Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Conforming Certain of Its Financial Responsibility and Related Operational Rules to a Recently-Approved Financial Industry Regulatory Authority Rule Change, 43357-43359 [2011-18194]
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Federal Register / Vol. 76, No. 139 / Wednesday, July 20, 2011 / Notices
FOR FURTHER INFORMATION CONTACT:
Mekonen Bayssie, U.S. Nuclear
Regulatory Commission, Washington,
DC 20555–0001; telephone: 301–251–
7489; e-mail: Mekonen.Bayssie@nrc.gov.
SUPPLEMENTARY INFORMATION: The NRC
is issuing for public comment a draft
guide in the NRC’s ‘‘Regulatory Guide’’
series. This series was developed to
describe and make available to the
public such information as methods that
are acceptable to the NRC staff for
implementing specific parts of the
NRC’s regulations, techniques that the
staff uses in evaluating specific
problems or postulated accidents, and
data that the staff needs in its review of
applications for permits and licenses.
The draft regulatory guide is
temporarily identified by its task
number, DG–1270, which should be
mentioned in all related
correspondence. The DG–1270 is
proposed Revision 2 of Regulatory
Guide 1.91, dated February 1978.
This guide describes for applicants
and licensees of nuclear power reactors
some methods and assumptions the
NRC’s staff finds acceptable for
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calculation of blast load effects.
Dated at Rockville, Maryland, this 13th day
of July 2011.
For the Nuclear Regulatory Commission.
Thomas H. Boyce,
Chief, Regulatory Guide Development Branch,
Division of Engineering, Office of Nuclear
Regulatory Research.
[FR Doc. 2011–18270 Filed 7–19–11; 8:45 am]
BILLING CODE 7590–01–P
sroberts on DSK5SPTVN1PROD with NOTICES
[Release No. 34–64887; File No. SR–
NYSEAMEX–2011–51]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Conforming Certain of Its
Financial Responsibility and Related
Operational Rules to a RecentlyApproved Financial Industry
Regulatory Authority Rule Change
July 14, 2011.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to conform
certain of its financial responsibility and
related operational Rules to a recentlyapproved Financial Industry Regulatory
Authority (‘‘FINRA’’) rule change.4 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 conform
certain of its financial responsibility and
related operational Rules to a recentlyapproved FINRA rule change.
SECURITIES AND EXCHANGE
COMMISSION
1 15
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on July 13,
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 prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
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
U.S.C. 78a.
CFR 240.19b–4.
4 See Securities Exchange Act Release No. 63375
(November 24, 2010), 75 FR 74759 (December 1,
2010) (Notice of filing of SR–FINRA–2010–061). See
also Securities Exchange Act Release No. 63999
(March 1, 2011), 76 FR 12380 (March 7, 2011)
(Notice of filing of amendment number 1 and order
granting accelerated approval of SR–FINRA–2010–
061).
PO 00000
2 15
3 17
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Fmt 4703
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43357
regulation operations into a combined
organization, FINRA. Pursuant to Rule
17d–2 under the Securities Exchange
Act of 1934, as amended (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
In connection with the rule
consolidation efforts between the
Exchange and FINRA, FINRA recently
received approval for the adoption of
certain financial responsibility and
related operational rules in the
consolidated FINRA Rules, including
Rules 4150 (Guarantees by, or Flow
Through Benefits for, Members), 4311
(Carrying Agreements), 4522 (Periodic
Security Counts, Verifications and
Comparisons) and 4523 (Assignment of
Responsibility for General Ledger
Accounts and Identification of Suspense
Accounts) and for the deletion of NASD
Rule 3230, FINRA Incorporated NYSE
Rules 322, 382, 440.10 and 440.20 and
FINRA Incorporated NYSE Rule
Interpretations 382/01 through 382/05,
409(a)/01 and 440.20/01.7
The Exchange proposes to adopt the
FINRA rule changes within its own
Rules as follows. First, the Exchange
proposes to delete the text of NYSE
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 supra note 4.
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Federal Register / Vol. 76, No. 139 / Wednesday, July 20, 2011 / Notices
Amex Equities Rules 322, 382 and
Supplementary Material .10 and .20 to
Rule 440.
Second, the Exchange proposes to
adopt the text of FINRA Rules 4150,
4311, 4522 and 4523 as NYSE Amex
Equities Rules 4150, 4311, 4522 and
4523, with certain technical changes.
Specifically, for consistency with
Exchange rules, the Exchange proposes
to change all references to ‘‘members’’ to
‘‘member organizations.’’
Third, the Exchange proposes certain
technical changes to delete crossreferences to the NYSE Amex Equities
Rules that are proposed to be deleted, as
identified above, which will no longer
be applicable or, in certain
circumstances, replace them with crossreferences to the newly proposed NYSE
Amex Equities Rules, where applicable.
The technical changes are proposed
within NYSE Amex Equities Rules 405,
409 and 416.
The Exchange proposes that these
changes be effective on the same date as
FINRA makes FINRA Rules 4150, 4311,
4522 and 4523 effective.8
2. Statutory Basis
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The proposed rule change is
consistent with Section 6(b) of the Act,9
in general, and furthers the objectives of
Section 6(b)(5),10 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 Equities 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 Equities Rules.
8 See FINRA Regulatory Notice 11–26. The
implementation date is currently scheduled for
August 1, 2011. NYSE Amex has also submitted a
companion rule filing amending its rules in
accordance with FINRA’s rule changes. See SR–
NYSE–2011–33.
9 15 U.S.C. 78f(b).
10 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
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 11 and Rule
19b–4(f)(6) thereunder.12 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, 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) 13 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),14 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The
Commission hereby grants that request.
The proposed rule change provides
greater harmonization between NYSE
Amex Rules and FINRA Rules of similar
purpose. The Commission believes that
such harmonization increases regulatory
compliance while reducing the burden
of such compliance. Waiving the 30-day
operative delay will enable this change
to be implemented immediately so that
the benefits associated with regulatory
harmonization may be realized
promptly. Therefore, the Commission
believes it is consistent with the
protection of investors and public
PO 00000
11 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
12 17
Frm 00106
Fmt 4703
Sfmt 4703
interest to waive the 30-day operative
delay and designate the proposal as
operative upon filing.15
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–2011–51 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–2011–51. 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 on official business
days between the hours of 10 a.m. and
3 p.m. Copies of such filings also will
be available for inspection and copying
15 For purposes only of waiving the operative
delay for this proposal, 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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Federal Register / Vol. 76, No. 139 / Wednesday, July 20, 2011 / Notices
at the principal office of the Exchange.
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–2011–51 and
should be submitted on or before
August 10, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–18194 Filed 7–19–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64893; File No. SR–CBOE–
2011–068]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend Credit Option
Margin Pilot Program to January 17,
2012
July 14, 2011.
sroberts on DSK5SPTVN1PROD with NOTICES
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 July 13,
2011, Chicago Board Options Exchange,
Incorporated (‘‘CBOE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 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
CBOE proposes to extend its Credit
Option Pilot Program through January
17, 2012. The text of the rule proposal
is available on the Exchange’s Web site
(https://www.cboe.org/legal), at the
Exchange’s Office of the Secretary, and
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
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18:29 Jul 19, 2011
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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, 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
On February 2, 2011, the Commission
approved the Exchange’s proposal to
establish a Credit Option Margin Pilot
Program (‘‘Program’’).5 The proposal
became effective on a pilot basis to run
on a parallel track with FINRA Rule
4240 that similarly operates on an
interim pilot basis and is currently
scheduled to expire on July 16, 2011.6
On July 11, 2011, FINRA submitted a
rule proposal to, among other things,
extend the pilot program for FINRA
Rule 4240 to January 17, 2012.7 Since
CBOE’s Program was approved on a
pilot basis to run on a parallel track
with FINRA Rule 4240, CBOE is now
currently proposing to similarly extend
the duration of the Program.
CBOE notes for the Commission that
there are currently Credit Options listed
for trading on the Exchange that have
open interest. As a result, CBOE
believes that is in the public interest for
the Program to continue uninterrupted.
In the future, if the Exchange
proposes an additional extension of the
Credit Option Margin Pilot Program or
5 See Securities Exchange Act Release No. 63819
(February 2, 2011), 76 FR 6838 (February 8, 2011)
(order approving [SR–CBOE–2010–106]). To
implement the Program, the Exchange amended
Rule 12.3(l), Margin Requirements, to make CBOE’s
margin requirements for Credit Options consistent
with FINRA Rule 4240, Margin Requirements for
Credit Default Swaps. CBOE’s Credit Options (i.e.,
Credit Default Options and Credit Default Basket
Options) are analogous to credit default swaps.
6 See Securities Exchange Act Release No. 63391
(November 30, 2010), 75 FR 75718 (December 10,
2010) (notice of filing for immediate effectiveness
extending FINRA Rule 4240 margin interim pilot
program to July 16, 2011).
7 See [SR–FINRA–2011–034]. In the filing, FINRA
proposes to make additional modifications to
FINRA Rule 4240, which are not the subject matter
of this filing.
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43359
proposes to make the Program
permanent, then the Exchange will
submit a filing proposing such
amendments to the Program.
2. Statutory Basis
The Exchange believes this rule
proposal is consistent with the Act and
the rules and regulations under the Act
applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.8
Specifically, the Exchange believes that
the proposed rule change is consistent
with the Section 6(b)(5) Act 9
requirements that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
prevent fraudulent and manipulative
acts and, in general, to protect investors
and the public interest, and because it
enhances fair competition among
exchange markets.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition 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
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 10 and Rule 19b–
4(f)(6) thereunder.11
CBOE has requested that the
Commission waive the five-day prefiling notice requirement specified in
Rule 19b–4(f)(6)(iii) under the Act,12
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires a 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
9 15
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]]>Agencies
[Federal Register Volume 76, Number 139 (Wednesday, July 20, 2011)]
[Notices]
[Pages 43357-43359]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18194]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64887; File No. SR-NYSEAMEX-2011-51]
Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Conforming Certain
of Its Financial Responsibility and Related Operational Rules to a
Recently-Approved Financial Industry Regulatory Authority Rule Change
July 14, 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 July 13, 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 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 conform certain of its financial
responsibility and related operational Rules to a recently-approved
Financial Industry Regulatory Authority (``FINRA'') rule change.\4\ The
text of the proposed rule change is available at the Exchange, the
Commission's Public Reference Room, and https://www.nyse.com.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 63375 (November 24,
2010), 75 FR 74759 (December 1, 2010) (Notice of filing of SR-FINRA-
2010-061). See also Securities Exchange Act Release No. 63999 (March
1, 2011), 76 FR 12380 (March 7, 2011) (Notice of filing of amendment
number 1 and order granting accelerated approval of SR-FINRA-2010-
061).
---------------------------------------------------------------------------
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 conform certain of its financial
responsibility and related operational Rules to a recently-approved
FINRA rule change.
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. Pursuant to Rule 17d-2 under the
Securities Exchange Act of 1934, as amended (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\
---------------------------------------------------------------------------
\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, FINRA recently received approval for the adoption
of certain financial responsibility and related operational rules in
the consolidated FINRA Rules, including Rules 4150 (Guarantees by, or
Flow Through Benefits for, Members), 4311 (Carrying Agreements), 4522
(Periodic Security Counts, Verifications and Comparisons) and 4523
(Assignment of Responsibility for General Ledger Accounts and
Identification of Suspense Accounts) and for the deletion of NASD Rule
3230, FINRA Incorporated NYSE Rules 322, 382, 440.10 and 440.20 and
FINRA Incorporated NYSE Rule Interpretations 382/01 through 382/05,
409(a)/01 and 440.20/01.\7\
---------------------------------------------------------------------------
\7\ See supra note 4.
---------------------------------------------------------------------------
The Exchange proposes to adopt the FINRA rule changes within its
own Rules as follows. First, the Exchange proposes to delete the text
of NYSE
[[Page 43358]]
Amex Equities Rules 322, 382 and Supplementary Material .10 and .20 to
Rule 440.
Second, the Exchange proposes to adopt the text of FINRA Rules
4150, 4311, 4522 and 4523 as NYSE Amex Equities Rules 4150, 4311, 4522
and 4523, with certain technical changes. Specifically, for consistency
with Exchange rules, the Exchange proposes to change all references to
``members'' to ``member organizations.''
Third, the Exchange proposes certain technical changes to delete
cross-references to the NYSE Amex Equities Rules that are proposed to
be deleted, as identified above, which will no longer be applicable or,
in certain circumstances, replace them with cross-references to the
newly proposed NYSE Amex Equities Rules, where applicable. The
technical changes are proposed within NYSE Amex Equities Rules 405, 409
and 416.
The Exchange proposes that these changes be effective on the same
date as FINRA makes FINRA Rules 4150, 4311, 4522 and 4523 effective.\8\
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\8\ See FINRA Regulatory Notice 11-26. The implementation date
is currently scheduled for August 1, 2011. NYSE Amex has also
submitted a companion rule filing amending its rules in accordance
with FINRA's rule changes. See SR-NYSE-2011-33.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\9\ in general, and furthers the objectives of Section 6(b)(5),\10\
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 Equities 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 Equities Rules.
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\9\ 15 U.S.C. 78f(b).
\10\ 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 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 \11\ and Rule 19b-4(f)(6) thereunder.\12\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, 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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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\14\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Commission hereby
grants that request. The proposed rule change provides greater
harmonization between NYSE Amex Rules and FINRA Rules of similar
purpose. The Commission believes that such harmonization increases
regulatory compliance while reducing the burden of such compliance.
Waiving the 30-day operative delay will enable this change to be
implemented immediately so that the benefits associated with regulatory
harmonization may be realized promptly. Therefore, the Commission
believes it is consistent with the protection of investors and public
interest to waive the 30-day operative delay and designate the proposal
as operative upon filing.\15\
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ For purposes only of waiving the operative delay for this
proposal, 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-2011-51 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-2011-51. 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 on
official business days between the hours of 10 a.m. and 3 p.m. Copies
of such filings also will be available for inspection and copying
[[Page 43359]]
at the principal office of the Exchange. 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-2011-51 and
should be submitted on or before August 10, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-18194 Filed 7-19-11; 8:45 am]
BILLING CODE 8011-01-P
