Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend FINRA Rule 7650A Relating to Submission of Billing Disputes by FINRA/Nasdaq Trade Reporting Facility Participants, 39818-39820 [2015-16859]
Download as PDF
39818
Federal Register / Vol. 80, No. 132 / Friday, July 10, 2015 / Notices
proposed rule change effects a change
that (A) does not significantly affect the
protection of investors or the public
interest; (B) does not impose any
significant burden on competition; and
(C) by its terms, does not become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest; provided that the selfregulatory organization has given 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.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily
temporarily suspend such rule change if
it appears to the Commission that such
action is: (1) Necessary or appropriate in
the public interest; (2) for the protection
of investors; or (3) 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:
mstockstill on DSK4VPTVN1PROD with NOTICES
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–
BATS–2015–51 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BATS–2015–51. 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
VerDate Sep<11>2014
21:07 Jul 09, 2015
Jkt 235001
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
offices of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BATS–
2015–51, and should be submitted on or
before July 31, 2015.
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Brent J. Fields,
Secretary.
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.
[FR Doc. 2015–16857 Filed 7–9–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75364; File No. SR–FINRA–
2015–024]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend FINRA Rule
7650A Relating to Submission of
Billing Disputes by FINRA/Nasdaq
Trade Reporting Facility Participants
July 6, 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 July 1,
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
PO 00000
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
FINRA is proposing to amend FINRA
Rule 7650A (Collection of Fees) to
require FINRA members that are
FINRA/Nasdaq Trade Reporting Facility
(‘‘FINRA/Nasdaq TRF’’) participants to
submit billing disputes within sixty
days of receipt of the invoice to the
FINRA/Nasdaq TRF. The proposed rule
change also would rename Rule 7650A
as ‘‘Collection of Fees and Billing
Policy.’’
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The FINRA/Nasdaq TRF is a facility
of FINRA that is operated by The
NASDAQ OMX Group, Inc. (‘‘NASDAQ
OMX’’). In connection with the
establishment of the FINRA/Nasdaq
TRF, FINRA and NASDAQ OMX
entered into a limited liability company
agreement (the ‘‘LLC Agreement’’).
Under the LLC Agreement, FINRA, the
‘‘SRO Member,’’ has sole regulatory
responsibility for the FINRA/Nasdaq
TRF. NASDAQ OMX, the ‘‘Business
Member,’’ is primarily responsible for
the management of the FINRA/Nasdaq
TRF’s business affairs to the extent
those affairs are not inconsistent with
the regulatory and oversight functions of
FINRA. As such, the Business Member
establishes pricing for use of the FINRA/
1 15
Frm 00074
Fmt 4703
Sfmt 4703
3 17
E:\FR\FM\10JYN1.SGM
CFR 240.19b–4(f)(6).
10JYN1
Federal Register / Vol. 80, No. 132 / Friday, July 10, 2015 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
Nasdaq TRF, and such pricing is
implemented pursuant to FINRA rules
that must be filed with the SEC and be
consistent with the Act. In addition, the
Business Member is obligated to pay the
cost of regulation and is entitled to the
profits and losses, if any, derived from
the operation of the FINRA/Nasdaq
TRF.
Pursuant to the FINRA Rule 7600A
Series, FINRA members that are FINRA/
Nasdaq TRF participants are charged
fees (Rule 7620A) and also may qualify
for credits for trade reporting to the
FINRA/Nasdaq TRF (Rule 7610A).
These rules are administered by
NASDAQ OMX, in its capacity as the
‘‘Business Member’’ and operator of the
FINRA/Nasdaq TRF on behalf of
FINRA,4 and NASDAQ OMX collects all
fees on behalf of the FINRA/Nasdaq
TRF.
On June 23, 2015, FINRA filed a
proposed rule change to adopt Rule
7650A to require FINRA members that
are FINRA/Nasdaq TRF participants to
provide a clearing account number for
an account at National Securities
Clearing Corporation (‘‘NSCC’’) to the
FINRA/Nasdaq TRF for purposes of
permitting NASDAQ OMX, on behalf of
the FINRA/Nasdaq TRF, to debit any
undisputed or final fees due and owing
under the FINRA Rule 7600A Series
relating to the FINRA/Nasdaq TRF.5
FINRA is proposing to amend Rule
7650A to add a new paragraph (b) to
require all billing disputes to be
submitted to the FINRA/Nasdaq TRF in
writing 6 and accompanied by
supporting documentation within sixty
days of receipt of an invoice. This
process is expected to conserve
resources, which are expended when
untimely billing disputes require
research of applicable fees and other
information beyond two months after
the invoice was issued. The proposed
billing policy would apply only to fees
due and owing by the member under the
Rule 7600A Series. FINRA notes that the
same policy with respect to billing
disputes is in place today for NASDAQ
Options Market (‘‘NOM’’) Participants 7
and has been proposed for NASDAQ
equity participants relating to exchange
fees and charges under Nasdaq Stock
4 FINRA’s oversight of this function performed by
the Business Member is conducted through a
recurring assessment and review of TRF operations
by an outside independent audit firm.
5 See Securities Exchange Act Release No. 75339
(June 30, 2015) (Notice of Filing and Immediate
Effectiveness; File No. SR–FINRA–2015–021).
6 The invoice specifies the contact person(s) to
whom to address billing disputes.
7 See NOM Rules at Chapter XV, Section 7,
entitled ‘‘NASDAQ Options Fee Disputes.’’
VerDate Sep<11>2014
19:51 Jul 09, 2015
Jkt 235001
Market rules, effective July 1, 2015.8
FINRA also is proposing to rename Rule
7650A as ‘‘Collection of Fees and Billing
Policy.’’
FINRA has filed the proposed rule
change for immediate effectiveness and
requested waiver of the 30-day operative
delay. FINRA proposes that the
proposed rule change will become
operative on July 1, 2015. The proposed
billing policy would apply to invoices
for trade reporting activity occurring in
July 2015 and thereafter.9
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,10 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. Consistent with SR–
NASDAQ–2015–050, the proposed
requirement that billing disputes under
the Rule 7600A Series be submitted to
the FINRA/Nasdaq TRF within sixty
days from receipt of the invoice would
set an objective standard and would be
fair and applied uniformly to all
members that are FINRA/Nasdaq TRF
participants. In addition, consistent
with SR–NASDAQ–2015–050, sixty
days is ample time for members to
review an invoice and dispute any
billing related to trade reporting activity
for that time period. As noted above, an
identical billing policy applies today
with respect to NOM participants and
has been proposed for NASDAQ equity
participants.
39819
proposed billing policy in its own
rulemaking. FINRA notes that Nasdaq’s
billing policy was subject to proposed
rule changes filed by Nasdaq with the
Commission.11
Consistent with SR–NASDAQ–2015–
050, the proposed billing policy would
apply uniformly to all members that are
FINRA/Nasdaq TRF participants, as it
does today with NOM participants and
as proposed for Nasdaq equity
participants. In addition, consistent
with SR–NASDAQ–2015–050, the
proposed billing policy would conserve
FINRA/Nasdaq TRF resources, which
are expended when untimely billing
disputes require staff to research
applicable fees and other information
beyond two months after the invoice is
issued.
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.
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 described
above, and consistent with the LLC
Agreement, the proposed billing policy
is identical to the billing policy
NASDAQ OMX currently has in place
for NOM participants and is also
identical to the billing policy proposed
by Nasdaq for Nasdaq equity
participants under Nasdaq Stock Market
rules. As the Business Member,
NASDAQ OMX has the obligation of
assessing the potential impacts of the
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 12 and Rule 19b–
4(f)(6) thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative before 30 days from
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),14 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest.
FINRA has asked the Commission to
waive the 30-day operative delay. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. The proposed rule
change proposes a billing policy that is
identical to the billing policy proposed
by Nasdaq relating to fees under Nasdaq
Stock Market rules pursuant to SR–
NASDAQ–2015–050. The operative date
8 See Securities Exchange Act Release No. 74895
(May 7, 2015), 80 FR 27352 (May 13, 2015) (Notice
of Filing and Immediate Effectiveness; File No. SR–
NASDAQ–2015–050).
9 The proposed billing policy would not apply to
invoices related to June 2015 (or prior) billing.
10 15 U.S.C. 78o–3(b)(6).
11 See, e.g., Securities Exchange Act Release No.
74895 (May 7, 2015), 80 FR 27352 (May 13, 2015)
(Notice of Filing and Immediate Effectiveness; File
No. SR–NASDAQ–2015–050).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
E:\FR\FM\10JYN1.SGM
10JYN1
39820
Federal Register / Vol. 80, No. 132 / Friday, July 10, 2015 / Notices
of proposed rule change SR–NASDAQ–
2015–050 is July 1, 2015. FINRA
believes, and the Commission agrees,
that it would be more efficient to
implement the billing policy under this
proposed rule change on the same date
as the billing policy under SR–
NASDAQ–2015–050, rather than on a
piecemeal basis. Therefore, the
Commission hereby waives the 30-day
operative delay and designates the
proposed rule change to be operative
upon filing with the Commission.15
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.
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:
mstockstill on DSK4VPTVN1PROD with NOTICES
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–2015–024 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–2015–024. 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
15 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Sep<11>2014
19:51 Jul 09, 2015
Jkt 235001
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
offices 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–
2015–024, and should be submitted on
or before July 31, 2015
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Brent J. Fields,
Secretary.
[FR Doc. 2015–16859 Filed 7–9–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of Arrin Corporation,
Gundaker/Jordan American Holdings
(a/k/a Jordan American Holdings, Inc.),
Liberty Petroleum Corporation, Mikojo
Incorporated, Royal Invest
International Corp., and San Joaquin
Bancorp; Order of Suspension of
Trading
July 8, 2015.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Arrin
Corporation (CIK No. 1427433)
(‘‘ARRI’’ 1), a revoked Nevada
corporation with its principal place of
business in Bradenton, Florida, with
stock quoted on OTC Link (previously,
‘‘Pink Sheets’’) operated by OTC
Markets Group Inc. (‘‘OTC Link’’)
because it has not filed any periodic
reports since the period ended March
31, 2011. On June 26, 2013, the Division
of Corporation Finance (‘‘Corporation
Finance’’) sent a delinquency letter to
ARRI requesting compliance with its
periodic reporting obligations at the
CFR 200.30–3(a)(12).
short form of each issuer’s name is also its
ticker symbol.
PO 00000
16 17
1 The
Frm 00076
Fmt 4703
Sfmt 4703
address shown in its then-most recent
filing with the Commission, but ARRI
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 the EDGAR Filer Manual).
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Gundaker/
Jordan American Holdings, Inc. (a/k/a
Jordan American Holdings, Inc.) (CIK
No. 855663) (‘‘JAHI’’), a Florida
corporation with its principal place of
business in Excello, Missouri, with
stock quoted on OTC Link, because it
has not filed any periodic reports since
the period ended September 30, 2005.
On March 19, 2015, Corporation
Finance sent a delinquency letter to
JAHI requesting compliance with its
periodic reporting obligations at the
address shown in its then-most recent
filing with the Commission, but JAHI
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 the EDGAR Filer Manual).
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Liberty
Petroleum Corporation (CIK No. 59270)
(‘‘LBPE’’), a Delaware corporation with
its principal place of business in New
York, New York, with stock quoted on
OTC Link, because it has not filed any
periodic reports since the period ended
June 30, 1987. On August 24, 2012,
Corporation Finance sent a delinquency
letter to LBPE requesting compliance
with its periodic reporting obligations at
the address shown in its then-most
recent filing with the Commission, but
LBPE 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 the
EDGAR Filer Manual).
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Mikojo
Incorporated (CIK No. 1411085)
(‘‘MKJI’’), a void Delaware corporation
with its principal place of business in
Foster City, California, with stock
quoted on OTC Link, because it has not
filed any periodic reports since the
period ended March 31, 2011. On April
29, 2013, Corporation Finance sent a
delinquency letter to MKJI requesting
compliance with its periodic reporting
E:\FR\FM\10JYN1.SGM
10JYN1
Agencies
[Federal Register Volume 80, Number 132 (Friday, July 10, 2015)]
[Notices]
[Pages 39818-39820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16859]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75364; File No. SR-FINRA-2015-024]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend FINRA Rule 7650A Relating to Submission
of Billing Disputes by FINRA/Nasdaq Trade Reporting Facility
Participants
July 6, 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 July 1, 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 amend FINRA Rule 7650A (Collection of Fees)
to require FINRA members that are FINRA/Nasdaq Trade Reporting Facility
(``FINRA/Nasdaq TRF'') participants to submit billing disputes within
sixty days of receipt of the invoice to the FINRA/Nasdaq TRF. The
proposed rule change also would rename Rule 7650A as ``Collection of
Fees and Billing Policy.''
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
The FINRA/Nasdaq TRF is a facility of FINRA that is operated by The
NASDAQ OMX Group, Inc. (``NASDAQ OMX''). In connection with the
establishment of the FINRA/Nasdaq TRF, FINRA and NASDAQ OMX entered
into a limited liability company agreement (the ``LLC Agreement'').
Under the LLC Agreement, FINRA, the ``SRO Member,'' has sole regulatory
responsibility for the FINRA/Nasdaq TRF. NASDAQ OMX, the ``Business
Member,'' is primarily responsible for the management of the FINRA/
Nasdaq TRF's business affairs to the extent those affairs are not
inconsistent with the regulatory and oversight functions of FINRA. As
such, the Business Member establishes pricing for use of the FINRA/
[[Page 39819]]
Nasdaq TRF, and such pricing is implemented pursuant to FINRA rules
that must be filed with the SEC and be consistent with the Act. In
addition, the Business Member is obligated to pay the cost of
regulation and is entitled to the profits and losses, if any, derived
from the operation of the FINRA/Nasdaq TRF.
Pursuant to the FINRA Rule 7600A Series, FINRA members that are
FINRA/Nasdaq TRF participants are charged fees (Rule 7620A) and also
may qualify for credits for trade reporting to the FINRA/Nasdaq TRF
(Rule 7610A). These rules are administered by NASDAQ OMX, in its
capacity as the ``Business Member'' and operator of the FINRA/Nasdaq
TRF on behalf of FINRA,\4\ and NASDAQ OMX collects all fees on behalf
of the FINRA/Nasdaq TRF.
---------------------------------------------------------------------------
\4\ FINRA's oversight of this function performed by the Business
Member is conducted through a recurring assessment and review of TRF
operations by an outside independent audit firm.
---------------------------------------------------------------------------
On June 23, 2015, FINRA filed a proposed rule change to adopt Rule
7650A to require FINRA members that are FINRA/Nasdaq TRF participants
to provide a clearing account number for an account at National
Securities Clearing Corporation (``NSCC'') to the FINRA/Nasdaq TRF for
purposes of permitting NASDAQ OMX, on behalf of the FINRA/Nasdaq TRF,
to debit any undisputed or final fees due and owing under the FINRA
Rule 7600A Series relating to the FINRA/Nasdaq TRF.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 75339 (June 30,
2015) (Notice of Filing and Immediate Effectiveness; File No. SR-
FINRA-2015-021).
---------------------------------------------------------------------------
FINRA is proposing to amend Rule 7650A to add a new paragraph (b)
to require all billing disputes to be submitted to the FINRA/Nasdaq TRF
in writing \6\ and accompanied by supporting documentation within sixty
days of receipt of an invoice. This process is expected to conserve
resources, which are expended when untimely billing disputes require
research of applicable fees and other information beyond two months
after the invoice was issued. The proposed billing policy would apply
only to fees due and owing by the member under the Rule 7600A Series.
FINRA notes that the same policy with respect to billing disputes is in
place today for NASDAQ Options Market (``NOM'') Participants \7\ and
has been proposed for NASDAQ equity participants relating to exchange
fees and charges under Nasdaq Stock Market rules, effective July 1,
2015.\8\ FINRA also is proposing to rename Rule 7650A as ``Collection
of Fees and Billing Policy.''
---------------------------------------------------------------------------
\6\ The invoice specifies the contact person(s) to whom to
address billing disputes.
\7\ See NOM Rules at Chapter XV, Section 7, entitled ``NASDAQ
Options Fee Disputes.''
\8\ See Securities Exchange Act Release No. 74895 (May 7, 2015),
80 FR 27352 (May 13, 2015) (Notice of Filing and Immediate
Effectiveness; File No. SR-NASDAQ-2015-050).
---------------------------------------------------------------------------
FINRA has filed the proposed rule change for immediate
effectiveness and requested waiver of the 30-day operative delay. FINRA
proposes that the proposed rule change will become operative on July 1,
2015. The proposed billing policy would apply to invoices for trade
reporting activity occurring in July 2015 and thereafter.\9\
---------------------------------------------------------------------------
\9\ The proposed billing policy would not apply to invoices
related to June 2015 (or prior) billing.
---------------------------------------------------------------------------
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\10\ 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. Consistent with SR-NASDAQ-2015-050, the proposed
requirement that billing disputes under the Rule 7600A Series be
submitted to the FINRA/Nasdaq TRF within sixty days from receipt of the
invoice would set an objective standard and would be fair and applied
uniformly to all members that are FINRA/Nasdaq TRF participants. In
addition, consistent with SR-NASDAQ-2015-050, sixty days is ample time
for members to review an invoice and dispute any billing related to
trade reporting activity for that time period. As noted above, an
identical billing policy applies today with respect to NOM participants
and has been proposed for NASDAQ equity participants.
---------------------------------------------------------------------------
\10\ 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. As described above, and
consistent with the LLC Agreement, the proposed billing policy is
identical to the billing policy NASDAQ OMX currently has in place for
NOM participants and is also identical to the billing policy proposed
by Nasdaq for Nasdaq equity participants under Nasdaq Stock Market
rules. As the Business Member, NASDAQ OMX has the obligation of
assessing the potential impacts of the proposed billing policy in its
own rulemaking. FINRA notes that Nasdaq's billing policy was subject to
proposed rule changes filed by Nasdaq with the Commission.\11\
---------------------------------------------------------------------------
\11\ See, e.g., Securities Exchange Act Release No. 74895 (May
7, 2015), 80 FR 27352 (May 13, 2015) (Notice of Filing and Immediate
Effectiveness; File No. SR-NASDAQ-2015-050).
---------------------------------------------------------------------------
Consistent with SR-NASDAQ-2015-050, the proposed billing policy
would apply uniformly to all members that are FINRA/Nasdaq TRF
participants, as it does today with NOM participants and as proposed
for Nasdaq equity participants. In addition, consistent with SR-NASDAQ-
2015-050, the proposed billing policy would conserve FINRA/Nasdaq TRF
resources, which are expended when untimely billing disputes require
staff to research applicable fees and other information beyond two
months after the invoice is issued.
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 \12\ and Rule 19b-
4(f)(6) thereunder.\13\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative before 30 days from the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest.
---------------------------------------------------------------------------
\14\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
FINRA has asked the Commission to waive the 30-day operative delay.
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
The proposed rule change proposes a billing policy that is identical to
the billing policy proposed by Nasdaq relating to fees under Nasdaq
Stock Market rules pursuant to SR-NASDAQ-2015-050. The operative date
[[Page 39820]]
of proposed rule change SR-NASDAQ-2015-050 is July 1, 2015. FINRA
believes, and the Commission agrees, that it would be more efficient to
implement the billing policy under this proposed rule change on the
same date as the billing policy under SR-NASDAQ-2015-050, rather than
on a piecemeal basis. Therefore, the Commission hereby waives the 30-
day operative delay and designates the proposed rule change to be
operative upon filing with the Commission.\15\
---------------------------------------------------------------------------
\15\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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. 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-2015-024 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-2015-024. 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 offices 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-2015-024, and should
be submitted on or before July 31, 2015
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Brent J. Fields,
Secretary.
[FR Doc. 2015-16859 Filed 7-9-15; 8:45 am]
BILLING CODE 8011-01-P