Self-Regulatory Organizations; New York Stock Exchange 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, 43366-43368 [2011-18195]
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43366
Federal Register / Vol. 76, No. 139 / Wednesday, July 20, 2011 / Notices
19(b)(3)(A)(i) of the Act.7 At any time
within 60 days of the filing of the
proposed rule change, the Commission
summarily may temporarily suspend
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act. If the Commission
takes such action, the Commission shall
institute proceedings to determine
whether the proposed rule should be
approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
sroberts on DSK5SPTVN1PROD with NOTICES
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–NASDAQ–2011–093 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–NASDAQ–2011–093. 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
also will be available for inspection and
7 15
U.S.C. 78s(b)(3)(a)(i).
VerDate Mar<15>2010
18:29 Jul 19, 2011
Jkt 223001
copying 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–
NASDAQ–2011–093 and should be
submitted on or before August 10, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–18219 Filed 7–19–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64888; File No. SR–NYSE–
2011–33]
Self-Regulatory Organizations; New
York Stock Exchange 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 July 13, 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 prepared by the self-regulatory
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 conform
certain of its financial responsibility and
related operational Rules to a recentlyapproved Financial Industry Regulatory
Authority (‘‘FINRA’’) rule change.4 The
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 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
PO 00000
8 17
1 15
Frm 00114
Fmt 4703
Sfmt 4703
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.
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 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 LLC (‘‘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
granting accelerated approval of SR–FINRA–2010–
061).
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.
E:\FR\FM\20JYN1.SGM
20JYN1
Federal Register / Vol. 76, No. 139 / Wednesday, July 20, 2011 / Notices
sroberts on DSK5SPTVN1PROD with NOTICES
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
Rules 322, 382, Supplementary Material
.10 and .20 to Rule 440 and Rule
Interpretations 382/01 through 382/05,
409(a)/01 and 440.20/01.
Second, the Exchange proposes to
adopt the text of FINRA Rules 4150,
4311, 4522 and 4523 as NYSE 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 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 Rules, where
applicable. The technical changes are
proposed within NYSE Rules 86, 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
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.
8 See FINRA Regulatory Notice 11–26. The
implementation date is currently scheduled for
VerDate Mar<15>2010
18:29 Jul 19, 2011
Jkt 223001
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 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.
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
August 1, 2011. NYSE Amex has also submitted a
companion rule filing amending its rules in
accordance with FINRA’s rule changes. See SR–
NYSEAmex–2011–51.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
11 15 U.S.C. 78s(b)(3)(A)(iii).
12 17 CFR 240.19b–4(f)(6).
PO 00000
Frm 00115
Fmt 4703
Sfmt 4703
43367
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
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 designates 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–NYSE–2011–33 on the
subject line.
13 17
CFR 240.19b–4(f)(6).
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).
14 17
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20JYN1
43368
Federal Register / Vol. 76, No. 139 / Wednesday, July 20, 2011 / Notices
Paper Comments
the State of Mississippi (FEMA–1983–
DR), dated 07/12/2011.
• Send paper comments in triplicate
Incident: Flooding.
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Incident Period: 05/03/2011 through
100 F Street, NE., Washington, DC
06/17/2011.
20549–1090.
Effective Date: 07/12/2011.
All submissions should refer to File
Physical Loan Application Deadline
Number SR–NYSE–2011–33. This file
Date: 09/12/2011.
number should be included on the
subject line if e-mail is used. To help the
Economic Injury (EIDL) Loan
Commission process and review your
Application Deadline Date: 04/12/2012.
comments more efficiently, please use
only one method. The Commission will ADDRESSES: Submit completed loan
post all comments on the Commission’s applications to: U.S. Small Business
Administration, Processing and
Internet Web site (https://www.sec.gov/
Disbursement Center, 14925 Kingsport
rules/sro.shtml). Copies of the
Road, Fort Worth, TX 76155.
submission, all subsequent
amendments, all written statements
FOR FURTHER INFORMATION CONTACT: A.
with respect to the proposed rule
Escobar, Office of Disaster Assistance,
change that are filed with the
U.S. Small Business Administration,
Commission, and all written
409 3rd Street, SW., Suite 6050,
communications relating to the
Washington, DC 20416.
proposed rule change between the
Commission and any person, other than SUPPLEMENTARY INFORMATION: Notice is
those that may be withheld from the
hereby given that as a result of the
public in accordance with the
President’s major disaster declaration on
provisions of 5 U.S.C. 552, will be
07/12/2011, Private Non-Profit
available for Web site viewing and
organizations that provide essential
printing in the Commission’s Public
services of governmental nature may file
Reference Room on official business
disaster loan applications at the address
days between the hours of 10 a.m. and
listed above or other locally announced
3 p.m. Copies of such filing also will be
locations.
available for inspection and copying at
The following areas have been
the principal office of the Exchange. All
determined to be adversely affected by
comments received will be posted
the disaster:
without change; the Commission does
not edit personal identifying
Primary Counties: Adams, Bolivar,
information from submissions. You
Claiborne, Coahoma, Humphreys,
should submit only information that
Issaquena, Jefferson, Sharkey,
you wish to make available publicly.
Tunica, Warren, Washington,
All submissions should refer to File
Wilkinson, Yazoo.
Number SR–NYSE–2011–33 and should
The Interest Rates are:
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. 2011–18195 Filed 7–19–11; 8:45 am]
BILLING CODE 8011–01–P
For Physical Damage:
Non-Profit Organizations with
Credit Available Elsewhere .....
Non-Profit Organizations without
Credit Available Elsewhere .........
For Economic Injury:
Non-Profit Organizations without
Credit Available Elsewhere .....
Mississippi Disaster #MS–00049
3.000
U.S. Small Business
Administration.
ACTION: Notice.
sroberts on DSK5SPTVN1PROD with NOTICES
This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
SUMMARY:
16 17
The number assigned to this disaster
for physical damage is 126876 and for
economic injury is 126886.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
AGENCY:
James E. Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2011–18256 Filed 7–19–11; 8:45 am]
BILLING CODE 8025–01–P
18:29 Jul 19, 2011
Jkt 223001
PO 00000
Frm 00116
Fmt 4703
North Dakota Disaster Number ND–
00024
U.S. Small Business
Administration.
ACTION: Amendment 2.
AGENCY:
SUMMARY:
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
James E. Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2011–18258 Filed 7–19–11; 8:45 am]
BILLING CODE 8025–01–P
SOCIAL SECURITY ADMINISTRATION
Agency Information Collection
Activities: Comment Request
The Social Security Administration
(SSA) publishes a list of information
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
[Disaster Declaration #12653 and #12654]
This is an amendment of the
Presidential declaration of a major
disaster for the State of North Dakota
(FEMA–1981–DR), dated 06/24/2011.
Incident: Flooding.
Incident Period: 02/14/2011 and
continuing.
Effective Date: 07/13/2011.
Physical Loan Application Deadline
Date: 08/23/2011.
EIDL Loan Application Deadline Date:
03/21/2012.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: The notice
of the Presidential disaster declaration
for the State of North Dakota, dated
06/24/2011 is hereby amended to
include the following areas as adversely
affected by the disaster:
Primary Counties: (Physical Damage and
Economic Injury Loans): Barnes,
Ramsey, Richland, and the Spirit Lake
Nation.
Contiguous Counties: (Economic Injury
Loans Only):
North Dakota: Benson, Cass, Cavalier,
Percent
Griggs, Lamoure, Nelson, Ransom,
Sargent, Steele, Stutsman, Towner,
Walsh.
Minnesota: Clay, Traverse, Wilkin.
3.250
South Dakota: Marshall, Roberts.
All other information in the original
3.000
declaration remains unchanged.
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #12687 and #12688]
SMALL BUSINESS ADMINISTRATION
Sfmt 4703
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20JYN1
]]>Agencies
[Federal Register Volume 76, Number 139 (Wednesday, July 20, 2011)]
[Notices]
[Pages 43366-43368]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18195]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64888; File No. SR-NYSE-2011-33]
Self-Regulatory Organizations; New York Stock Exchange 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 July 13, 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 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 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 LLC
(``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
[[Page 43367]]
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 Rules 322, 382, Supplementary Material .10 and .20 to Rule 440
and Rule Interpretations 382/01 through 382/05, 409(a)/01 and 440.20/
01.
Second, the Exchange proposes to adopt the text of FINRA Rules
4150, 4311, 4522 and 4523 as NYSE 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 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 Rules, where applicable. The technical changes are proposed within
NYSE Rules 86, 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\
---------------------------------------------------------------------------
\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-NYSEAmex-2011-51.
---------------------------------------------------------------------------
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 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.
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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 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 designates 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-NYSE-2011-33 on the subject line.
[[Page 43368]]
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-2011-33. 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 filing also
will be available for inspection and copying 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-NYSE-2011-33 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. 2011-18195 Filed 7-19-11; 8:45 am]
BILLING CODE 8011-01-P
