Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Period Related to FINRA Rule 6121.02 (Market-Wide Circuit Breakers in NMS Stocks), 14981-14983 [2019-07243]

Download as PDF Federal Register / Vol. 84, No. 71 / Friday, April 12, 2019 / Notices CFR), informing the NRC that the licensee has successfully performed the required inspections, tests, and analyses, and that the acceptance criteria are met for: VEGP Unit 3 ITAAC 2.2.01.04a.ii (96), 2.2.03.08c.iv.01 (183), 2.2.03.08c.iv.03 (185), 2.2.03.08c.v.01 (187), 2.2.03.08d (200), 2.3.05.03b.i (346), and 3.3.00.12 (818). VEGP Unit 4 ITAAC 2.2.01.04a.ii (96), 2.3.05.03a.i (343), and 3.3.00.12 (818). The ITAAC for VEGP Unit 3 are in Appendix C of the VEGP Unit 3 combined license (ADAMS Accession No. ML14100A106). The ITAAC for VEGP Unit 4 are in Appendix C of VEGP Unit 4 combined license (ADAMS Accession No. ML14100A135). jbell on DSK30RV082PROD with NOTICES II. NRC Staff Determination of Completion of ITAAC The NRC staff has determined that the specified inspections, tests, and analyses have been successfully completed, and that the specified acceptance criteria are met. The documentation of the NRC staff’s determination is in the ITAAC Closure Verification Evaluation Form (VEF) for each ITAAC. The VEF is a form that represents the NRC staff’s structured process for reviewing ICNs. Each ICN presents a narrative description of how the ITAAC was completed. The NRC’s ICN review process involves a determination on whether, among other things: (1) Each ICN provides sufficient information, including a summary of the methodology used to perform the ITAAC, to demonstrate that the inspections, tests, and analyses have been successfully completed; (2) each ICN provides sufficient information to demonstrate that the acceptance criteria of the ITAAC are met; and (3) any NRC inspections for the ITAAC have been completed and any ITAAC findings associated with that ITAAC have been closed. The NRC staff’s determination of the successful completion of these ITAAC is based on information available at this time and is subject to the licensee’s ability to maintain the condition that the acceptance criteria are met. If the staff receives new information that suggests the staff’s determination on any of these ITAAC is incorrect, then the staff will determine whether to reopen that ITAAC (including withdrawing the staff’s determination on that ITAAC). The NRC staff’s determination will be used to support a subsequent finding, pursuant to 10 CFR 52.103(g), at the end of construction that all acceptance VerDate Sep<11>2014 18:18 Apr 11, 2019 Jkt 247001 criteria in the combined license are met. The ITAAC closure process is not finalized for these ITAAC until the NRC makes an affirmative finding under 10 CFR 52.103(g). Any future updates to the status of these ITAAC will be reflected on the NRC’s website at http:// www.nrc.gov/reactors/new-reactors/ oversight/itaac.html. This notice fulfills the staff’s obligations under 10 CFR 52.99(e)(1) to publish a notice in the Federal Register of the NRC staff’s determination of the successful completion of inspections, tests and analyses. Vogtle Electric Generating Plant Unit 3, Docket No. 5200025 A complete list of the review status for VEGP Unit 3 ITAAC, including the submission date and ADAMS Accession Numbers for each ICN received, each VEF, and for the inspection reports associated with these specific ITAAC, can be found on the NRC’s website at http://www.nrc.gov/reactors/newreactors/new-licensing-files/vog3icnsr.pdf. Vogtle Electric Generating Plant Unit 4, Docket No. 5200026 A complete list of the review status for VEGP Unit 4 ITAAC, including the submission date and ADAMS Accession Numbers for each ICN received, each VEF, and for the inspection reports associated with these specific ITAAC, can be found on the NRC’s website at http://www.nrc.gov/reactors/newreactors/new-licensing-files/vog4icnsr.pdf. Dated at Rockville, Maryland, this 9th day of April, 2019. For the Nuclear Regulatory Commission. Jennifer L. Dixon-Herrity, Chief, Licensing Branch 2, Division of Licensing, Siting, and Environmental Analysis, Office of New Reactors. [FR Doc. 2019–07281 Filed 4–11–19; 8:45 am] BILLING CODE 7590–01–P PO 00000 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–85547; File No. SR–FINRA– 2019–010] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Period Related to FINRA Rule 6121.02 (Market-Wide Circuit Breakers in NMS Stocks) April 8, 2019. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on April 5, 2019, 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 Substance of the Proposed Rule Change FINRA is proposing to extend the pilot period related to FINRA Rule 6121.02 (Market-wide Circuit Breakers in NMS Stocks) to the close of business on October 18, 2019. The text of the proposed rule change is available on FINRA’s website at http://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. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 2 17 Frm 00071 Fmt 4703 Sfmt 4703 14981 E:\FR\FM\12APN1.SGM 12APN1 14982 Federal Register / Vol. 84, No. 71 / Friday, April 12, 2019 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Rule 6121.02 provides a methodology for determining when to halt trading in all NMS Stocks due to extraordinary market volatility, i.e., market-wide circuit breakers. The market-wide circuit breaker mechanism under Rule 6121.02 was approved by the Commission to operate on a pilot basis, the term of which was to coincide with the pilot period for the Plan to Address Extraordinary Market Volatility Pursuant to Rule 608 of Regulation NMS (the ‘‘LULD Plan’’),4 including any extensions to the pilot period for the LULD Plan.5 The Commission published an amendment to the LULD Plan for it to operate on a permanent, rather than pilot, basis.6 FINRA proposes to amend Rule 6121.02 to untie the pilot’s effectiveness from that of the LULD Plan and to extend the pilot’s effectiveness to the close of business on October 18, 2019. FINRA does not propose any additional changes to Rule 6121.02. Market-wide circuit breakers under Rule 6121.02 provide an important, automatic mechanism that is invoked to promote stability and investor confidence during a period of significant stress when securities markets experience extreme broad-based declines. All U.S. equity exchanges have rules similar to Rule 6121.02 relating to market-wide circuit breakers, which are designed to slow the effects of extreme price movement through coordinated trading halts across securities markets when severe price declines reach levels that may exhaust market liquidity. Market-wide circuit breakers provide for trading halts in all equities and options markets during a severe market decline as measured by a single-day decline in the S&P 500 Index. Rule 6121.02 generally provides that, in the event of a Level 1, Level 2 or Level 3 Market Decline,7 as determined by a primary listing market and publicly disseminated, FINRA shall halt trading jbell on DSK30RV082PROD with NOTICES 4 See Securities Exchange Act Release No. 67091 (May 31, 2012), 77 FR 33498 (June 6, 2012) (the ‘‘Limit Up-Limit Down Release’’). 5 See Securities Exchange Act Release Nos. 67090 (May 31, 2012), 77 FR 33531 (June 6, 2012) (Order Approving File No. SR–FINRA–2011–054). 6 See Securities Exchange Act Release Nos. 84843 (December 18, 2018), 83 FR 66464 (December 26, 2018) (Amendment No. 18 Proposing Release). 7 For purposes of the Rule, a ‘‘Market Decline’’ means a decline in the value of the S&P 500® Index between 9:30 a.m. and 4:00 p.m. on a trading day as compared to the closing value of the S&P 500® Index for the immediately preceding trading day. VerDate Sep<11>2014 18:18 Apr 11, 2019 Jkt 247001 otherwise than on an exchange in all NMS stocks and shall not permit the resumption of trading for the time periods specified by the primary listing market. Rule 6121.02 also provides that, if trading is halted in all NMS stocks for a Level 1 or a Level 2 Market Decline, FINRA will halt trading otherwise than on an exchange in all NMS stocks until trading has resumed on the primary listing market; if, however, the primary listing market does not reopen a security within 15 minutes following the end of the 15-minute halt period, FINRA may permit the resumption of trading otherwise than on an exchange in that security if trading in the security has commenced on at least one other national securities exchange. If a Level 3 Market Decline occurs at any time during the trading day, FINRA shall halt trading otherwise than on an exchange in all NMS stocks until the primary listing market opens the next trading day. FINRA intends to file a separate proposed rule change with the Commission to operate Rule 6121.02 on a permanent, rather than pilot, basis. Extending the effectiveness of Rule 6121.02 to the close of business on October 18, 2019 should provide the Commission adequate time to consider whether to approve FINRA’s separate proposal to operate the market-wide circuit breaker mechanism under Rule 6121.02 on a permanent basis. 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 FINRA can implement the proposed rule change immediately. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,8 which requires, among other things, that FINRA rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to, and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. FINRA also believes that the proposed rule change promotes just and equitable principles of trade in that it promotes transparency and uniformity across markets concerning when and how to halt trading in all stocks as a result of extraordinary market volatility. Extending the market-wide circuit 8 15 PO 00000 U.S.C. 78o–3(b)(6). Frm 00072 Fmt 4703 Sfmt 4703 breaker pilot under Rule 6121.02 for an additional six months would ensure the continued, uninterrupted operation of a consistent mechanism to halt trading across the U.S. markets while the Commission considers whether to approve the pilot on a permanent basis. The proposed rule change would thus promote fair and orderly markets and the protection of investors and the public interest. Based on the foregoing, FINRA believes the benefits to market participants from the market-wide circuit breaker mechanism under Rule 6121.02 should continue on a pilot basis while the Commission considers whether to permanently approve Rule 6121.02. B. Self-Regulatory Organization’s Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. FINRA does not believe that the proposed rule change implicates any competitive issues because the proposal would ensure the continued, uninterrupted operation of a consistent mechanism to halt trading across the U.S. markets while the Commission considers whether to permanently approve the market-wide circuit breaker mechanism under Rule 6121.02. Further, FINRA understands that the other selfregulatory organizations will file proposals to extend their rules regarding the market-wide circuit breaker pilot with the Commission so that the marketwide circuit breaker mechanism may continue uninterrupted while the Commission considers whether to approve its operation on a permanent basis. 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 E:\FR\FM\12APN1.SGM 12APN1 Federal Register / Vol. 84, No. 71 / Friday, April 12, 2019 / Notices 19(b)(3)(A) of the Act 9 and Rule 19b– 4(f)(6) thereunder.10 A proposed rule change filed under Rule 19b–4(f)(6) 11 normally does not become operative for 30 days after the date of filing. However, pursuant to Rule 19b–4(f)(6)(iii),12 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 upon filing. Extending the pilot for an additional six months will allow the uninterrupted operation of the existing pilot to halt trading across the U.S. markets while the Commission considers whether to approve the pilot on a permanent basis. The extension simply maintains the status quo. Therefore, the Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. The Commission hereby designates the proposed rule change to be operative upon filing.13 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: 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–2019–010. 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 website (http://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 website 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 FINRA. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–FINRA– 2019–010, and should be submitted on or before May 3, 2019. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Electronic Comments • Use the Commission’s internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– FINRA–2019–010 on the subject line. Jill M. Peterson, Assistant Secretary. [FR Doc. 2019–07243 Filed 4–11–19; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–85541; File No. SR– PEARL–2019–12] Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX PEARL Fee Schedule April 8, 2019. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on March 27, 2019, MIAX PEARL, LLC (‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend the MIAX PEARL Fee Schedule (the ‘‘Fee Schedule’’) to establish certain non-transaction fees applicable to participants and new members trading options on and/or using services provided by MIAX PEARL. MIAX PEARL commenced operations as a national securities exchange registered under Section 6 of the Act 3 on February 6, 2017.4 The Exchange adopted its transaction fees and certain of its non-transaction fees in its filing SR–PEARL–2017–10.5 While changes to the Fee Schedule pursuant to this proposal are effective upon filing, the Exchange has designated these changes to be operative on April 1, 2019. The text of the proposed rule change is available on the Exchange’s website at http://www.miaxoptions.com/rulefilings/pearl at MIAX PEARL’s principal office, and at the Commission’s Public Reference Room. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78f. 4 See Securities Exchange Act Release No. 79543 (December 13, 2016), 81 FR 92901 (December 20, 2016) (File No. 10–227) (order approving application of MIAX PEARL, LLC for registration as a national securities exchange). 5 See Securities Exchange Act Release No. 80061 (February 17, 2017), 82 FR 11676 (February 24, 2017) (SR–PEARL–2017–10). 2 17 jbell on DSK30RV082PROD with NOTICES 9 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 11 Id. 12 17 CFR 240.19b–4(f)(6)(iii). 13 For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 10 17 VerDate Sep<11>2014 18:18 Apr 11, 2019 Jkt 247001 14 17 PO 00000 CFR 200.30–3(a)(12). Frm 00073 Fmt 4703 Sfmt 4703 14983 E:\FR\FM\12APN1.SGM 12APN1

Agencies

[Federal Register Volume 84, Number 71 (Friday, April 12, 2019)]
[Notices]
[Pages 14981-14983]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07243]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85547; File No. SR-FINRA-2019-010]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Extend the Pilot Period Related to FINRA Rule 
6121.02 (Market-Wide Circuit Breakers in NMS Stocks)

April 8, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on April 5, 2019, 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 Substance 
of the Proposed Rule Change

    FINRA is proposing to extend the pilot period related to FINRA Rule 
6121.02 (Market-wide Circuit Breakers in NMS Stocks) to the close of 
business on October 18, 2019.
    The text of the proposed rule change is available on FINRA's 
website at http://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.

[[Page 14982]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Rule 6121.02 provides a methodology for determining when to halt 
trading in all NMS Stocks due to extraordinary market volatility, i.e., 
market-wide circuit breakers. The market-wide circuit breaker mechanism 
under Rule 6121.02 was approved by the Commission to operate on a pilot 
basis, the term of which was to coincide with the pilot period for the 
Plan to Address Extraordinary Market Volatility Pursuant to Rule 608 of 
Regulation NMS (the ``LULD Plan''),\4\ including any extensions to the 
pilot period for the LULD Plan.\5\ The Commission published an 
amendment to the LULD Plan for it to operate on a permanent, rather 
than pilot, basis.\6\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 67091 (May 31, 
2012), 77 FR 33498 (June 6, 2012) (the ``Limit Up-Limit Down 
Release'').
    \5\ See Securities Exchange Act Release Nos. 67090 (May 31, 
2012), 77 FR 33531 (June 6, 2012) (Order Approving File No. SR-
FINRA-2011-054).
    \6\ See Securities Exchange Act Release Nos. 84843 (December 18, 
2018), 83 FR 66464 (December 26, 2018) (Amendment No. 18 Proposing 
Release).
---------------------------------------------------------------------------

    FINRA proposes to amend Rule 6121.02 to untie the pilot's 
effectiveness from that of the LULD Plan and to extend the pilot's 
effectiveness to the close of business on October 18, 2019. FINRA does 
not propose any additional changes to Rule 6121.02.
    Market-wide circuit breakers under Rule 6121.02 provide an 
important, automatic mechanism that is invoked to promote stability and 
investor confidence during a period of significant stress when 
securities markets experience extreme broad-based declines. All U.S. 
equity exchanges have rules similar to Rule 6121.02 relating to market-
wide circuit breakers, which are designed to slow the effects of 
extreme price movement through coordinated trading halts across 
securities markets when severe price declines reach levels that may 
exhaust market liquidity. Market-wide circuit breakers provide for 
trading halts in all equities and options markets during a severe 
market decline as measured by a single-day decline in the S&P 500 
Index.
    Rule 6121.02 generally provides that, in the event of a Level 1, 
Level 2 or Level 3 Market Decline,\7\ as determined by a primary 
listing market and publicly disseminated, FINRA shall halt trading 
otherwise than on an exchange in all NMS stocks and shall not permit 
the resumption of trading for the time periods specified by the primary 
listing market. Rule 6121.02 also provides that, if trading is halted 
in all NMS stocks for a Level 1 or a Level 2 Market Decline, FINRA will 
halt trading otherwise than on an exchange in all NMS stocks until 
trading has resumed on the primary listing market; if, however, the 
primary listing market does not reopen a security within 15 minutes 
following the end of the 15-minute halt period, FINRA may permit the 
resumption of trading otherwise than on an exchange in that security if 
trading in the security has commenced on at least one other national 
securities exchange. If a Level 3 Market Decline occurs at any time 
during the trading day, FINRA shall halt trading otherwise than on an 
exchange in all NMS stocks until the primary listing market opens the 
next trading day.
---------------------------------------------------------------------------

    \7\ For purposes of the Rule, a ``Market Decline'' means a 
decline in the value of the S&P 500[supreg] Index between 9:30 a.m. 
and 4:00 p.m. on a trading day as compared to the closing value of 
the S&P 500[supreg] Index for the immediately preceding trading day.
---------------------------------------------------------------------------

    FINRA intends to file a separate proposed rule change with the 
Commission to operate Rule 6121.02 on a permanent, rather than pilot, 
basis. Extending the effectiveness of Rule 6121.02 to the close of 
business on October 18, 2019 should provide the Commission adequate 
time to consider whether to approve FINRA's separate proposal to 
operate the market-wide circuit breaker mechanism under Rule 6121.02 on 
a permanent basis.
    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 FINRA can implement the proposed rule change 
immediately.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\8\ which requires, among 
other things, that FINRA rules must be designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, to remove impediments to, and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest. FINRA also 
believes that the proposed rule change promotes just and equitable 
principles of trade in that it promotes transparency and uniformity 
across markets concerning when and how to halt trading in all stocks as 
a result of extraordinary market volatility. Extending the market-wide 
circuit breaker pilot under Rule 6121.02 for an additional six months 
would ensure the continued, uninterrupted operation of a consistent 
mechanism to halt trading across the U.S. markets while the Commission 
considers whether to approve the pilot on a permanent basis. The 
proposed rule change would thus promote fair and orderly markets and 
the protection of investors and the public interest. Based on the 
foregoing, FINRA believes the benefits to market participants from the 
market-wide circuit breaker mechanism under Rule 6121.02 should 
continue on a pilot basis while the Commission considers whether to 
permanently approve Rule 6121.02.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. FINRA does not believe that the 
proposed rule change implicates any competitive issues because the 
proposal would ensure the continued, uninterrupted operation of a 
consistent mechanism to halt trading across the U.S. markets while the 
Commission considers whether to permanently approve the market-wide 
circuit breaker mechanism under Rule 6121.02. Further, FINRA 
understands that the other self-regulatory organizations will file 
proposals to extend their rules regarding the market-wide circuit 
breaker pilot with the Commission so that the market-wide circuit 
breaker mechanism may continue uninterrupted while the Commission 
considers whether to approve its operation on a permanent basis.

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

[[Page 14983]]

19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
does not become operative for 30 days after the date of filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\12\ 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 upon filing. Extending the pilot for an additional six 
months will allow the uninterrupted operation of the existing pilot to 
halt trading across the U.S. markets while the Commission considers 
whether to approve the pilot on a permanent basis. The extension simply 
maintains the status quo. Therefore, the Commission believes that 
waiving the 30-day operative delay is consistent with the protection of 
investors and the public interest. The Commission hereby designates the 
proposed rule change to be operative upon filing.\13\
---------------------------------------------------------------------------

    \11\ Id.
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-FINRA-2019-010 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-2019-010. 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 website (http://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 website 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 FINRA. All comments received 
will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-FINRA-2019-010, and should be submitted 
on or before May 3, 2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-07243 Filed 4-11-19; 8:45 am]
BILLING CODE 8011-01-P