Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Rules To Extend the Effective Date of the Trading Pause Pilot, 47469-47470 [2012-19381]
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Federal Register / Vol. 77, No. 153 / Wednesday, August 8, 2012 / Notices
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–2012–038 and
should be submitted by August 29,
2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–19382 Filed 8–7–12; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
1. Purpose
[Release No. 34–67578; File No. SR–FINRA–
2012–037]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its Rules To
Extend the Effective Date of the
Trading Pause Pilot
August 2, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 23,
2012, the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
wreier-aviles on DSK7SPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to amend FINRA
Rule 6121 (Trading Halts Due to
Extraordinary Market Volatility) to
extend the effective date of the pilot,
which is currently scheduled to expire
on July 31, 2012, until February 4, 2013.
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.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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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. The self-regulatory
organization 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
BILLING CODE 8011–01–P
15 17
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
FINRA proposes to amend FINRA
Rule 6121.01 to extend the effective date
of the pilot by which such rule operates,
which is currently scheduled to expire
on July 31, 2012,3 until February 4,
2013.
FINRA Rule 6121.01 provides that if
a primary listing market has issued an
individual stock trading pause under its
rules, FINRA will halt trading otherwise
than on an exchange in that security
until trading has resumed on the
primary listing market. The pilot was
developed and implemented as a
market-wide initiative by FINRA and
other self-regulatory organizations
(‘‘SROs’’) in consultation with
Commission staff, and is currently
applicable to all NMS stocks (other than
rights and warrants) and specified
exchange-traded products covered by
the trading pause pilot rules of a
primary listing market.4
The extension proposed herein would
allow the pilot to continue to operate
without interruption while FINRA, the
other SROs and the Commission further
assess the effect of the pilot on the
marketplace or whether other initiatives
should be adopted in lieu of the current
pilot.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,5 which
requires, among other things, that
3 See Securities Exchange Act Release No. 66270
(January 30, 2012), 77 FR 5610 (February 3, 2012)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2012–006).
4 See Securities Exchange Act Release No. 65819
(November 23, 2011), 76 FR 74105 (November 30,
2011) (Notice of Filing and Immediate Effectiveness
of File No. SR–FINRA–2011–068).
5 15 U.S.C. 78o–3(b)(6).
PO 00000
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Fmt 4703
Sfmt 4703
47469
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 meets these
requirements in that it promotes
uniformity across markets concerning
decisions to pause trading in a security
when there are significant price
movements.
Additionally, extension of the pilot to
February 4, 2013 would allow the pilot
to continue to operate without
interruption while FINRA, the other
SROs and the Commission further
assess the effect of the pilot on the
marketplace and coordinate the
duration of the pilot with the
implementation of the National Market
System Plan to Address Extraordinary
Market Volatility.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
FINRA has filed the proposed rule
change pursuant to Section
19(b)(3)(A)(iii) of the Act 7 and Rule
19b–4(f)(6) thereunder.8 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
6 See Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498 (June 6, 2012) (Order
Approving, on a Pilot Basis, the National Market
System Plan To Address Extraordinary Market
Volatility).
7 15 U.S.C. 78s(b)(3)(A)(iii).
8 17 CFR 240.19b–4(f)(6).
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47470
Federal Register / Vol. 77, No. 153 / Wednesday, August 8, 2012 / Notices
of the Act 9 and Rule 19b–4(f)(6)(iii)
thereunder.10
A proposed rule change filed under
Rule 19b–4(f)(6) 11 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii) 12 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest.
FINRA has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest, as it
will allow the pilot program to continue
uninterrupted, thereby avoiding the
investor confusion that could result
from a temporary interruption in the
pilot program. For this reason, the
Commission designates the proposed
rule change to be operative upon
filing.13
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.
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
No. SR–FINRA–2012–037 on the subject
line.
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires FINRA to give the Commission
written notice of FINRA’s 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. FINRA has satisfied this requirement.
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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–2012–037. 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 Commissions
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. Copies of such filing
also will be available for inspection and
copying at the principal office of the
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–2012–037 and
should be submitted by August 29,
2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–19381 Filed 8–7–12; 8:45 am]
BILLING CODE 8011–01–P
9 15
wreier-aviles on DSK7SPTVN1PROD with NOTICES
10 17
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Jkt 226001
14 17
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CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67588; File No. SR–FINRA–
2009–028]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Withdrawal of
Proposed Rule Change To Adopt
FINRA Rule 2231 (Customer Account
Statements) in the Consolidated FINRA
Rulebook
August 2, 2012.
On April 22, 2009, the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) (f/k/a National Association
of Securities Dealers, Inc. (‘‘NASD’’))
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change that would have adopted NASD
Rule 2340 (‘‘Customer Account
Statements’’) with certain changes as
FINRA Rule 2231 in the consolidated
FINRA rulebook (‘‘Consolidated FINRA
Rulebook’’).3 The proposed rule change
would also have deleted NYSE Rule 409
(‘‘Statements of Accounts of
Customers’’), except for paragraph (f)
and certain of its related interpretations.
The proposed rule change was
published for comment in the Federal
Register on May 21, 2009.4 The
Commission received 12 comments on
the proposal.5
On July 12, 2011, FINRA filed
Amendment No. 1 to the proposed rule
change that was published in Federal
Register on August 2, 2011.6 On October
7, 2011, the Commission published a
notice to correct the timing of required
Commission action.7 The Commission
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 The FINRA rulebook consists of (1) FINRA
Rules; (2) NASD Rules; and (3) rules incorporated
from NYSE (‘‘Incorporated NYSE Rules’’) (together,
the NASD Rules and Incorporated NYSE Rules are
referred to as the ‘‘Transitional Rulebook’’). While
the NASD Rules generally apply to all FINRA
members, the Incorporated NYSE Rules apply only
to those members of FINRA that are also members
of the NYSE (‘‘Dual Members’’). The FINRA Rules
apply to all FINRA members, unless such rules
have a more limited application by their terms. For
more information about the rulebook consolidation
process, see FINRA Information Notice, March 12,
2008 (Rulebook Consolidation Process). For
convenience, the proposed rule change refers to
Incorporated NYSE Rules as NYSE Rules.
4 See Securities Exchange Act Release No. 59921
(May 14, 2009), 74 FR 23912 (May 21, 2009).
5 https://www.sec.gov/comments/sr-finra-2009028/finra2009028.shtml (last visited July 30, 2012).
6 See Securities Exchange Act Release No. 64969
(July 26, 2011), 76 FR 46340 (August 2, 2011).
7 See Exchange Act Release No. 64969A (Oct. 7,
2011), 76 FR 63969 (Oct. 14, 2011).
2 17
E:\FR\FM\08AUN1.SGM
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]]>Agencies
[Federal Register Volume 77, Number 153 (Wednesday, August 8, 2012)]
[Notices]
[Pages 47469-47470]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-19381]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67578; File No. SR-FINRA-2012-037]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Its Rules To Extend the Effective Date of
the Trading Pause Pilot
August 2, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on July 23, 2012, the Financial Industry Regulatory Authority,
Inc. (``FINRA'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 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 Rule 6121 (Trading Halts Due to
Extraordinary Market Volatility) to extend the effective date of the
pilot, which is currently scheduled to expire on July 31, 2012, until
February 4, 2013.
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. The self-regulatory organization 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 proposes to amend FINRA Rule 6121.01 to extend the effective
date of the pilot by which such rule operates, which is currently
scheduled to expire on July 31, 2012,\3\ until February 4, 2013.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 66270 (January 30,
2012), 77 FR 5610 (February 3, 2012) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2012-006).
---------------------------------------------------------------------------
FINRA Rule 6121.01 provides that if a primary listing market has
issued an individual stock trading pause under its rules, FINRA will
halt trading otherwise than on an exchange in that security until
trading has resumed on the primary listing market. The pilot was
developed and implemented as a market-wide initiative by FINRA and
other self-regulatory organizations (``SROs'') in consultation with
Commission staff, and is currently applicable to all NMS stocks (other
than rights and warrants) and specified exchange-traded products
covered by the trading pause pilot rules of a primary listing
market.\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 65819 (November 23,
2011), 76 FR 74105 (November 30, 2011) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2011-068).
---------------------------------------------------------------------------
The extension proposed herein would allow the pilot to continue to
operate without interruption while FINRA, the other SROs and the
Commission further assess the effect of the pilot on the marketplace or
whether other initiatives should be adopted in lieu of the current
pilot.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\5\ 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 meets
these requirements in that it promotes uniformity across markets
concerning decisions to pause trading in a security when there are
significant price movements.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
Additionally, extension of the pilot to February 4, 2013 would
allow the pilot to continue to operate without interruption while
FINRA, the other SROs and the Commission further assess the effect of
the pilot on the marketplace and coordinate the duration of the pilot
with the implementation of the National Market System Plan to Address
Extraordinary Market Volatility.\6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012) (Order Approving, on a Pilot
Basis, the National Market System Plan To Address Extraordinary
Market Volatility).
---------------------------------------------------------------------------
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
FINRA has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
[[Page 47470]]
of the Act \9\ and Rule 19b-4(f)(6)(iii) thereunder.\10\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6).
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires FINRA to give the Commission written notice of FINRA's
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. FINRA
has satisfied this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \12\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. FINRA has asked the
Commission to waive the 30-day operative delay so that the proposal may
become operative immediately upon filing.
---------------------------------------------------------------------------
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest, as
it will allow the pilot program to continue uninterrupted, thereby
avoiding the investor confusion that could result from a temporary
interruption in the pilot program. For this reason, the Commission
designates the proposed rule change to be operative upon filing.\13\
---------------------------------------------------------------------------
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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.
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 No. SR-FINRA-2012-037 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-2012-037. 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 Commissions 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. Copies of such filing also will
be available for inspection and copying at the principal office of the
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-2012-037 and should be submitted by August 29, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-19381 Filed 8-7-12; 8:45 am]
BILLING CODE 8011-01-P
