Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of a Proposed Rule Change To Amend FINRA Rule 8312 (FINRA BrokerCheck Disclosure) To Include Information About Members and Their Associated Persons of Any Registered National Securities Exchange That Uses the CRD System for Registration Purposes, 69732-69734 [2013-27760]
Download as PDF
69732
Federal Register / Vol. 78, No. 224 / Wednesday, November 20, 2013 / Notices
In this regard and as indicated above,
the Exchange notes that the rule change
is being proposed as a competitive
response to similar filings by other
options exchanges. The Exchange
believes this proposed rule change is
necessary to permit fair competition
among the options exchanges and to
establish uniform positions for a
multiply listed options class.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
IV. Solicitation of Comments
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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,
the proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 7 and subparagraph (f)(6) of
Rule 19b–4 thereunder.8
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 9 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 10
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay. The Exchange believes
that waiver of the 30-day operative
delay is appropriate and will benefit
market participants because immediate
operability will allow the SPY Pilot
Program to continue without
interruption. The Commission believes
that waiving the 30-day operative delay
is consistent with the protection of
investors and the public interest.
Therefore, the Commission hereby
waives the 30-day operative delay and
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, 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, 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
has satisfied this requirement.
9 17 CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
tkelley on DSK3SPTVN1PROD with NOTICES
8 17
VerDate Mar<15>2010
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Jkt 232001
designates the proposal operative upon
filing.11
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 will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
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–Phlx–2013–108 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–Phlx–2013–108. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
11 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).
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
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–Phlx–
2013–108 and should be submitted on
or before December 11, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–27759 Filed 11–19–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70880; File No. SR–FINRA–
2013–047]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a
Proposed Rule Change To Amend
FINRA Rule 8312 (FINRA BrokerCheck
Disclosure) To Include Information
About Members and Their Associated
Persons of Any Registered National
Securities Exchange That Uses the
CRD System for Registration Purposes
November 14, 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
1, 2013, the Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by FINRA. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to amend FINRA
Rule 8312 (FINRA BrokerCheck
Disclosure) to include in BrokerCheck
information about members and their
associated persons of any registered
national securities exchange that uses
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\20NON1.SGM
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Federal Register / Vol. 78, No. 224 / Wednesday, November 20, 2013 / Notices
the Central Registration Depository
(‘‘CRD®’’) for registration purposes. The
proposed rule change also would make
non-substantive technical changes to
FINRA Rule 8312 to reflect a change in
FINRA’s style convention for
referencing the CRD system.
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. FINRA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
tkelley on DSK3SPTVN1PROD with NOTICES
1. Purpose
FINRA BrokerCheck provides the
public with information on the
professional background, business
practices, and conduct of FINRA
member firms and their associated
persons. The information that FINRA
releases to the public through
BrokerCheck is derived from the CRD
system, the securities industry online
registration and licensing database.
FINRA member firms, their associated
persons, and regulators report
information to the CRD system via the
uniform registration forms. By making
most of this information publicly
available, BrokerCheck, among other
things, helps investors make informed
choices about the individuals and firms
with which they conduct
business.BrokerCheck allows investors
and others to obtain registration
information about firms and their
associated persons by telephone 3 and
the Internet.4
In 2006, Congress amended Section
15A(i) of the Act 5 with the enactment
of the Military Personnel Financial
3 The BrokerCheck Hotline telephone number is
(800) 289–9999.
4 BrokerCheck is available online at https://
www.finra.org/Investors/ToolsCalculators/
BrokerCheck.
5 15 U.S.C. 78o–3(i).
VerDate Mar<15>2010
16:04 Nov 19, 2013
Jkt 232001
Services Protection Act (‘‘MPFSPA’’).6
The amendment requires, among other
things, that FINRA, as a registered
securities association, maintain a tollfree telephone listing and a readily
accessible electronic or other process to
receive and promptly respond to
inquiries regarding (i) registration
information on its members and their
associated persons, and (ii) registration
information on the members and their
associated persons of any registered
national securities exchange that uses
the CRD system for the registration of its
members and their associated persons
(‘‘CRD Exchange’’).7
The registration information currently
available through BrokerCheck is
limited to firms and individuals that are
currently or were previously registered
with FINRA. BrokerCheck does not
contain information regarding firms or
individuals whose registrations have
been exclusively with a registered
national securities exchange (although
such information is contained in the
CRD system).
The proposed rule change would
amend FINRA Rule 8312 to include
these non-FINRA member firms and
their associated persons in BrokerCheck.
Specifically, the proposed rule change
would make publicly available in
BrokerCheck information about
members and their associated persons of
any CRD Exchange.8 The information
that would be disclosed through
BrokerCheck about CRD Exchange
members and their associated persons
would be the same as the information
disclosed about FINRA members and
their associated persons pursuant to
FINRA Rule 8312. CRD Exchange
members and their associated persons
would be able to dispute inaccuracies in
their BrokerCheck reports as provided
for in FINRA Rule 8312(e).
The proposed rule change also would
make non-substantive technical changes
to FINRA Rule 8312 to reflect a change
in FINRA’s style convention for
referencing the CRD system.
6 Public
Law 109–290, 120 Stat. 1317 (2006).
purposes of Section 15A(i) of the Act,
registration information is defined as ‘‘the
information reported in connection with the
registration or licensing of brokers and dealers and
their associated persons, including disciplinary
actions, regulatory, judicial, and arbitration
proceedings, and other information required by law,
or exchange or association rule, and the source and
status of such information.’’
8 Firms and individuals that have been registered
exclusively with a CRD Exchange will be included
in BrokerCheckonly if such registration occurred on
or after August 16, 1999. Filings for those firms and
individuals whose registrations terminated prior to
August 16, 1999 were not made electronically so
BrokerCheck reports for such firms and individuals
cannot be made in an automated fashion. See
proposed Supplementary Material .03 to FINRA
Rule 8312.
7 For
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
69733
FINRA will announce the effective
date of the proposed rule change in a
Regulatory Notice to be published no
later than 60 days following
Commission approval. The effective
date will be no later than 180 days
following publication of the Regulatory
Notice announcing Commission
approval.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,9 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. FINRA believes that the
proposed rule change will enhance
investor protection by providing
investors and other users of
BrokerCheck with information regarding
the professional background, business
practices, and conduct of additional
firms and their associated persons.
FINRA also believes that the proposed
rule change is consistent with the
provisions of Section 15A(i)(1) of the
Act,10 which requires, among other
things, that FINRA maintain a toll-free
telephone listing and a readily
accessible electronic or other process to
receive and promptly respond to
inquiries regarding registration
information on CRD Exchange members
and their associated persons. FINRA
believes that the proposed rule change
satisfies this requirement by expanding
BrokerCheck to include registration
information about CRD Exchange
members and their associated persons.
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. As discussed
above, Section 15A(i) of the Act requires
FINRA to maintain a toll-free telephone
listing and a readily accessible
electronic or other process to respond to
inquiries regarding registration
information on FINRA members and
their associated persons, as well as CRD
Exchange members and their associated
persons. BrokerCheck is the program by
which FINRA releases to the public
registration information on its members
and their associated persons and,
consistent with Section 15A(i) of the
Act, FINRA intends to expand
9 15
U.S.C. 78o–3(b)(6).
U.S.C. 78o–3(i)(1).
10 15
E:\FR\FM\20NON1.SGM
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69734
Federal Register / Vol. 78, No. 224 / Wednesday, November 20, 2013 / Notices
BrokerCheck to include CRD Exchange
members and their associated persons.
The proposed rule change will enhance
consistency with respect to the
information available via BrokerCheck
by providing public access to the same
information for FINRA and CRD
Exchange members and their associated
persons. Such information allows
investors to make informed choices
about the individuals and firms with
which they conduct business. FINRA
does not anticipate that the proposed
rule change will impose any costs or
burdens on CRD Exchange members or
their associated persons. Specifically,
FINRA expects that the only costs
associated with the proposed rule
change will involve programming
changes to BrokerCheck, which will be
borne by FINRA. No action will be
required on the part of CRD Exchange
members or their associated persons to
implement the proposed rule change. In
addition, the proposed rule change will
have no impact on the reporting
requirements or registration process for
CRD Exchange members or their
associated persons.
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.
tkelley on DSK3SPTVN1PROD with NOTICES
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
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
VerDate Mar<15>2010
16:04 Nov 19, 2013
Jkt 232001
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
FINRA–2013–047 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–2013–047. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 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–
2013–047 and should be submitted on
or before December 11, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–27760 Filed 11–19–13; 8:45 am]
BILLING CODE 8011–01–P
11 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00095
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70881; File No. SR–NSX–
2013–20]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Amending
Exchange Rule 11.11 Regarding the
Entry and Execution of Zero Display
Reserve Orders Marked ‘‘Sell Short’’
November 14, 2013.
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 November
4, 2013, National Stock Exchange, Inc.
(‘‘NSX®’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change, as described in
Items I and II below, which Items have
been substantially prepared by the
Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange has filed the proposed
rule change to amend subparagraph
(c)(2)(E) of Rule 11.11 (Orders and
Modifiers) regarding the manner in
which the Exchange’s Trading System
(the ‘‘System’’) 3 handles Zero Display
Reserve Orders 4 marked ‘‘sell short’’
entered by Exchange Users 5 in a
security that is the subject of a short sale
price test restriction under Rule 201 of
Regulation SHO 6 pursuant to the Act.
The proposed amendment removes a
requirement that the System will reject
all Zero Display Reserve Orders marked
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 NSX Rule 1.5 defines the term ‘‘System’’ to
mean the electronic securities communications and
trading facility designated by the Board through
which orders of Users are consolidated for ranking
and execution.
4 Under Exchange Rule 11.11(c)(2), a Reserve
Order is defined as a limit order with a portion of
the quantity displayed (‘‘display quantity’’) and
with a reserve portion of the quantity that is not
displayed. Rule 11.11(c)(2)(A) provides, in relevant
part, that a Reserve Order can be entered with a
displayed quantity of zero, in which case the
Reserve Order will be known as a ‘‘Zero Display
Reserve Order.’’
5 NSX Rule 1.5 defines the term ‘‘User’’ to mean
any ETP Holder or Sponsored Participant who is
authorized to obtain access to the System pursuant
to Rule 11.9 (Access).
6 17 CFR 242.201. See Securities Exchange Act
Release No. 61595 (February 26, 2010), 75 FR 11232
(March 10, 2010) and Securities Exchange Act
Release No. 63247 (Nov. 4, 2010), 75 FR 68702
(Nov. 9, 2010).
2 17
E:\FR\FM\20NON1.SGM
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Agencies
[Federal Register Volume 78, Number 224 (Wednesday, November 20, 2013)]
[Notices]
[Pages 69732-69734]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-27760]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70880; File No. SR-FINRA-2013-047]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a Proposed Rule Change To Amend
FINRA Rule 8312 (FINRA BrokerCheck Disclosure) To Include Information
About Members and Their Associated Persons of Any Registered National
Securities Exchange That Uses the CRD System for Registration Purposes
November 14, 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 1, 2013, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by FINRA. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to amend FINRA Rule 8312 (FINRA BrokerCheck
Disclosure) to include in BrokerCheck information about members and
their associated persons of any registered national securities exchange
that uses
[[Page 69733]]
the Central Registration Depository (``CRD[supreg]'') for registration
purposes. The proposed rule change also would make non-substantive
technical changes to FINRA Rule 8312 to reflect a change in FINRA's
style convention for referencing the CRD system.
The text of the proposed rule change is available on FINRA's Web
site at https://www.finra.org, at the principal office of FINRA and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
FINRA BrokerCheck provides the public with information on the
professional background, business practices, and conduct of FINRA
member firms and their associated persons. The information that FINRA
releases to the public through BrokerCheck is derived from the CRD
system, the securities industry online registration and licensing
database. FINRA member firms, their associated persons, and regulators
report information to the CRD system via the uniform registration
forms. By making most of this information publicly available,
BrokerCheck, among other things, helps investors make informed choices
about the individuals and firms with which they conduct
business.BrokerCheck allows investors and others to obtain registration
information about firms and their associated persons by telephone \3\
and the Internet.\4\
---------------------------------------------------------------------------
\3\ The BrokerCheck Hotline telephone number is (800) 289-9999.
\4\ BrokerCheck is available online at https://www.finra.org/Investors/ToolsCalculators/BrokerCheck.
---------------------------------------------------------------------------
In 2006, Congress amended Section 15A(i) of the Act \5\ with the
enactment of the Military Personnel Financial Services Protection Act
(``MPFSPA'').\6\ The amendment requires, among other things, that
FINRA, as a registered securities association, maintain a toll-free
telephone listing and a readily accessible electronic or other process
to receive and promptly respond to inquiries regarding (i) registration
information on its members and their associated persons, and (ii)
registration information on the members and their associated persons of
any registered national securities exchange that uses the CRD system
for the registration of its members and their associated persons (``CRD
Exchange'').\7\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78o-3(i).
\6\ Public Law 109-290, 120 Stat. 1317 (2006).
\7\ For purposes of Section 15A(i) of the Act, registration
information is defined as ``the information reported in connection
with the registration or licensing of brokers and dealers and their
associated persons, including disciplinary actions, regulatory,
judicial, and arbitration proceedings, and other information
required by law, or exchange or association rule, and the source and
status of such information.''
---------------------------------------------------------------------------
The registration information currently available through
BrokerCheck is limited to firms and individuals that are currently or
were previously registered with FINRA. BrokerCheck does not contain
information regarding firms or individuals whose registrations have
been exclusively with a registered national securities exchange
(although such information is contained in the CRD system).
The proposed rule change would amend FINRA Rule 8312 to include
these non-FINRA member firms and their associated persons in
BrokerCheck. Specifically, the proposed rule change would make publicly
available in BrokerCheck information about members and their associated
persons of any CRD Exchange.\8\ The information that would be disclosed
through BrokerCheck about CRD Exchange members and their associated
persons would be the same as the information disclosed about FINRA
members and their associated persons pursuant to FINRA Rule 8312. CRD
Exchange members and their associated persons would be able to dispute
inaccuracies in their BrokerCheck reports as provided for in FINRA Rule
8312(e).
---------------------------------------------------------------------------
\8\ Firms and individuals that have been registered exclusively
with a CRD Exchange will be included in BrokerCheckonly if such
registration occurred on or after August 16, 1999. Filings for those
firms and individuals whose registrations terminated prior to August
16, 1999 were not made electronically so BrokerCheck reports for
such firms and individuals cannot be made in an automated fashion.
See proposed Supplementary Material .03 to FINRA Rule 8312.
---------------------------------------------------------------------------
The proposed rule change also would make non-substantive technical
changes to FINRA Rule 8312 to reflect a change in FINRA's style
convention for referencing the CRD system.
FINRA will announce the effective date of the proposed rule change
in a Regulatory Notice to be published no later than 60 days following
Commission approval. The effective date will be no later than 180 days
following publication of the Regulatory Notice announcing Commission
approval.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\9\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes that the proposed rule change will
enhance investor protection by providing investors and other users of
BrokerCheck with information regarding the professional background,
business practices, and conduct of additional firms and their
associated persons.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
FINRA also believes that the proposed rule change is consistent
with the provisions of Section 15A(i)(1) of the Act,\10\ which
requires, among other things, that FINRA maintain a toll-free telephone
listing and a readily accessible electronic or other process to receive
and promptly respond to inquiries regarding registration information on
CRD Exchange members and their associated persons. FINRA believes that
the proposed rule change satisfies this requirement by expanding
BrokerCheck to include registration information about CRD Exchange
members and their associated persons.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78o-3(i)(1).
---------------------------------------------------------------------------
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. As discussed above, Section
15A(i) of the Act requires FINRA to maintain a toll-free telephone
listing and a readily accessible electronic or other process to respond
to inquiries regarding registration information on FINRA members and
their associated persons, as well as CRD Exchange members and their
associated persons. BrokerCheck is the program by which FINRA releases
to the public registration information on its members and their
associated persons and, consistent with Section 15A(i) of the Act,
FINRA intends to expand
[[Page 69734]]
BrokerCheck to include CRD Exchange members and their associated
persons. The proposed rule change will enhance consistency with respect
to the information available via BrokerCheck by providing public access
to the same information for FINRA and CRD Exchange members and their
associated persons. Such information allows investors to make informed
choices about the individuals and firms with which they conduct
business. FINRA does not anticipate that the proposed rule change will
impose any costs or burdens on CRD Exchange members or their associated
persons. Specifically, FINRA expects that the only costs associated
with the proposed rule change will involve programming changes to
BrokerCheck, which will be borne by FINRA. No action will be required
on the part of CRD Exchange members or their associated persons to
implement the proposed rule change. In addition, the proposed rule
change will have no impact on the reporting requirements or
registration process for CRD Exchange members or their associated
persons.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-FINRA-2013-047 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-2013-047. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 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-2013-047 and should be
submitted on or before December 11, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-27760 Filed 11-19-13; 8:45 am]
BILLING CODE 8011-01-P