Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period of Amendments to FINRA Rule 11892 Governing Clearly Erroneous Transactions, 47467-47469 [2012-19382]
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Federal Register / Vol. 77, No. 153 / Wednesday, August 8, 2012 / Notices
comprehensive surveillance sharing
agreement. In addition, as noted above,
investors will have ready access to
information regarding the Fund’s
holdings, the Intraday Indicative Value,
the Disclosed Portfolio, and quotation
and last-sale information for the Shares.
For the above reasons, the Exchange
believes that the proposed rule change
is consistent with the requirements of
Section 6(b)(5) of the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change imposes any
burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
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:
A. By order approve or disapprove the
proposed rule change; or
B. Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
wreier-aviles on DSK7SPTVN1PROD with NOTICES
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–BATS–2012–033 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.
15:11 Aug 07, 2012
Jkt 226001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.29
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–19415 Filed 8–7–12; 8:45 am]
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:
VerDate Mar<15>2010
All submissions should refer to File
Number SR–BATS–2012–033. 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 Section, 100 F Street NE.,
Washington, DC 20549, on official
business days between 10:00 a.m. and
3:00 p.m. Copies of the filing will also
be available for inspection and copying
at the principal office of the Exchange.
All comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–BATS–2012–033 and
should be submitted on or before
August 29, 2012.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67579; File No. SR–FINRA–
2012–038]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Pilot
Period of Amendments to FINRA Rule
11892 Governing Clearly Erroneous
Transactions
August 2, 2012.
29 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00110
Fmt 4703
‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to amend FINRA
Rule 11892 (Clearly Erroneous
Transactions in Exchange-Listed
Securities) 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 11892.02 to extend the effective
date of the amendments set forth in File
No. SR–FINRA–2010–032 (the ‘‘pilot’’),
which are currently scheduled to expire
on July 31, 2012,3 until February 4,
2013.
The pilot was drafted in consultation
with other self-regulatory organizations
(‘‘SROs’’) and Commission staff to
provide for uniform treatment: (1) Of
1 15
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
Sfmt 4703
47467
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 66254
(January 26, 2012), 77 FR 5084 (February 1, 2012)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2012–005).
2 17
E:\FR\FM\08AUN1.SGM
08AUN1
47468
Federal Register / Vol. 77, No. 153 / Wednesday, August 8, 2012 / Notices
clearly erroneous execution reviews in
Multi-Stock Events involving twenty or
more securities; and (2) in the event
transactions occur that result in the
issuance of an individual stock trading
pause by the primary listing market and
subsequent transactions that occur
before the trading pause is in effect for
transactions otherwise than on an
exchange.4 FINRA also implemented
additional changes to the Rule as part of
the pilot that reduce the ability of
FINRA to deviate from the objective
standards set forth in the Rule.5
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, including whether
additional measures should be added,
whether the parameters of the rule
should be modified or whether other
initiatives should be adopted in lieu of
the current pilot.
2. Statutory Basis
wreier-aviles on DSK7SPTVN1PROD with NOTICES
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,6 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 is consistent with
the clearly erroneous rules of other
SROs and will promote the goal of
transparency and uniformity across
markets concerning reviews of
potentially clearly erroneous executions
in various contexts.
Additionally, extension of the pilot to
February 4, 2013 will 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.7
4 See Securities Exchange Act Release No. 62885
(September 10, 2010), 75 FR 56641 (September 16,
2010) (‘‘Order Approving File No. SR–FINRA–
2010–032’’). See also Securities Exchange Act
Release No. 65101 (August 11, 2011), 76 FR 51097
(August 17, 2011) (Notice of Filing and Immediate
Effectiveness of File No. SR–FINRA–2011–039).
5 See Order Approving File No. SR–FINRA–2010–
032.
6 15 U.S.C. 78o–3(b)(6).
7 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).
VerDate Mar<15>2010
15:11 Aug 07, 2012
Jkt 226001
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 8 and Rule
19b–4(f)(6) thereunder.9 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act10 and Rule 19b–4(f)(6)(iii)
thereunder.11
A proposed rule change filed under
Rule 19b–4(f)(6) 12 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii) 13 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
8 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
10 15 U.S.C. 78s(b)(3)(A).
11 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.
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
9 17
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
pilot program. For this reason, the
Commission designates the proposed
rule change to be operative upon
filing.14
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–2012–038 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–2012–038. 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
14 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).
E:\FR\FM\08AUN1.SGM
08AUN1
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
VerDate Mar<15>2010
15:11 Aug 07, 2012
Jkt 226001
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
Frm 00112
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).
E:\FR\FM\08AUN1.SGM
08AUN1
]]>Agencies
[Federal Register Volume 77, Number 153 (Wednesday, August 8, 2012)]
[Notices]
[Pages 47467-47469]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-19382]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67579; File No. SR-FINRA-2012-038]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Extend the Pilot Period of Amendments to FINRA
Rule 11892 Governing Clearly Erroneous Transactions
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 11892 (Clearly Erroneous
Transactions in Exchange-Listed Securities) 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 11892.02 to extend the effective
date of the amendments set forth in File No. SR-FINRA-2010-032 (the
``pilot''), which are currently scheduled to expire on July 31,
2012,\3\ until February 4, 2013.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 66254 (January 26,
2012), 77 FR 5084 (February 1, 2012) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2012-005).
---------------------------------------------------------------------------
The pilot was drafted in consultation with other self-regulatory
organizations (``SROs'') and Commission staff to provide for uniform
treatment: (1) Of
[[Page 47468]]
clearly erroneous execution reviews in Multi-Stock Events involving
twenty or more securities; and (2) in the event transactions occur that
result in the issuance of an individual stock trading pause by the
primary listing market and subsequent transactions that occur before
the trading pause is in effect for transactions otherwise than on an
exchange.\4\ FINRA also implemented additional changes to the Rule as
part of the pilot that reduce the ability of FINRA to deviate from the
objective standards set forth in the Rule.\5\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 62885 (September 10,
2010), 75 FR 56641 (September 16, 2010) (``Order Approving File No.
SR-FINRA-2010-032''). See also Securities Exchange Act Release No.
65101 (August 11, 2011), 76 FR 51097 (August 17, 2011) (Notice of
Filing and Immediate Effectiveness of File No. SR-FINRA-2011-039).
\5\ See Order Approving File No. SR-FINRA-2010-032.
---------------------------------------------------------------------------
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,
including whether additional measures should be added, whether the
parameters of the rule should be modified 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,\6\ 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 is
consistent with the clearly erroneous rules of other SROs and will
promote the goal of transparency and uniformity across markets
concerning reviews of potentially clearly erroneous executions in
various contexts.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
Additionally, extension of the pilot to February 4, 2013 will 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.\7\
---------------------------------------------------------------------------
\7\ 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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act\10\ and Rule 19b-
4(f)(6)(iii) thereunder.\11\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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) \12\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \13\ 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.
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\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
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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.\14\
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\14\ 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).
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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.
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-2012-038 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-2012-038. 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
[[Page 47469]]
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\
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\15\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-19382 Filed 8-7-12; 8:45 am]
BILLING CODE 8011-01-P
