Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update Rule Cross-References and Make Non-Substantive Technical Changes to Certain FINRA Rules, 76053-76055 [2015-30721]
Download as PDF
Federal Register / Vol. 80, No. 234 / Monday, December 7, 2015 / Notices
minimum price variance above (for
offers) or below (for bids) the national
best price.
The Exchange believes that the
amendment to the Market Order Spread
Protection language does not otherwise
create an impediment to a free and open
market because the repricing due to
trade throughs and locked and crossed
markets exists today and serve to protect
against trading through or locking or
crossing another market. This proposal
reflects the impact of repricing due to
trade-through and locked and crossed
market restrictions on the Market Order
Spread Protection feature.
By reflecting the proper rule text to
account for trade-through and locked
and crossed market restrictions, the
Exchange is providing Participants with
additional information with which to
anticipate the impact of the Market
Order Spread Protection feature.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe that the
proposal to amend the Market Order
Spread Protection rule text to account
[sic] repricing due to trade-through and
locked and crossed market restrictions
creates an undue burden on competition
because it will serve to provide
Participants with greater information to
anticipate the impact of the Market
Order Spread Protection feature. Today,
Participants’ orders are repriced due to
trade-through and locked and crossed
market restrictions. The purpose of this
rule change is to protect market orders
resting on the Order Book when the
market is wide. This feature will be
applied in a similar manner to all
Participants on BX.
mstockstill on DSK4VPTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not significantly affect the
protection of investors or the public
interest; does not impose any significant
burden on competition; and by its terms
does not 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
VerDate Sep<11>2014
18:36 Dec 04, 2015
Jkt 238001
pursuant to Section 19(b)(3)(A) 11 of the
Act and Rule 19b–4(f)(6) thereunder.12
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
76053
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–BX–
2015–074 and should be submitted on
or before December 28, 2015.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Robert W. Errett,
Deputy Secretary.
Electronic Comments
BILLING CODE 8011–01–P
• 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–
BX–2015–074 on the subject line.
[FR Doc. 2015–30720 Filed 12–4–15; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76532; File No. SR–FINRA–
2015–050]
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–BX–2015–074. 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
11 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.
12 17
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Update Rule CrossReferences and Make Non-Substantive
Technical Changes to Certain FINRA
Rules
December 1, 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 November
24, 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.
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
E:\FR\FM\07DEN1.SGM
07DEN1
76054
Federal Register / Vol. 80, No. 234 / Monday, December 7, 2015 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
FINRA is proposing to update crossreferences and make other nonsubstantive changes within FINRA
rules, primarily as the result of approval
of a new consolidated FINRA rule.
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
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Purpose
FINRA is in the process of developing
a consolidated rulebook (‘‘Consolidated
FINRA Rulebook’’).4 That process
involves FINRA submitting to the
Commission for approval a series of
proposed rule changes over time to
adopt rules in the Consolidated FINRA
Rulebook. The phased adoption and
implementation of those rules
necessitates periodic amendments to
update rule cross-references and other
non-substantive changes in the
Consolidated FINRA Rulebook.
The proposed rule change would
make several such changes, as well as
other non-substantive changes unrelated
to the adoption of rules in the
Consolidated FINRA Rulebook.
First, the proposed rule change would
update rule cross-references to reflect
4 The current FINRA rulebook consists of (1)
FINRA Rules; (2) NASD Rules; and (3) rules
incorporated from NYSE (‘‘Incorporated NYSE
Rules’’) (together, the NASD Rules and Incorporated
NYSE Rules are referred to as the ‘‘Transitional
Rulebook’’). While the NASD Rules generally apply
to all FINRA members, the Incorporated NYSE
Rules apply only to those members of FINRA that
are also members of the NYSE (‘‘Dual Members’’).
The FINRA Rules apply to all FINRA members,
unless such rules have a more limited application
by their terms. For more information about the
rulebook consolidation process, see Information
Notice, March 12, 2008 (Rulebook Consolidation
Process).
VerDate Sep<11>2014
18:36 Dec 04, 2015
Jkt 238001
the adoption of a consolidated equity
research conflict of interest rule. On July
16, 2015, the SEC approved a proposed
rule change to adopt NASD Rule 2711
as FINRA Rule 2241 (Research Analysts
and Research Reports), with several
modifications. As part of that rule filing,
FINRA also amended FINRA Rule 9610,
NASD Rule 1050, and Incorporated
NYSE Rules 344 and 472, and deleted
in their entirety the corresponding
Incorporated NYSE Rule 351 and
Incorporated NYSE Rule Interpretation
472.5 Rule 2241 will be fully
implemented on December 24, 2015. As
such, the proposed rule change would
update references to the new rule
number in FINRA Rules 1250
(Continuing Education Requirements),
2210 (Communications with the Public),
5230 (Payments Involving Publications
that Influence the Market Price of a
Security), and 9217 (Violations
Appropriate for Disposition Under Plan
Pursuant to SEA Rule 19d–1(c)(2)).6
Second, the proposed rule change
would make technical changes to
FINRA Rules 2272 (Sales and Offers of
Sales of Securities on Military
Installations) 7 and 6250 (Quote and
Order Access Requirements) 8 to reflect
FINRA Manual style convention
changes and correct cross references
within Rule 6250, respectively.
Finally, the proposed rule change
would also delete from the FINRA
Manual the Series heading for NASD
Rules 2400 (Commissions, Mark-ups
and Charges) and 2700 (Securities
Distributions) to reflect that the NASD
Rules 2400 9 and 2700 10 Series have
fully been consolidated into the FINRA
rules.
FINRA has filed the proposed rule
change for immediate effectiveness and
has requested that the SEC waive the
requirement that the proposed rule
change not become operative for 30 days
5 See Securities Exchange Act Release No. 75471
(July 16, 2015), 80 FR 43482 (July 22, 2015) (Order
Approving File No. SR–FINRA–2014–047) and
Regulatory Notice 15–30 (August 2015).
6 The proposed rule change also would delete a
reference in FINRA Rule 9217 to Incorporated
NYSE Rule 345.11, which was previously deleted
from the FINRA Manual. See Securities Exchange
Act Release No. 73966 (December 30, 2014), 80 FR
546 (January 6, 2015) (Order Approving File No.
SR–FINRA–2014–038).
7 See Securities Exchange Act Release No. 75633
(August 6, 2015), 80 FR 48376 (August 12, 2015)
(Order Approving File No. SR–FINRA–2015–009)
and Regulatory Notice 15–34 (October 2015).
8 See Securities Exchange Act Release No. 71467
(February 3, 2014), 79 FR 7485 (February 7, 2014)
(Order Approving File No. SR–FINRA–2013–053).
9 See Securities Exchange Act Release No. 73954
(December 30, 2014), 80 FR 553 (January 6, 2015)
(Order Approving File No. SR–FINRA–2014–037).
10 See Securities Exchange Act Release No. 75471
(July 16, 2015), 80 FR 43482 (July 22, 2015) (Order
Approving File No. SR–FINRA–2014–047).
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
after the date of the filing, so that FINRA
can implement the proposed rule
change to coincide with effective dates
of the relevant consolidated FINRA
rules. The implementation date for the
proposed changes to FINRA Rules 1250,
2210, 5230, 6250, and 9217 and the
proposed deletion of the NASD Rule
2400 and 2700 Series headings will be
December 24, 2015. The implementation
date for the proposed rule change to
FINRA Rule 2272 will be March 30,
2016.
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 believes the
proposed rule change will provide
greater clarity to members and the
public regarding FINRA’s rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change brings clarity and
consistency to FINRA rules without
adding any burden on firms.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
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)(iii) of the Act 12 and
subparagraph (f)(6) of Rule 19b–4
thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative before 30 days from
11 15
U.S.C. 78o–3(b)(6).
U.S.C. 78s(b)(3)(A)(iii).
13 17 CFR 240.19b–4(f)(6).
12 15
E:\FR\FM\07DEN1.SGM
07DEN1
Federal Register / Vol. 80, No. 234 / Monday, December 7, 2015 / Notices
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. Such waiver will allow
FINRA to implement the proposed rule
change to coincide with the effective
dates of the relevant consolidated
FINRA rules. 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–2015–050 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–2015–050. 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
14 17
CFR 240.19b–4(f)(6)(iii).
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).
15 For
VerDate Sep<11>2014
18:36 Dec 04, 2015
Jkt 238001
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–
2015–050, and should be submitted on
or before December 28, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–30721 Filed 12–4–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
Extension:
Rules 17Ad–22—Clearing Agency
Standards and Governance, SEC File No.
270–646, OMB Control No. 3235–0695.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’)(44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rules 17Ad–22 under
the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.). The Commission
plans to submit this existing collection
16 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00097
Fmt 4703
Sfmt 4703
76055
of information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
i. Standards for Clearing Agencies
a. Measurement and Management of
Credit Exposures
Rule 17Ad–22(b)(1) would require a
clearing agency that provides CCP
services to establish, implement,
maintain and enforce written policies
and procedures reasonably designed to
measure its credit exposures to its
participants at least once each day, and
limit its exposures to potential losses
from defaults by its participants in
normal market conditions so that the
operations of the clearing agency would
not be disrupted and non-defaulting
participants would not be exposed to
losses that they cannot anticipate or
control. The purpose of the collection of
information is to enable the clearing
agency to monitor and limit its
exposures to its participants.
b. Margin Requirements
Rule 17Ad–22(b)(2) would require a
clearing agency that provides CCP
services to establish, implement,
maintain and enforce written policies
and procedures reasonably designed to:
(i) Use margin requirements to limit its
credit exposures to participants in
normal market conditions; (ii) use riskbased models and parameters to set
margin requirements; and (iii) review
the models and parameters at least
monthly. The purpose of the collection
of information is to enable the clearing
agency to maintain sufficient collateral
or margin.
c. Financial Resources
Rule 17Ad–22(b)(3) would require a
clearing agency that provides CCP
services to establish, implement,
maintain and enforce written policies
and procedures reasonably designed to
maintain sufficient financial resources
to withstand, at a minimum, a default
by the participant family to which it has
the largest exposure in extreme but
plausible market conditions, provided
that a registered clearing agency acting
as a central counterparty for securitybased swaps shall maintain additional
financial resources sufficient to
withstand, at a minimum, a default by
the two participant families to which it
has the largest exposures in extreme but
plausible market conditions, in its
capacity as a central counterparty for
security-based swaps. The purpose of
the collection of information is to enable
the clearing agency to satisfy all of its
settlement obligations in the event of a
participant default.
E:\FR\FM\07DEN1.SGM
07DEN1
Agencies
[Federal Register Volume 80, Number 234 (Monday, December 7, 2015)]
[Notices]
[Pages 76053-76055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30721]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76532; File No. SR-FINRA-2015-050]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Update Rule Cross-References and Make Non-
Substantive Technical Changes to Certain FINRA Rules
December 1, 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 November 24, 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).
---------------------------------------------------------------------------
[[Page 76054]]
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
FINRA is proposing to update cross-references and make other non-
substantive changes within FINRA rules, primarily as the result of
approval of a new consolidated FINRA rule.
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 is in the process of developing a consolidated rulebook
(``Consolidated FINRA Rulebook'').\4\ That process involves FINRA
submitting to the Commission for approval a series of proposed rule
changes over time to adopt rules in the Consolidated FINRA Rulebook.
The phased adoption and implementation of those rules necessitates
periodic amendments to update rule cross-references and other non-
substantive changes in the Consolidated FINRA Rulebook.
---------------------------------------------------------------------------
\4\ The current FINRA rulebook consists of (1) FINRA Rules; (2)
NASD Rules; and (3) rules incorporated from NYSE (``Incorporated
NYSE Rules'') (together, the NASD Rules and Incorporated NYSE Rules
are referred to as the ``Transitional Rulebook''). While the NASD
Rules generally apply to all FINRA members, the Incorporated NYSE
Rules apply only to those members of FINRA that are also members of
the NYSE (``Dual Members''). The FINRA Rules apply to all FINRA
members, unless such rules have a more limited application by their
terms. For more information about the rulebook consolidation
process, see Information Notice, March 12, 2008 (Rulebook
Consolidation Process).
---------------------------------------------------------------------------
The proposed rule change would make several such changes, as well
as other non-substantive changes unrelated to the adoption of rules in
the Consolidated FINRA Rulebook.
First, the proposed rule change would update rule cross-references
to reflect the adoption of a consolidated equity research conflict of
interest rule. On July 16, 2015, the SEC approved a proposed rule
change to adopt NASD Rule 2711 as FINRA Rule 2241 (Research Analysts
and Research Reports), with several modifications. As part of that rule
filing, FINRA also amended FINRA Rule 9610, NASD Rule 1050, and
Incorporated NYSE Rules 344 and 472, and deleted in their entirety the
corresponding Incorporated NYSE Rule 351 and Incorporated NYSE Rule
Interpretation 472.\5\ Rule 2241 will be fully implemented on December
24, 2015. As such, the proposed rule change would update references to
the new rule number in FINRA Rules 1250 (Continuing Education
Requirements), 2210 (Communications with the Public), 5230 (Payments
Involving Publications that Influence the Market Price of a Security),
and 9217 (Violations Appropriate for Disposition Under Plan Pursuant to
SEA Rule 19d-1(c)(2)).\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 75471 (July 16,
2015), 80 FR 43482 (July 22, 2015) (Order Approving File No. SR-
FINRA-2014-047) and Regulatory Notice 15-30 (August 2015).
\6\ The proposed rule change also would delete a reference in
FINRA Rule 9217 to Incorporated NYSE Rule 345.11, which was
previously deleted from the FINRA Manual. See Securities Exchange
Act Release No. 73966 (December 30, 2014), 80 FR 546 (January 6,
2015) (Order Approving File No. SR-FINRA-2014-038).
---------------------------------------------------------------------------
Second, the proposed rule change would make technical changes to
FINRA Rules 2272 (Sales and Offers of Sales of Securities on Military
Installations) \7\ and 6250 (Quote and Order Access Requirements) \8\
to reflect FINRA Manual style convention changes and correct cross
references within Rule 6250, respectively.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 75633 (August 6,
2015), 80 FR 48376 (August 12, 2015) (Order Approving File No. SR-
FINRA-2015-009) and Regulatory Notice 15-34 (October 2015).
\8\ See Securities Exchange Act Release No. 71467 (February 3,
2014), 79 FR 7485 (February 7, 2014) (Order Approving File No. SR-
FINRA-2013-053).
---------------------------------------------------------------------------
Finally, the proposed rule change would also delete from the FINRA
Manual the Series heading for NASD Rules 2400 (Commissions, Mark-ups
and Charges) and 2700 (Securities Distributions) to reflect that the
NASD Rules 2400 \9\ and 2700 \10\ Series have fully been consolidated
into the FINRA rules.
---------------------------------------------------------------------------
\9\ See Securities Exchange Act Release No. 73954 (December 30,
2014), 80 FR 553 (January 6, 2015) (Order Approving File No. SR-
FINRA-2014-037).
\10\ See Securities Exchange Act Release No. 75471 (July 16,
2015), 80 FR 43482 (July 22, 2015) (Order Approving File No. SR-
FINRA-2014-047).
---------------------------------------------------------------------------
FINRA has filed the proposed rule change for immediate
effectiveness and has requested that the SEC waive the requirement that
the proposed rule change not become operative for 30 days after the
date of the filing, so that FINRA can implement the proposed rule
change to coincide with effective dates of the relevant consolidated
FINRA rules. The implementation date for the proposed changes to FINRA
Rules 1250, 2210, 5230, 6250, and 9217 and the proposed deletion of the
NASD Rule 2400 and 2700 Series headings will be December 24, 2015. The
implementation date for the proposed rule change to FINRA Rule 2272
will be March 30, 2016.
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 believes the proposed rule change will provide
greater clarity to members and the public regarding FINRA's rules.
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\11\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change brings
clarity and consistency to FINRA rules without adding any burden on
firms.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \12\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative before 30 days from
[[Page 76055]]
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.
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\14\ 17 CFR 240.19b-4(f)(6)(iii).
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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.
Such waiver will allow FINRA to implement the proposed rule change to
coincide with the effective dates of the relevant consolidated FINRA
rules. 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\
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\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).
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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. 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-2015-050 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-2015-050. 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-2015-050, and should
be submitted on or before December 28, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-30721 Filed 12-4-15; 8:45 am]
BILLING CODE 8011-01-P