Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update Rule Cross-References and Make Non-Substantive Technical Changes to Certain FINRA Rules, 32246-32248 [2011-13738]
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32246
Federal Register / Vol. 76, No. 107 / Friday, June 3, 2011 / Notices
Premier VIT [File No. 811–8512]
Summary: Applicant seeks an order
declaring that it has ceased to be an
investment company. On or about April
27, 2010, applicant made a liquidating
distribution to its shareholders, based
on net asset value. Expenses of $81,000
incurred in connection with the
liquidation were paid by applicant and
Allianz Global Investors Fund
Management LLC, applicant’s
investment adviser.
Filing Date: The application was filed
on August 12, 2010, and amended on
May 10, 2011.
Applicant’s Address: 1345 Avenue of
the Americas, New York, New York
10105.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–13751 Filed 6–2–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
Uniontown Energy, Inc.; Order of
Suspension of Trading
jlentini on DSK4TPTVN1PROD with NOTICES
June 1, 2011.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Uniontown
Energy, Inc. because of questions
regarding the accuracy of assertions by
the company, and by others, including
in press releases to investors
concerning, among other things: the
acquisition and exploration of oil
properties.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
company.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed company is
suspended for the period from 9:30 a.m.
EDT, on June 1, 2011 through 11:59 p.m.
EDT, on June 14, 2011.
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–13880 Filed 6–1–11; 11:15 am]
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SECURITIES AND EXCHANGE
COMMISSION
and C below, of the most significant
aspects of such statements.
[Release No. 34–64560; File No. SR–FINRA–
2011–024]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Update Rule CrossReferences and Make Non-Substantive
Technical Changes to Certain FINRA
Rules
May 27, 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 May 17,
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. 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 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,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
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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
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),
6630 (Applicability of FINRA Rules to
Securities Previously Designated as
PORTAL Securities), 7230A (Trade
Report Input), 7330 (Trade Report Input)
and 9217 (Violations Appropriate for
Disposition Under Plan Pursuant to SEA
Rule 19d–1(c)(2)) that are needed as the
result of Commission approval of two
recent FINRA proposed rule changes.5
Furthermore, the proposed rule change
would update a reference in FINRA
Rule 9120 (Definitions) to reflect that
the NASD Rule 3300 Series has been
replaced by FINRA Rule 4560 and the
FINRA Rule 5200 Series.6 The proposed
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).
5 See Securities Exchange Act Release No. 63150
(October 21, 2010), 75 FR 66173 (October 27, 2010)
(Order Approving File No. SR–FINRA–2009–058);
and Securities Exchange Act Release No. 63260
(November 5, 2010), 75 FR 69508 (November 12,
2010) (Order Approving File No. SR–FINRA–2010–
034).
6 See Securities Exchange Act Release No. 58461
(September 4, 2008), 73 FR 52710 (September 10,
2008) (Order Approving File No. SR–FINRA–2008–
033); Securities Exchange Act Release No. 60648
(September 10, 2009), 74 FR 47837 (September 17,
2009) (Order Approving File No. SR–FINRA–2009–
048); Securities Exchange Act Release No. 60659
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Federal Register / Vol. 76, No. 107 / Friday, June 3, 2011 / Notices
jlentini on DSK4TPTVN1PROD with NOTICES
rule change would also make a technical
change to FINRA Rule 4530 (Reporting
Requirements) to clarify in
Supplementary Material .03 that the
proper referenced term is ‘‘Order
Accepting an Offer of Settlement.’’ The
proposed rule change would also make
a technical change to FINRA Rule 6622
(Transaction Reporting) by moving the
word ‘‘and’’ from subparagraph (c)(3) to
subparagraph (c)(4). Additionally, the
proposed rule change would correct the
numbering of Incorporated NYSE Rule
Interpretation 409 (Statements of
Accounts to Customers) due to an
inadvertent deletion.7
FINRA also is proposing to move the
definition of ‘‘initial public offering’’
from Rule 6220 (Definitions) to Rule
6130 (Transactions Related to Initial
Public Offerings). FINRA is not
proposing substantive changes to the
definition of ‘‘initial public offering.’’
FINRA believes that Rule 6130 is the
more appropriate location for the
definition of ‘‘initial public offering’’ and
that relocating this definition, as
proposed, will reduce confusion for
members.
Finally, FINRA is proposing a change
to FINRA Rule 2268(a)(5) 8 to reflect
amendments to the Code of Arbitration
Procedure for Customer Disputes
allowing customers to choose an all
public arbitration panel.9
FINRA has filed the proposed rule
change for immediate effectiveness. The
implementation date for the proposed
rule changes to FINRA Rules 6130,
6220, 6622, 6630, 7230A, 7330 and 9120
will be June 17, 2011. The
implementation date for the proposed
rule changes to FINRA Rules 0150, 4530
and 9217 will be July 1, 2011. The
implementation date for the proposed
rule change to FINRA Rule 2268 will be
(September 11, 2009), 74 FR 48117 (September 21,
2009) (Order Approving File No. SR–FINRA–2009–
044); Securities Exchange Act Release No. 60835
(October 16, 2009), 74 FR 54616 (October 22, 2009)
(Order Approving File No. SR–FINRA–2009–055);
Securities Exchange Act Release No. 61071
(November 30, 2009), 74 FR 64109 (December 7,
2009) (Order Approving File No. SR–FINRA–2009–
067); and Securities Exchange Act Release No.
62842 (September 3, 2010), 75 FR 55842 (September
14, 2010) (Order Approving File No. SR–FINRA–
2010–030). When SR–FINRA–2010–030 became
effective, the last remaining provision of the NASD
Rule 3300 Series was deleted, thereby necessitating
the proposed rule change to FINRA Rule 9120.
7 See Securities Exchange Act Release No. 63999
(March 1, 2011), 76 FR 12380 (March 7, 2011)
(Order Approving File No. SR–FINRA–2010–061).
8 FINRA Rule 2268 was adopted as part of the
consolidated FINRA rules governing books and
records. See Regulatory Notice 11–19 (April 2011).
FINRA Rule 2268 will become effective on
December 5, 2011.
9 See Securities Exchange Act Release No. 63799
(January 31, 2011), 76 FR 6500 (February 4, 2011)
(Order Approving File No. SR–FINRA–2010–053).
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December 5, 2011. The implementation
date for the proposed rule change to
Incorporated NYSE Rule Interpretation
409 will be the effective date of SR–
FINRA–2010–061.10
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,11 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 12 and Rule 19b–
4(f)(6) thereunder.13
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
10 See Securities Exchange Act Release No. 63999
(March 1, 2011), 76 FR 12380 (March 7, 2011)
(Order Approving File No. SR–FINRA–2010–061).
11 15 U.S.C. 78o–3(b)(6).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the self-regulatory organization
to submit to the Commission written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
FINRA has satisfied this requirement.
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32247
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
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–2011–024 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–2011–024. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of
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–2011–024 and
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32248
Federal Register / Vol. 76, No. 107 / Friday, June 3, 2011 / Notices
should be submitted on or before June
24, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–13738 Filed 6–2–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64561; File No. SR–NYSE–
2011–15]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Granting Approval of Proposed Rule
Change To Modify the Initial Trading
Market Value for Debt Securities
jlentini on DSK4TPTVN1PROD with NOTICES
I. Introduction
On April 1, 2011, the New York Stock
Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to modify the initial trading
market value requirements for certain
debt securities. The proposed rule
change was published in the Federal
Register on April 14, 2011.3 The
Commission received no comments on
the proposal. This order grants approval
of the proposed rule change.
II. Description of the Proposal
The Exchange’s proposal would
amend NYSE Rule 1401 to modify the
initial trading market value requirement
for ‘‘Debt Securities’’ from $10,000,000
to $5,000,000. The term ‘‘Debt
Securities’’ includes any unlisted note,
bond, debenture or evidence of
indebtedness that is: (1) Statutorily
exempt from the registration
requirements of Section 12(b) of the Act,
or (2) eligible to be traded under a
Commission exemptive order. NYSE
Rules 1400 and 1401 set forth
requirements for trading Debt Securities.
Currently, NYSE Rule 1401 requires
that Debt Securities traded on the NYSE
have an outstanding aggregate market
value or principal amount of no less
than $10,000,000 on the date that
trading commences. In the Notice, the
Exchange cited a number of corporate
retail note programs offered by issuers
whose equity securities are listed on the
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 64287
(April 8, 2011), 76 FR 21086 (‘‘Notice’’).
1 15
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17:08 Jun 02, 2011
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Exchange that involve issuances of
$5,000,000 or more but less than
$10,000,000 in principal. The Exchange
proposed to reduce the required initial
outstanding aggregate market value to
$5,000,000 in order to be able to list
such securities. The Exchange believes
that expanding the number of Debt
Securities that could be traded on the
Exchange’s platform would offer
investors greater transparency and
choice with respect to secondary market
trading in such securities.
SECURITIES AND EXCHANGE
COMMISSION
III. Discussion and Commission’s
Findings
May 27, 2011
The Commission has carefully
reviewed the proposed rule change and
finds that it is consistent with the
requirements of Section 6 of the Act 4
and the rules and regulations
thereunder applicable to a national
securities exchange.5 In particular, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,6 which requires, among other
things, that the Exchange’s rules be
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
Commission believes that the proposal
is reasonably designed to expand
exchange trading for debt securities
with a smaller initial float, and thereby
to increase transparency and price
competition for investors.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (SR–NYSE–2011–
15) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Dated: May 27, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–13755 Filed 6–2–11; 8:45 am]
BILLING CODE 8011–01–P
4 15
U.S.C. 78f.
approving this 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).
6 17 U.S.C. 78f(b)(5).
7 15 U.S.C. 78s(b)(2).
8 17 CFR 200.30–3(a)(12).
5 In
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[Release No. 34–64564; File No. SR–MSRB–
2011–03]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing of Amendment
No. 1 and Order Granting Accelerated
Approval of a Proposed Rule Change,
as Modified by Amendment No. 1, to
Amend Rule G–23, on Activities of
Financial Advisors
On February 9, 2011, the Municipal
Securities Rulemaking Board (‘‘Board’’
or ‘‘MSRB’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend MSRB Rule G–23, on activities of
financial advisors. The Commission
published the proposed rule change for
comment in the Federal Register on
February 28, 2011 (the ‘‘Commission
Notice’’).3 The Commission received
eighteen comment letters.4 On May 27,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 63946
(February 22, 2011), 76 FR 10926.
4 See letter from F. John White, Chief Executive
Officer, Public Financial Management, Inc., dated
February 25, 2011 (‘‘PFM Letter’’); e-mail to Mary N.
Simpkins, Senior Special Counsel, Commission,
from Patricia Bowen, Vice President, Eastern Bank,
dated March 2, 2011 (‘‘Eastern Bank Letter’’); letter
from Robert W. Doty, President, American
Governmental Financial Services, dated March 10,
2011 (‘‘AGFS Letter’’); letter from Hill A. Feinberg,
Chairman and CEO, First Southwest Company,
dated March 16, 2011 (‘‘First Southwest Letter’’);
letter from Carl Giles, dated March 16, 2011 (‘‘Giles
Letter’’); letter from Keith Kolb, Managing Director,
Director of Baird Public Finance, Robert W. Baird
& Co. Incorporated, dated March 18, 2011 (‘‘Baird
Letter’’); letter from Joy A. Howard, Principal, WM
Financial Strategies, dated March 18, 2011 (‘‘Joy
Howard Letter’’); letter from Christopher Hamel,
Head of Municipal Finance, RBC Capital Markets,
LLC, dated March 21, 2011 (‘‘RBC Letter’’): letter
from Nathan R. Howard, Municipal Advisor, WM
Financial Strategies, dated March 21, 2011 (‘‘Nathan
Howard Letter’’); letter from Mike Nicholas, Chief
Executive Officer, Bond Dealers of America, dated
March 21, 2011 (‘‘BDA Letter’’); e-mail from David
A. Wagner, Senior Vice President and Financial
Advisor, Ehlers Associates, Inc., dated March 21,
2011 (‘‘Ehlers Letter’’); letter from Colette J. IrwinKnott, President, National Association of
Independent Public Finance Advisors, dated March
21, 2011 (‘‘NAIPFA Letter’’); letter from Steve
Apfelbacher, President, Ehlers Associates, Inc.,
dated March 21, 2011 (‘‘Apfelbacher Letter’’): letter
from Leslie M. Norwood, Managing Director and
Associate General Counsel, The Securities Industry
and Financial Markets Association, dated March 21,
2011 (‘‘SIFMA Letter’’); letter from Larry Kidwell,
President, Kidwell & Company Inc., dated March
21, 2011 (‘‘Kidwell Letter’’); e-mail from Robert J.
Stracks, Counsel, BMO Capital Markets GKST Inc.,
dated March 22, 2011 (‘‘BMO Letter’’); letter from
Susan Gaffney, Director, Federal Liaison Center,
2 17
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]]>Agencies
[Federal Register Volume 76, Number 107 (Friday, June 3, 2011)]
[Notices]
[Pages 32246-32248]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-13738]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64560; File No. SR-FINRA-2011-024]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Update Rule Cross-References and Make Non-
Substantive Technical Changes to Certain FINRA Rules
May 27, 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 May 17, 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. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
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 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), 6630 (Applicability of FINRA Rules to Securities
Previously Designated as PORTAL Securities), 7230A (Trade Report
Input), 7330 (Trade Report Input) and 9217 (Violations Appropriate for
Disposition Under Plan Pursuant to SEA Rule 19d-1(c)(2)) that are
needed as the result of Commission approval of two recent FINRA
proposed rule changes.\5\ Furthermore, the proposed rule change would
update a reference in FINRA Rule 9120 (Definitions) to reflect that the
NASD Rule 3300 Series has been replaced by FINRA Rule 4560 and the
FINRA Rule 5200 Series.\6\ The proposed
[[Page 32247]]
rule change would also make a technical change to FINRA Rule 4530
(Reporting Requirements) to clarify in Supplementary Material .03 that
the proper referenced term is ``Order Accepting an Offer of
Settlement.'' The proposed rule change would also make a technical
change to FINRA Rule 6622 (Transaction Reporting) by moving the word
``and'' from subparagraph (c)(3) to subparagraph (c)(4). Additionally,
the proposed rule change would correct the numbering of Incorporated
NYSE Rule Interpretation 409 (Statements of Accounts to Customers) due
to an inadvertent deletion.\7\
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\5\ See Securities Exchange Act Release No. 63150 (October 21,
2010), 75 FR 66173 (October 27, 2010) (Order Approving File No. SR-
FINRA-2009-058); and Securities Exchange Act Release No. 63260
(November 5, 2010), 75 FR 69508 (November 12, 2010) (Order Approving
File No. SR-FINRA-2010-034).
\6\ See Securities Exchange Act Release No. 58461 (September 4,
2008), 73 FR 52710 (September 10, 2008) (Order Approving File No.
SR-FINRA-2008-033); Securities Exchange Act Release No. 60648
(September 10, 2009), 74 FR 47837 (September 17, 2009) (Order
Approving File No. SR-FINRA-2009-048); Securities Exchange Act
Release No. 60659 (September 11, 2009), 74 FR 48117 (September 21,
2009) (Order Approving File No. SR-FINRA-2009-044); Securities
Exchange Act Release No. 60835 (October 16, 2009), 74 FR 54616
(October 22, 2009) (Order Approving File No. SR-FINRA-2009-055);
Securities Exchange Act Release No. 61071 (November 30, 2009), 74 FR
64109 (December 7, 2009) (Order Approving File No. SR-FINRA-2009-
067); and Securities Exchange Act Release No. 62842 (September 3,
2010), 75 FR 55842 (September 14, 2010) (Order Approving File No.
SR-FINRA-2010-030). When SR-FINRA-2010-030 became effective, the
last remaining provision of the NASD Rule 3300 Series was deleted,
thereby necessitating the proposed rule change to FINRA Rule 9120.
\7\ See Securities Exchange Act Release No. 63999 (March 1,
2011), 76 FR 12380 (March 7, 2011) (Order Approving File No. SR-
FINRA-2010-061).
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FINRA also is proposing to move the definition of ``initial public
offering'' from Rule 6220 (Definitions) to Rule 6130 (Transactions
Related to Initial Public Offerings). FINRA is not proposing
substantive changes to the definition of ``initial public offering.''
FINRA believes that Rule 6130 is the more appropriate location for the
definition of ``initial public offering'' and that relocating this
definition, as proposed, will reduce confusion for members.
Finally, FINRA is proposing a change to FINRA Rule 2268(a)(5) \8\
to reflect amendments to the Code of Arbitration Procedure for Customer
Disputes allowing customers to choose an all public arbitration
panel.\9\
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\8\ FINRA Rule 2268 was adopted as part of the consolidated
FINRA rules governing books and records. See Regulatory Notice 11-19
(April 2011). FINRA Rule 2268 will become effective on December 5,
2011.
\9\ See Securities Exchange Act Release No. 63799 (January 31,
2011), 76 FR 6500 (February 4, 2011) (Order Approving File No. SR-
FINRA-2010-053).
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FINRA has filed the proposed rule change for immediate
effectiveness. The implementation date for the proposed rule changes to
FINRA Rules 6130, 6220, 6622, 6630, 7230A, 7330 and 9120 will be June
17, 2011. The implementation date for the proposed rule changes to
FINRA Rules 0150, 4530 and 9217 will be July 1, 2011. The
implementation date for the proposed rule change to FINRA Rule 2268
will be December 5, 2011. The implementation date for the proposed rule
change to Incorporated NYSE Rule Interpretation 409 will be the
effective date of SR-FINRA-2010-061.\10\
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\10\ See Securities Exchange Act Release No. 63999 (March 1,
2011), 76 FR 12380 (March 7, 2011) (Order Approving File No. SR-
FINRA-2010-061).
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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,\11\ 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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\11\ 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 \12\ and Rule 19b-
4(f)(6) thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the self-regulatory organization to submit to the
Commission written notice of its intent to file the proposed rule
change, along with a brief description and text of the proposed rule
change, at least five business days prior to the date of filing of
the proposed rule change, or such shorter time as designated by the
Commission. FINRA has satisfied this requirement.
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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 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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-2011-024 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-2011-024. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for website
viewing and printing in the Commission's Public Reference Room, 100 F
Street, NE., Washington, DC 20549, on official business days between
the hours of 10 a.m. and 3 p.m. Copies of such filing also will be
available for inspection and copying at the principal office of 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-2011-024
and
[[Page 32248]]
should be submitted on or before June 24, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-13738 Filed 6-2-11; 8:45 am]
BILLING CODE 8011-01-P
