Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Deleting the Text of Rule 409(f)-NYSE Amex Equities and Adopting the Text of FINRA Rule 2232, 39949-39951 [2011-16931]
Download as PDF
Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Notices
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
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 12 and Rule
19b-4(f)(6) thereunder.13 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, if
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) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),15 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing.16
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.
12 15
13 17
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
sroberts on DSK5SPTVN1PROD with NOTICES
14 Id.
15 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires that a self-regulatory
organization 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. The Exchange has satisfied this
requirement.
16 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Mar<15>2010
16:26 Jul 06, 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–2011–42 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.
39949
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–16932 Filed 7–6–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64783; File No. SR–
NYSEAMEX–2011–41]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Deleting the Text of Rule
409(f)—NYSE Amex Equities and
Adopting the Text of FINRA Rule 2232
June 30, 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 June 17,
2011, NYSE Amex LLC (the ‘‘Exchange’’
or ‘‘NYSE Amex’’) filed with the
All submissions should refer to File
Number SR–NYSEAMEX–2011–42. This Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
file number should be included on the
change as described in Items I and II
subject line if e-mail is used. To help the
below, which Items have been
Commission process and review your
substantially prepared by the selfcomments more efficiently, please use
regulatory organization. The
only one method. The Commission will Commission is publishing this notice to
post all comments on the Commission’s solicit comments on the proposed rule
Internet Web site (https://www.sec.gov/
change from interested persons.
rules/sro.shtml). Copies of the
I. Self-Regulatory Organization’s
submission, all subsequent
Statement of the Terms of Substance of
amendments, all written statements
the Proposed Rule Change
with respect to the proposed rule
The Exchange proposes to delete the
change that are filed with the
text of Rule 409(f)—NYSE Amex
Commission, and all written
Equities and adopt the text of FINRA
communications relating to the
Rule 2232. The text of the proposed rule
proposed rule change between the
Commission and any person, other than change is available at the Exchange, the
Commission’s Public Reference Room,
those that may be withheld from the
and https://www.nyse.com.
public in accordance with the
II. Self-Regulatory Organization’s
provisions of 5 U.S.C. 552, will be
Statement of the Purpose of, and
available for Web site viewing and
Statutory Basis for, the Proposed Rule
printing in the Commission’s Public
Change
Reference Room, 100 F Street, NE.,
Washington, DC 20549–1090. Copies of
In its filing with the Commission, the
the filing will also be available for
self-regulatory organization included
statements concerning the purpose of,
inspection and copying at the NYSE’s
and basis for, the proposed rule change
principal office and on its Internet Web
and discussed any comments it received
site at https://www.nyse.com. All
on the proposed rule change. The text
comments received will be posted
of those statements may be examined at
without change; the Commission does
the places specified in Item IV below.
not edit personal identifying
The Exchange has prepared summaries,
information from submissions. You
set forth in sections A, B, and C below,
should submit only information that
you wish to make available publicly. All of the most significant parts of such
statements.
submissions should refer to File
Number SR–NYSEAMEX–2011–42 and
17 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
should be submitted on or before July
2 15 U.S.C. 78a et seq.
28, 2011.
PO 00000
3 17
Frm 00139
Fmt 4703
Sfmt 4703
E:\FR\FM\07JYN1.SGM
CFR 240.19b–4.
07JYN1
39950
Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to delete the
text of Rule 409(f)—NYSE Amex
Equities and adopt the text of FINRA
Rule 2232.
Background
On July 30, 2007, FINRA’s
predecessor, the National Association of
Securities Dealers, Inc. (‘‘NASD’’), and
NYSE Regulation, Inc. (‘‘NYSER’’)
consolidated their member firm
regulation operations into a combined
organization, FINRA.4 Pursuant to Rule
17d–2 under the Act, New York Stock
Exchange, LLC (‘‘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 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
Rule 409(f)—NYSE Amex Equities and
FINRA Rule 2232
sroberts on DSK5SPTVN1PROD with NOTICES
In connection with the rule
consolidation efforts between the
Exchange and FINRA, the Commission
has recently approved FINRA Rule
4 See Securities Exchange Act Release No. 62970
(Sept. 22, 2010), 75 FR 59771 (Sept. 28, 2010) (order
approving SR–FINRA–2010–37).
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.
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.
VerDate Mar<15>2010
16:26 Jul 06, 2011
Jkt 223001
2232,7 which is modeled after NYSE
Rule 409(f), NASD Rule 2230 and NASD
IM–2110–6.8 FINRA Rule 2232 requires
member firms, at or before the
completion of any transaction in any
security effected for or with an account
of a customer, to give or send to such
customer written notification
(‘‘confirmation’’) in conformity with the
requirements of Rule 10b–10 under the
Act. A confirmation given or sent
pursuant to FINRA Rule 2232 must
further disclose (1) with respect to any
transaction in any NMS stock, as
defined in Rule 600 of SEC Regulation
NMS, or any security subject to the
reporting requirements of the FINRA
Rule 6600 Series, other than direct
participation programs as defined in
FINRA Rule 6420, the settlement date of
the transaction; and (2) with respect to
any transaction in a callable equity
security, that (A) the security is a
callable equity security and (B) a
customer may contact the member for
more information concerning the
security.
The Exchange proposes to delete the
text of Rule 409(f)—NYSE Amex
Equities 9 and adopt the text of FINRA
Rule 2232 as Rule 2232—NYSE Amex
Equities, with certain technical changes.
Specifically, for consistency with
Exchange rules, the Exchange proposes
to change all references to ‘‘members’’ to
‘‘member organizations.’’ The Exchange
proposes that these changes, including
new Rule 2232—NYSE Amex Equities,
be effective on the same date as FINRA
makes FINRA Rule 2232 effective.10
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act 11
in general, and furthers the objectives of
7 See Securities Exchange Act Release No. 63150
(October 21, 2010), 75 FR 66173 (October 27, 2010)
(SR–FINRA–2009–058). See also Securities
Exchange Act Release No. 63561(December 16,
2010), 75 FR 80556 (December 22, 2010) (SR–
FINRA–2010–066).
8 NYSE Rule 409(f) currently provides that
confirmation of all transactions in securities
admitted to dealings on the Exchange, sent by
members or member organizations to their
customers, shall clearly set forth with a suitable
legend the settlement date of each transaction.
9 Rule 409(f)—NYSE Amex Equities would be
marked as ‘‘Reserved’’ until such time as NYSE
Rule 409 is fully harmonized with FINRA rules.
The Exchange notes that FINRA has proposed a rule
change that would result in the deletion of the
remaining text of FINRA Incorporated NYSE Rule
409. See Securities Exchange Act Release No.
59921(May 14, 2009), 74 FR 23912 (May 21, 2009)
(SR–FINRA–2009–028).
10 See FINRA Regulatory Notice 10–62. The
implementation date is currently scheduled for June
17, 2011. NYSE also has submitted a companion
rule filing amending its rules in accordance with
FINRA’s rule changes. See SR–NYSE–2011–26.
11 15 U.S.C. 78f(b).
PO 00000
Frm 00140
Fmt 4703
Sfmt 4703
Section 6(b)(5),12 in particular, in that it
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system. Specifically, the Exchange
believes that the proposed rule change
supports the objectives of the Act by
providing greater harmonization
between NYSE Amex Rules and FINRA
Rules of similar purpose, resulting in
less burdensome and more efficient
regulatory compliance. To the extent the
Exchange 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 Amex Rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition 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
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 13 and Rule
19b–4(f)(6) thereunder.14 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, if
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) normally does not
become operative prior to 30 days after
12 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A)(iii).
14 17 CFR 240.19b–4(f)(6).
13 15
E:\FR\FM\07JYN1.SGM
07JYN1
Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Notices
the date of the filing.15 However,
pursuant to Rule 19b–4(f)(6)(iii), the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest.16 The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. In its filing, the Exchange notes
that the proposal to add new Rule
2232—NYSE Amex Equities is
substantially similar to the rule that the
Commission approved for FINRA,17 and
the proposal conforms the Exchange’s
Rules with those of FINRA, in
furtherance of the consolidation of the
member firm regulation functions of
NYSE Amex Equities, NYSE, and
FINRA. For this reason, the Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest, and designates the proposed
rule change to be operative upon filing
with the Commission.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–NYSEAMEX–2011–41 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–NYSEAMEX–2011–41. 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 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–
NYSEAMEX–2011–41 and should be
submitted on or before July 28, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–16931 Filed 7–6–11; 8:45 am]
16 17
sroberts on DSK5SPTVN1PROD with NOTICES
15 Id.
BILLING CODE 8011–01–P
CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires that a self-regulatory
organization 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. The Exchange has satisfied this
requirement.
17 See note 6, supra.
18 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Mar<15>2010
16:26 Jul 06, 2011
Jkt 223001
PO 00000
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64782; File No. SR–NYSE–
2011–26]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Deleting the
Text of NYSE Rule 409(f) and Adopting
the Text of FINRA Rule 2232 and
Deleting the Rule Interpretations to
NYSE Rule 346
June 30, 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 June 17,
2011, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been substantially prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes (1) To delete
the text of NYSE Rule 409(f) and adopt
the text of FINRA Rule 2232 and (2)
delete the Rule Interpretations to NYSE
Rule 346. The text of the proposed rule
change is available at the Exchange, the
Commission’s Public Reference Room,
and https://www.nyse.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a et seq.
3 17 CFR 240.19b–4.
2 15
19 17
CFR 200.30–3(a)(12).
Frm 00141
Fmt 4703
Sfmt 4703
39951
E:\FR\FM\07JYN1.SGM
07JYN1
Agencies
[Federal Register Volume 76, Number 130 (Thursday, July 7, 2011)]
[Notices]
[Pages 39949-39951]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16931]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64783; File No. SR-NYSEAMEX-2011-41]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Deleting the Text
of Rule 409(f)--NYSE Amex Equities and Adopting the Text of FINRA Rule
2232
June 30, 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 June 17, 2011, NYSE Amex LLC (the ``Exchange'' or ``NYSE
Amex'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been substantially prepared by the self-
regulatory organization. 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 et seq.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to delete the text of Rule 409(f)--NYSE Amex
Equities and adopt the text of FINRA Rule 2232. The text of the
proposed rule change is available at the Exchange, the Commission's
Public Reference Room, and https://www.nyse.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
[[Page 39950]]
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to delete the text of Rule 409(f)--NYSE Amex
Equities and adopt the text of FINRA Rule 2232.
Background
On July 30, 2007, FINRA's predecessor, the National Association of
Securities Dealers, Inc. (``NASD''), and NYSE Regulation, Inc.
(``NYSER'') consolidated their member firm regulation operations into a
combined organization, FINRA.\4\ Pursuant to Rule 17d-2 under the Act,
New York Stock Exchange, LLC (``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 became a party to the
Agreement effective December 15, 2008.\5\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 62970 (Sept. 22,
2010), 75 FR 59771 (Sept. 28, 2010) (order approving SR-FINRA-2010-
37).
\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.
---------------------------------------------------------------------------
Rule 409(f)--NYSE Amex Equities and FINRA Rule 2232
In connection with the rule consolidation efforts between the
Exchange and FINRA, the Commission has recently approved FINRA Rule
2232,\7\ which is modeled after NYSE Rule 409(f), NASD Rule 2230 and
NASD IM-2110-6.\8\ FINRA Rule 2232 requires member firms, at or before
the completion of any transaction in any security effected for or with
an account of a customer, to give or send to such customer written
notification (``confirmation'') in conformity with the requirements of
Rule 10b-10 under the Act. A confirmation given or sent pursuant to
FINRA Rule 2232 must further disclose (1) with respect to any
transaction in any NMS stock, as defined in Rule 600 of SEC Regulation
NMS, or any security subject to the reporting requirements of the FINRA
Rule 6600 Series, other than direct participation programs as defined
in FINRA Rule 6420, the settlement date of the transaction; and (2)
with respect to any transaction in a callable equity security, that (A)
the security is a callable equity security and (B) a customer may
contact the member for more information concerning the security.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 63150 (October 21,
2010), 75 FR 66173 (October 27, 2010) (SR-FINRA-2009-058). See also
Securities Exchange Act Release No. 63561(December 16, 2010), 75 FR
80556 (December 22, 2010) (SR-FINRA-2010-066).
\8\ NYSE Rule 409(f) currently provides that confirmation of all
transactions in securities admitted to dealings on the Exchange,
sent by members or member organizations to their customers, shall
clearly set forth with a suitable legend the settlement date of each
transaction.
---------------------------------------------------------------------------
The Exchange proposes to delete the text of Rule 409(f)--NYSE Amex
Equities \9\ and adopt the text of FINRA Rule 2232 as Rule 2232--NYSE
Amex Equities, with certain technical changes. Specifically, for
consistency with Exchange rules, the Exchange proposes to change all
references to ``members'' to ``member organizations.'' The Exchange
proposes that these changes, including new Rule 2232--NYSE Amex
Equities, be effective on the same date as FINRA makes FINRA Rule 2232
effective.\10\
---------------------------------------------------------------------------
\9\ Rule 409(f)--NYSE Amex Equities would be marked as
``Reserved'' until such time as NYSE Rule 409 is fully harmonized
with FINRA rules. The Exchange notes that FINRA has proposed a rule
change that would result in the deletion of the remaining text of
FINRA Incorporated NYSE Rule 409. See Securities Exchange Act
Release No. 59921(May 14, 2009), 74 FR 23912 (May 21, 2009) (SR-
FINRA-2009-028).
\10\ See FINRA Regulatory Notice 10-62. The implementation date
is currently scheduled for June 17, 2011. NYSE also has submitted a
companion rule filing amending its rules in accordance with FINRA's
rule changes. See SR-NYSE-2011-26.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\11\ in general, and furthers the objectives of Section 6(b)(5),\12\ in
particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system. Specifically, the Exchange
believes that the proposed rule change supports the objectives of the
Act by providing greater harmonization between NYSE Amex Rules and
FINRA Rules of similar purpose, resulting in less burdensome and more
efficient regulatory compliance. To the extent the Exchange 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 Amex Rules.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition 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
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\
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, if 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.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after
[[Page 39951]]
the date of the filing.\15\ However, pursuant to Rule 19b-4(f)(6)(iii),
the Commission may designate a shorter time if such action is
consistent with the protection of investors and the public
interest.\16\ The Exchange has asked the Commission to waive the 30-day
operative delay so that the proposal may become operative immediately
upon filing. In its filing, the Exchange notes that the proposal to add
new Rule 2232--NYSE Amex Equities is substantially similar to the rule
that the Commission approved for FINRA,\17\ and the proposal conforms
the Exchange's Rules with those of FINRA, in furtherance of the
consolidation of the member firm regulation functions of NYSE Amex
Equities, NYSE, and FINRA. For this reason, the Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest, and designates the
proposed rule change to be operative upon filing with the
Commission.\18\
---------------------------------------------------------------------------
\15\ Id.
\16\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization 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. The Exchange has satisfied this requirement.
\17\ See note 6, supra.
\18\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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-NYSEAMEX-2011-41 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-NYSEAMEX-2011-41. 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 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-NYSEAMEX-2011-41 and should be submitted
on or before July 28, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------
\19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-16931 Filed 7-6-11; 8:45 am]
BILLING CODE 8011-01-P