Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Implementation of FINRA Rule 4240 (Margin Requirements for Credit Default Swaps), 43128-43130 [2012-17803]
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43128
Federal Register / Vol. 77, No. 141 / Monday, July 23, 2012 / Notices
FEHB Program, and the law requires
non-HMO FEHB plans to reimburse
beneficiaries, subject to their contract
terms, for covered services obtained
from any licensed provider in these
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FEHB regulations (5 CFR 890.701)
require OPM to make an annual
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as Medically Underserved Areas for the
next calendar year by comparing the
latest HHS State-by-State population
counts on primary medical care
manpower shortage areas with U.S.
Census figures on State resident
populations.
U.S. Office of Personnel Management.
John Berry,
Director.
Thursday, August 9, at 10:30 a.m.
(Closed—if needed)
1. Continuation of Thursday’s closed
session agenda.
CONTACT PERSON FOR MORE INFORMATION:
Julie S. Moore, Secretary of the Board,
U.S. Postal Service, 475 L’Enfant Plaza
SW., Washington, DC 20260–1000.
Telephone (202) 268–4800.
Julie S. Moore,
Secretary.
[FR Doc. 2012–18065 Filed 7–19–12; 4:15 pm]
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67449; File No. SR–FINRA–
2012–035]
[FR Doc. 2012–17753 Filed 7–20–12; 8:45 am]
BILLING CODE 6325–63–P
POSTAL SERVICE
Board of Governors Sunshine Act
Meeting
Wednesday, August 8,
2012, at 10:00 a.m.; Thursday, August 9,
at 8:30 a.m. and 10:30 a.m.
PLACE: Washington, DC, at U.S. Postal
Service Headquarters, 475 L’Enfant
Plaza SW., in the Benjamin Franklin
Room.
STATUS: Wednesday, August 8, at 10:00
a.m.—Closed; Thursday, August 9, at
8:30 a.m.—Open; and at 10:30 a.m.—
Closed
DATES AND TIMES:
Matters To Be Considered
Wednesday, August 8, at 10:00 a.m.
(Closed)
1. Strategic Issues.
2. Financial Matters.
3. Pricing.
4. Personnel Matters and
Compensation Issues.
5. Governors’ Executive Session—
Discussion of prior agenda items and
Board Governance.
mstockstill on DSK4VPTVN1PROD with NOTICES
Thursday, August 9, at 8:30 a.m. (Open)
1. Approval of Minutes of Previous
Meetings.
2. Remarks of the Chairman of the
Board.
3. Remarks of the Postmaster General
and CEO.
4. Committee Reports.
5. Quarterly Report on Financial
Performance.
6. Quarterly Report on Service
Performance.
7. Tentative Agenda for the September
13, 2012, meeting in Washington, DC
VerDate Mar<15>2010
19:21 Jul 20, 2012
Jkt 226001
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the
Implementation of FINRA Rule 4240
(Margin Requirements for Credit
Default Swaps)
July 17, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
on July 13, 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 and II below, which Items
have been prepared by FINRA. FINRA
has designated the proposed rule change
as constituting a ‘‘non-controversial’’
rule change under paragraph (f)(6) of
Rule 19b–4 under the Act,3 which
renders the proposal effective upon
filing with the Commission. 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 extend to July
17, 2013 the implementation of FINRA
Rule 4240. FINRA Rule 4240
implements an interim pilot program
with respect to margin requirements for
certain transactions in credit default
swaps that are security-based swaps.
The text of the proposed rule change
is available on FINRA’s Web site at
PO 00000
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
Frm 00084
Fmt 4703
Sfmt 4703
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
On May 22, 2009, the Commission
approved FINRA Rule 4240,4 which
implements an interim pilot program
(the ‘‘Interim Pilot Program’’) with
respect to margin requirements for
certain transactions in credit default
swaps (‘‘CDS’’).5 On March 7, 2012, the
SEC approved extending the
implementation of Rule 4240 to July 17,
2012.6
As explained in the Approval Order,
FINRA Rule 4240, coterminous with
certain Commission actions, was
intended to address concerns arising
from systemic risk posed by CDS,
including, among other things, risks to
the financial system arising from the
lack of a central clearing counterparty to
clear and settle CDS.7 On July 21, 2010,
President Obama signed into law the
Dodd-Frank Wall Street Reform and
Consumer Protection Act (the ‘‘DoddFrank Act’’),8 Title VII of which
established a comprehensive new
regulatory framework for swaps and
4 See Exchange Act Release No. 59955 (May 22,
2009), 74 FR 25586 (May 28, 2009) (Notice of Filing
and Order Granting Accelerated Approval of
Proposed Rule Change; File No. SR–FINRA–2009–
012) (‘‘Approval Order’’).
5 In March 2012, the SEC approved amendments
to FINRA Rule 4240 that, among other things, limit
at this time the rule’s application to credit default
swaps that are security-based swaps. See Exchange
Act Release No. 66527 (March 7, 2012), 77 FR
14850 (March 13, 2012) (Notice of Filing and Order
Granting Accelerated Approval of Proposed Rule
Change; File No. SR–FINRA–2012–015).
6 See Exchange Act Release No. 66528 (March 7,
2012), 77 FR 14848 (March 13, 2012) (Notice of
Filing and Order Granting Accelerated Approval of
Proposed Rule Change; File No. SR–FINRA–2012–
014).
7 See 74 FR at 25588–89.
8 Public Law 111–203, 124 Stat. 1376 (2010).
E:\FR\FM\23JYN1.SGM
23JYN1
Federal Register / Vol. 77, No. 141 / Monday, July 23, 2012 / Notices
security-based swaps,9 including certain
CDS. The new legislation was intended,
among other things, to enhance the
authority of regulators to implement
new rules designed to reduce risk,
increase transparency, and promote
market integrity with respect to such
products.
Pursuant to Title VII of the DoddFrank Act, the CFTC and the
Commission are engaged in ongoing
rulemaking with respect to swaps and
security-based swaps.10 FINRA believes
it is appropriate to extend the Interim
Pilot Program for a limited period, to
July 17, 2013, in light of the continuing
development of the CDS business
within the framework of the Dodd-Frank
Act and pending the final
implementation of new CFTC and SEC
rules pursuant to Title VII of that
legislation.
FINRA has filed the proposed rule
change for immediate effectiveness and
has requested that the SEC waive the
requirement that the proposed rule
change not become operative for 30 days
after the date of the filing, such that
FINRA can implement the proposed
rule change immediately. The proposed
rule change will expire on July 17, 2013.
mstockstill on DSK4VPTVN1PROD with NOTICES
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,11 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 the
proposed rule change will further the
purposes of the Act because, consistent
with the goals set forth by the
Commission when it adopted the
interim final temporary rules with
9 The terms ‘‘swap’’ and ‘‘security-based swap’’
are defined in Sections 721 and 761 of the DoddFrank Act. The Commodity Futures Trading
Commission (‘‘CFTC’’) and the Commission jointly
have approved rules to further define these terms.
See SEC File No. S7–16–11 (Joint Final Rule;
Interpretations: Further Definition of ‘‘Swap,’’
‘‘Security-Based Swap,’’ and ‘‘Security-Based Swap
Agreement;’’ Mixed Swaps; Security-Based Swap
Agreement Recordkeeping), available at: https://
www.sec.gov/news/press/2012/s71611-draft.pdf.
See also Exchange Act Release No. 66868 (April 27,
2012), 77 FR 30596 (May 23, 2012) (Joint Final
Rule; Joint Interim Final Rule; Interpretations:
Further Definition of ‘‘Swap Dealer,’’ ‘‘SecurityBased Swap Dealer,’’ ‘‘Major Swap Participant,’’
‘‘Major Security-Based Swap Participant’’ and
‘‘Eligible Contract Participant’’).
10 See, e.g., supra note 9 and Exchange Act
Release No. 67177 (June 11, 2012), 77 FR 35625
(June 14, 2012) (Statement of General Policy on the
Sequencing of the Compliance Dates for Final Rules
Applicable to Security-Based Swap).
11 15 U.S.C. 78o–3(b)(6).
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19:21 Jul 20, 2012
Jkt 226001
respect to the operation of central
counterparties to clear and settle CDS,
and pending the final implementation of
new CFTC and SEC rules pursuant to
Title VII of the Dodd-Frank Act, the
margin requirements set forth by the
proposed rule change will help to
stabilize the financial markets.
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
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6) thereunder.13
FINRA has requested that the
Commission waive the five-day prefiling notice requirement specified in
Rule 19b–4(f)(6)(iii) under the Act.14
FINRA proposes to make the proposed
rule change operative on July 17, 2012.
FINRA has requested that the
Commission waive the 30-day operative
delay, so that the proposed rule change
may become operative upon filing. The
Commission hereby grants FINRA’s
request and believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest.15 This will allow the
Interim Pilot Program to continue
without interruption and extend the
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii). Rule 19b–4(f)(6)(iii)
requires a self-regulatory organization to submit to
the Commission written notice of its intent to file
the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Commission
has waived the five-day pre-filing period in this
case.
15 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
PO 00000
12 15
13 17
Frm 00085
Fmt 4703
Sfmt 4703
43129
benefits of a pilot program that the
Commission approved and previously
extended. For these reasons, the
Commission designates the proposed
rule change as operative on July 17,
2012.
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:
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–2012–035 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–2012–035. 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
E:\FR\FM\23JYN1.SGM
23JYN1
43130
Federal Register / Vol. 77, No. 141 / Monday, July 23, 2012 / Notices
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–2012–035 and
should be submitted on or before
August 13, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–17803 Filed 7–20–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
concerning the securities of Cygne
Designs, Inc. because it has not filed any
periodic reports since the period ended
October 31, 2008.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Davi Skin,
Inc. because it has not filed any periodic
reports since the period ended June 30,
2008.
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 July 19,
2012, through 11:59 p.m. EDT on
August 1, 2012.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[File No. 500–1]
July 19, 2012.
mstockstill on DSK4VPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
Florida Disaster Number FL–00072
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
19:21 Jul 20, 2012
Jkt 226001
[Disaster Declaration #13107 and #13108]
U.S. Small Business
Administration.
ACTION: Amendment 1.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of FLORIDA (FEMA–4068–
DR), dated 07/09/2012.
Incident: Tropical Storm Debby.
Incident Period: 06/23/2012 and
continuing.
Effective Date: 07/12/2012.
Physical Loan Application Deadline
Date: 09/07/2012.
Economic Injury (EIDL) Loan
Application Deadline Date: 04/09/2013.
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 President’s major disaster
declaration for Private Non-Profit
organizations in the State of Florida,
dated 07/09/2012, is hereby amended to
SUMMARY:
Frm 00086
Fmt 4703
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Roger B Garland,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. 2012–17807 Filed 7–20–12; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #13103 and #13104]
Florida Disaster Number FL–00071
ACTION:
Amendment 3.
This is an amendment of the
Presidential declaration of a major
disaster for the State of Florida (FEMA–
4068–DR), dated 07/03/2012.
Incident: Tropical Storm Debby.
Incident Period: 06/23/2012 and
continuing.
Effective Date: 07/12/2012.
Physical Loan Application Deadline
Date: 09/04/2012.
EIDL Loan Application Deadline Date:
04/03/2013.
SUMMARY:
SMALL BUSINESS ADMINISTRATION
PO 00000
All other information in the original
declaration remains unchanged.
U.S. Small Business
Administration.
Order of Suspension of Trading; In the
Matter of Alliance Bancshares
California, City Loan, Inc., Clear Choice
Financial, Inc., CRC Crystal Research
Corp., Cygne Designs, Inc., and Davi
Skin, Inc.
16 17
Primary Counties: Collier, Lee, Levy
Madison, Putnam, Santa Rosa, Taylor,
Bradford, Duval.
AGENCY:
[FR Doc. 2012–17966 Filed 7–19–12; 11:15 am]
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Alliance
Bancshares California because it has not
filed any periodic reports since the
period ended September 30, 2008.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of City Loan,
Inc. because it has not filed any periodic
reports since the period ended
September 30, 2008.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Clear
Choice Financial, Inc. because it has not
filed any periodic reports since the
period ended September 30, 2006.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of CRC Crystal
Research Corp. because it has not filed
any periodic reports since the period
ended September 30, 2009.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
include the following areas as adversely
affected by the disaster.
Sfmt 4703
Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
ADDRESSES:
A
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW., Suite 6050,
Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT:
The notice
of the Presidential disaster declaration
for the State of Florida, dated
07/03/2012 is hereby amended to
include the following areas as adversely
affected by the disaster:
SUPPLEMENTARY INFORMATION:
Primary Counties: (Physical Damage
and Economic Injury Loans):
Hillsborough, Taylor, Manatee.
Contiguous Counties: (Economic Injury
Loans Only): Florida: Dixie,
Sarasota.
All other information in the original
declaration remains unchanged.
E:\FR\FM\23JYN1.SGM
23JYN1
]]>Agencies
[Federal Register Volume 77, Number 141 (Monday, July 23, 2012)]
[Notices]
[Pages 43128-43130]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-17803]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67449; File No. SR-FINRA-2012-035]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Extend the Implementation of FINRA Rule 4240
(Margin Requirements for Credit Default Swaps)
July 17, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on July 13, 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 and II below, which Items have been prepared by
FINRA. FINRA has designated the proposed rule change as constituting a
``non-controversial'' rule change under paragraph (f)(6) of Rule 19b-4
under the Act,\3\ which renders the proposal effective upon filing with
the Commission. 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.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to extend to July 17, 2013 the implementation of
FINRA Rule 4240. FINRA Rule 4240 implements an interim pilot program
with respect to margin requirements for certain transactions in credit
default swaps that are security-based swaps.
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
On May 22, 2009, the Commission approved FINRA Rule 4240,\4\ which
implements an interim pilot program (the ``Interim Pilot Program'')
with respect to margin requirements for certain transactions in credit
default swaps (``CDS'').\5\ On March 7, 2012, the SEC approved
extending the implementation of Rule 4240 to July 17, 2012.\6\
---------------------------------------------------------------------------
\4\ See Exchange Act Release No. 59955 (May 22, 2009), 74 FR
25586 (May 28, 2009) (Notice of Filing and Order Granting
Accelerated Approval of Proposed Rule Change; File No. SR-FINRA-
2009-012) (``Approval Order'').
\5\ In March 2012, the SEC approved amendments to FINRA Rule
4240 that, among other things, limit at this time the rule's
application to credit default swaps that are security-based swaps.
See Exchange Act Release No. 66527 (March 7, 2012), 77 FR 14850
(March 13, 2012) (Notice of Filing and Order Granting Accelerated
Approval of Proposed Rule Change; File No. SR-FINRA-2012-015).
\6\ See Exchange Act Release No. 66528 (March 7, 2012), 77 FR
14848 (March 13, 2012) (Notice of Filing and Order Granting
Accelerated Approval of Proposed Rule Change; File No. SR-FINRA-
2012-014).
---------------------------------------------------------------------------
As explained in the Approval Order, FINRA Rule 4240, coterminous
with certain Commission actions, was intended to address concerns
arising from systemic risk posed by CDS, including, among other things,
risks to the financial system arising from the lack of a central
clearing counterparty to clear and settle CDS.\7\ On July 21, 2010,
President Obama signed into law the Dodd-Frank Wall Street Reform and
Consumer Protection Act (the ``Dodd-Frank Act''),\8\ Title VII of which
established a comprehensive new regulatory framework for swaps and
[[Page 43129]]
security-based swaps,\9\ including certain CDS. The new legislation was
intended, among other things, to enhance the authority of regulators to
implement new rules designed to reduce risk, increase transparency, and
promote market integrity with respect to such products.
---------------------------------------------------------------------------
\7\ See 74 FR at 25588-89.
\8\ Public Law 111-203, 124 Stat. 1376 (2010).
\9\ The terms ``swap'' and ``security-based swap'' are defined
in Sections 721 and 761 of the Dodd-Frank Act. The Commodity Futures
Trading Commission (``CFTC'') and the Commission jointly have
approved rules to further define these terms. See SEC File No. S7-
16-11 (Joint Final Rule; Interpretations: Further Definition of
``Swap,'' ``Security-Based Swap,'' and ``Security-Based Swap
Agreement;'' Mixed Swaps; Security-Based Swap Agreement
Recordkeeping), available at: https://www.sec.gov/news/press/2012/s71611-draft.pdf. See also Exchange Act Release No. 66868 (April 27,
2012), 77 FR 30596 (May 23, 2012) (Joint Final Rule; Joint Interim
Final Rule; Interpretations: Further Definition of ``Swap Dealer,''
``Security-Based Swap Dealer,'' ``Major Swap Participant,'' ``Major
Security-Based Swap Participant'' and ``Eligible Contract
Participant'').
---------------------------------------------------------------------------
Pursuant to Title VII of the Dodd-Frank Act, the CFTC and the
Commission are engaged in ongoing rulemaking with respect to swaps and
security-based swaps.\10\ FINRA believes it is appropriate to extend
the Interim Pilot Program for a limited period, to July 17, 2013, in
light of the continuing development of the CDS business within the
framework of the Dodd-Frank Act and pending the final implementation of
new CFTC and SEC rules pursuant to Title VII of that legislation.
---------------------------------------------------------------------------
\10\ See, e.g., supra note 9 and Exchange Act Release No. 67177
(June 11, 2012), 77 FR 35625 (June 14, 2012) (Statement of General
Policy on the Sequencing of the Compliance Dates for Final Rules
Applicable to Security-Based Swap).
---------------------------------------------------------------------------
FINRA has filed the proposed rule change for immediate
effectiveness and has requested that the SEC waive the requirement that
the proposed rule change not become operative for 30 days after the
date of the filing, such that FINRA can implement the proposed rule
change immediately. The proposed rule change will expire on July 17,
2013.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\11\ 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 the proposed rule change will
further the purposes of the Act because, consistent with the goals set
forth by the Commission when it adopted the interim final temporary
rules with respect to the operation of central counterparties to clear
and settle CDS, and pending the final implementation of new CFTC and
SEC rules pursuant to Title VII of the Dodd-Frank Act, the margin
requirements set forth by the proposed rule change will help to
stabilize the financial markets.
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\11\ 15 U.S.C. 78o-3(b)(6).
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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
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
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FINRA has requested that the Commission waive the five-day pre-
filing notice requirement specified in Rule 19b-4(f)(6)(iii) under the
Act.\14\ FINRA proposes to make the proposed rule change operative on
July 17, 2012.
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\14\ 17 CFR 240.19b-4(f)(6)(iii). Rule 19b-4(f)(6)(iii) requires
a self-regulatory organization to submit to the Commission written
notice of its intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Commission has waived the five-day pre-filing period in this case.
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FINRA has requested that the Commission waive the 30-day operative
delay, so that the proposed rule change may become operative upon
filing. The Commission hereby grants FINRA's request and believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest.\15\ This will allow the Interim
Pilot Program to continue without interruption and extend the benefits
of a pilot program that the Commission approved and previously
extended. For these reasons, the Commission designates the proposed
rule change as operative on July 17, 2012.
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\15\ For the purposes only of waiving the 30-day operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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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:
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-2012-035 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-2012-035. 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
[[Page 43130]]
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-2012-035 and should be submitted on or before August 13, 2012.
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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-17803 Filed 7-20-12; 8:45 am]
BILLING CODE 8011-01-P
