Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Delay the Implementation Date of Trade Reporting Amendments Approved Pursuant to SR-FINRA-2013-050, 24302-24304 [2015-10039]

Download as PDF 24302 Federal Register / Vol. 80, No. 83 / Thursday, April 30, 2015 / Notices intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that the proposed fees and rebates are competitive with fees and rebates offered to orders executed on other options exchanges. The Exchange operates in a highly competitive market in which market participants can readily direct their order flow to competing venues. In such an environment, the Exchange must continually review, and consider adjusting, its fees and rebates to remain competitive with other exchanges. For the reasons described above, the Exchange believes that the proposed fee changes reflect this competitive environment. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act 19 and subparagraph (f)(2) of Rule 19b–4 thereunder,20 because it establishes a due, fee, or other charge imposed by ISE. At any time within 60 days of the filing of such 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. mstockstill on DSK4VPTVN1PROD with NOTICES IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File No. SR–ISE– 2015–15 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549. All submissions should refer to File No. SR–ISE–2015–15. 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 changes 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 ISE. 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 No. SR–ISE–2015– 15 and should be submitted on or before May 21, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 Brent J. Fields, Secretary. [FR Doc. 2015–10038 Filed 4–29–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74807; File No. SR–FINRA– 2015–008] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Delay the Implementation Date of Trade Reporting Amendments Approved Pursuant to SR–FINRA–2013–050 April 24, 2015. 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 April 21, 2015, 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. 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 delay the implementation date of amendments to the trade reporting rules relating to the Alternative Display Facility (‘‘ADF’’) and the Trade Reporting Facilities (‘‘TRFs’’) approved pursuant to SR– FINRA–2013–050. The proposed rule change would not make any changes to 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 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 15 U.S.C. 78s(b)(1). 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 1 19 15 U.S.C. 78s(b)(3)(A)(ii). 20 17 CFR 240.19b–4(f)(2). VerDate Sep<11>2014 17:01 Apr 29, 2015 2 21 17 Jkt 235001 PO 00000 CFR 200.30–3(a)(12). Frm 00073 Fmt 4703 Sfmt 4703 E:\FR\FM\30APN1.SGM 30APN1 Federal Register / Vol. 80, No. 83 / Thursday, April 30, 2015 / Notices 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 mstockstill on DSK4VPTVN1PROD with NOTICES 1. Purpose On November 12, 2013, FINRA filed proposed rule change SR–FINRA–2013– 050 to On November 12, 2013, FINRA filed proposed rule change SR–FINRA– 2013–050, which among other things, proposed to amend FINRA rules governing the reporting of over-thecounter (‘‘OTC’’) transactions in NMS stocks to the ADF and TRFs. The proposed rule change was approved by the Commission on February 27, 2014.4 The amendments to the ADF and TRF rules relating to millisecond reporting that were approved pursuant to SR– FINRA–2013–050 became effective on November 10, 2014.5 Pursuant to proposed rule change SR– FINRA–2014–039,6 FINRA proposed to implement the remaining amendments to the ADF and TRF trade reporting rules no later than April 30, 2015, and announced an effective date of April 20, 2015.7 Specifically, the amendments to the ADF and TRF rules (i) require firms to report an additional time field for Stop Stock transactions 8 and transactions that reflect an execution price that is based on a prior reference point in time,9 and when reporting block transactions using the exception for Intermarket Sweep Orders (ISOs) (outbound) under SEC Rule 611 of Regulation NMS, if the time the firm routed the ISOs is different from the execution time; 10 (ii) require firms to 4 See Securities Exchange Act Release No. 71623 (February 27, 2014), 79 FR 12558 (March 5, 2014) (Order Approving File No. SR–FINRA–2013–050). 5 The amendments to other rule sets approved pursuant to SR–FINRA–2013–050 are also effective. Specifically, the amendments to the Order Audit Trail System rules became effective on April 7, 2014, and the amendments to the OTC Reporting Facility rules became effective on November 17, 2014. 6 See Securities Exchange Act Release No. 73289 (October 2, 2014), 79 FR 60874 (October 8, 2014) (Notice of Filing and Immediate Effectiveness of File No. SR–FINRA–2014–039). 7 See Regulatory Notice 14–21 (May 2014). 8 See paragraph (F) of Rules 6282(a)(4), 6380A(a)(5) and 6380B(a)(5). ‘‘Stop stock transaction’’ means a transaction resulting from an order in which a firm and another party agree that the order will be executed at a stop stock price or better, which price is based upon the prices at which the security is trading at the time the firm receives the order. See Rules 6220, 6320A and 6320B. 9 See paragraph (G) of Rules 6282(a)(4), 6380A(a)(5) and 6380B(a)(5). 10 See Rules 6282.03, 6380A.03 and 6380B.03. VerDate Sep<11>2014 17:01 Apr 29, 2015 Jkt 235001 identify the original trade when reporting a reversal by including the control number and report date for the original trade report; 11 (iii) require firms to report trades executed on nonbusiness days and trades reported more than 365 days after trade date (T+365) to the ADF or a TRF (and not on ‘‘Form T’’ through FINRA’s Firm Gateway) and further to report non-business day trades on an ‘‘as/of’’ basis by 8:15 a.m. the next business day with the unique trade report modifier to denote their execution outside normal market hours; 12 (iv) provide that where both sides are submitting a clearing-only report to effectuate a step-out, the member transferring out of the position must report a step-out and the member receiving the position must report a ‘‘step-in’’; 13 and (v) address the processing of trades that are submitted for clearing.14 In addition, SR–FINRA– 2013–050 made a number of nonsubstantive technical and conforming changes to the ADF and TRF rules that were otherwise being amended. Firms have requested additional time to make the systems changes necessary to comply with the new reporting requirements, and in particular, have indicated they need additional time to test the systems changes.15 Given the scope of the changes, FINRA believes that it is appropriate to extend the implementation date and is proposing to implement the changes to the ADF and TRF rules approved pursuant to SR– FINRA–2013–050 on July 13, 2015. FINRA believes that this will provide firms ample time to implement and test the changes, as it will afford firms approximately seven months from the date of updated technical specifications (technical specifications for the FINRA/ NYSE TRF were published on December 17, 2014 and for the FINRA/NASDAQ TRF on December 23, 2014) 16 and more than three months of testing (testing became available on March 16, 2015 for the FINRA/NYSE TRF and April 1, 2015 for the FINRA/NASDAQ TRF).17 See Rules 6282(g), 6380A(g) and 6380B(f). 12 See Rules 6282(a)(2), 6380A(a)(2) and 6380B(a)(2). 13 See Rules 7130(g), 7230A(i) and 7230B(h). 14 See Rules 7140, 7240A and 7240B. 15 See, e.g., email dated February 12, 2015 from Manisha Kimmel, Managing Director, Financial Information Forum (‘‘FIF’’), requesting a delay of implementation of the amendments to the ADF and TRF rules approved pursuant to SR–FINRA–2013– 050. 16 Updated technical specifications have not yet been published for the ADF; however, we note that currently no member firms use the ADF for trade reporting to FINRA. FINRA anticipates publishing updated technical specifications for the ADF shortly. 17 FINRA notes that this implementation schedule is consistent with FIF’s recommendation 11 PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 24303 Some firms also have requested that they be permitted to report in accordance with the amendments to the ADF and TRF rules prior to the implementation date. The TRFs and the ADF are unable to make the necessary systems changes available in production prior to July 13, 2015 to accommodate voluntary reporting in accordance with the new reporting requirements by some firms, while other firms continue to report under the current reporting requirements. Therefore, all firms must begin reporting in accordance with the amendments on July 13, 2015. As noted above, however, firms will have ample opportunity to test their systems changes and new reporting processes prior to July 13, 2015. FINRA has filed the proposed rule change for immediate effectiveness and has requested that the Commission waive the requirement that the proposed rule change not become operative for 30 days after the date of the filing. The operative date will be the date of filing of the proposed rule change. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of section 15A(b)(6) of the Act,18 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 is consistent with the Act in that it provides firms additional time to complete the systems changes necessary to comply with SR– FINRA–2013–050, which amendments will, among other things, ensure a more accurate and complete audit trail, enable FINRA to recreate more accurately members’ market activity and enhance FINRA’s ability to surveil on an automated basis for compliance with FINRA trade reporting and other 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. FINRA believes that providing adequate time in its comment letter on SR–FINRA–2013–050 that FINRA release TRF technical specifications within seven months, and make available a robust test environment within three months, of the implementation date. See Letter from Manisha Kimmel, Executive Director, Financial Information Forum, to Elizabeth M. Murphy, Secretary, SEC, dated December 20, 2013. 18 15 U.S.C. 78o–3(b)(6). E:\FR\FM\30APN1.SGM 30APN1 24304 Federal Register / Vol. 80, No. 83 / Thursday, April 30, 2015 / Notices for firms to make and test the systems changes necessary to comply with SR– FINRA–2013–050 will benefit all interested parties. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others A copy of the request for a delay from FIF is attached to the filing submitted by the Exchange but not attached to the published notice of this filing. In response to FIF’s request, as discussed above, FINRA is proposing to delay implementation of the amendments to the ADF and TRF rules approved under SR–FINRA–2013–050 to July 13, 2015. FINRA believes that the revised implementation date will provide members additional time to make the necessary system changes while balancing the need to implement the amendments without undue delay. 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 19 and subparagraph (f)(6) of Rule 19b–4 thereunder.20 A proposed rule change filed under Rule 19b–4(f)(6) normally does not become operative for 30 days after the date of filing.21 However, Rule 19b– 4(f)(6)(iii) permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest.22 FINRA has requested that the Commission waive the 30-day operative delay so that FINRA can immediately delay the implementation dates, as provided in this proposal. The Commission believes that the waiver of the 30-day operative delay is consistent with the protection of investors and the public interest as it will allow FINRA to extend the implementation dates of certain changes mstockstill on DSK4VPTVN1PROD with NOTICES 19 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 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. 21 17 CFR 240.19b–4(f)(6)(iii). 22 Id. 20 17 VerDate Sep<11>2014 17:01 Apr 29, 2015 Jkt 235001 approved pursuant to SR–FINRA–2013– 050 in a timely manner. Therefore, the Commission designates the proposal operative upon filing.23 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act.24 If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule change should be approved or disapproved.25 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–2015–008 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–2015–008. 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 23 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). 24 15 U.S.C. 78s(b)(3)(C). 25 Id. PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 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– 2015–008, and should be submitted on or before May 21, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.26 Brent J. Fields, Secretary. [FR Doc. 2015–10039 Filed 4–29–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [File No. 500–1] In the Matter of Jet Neko, Inc., Order of Suspension of Trading April 28, 2015. It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Jet Neko, Inc. (CIK No. 1541371), a void Delaware corporation with its principal place of business listed as Miyazaki, Japan with stock quoted on OTC Link (previously, ‘‘Pink Sheets’’) operated by OTC Markets Group, Inc. (‘‘OTC Link’’) under the ticker symbol NEKO, because it has not filed any periodic reports since it filed a Form 10 registration statement on February 9, 2012. On February 5, 2015, a delinquency letter was sent by the Division of Corporation Finance to Jet Neko, Inc. requesting compliance with their periodic filing obligations, but Jet Neko, Inc. did not receive the delinquency letter due to its failure to maintain a valid address on file with the Commission as required by Commission rules (Rule 301 of Regulation S–T, 17 CFR 232.301 and Section 5.4 of EDGAR Filer Manual). The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of Jet Neko, Inc. Therefore, it is ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading in the 26 17 E:\FR\FM\30APN1.SGM CFR 200.30–3(a)(12). 30APN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 80, Number 83 (Thursday, April 30, 2015)]
[Notices]
[Pages 24302-24304]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-10039]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74807; File No. SR-FINRA-2015-008]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Delay the Implementation Date of Trade
Reporting Amendments Approved Pursuant to SR-FINRA-2013-050

April 24, 2015.
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 April 21, 2015, 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. 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 delay the implementation date of amendments
to the trade reporting rules relating to the Alternative Display
Facility (``ADF'') and the Trade Reporting Facilities (``TRFs'')
approved pursuant to SR-FINRA-2013-050. The proposed rule change would
not make any changes to 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 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

[[Page 24303]]

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
On November 12, 2013, FINRA filed proposed rule change SR-FINRA-
2013-050 to On November 12, 2013, FINRA filed proposed rule change SR-
FINRA-2013-050, which among other things, proposed to amend FINRA rules
governing the reporting of over-the-counter (``OTC'') transactions in
NMS stocks to the ADF and TRFs. The proposed rule change was approved
by the Commission on February 27, 2014.\4\ The amendments to the ADF
and TRF rules relating to millisecond reporting that were approved
pursuant to SR-FINRA-2013-050 became effective on November 10, 2014.\5\
---------------------------------------------------------------------------

\4\ See Securities Exchange Act Release No. 71623 (February 27,
2014), 79 FR 12558 (March 5, 2014) (Order Approving File No. SR-
FINRA-2013-050).
\5\ The amendments to other rule sets approved pursuant to SR-
FINRA-2013-050 are also effective. Specifically, the amendments to
the Order Audit Trail System rules became effective on April 7,
2014, and the amendments to the OTC Reporting Facility rules became
effective on November 17, 2014.
---------------------------------------------------------------------------

Pursuant to proposed rule change SR-FINRA-2014-039,\6\ FINRA
proposed to implement the remaining amendments to the ADF and TRF trade
reporting rules no later than April 30, 2015, and announced an
effective date of April 20, 2015.\7\ Specifically, the amendments to
the ADF and TRF rules (i) require firms to report an additional time
field for Stop Stock transactions \8\ and transactions that reflect an
execution price that is based on a prior reference point in time,\9\
and when reporting block transactions using the exception for
Intermarket Sweep Orders (ISOs) (outbound) under SEC Rule 611 of
Regulation NMS, if the time the firm routed the ISOs is different from
the execution time; \10\ (ii) require firms to identify the original
trade when reporting a reversal by including the control number and
report date for the original trade report; \11\ (iii) require firms to
report trades executed on non-business days and trades reported more
than 365 days after trade date (T+365) to the ADF or a TRF (and not on
``Form T'' through FINRA's Firm Gateway) and further to report non-
business day trades on an ``as/of'' basis by 8:15 a.m. the next
business day with the unique trade report modifier to denote their
execution outside normal market hours; \12\ (iv) provide that where
both sides are submitting a clearing-only report to effectuate a step-
out, the member transferring out of the position must report a step-out
and the member receiving the position must report a ``step-in''; \13\
and (v) address the processing of trades that are submitted for
clearing.\14\ In addition, SR-FINRA-2013-050 made a number of non-
substantive technical and conforming changes to the ADF and TRF rules
that were otherwise being amended.
---------------------------------------------------------------------------

\6\ See Securities Exchange Act Release No. 73289 (October 2,
2014), 79 FR 60874 (October 8, 2014) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2014-039).
\7\ See Regulatory Notice 14-21 (May 2014).
\8\ See paragraph (F) of Rules 6282(a)(4), 6380A(a)(5) and
6380B(a)(5). ``Stop stock transaction'' means a transaction
resulting from an order in which a firm and another party agree that
the order will be executed at a stop stock price or better, which
price is based upon the prices at which the security is trading at
the time the firm receives the order. See Rules 6220, 6320A and
6320B.
\9\ See paragraph (G) of Rules 6282(a)(4), 6380A(a)(5) and
6380B(a)(5).
\10\ See Rules 6282.03, 6380A.03 and 6380B.03.
\11\ See Rules 6282(g), 6380A(g) and 6380B(f).
\12\ See Rules 6282(a)(2), 6380A(a)(2) and 6380B(a)(2).
\13\ See Rules 7130(g), 7230A(i) and 7230B(h).
\14\ See Rules 7140, 7240A and 7240B.
---------------------------------------------------------------------------

Firms have requested additional time to make the systems changes
necessary to comply with the new reporting requirements, and in
particular, have indicated they need additional time to test the
systems changes.\15\ Given the scope of the changes, FINRA believes
that it is appropriate to extend the implementation date and is
proposing to implement the changes to the ADF and TRF rules approved
pursuant to SR-FINRA-2013-050 on July 13, 2015. FINRA believes that
this will provide firms ample time to implement and test the changes,
as it will afford firms approximately seven months from the date of
updated technical specifications (technical specifications for the
FINRA/NYSE TRF were published on December 17, 2014 and for the FINRA/
NASDAQ TRF on December 23, 2014) \16\ and more than three months of
testing (testing became available on March 16, 2015 for the FINRA/NYSE
TRF and April 1, 2015 for the FINRA/NASDAQ TRF).\17\
---------------------------------------------------------------------------

\15\ See, e.g., email dated February 12, 2015 from Manisha
Kimmel, Managing Director, Financial Information Forum (``FIF''),
requesting a delay of implementation of the amendments to the ADF
and TRF rules approved pursuant to SR-FINRA-2013-050.
\16\ Updated technical specifications have not yet been
published for the ADF; however, we note that currently no member
firms use the ADF for trade reporting to FINRA. FINRA anticipates
publishing updated technical specifications for the ADF shortly.
\17\ FINRA notes that this implementation schedule is consistent
with FIF's recommendation in its comment letter on SR-FINRA-2013-050
that FINRA release TRF technical specifications within seven months,
and make available a robust test environment within three months, of
the implementation date. See Letter from Manisha Kimmel, Executive
Director, Financial Information Forum, to Elizabeth M. Murphy,
Secretary, SEC, dated December 20, 2013.
---------------------------------------------------------------------------

Some firms also have requested that they be permitted to report in
accordance with the amendments to the ADF and TRF rules prior to the
implementation date. The TRFs and the ADF are unable to make the
necessary systems changes available in production prior to July 13,
2015 to accommodate voluntary reporting in accordance with the new
reporting requirements by some firms, while other firms continue to
report under the current reporting requirements. Therefore, all firms
must begin reporting in accordance with the amendments on July 13,
2015. As noted above, however, firms will have ample opportunity to
test their systems changes and new reporting processes prior to July
13, 2015.
FINRA has filed the proposed rule change for immediate
effectiveness and has requested that the Commission waive the
requirement that the proposed rule change not become operative for 30
days after the date of the filing. The operative date will be the date
of filing of the proposed rule change.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of section 15A(b)(6) of the Act,\18\ 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 is consistent
with the Act in that it provides firms additional time to complete the
systems changes necessary to comply with SR-FINRA-2013-050, which
amendments will, among other things, ensure a more accurate and
complete audit trail, enable FINRA to recreate more accurately members'
market activity and enhance FINRA's ability to surveil on an automated
basis for compliance with FINRA trade reporting and other rules.
---------------------------------------------------------------------------

\18\ 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. FINRA believes that providing
adequate time

[[Page 24304]]

for firms to make and test the systems changes necessary to comply with
SR-FINRA-2013-050 will benefit all interested parties.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

A copy of the request for a delay from FIF is attached to the
filing submitted by the Exchange but not attached to the published
notice of this filing. In response to FIF's request, as discussed
above, FINRA is proposing to delay implementation of the amendments to
the ADF and TRF rules approved under SR-FINRA-2013-050 to July 13,
2015. FINRA believes that the revised implementation date will provide
members additional time to make the necessary system changes while
balancing the need to implement the amendments without undue delay.

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 \19\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\20\
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\19\ 15 U.S.C. 78s(b)(3)(A).
\20\ 17 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 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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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing.\21\ However,
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest.\22\ FINRA has requested that the Commission waive
the 30-day operative delay so that FINRA can immediately delay the
implementation dates, as provided in this proposal.
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\21\ 17 CFR 240.19b-4(f)(6)(iii).
\22\ Id.
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The Commission believes that the waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest as it will allow FINRA to extend the implementation dates of
certain changes approved pursuant to SR-FINRA-2013-050 in a timely
manner. Therefore, the Commission designates the proposal operative
upon filing.\23\
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\23\ 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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act.\24\ If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule change should be approved or disapproved.\25\
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\24\ 15 U.S.C. 78s(b)(3)(C).
\25\ Id.
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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-2015-008 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-2015-008. 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-2015-008, and should
be submitted on or before May 21, 2015.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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\26\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-10039 Filed 4-29-15; 8:45 am]
BILLING CODE 8011-01-P

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