated from NYSE (‘‘Incorporated NYSE
Rules’’) (together, the NASD Rules and Incorporated
NYSE Rules are referred to as the ‘‘Transitional
Rulebook’’). While the NASD Rules generally apply
to all FINRA members, the Incorporated NYSE
Rules apply only to those members of FINRA that
are also members of the NYSE (‘‘Dual Members’’).
The FINRA Rules apply to all FINRA members,
unless such rules have a more limited application
by their terms. For more information about the
rulebook consolidation process, see Information
Notice, March 12, 2008 (Rulebook Consolidation
Process).
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17:49 Nov 19, 2010
Jkt 223001
(Application of Rules to Exempted
Securities Except Municipal Securities),
2130 (Approval Procedures for DayTrading Accounts), 2140 (Interfering
With the Transfer of Customer Accounts
in the Context of Employment
Disputes), 2150 (Improper Use of
Customers’ Securities or Funds;
Prohibition Against Guarantees and
Sharing in Accounts), 2270 (DayTrading Risk Disclosure Statement),
2360 (Options), 5110 (Corporate
Financing Rule—Underwriting Terms
and Arrangements), 5122 (Private
Placements of Securities Issued By
Members), 5250 (Payments for Market
Making), 6630 (Applicability of FINRA
Rules to Securities Previously
Designated as PORTAL Securities), 9217
(Violations Appropriate for Disposition
Under Plan Pursuant to SEA Rule 19d–
1(c)(2)), 9610 (Application), and 11574
(Certificate in Name of Deceased Person,
Trustee, etc.) that are needed as the
result of Commission approval of five
recent FINRA proposed rule changes.5
In addition, the proposed rule change
would amend FINRA Rules 11100
(Scope of Uniform Practice Code) and
11580 (Transfer of Limited Partnership
Securities), to update cross-references to
NASD Rule 2810, which was
renumbered as FINRA Rule 2310.6
Finally, the proposed rule change would
make non-substantive technical changes
to FINRA Rules 6420 (Definitions), 8313
(Release of Disciplinary Complaints,
Decisions and Other Information),
11560 (Certificate of Company Whose
Transfer Books Are Closed), 11720
(Irregular Delivery—Transfer Refused—
Lost or Stolen Securities), and 11870
(Customer Account Transfer Contracts),
and delete a reference to Rule 11830
(Reserved) to reflect changes in FINRA
style and naming conventions.
FINRA has filed the proposed rule
change for immediate effectiveness. The
implementation date for the proposed
rule change will be December 15, 2010,
the date on which certain of the
previously approved rule changes will
5 See Securities Exchange Act Release No. 62482
(July 12, 2010), 75 FR 41562 (July 16, 2010) (Order
Approving File No. SR–FINRA–2010–024);
Securities Exchange Act Release No. 62539 (July 21,
2010), 75 FR 44033 (July 27, 2010) (Order
Approving File No. SR–FINRA–2010–029);
Securities Exchange Act Release No. 62702 (August
12, 2010), 75 FR 51147 (August 18, 2010) (Order
Approving File No. SR–FINRA–2010–026);
Securities Exchange Act Release No. 62762 (August
23, 2010), 75 FR 53362 (August 31, 2010) (Order
Approving File No. SR–FINRA–2009–042);
Securities Exchange Act Release No. 62842
(September 3, 2010), 75 FR 55842 (September 14,
2010) (Order Approving File No. SR–FINRA–2010–
030).
6 See Securities Exchange Act Release No. 59987
(May 27, 2009), 74 FR 26902 (June 4, 2009) (Order
Approving File No. SR–FINRA–2009–016).
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71165
be implemented,7 except for proposed
rule changes to FINRA Rule 6630(d)(1)
that would eliminate the references to
NASD Rules 2730, 2740 and 2750 and
add references to FINRA Rule 5141.
Those proposed changes will be
implemented on February 8, 2011, the
date on which the relevant previously
approved rule change will be
implemented.8
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,9 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 the
proposed rule change will provide
greater clarity to members and the
public regarding FINRA’s rules.
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
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
7 See Regulatory Notice 10–49 (October 2010)
(regarding File Nos. SR–FINRA–2009–042, FINRA–
2010–026, and SR–FINRA–2010–030, effective
December 15, 2010). File No. SR–FINRA–2010–024
is effective December 2, 2010. See Regulatory Notice
10–45 (October 2010).
8 See Regulatory Notice 10–47 (October 2010)
(regarding File No. SR–FINRA–2010–029).
9 15 U.S.C. 78o–3(b)(6).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
E:\FR\FM\22NON1.SGM
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71166
Federal Register / Vol. 75, No. 224 / Monday, November 22, 2010 / Notices
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
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:
[FR Doc. 2010–29395 Filed 11–19–10; 8:45 am]
jlentini on DSKJ8SOYB1PROD 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–FINRA–2010–060 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–2010–060. 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
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of
FINRA. All comments received will be
posted without change; the Commission
does not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–FINRA–2010–060 and
should be submitted on or before
December 13, 2010.
VerDate Mar<15>2010
17:49 Nov 19, 2010
Jkt 223001
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63316; File No. SR–FINRA–
2010–056]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Proposed Rule Change To Adopt
FINRA Rule 1113 (Restriction
Pertaining to New Member
Applications) and To Amend the FINRA
Rule 9520 Series (Eligibility
Proceedings)
November 15, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule
19b–4 thereunder,2 notice is hereby
given that on November 1, 2010,
Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) (f/k/a
National Association of Securities
Dealers, Inc. (‘‘NASD’’)) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared by FINRA. 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
FINRA is proposing to adopt new
FINRA Rule 1113 (Restriction Pertaining
to New Member Applications) and to
amend the FINRA Rule 9520 Series
(Eligibility Proceedings) to restrict new
member applicants’ and certain
members’ association with disqualified
persons.
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.
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
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Fmt 4703
Sfmt 4703
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
FINRA is proposing a rule change to
adopt new FINRA Rule 1113
(Restriction Pertaining to New Member
Applications) and to amend the FINRA
Rule 9520 Series (Eligibility
Proceedings) to restrict new member
applicants’ and certain members’
association with disqualified persons.
The details of the proposed rule change
are described below.
Background
Article III, Section 3(b) of the FINRA
By-Laws provides that no person shall
be associated with a member, continue
to be associated with a member, or
transfer association to another member
if such person is or becomes subject to
disqualification; and that no firm shall
be admitted to membership, and no
member shall be continued in
membership, if any person associated
with it is subject to a disqualification.
Pursuant to Article III, Section 4 of the
FINRA By-Laws, a person is subject to
a ‘‘disqualification’’ with respect to
membership, or association with a
member, if such person is subject to any
‘‘statutory disqualification’’ as such term
is defined in Exchange Act Section
3(a)(39).3
3 See 15 U.S.C. 78c(a)(39). Pursuant to Exchange
Act Section 3(a)(39), a person is subject to a
‘‘statutory disqualification’’ with respect to
membership or participation in, or association with
a member of, a self-regulatory organization (‘‘SRO’’)
if such person, among other things: Has been
convicted of certain misdemeanor and all felony
criminal convictions for a period of ten years from
the date of the filing of an application for
membership or participation in, or to become
associated with a member of, such SRO; is subject
to a temporary or permanent injunction (regardless
of its age) issued by a court of competent
jurisdiction involving a broad range of unlawful
investment activities; has been expelled or
suspended from membership or participation in an
SRO; or is subject to an SEC order denying,
suspending, or revoking broker-dealer registration.
E:\FR\FM\22NON1.SGM
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Agencies
[Federal Register Volume 75, Number 224 (Monday, November 22, 2010)]
[Notices]
[Pages 71164-71166]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-29395]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63319; File No. SR-FINRA-2010-060]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Update Certain Cross-References and Make Non-
Substantive Technical Changes to Certain FINRA Rules
November 16, 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 November 10, 2010, Financial Industry Regulatory Authority, Inc.
(``FINRA'') 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 FINRA. FINRA has designated
the proposed rule change as constituting a ``non-controversial'' rule
change under paragraph (f)(6) of Rule 19b-4 under the Act,\3\ 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\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
[[Page 71165]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to update cross-references within certain FINRA
rules to reflect changes adopted in the consolidated FINRA rulebook and
to make non-substantive technical changes to certain FINRA Rules.
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
FINRA is in the process of developing a new consolidated rulebook
(``Consolidated FINRA Rulebook'').\4\ That process involves FINRA
submitting to the Commission for approval a series of proposed rule
changes over time to adopt rules in the Consolidated FINRA Rulebook.
The phased adoption and implementation of those rules necessitates
periodic amendments to update rule cross-references and other non-
substantive technical changes in the Consolidated FINRA Rulebook.
---------------------------------------------------------------------------
\4\ The current FINRA rulebook consists of (1) FINRA Rules; (2)
NASD Rules; and (3) rules incorporated from NYSE (``Incorporated
NYSE Rules'') (together, the NASD Rules and Incorporated NYSE Rules
are referred to as the ``Transitional Rulebook''). While the NASD
Rules generally apply to all FINRA members, the Incorporated NYSE
Rules apply only to those members of FINRA that are also members of
the NYSE (``Dual Members''). The FINRA Rules apply to all FINRA
members, unless such rules have a more limited application by their
terms. For more information about the rulebook consolidation
process, see Information Notice, March 12, 2008 (Rulebook
Consolidation Process).
---------------------------------------------------------------------------
The proposed rule change would update rule cross-references to
reflect recent changes adopted in the Consolidated FINRA Rulebook. In
this regard, the proposed rule change would update references in FINRA
Rules 0150 (Application of Rules to Exempted Securities Except
Municipal Securities), 2130 (Approval Procedures for Day-Trading
Accounts), 2140 (Interfering With the Transfer of Customer Accounts in
the Context of Employment Disputes), 2150 (Improper Use of Customers'
Securities or Funds; Prohibition Against Guarantees and Sharing in
Accounts), 2270 (Day-Trading Risk Disclosure Statement), 2360
(Options), 5110 (Corporate Financing Rule--Underwriting Terms and
Arrangements), 5122 (Private Placements of Securities Issued By
Members), 5250 (Payments for Market Making), 6630 (Applicability of
FINRA Rules to Securities Previously Designated as PORTAL Securities),
9217 (Violations Appropriate for Disposition Under Plan Pursuant to SEA
Rule 19d-1(c)(2)), 9610 (Application), and 11574 (Certificate in Name
of Deceased Person, Trustee, etc.) that are needed as the result of
Commission approval of five recent FINRA proposed rule changes.\5\ In
addition, the proposed rule change would amend FINRA Rules 11100 (Scope
of Uniform Practice Code) and 11580 (Transfer of Limited Partnership
Securities), to update cross-references to NASD Rule 2810, which was
renumbered as FINRA Rule 2310.\6\ Finally, the proposed rule change
would make non-substantive technical changes to FINRA Rules 6420
(Definitions), 8313 (Release of Disciplinary Complaints, Decisions and
Other Information), 11560 (Certificate of Company Whose Transfer Books
Are Closed), 11720 (Irregular Delivery--Transfer Refused--Lost or
Stolen Securities), and 11870 (Customer Account Transfer Contracts),
and delete a reference to Rule 11830 (Reserved) to reflect changes in
FINRA style and naming conventions.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 62482 (July 12,
2010), 75 FR 41562 (July 16, 2010) (Order Approving File No. SR-
FINRA-2010-024); Securities Exchange Act Release No. 62539 (July 21,
2010), 75 FR 44033 (July 27, 2010) (Order Approving File No. SR-
FINRA-2010-029); Securities Exchange Act Release No. 62702 (August
12, 2010), 75 FR 51147 (August 18, 2010) (Order Approving File No.
SR-FINRA-2010-026); Securities Exchange Act Release No. 62762
(August 23, 2010), 75 FR 53362 (August 31, 2010) (Order Approving
File No. SR-FINRA-2009-042); Securities Exchange Act Release No.
62842 (September 3, 2010), 75 FR 55842 (September 14, 2010) (Order
Approving File No. SR-FINRA-2010-030).
\6\ See Securities Exchange Act Release No. 59987 (May 27,
2009), 74 FR 26902 (June 4, 2009) (Order Approving File No. SR-
FINRA-2009-016).
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FINRA has filed the proposed rule change for immediate
effectiveness. The implementation date for the proposed rule change
will be December 15, 2010, the date on which certain of the previously
approved rule changes will be implemented,\7\ except for proposed rule
changes to FINRA Rule 6630(d)(1) that would eliminate the references to
NASD Rules 2730, 2740 and 2750 and add references to FINRA Rule 5141.
Those proposed changes will be implemented on February 8, 2011, the
date on which the relevant previously approved rule change will be
implemented.\8\
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\7\ See Regulatory Notice 10-49 (October 2010) (regarding File
Nos. SR-FINRA-2009-042, FINRA-2010-026, and SR-FINRA-2010-030,
effective December 15, 2010). File No. SR-FINRA-2010-024 is
effective December 2, 2010. See Regulatory Notice 10-45 (October
2010).
\8\ See Regulatory Notice 10-47 (October 2010) (regarding File
No. SR-FINRA-2010-029).
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2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\9\ 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 the proposed rule change will provide
greater clarity to members and the public regarding FINRA's rules.
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\9\ 15 U.S.C. 78o-3(b)(6).
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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
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if
[[Page 71166]]
it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-FINRA-2010-060 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-2010-060. 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 a.m. and 3 p.m. Copies of such filing also will be
available for inspection and copying at the principal office of FINRA.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-FINRA-2010-060
and should be submitted on or before December 13, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-29395 Filed 11-19-10; 8:45 am]
BILLING CODE 8011-01-P