Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Tier Size Pilot of FINRA Rule 6433 (Minimum Quotation Size Requirements for OTC Equity Securities), 48615-48617 [2015-19869]
Download as PDF
Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices
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–NASDAQ–2015–090. 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–
NASDAQ–2015–090 and should be
submitted on or before September 3,
2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015–19875 Filed 8–12–15; 8:45 am]
tkelley on DSK3SPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
and C below, of the most significant
aspects of such statements.
[Release No. 34–75639; File No. SR–FINRA–
2015–028]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Tier Size
Pilot of FINRA Rule 6433 (Minimum
Quotation Size Requirements for OTC
Equity Securities)
August 7, 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 28,
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 amend FINRA
Rule 6433 (Minimum Quotation Size
Requirements for OTC Equity
Securities) to extend the Tier Size Pilot,
which currently is scheduled to expire
on August 14, 2015, until December 11,
2015.
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,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
16 17
CFR 200.30–3(a)(12).
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16:56 Aug 12, 2015
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48615
PO 00000
Frm 00140
Fmt 4703
Sfmt 4703
1. Purpose
FINRA proposes to amend FINRA
Rule 6433 (Minimum Quotation Size
Requirements for OTC Equity
Securities) (the ‘‘Rule’’) to extend, until
December 11, 2015, the amendments set
forth in File No. SR–FINRA–2011–058
(‘‘Tier Size Pilot’’ or ‘‘Pilot’’), which
currently are scheduled to expire on
August 14, 2015.4
The Tier Size Pilot was filed with the
SEC on October 6, 2011,5 to amend the
minimum quotation sizes (or ‘‘tier
sizes’’) for OTC Equity Securities.6 The
goals of the Pilot were to simplify the
tier structure, facilitate the display of
customer limit orders, and expand the
scope of the Rule to apply to additional
quoting participants. During the course
of the pilot, FINRA collected and
provided to the SEC specified data with
which to assess the impact of the Pilot
tiers on market quality and limit order
display.7 On September 13, 2013,
FINRA provided to the Commission an
assessment on the operation of the Tier
Size Pilot utilizing data covering the
period from November 12, 2012 through
June 30, 2013.8 As noted in the 2013
Assessment, FINRA believed that the
analysis of the data generally showed
that the Tier Size Pilot had a neutral to
positive impact on OTC market quality
for the majority of OTC Equity
Securities and tiers; and that there was
an overall increase of 13% in the
number of customer limit orders that
met the minimum quotation sizes to be
eligible for display under the Pilot tiers.
In the 2013 Assessment, FINRA
recommended adopting the tiers as
4 See Securities Exchange Act Release No. 74927
(May 12, 2015), 80 FR 28327 (May 18, 2015) (Notice
of Filing and Immediate Effectiveness of File No.
SR–FINRA–2015–010); see also Securities Exchange
Act Release No. 67208 (June 15, 2012), 77 FR 37458
(June 21, 2012) (Order Approving File No. SR–
FINRA–2011–058, as amended).
5 See Securities Exchange Act Release No. 65568
(October 14, 2011), 76 FR 65307 (October 20, 2011)
(Notice of Filing of File No. SR–FINRA–2011–058).
6 ‘‘OTC Equity Security’’ means any equity
security that is not an ‘‘NMS stock’’ as that term is
defined in Rule 600(b)(47) of SEC Regulation NMS;
provided, however, that the term OTC Equity
Security shall not include any Restricted Equity
Security. See FINRA Rule 6420.
7 FINRA ceased collecting Pilot data for
submission to the Commission on February 13,
2015.
8 The assessment is part of the SEC’s comment file
for SR–FINRA–2011–058 and also is available on
FINRA’s Web site at: https://www.finra.org/Industry/
Regulation/RuleFilings/2011/P124615 (‘‘Pilot
Assessment’’).
E:\FR\FM\13AUN1.SGM
13AUN1
48616
Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices
permanent, but extended the pilot
period to allow more time to gather and
analyze data after the November 12,
2012 through June 30, 2013 assessment
period.9 On January 29, 2015, FINRA
further extended the Pilot period to
permit FINRA and the Commission to
consider the implications of the data
collected since June 30, 2013.10 FINRA
has reviewed this post-June 30, 2013
data, and believes that the impact
described in the 2013 Assessment has
continued to hold (and has improved in
certain areas).
The purpose of this filing is to extend
the operation of the Tier Size Pilot until
December 11, 2015, to provide FINRA
with additional time to finalize its
recommendation with regard to the Tier
Size Pilot.
FINRA has filed the proposed rule
change for immediate effectiveness. The
operative date of the proposed rule
change will be August 14, 2015.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,11 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. FINRA also believes that
the proposed rule change is consistent
with the provisions of Section
15A(b)(11) of the Act.12 Section
15A(b)(11) requires that FINRA rules
include provisions governing the form
and content of quotations relating to
securities sold otherwise than on a
national securities exchange which may
be distributed or published by any
member or person associated with a
member, and the persons to whom such
quotations may be supplied.
FINRA believes that the extension of
the Tier Size Pilot until December 11,
2015, is consistent with the Act in that
it would provide the Commission and
FINRA with additional time to
determine whether the pilot tiers should
be made permanent.
tkelley on DSK3SPTVN1PROD with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
9 See Securities Exchange Act Release No. 70839
(November 8, 2013), 78 FR 68893 (November 15,
2013) (Notice of Filing and Immediate Effectiveness
of File No. SR–FINRA–2013–049).
10 See Securities Exchange Act Release No. 74251
(February 11, 2015), 80 FR 8741 (February 18, 2015)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2015–002).
11 15 U.S.C. 78o–3(b)(6).
12 15 U.S.C. 78o–3(b)(11).
VerDate Sep<11>2014
16:56 Aug 12, 2015
Jkt 235001
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
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 13 and Rule 19b–
4(f)(6) thereunder.14
A proposed rule change filed under
Rule 19b–4(f)(6) 15 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),16 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest.
FINRA has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The
Commission believes that waiver of the
operative delay is consistent with the
protection of investors and the public
interest because such waiver will allow
the pilot program to continue without
interruption. Therefore, the Commission
designates the proposal operative upon
filing.17
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
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). Rule 19b–4(f)(6)
requires a self-regulatory organization to give the
Commission written notice of its intent to file the
proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
17 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).
14 17
PO 00000
Frm 00141
Fmt 4703
Sfmt 4703
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–2015–028 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–2015–028. This file
number should be included on the
subject line if email is used.
To help the Commission process and
review your comments more efficiently,
please use only one method. The
Commission will post all comments on
the Commission’s Internet Web site
(https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F St. NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of FINRA. All comments received
will be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–FINRA–
2015–028 and should be submitted on
or before September 3, 2015.
E:\FR\FM\13AUN1.SGM
13AUN1
Federal Register / Vol. 80, No. 156 / Thursday, August 13, 2015 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015–19869 Filed 8–12–15; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Advisory Committee on Veterans
Business Affairs Meeting
U.S. Small Business
Administration.
ACTION: Notice of open Federal Advisory
Committee meeting.
AGENCY:
The SBA is issuing this notice
to announce the location, date, time,
and agenda for the next meeting of the
Advisory Committee on Veterans
Business Affairs. The meeting will be
open to the public.
DATES: Wednesday, September 9, 2015
from 9 a.m. to 12 p.m.
ADDRESSES: U.S. Small Business
Administration, 409 3rd Street SW.,
Washington, DC 20416. Room:
Eisenhower Conference room A, located
on the Concourse Level Floor.
SUPPLEMENTARY INFORMATION: Pursuant
to section 10(a) (2) of the Federal
Advisory Committee Act (5 U.S.C.,
Appendix 2), SBA announces the
meeting of the Advisory Committee on
Veterans Business Affairs. The Advisory
Committee on Veterans Business Affairs
serves as an independent source of
advice and policy recommendation to
the Administrator of the U.S. Small
Business Administration.
Purpose: The purpose of this meeting
is to finalize preparations for the 2015
Annual Report to SBA’s Administrator,
Associate Administrator for Veterans
Business Development, Congress, and
the President and to discuss current and
future programs for veterans’ small
business owners. For information
regarding our veterans’ resources and
partners, please visit our Web site at
www.sba.gov/vets.
Additonal information: The meeting
is open to the public, however, advance
notice of attendance is requested.
Anyone wishing to attend and/or make
a presentation to the Advisory
Committee must contact Cheryl Simms,
by September 1, 2015, by email below
in order to be placed on the agenda.
Comments for the Record including
verbal presentations, should be emailed
prior to the meeting for inclusion in the
public record comments will be limited
to five minutes in the interest of time
tkelley on DSK3SPTVN1PROD with NOTICES
SUMMARY:
18 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
16:56 Aug 12, 2015
Jkt 235001
and to accommodate as many presenters
as possible. Written comments should
be emailed to Cheryl Simms, Program
Liaison, Office of Veterans Business
Development, U.S. Small Business
Administration, 409 3rd Street SW.,
Washington, DC 20416. Additionally, if
participants need accommodations
because of a disability or require
additional information, please contact
Cheryl Simms, Designated Federal
Official for the Advisory Committee on
Veterans Business Affairs at (202) 205–
6773; or by email at cheryl.simms@
sba.gov. For more information, please
visit our Web site at www.sba.gov/vets.
Dated: August 7, 2015.
Miguel J. L’Heureux,
SBA Committee Management Officer.
[FR Doc. 2015–19956 Filed 8–12–15; 8:45 am]
48617
Primary Counties: Rota, Saipan, Tinian.
The Interest Rates are:
Percent
For Physical Damage:
Non-Profit Organizations With
Credit Available Elsewhere ...
Non-Profit Organizations Without Credit Available Elsewhere .....................................
For Economic Injury:
Non-Profit Organizations Without Credit Available Elsewhere .....................................
2.625
2.625
2.625
The number assigned to this disaster
for physical damage is 14407E and for
economic injury is 14408E.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
James E. Rivera,
Associate Administrator for Disaster
Assistance.
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[FR Doc. 2015–19959 Filed 8–12–15; 8:45 am]
[Disaster Declaration #14407 and #14408]
BILLING CODE 8025–01–P
Northern Mariana Islands Disaster
#MP–00006
SMALL BUSINESS ADMINISTRATION
U.S. Small Business
Administration.
ACTION: Notice.
[ Disaster Declaration #14405 and #14406]
AGENCY:
Northern Mariana Islands Disaster
#MP–00005
This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Northern Mariana Islands
(FEMA–4235–DR), dated 08/05/2015.
Incident: Typhoon Soudelor.
Incident Period: 08/01/2015 through
08/03/2015.
Effective Date: 08/05/2015.
Physical Loan Application Deadline
Date: 10/05/2015.
Economic Injury (EIDL) Loan
Application Deadline Date: 05/05/2016.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
08/05/2015, Private Non-Profit
organizations that provide essential
services of governmental nature may file
disaster loan applications at the address
listed above or other locally announced
locations.
The following areas have been
determined to be adversely affected by
the disaster:
SUMMARY:
PO 00000
Frm 00142
Fmt 4703
Sfmt 4703
U.S. Small Business
Administration.
ACTION: Notice
AGENCY:
This is a Notice of the
Presidential declaration of a major
disaster for the State of Northern
Mariana Islands (FEMA–4235–DR),
dated 08/05/2015.
Incident: Typhoon Soudelor.
Incident Period: 08/01/2015 through
08/03/2015.
Effective Date: 08/05/2015.
Physical Loan Application Deadline
Date: 10/05/2015.
Economic Injury (EIDL) Loan
Application Deadline Date: 05/05/2016.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
08/05/2015, applications for disaster
loans may be filed at the address listed
above or other locally announced
locations.
SUMMARY:
E:\FR\FM\13AUN1.SGM
13AUN1
Agencies
[Federal Register Volume 80, Number 156 (Thursday, August 13, 2015)]
[Notices]
[Pages 48615-48617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19869]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75639; File No. SR-FINRA-2015-028]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Extend the Tier Size Pilot of FINRA Rule 6433
(Minimum Quotation Size Requirements for OTC Equity Securities)
August 7, 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 28, 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 6433 (Minimum Quotation Size
Requirements for OTC Equity Securities) to extend the Tier Size Pilot,
which currently is scheduled to expire on August 14, 2015, until
December 11, 2015.
The text of the proposed rule change is available on FINRA's Web
site at https://www.finra.org, at the principal office of FINRA and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
FINRA proposes to amend FINRA Rule 6433 (Minimum Quotation Size
Requirements for OTC Equity Securities) (the ``Rule'') to extend, until
December 11, 2015, the amendments set forth in File No. SR-FINRA-2011-
058 (``Tier Size Pilot'' or ``Pilot''), which currently are scheduled
to expire on August 14, 2015.\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 74927 (May 12,
2015), 80 FR 28327 (May 18, 2015) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2015-010); see also Securities
Exchange Act Release No. 67208 (June 15, 2012), 77 FR 37458 (June
21, 2012) (Order Approving File No. SR-FINRA-2011-058, as amended).
---------------------------------------------------------------------------
The Tier Size Pilot was filed with the SEC on October 6, 2011,\5\
to amend the minimum quotation sizes (or ``tier sizes'') for OTC Equity
Securities.\6\ The goals of the Pilot were to simplify the tier
structure, facilitate the display of customer limit orders, and expand
the scope of the Rule to apply to additional quoting participants.
During the course of the pilot, FINRA collected and provided to the SEC
specified data with which to assess the impact of the Pilot tiers on
market quality and limit order display.\7\ On September 13, 2013, FINRA
provided to the Commission an assessment on the operation of the Tier
Size Pilot utilizing data covering the period from November 12, 2012
through June 30, 2013.\8\ As noted in the 2013 Assessment, FINRA
believed that the analysis of the data generally showed that the Tier
Size Pilot had a neutral to positive impact on OTC market quality for
the majority of OTC Equity Securities and tiers; and that there was an
overall increase of 13% in the number of customer limit orders that met
the minimum quotation sizes to be eligible for display under the Pilot
tiers. In the 2013 Assessment, FINRA recommended adopting the tiers as
[[Page 48616]]
permanent, but extended the pilot period to allow more time to gather
and analyze data after the November 12, 2012 through June 30, 2013
assessment period.\9\ On January 29, 2015, FINRA further extended the
Pilot period to permit FINRA and the Commission to consider the
implications of the data collected since June 30, 2013.\10\ FINRA has
reviewed this post-June 30, 2013 data, and believes that the impact
described in the 2013 Assessment has continued to hold (and has
improved in certain areas).
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 65568 (October 14,
2011), 76 FR 65307 (October 20, 2011) (Notice of Filing of File No.
SR-FINRA-2011-058).
\6\ ``OTC Equity Security'' means any equity security that is
not an ``NMS stock'' as that term is defined in Rule 600(b)(47) of
SEC Regulation NMS; provided, however, that the term OTC Equity
Security shall not include any Restricted Equity Security. See FINRA
Rule 6420.
\7\ FINRA ceased collecting Pilot data for submission to the
Commission on February 13, 2015.
\8\ The assessment is part of the SEC's comment file for SR-
FINRA-2011-058 and also is available on FINRA's Web site at: https://www.finra.org/Industry/Regulation/RuleFilings/2011/P124615 (``Pilot
Assessment'').
\9\ See Securities Exchange Act Release No. 70839 (November 8,
2013), 78 FR 68893 (November 15, 2013) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2013-049).
\10\ See Securities Exchange Act Release No. 74251 (February 11,
2015), 80 FR 8741 (February 18, 2015) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2015-002).
---------------------------------------------------------------------------
The purpose of this filing is to extend the operation of the Tier
Size Pilot until December 11, 2015, to provide FINRA with additional
time to finalize its recommendation with regard to the Tier Size Pilot.
FINRA has filed the proposed rule change for immediate
effectiveness. The operative date of the proposed rule change will be
August 14, 2015.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\11\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA also believes that the proposed rule change is
consistent with the provisions of Section 15A(b)(11) of the Act.\12\
Section 15A(b)(11) requires that FINRA rules include provisions
governing the form and content of quotations relating to securities
sold otherwise than on a national securities exchange which may be
distributed or published by any member or person associated with a
member, and the persons to whom such quotations may be supplied.
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\11\ 15 U.S.C. 78o-3(b)(6).
\12\ 15 U.S.C. 78o-3(b)(11).
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FINRA believes that the extension of the Tier Size Pilot until
December 11, 2015, is consistent with the Act in that it would provide
the Commission and FINRA with additional time to determine whether the
pilot tiers should be made permanent.
B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
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 \13\ and Rule 19b-
4(f)(6) thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). Rule 19b-4(f)(6) requires a self-
regulatory organization to give the Commission written notice of its
intent to file the proposed rule change at least five business days
prior to the date of filing of the proposed rule change, or such
shorter time as designated by the Commission. The Exchange has
satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\16\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
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FINRA has asked the Commission to waive the 30-day operative delay
so that the proposal may become operative immediately upon filing. The
Commission believes that waiver of the operative delay is consistent
with the protection of investors and the public interest because such
waiver will allow the pilot program to continue without interruption.
Therefore, the Commission designates the proposal operative upon
filing.\17\
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\17\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-FINRA-2015-028 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-2015-028. This
file number should be included on the subject line if email is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, 100 F
St. NE., Washington, DC 20549, on official business days between the
hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be
available for inspection and copying at the principal office of FINRA.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-FINRA-2015-028
and should be submitted on or before September 3, 2015.
[[Page 48617]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-19869 Filed 8-12-15; 8:45 am]
BILLING CODE 8011-01-P