Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Deleting NYSE Rule 346 and Adopting New Rule 3270 To Correspond With Rule Changes Filed by the Financial Industry Regulatory Authority, Inc., 18285-18287 [2011-7652]
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<![CDATA[
Federal Register / Vol. 76, No. 63 / Friday, April 1, 2011 / Notices
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),14 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The SRO has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing.
The SRO believes that this filing is
non-controversial because it raises no
novel issues and is consistent with the
FINRA rule filing previously approved
by the Commission on which it is
based.15 In particular, the purpose of the
proposed rule changes is to conform the
NYSE Amex Equities Rules to FINRA’s
adoption of consolidated FINRA Rule
3270 in furtherance of the consolidation
of the member firm regulation functions
of NYSER and FINRA. Except as
specifically noted, and subject to such
technical changes as are necessary to
apply the Rule to the SRO, NYSE Amex
proposes to adopt the rule changes in
the form that they were approved by the
Commission for FINRA. Accordingly,
the SRO believes that these rule changes
are eligible for immediately effective
treatment under the Commission’s
current procedures for processing rule
filings.16 The SRO requested an
accelerated operative date for the
proposed rule changes in order to avoid
regulatory gaps between the FINRA and
NYSE Amex Equity Rules and to further
ensure that, as applicable, the NYSE
Amex Equity Rules maintain their status
as Common Rules under the
Agreement.17 The Commission believes
it is consistent with the protection of
investors and the public interest to
waive the 30-day operative delay for
this reason, and hereby grants such a
waiver.18
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
investors, or otherwise in furtherance of
the purposes of the Act.
14 17
CFR 240.19b–4(f)(6)(iii).
fn. 4.
16 See Securities Exchange Act Release No. 58092
(July 3, 2008), 73 FR 40143 (July 11, 2008)
(concerning 17 CFR 200 and 241).
17 As provided in paragraph 2(b) of the
Agreement, FINRA and NYSE will amend the list
of Common Rules to conform to the rule changes
proposed herein. See fn. 5.
18 For purposes of waiving the 30-day operative
delay, the Commission has considered the proposed
rule change’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
mstockstill on DSKH9S0YB1PROD with NOTICES
15 See
VerDate Mar<15>2010
20:09 Mar 31, 2011
Jkt 223001
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–NYSEAmex–2011–17 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.
18285
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–7651 Filed 3–31–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64131; File No. SR–NYSE–
2011–12]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Deleting NYSE
Rule 346 and Adopting New Rule 3270
To Correspond With Rule Changes
Filed by the Financial Industry
Regulatory Authority, Inc.
March 28, 2011.
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 March 14,
All submissions should refer to File
2011, New York Stock Exchange LLC
Number SR–NYSEAmex–2011–17. This
(‘‘NYSE’’ or the ‘‘SRO’’) filed with the
file number should be included on the
Securities and Exchange Commission
subject line if e-mail is used. To help the (the ‘‘Commission’’) the proposed rule
Commission process and review your
change as described in Items I, II, and
comments more efficiently, please use
III below, which Items have been
only one method. The Commission will substantially prepared by the SRO. The
post all comments on the Commission’s Commission is publishing this notice to
Internet Web site (https://www.sec.gov/
solicit comments on the proposed rule
rules/sro.shtml). Copies of the
change from interested persons.
submission, all subsequent
I. Self-Regulatory Organization’s
amendments, all written statements
Statement of the Terms of Substance of
with respect to the proposed rule
the Proposed Rule Change
change that are filed with the
The SRO proposes to delete NYSE
Commission, and all written
Rule 346 and adopt new Rule 3270 to
communications relating to the
correspond with rule changes filed by
proposed rule change between the
Commission and any person, other than the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) and approved
those that may be withheld from the
by the Securities and Exchange
public in accordance with the
Commission (the ‘‘Commission’’).4 The
provisions of 5 U.S.C. 552, will be
text of the proposed rule change is
available for Web site viewing and
available at the NYSE, at the
printing in the Commission’s Public
Commission’s Public Reference Room,
Reference Section, 100 F Street, NE.,
and on NYSE’s Web site at https://
Washington, DC 20549–1090. Copies of
www.nyse.com.
the filing will also be available for
II. Self-Regulatory Organization’s
inspection and copying at the NYSE’s
Statement of the Purpose of, and
principal office and on its Internet Web
Statutory Basis for, the Proposed Rule
site at https://www.nyse.com. All
Change
comments received will be posted
In its filing with the Commission, the
without change; the Commission does
NYSE included statements concerning
not edit personal identifying
the purpose of, and basis for, the
information from submissions. You
should submit only information that
19 17 CFR 200.30–3(a)(12).
you wish to make available publicly. All
1 15 U.S.C.78s(b)(1).
submissions should refer to File
2 15 U.S.C. 78a.
Number SR–NYSEAmex–2011–17 and
3 17 CFR 240.19b–4.
4 See Securities Exchange Act Release No. 62762
should be submitted on or before April
(August 23, 2010), 75 FR 53362 (August 31, 2010)
22, 2011.
PO 00000
(approval order).
Frm 00142
Fmt 4703
Sfmt 4703
E:\FR\FM\01APN1.SGM
01APN1
18286
Federal Register / Vol. 76, No. 63 / Friday, April 1, 2011 / Notices
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
SRO has prepared summaries, set forth
in Sections A, B, and C below, of the
most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change, to delete NYSE Rule 346
(Limitations—Employment and
Association with Members and Member
Organizations) and adopt new Rule
3270 (Outside Business Activities of
Registered Persons), is to correspond
with rule changes filed by FINRA and
approved by the Commission.
mstockstill on DSKH9S0YB1PROD with NOTICES
Background
On July 30, 2007, FINRA’s
predecessors, the National Association
of Securities Dealers, Inc. (‘‘NASD’’) and
NYSE Regulation, Inc. (‘‘NYSER’’),
consolidated their member firm
regulation operations into a combined
organization, FINRA. Pursuant to Rule
17d–2 under the Securities Exchange
Act of 1934, as amended (the ‘‘Act’’),
NYSE, NYSER and FINRA entered into
an agreement (the ‘‘Agreement’’) to
reduce regulatory duplication for their
members by allocating to FINRA certain
regulatory responsibilities for certain
NYSE rules and rule interpretations
(‘‘FINRA Incorporated NYSE Rules’’).
NYSE Amex LLC (‘‘NYSE Amex’’)
became a party to the Agreement
effective December 15, 2008.5
As part of its effort to reduce
regulatory duplication and relieve firms
that are members of FINRA, NYSE and
NYSE Amex of conflicting or
unnecessary regulatory burdens, FINRA
is now engaged in the process of
reviewing and amending the NASD and
FINRA Incorporated NYSE Rules in
order to create a consolidated FINRA
rulebook.6
5 See Securities Exchange Act Release Nos. 56148
(July 26, 2007), 72 FR 42146 (August 1, 2007) (order
approving the Agreement); 56147 (July 26, 2007), 72
FR 42166 (August 1, 2007) (SR–NASD–2007–054)
(order approving the incorporation of certain NYSE
Rules as ‘‘Common Rules’’); and 60409 (July 30,
2009), 74 FR 39353 (August 6, 2009) (order
approving the amended and restated Agreement,
adding NYSE Amex LLC as a party). Paragraph 2(b)
of the Agreement sets forth procedures regarding
proposed changes by FINRA, NYSE or NYSE Amex
to the substance of any of the Common Rules.
6 FINRA’s rulebook currently has three sets of
rules: (1) NASD Rules, (2) FINRA Incorporated
NYSE Rules, and (3) consolidated FINRA Rules.
VerDate Mar<15>2010
20:09 Mar 31, 2011
Jkt 223001
Proposed Conforming Amendments to
NYSE Rules
FINRA adopted NASD Rule 3030
(Outside Business Activities of an
Associated Person), which prohibits any
registered person from being employed
by or accepting any compensation from
any person as a result of any outside
business activity, other than passive
investments, unless he has provided
prompt written notice to his member
firm, as consolidated FINRA Rule 3270
requires, subject to certain
modifications. FINRA also deleted
Incorporated NYSE Rule 346 as it is
substantially similar to consolidated
FINRA Rule 3270.7
To harmonize the NYSE Rules with
the approved consolidated FINRA
Rules, the SRO correspondingly
proposes to delete NYSE Rule 346 and
replace it with proposed NYSE Rule
3270, which is substantially similar to
the new FINRA Rule.8 As proposed,
NYSE Rule 3270 adopts the same
language as FINRA Rule 3270, except
for substituting for or adding to, as
needed, the term ‘‘member organization’’
for the term ‘‘member,’’ and making
corresponding technical changes.
2. Statutory Basis
The SRO believes that the proposed
rule changes are consistent with the
provisions of Section 6(b) of the Act,9 in
general, and further the objectives of
Section 6(b)(5) of the Act,10 in
particular, in that they are designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
The SRO believes that the proposed
rule changes support the objectives of
the Act by providing greater
harmonization between NYSE Rules and
FINRA Rules (including Common Rules)
of similar purpose, resulting in less
burdensome and more efficient
regulatory compliance for Dual
Members. To the extent the SRO has
proposed changes that differ from the
The FINRA Incorporated NYSE Rules apply only to
those members of FINRA that are also members of
the NYSE (‘‘Dual Members’’), while the consolidated
FINRA Rules apply to all FINRA members. For
more information about the FINRA rulebook
consolidation process, see FINRA Information
Notice, March 12, 2008.
7 See fn. 4.
8 NYSE Amex has submitted a companion rule
filing amending its rules in accordance with
FINRA’s rule changes. See SR–NYSEAmex-2011–
17.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00143
Fmt 4703
Sfmt 4703
FINRA version of the Rules, such
changes are technical in nature and do
not change the substance of the
proposed NYSE Rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The SRO does not believe that the
proposed rule change will impose 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 Other
No written comments were solicited
or received by the SRO with respect to
the proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The SRO has filed the proposed rule
change pursuant to Section
19(b)(3)(A)(iii) of the Act 11 and Rule
19b–4(f)(6) thereunder.12 Because the
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
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, and is
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),14 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
SRO has asked the Commission to waive
the 30-day operative delay so that the
proposal may become operative
immediately upon filing.
The SRO believes that this filing is
non-controversial because it raises no
novel issues and is consistent with the
FINRA rule filing previously approved
by the Commission on which it is
based.15 In particular, the purpose of the
proposed rule changes is to conform the
NYSE Rules to FINRA’s adoption of
consolidated FINRA Rule 3270 in
11 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 See fn. 4.
12 17
E:\FR\FM\01APN1.SGM
01APN1
Federal Register / Vol. 76, No. 63 / Friday, April 1, 2011 / Notices
furtherance of the consolidation of the
member firm regulation functions of
NYSER and FINRA. Except as
specifically noted, and subject to such
technical changes as are necessary to
apply the Rule to the SRO, NYSE
proposes to adopt the rule changes in
the form that they were approved by the
Commission for FINRA. Accordingly,
the SRO believes that these rule changes
are eligible for immediately effective
treatment under the Commission’s
current procedures for processing rule
filings.16 The SRO has requested an
accelerated operative date for the
proposed rule changes in order to avoid
regulatory gaps between the FINRA and
NYSE Rules and to further ensure that,
as applicable, the NYSE Rules maintain
their status as Common Rules under the
Agreement.17 The Commission believes
it is consistent with the protection of
investors and the public interest to
waive the 30-day operative delay for
this reason, and hereby grants such a
waiver.18
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
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–NYSE–2011–12 on the
subject line.
mstockstill on DSKH9S0YB1PROD with NOTICES
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
16 See Securities Exchange Act Release No. 58092
(July 3, 2008), 73 FR 40143 (July 11, 2008)
(concerning 17 CFR 200 and 241).
17 As provided in paragraph 2(b) of the
Agreement, FINRA and NYSE will amend the list
of Common Rules to conform to the rule changes
proposed herein. See fn. 5.
18 For purposes of waiving the 30-day operative
delay, the Commission has considered the proposed
rule change’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
20:09 Mar 31, 2011
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–7652 Filed 3–31–11; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #12499 and #12500]
Paper Comments
VerDate Mar<15>2010
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2011–12. 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 Section, 100 F Street, NE.,
Washington, DC 20549–1090. Copies of
the filing will also be available for
inspection and copying at the NYSE’s
principal office and on its Internet Web
site at https://www.nyse.com. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSE–2011–12 and should
be submitted on or before April 22,
2011.
Jkt 223001
Indiana Disaster #IN–00035
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a notice of an
Administrative declaration of a disaster
for the State of Indiana dated 03/24/
2011.
Incident: Severe Storms, Snowmelt
and Flooding.
SUMMARY:
18287
Incident Period: 02/27/2011 through
03/08/2011.
Effective Date: 03/24/2011.
Physical Loan Application Deadline
Date: 05/23/2011.
Economic Injury (EIDL) Loan
Application Deadline Date: 12/27/2011.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing And
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT:
A. Escobar, Office of Disaster
Assistance, U.S. Small Business
Administration, 409 3rd Street, SW.,
Suite 6050, Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
Administrator’s disaster declaration,
applications for disaster loans may be
filed at the address listed above or other
locally announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties:
Delaware, Jay.
Contiguous Counties:
Indiana: Adams, Blackford, Grant,
Henry, Madison, Randolph, Wells.
Ohio: Darke, Mercer.
The Interest Rates are:
Percent
For Physical Damage:
Homeowners With Credit Available Elsewhere ......................
Homeowners Without Credit
Available Elsewhere ..............
Businesses With Credit Available Elsewhere ......................
Businesses
Without
Credit
Available Elsewhere ..............
Non-Profit Organizations With
Credit Available Elsewhere ...
Non-Profit Organizations Without Credit Available Elsewhere .....................................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives Without Credit
Available Elsewhere ..............
Non-Profit Organizations Without Credit Available Elsewhere .....................................
PO 00000
CFR 200.30–3(a)(12).
Frm 00144
Fmt 4703
Sfmt 4703
2.563
6.000
4.000
3.250
3.000
4.000
3.000
The number assigned to this disaster
for physical damage is 12499 6 and for
economic injury is 12500 0.
The States which received an EIDL
Declaration # are Indiana; Ohio.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Dated: March 24, 2011.
Karen G. Mills,
Administrator.
[FR Doc. 2011–7660 Filed 3–31–11; 8:45 am]
19 17
5.125
BILLING CODE 8025–01–P
E:\FR\FM\01APN1.SGM
01APN1
]]>Agencies
[Federal Register Volume 76, Number 63 (Friday, April 1, 2011)]
[Notices]
[Pages 18285-18287]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-7652]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64131; File No. SR-NYSE-2011-12]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Deleting NYSE Rule 346 and Adopting New Rule 3270 To Correspond With
Rule Changes Filed by the Financial Industry Regulatory Authority, Inc.
March 28, 2011.
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 March 14, 2011, New York Stock Exchange LLC (``NYSE'' or
the ``SRO'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by the SRO.
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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The SRO proposes to delete NYSE Rule 346 and adopt new Rule 3270 to
correspond with rule changes filed by the Financial Industry Regulatory
Authority, Inc. (``FINRA'') and approved by the Securities and Exchange
Commission (the ``Commission'').\4\ The text of the proposed rule
change is available at the NYSE, at the Commission's Public Reference
Room, and on NYSE's Web site at https://www.nyse.com.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 62762 (August 23,
2010), 75 FR 53362 (August 31, 2010) (approval order).
---------------------------------------------------------------------------
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 NYSE included statements
concerning the purpose of, and basis for, the
[[Page 18286]]
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 SRO has prepared summaries,
set forth in Sections A, B, and C below, of the most significant parts
of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change, to delete NYSE Rule 346
(Limitations--Employment and Association with Members and Member
Organizations) and adopt new Rule 3270 (Outside Business Activities of
Registered Persons), is to correspond with rule changes filed by FINRA
and approved by the Commission.
Background
On July 30, 2007, FINRA's predecessors, the National Association of
Securities Dealers, Inc. (``NASD'') and NYSE Regulation, Inc.
(``NYSER''), consolidated their member firm regulation operations into
a combined organization, FINRA. Pursuant to Rule 17d-2 under the
Securities Exchange Act of 1934, as amended (the ``Act''), NYSE, NYSER
and FINRA entered into an agreement (the ``Agreement'') to reduce
regulatory duplication for their members by allocating to FINRA certain
regulatory responsibilities for certain NYSE rules and rule
interpretations (``FINRA Incorporated NYSE Rules''). NYSE Amex LLC
(``NYSE Amex'') became a party to the Agreement effective December 15,
2008.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release Nos. 56148 (July 26,
2007), 72 FR 42146 (August 1, 2007) (order approving the Agreement);
56147 (July 26, 2007), 72 FR 42166 (August 1, 2007) (SR-NASD-2007-
054) (order approving the incorporation of certain NYSE Rules as
``Common Rules''); and 60409 (July 30, 2009), 74 FR 39353 (August 6,
2009) (order approving the amended and restated Agreement, adding
NYSE Amex LLC as a party). Paragraph 2(b) of the Agreement sets
forth procedures regarding proposed changes by FINRA, NYSE or NYSE
Amex to the substance of any of the Common Rules.
---------------------------------------------------------------------------
As part of its effort to reduce regulatory duplication and relieve
firms that are members of FINRA, NYSE and NYSE Amex of conflicting or
unnecessary regulatory burdens, FINRA is now engaged in the process of
reviewing and amending the NASD and FINRA Incorporated NYSE Rules in
order to create a consolidated FINRA rulebook.\6\
---------------------------------------------------------------------------
\6\ FINRA's rulebook currently has three sets of rules: (1) NASD
Rules, (2) FINRA Incorporated NYSE Rules, and (3) consolidated FINRA
Rules. The FINRA Incorporated NYSE Rules apply only to those members
of FINRA that are also members of the NYSE (``Dual Members''), while
the consolidated FINRA Rules apply to all FINRA members. For more
information about the FINRA rulebook consolidation process, see
FINRA Information Notice, March 12, 2008.
---------------------------------------------------------------------------
Proposed Conforming Amendments to NYSE Rules
FINRA adopted NASD Rule 3030 (Outside Business Activities of an
Associated Person), which prohibits any registered person from being
employed by or accepting any compensation from any person as a result
of any outside business activity, other than passive investments,
unless he has provided prompt written notice to his member firm, as
consolidated FINRA Rule 3270 requires, subject to certain
modifications. FINRA also deleted Incorporated NYSE Rule 346 as it is
substantially similar to consolidated FINRA Rule 3270.\7\
---------------------------------------------------------------------------
\7\ See fn. 4.
---------------------------------------------------------------------------
To harmonize the NYSE Rules with the approved consolidated FINRA
Rules, the SRO correspondingly proposes to delete NYSE Rule 346 and
replace it with proposed NYSE Rule 3270, which is substantially similar
to the new FINRA Rule.\8\ As proposed, NYSE Rule 3270 adopts the same
language as FINRA Rule 3270, except for substituting for or adding to,
as needed, the term ``member organization'' for the term ``member,''
and making corresponding technical changes.
---------------------------------------------------------------------------
\8\ NYSE Amex has submitted a companion rule filing amending its
rules in accordance with FINRA's rule changes. See SR-NYSEAmex-2011-
17.
---------------------------------------------------------------------------
2. Statutory Basis
The SRO believes that the proposed rule changes are consistent with
the provisions of Section 6(b) of the Act,\9\ in general, and further
the objectives of Section 6(b)(5) of the Act,\10\ in particular, in
that they are designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
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The SRO believes that the proposed rule changes support the
objectives of the Act by providing greater harmonization between NYSE
Rules and FINRA Rules (including Common Rules) of similar purpose,
resulting in less burdensome and more efficient regulatory compliance
for Dual Members. To the extent the SRO has proposed changes that
differ from the FINRA version of the Rules, such changes are technical
in nature and do not change the substance of the proposed NYSE Rules.
B. Self-Regulatory Organization's Statement on Burden on Competition
The SRO does not believe that the proposed rule change will impose
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 Other
No written comments were solicited or received by the SRO with
respect to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The SRO has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
Because the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, and is consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\14\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The SRO has asked the
Commission to waive the 30-day operative delay so that the proposal may
become operative immediately upon filing.
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
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The SRO believes that this filing is non-controversial because it
raises no novel issues and is consistent with the FINRA rule filing
previously approved by the Commission on which it is based.\15\ In
particular, the purpose of the proposed rule changes is to conform the
NYSE Rules to FINRA's adoption of consolidated FINRA Rule 3270 in
[[Page 18287]]
furtherance of the consolidation of the member firm regulation
functions of NYSER and FINRA. Except as specifically noted, and subject
to such technical changes as are necessary to apply the Rule to the
SRO, NYSE proposes to adopt the rule changes in the form that they were
approved by the Commission for FINRA. Accordingly, the SRO believes
that these rule changes are eligible for immediately effective
treatment under the Commission's current procedures for processing rule
filings.\16\ The SRO has requested an accelerated operative date for
the proposed rule changes in order to avoid regulatory gaps between the
FINRA and NYSE Rules and to further ensure that, as applicable, the
NYSE Rules maintain their status as Common Rules under the
Agreement.\17\ The Commission believes it is consistent with the
protection of investors and the public interest to waive the 30-day
operative delay for this reason, and hereby grants such a waiver.\18\
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\15\ See fn. 4.
\16\ See Securities Exchange Act Release No. 58092 (July 3,
2008), 73 FR 40143 (July 11, 2008) (concerning 17 CFR 200 and 241).
\17\ As provided in paragraph 2(b) of the Agreement, FINRA and
NYSE will amend the list of Common Rules to conform to the rule
changes proposed herein. See fn. 5.
\18\ For purposes of waiving the 30-day operative delay, the
Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. 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 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-NYSE-2011-12 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2011-12. 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 Section, 100 F Street,
NE., Washington, DC 20549-1090. Copies of the filing will also be
available for inspection and copying at the NYSE's principal office and
on its Internet Web site at https://www.nyse.com. All comments received
will be posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSE-2011-12 and should be submitted on
or before April 22, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-7652 Filed 3-31-11; 8:45 am]
BILLING CODE 8011-01-P
