Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Deleting NYSE Amex Equities Rule 351(a)-(d) and Supplementary Material .10 and .13, Adopting the Text of FINRA Rule 4530, and Making Certain Conforming Changes, 39947-39949 [2011-16932]
Download as PDF
Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Notices
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Act,10 in general, and furthers the
objectives of Section 6(b)(5),11 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 changes support the
objectives of the Act by providing
greater harmonization between NYSE
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 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.
sroberts on DSK5SPTVN1PROD with NOTICES
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)
10 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
12 15 U.S.C. 78s(b)(3)(A)(iii).
13 17 CFR 240.19b–4(f)(6).
11 15
VerDate Mar<15>2010
16:26 Jul 06, 2011
Jkt 223001
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 19b–4(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.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2011–27 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2011–27. 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
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).
Frm 00137
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 20549–1090. Copies of
the filing will also be available for
inspection and copying at the NYSE’s
principal office and on its Internet Web
site at https://www.nyse.com. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSE–2011–27 and should
be submitted on or before July 28, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–16933 Filed 7–6–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64784; File No. SR–
NYSEAMEX–2011–42]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Deleting NYSE Amex
Equities Rule 351(a)–(d) and
Supplementary Material .10 and .13,
Adopting the Text of FINRA Rule 4530,
and Making Certain Conforming
Changes
June 30, 2011.
14 Id.
PO 00000
39947
Fmt 4703
Sfmt 4703
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 20,
2011, NYSE Amex LLC (the ‘‘Exchange’’
or ‘‘NYSE Amex’’) filed with the
Securities and Exchange Commission
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\07JYN1.SGM
07JYN1
39948
Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Notices
(the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III 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 to delete
NYSE Amex Equities Rule 351(a)–(d)
and Supplementary Material .10 and
.13, adopt the text of FINRA Rule 4530,
and make certain conforming changes.
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
sroberts on DSK5SPTVN1PROD with NOTICES
1. Purpose
The Exchange proposes to delete
NYSE Amex Equities Rule 351(a)–(d)
and Supplementary Material .10 and
.13, adopt the text of FINRA Rule 4530,
and make certain conforming changes.
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, 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
4 See Securities Exchange Act Release No. 62970
(Sept. 22, 2010), 75 FR 59771 (Sept. 28, 2010) (order
approving SR–FINRA–2010–37).
VerDate Mar<15>2010
16:26 Jul 06, 2011
Jkt 223001
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
In connection with the rule
consolidation efforts between the
Exchange and FINRA, the Commission
has recently approved FINRA Rule
4530,7 which is modeled after NYSE
Rule 351(a)–(d) and NASD Rule 3070.8
FINRA Rule 4530 requires member
firms to: (1) Report to FINRA certain
specified events and quarterly statistical
and summary information regarding
written customer complaints; and (2)
file with FINRA copies of certain
criminal actions, civil complaints and
arbitration claims. FINRA uses the
information for regulatory purposes to
identify and initiate investigations of
firms, offices and associated persons
that may pose a risk. In most cases, the
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.
7 See Securities Exchange Act Release No. 63260
(November 5, 2010), 75 FR 69508 (November 12,
2010) (SR–FINRA–2010–034). See also Securities
Exchange Act Release No. 64560 (May 27, 2011), 76
FR 32246 (June 3, 2011) (SR–FINRA–2011–024).
8 NYSE Amex Equities Rule 351(e) and NYSE
Amex Equities Rule Interpretation 351(e)/01
(Reports of Investigation) govern trade investigation
reporting requirements. NYSE Amex Equities Rules
351(f), 351.11 and 351.12 govern the annual
attestation requirement of the research analyst
conflict of interest rules. These provisions will be
addressed as part of the supervision rules and
research analyst conflict of interest rules,
respectively. See Regulatory Notice 08–24
(Proposed Consolidated FINRA Rules Governing
Supervision and Supervisory Controls) and
Regulatory Notice 08–55 (FINRA Requests
Comment on Proposed Research Registration and
Conflict of Interest Rules). NYSE Amex Equities
Rules 351(a)–(d) would be marked as ‘‘Reserved’’
until such time as NYSE Amex Equities Rule 351
is fully harmonized with FINRA rules.
PO 00000
Frm 00138
Fmt 4703
Sfmt 4703
requirements of FINRA Rule 4530 are
based on similar requirements in the
NASD, NYSE and NYSE Amex rules.
Proposed Rule Change
The Exchange proposes to adopt the
text of FINRA Rule 4530 as NYSE Amex
Equities Rule 4530, with certain
technical changes. For consistency with
Exchange rules, the Exchange proposes
to change all references to ‘‘members’’ to
‘‘member organizations’’ and add a
definition of ‘‘person associated with a
member organization.’’ The Exchange
proposes to delete NYSE Amex Equities
Rule 351(a)–(d) and Supplementary
Material .10 and .13 and make
conforming amendments in NYSE Amex
Equities Rules 342, 401A, and 476A,
which contain references to NYSE
Amex Equities Rule 351, and delete an
unnecessary cross-reference in NYSE
Amex Equities Rule 311. The Exchange
proposes to make NYSE Amex Equities
Rule 4530 effective on the same date as
FINRA makes FINRA Rule 4530
effective.9
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Act,10 in general, and furthers the
objectives of Section 6(b)(5),11 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 changes support 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
9 See FINRA Regulatory Notice 11–06. The
implementation date is currently scheduled for July
1, 2011. NYSE also has submitted a companion rule
filing amending its rules in accordance with
FINRA’s rule changes. See SR–NYSE–2010–27.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
E:\FR\FM\07JYN1.SGM
07JYN1
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
Agencies
[Federal Register Volume 76, Number 130 (Thursday, July 7, 2011)]
[Notices]
[Pages 39947-39949]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16932]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64784; File No. SR-NYSEAMEX-2011-42]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Deleting NYSE Amex
Equities Rule 351(a)-(d) and Supplementary Material .10 and .13,
Adopting the Text of FINRA Rule 4530, and Making Certain Conforming
Changes
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 20, 2011, NYSE Amex LLC (the ``Exchange'' or ``NYSE
Amex'') filed with the Securities and Exchange Commission
[[Page 39948]]
(the ``Commission'') the proposed rule change as described in Items I,
II, and III 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.
\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 NYSE Amex Equities Rule 351(a)-(d)
and Supplementary Material .10 and .13, adopt the text of FINRA Rule
4530, and make certain conforming changes. 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.
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 NYSE Amex Equities Rule 351(a)-(d)
and Supplementary Material .10 and .13, adopt the text of FINRA Rule
4530, and make certain conforming changes.
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,
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.
---------------------------------------------------------------------------
In connection with the rule consolidation efforts between the
Exchange and FINRA, the Commission has recently approved FINRA Rule
4530,\7\ which is modeled after NYSE Rule 351(a)-(d) and NASD Rule
3070.\8\ FINRA Rule 4530 requires member firms to: (1) Report to FINRA
certain specified events and quarterly statistical and summary
information regarding written customer complaints; and (2) file with
FINRA copies of certain criminal actions, civil complaints and
arbitration claims. FINRA uses the information for regulatory purposes
to identify and initiate investigations of firms, offices and
associated persons that may pose a risk. In most cases, the
requirements of FINRA Rule 4530 are based on similar requirements in
the NASD, NYSE and NYSE Amex rules.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 63260 (November 5,
2010), 75 FR 69508 (November 12, 2010) (SR-FINRA-2010-034). See also
Securities Exchange Act Release No. 64560 (May 27, 2011), 76 FR
32246 (June 3, 2011) (SR-FINRA-2011-024).
\8\ NYSE Amex Equities Rule 351(e) and NYSE Amex Equities Rule
Interpretation 351(e)/01 (Reports of Investigation) govern trade
investigation reporting requirements. NYSE Amex Equities Rules
351(f), 351.11 and 351.12 govern the annual attestation requirement
of the research analyst conflict of interest rules. These provisions
will be addressed as part of the supervision rules and research
analyst conflict of interest rules, respectively. See Regulatory
Notice 08-24 (Proposed Consolidated FINRA Rules Governing
Supervision and Supervisory Controls) and Regulatory Notice 08-55
(FINRA Requests Comment on Proposed Research Registration and
Conflict of Interest Rules). NYSE Amex Equities Rules 351(a)-(d)
would be marked as ``Reserved'' until such time as NYSE Amex
Equities Rule 351 is fully harmonized with FINRA rules.
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Proposed Rule Change
The Exchange proposes to adopt the text of FINRA Rule 4530 as NYSE
Amex Equities Rule 4530, with certain technical changes. For
consistency with Exchange rules, the Exchange proposes to change all
references to ``members'' to ``member organizations'' and add a
definition of ``person associated with a member organization.'' The
Exchange proposes to delete NYSE Amex Equities Rule 351(a)-(d) and
Supplementary Material .10 and .13 and make conforming amendments in
NYSE Amex Equities Rules 342, 401A, and 476A, which contain references
to NYSE Amex Equities Rule 351, and delete an unnecessary cross-
reference in NYSE Amex Equities Rule 311. The Exchange proposes to make
NYSE Amex Equities Rule 4530 effective on the same date as FINRA makes
FINRA Rule 4530 effective.\9\
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\9\ See FINRA Regulatory Notice 11-06. The implementation date
is currently scheduled for July 1, 2011. NYSE also has submitted a
companion rule filing amending its rules in accordance with FINRA's
rule changes. See SR-NYSE-2010-27.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\10\ in general, and furthers the objectives of Section
6(b)(5),\11\ 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 changes support 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.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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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
[[Page 39949]]
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.
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
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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\
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\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).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-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.
All submissions should refer to File Number SR-NYSEAMEX-2011-42. 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 20549-1090. Copies of the filing will also
be available for inspection and copying at the NYSE's principal office
and on its Internet Web site at https://www.nyse.com. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEAMEX-2011-42 and should
be submitted on or before July 28, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-16932 Filed 7-6-11; 8:45 am]
BILLING CODE 8011-01-P