Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Extension of Implementation Date for Expansion of the Order Audit Trail System to All NMS Stocks, 25399-25400 [2011-10897]
Download as PDF
Federal Register / Vol. 76, No. 86 / Wesnesday, May 4, 2011 / Notices
jlentini on DSKJ8SOYB1PROD with NOTICES
of the FINRA Board. FINRA stated that
it intends to seek informal input from
retiring District Committee members
regarding potential future members,
thus continuing to draw upon the
expertise of this group, without the need
and expense of the current District
Nominating Committees.
V. Commission Findings
The Commission has carefully
reviewed the proposed rule change, the
comment letter, and FINRA’s response
to the comment, and believes that
FINRA has appropriately responded to
the commenter’s concerns. The
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities association, and, in
particular, with the provisions of
Section 15A(b)(6) of the Act,8 which
requires, among other things, that
FINRA rules 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.9
The proposed rule change is designed
to streamline the nomination and
election process for District Committees,
adjust the size and composition of
District Committees, amend the
qualification requirements, prescribe
further term limits for District
Committee members, and make other
administrative and technical changes to
the process, and should result in
additional candidates willing to serve
on a District Committee. The proposal
aligns the representation of members on
the District Committees to be generally
consistent with the industry
representation on the FINRA Board of
Governors and the industry
representation on the NAC. As FINRA
stated in its Response Letter, threesevenths of the District Committee
members will represent Small Firms,
one-seventh will represent Mid-Sized
Firms and three-sevenths will represent
Large Firms. FINRA’s goal is to more
closely align the membership of the
District Committees with its
membership while streamlining the
process for finding and electing
candidates to serve on the District
Committee.
FINRA will prohibit a District
Committee member from serving
consecutive three-year terms to bring
different perspectives and views to
8 15
U.S.C 78o–3(b)(6).
approving the proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
9 In
VerDate Mar<15>2010
17:45 May 03, 2011
Jkt 223001
District Committees. Individuals
interested in serving more than one term
may do so on a non-consecutive basis.
FINRA is eliminating the Advisory
Council and will seek views on policy
issues and recommendations directly
from its membership. With these
changes, the Commission believes that
FINRA will be able to realize the goals
of the District Committee system
without the time and resource
expenditures now required of Advisory
Council members and FINRA staff.
Further, centralizing the election
process within the Corporate Secretary’s
office should streamline the process
making it more efficient. The Corporate
Secretary’s office will be able to apply
its administrative experience from other
FINRA elections to the process for
District Committee elections. 10
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,11 that the
proposed rule change (SR–FINRA–
2011–011) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–10857 Filed 5–3–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64369; File No. SR–FINRA–
2011–021]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Extension of
Implementation Date for Expansion of
the Order Audit Trail System to All
NMS Stocks
April 29, 2011.
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 April 26,
2011, 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
10 FINRA
will implement the proposal on the first
day of the month following Commission approval.
11 15 U.S.C. 78s(b)(2).
12 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
25399
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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to establish
October 3, 2011, as the implementation
date of the amendments to FINRA Rules
7410 and 7470 that the Commission
approved on November 12, 2010.4
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 filing the proposed rule
change to establish October 3, 2011, as
the implementation date for the
amendments to the OATS rules
expanding the OATS recording and
reporting requirements to all NMS
stocks.
On November 12, 2010, the SEC
approved SR–FINRA–2010–044, which
amended FINRA Rules 7410 and 7470 to
expand the OATS recording and
reporting requirements to include all
NMS stocks.5 On January 11, 2011,
FINRA published Regulatory Notice 11–
03 announcing that the Commission
approved the amendments and that
FINRA was publishing a new version of
the OATS Reporting Technical
Specifications. Pursuant to the SEC’s
approval of SR–FINRA–2010–044 and
3 17
CFR 240.19b–4(f)(6).
Securities Exchange Act Rel. No. 63311
(November 12, 2010), 75 FR 70757 (November 18,
2010) (SR–FINRA–2010–044).
5 See Securities Exchange Act Rel. No. 63311
(November 12, 2010), 75 FR 70757 (November 18,
2010) (SR–FINRA–2010–044).
4 See
E:\FR\FM\04MYN1.SGM
04MYN1
25400
Federal Register / Vol. 76, No. 86 / Wesnesday, May 4, 2011 / Notices
the timing set forth in Regulatory Notice
11–03, the amendments to the OATS
Rules are currently scheduled to begin
to be phased in on July 11, 2011, six
months after the publication of
Regulatory Notice 11–03 and the revised
OATS Reporting Technical
Specifications.
Since the publication of the Notice
and the OATS Reporting Technical
Specifications, many firms and industry
groups have requested that the
implementation date for the new
recording and reporting requirements be
delayed to allow firms sufficient time to
make necessary systems updates and
changes. In addition, firms have noted
that the time needed to make the
necessary changes was increased
because firms are also changing and
updating their systems to comply with
the SEC’s new rule on risk management
controls for broker-dealers with market
access, Rule 15c3–5 under the Act,6
which has a compliance date of July 14,
2011.7 As a result of these discussions,
FINRA is seeking to delay the
implementation of the new OATS
recording and reporting requirements
for NMS stocks until October 3, 2011, to
give firms sufficient time to make
necessary changes to their systems to
enable them to comply with the
expanded OATS recording and
reporting requirements. Consequently,
FINRA will begin to phase-in the new
recording and reporting requirements
beginning on October 3, 2011.
FINRA has filed the proposed rule
change for immediate effectiveness.
jlentini on DSKJ8SOYB1PROD with NOTICES
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 that
extending the implementation date of
the extension of the OATS Rules to all
NMS stocks will ensure that firms have
sufficient time to make the necessary
changes to their systems to be able to
comply with the new OATS recording
and reporting requirements when they
become effective.
6 17
CFR 240.15c3–5.
Securities Exchange Act Release No. 63241
(November 3, 2010), 75 FR 69792 (November 15,
2010).
8 15 U.S.C. 78o–3(b)(6).
7 See
VerDate Mar<15>2010
17:45 May 03, 2011
Jkt 223001
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 9 and Rule 19b–
4(f)(6) 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:
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–2011–021 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–2011–021. This file
number should be included on the
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 17
PO 00000
Frm 00103
Fmt 4703
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 publicly available. All
submissions should refer to File
Number SR–FINRA–2011–021 and
should be submitted on or before May
25, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–10897 Filed 5–3–11; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Advisory Committee on Veterans
Business Affairs Meeting
U.S. Small Business
Administration.
ACTION: Notice of open Federal Advisory
Committee Meeting.
AGENCY:
The SBA is issuing this notice
to announce the location, date, time,
and agenda for the next meeting of the
Advisory Committee on Veterans
Business Affairs. The meeting will be
open to the public.
DATES: May 19, 2011 from 9 a.m. to 5
p.m. in the Eisenhower Conference
room, side B, located on the 2nd floor.
ADDRESSES: U.S. Small Business
Administration, 409 3rd Street, SW.,
Washington, DC 20416.
SUMMARY:
11 17
Sfmt 4703
E:\FR\FM\04MYN1.SGM
CFR 200.30–3(a)(12).
04MYN1
Agencies
[Federal Register Volume 76, Number 86 (Wednesday, May 4, 2011)]
[Notices]
[Pages 25399-25400]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-10897]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64369; File No. SR-FINRA-2011-021]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change Relating to Extension of Implementation Date for
Expansion of the Order Audit Trail System to All NMS Stocks
April 29, 2011.
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 April 26, 2011, 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to establish October 3, 2011, as the
implementation date of the amendments to FINRA Rules 7410 and 7470 that
the Commission approved on November 12, 2010.\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Rel. No. 63311 (November 12,
2010), 75 FR 70757 (November 18, 2010) (SR-FINRA-2010-044).
---------------------------------------------------------------------------
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 filing the proposed rule change to establish October 3,
2011, as the implementation date for the amendments to the OATS rules
expanding the OATS recording and reporting requirements to all NMS
stocks.
On November 12, 2010, the SEC approved SR-FINRA-2010-044, which
amended FINRA Rules 7410 and 7470 to expand the OATS recording and
reporting requirements to include all NMS stocks.\5\ On January 11,
2011, FINRA published Regulatory Notice 11-03 announcing that the
Commission approved the amendments and that FINRA was publishing a new
version of the OATS Reporting Technical Specifications. Pursuant to the
SEC's approval of SR-FINRA-2010-044 and
[[Page 25400]]
the timing set forth in Regulatory Notice 11-03, the amendments to the
OATS Rules are currently scheduled to begin to be phased in on July 11,
2011, six months after the publication of Regulatory Notice 11-03 and
the revised OATS Reporting Technical Specifications.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Rel. No. 63311 (November 12,
2010), 75 FR 70757 (November 18, 2010) (SR-FINRA-2010-044).
---------------------------------------------------------------------------
Since the publication of the Notice and the OATS Reporting
Technical Specifications, many firms and industry groups have requested
that the implementation date for the new recording and reporting
requirements be delayed to allow firms sufficient time to make
necessary systems updates and changes. In addition, firms have noted
that the time needed to make the necessary changes was increased
because firms are also changing and updating their systems to comply
with the SEC's new rule on risk management controls for broker-dealers
with market access, Rule 15c3-5 under the Act,\6\ which has a
compliance date of July 14, 2011.\7\ As a result of these discussions,
FINRA is seeking to delay the implementation of the new OATS recording
and reporting requirements for NMS stocks until October 3, 2011, to
give firms sufficient time to make necessary changes to their systems
to enable them to comply with the expanded OATS recording and reporting
requirements. Consequently, FINRA will begin to phase-in the new
recording and reporting requirements beginning on October 3, 2011.
---------------------------------------------------------------------------
\6\ 17 CFR 240.15c3-5.
\7\ See Securities Exchange Act Release No. 63241 (November 3,
2010), 75 FR 69792 (November 15, 2010).
---------------------------------------------------------------------------
FINRA has filed the proposed rule change for immediate
effectiveness.
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 that extending the implementation date
of the extension of the OATS Rules to all NMS stocks will ensure that
firms have sufficient time to make the necessary changes to their
systems to be able to comply with the new OATS recording and reporting
requirements when they become effective.
---------------------------------------------------------------------------
\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.
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 \9\ and Rule 19b-
4(f)(6) thereunder.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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 rule-comments@sec.gov. Please include
File Number SR-FINRA-2011-021 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-2011-021. 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 publicly
available. All submissions should refer to File Number SR-FINRA-2011-
021 and should be submitted on or before May 25, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-10897 Filed 5-3-11; 8:45 am]
BILLING CODE 8011-01-P