Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update Rule Cross-References and Make Non-Substantive Technical Changes to Certain FINRA Rules, 19954-19956 [2014-07990]
Download as PDF
19954
Federal Register / Vol. 79, No. 69 / Thursday, April 10, 2014 / Notices
substantive changes to the Exchange’s
operations or its rules.
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 comments on the proposed
rule change.
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 for 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 8 and Rule 19b–4(f)(6)(iii)
thereunder.9
A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii) 11 the Commission
may 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 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 Exchange to continue to
list mini options on the Google Class A
shares following the issuance of a new
class of Google shares (class C) on April
2, 2014. For this reason, the
Commission designates the proposed
rule change to be operative upon
filing.12
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii). As required under
Rule 19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the 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.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 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).
sroberts on DSK5SPTVN1PROD with NOTICES
9 17
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18:14 Apr 09, 2014
Jkt 232001
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
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:
BILLING CODE 8011–01–P
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–BOX–2014–13 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BOX–2014–13. 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 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–BOX–
2014–13 and should be submitted on or
before May 1, 2014.
PO 00000
Frm 00090
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[FR Doc. 2014–07992 Filed 4–9–14; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71868; File No. SR–FINRA–
2014–016]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Update Rule CrossReferences and Make Non-Substantive
Technical Changes to Certain FINRA
Rules
April 4, 2014.
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 March 31,
2014, 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, II,
and III below, which Items have been
prepared by FINRA. FINRA has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
change under paragraph (f)(6) of Rule
19b–4 under the Act,3 which renders
the proposal effective upon receipt of
this filing by the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
FINRA is proposing to update crossreferences and make other nonsubstantive changes within FINRA
rules, primarily as the result of approval
of new consolidated FINRA rules.
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
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
E:\FR\FM\10APN1.SGM
10APN1
Federal Register / Vol. 79, No. 69 / Thursday, April 10, 2014 / Notices
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
sroberts on DSK5SPTVN1PROD with NOTICES
1. Purpose
FINRA is in the process of developing
a consolidated rulebook (‘‘Consolidated
FINRA Rulebook’’).4 That process
involves FINRA submitting to the
Commission for approval a series of
proposed rule changes over time to
adopt rules in the Consolidated FINRA
Rulebook. The phased adoption and
implementation of those rules
necessitates periodic amendments to
update rule cross-references and other
non-substantive changes in the
Consolidated FINRA Rulebook.
The proposed rule change would
make several such changes, as well as
other non-substantive changes unrelated
to the adoption of rules in the
Consolidated FINRA Rulebook.
First, the proposed rule change would
update rule cross-references to reflect
the adoption of new consolidated
financial and operational rules. On
November 27, 2013, the SEC approved
a proposed rule change to adopt
Incorporated NYSE Rules 296 and 402
as FINRA Rules 4314, 4330 and 4340,
with several changes. FINRA also
deleted in their entirety the
corresponding NASD Rules 2330 and
NASD Interpretive Materials 2330.5 The
new rules will be implemented on May
1, 2014. As such, the proposed rule
change would update references to the
new rule numbers in FINRA Rules 0150
(Application of Rules to Exempted
Securities Except Municipal Securities),
6630 (Applicability of FINRA Rules to
4 The current FINRA rulebook consists of (1)
FINRA Rules; (2) NASD Rules; and (3) rules
incorporated from NYSE (‘‘Incorporated NYSE
Rules’’) (together, the NASD Rules and Incorporated
NYSE Rules are referred to as the ‘‘Transitional
Rulebook’’). While the NASD Rules generally apply
to all FINRA members, the Incorporated NYSE
Rules apply only to those members of FINRA that
are also members of the NYSE (‘‘Dual Members’’).
The FINRA Rules apply to all FINRA members,
unless such rules have a more limited application
by their terms. For more information about the
rulebook consolidation process, see Information
Notice, March 12, 2008 (Rulebook Consolidation
Process).
5 See Securities Exchange Act Release No. 70958
(November 27, 2013), 78 FR 72951 (December 4,
2013) (Order Approving File No. SR–FINRA–2013–
035).
VerDate Mar<15>2010
18:14 Apr 09, 2014
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Securities Previously Designated as
PORTAL Securities) and 9810 (Initiation
of Proceeding).
Second, the proposed rule change
would make technical changes to
FINRA Rule 2111.01 (General Principle)
to reflect FINRA Manual style
convention changes.
Third, FINRA is proposing to make
non-substantive changes to FINRA Rule
6272 (Character of Quotations) to update
cross-references resulting from changes
adopted in a FINRA proposed rule
change regarding Firm Quotations.6
Finally, the proposed rule change
would also delete from FINRA Manual
the Series heading for NASD Rule 2100
(General Standards) and IM–2110–1
(Reserved) to reflect that the NASD Rule
2100 Series have fully been
consolidated into the FINRA Rules.7
FINRA has filed the proposed rule
change for immediate effectiveness. The
implementation date for the proposed
rule change will be May 1, 2014.
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 believes the
proposed rule change will provide
greater clarity to members and the
public regarding FINRA’s rules.
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. The
proposed rule change brings clarity and
consistency to FINRA rules without
adding any burden on firms.
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.
6 See Securities Exchange Act Release No. 63255
(November 5, 2010), 75 FR 69484 (November 12,
2010) (Order Approving File No. SR–FINRA–2010–
049).
7 Securities Exchange Act Release No. 67774
(September 4, 2012), 77 FR 55519 (September 10,
2012) (Order Approving File No. SR–FINRA–2012–
025).
8 15 U.S.C. 78o–3(b)(6).
PO 00000
Frm 00091
Fmt 4703
Sfmt 4703
19955
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 9 and Rule 19b–
4(f)(6) thereunder.10
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–2014–016 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–FINRA–2014–016. 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
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 17
E:\FR\FM\10APN1.SGM
10APN1
19956
Federal Register / Vol. 79, No. 69 / Thursday, April 10, 2014 / Notices
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
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of
FINRA. All comments received will be
posted without change; the Commission
does not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–FINRA–2014–016 and
should be submitted on or before May
1, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–07990 Filed 4–9–14; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–71881; File No. SR–MIAX–
2014–14]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Extend the Pilot Period
Applicable to Rule 530 Relating to
Limit Up/Limit Down
sroberts on DSK5SPTVN1PROD with NOTICES
April 4, 2014.
Pursuant to the provisions of 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 April 3, 2014, Miami International
Securities Exchange LLC (‘‘MIAX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a proposed rule change
as described in Items I and II 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.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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18:14 Apr 09, 2014
Jkt 232001
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
SECURITIES AND EXCHANGE
COMMISSION
11 17
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend Rule 530 to extend the pilot
period for the treatment of erroneous
transactions during a Limit or Straddle
State.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.miaxoptions.com/filter/
wotitle/rule_filing, at MIAX’s principal
office, and at the Commission’s Public
Reference Room.
1. Purpose
The Exchange proposes to amend
Rule 530 (Limit Up-Limit Down) in
order to (i) extend the pilot period for
the treatment of erroneous transactions
that occur in a Limit or Straddle State
until February 20, 2015; and (ii) to
provide that paragraphs (a)–(i) of the
Rule shall be in effect during a pilot
period to coincide with the pilot period
for the Plan to Address Extraordinary
Market Volatility Pursuant to Rule 608
of Regulation NMS.
Exchange Rule 530(j) provides for the
treatment of erroneous transactions
occurring during Limit and Straddle
States. Specifically, once an NMS Stock
has entered a Limit or Straddle State,
the Exchange will nullify a transaction
in an option overlying such an NMS
Stock as provided in the Rule 530(j).
This provision was adopted for a one
year pilot period beginning on the date
of the implementation of the Plan to
Address Extraordinary Market Volatility
Pursuant to Rule 608 of Regulation
NMS, April 8, 2013.3 The Exchange
3 See Exchange Rule 503(j). See also Securities
Exchange Act Release Nos. 69210 (March 22, 2013),
78 FR 18637 (March 27, 2013) (SR–MIAX–2013–
12); 69342 (April 8, 2013), 78 FR 22017 (April 12,
2013) (SR–MIAX–2013–12); 69234 (March 25,
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
proposes extending the pilot period for
Rule 530(j) until February 20, 2015 in
order to allow the Exchange and the
Commission additional time to collect
and analyze data regarding the impact of
Rule 530(j) on liquidity and market
quality in the options markets.
To assist the Commission in its
analysis, the Exchange will continue to
provide the Commission with data and
analysis during the duration of the pilot
in order to evaluate the impact of Limit
and Straddle States on liquidity and
market quality in the options markets.
Specifically, by September 30, 2014, the
Exchange represents that it shall
provide the Commission assessments
relating to the impact of the obvious
error Rules during Limit and Straddle
States that (i) evaluate the statistical and
economic impact of Limit and Straddle
States on liquidity and market quality in
the options markets; and (ii) assess
whether the lack of obvious error rules
in effect during the Straddle and Limit
States are problematic. Additionally,
each month during the pilot period the
Exchange shall provide to the
Commission and the public a dataset
containing the data for each Straddle
and Limit State in optionable stocks. For
each stock that reaches a Straddle or
Limit State, the number of options
included in the dataset can be reduced
by selecting options in which at least
one (1) trade occurred on the Exchange
during the Straddle or Limit State. For
each of those options affected, each data
record should contain the following
information: (i) Stock symbol, option
symbol, time at the start of the straddle
or limit state, an indicator for whether
it is a straddle or limit state; and (ii) for
activity on the exchange—(A) executed
volume, time-weighted quoted bid-ask
spread, time-weighted average quoted
depth at the bid, time-weighted average
quoted depth at the offer, (B) high
execution price, low execution price, (C)
number of trades for which a request for
review for error was received during
Straddle and Limit States, (D) an
indicator variable for whether those
options outlined above have a price
change exceeding 30% during the
underlying stock’s Limit or Straddle
state compared to the last available
option price as reported by OPRA before
the start of the Limit or Straddle state (1
if observe 30% and 0 otherwise) and
another indicator variable for whether
the option price within five minutes of
the underlying stock leaving the Limit
or Straddle state (or halt if applicable)
is 30% away from the price before the
2013), 78 FR 19344 (March 29, 2013) (SR–MIAX–
2013–15); 69354 (April 9, 2013), 78 FR 22357 (April
15, 2013) (SR–MIAX–2013–15).
E:\FR\FM\10APN1.SGM
10APN1
Agencies
[Federal Register Volume 79, Number 69 (Thursday, April 10, 2014)]
[Notices]
[Pages 19954-19956]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-07990]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71868; File No. SR-FINRA-2014-016]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Update Rule Cross-References and Make Non-
Substantive Technical Changes to Certain FINRA Rules
April 4, 2014.
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 March 31, 2014, 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,
II, and III below, which Items have been prepared by FINRA. FINRA has
designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under
the Act,\3\ which renders the proposal effective upon receipt of this
filing by the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
FINRA is proposing to update cross-references and make other non-
substantive changes within FINRA rules, primarily as the result of
approval of new consolidated FINRA rules.
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
[[Page 19955]]
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 is in the process of developing a consolidated rulebook
(``Consolidated FINRA Rulebook'').\4\ That process involves FINRA
submitting to the Commission for approval a series of proposed rule
changes over time to adopt rules in the Consolidated FINRA Rulebook.
The phased adoption and implementation of those rules necessitates
periodic amendments to update rule cross-references and other non-
substantive changes in the Consolidated FINRA Rulebook.
---------------------------------------------------------------------------
\4\ The current FINRA rulebook consists of (1) FINRA Rules; (2)
NASD Rules; and (3) rules incorporated from NYSE (``Incorporated
NYSE Rules'') (together, the NASD Rules and Incorporated NYSE Rules
are referred to as the ``Transitional Rulebook''). While the NASD
Rules generally apply to all FINRA members, the Incorporated NYSE
Rules apply only to those members of FINRA that are also members of
the NYSE (``Dual Members''). The FINRA Rules apply to all FINRA
members, unless such rules have a more limited application by their
terms. For more information about the rulebook consolidation
process, see Information Notice, March 12, 2008 (Rulebook
Consolidation Process).
---------------------------------------------------------------------------
The proposed rule change would make several such changes, as well
as other non-substantive changes unrelated to the adoption of rules in
the Consolidated FINRA Rulebook.
First, the proposed rule change would update rule cross-references
to reflect the adoption of new consolidated financial and operational
rules. On November 27, 2013, the SEC approved a proposed rule change to
adopt Incorporated NYSE Rules 296 and 402 as FINRA Rules 4314, 4330 and
4340, with several changes. FINRA also deleted in their entirety the
corresponding NASD Rules 2330 and NASD Interpretive Materials 2330.\5\
The new rules will be implemented on May 1, 2014. As such, the proposed
rule change would update references to the new rule numbers in FINRA
Rules 0150 (Application of Rules to Exempted Securities Except
Municipal Securities), 6630 (Applicability of FINRA Rules to Securities
Previously Designated as PORTAL Securities) and 9810 (Initiation of
Proceeding).
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 70958 (November 27,
2013), 78 FR 72951 (December 4, 2013) (Order Approving File No. SR-
FINRA-2013-035).
---------------------------------------------------------------------------
Second, the proposed rule change would make technical changes to
FINRA Rule 2111.01 (General Principle) to reflect FINRA Manual style
convention changes.
Third, FINRA is proposing to make non-substantive changes to FINRA
Rule 6272 (Character of Quotations) to update cross-references
resulting from changes adopted in a FINRA proposed rule change
regarding Firm Quotations.\6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 63255 (November 5,
2010), 75 FR 69484 (November 12, 2010) (Order Approving File No. SR-
FINRA-2010-049).
---------------------------------------------------------------------------
Finally, the proposed rule change would also delete from FINRA
Manual the Series heading for NASD Rule 2100 (General Standards) and
IM-2110-1 (Reserved) to reflect that the NASD Rule 2100 Series have
fully been consolidated into the FINRA Rules.\7\
---------------------------------------------------------------------------
\7\ Securities Exchange Act Release No. 67774 (September 4,
2012), 77 FR 55519 (September 10, 2012) (Order Approving File No.
SR-FINRA-2012-025).
---------------------------------------------------------------------------
FINRA has filed the proposed rule change for immediate
effectiveness. The implementation date for the proposed rule change
will be May 1, 2014.
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 believes the proposed rule change will provide
greater clarity to members and the public regarding FINRA's rules.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78o-3(b)(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. The proposed rule change brings
clarity and consistency to FINRA rules without adding any burden on
firms.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
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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-2014-016 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2014-016. 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
[[Page 19956]]
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
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of FINRA. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-FINRA-2014-016 and should be
submitted on or before May 1, 2014.
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. 2014-07990 Filed 4-9-14; 8:45 am]
BILLING CODE 8011-01-P