Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update a Cross-Reference in FINRA Rule 2232 (Customer Confirmations), 80556-80557 [2010-32090]
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80556
Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Notices
Exchange. The execution sequence for
Stock/Complex Orders in Rule 980NY,
Commentary .03(b) for orders submitted
to the Exchange’s CME is consistent
with the execution sequence set forth in
CBOE Rule 6.53C, Commentary .06(c),
and the requirement in Rule 980NY,
Commentary .03(d) to trade with
Customer orders only if there are
Customer orders at the Exchange’s best
quote for each of the options legs of a
Stock/Complex Order is consistent with
CBOE Rule 6.53C, Commentary .06(f).
Rule 980NY, Commentary .04
provides that a pattern or practice of
submitting unrelated orders that cause a
COA to conclude early will be deemed
conduct inconsistent with just and
equitable principles of trade, as will the
dissemination to third parties of
information related to COA-eligible
orders. These provisions, which are
comparable to CBOE Rule 6.53C,
Commentary .05, will require the
Exchange to surveil for, and should help
to deter, potential abuses of the COA
process. Finally, the Commission notes
that the order exposure obligations in
Rule 935NY apply to orders submitted
to a COA, and that these order exposure
obligations are separate from the
duration of the Response Time
Interval.29
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,30 that the
proposed rule change (File No. SR–
NYSEAmex–2010–100) is approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–32089 Filed 12–21–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
srobinson on DSKHWCL6B1PROD with NOTICES
[Release No. 34–63561; File No. SR–FINRA–
2010–066]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Update a CrossReference in FINRA Rule 2232
(Customer Confirmations)
December 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 December
13, 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 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to update a
certain cross-reference in FINRA Rule
2232 (Customer Confirmations) to
reflect changes adopted in the
consolidated FINRA rulebook.
The text of the proposed rule change
is available on FINRA’s website at
https://www.finra.org, at the principal
office of FINRA, on the Commission’s
Web site at https://www.sec.gov, 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
1 15
29 See
Rule 980NY(e)(3) and note 13, supra.
30 15 U.S.C. 78s(b)(2).
31 17 CFR 200.30–3(a)(12).
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20:24 Dec 21, 2010
Jkt 223001
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).
2 17
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
(‘‘Consolidated FINRA Rulebook’’).5 As
part of that process, the SEC recently
approved the adoption of FINRA Rule
2232 (Customer Confirmations) in the
Consolidated FINRA Rulebook.6
The proposed rule change updates a
certain cross-reference in FINRA Rule
2232 to reflect recent changes adopted
in the Consolidated FINRA Rulebook,
specifically, the transfer of the
definition of ‘‘direct participation
program’’ from former FINRA Rule 6642
to current FINRA Rule 6420.7
FINRA has filed the proposed rule
change for immediate effectiveness. The
implementation date of FINRA Rule
2232 will be June 17, 2011.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,8 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.
5 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).
6 See Securities Exchange Act Release No. 63150
(October 21, 2010), 75 FR 66173 (October 27, 2010)
(Order Approving Proposed Rule Change; File No.
SR–FINRA–2009–058).
7 See Securities Exchange Act Release No. 61819
(March 31, 2010), 75 FR 17806 (April 7, 2010)
(Order Approving Proposed Rule Change; File No.
SR–FINRA–2009–061).
8 15 U.S.C. 78o–3(b)(6).
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Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Notices
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 9 and paragraph (f)(1) of Rule
19b–4 thereunder.10 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:
srobinson on DSKHWCL6B1PROD 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–2010–066 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–2010–066. 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 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 publicly available. All
submissions should refer to File
Number SR–FINRA–2010–066 and
should be submitted on or before
January 12, 2011.
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(1).
10 17
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20:24 Dec 21, 2010
Jkt 223001
the Commission’s Public Reference
Room, and https://www.nyse.com.
BILLING CODE 8011–01–P
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
self-regulatory organization 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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–32090 Filed 12–21–10; 8:45 am]
[Release No. 34–63555; File No. SR–
NYSEAmex–2010–118]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Commentary
.11(a) to NYSE Amex Options Rule 915
To Permit Trading Options on
Leveraged Exchange-Traded Notes
and Broaden the Definition of Futures
Linked Securities
December 15, 2010.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on December
9, 2010, NYSE Amex LLC (the
‘‘Exchange’’ or ‘‘NYSE Amex’’) 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 the self-regulatory
organization. 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 amend
Commentary .11(a) to NYSE Amex
Options Rule 915 to: (1) Permit trading
options on leveraged (multiple or
inverse) exchange-traded notes, and (2)
broaden the definition of ‘‘FuturesLinked [sic]. The text of the proposed
rule change is available at the Exchange,
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a et seq.
3 17 CFR 240.19b–4.
1 15
9 15
80557
PO 00000
Frm 00103
Fmt 4703
Sfmt 4703
1. Purpose
The Exchange proposes to amend
Commentary .11(a) to NYSE Amex
Options Rule 915 to: (1) Permit trading
options on leveraged (multiple or
inverse) exchange-traded notes
(‘‘ETNs’’), and (2) broaden the definition
of ‘‘Futures-Linked Securities.’’ 4 ETNs
are also known as ‘‘Index-Linked
Securities,’’ which are designed for
investors who desire to participate in a
specific market segment by providing
exposure to one or more identifiable
underlying securities, commodities,
currencies, derivative instruments, or
market indexes of the foregoing. IndexLinked Securities are the nonconvertible
debt of an issuer that have a term of at
least one (1) year but not greater than
thirty (30) years. Despite the fact that
Index-Linked Securities are linked to an
underlying index, each trade as a single
exchange-listed security. Accordingly,
rules pertaining to the listing and
trading of standard equity options apply
to Index-Linked Securities.
Leveraged ETN Options
The Exchange proposes to amend
Commentary .11(a) to NYSE Amex
Options Rule 915 to permit the listing
of options on leveraged (multiple or
inverse) ETNs. Multiple leveraged ETNs
seek to provide investment results that
correspond to a specified multiple of the
percentage performance on a given day
of a particular Reference Asset. Inverse
leveraged ETNs seek to provide
investment results that correspond to
4 The amendments proposed herein are similar to
changes approved for the Chicago Board Options
Exchange (‘‘CBOE’’). See Securities Exchange Act
Release No. 63202 (October 28, 2010), 75 FR 67794
(November 3, 2010) (SR–CBOE–2010–080).
E:\FR\FM\22DEN1.SGM
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]]>Agencies
[Federal Register Volume 75, Number 245 (Wednesday, December 22, 2010)]
[Notices]
[Pages 80556-80557]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32090]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63561; File No. SR-FINRA-2010-066]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Update a Cross-Reference in FINRA Rule 2232
(Customer Confirmations)
December 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 December 13, 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 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 to update a certain cross-reference in FINRA
Rule 2232 (Customer Confirmations) to reflect changes adopted in the
consolidated FINRA rulebook.
The text of the proposed rule change is available on FINRA's
website at https://www.finra.org, at the principal office of FINRA, on
the Commission's Web site at https://www.sec.gov, 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'').\5\ As part of that process, the SEC
recently approved the adoption of FINRA Rule 2232 (Customer
Confirmations) in the Consolidated FINRA Rulebook.\6\
---------------------------------------------------------------------------
\5\ 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).
\6\ See Securities Exchange Act Release No. 63150 (October 21,
2010), 75 FR 66173 (October 27, 2010) (Order Approving Proposed Rule
Change; File No. SR-FINRA-2009-058).
---------------------------------------------------------------------------
The proposed rule change updates a certain cross-reference in FINRA
Rule 2232 to reflect recent changes adopted in the Consolidated FINRA
Rulebook, specifically, the transfer of the definition of ``direct
participation program'' from former FINRA Rule 6642 to current FINRA
Rule 6420.\7\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 61819 (March 31,
2010), 75 FR 17806 (April 7, 2010) (Order Approving Proposed Rule
Change; File No. SR-FINRA-2009-061).
---------------------------------------------------------------------------
FINRA has filed the proposed rule change for immediate
effectiveness. The implementation date of FINRA Rule 2232 will be June
17, 2011.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\8\ 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.
---------------------------------------------------------------------------
\8\ 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.
[[Page 80557]]
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 \9\ and paragraph (f)(1) of Rule 19b-4
thereunder.\10\ 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
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-2010-066 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-2010-066. 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 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 publicly available. All submissions should refer to File Number
SR-FINRA-2010-066 and should be submitted on or before January 12,
2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-32090 Filed 12-21-10; 8:45 am]
BILLING CODE 8011-01-P
