Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Amend the Supplementary Material to FINRA Rule 1230(b)(6) (Operations Professional), 52040-52042 [2011-21176]
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52040
Federal Register / Vol. 76, No. 161 / Friday, August 19, 2011 / Notices
jlentini on DSK4TPTVN1PROD with NOTICES
securities, thus rendering trading in the
Shares subject to the Exchange’s
existing rules governing the trading of
equity securities. In support of this
proposal, the Exchange has made
representations, including:
(1) The Funds will be subject to the
criteria in NYSE Arca Equities Rule
8.200 and Commentary .02 thereto for
initial and continued listing of the
Shares.
(2) The Exchange has appropriate
rules to facilitate transactions in the
Shares during all trading sessions.
(3) The Exchange’s surveillance
procedures are adequate to properly
monitor Exchange trading of the Shares
in all trading sessions and to deter and
detect violations of Exchange rules and
applicable federal securities laws.
(4) Prior to the commencement of
trading, the Exchange will inform its
ETP Holders of the suitability
requirements of NYSE Arca Equities
Rule 9.2(a) in an Information Bulletin.
Specifically, ETP Holders will be
reminded in the Information Bulletin
that, in recommending transactions in
the Shares, they must have a reasonable
basis to believe that (a) the
recommendation is suitable for a
customer given reasonable inquiry
concerning the customer’s investment
objectives, financial situation, needs,
and any other information known by
such member, and (b) the customer can
evaluate the special characteristics, and
is able to bear the financial risks, of an
investment in the Shares. In connection
with the suitability obligation, the
Information Bulletin will also provide
that members must make reasonable
efforts to obtain the following
information: (i) The customer’s financial
status; (ii) the customer’s tax status; (iii)
the customer’s investment objectives;
and (iv) such other information used or
considered to be reasonable by such
member or registered representative in
making recommendations to the
customer.21 Further, the Exchange’s
Information Bulletin regarding the
Funds will provide information
regarding the suitability of an
investment in the Shares, as stated in
the Registration Statements.
(5) With respect to the Funds’ futures
contracts traded on exchanges, not more
than 10% of the weight of such futures
21 FINRA has implemented increased sales
practice and customer margin requirements for
FINRA members applicable to leveraged ETFs
(which include the Shares) and options on
leveraged ETFs, as described in FINRA Regulatory
Notices 09–31 (June 2009), 09–53 (August 2009)
and 09–65 (November 2009) (‘‘FINRA Regulatory
Notices’’). The Exchange represents that ETP
Holders that carry customer accounts will be
required to follow the FINRA guidance set forth in
these notices.
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18:32 Aug 18, 2011
Jkt 223001
contracts in the aggregate shall consist
of components whose principal trading
market is not a member of the
Intermarket Surveillance Group or is a
market with which the Exchange does
not have a comprehensive surveillance
sharing agreement.
(6) Prior to the commencement of
trading, the Exchange will inform its
ETP Holders in an Information Bulletin
of the special characteristics and risks
associated with trading the Shares.
Specifically, the Information Bulletin
will discuss the following: (a) The risks
involved in trading the Shares during
the Opening and Late Trading Sessions
when an updated IFV will not be
calculated or publicly disseminated; (b)
the procedures for purchases and
redemptions of Shares in creation
baskets and redemption baskets (and
that Shares are not individually
redeemable); (c) NYSE Arca Equities
Rule 9.2(a), which imposes a duty of
due diligence on its ETP Holders to
learn the essential facts relating to every
customer prior to trading the Shares; (d)
how information regarding the IFV is
disseminated; (e) a static IFV will be
disseminated between the close of
trading of Natural Gas Futures Contracts
on NYMEX and the close of the NYSE
Arca Core Trading Session; (f) the
requirement that ETP Holders deliver a
prospectus to investors purchasing
newly issued Shares prior to or
concurrently with the confirmation of a
transaction; and (g) trading information.
In addition, the Information Bulletin
will reference the FINRA Regulatory
Notices regarding sales practice and
customer margin requirements for
FINRA members applicable to leveraged
products.
(7) A minimum of 100,000 Shares will
be outstanding as of the start of trading
on the Exchange.
(8) For the initial and continued
listing of the Shares, the Funds will be
in compliance with NYSE Arca Equities
Rule 5.3 and Rule 10A–3 under the Act.
This approval order is based on the
Exchange’s representations.22
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act 23 and the rules and
22 The Commission notes that it does not regulate
the market for futures in which the Fund plans to
take positions, which is the responsibility of the
Commodity Futures Trading Commission (‘‘CFTC’’).
The CFTC has the authority to set limits on the
positions that any person may take in futures. These
limits may be directly set by the CFTC or by the
markets on which the futures are traded. The
Commission has no role in establishing position
limits on futures, even though such limits could
impact an exchange-traded product that is under
the jurisdiction of the Commission.
23 15 U.S.C. 78f(b)(5).
PO 00000
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Fmt 4703
Sfmt 4703
regulations thereunder applicable to a
national securities exchange.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,24 that the
proposed rule change (SR–NYSEArca–
2011–24) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.25
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–21175 Filed 8–18–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65137; File No. SR–FINRA–
2011–040]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Order Granting Accelerated Approval
of Proposed Rule Change To Amend
the Supplementary Material to FINRA
Rule 1230(b)(6) (Operations
Professional)
August 15, 2011.
On August 12, 2011, Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) filed with the Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been
substantially prepared by FINRA. The
Commission is publishing this notice
and order to solicit comment on the
proposed rule change and approve the
proposed rule change on an accelerated
basis.
I. Description of Proposed Rule Change
FINRA is proposing to amend the
supplementary material to FINRA Rule
1230(b)(6) (Operations Professional),
FINRA Rule 1230.06 (Scope of
Operations Professional Requirement),
to clarify the application of the
Operations Professional requirements to
employees of a foreign broker-dealer
whose activities, relating to certain
transactions in foreign securities on
behalf of a member’s customers, as
further detailed herein, are limited to
facilitating the clearance and settlement
of such transactions.
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
24 15
25 17
E:\FR\FM\19AUN1.SGM
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
19AUN1
Federal Register / Vol. 76, No. 161 / Friday, August 19, 2011 / Notices
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. FINRA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
jlentini on DSK4TPTVN1PROD with NOTICES
1. Purpose
On June 16, 2011, the Commission
approved SR–FINRA–2011–013, which
adopted FINRA Rule 1230(b)(6)
(Operations Professional), and its
accompanying supplementary material
in FINRA Rule 1230.06 (Scope of
Operations Professional Requirement),
to establish a registration category and
qualification examination requirement
for certain operations personnel
(Operations Professionals).1 FINRA Rule
1230(b)(6), and its accompanying
supplementary material in FINRA Rule
1230.06, takes effect on October 17,
2011.2
Questions have been raised regarding
the application of the Operations
Professional requirements to employees
of a foreign broker-dealer whose
activities, relating to certain transactions
in foreign securities on behalf of a
member’s customers, are limited to
facilitating the clearance and settlement
of such transactions. These
arrangements between the member and
the foreign broker-dealer involve
transactions in foreign securities to be
executed by the foreign broker-dealer on
the foreign market, where the foreign
broker-dealer accepts the member’s
customer’s instructions to settle the
transactions on a DVP/RVP basis
through the foreign clearing system and
settle directly with the customer’s
custodian.
To provide clarification with respect
to the application of FINRA Rule
1 See Securities Exchange Act Release No. 64687
(June 16, 2011), 76 FR 36586 (June 22, 2011) (Order
Approving Proposed Rule Change; File No. SR–
FINRA–2011–013). This rule change also
established continuing education requirements for
Operations Professionals and adopted NASD Rule
1120 (Continuing Education Requirements) as
FINRA Rule 1250 (Continuing Education
Requirements) in the consolidated FINRA rulebook
with certain changes.
2 See Regulatory Notice 11–33 (July 2011).
VerDate Mar<15>2010
18:32 Aug 18, 2011
Jkt 223001
1230(b)(6) to such arrangements, the
proposed rule change would amend
supplementary material .06 to FINRA
Rule 1230(b)(6) to provide that an
employee of a foreign broker-dealer
whose activities, relating to a
transaction in foreign securities on
behalf of a customer of a member, are
limited to facilitating the clearance and
settlement of the transaction shall not be
required to register as an Operations
Professional pursuant to FINRA Rule
1230(b)(6)(A) where: (1) The member
sending the order for a transaction in
foreign securities on behalf of the
customer to the foreign broker-dealer is
not a direct participant of the applicable
foreign clearing system; and (2) in
executing such order in the foreign
market, the foreign broker-dealer
accepts the member’s customer’s
instructions to settle the transaction in
foreign securities on a DVP/RVP basis
through the foreign clearing system and
settle directly with a custodian for the
customer.3
The effective date of the proposed
rule change will be October 17, 2011,
the effective date of FINRA Rule
1230(b)(6) (Operations Professional) and
its accompanying supplementary
material in FINRA Rule 1230.06 (Scope
of Operations Professional
Requirement).
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,4 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. FINRA believes the
proposed rule change would provide
clarification in response to questions
raised regarding the application of the
Operations Professional requirements to
employees of a foreign broker-dealer
facilitating the clearance and settlement
of certain transactions in foreign
securities on behalf of a member’s
customers pursuant to the arrangements
described above.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
3 We are approving this rule change as it
addresses the application of FINRA Rule 1230(b)(6)
to the fact pattern described above. No statement in
the proposed rule or this order otherwise affects the
Commission’s interpretation of any provision of the
Securities Exchange Act of 1934, or any rule
thereunder, including Rule 15c3–3 (17 CFR
240.15c3–3).
4 15 U.S.C. 78o–3(b)(6).
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Frm 00110
Fmt 4703
Sfmt 4703
52041
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Commission’s Findings
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to FINRA and, in particular,
the requirements of Section 15A of the
Act 5 and the rules and regulations
thereunder.
FINRA has requested that the
Commission find good cause pursuant
to Section 19(b)(2) of the Act 6 for
approving the proposed rule change
prior to the 30th day after publication in
the Federal Register. The Commission
finds good cause, pursuant to Section
19(b)(2), for approving the proposed
rule change prior to the 30th day after
publication of notice of the filing in the
Federal Register. The proposed rule
change is intended to clarify the scope
of application of FINRA’s Rule
1230(b)(6), which rule comes into effect
on October 17, 2011.7 By accelerating
the approval of the proposed rule, and
allowing it to become effective on
October 17, 2011, the Commission can
eliminate uncertainty about the rule’s
applicability to the persons who are the
subject of this interpretation, improve
the ability of FINRA members to plan
accordingly for the upcoming
compliance date of Rule 1230(b)(6), and
avoid undue burdens associated with
preparing for the registration of persons
who will not be required to register
under this interpretation.8
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:
5 15
U.S.C. 78o–3.
U.S.C. 78s(b)(2).
7 See Regulatory Notice 11–33 (July 2011)
(Operations Professionals).
8 In approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
6 15
E:\FR\FM\19AUN1.SGM
19AUN1
52042
Federal Register / Vol. 76, No. 161 / Friday, August 19, 2011 / 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–FINRA–2011–040 on the
subject line.
Paper Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–21176 Filed 8–18–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
[Release No. 34–64892A; File No. SR–
FINRA–2011–034]
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of
FINRA. All comments received will be
posted without change; the Commission
does not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–FINRA–2011–040 and
should be submitted on or before
September 9, 2011.
‘‘V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,1 that the
proposed rule change (SR–FINRA–
2011–034), be, and hereby is, approved
on an accelerated basis.’’
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Order Granting Accelerated Approval
All submissions should refer to File
Number SR–FINRA–2011–040. This file of Proposed Rule Change To Amend
FINRA Rule 4240 (Margin
number should be included on the
subject line if e-mail is used. To help the Requirements for Credit Default
Swaps); Correction
Commission process and review your
comments more efficiently, please use
August 15, 2011.
only one method. The Commission will
FR Doc. No. 2011–18221, beginning
post all comments on the Commission’s on page 43360 for Wednesday, July 20,
2011, contained an error. Release No.
Internet website (https://www.sec.gov/
34–64892 (‘‘Release’’) approved a
rules/sro.shtml). Copies of the
proposed rule change on an accelerated
submission, all subsequent
basis filed by FINRA (File No. SR–
amendments, all written statements
FINRA–2011–034). Section V of the
with respect to the proposed rule
Release was inadvertently omitted.
change that are filed with the
Accordingly, the conclusion of the
Commission, and all written
Release is added to read as noted below.
communications relating to the
On page 43363, column 1, following
proposed rule change between the
Commission and any person, other than line 6, insert:
jlentini on DSK4TPTVN1PROD with NOTICES
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,9 that the
proposed rule change (SR–FINRA–
2011–040) is approved on an
accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.2
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–21190 Filed 8–18–11; 8:45 am]
By the Commission.
Elizabeth M. Murphy,
Secretary.
BILLING CODE 8011–01–P
[FR Doc. 2011–21336 Filed 8–17–11; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
SMALL BUSINESS ADMINISTRATION
[File No. 500–1]
[Disaster Declaration #12734 and #12735]
Auriga Laboratories, Inc., Curon
Medical, Inc., Goldstate Corp.,
OneWorld Systems, Inc., and
PracticeXpert, Inc.; Order of
Suspension of Trading
Iowa Disaster #IA–00035
August 17, 2011.
SUMMARY:
It appears to the Securities and
Exchange Commission that there is a
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(2).
2 17 CFR 200.30–3(a)(12).
1 15
9 15
U.S.C. 78s(b)(2).
VerDate Mar<15>2010
18:32 Aug 18, 2011
Jkt 223001
lack of current and accurate information
concerning the securities of Auriga
Laboratories, Inc. because it has not
filed any periodic reports since the
period ended March 31, 2008.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Curon
Medical, Inc. because it has not filed
any periodic reports since the period
ended June 30, 2006.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Goldstate
Corp. because it has not filed any
periodic reports since the period ended
March 31, 2002.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of OneWorld
Systems, Inc. because it has not filed
any periodic reports since the period
ended December 31, 1999.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of
PracticeXpert, Inc. because it has not
filed any periodic reports since the
period ended June 30, 2006.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
companies. Therefore, it is ordered,
pursuant to Section 12(k) of the
Securities Exchange Act of 1934, that
trading in the securities of the abovelisted companies is suspended for the
period from 9:30 a.m. EDT on August
17, 2011, through 11:59 p.m. EDT on
August 30, 2011.
PO 00000
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Fmt 4703
Sfmt 4703
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a notice of an
Administrative declaration of a disaster
for the State of Iowa Dated.
Incident: Severe Storms and Flash
Flooding.
Incident Period: 07/27/2011 through
07/28/2011.
E:\FR\FM\19AUN1.SGM
19AUN1
]]>Agencies
[Federal Register Volume 76, Number 161 (Friday, August 19, 2011)]
[Notices]
[Pages 52040-52042]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-21176]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65137; File No. SR-FINRA-2011-040]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Order Granting Accelerated
Approval of Proposed Rule Change To Amend the Supplementary Material to
FINRA Rule 1230(b)(6) (Operations Professional)
August 15, 2011.
On August 12, 2011, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I and
II below, which Items have been substantially prepared by FINRA. The
Commission is publishing this notice and order to solicit comment on
the proposed rule change and approve the proposed rule change on an
accelerated basis.
I. Description of Proposed Rule Change
FINRA is proposing to amend the supplementary material to FINRA
Rule 1230(b)(6) (Operations Professional), FINRA Rule 1230.06 (Scope of
Operations Professional Requirement), to clarify the application of the
Operations Professional requirements to employees of a foreign broker-
dealer whose activities, relating to certain transactions in foreign
securities on behalf of a member's customers, as further detailed
herein, are limited to facilitating the clearance and settlement of
such transactions.
The text of the proposed rule change is available on FINRA's Web
site at https://www.finra.org, at the principal office of FINRA and at
the Commission's Public Reference Room.
[[Page 52041]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On June 16, 2011, the Commission approved SR-FINRA-2011-013, which
adopted FINRA Rule 1230(b)(6) (Operations Professional), and its
accompanying supplementary material in FINRA Rule 1230.06 (Scope of
Operations Professional Requirement), to establish a registration
category and qualification examination requirement for certain
operations personnel (Operations Professionals).\1\ FINRA Rule
1230(b)(6), and its accompanying supplementary material in FINRA Rule
1230.06, takes effect on October 17, 2011.\2\
---------------------------------------------------------------------------
\1\ See Securities Exchange Act Release No. 64687 (June 16,
2011), 76 FR 36586 (June 22, 2011) (Order Approving Proposed Rule
Change; File No. SR-FINRA-2011-013). This rule change also
established continuing education requirements for Operations
Professionals and adopted NASD Rule 1120 (Continuing Education
Requirements) as FINRA Rule 1250 (Continuing Education Requirements)
in the consolidated FINRA rulebook with certain changes.
\2\ See Regulatory Notice 11-33 (July 2011).
---------------------------------------------------------------------------
Questions have been raised regarding the application of the
Operations Professional requirements to employees of a foreign broker-
dealer whose activities, relating to certain transactions in foreign
securities on behalf of a member's customers, are limited to
facilitating the clearance and settlement of such transactions. These
arrangements between the member and the foreign broker-dealer involve
transactions in foreign securities to be executed by the foreign
broker-dealer on the foreign market, where the foreign broker-dealer
accepts the member's customer's instructions to settle the transactions
on a DVP/RVP basis through the foreign clearing system and settle
directly with the customer's custodian.
To provide clarification with respect to the application of FINRA
Rule 1230(b)(6) to such arrangements, the proposed rule change would
amend supplementary material .06 to FINRA Rule 1230(b)(6) to provide
that an employee of a foreign broker-dealer whose activities, relating
to a transaction in foreign securities on behalf of a customer of a
member, are limited to facilitating the clearance and settlement of the
transaction shall not be required to register as an Operations
Professional pursuant to FINRA Rule 1230(b)(6)(A) where: (1) The member
sending the order for a transaction in foreign securities on behalf of
the customer to the foreign broker-dealer is not a direct participant
of the applicable foreign clearing system; and (2) in executing such
order in the foreign market, the foreign broker-dealer accepts the
member's customer's instructions to settle the transaction in foreign
securities on a DVP/RVP basis through the foreign clearing system and
settle directly with a custodian for the customer.\3\
---------------------------------------------------------------------------
\3\ We are approving this rule change as it addresses the
application of FINRA Rule 1230(b)(6) to the fact pattern described
above. No statement in the proposed rule or this order otherwise
affects the Commission's interpretation of any provision of the
Securities Exchange Act of 1934, or any rule thereunder, including
Rule 15c3-3 (17 CFR 240.15c3-3).
---------------------------------------------------------------------------
The effective date of the proposed rule change will be October 17,
2011, the effective date of FINRA Rule 1230(b)(6) (Operations
Professional) and its accompanying supplementary material in FINRA Rule
1230.06 (Scope of Operations Professional Requirement).
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\4\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes the proposed rule change would provide
clarification in response to questions raised regarding the application
of the Operations Professional requirements to employees of a foreign
broker-dealer facilitating the clearance and settlement of certain
transactions in foreign securities on behalf of a member's customers
pursuant to the arrangements described above.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Commission's Findings
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to FINRA and, in particular, the requirements of
Section 15A of the Act \5\ and the rules and regulations thereunder.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78o-3.
---------------------------------------------------------------------------
FINRA has requested that the Commission find good cause pursuant to
Section 19(b)(2) of the Act \6\ for approving the proposed rule change
prior to the 30th day after publication in the Federal Register. The
Commission finds good cause, pursuant to Section 19(b)(2), for
approving the proposed rule change prior to the 30th day after
publication of notice of the filing in the Federal Register. The
proposed rule change is intended to clarify the scope of application of
FINRA's Rule 1230(b)(6), which rule comes into effect on October 17,
2011.\7\ By accelerating the approval of the proposed rule, and
allowing it to become effective on October 17, 2011, the Commission can
eliminate uncertainty about the rule's applicability to the persons who
are the subject of this interpretation, improve the ability of FINRA
members to plan accordingly for the upcoming compliance date of Rule
1230(b)(6), and avoid undue burdens associated with preparing for the
registration of persons who will not be required to register under this
interpretation.\8\
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\6\ 15 U.S.C. 78s(b)(2).
\7\ See Regulatory Notice 11-33 (July 2011) (Operations
Professionals).
\8\ In approving 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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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:
[[Page 52042]]
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-FINRA-2011-040 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2011-040. 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 website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for website
viewing and printing in the Commission's Public Reference Room, 100 F
Street, NE., Washington, DC 20549, on official business days between
the hours of 10 a.m. and 3 p.m. Copies of such filing also will be
available for inspection and copying at the principal office of FINRA.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-FINRA-2011-040
and should be submitted on or before September 9, 2011.
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\9\ that the proposed rule change (SR-FINRA-2011-040) is approved
on an accelerated basis.
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\9\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-21176 Filed 8-18-11; 8:45 am]
BILLING CODE 8011-01-P
