Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Tier Size Pilot of FINRA Rule 6433 (Minimum Quotation Size Requirements for OTC Equity Securities), 68893-68895 [2013-27322]
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Federal Register / Vol. 78, No. 221 / Friday, November 15, 2013 / Notices
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
The Exchange filed the proposed rule
change pursuant to Exchange Act
Section 19(b)(3)(A) 14 and Rule 19b–
4(f)(6) 15 thereunder. 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
for 30 days after the date of the filing,
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 Exchange
Act Section 19(b)(3)(A) and Rule 19b–
4(f)(6) thereunder.16
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing. Pursuant to Rule 19b–
4(f)(6)(iii), however, the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest.17
The Exchange 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
because it will allow the Exchange to
immediately conform its rules to
corresponding FINRA rules. This will
ensure that such EDGA rules will
continue to be covered by the existing
17d–2 Agreement between the Exchange
and FINRA. As noted by the Exchange,
amending EDGA Rule 3.5 would
harmonize Exchange and FINRA rules
of similar purpose reducing duplicative
regulation of Common Members. In
addition, the Commission believes that
the repeal of Rule 3.20 would eliminate
emcdonald on DSK67QTVN1PROD with NOTICES
14 15
U.S.C. 78s(b)(3)(A).
supra note 3.
16 Exchange Act Rule 19b–4(f)(6) also requires the
Exchange to give 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
Exchange satisfied this requirement.
17 17 CFR 240.19b–4(f)(6)(iii).
15 See
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16:58 Nov 14, 2013
Jkt 232001
an unnecessary rule from the
Exchange’s rulebook. Accordingly, the
Commission hereby grants the
Exchange’s request and waives the 30day operative delay.18
At any time within sixty (60) days of
the filing of such proposed rule change,
the Commission may summarily
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 Exchange 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 Exchange
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–
EDGA–2013–32 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–EDGA–2013–32. 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
Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all
subsequent amendments, all written
statements with respect to the proposed
rule change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
18 For purposes of waiving the 30-day operative
delay, the Commission has considered the proposed
rule’s impact on efficiency, competition and capital
formation. See 15 U.S.C. 78c(f).
PO 00000
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Fmt 4703
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68893
filing also will 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–EDGA–
2013–32 and should be submitted on or
before December 6, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–27321 Filed 11–14–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70839; File No. SR–FINRA–
2013–049]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Tier Size
Pilot of FINRA Rule 6433 (Minimum
Quotation Size Requirements for OTC
Equity Securities)
November 8, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
5, 2013, the 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. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
FINRA is proposing to amend FINRA
Rule 6433 (Minimum Quotation Size
Requirements for OTC Equity
Securities) to extend the tier size pilot,
which currently is scheduled to expire
on November 12, 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.
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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68894
Federal Register / Vol. 78, No. 221 / Friday, November 15, 2013 / Notices
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. FINRA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
emcdonald on DSK67QTVN1PROD with NOTICES
1. Purpose
FINRA proposes to amend FINRA
Rule 6433 (Minimum Quotation Size
Requirements for OTC Equity
Securities) (the ‘‘Rule’’) to extend the
amendments set forth in File No. SR–
FINRA–2011–058 (the ‘‘tier size pilot’’),
which currently are scheduled to expire
on November 12, 2013, through
November 14, 2014.3
On October 6, 2011, FINRA filed with
the SEC a proposed rule change to
amend the minimum quotation sizes (or
‘‘tier sizes’’) for OTC equity securities 4
to, among other things, simplify the tier
structure, facilitate the display of
customer limit orders, and expand the
scope of the Rule to apply to additional
quoting participants.5 During the
proposal process, the SEC received a
number of comments and, in response,
FINRA proposed that the new tier sizes
operate on a pilot basis for one year to
allow FINRA and the SEC to better
analyze the impact of the revised tier
sizes.
To effectively assess the impact of the
tier size pilot on quoted OTC equity
securities, FINRA has collected and
provided to the Commission certain preand post-pilot data, including:
• The price of the first trade of each
trading day executed at or after 9:30:00
a.m., based on execution time.
• The price of the last trade of each
trading day executed at or before 4:00:00
p.m., based on execution time.
3 See Securities Exchange Act Release No. 67208
(June 15, 2012), 77 FR 37458 (June 21, 2012) (Order
Approving File No. SR–FINRA–2011–058).
4 ‘‘OTC Equity Security’’ means any equity
security that is not an ‘‘NMS stock’’ as that term is
defined in Rule 600(b)(47) of SEC Regulation NMS;
provided, however, that the term OTC Equity
Security shall not include any Restricted Equity
Security. See FINRA Rule 6420(f).
5 See Securities Exchange Act Release No. 65568
(October 14, 2011), 76 FR 65307 (October 20, 2011)
(Notice of Filing of File No. SR–FINRA–2011–058).
VerDate Mar<15>2010
16:58 Nov 14, 2013
Jkt 232001
• Daily share volume.
• Daily dollar volume.
• Number of limit orders from
customers and in total.
• Percentage of the day that the size
of the BBO equals the minimum quote
size.
• Number of market makers actively
quoting.
• Number of executions from a limit
order and number of limit orders at the
BBO or better by tier size from a
customer and in total.
• Liquidity/BBO metrics
Æ Time-weighted quoted spread.
Æ Effective spread.
Æ Time-weighted quoted depth
(number of shares) at the inside.
Æ Time-weighted quoted depth
(dollar value of shares) at the inside.
Amendment No. 2 specified, among
other things, that: (1) FINRA would
begin submitting the above data for the
period of one year by no later than 90
days after the start of the tier size pilot,
and (2) the data for each month would
be submitted within 20 business days of
the beginning of the following month.6
In Amendment No. 2, FINRA also stated
that, at least 60 days before the
conclusion of the tier size pilot, FINRA
would provide the SEC with an
assessment that addressed the impact of
the pilot, the concerns raised by
commenters during the rule filing
process, and whether the pilot has
resulted in the desired effects. FINRA
submitted this assessment to the
Commission on September 13, 2013.
The purpose of this filing is to extend
the operation of the tier size pilot for an
additional year to provide the SEC with
data over a longer time period so that
the effects of the tier size pilot can be
more thoroughly reviewed.7
Consequently, FINRA will continue to
provide the Commission with the data
noted above, as requested.
FINRA has filed the proposed rule
change for immediate effectiveness. The
effective date of the proposed rule
change will be the date of filing.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,8 which
requires, among other things, that
FINRA rules must be designed to
6 See Amendment No. 2 to File No. SR–FINRA–
2011–058, available at https://www.finra.org/web/
groups/industry/@ip/@reg/@rulfil/documents/
rulefilings/p126817.pdf (‘‘Amendment No. 2’’).
7 The Tier Size Pilot Assessment is part of the
SEC’s comment file for SR–FINRA–2011–058 and
also is available on FINRA’s Web site at: https://
www.finra.org/Industry/Regulation/RuleFilings/
2011/P124615.
8 15 U.S.C. 78o–3(b)(6).
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
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 also believes that
the proposed rule change is consistent
with the provisions of Section
15A(b)(11) of the Act.9 Section
15A(b)(11) requires that FINRA rules
include provisions governing the form
and content of quotations relating to
securities sold otherwise than on a
national securities exchange which may
be distributed or published by any
member or person associated with a
member, and the persons to whom such
quotations may be supplied.
FINRA believes that the extension of
the tier size pilot for an additional year
is consistent with the Act in that it
would provide the Commission with
additional data and more time to
undertake a thorough review of the
submitted data and assessment. FINRA
believes this additional data and time
will enhance the Commission’s ability
to assess the appropriateness of making
the tier size pilot permanent.
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
FINRA has not solicited, and does not
intend to solicit, comments on this
proposed rule change. FINRA has not
received any written comments from
members or other interested parties.
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 10 and Rule 19b–
4(f)(6) thereunder.11
9 15
U.S.C. 78o–3(b)(11).
U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6). Rule 19b–4(f)(6)
requires a self-regulatory organization to give the
Commission written notice of its intent to file 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
10 15
E:\FR\FM\15NON1.SGM
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Federal Register / Vol. 78, No. 221 / Friday, November 15, 2013 / Notices
A proposed rule change filed under
Rule 19b–4(f)(6) 12 normally does not
become operative prior to 30 days after
the date of the 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 waiver of the
operative delay is consistent with the
protection of investors and the public
interest because such waiver will allow
the pilot program to continue without
interruption. Therefore, the Commission
designates the proposal 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. 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:
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 St. NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 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–
2013–049, and should be submitted on
or before December 6,2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–27322 Filed 11–14–13; 8:45 am]
Electronic Comments
BILLING CODE 8011–01–P
• 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–2013–049 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
emcdonald on DSK67QTVN1PROD with NOTICES
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–2013–049. This file
Commission. The Exchange has satisfied this
requirement.
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
14 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Mar<15>2010
16:58 Nov 14, 2013
Jkt 232001
[Release No. 34–70840; File No. SR–Phlx–
2013–110]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to the
Customer Rebate Program
November 8, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on October
31, 2013, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Customer Rebate Program in Section B
of the Pricing Schedule.
While the changes proposed herein
are effective upon filing, the Exchange
has designated that the amendments be
operative on November 1, 2013.
The text of the proposed rule
change is available on the Exchange’s
Web site at https://
nasdaqomxphlx.cchwallstreet.com/, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to lower
certain rebate tier percentage thresholds
in the ‘‘Customer Rebate Program,’’ in
Section B of the Pricing Schedule to
provide members a greater opportunity
to receive Customer rebates.
Currently, the Exchange has a
Customer Rebate Program consisting of
four tiers which pays Customer rebates
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
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E:\FR\FM\15NON1.SGM
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]]>Agencies
[Federal Register Volume 78, Number 221 (Friday, November 15, 2013)]
[Notices]
[Pages 68893-68895]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-27322]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70839; File No. SR-FINRA-2013-049]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Extend the Tier Size Pilot of FINRA Rule 6433
(Minimum Quotation Size Requirements for OTC Equity Securities)
November 8, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on November 5, 2013, the 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. 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 the
Substance of the Proposed Rule Change
FINRA is proposing to amend FINRA Rule 6433 (Minimum Quotation Size
Requirements for OTC Equity Securities) to extend the tier size pilot,
which currently is scheduled to expire on November 12, 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.
[[Page 68894]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
FINRA proposes to amend FINRA Rule 6433 (Minimum Quotation Size
Requirements for OTC Equity Securities) (the ``Rule'') to extend the
amendments set forth in File No. SR-FINRA-2011-058 (the ``tier size
pilot''), which currently are scheduled to expire on November 12, 2013,
through November 14, 2014.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 67208 (June 15,
2012), 77 FR 37458 (June 21, 2012) (Order Approving File No. SR-
FINRA-2011-058).
---------------------------------------------------------------------------
On October 6, 2011, FINRA filed with the SEC a proposed rule change
to amend the minimum quotation sizes (or ``tier sizes'') for OTC equity
securities \4\ to, among other things, simplify the tier structure,
facilitate the display of customer limit orders, and expand the scope
of the Rule to apply to additional quoting participants.\5\ During the
proposal process, the SEC received a number of comments and, in
response, FINRA proposed that the new tier sizes operate on a pilot
basis for one year to allow FINRA and the SEC to better analyze the
impact of the revised tier sizes.
---------------------------------------------------------------------------
\4\ ``OTC Equity Security'' means any equity security that is
not an ``NMS stock'' as that term is defined in Rule 600(b)(47) of
SEC Regulation NMS; provided, however, that the term OTC Equity
Security shall not include any Restricted Equity Security. See FINRA
Rule 6420(f).
\5\ See Securities Exchange Act Release No. 65568 (October 14,
2011), 76 FR 65307 (October 20, 2011) (Notice of Filing of File No.
SR-FINRA-2011-058).
---------------------------------------------------------------------------
To effectively assess the impact of the tier size pilot on quoted
OTC equity securities, FINRA has collected and provided to the
Commission certain pre- and post-pilot data, including:
The price of the first trade of each trading day executed
at or after 9:30:00 a.m., based on execution time.
The price of the last trade of each trading day executed
at or before 4:00:00 p.m., based on execution time.
Daily share volume.
Daily dollar volume.
Number of limit orders from customers and in total.
Percentage of the day that the size of the BBO equals the
minimum quote size.
Number of market makers actively quoting.
Number of executions from a limit order and number of
limit orders at the BBO or better by tier size from a customer and in
total.
Liquidity/BBO metrics
[cir] Time-weighted quoted spread.
[cir] Effective spread.
[cir] Time-weighted quoted depth (number of shares) at the inside.
[cir] Time-weighted quoted depth (dollar value of shares) at the
inside.
Amendment No. 2 specified, among other things, that: (1) FINRA
would begin submitting the above data for the period of one year by no
later than 90 days after the start of the tier size pilot, and (2) the
data for each month would be submitted within 20 business days of the
beginning of the following month.\6\ In Amendment No. 2, FINRA also
stated that, at least 60 days before the conclusion of the tier size
pilot, FINRA would provide the SEC with an assessment that addressed
the impact of the pilot, the concerns raised by commenters during the
rule filing process, and whether the pilot has resulted in the desired
effects. FINRA submitted this assessment to the Commission on September
13, 2013. The purpose of this filing is to extend the operation of the
tier size pilot for an additional year to provide the SEC with data
over a longer time period so that the effects of the tier size pilot
can be more thoroughly reviewed.\7\ Consequently, FINRA will continue
to provide the Commission with the data noted above, as requested.
---------------------------------------------------------------------------
\6\ See Amendment No. 2 to File No. SR-FINRA-2011-058, available
at https://www.finra.org/web/groups/industry/@ip/@reg/@rulfil/documents/rulefilings/p126817.pdf (``Amendment No. 2'').
\7\ The Tier Size Pilot Assessment is part of the SEC's comment
file for SR-FINRA-2011-058 and also is available on FINRA's Web site
at: https://www.finra.org/Industry/Regulation/RuleFilings/2011/P124615.
---------------------------------------------------------------------------
FINRA has filed the proposed rule change for immediate
effectiveness. The effective date of the proposed rule change will be
the date of filing.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\8\ 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 also believes that the proposed rule change is
consistent with the provisions of Section 15A(b)(11) of the Act.\9\
Section 15A(b)(11) requires that FINRA rules include provisions
governing the form and content of quotations relating to securities
sold otherwise than on a national securities exchange which may be
distributed or published by any member or person associated with a
member, and the persons to whom such quotations may be supplied.
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\8\ 15 U.S.C. 78o-3(b)(6).
\9\ 15 U.S.C. 78o-3(b)(11).
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FINRA believes that the extension of the tier size pilot for an
additional year is consistent with the Act in that it would provide the
Commission with additional data and more time to undertake a thorough
review of the submitted data and assessment. FINRA believes this
additional data and time will enhance the Commission's ability to
assess the appropriateness of making the tier size pilot permanent.
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
FINRA has not solicited, and does not intend to solicit, comments
on this proposed rule change. FINRA has not received any written
comments from members or other interested parties.
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 \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). Rule 19b-4(f)(6) requires a self-
regulatory organization to give the Commission written notice of its
intent to file 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 Exchange has
satisfied this requirement.
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[[Page 68895]]
A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative prior to 30 days after the date of the
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.
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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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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 waiver of the operative delay is consistent
with the protection of investors and the public interest because such
waiver will allow the pilot program to continue without interruption.
Therefore, the Commission designates the proposal operative upon
filing.\14\
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\14\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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-2013-049 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-2013-049. 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
St. NE., Washington, DC 20549, on official business days between the
hours of 10:00 a.m. and 3:00 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-2013-
049, and should be submitted on or before December 6, 2013.
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\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-27322 Filed 11-14-13; 8:45 am]
BILLING CODE 8011-01-P
