Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Proposed Rule Change Relating To Raising the Limit for Simplified Arbitration, 12092-12094 [2012-4596]

Download as PDF 12092 Federal Register / Vol. 77, No. 39 / Tuesday, February 28, 2012 / Notices tkelley on DSK3SPTVN1PROD with NOTICES 10 CFR 50.55a. This action effectively minimizes the differences in preservice examination requirements when developing the ISI program but is not mandatory. For its initial 120-month interval, a COL licensee may submit to the NRC a request to authorize an alternative to use a different edition and addenda of ASME B&PV Code, Section III, than that established in the design certification application, or an earlier edition and addenda of ASME B&PV Code, Section XI, than that required by 10 CFR 50.55a(g)(3)(i), for developing its PSI program. According to 10 CFR 50.55a, the COL licensee would need to demonstrate that (1) this edition and addenda of ASME B&PV Code, Section III or XI, would provide an acceptable level of quality and safety, or (2) compliance with the specified requirement to use the latest edition and addenda would result in hardship or unusual difficulty without a compensating increase in the level of quality and safety. Risk-Informed IST and ISI Programs On several occasions, the NRC staff has been asked to define its position on Risk-Informed IST and ISI program submittals during the COL application process. A COL applicant or licensee may submit Risk-Informed IST and ISI programs for NRC staff review and authorization as an alternative to the regulations as described in 10 CFR 50.55a. The COL applicant or licensee will need to satisfy the requirements for authorization of an alternative as specified in 10 CFR 50.55a. The NRC staff recommends that a conventional IST or ISI program be in place or developed before preparing a Risk-Informed IST or ISI program to facilitate the evaluation of the acceptability of the alternative program. This recommendation is based solely on the fact that the existing design certification applications, the Standard Review Plan acceptance criteria, the applicable NUREG documents, and the COL applications conform to the premise that conventional IST/ISI programs have been developed prior to a Risk-Informed program. No regulation requires that a conventional IST/ISI program be developed prior to a RiskInformed IST or ISI program submission as an alternative. However, the NRC staff considers this approach to provide the most expedient course for review and approval of a Risk Informed IST or ISI program. Backfit Discussion This RIS clarifies current regulatory requirements and provides voluntary VerDate Mar<15>2010 20:10 Feb 27, 2012 Jkt 226001 options that a COL licensee may propose. The RIS imposes no new requirements and necessitates no action or written response. Therefore, it does not constitute a backfit under 10 CFR 50.109, ‘‘Backfitting,’’ and the staff did not perform a backfit analysis. Congressional Review Act [Discussion to be provided in the final RIS.] Paperwork Reduction Act Statement This RIS does not contain new or amended information collection requirements that are subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). The Office of Management and Budget (OMB) approved the existing requirements under OMB approval numbers 3150– 0011 and 3150–0151. Public Protection Notification The NRC may not conduct or sponsor, and a person is not required to respond to, an information collection unless the requesting document displays a currently valid OMB control number. Contact Please direct any questions about this matter to Andrea Russell, Project Manager, telephone 301–415–8553, or email Andrea.Russell@nrc.gov. For the Nuclear Regulatory Commission. Dated at Rockville, Maryland, this 16th day of February 2012. Kimyata Morgan-Butler, Acting Chief, Generic Communications Branch, Division of Policy and Rulemaking, Office of Nuclear Reactor Regulation. [FR Doc. 2012–4647 Filed 2–27–12; 8:45 am] BILLING CODE 7590–01–P and (10), permit consideration of the scheduled matters at the Closed Meeting. Commissioner Paredes, as duty officer, voted to consider the items listed for the Closed Meeting in a closed session. The subject matter of the Closed Meeting scheduled for Thursday, March 1, 2012 will be: Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings; and Other matters relating to enforcement proceedings. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551–5400. February 23, 2012. Elizabeth M. Murphy, Secretary. [FR Doc. 2012–4808 Filed 2–24–12; 11:15 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–66442; File No. SR–FINRA– 2012–012] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Proposed Rule Change Relating To Raising the Limit for Simplified Arbitration February 22, 2012. SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meeting Notice Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Securities and Exchange Commission will hold a Closed Meeting on Thursday, March 1, 2012 at 2 p.m. Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the Closed Meeting. Certain staff members who have an interest in the matters also may be present. The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR 200.402(a)(3), (5), (7), 9(ii) PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 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 February 9, 2012, 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, II, and III below, which Items have been substantially prepared by FINRA. 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 FINRA is proposing to amend FINRA’s Customer and Industry Codes 1 15 2 17 E:\FR\FM\28FEN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 28FEN1 Federal Register / Vol. 77, No. 39 / Tuesday, February 28, 2012 / Notices of Arbitration Procedure to raise the limit for simplified arbitration from $25,000 to $50,000. 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. 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. tkelley on DSK3SPTVN1PROD with NOTICES A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose FINRA is proposing to amend FINRA Rules 12401 (Number of Arbitrators) and 12800 (Simplified Arbitration) of the Code of Arbitration Procedure for Customer Disputes (‘‘Customer Code’’), and FINRA Rules 13401 (Number of Arbitrators) and 13800 (Simplified Arbitration) of the Code of Arbitration Procedure for Industry Disputes (‘‘Industry Code’’), to raise the limit for simplified arbitration from $25,000 to $50,000. Currently, FINRA offers streamlined arbitration procedures for claimants seeking damages of $25,000 or less. Under the simplified arbitration rules, one chair-qualified arbitrator decides a claim and issues an award based on the written submissions of the parties, unless, in a customer case, the customer requests a hearing, or, in an industry case, the claimant requests a hearing. FINRA also streamlines discovery for these cases. The $25,000 threshold has been in place since 1998 3 and, at that time, captured 21 percent of all cases filed with the forum. Currently, the $25,000 threshold captures ten percent of FINRA’s caseload. Statistics for 2011 indicate that raising the threshold to $50,000 would increase the percentage of claims administered under simplified 3 In 1998, FINRA raised the amount in dispute for simplified arbitration from $10,000 to $25,000. See NASD, Notice to Members 98–90 (New Arbitrator List Selection Rules And Monetary Thresholds For Simplified And Single Arbitrator Cases Take Effect). VerDate Mar<15>2010 20:10 Feb 27, 2012 Jkt 226001 arbitration to 17 percent of the claims filed with the forum. FINRA staff believes that raising the threshold for simplified arbitration to $50,000 would benefit forum users in a number of ways. First, forum fees for simplified arbitration claims would be reduced. Under FINRA Rules 12800 and 13800, no hearing is held unless the customer or claimant requests one.4 Under the current fee schedule, FINRA charges $450 per hearing session for claims between $25,000 and $50,000. Under the proposed rule change, parties who choose to have their dispute resolved ‘‘on the papers’’ (i.e., based on the pleadings and other materials submitted by the parties) would save the $450 hearing session fee.5 In the event that a case would have required two hearing sessions (one full day), the fee savings would be $900.6 Further, under Rules 12903 and 13903 (Process Fees Paid by Members), members are assessed a nonrefundable hearing process fee of $1,000 for claims between $25,000.01 and $50,000 when a hearing date and location are set. Under the proposal, if the dispute is resolved on the papers, members would not have to pay this fee. Second, parties would save the time and expense of preparing for, scheduling, and traveling to the hearing. Third, customers who are not able to retain an attorney to handle their case because of the small amount in dispute, and who are not comfortable appearing at an evidentiary hearing without representation, would have the flexibility to choose whether to request a hearing. Finally, raising the limit for cases decided on the papers would reduce the time to process the cases because the arbitrator and parties would not need to coordinate their calendars to schedule a hearing. For the reasons stated above, FINRA is proposing to amend Rules 12401(a) and 13401(a) to provide that if the amount of a claim is $50,000 or less, exclusive of interest and expenses, the panel would consist of one arbitrator and the claim would be subject to the simplified arbitration rules. FINRA would amend Rules 12401(c) and 4 Under the simplified procedures for customer cases, only the customer may request a hearing (regardless of whether the customer or the firm initiated the arbitration). Under the simplified procedures in the Industry Code, only the claimant may request a hearing. 5 Under Rules 12100(n) and 13100(n), a hearing session means any meeting between the parties and arbitrators of four hours or less, including a prehearing conference. 6 Since the arbitrator assesses the hearing session fees, either the claimant or the respondent could realize the savings. PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 12093 13401(c) to state that if the amount of a claim is more than $50,000, but not more than $100,000, exclusive of interest and expenses, the panel will consist of one arbitrator unless the parties agree in writing to three arbitrators. The provisions relating to claims of more than $100,000 would remain the same. FINRA is proposing to amend Rules 12800(a) and 13800(a) to provide that the simplified arbitration rules apply to claims involving $50,000 or less, exclusive of interest and expenses. FINRA would amend Rules 12800(e) and 13800(e) to state that if any pleading increased the amount in dispute to more than $50,000, FINRA would no longer administer the claim under the simplified arbitration rules. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,7 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 that raising the threshold for simplified arbitration would, as referenced above, improve efficiency and reduce fees for claims up to $50,000, enhancing the forum for its users. 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. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: 7 15 E:\FR\FM\28FEN1.SGM U.S.C. 78o-3(b)(6). 28FEN1 12094 Federal Register / Vol. 77, No. 39 / Tuesday, February 28, 2012 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Kevin M. O’Neill, Deputy Secretary. 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: [FR Doc. 2012–4596 Filed 2–27–12; 8:45 am] Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–FINRA–2012–012 on the subject line. tkelley on DSK3SPTVN1PROD with NOTICES (A) By order approve or disapprove such proposed rule change, or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Certain External and Inter-Cabinet Connectivity Fees 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–2012–012. This file number should be included on the subject line if email 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 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–2012–012 and should be submitted on or before March 20, 2012. VerDate Mar<15>2010 20:10 Feb 27, 2012 Jkt 226001 BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–66440; File No. SR–BX– 2012–010] February 22, 2012. 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 February 14, 2012, NASDAQ OMX BX, Inc. (‘‘BX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. 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 the Substance of the Proposed Rule Change The Exchange proposes to modify certain external and inter-cabinet connectivity fees. The text of the proposed rule change is available at https://nasdaqomxbx.cchwallstreet.com/, at the Exchange’s principal office, and 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 Exchange 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. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. Frm 00094 Fmt 4703 1. Purpose The Exchange proposes to amend Rule 7034(b) to reduce fees for low latency connectivity to Toronto and Chicago venues; and to increase certain fees for other forms of connectivity. Low Latency Connectivity On December 20, 2011, the Commission approved the Exchange’s offering of low latency point-to-point telecommunications connectivity from the Exchange’s co-location facility to select financial trading and co-location venues in the metropolitan New York/ New Jersey area, Toronto, and Chicago.3 The enhanced point-to-point connectivity provides the Exchange’s co-location customers the opportunity to obtain low latency network connectivity with greater ease and at a competitive price.4 The Exchange now proposes a passthrough reduction in the fees for connectivity to Toronto and Chicago venues as follows: (1) For 100MB connectivity to the Toronto area, a reduction of the installation fee from $5,150 to $4,850, and a reduction of the per-month connectivity fee from $4,350 to $4,100; (2) for 1G connectivity to the Toronto area, a reduction of the installation fee from $8,200 to $7,700, and a reduction of the per-month connectivity fee from $10,450 to $9,850; (3) for 10G connectivity to the Toronto area, a reduction of the installation fee from $15,150 to $14,200, and a reduction of the per-month connectivity fee from $32,400 to $28,400; (4) for 100MB connectivity to the Chicago area, a reduction of the installation fee from $4,850 to $3,500, and a reduction of the per-month connectivity fee from $8,350 to $7,350; (5) for 1G connectivity to the Chicago area, a reduction of the installation fee from $5,900 to $4,900, and a reduction of the per-month connectivity fee from $16,400 to $12,800; (6) for 10G connectivity to the Chicago area, a reduction of the installation fee from of [sic] $12,050 to $10,650, and a reduction of the permonth connectivity fee from $39,750 to $26,900. The reductions in fees are the result of the Exchange obtaining a reduction in the fees charged to the Exchange by the Toronto and Chicago low latency 3 See Securities Exchange Act Release No. 66012 (December 20, 2011), 76 FR 80998 (December 27, 2011) (SR–BX–2011–073). 4 Id. at 80998. 8 17 PO 00000 A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change Sfmt 4703 E:\FR\FM\28FEN1.SGM 28FEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 77, Number 39 (Tuesday, February 28, 2012)]
[Notices]
[Pages 12092-12094]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-4596]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66442; File No. SR-FINRA-2012-012]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of Proposed Rule Change Relating To
Raising the Limit for Simplified Arbitration

February 22, 2012.
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
February 9, 2012, 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,
II, and III below, which Items have been substantially prepared by
FINRA. 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\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

FINRA is proposing to amend FINRA's Customer and Industry Codes

[[Page 12093]]

of Arbitration Procedure to raise the limit for simplified arbitration
from $25,000 to $50,000.
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.

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
FINRA is proposing to amend FINRA Rules 12401 (Number of
Arbitrators) and 12800 (Simplified Arbitration) of the Code of
Arbitration Procedure for Customer Disputes (``Customer Code''), and
FINRA Rules 13401 (Number of Arbitrators) and 13800 (Simplified
Arbitration) of the Code of Arbitration Procedure for Industry Disputes
(``Industry Code''), to raise the limit for simplified arbitration from
$25,000 to $50,000.
Currently, FINRA offers streamlined arbitration procedures for
claimants seeking damages of $25,000 or less. Under the simplified
arbitration rules, one chair-qualified arbitrator decides a claim and
issues an award based on the written submissions of the parties,
unless, in a customer case, the customer requests a hearing, or, in an
industry case, the claimant requests a hearing. FINRA also streamlines
discovery for these cases.
The $25,000 threshold has been in place since 1998 \3\ and, at that
time, captured 21 percent of all cases filed with the forum. Currently,
the $25,000 threshold captures ten percent of FINRA's caseload.
Statistics for 2011 indicate that raising the threshold to $50,000
would increase the percentage of claims administered under simplified
arbitration to 17 percent of the claims filed with the forum. FINRA
staff believes that raising the threshold for simplified arbitration to
$50,000 would benefit forum users in a number of ways.
---------------------------------------------------------------------------

\3\ In 1998, FINRA raised the amount in dispute for simplified
arbitration from $10,000 to $25,000. See NASD, Notice to Members 98-
90 (New Arbitrator List Selection Rules And Monetary Thresholds For
Simplified And Single Arbitrator Cases Take Effect).
---------------------------------------------------------------------------

First, forum fees for simplified arbitration claims would be
reduced. Under FINRA Rules 12800 and 13800, no hearing is held unless
the customer or claimant requests one.\4\ Under the current fee
schedule, FINRA charges $450 per hearing session for claims between
$25,000 and $50,000. Under the proposed rule change, parties who choose
to have their dispute resolved ``on the papers'' (i.e., based on the
pleadings and other materials submitted by the parties) would save the
$450 hearing session fee.\5\ In the event that a case would have
required two hearing sessions (one full day), the fee savings would be
$900.\6\ Further, under Rules 12903 and 13903 (Process Fees Paid by
Members), members are assessed a non-refundable hearing process fee of
$1,000 for claims between $25,000.01 and $50,000 when a hearing date
and location are set. Under the proposal, if the dispute is resolved on
the papers, members would not have to pay this fee.
---------------------------------------------------------------------------

\4\ Under the simplified procedures for customer cases, only the
customer may request a hearing (regardless of whether the customer
or the firm initiated the arbitration). Under the simplified
procedures in the Industry Code, only the claimant may request a
hearing.
\5\ Under Rules 12100(n) and 13100(n), a hearing session means
any meeting between the parties and arbitrators of four hours or
less, including a prehearing conference.
\6\ Since the arbitrator assesses the hearing session fees,
either the claimant or the respondent could realize the savings.
---------------------------------------------------------------------------

Second, parties would save the time and expense of preparing for,
scheduling, and traveling to the hearing.
Third, customers who are not able to retain an attorney to handle
their case because of the small amount in dispute, and who are not
comfortable appearing at an evidentiary hearing without representation,
would have the flexibility to choose whether to request a hearing.
Finally, raising the limit for cases decided on the papers would
reduce the time to process the cases because the arbitrator and parties
would not need to coordinate their calendars to schedule a hearing.
For the reasons stated above, FINRA is proposing to amend Rules
12401(a) and 13401(a) to provide that if the amount of a claim is
$50,000 or less, exclusive of interest and expenses, the panel would
consist of one arbitrator and the claim would be subject to the
simplified arbitration rules. FINRA would amend Rules 12401(c) and
13401(c) to state that if the amount of a claim is more than $50,000,
but not more than $100,000, exclusive of interest and expenses, the
panel will consist of one arbitrator unless the parties agree in
writing to three arbitrators. The provisions relating to claims of more
than $100,000 would remain the same.
FINRA is proposing to amend Rules 12800(a) and 13800(a) to provide
that the simplified arbitration rules apply to claims involving $50,000
or less, exclusive of interest and expenses. FINRA would amend Rules
12800(e) and 13800(e) to state that if any pleading increased the
amount in dispute to more than $50,000, FINRA would no longer
administer the claim under the simplified arbitration rules.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\7\ 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 that raising the threshold for
simplified arbitration would, as referenced above, improve efficiency
and reduce fees for claims up to $50,000, enhancing the forum for its
users.
---------------------------------------------------------------------------

\7\ 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. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:

[[Page 12094]]

(A) By order approve or disapprove such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be 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:

Electronic Comments

Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-FINRA-2012-012 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-2012-012. This
file number should be included on the subject line if email 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 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-2012-012 and should be
submitted on or before March 20, 2012.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-4596 Filed 2-27-12; 8:45 am]
BILLING CODE 8011-01-P

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