[Federal Register Volume 75, Number 109 (Tuesday, June 8, 2010)]
[Notices]
[Pages 32519-32523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13662]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62205; File No. SR-FINRA-2010-024]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of Proposed Rule Change To Adopt
FINRA Rule 4210 (Margin Requirements), FINRA Rule 4220 (Daily Record of
Required Margin) and FINRA Rule 4230 (Required Submissions for Requests
for Extensions of Time Under Regulation T and SEC Rule 15c3-3) in the
Consolidated FINRA Rulebook
June 2, 2010.
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 May 14, 2010, Financial Industry Regulatory
[[Page 32520]]
Authority, Inc. (``FINRA'') (f/k/a National Association of Securities
Dealers, Inc. (``NASD'')) filed with the Securities and Exchange
Commission (``SEC'' or ``Commission'') the proposed rule change as
described in Items I, II, and III below, which Items have been prepared
by FINRA. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to adopt (1) NASD Rules 2520, 2521, 2522, and
IM-2522 regarding margin requirements, (2) NASD Rule 3160 regarding
extension of time requests under Regulation T and SEC Rule 15c3-3, and
(3) Incorporated NYSE Rule 432(a) regarding daily record of margin
requirements as FINRA rules in the consolidated FINRA rulebook, subject
to certain amendments, and to delete Incorporated NYSE Rule 431 (Margin
Requirements), Incorporated NYSE Rule 431 Interpretations,\3\
Incorporated NYSE Rule 432(b) and Incorporated NYSE Rule 434 (Required
Submissions of Requests for Extension of Time for Customers). The
proposed rule change would (1) Consolidate and renumber NASD Rules
2520, 2521, 2522 and IM-2522 as FINRA Rule 4210 (Margin Requirements),
(2) renumber NASD Rule 3160 as FINRA Rule 4230 (Required Submissions
for Requests for Extensions of Time Under Regulation T and SEC Rule
15c3-3), and (3) renumber Incorporated NYSE Rule 432(a) as FINRA Rule
4220 (Daily Record of Required Margin) in the consolidated FINRA
rulebook.
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\3\ Assuming SEC approval of the proposed rule change, FINRA
expects to maintain the Incorporated NYSE Rule 431 Interpretations
as interpretations to FINRA Rule 4210.
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The text of the proposed rule change is available on FINRA's Web
site 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
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
As part of the process of developing a new consolidated rulebook
(``Consolidated FINRA Rulebook''),\4\ FINRA is proposing to adopt (1)
NASD Rules 2520, 2521, 2522, and IM-2522 regarding margin requirements,
(2) NASD Rule 3160 regarding extension of time requests under
Regulation T and SEC Rule 15c3-3, and (3) Incorporated NYSE Rule 432(a)
regarding daily record of margin requirements as FINRA rules in the
Consolidated FINRA Rulebook, subject to certain amendments, and to
delete Incorporated NYSE Rule 431 (Margin Requirements), Incorporated
NYSE Rule 431 Interpretations,\5\ Incorporated NYSE Rule 432(b) and
Incorporated NYSE Rule 434 (Required Submissions of Requests for
Extension of Time for Customers). The proposed rule change would (1)
consolidate and renumber NASD Rules 2520, 2521, 2522 and IM-2522 as
FINRA Rule 4210 (Margin Requirements), (2) renumber NASD Rule 3160 as
FINRA Rule 4230 (Required Submissions for Requests for Extensions of
Time Under Regulation T and SEC Rule 15c3-3), and (3) renumber
Incorporated NYSE Rule 432(a) as FINRA Rule 4220 (Daily Record of
Required Margin) in the Consolidated FINRA Rulebook.
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\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 FINRA Information Notice, March 12, 2008 (Rulebook
Consolidation Process).
\5\ See supra note 3.
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Margin Requirements--NASD Rules 2520, 2521, 2522, and IM-2522 and
Incorporated NYSE Rule 431
FINRA proposes to adopt the margin requirements set forth in NASD
Rules 2520 through 2522 and IM-2522 as FINRA Rule 4210, subject to
certain amendments, discussed below and to delete Incorporated NYSE
Rule 431 (Margin Requirements). The proposed amendments, among other
things, reflect certain requirements in Incorporated NYSE Rule 431.
NASD Rule 2520 (Margin Requirements) and Incorporated NYSE Rule
431, which are almost identical, prescribe requirements governing the
extension of credit by members that offer margin accounts to customers,
as generally permitted in accordance with Regulation T of the Board of
Governors of the Federal Reserve System (``Regulation T'').\6\ These
rules promulgate the margin requirements that determine the amount of
collateral customers are expected to maintain in their margin accounts,
including strategy-based margin accounts and portfolio margin accounts.
Maintenance margin requirements for equity, fixed income, warrants and
option securities also are established under these rules.
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\6\ See Regulation T Section 220.4.
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Rule Structure
FINRA proposes to combine NASD Rules 2520, 2521, 2522 and IM-2522
into the single consolidated margin rule, FINRA Rule 4210. In addition,
FINRA proposes to re-structure the rule to improve its organization and
make it easier to read. First, FINRA proposes to incorporate NASD Rule
2521 (Margin--Exemption for Certain Members) as FINRA Rule 4210(h),
which provides that any member for which another self-regulatory
organization acts as the designated examining authority is exempt from
FINRA Rule 4210. Second, FINRA proposes to incorporate NASD Rule 2522
(Definitions Related to Options, Currency Warrants, Currency Index
Warrants and Stock Index Warrant Transactions) as FINRA Rule
4210(f)(2)(A), which contains definitions regarding margining options,
currency warrants, currency index warrants and stock index warrant
transactions.\7\ In so doing, FINRA proposes to delete extraneous
definitions and retain only those definitions that are pertinent to the
new rule. Third, FINRA proposes to combine the margin provisions
regarding currency warrants, currency index warrants and stock index
warrants from NASD Rule 2520(f)(10) together with similar sections in
paragraph (f)(2) of FINRA Rule 4210. All margin provisions regarding
such warrants were combined in a single section in corresponding
Incorporated NYSE Rule 431(f)(2), and FINRA proposes to follow this
model. FINRA believes combining all provisions in a single section
regarding such warrants will make the rule easier to read. Finally,
FINRA proposes to incorporate NASD IM-2522 (Computation of Elapsed
Days) as Supplementary Material to FINRA Rule
[[Page 32521]]
4210, which provides illustrations on how to calculate the number of
elapsed days for accrued interest on Treasury bonds or notes.
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\7\ In this regard, FINRA proposes to adopt the model of
Incorporated NYSE Rule 431 of consolidating relevant definitions
into FINRA Rule 4210.
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Net Capital Calculations
FINRA proposes in several instances in FINRA Rule 4210 \8\ to
specify that the member should reference SEC Rule 15c3-1 and, if
applicable, FINRA Rule 4110 (Capital Compliance) when calculating net
capital, charges against net capital and haircut requirements. Members
that may be subject to greater net capital requirements pursuant to
FINRA Rule 4110 would need to ensure they are in compliance with both
the SEC and FINRA net capital provisions in calculating net capital and
its impact on margin calculations. In addition, consistent with the
corresponding Incorporated NYSE Rule 431 requirements, FINRA proposes
to provide in FINRA Rule 4210(e)(5)(A) and (B) (regarding specialists'
and market makers' accounts), (e)(6)(A) (regarding broker-dealer
accounts) and (e)(6)(B)(i)c. (regarding joint back office arrangements)
that when computing charges against net capital for transactions in
securities covered by FINRA Rule 4210(e)(2)(F) (regarding transactions
with exempt accounts involving certain ``good faith'' securities) and
FINRA Rule 4210(e)(2)(G) (regarding transactions with exempt accounts
involving highly rated foreign sovereign debt securities and investment
grade debt securities), absent a greater haircut requirement that may
have been imposed on such securities pursuant to FINRA Rule 4110(a),
the respective requirements of those paragraphs may be used, rather
than the haircut requirements of SEC Rule 15c3-1.
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\8\ See, e.g., FINRA Rule 4210(e)(2)(D), (e)(2)(F), (e)(2)(G),
(e)(4), (e)(5) and (e)(6). Incorporated NYSE Rule 431 referenced
NYSE's net capital rules in these same sections, and FINRA proposes
to follow this model.
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Joint Accounts Exemption
FINRA proposes to integrate Incorporated NYSE Rule 431
Supplementary Material .10 into FINRA Rule 4210(e)(3) regarding joint
accounts in which the carrying member or a partner or stockholder
therein has an interest. The provision permits a member to seek an
exemption under the FINRA Rule 9600 Series if the account is confined
exclusively to transactions and positions in exempted securities. The
proposed rule change would provide that any such application shall
include the complete description of the security; cost price, offering
price and principal amount of obligations which have been purchased or
may be required to be purchased; the date on which the security is to
be purchased or on which there will be a contingent commitment to
purchase the security; the approximate aggregate indebtedness; the
approximate net capital; and the approximate total market value of all
readily marketable securities (1) exempted and (2) non-exempted, held
in member accounts, partners' capital accounts, partners' individual
accounts covered by approved agreements providing for their inclusion
as partnership property, accounts covered by subordination agreements
approved by FINRA and customers' accounts in deficit.
Additional Requirements on Control and Restricted Securities and
Relationship to FINRA Rule 4120 (Regulatory Notification and Business
Curtailment)
FINRA proposes to adopt provisions from Incorporated NYSE Rule 431
pertaining to deductions from net capital on control and restricted
securities, which are not contained in NASD Rule 2520.\9\ These
provisions, which would be set forth in FINRA Rule 4210(e)(8)(C)(ii),
(iii) and (v), require that a member make deductions from its net
capital if it extends credit over specified thresholds, discussed
below, on control and restricted securities, and it must take such
deductions into account when determining if it has reached any of the
financial triggers specified in FINRA Rule 4120.\10\ The proposed rule
change also would make conforming amendments to FINRA Rule
4120(a)(1)(F) and (c)(1)(F) (Regulatory Notification and Business
Curtailment) to clarify that a member must take into account the
special deductions from net capital set forth in FINRA Rule
4210(e)(8)(C) in determining its status under FINRA Rule 4120. The
margin provision specifically provides that the greater of the
aggregate credit agreed to be extended in writing or the aggregate
credit that is actually extended to all customers on control and
restricted securities of any one issue that exceeds 10 percent of the
member's excess net capital shall be deducted from net capital for
purposes of determining a member's status under FINRA Rule 4120. The
amount of such aggregate credit extended, which has been deducted in
computing net capital under SEC Rule 15c3-1 and, if applicable, FINRA
Rule 4110(a), need not be included in this calculation. FINRA, upon
written application, may reduce the deduction to net capital under
FINRA Rule 4120 to 25 percent of such aggregate credit extended that
exceeds 10 percent but is less than 15 percent of the member's excess
net capital. In addition, the aggregate credit extended to all
customers on all control and restricted securities (reduced by the
amount of such aggregate credit which has been deducted in computing
net capital under SEC Rule 15c3-1 and, if applicable, FINRA Rule
4110(a)), shall be deducted from net capital on the following basis for
purposes of determining a member's status under FINRA Rule 4120. First,
to the extent such net amount of credit extended does not exceed 50
percent of a member's excess net capital, 25 percent of such net amount
of credit extended shall be deducted. Second, 100 percent of such net
amount of credit extended which exceeds 50 percent of a member's excess
net capital shall be deducted. The amount to be deducted from net
capital for purposes of determining a member's status under Rule 4120
shall not exceed 100 percent of the aggregate credit extended reduced
by any amount deducted in computing net capital under SEC Rule 15c3-1
and, if applicable, Rule 4110(a).
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\9\ See Incorporated NYSE Rule 431(e)(8)(C)(ii), (iii) and (v).
\10\ FINRA Rule 4120 is based on Incorporated NYSE Rules 325 and
326, which were referenced in Incorporated NYSE Rule
431(e)(8)(C)(ii), (iii) and (v). FINRA Rule 4120 requires carrying
and clearing members to notify FINRA if any of the specified
financial triggers in FINRA Rule 4120 are reached. The rule also
addresses circumstances under which a member would be prohibited
from expanding its business or required to reduce its business.
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Day Trading
FINRA proposes to adopt Supplementary Material .30 and .60 from
Incorporated NYSE Rule 431 regarding day trading in proposed FINRA Rule
4210(f)(8)(B). FINRA proposes to integrate Supplementary Material .60
from Incorporated NYSE Rule 431 in FINRA Rule 4210(f)(8)(B)(iii) to
provide that the day-trading buying power for non-equity securities may
be computed using the applicable special maintenance margin
requirements pursuant to other provisions of the margin rule. In
addition, FINRA proposes to adopt Supplementary Material .30 from
Incorporated NYSE Rule 431 as FINRA Rule 4210(f)(8)(B)(iv)b. to provide
that in the event that the member at which a customer seeks to open an
account or resume day trading in an existing account, knows or has a
reasonable basis to believe that the customer will engage in pattern
day trading, then the minimum equity required ($25,000) must be
deposited in the account prior to commencement of day trading. FINRA
also proposes to relocate
[[Page 32522]]
paragraph (f)(8)(C) of NASD Rule 2520 into FINRA Rule
4210(f)(8)(B)(iii) that specifies that day trading deficiencies must be
met within five business days of the trade date.
Portfolio Margining
FINRA proposes to amend FINRA Rule 4210(g)(5) to highlight to
members that portfolio margin-eligible participants, in addition to
being required to be approved to engage in uncovered short option
contracts pursuant to FINRA Rule 2360, must be approved to engage in
security futures transactions pursuant to FINRA Rule 2370.
Conforming Amendments
FINRA proposes to add the terms ``approved market maker,'' ``market
maker'' and ``market making'' to FINRA Rule 4210(f)(10)(F) to conform
to rule changes made by the NYSE.\11\ The NYSE changes were made in
connection with the operation of the NYSE's Market Model.\12\ As a
result of the implementation of these changes, the NYSE amended several
of its rules, including NYSE Rule 431(f)(10)(F), to add the terms
``approved market maker,'' ``market maker'' and ``market making'' to
reflect the current DMMs operating on the NYSE. FINRA also proposes
amending the definitions of the same terms used in FINRA Rule
4210(e)(5)(A) and (f)(10)(E) for consistency purposes.
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\11\ See Securities Exchange Act Release No. 59077 (December 10,
2008), 73 FR 76691 (December 17, 2008) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change by New York Stock
Exchange LLC Amending Exchange Rule 104T to Make a Technical
Amendment to Delete Language Relating to Orders Received by NYSE
Systems and DMM Yielding; Clarifying the Duration of the Provisions
of Rule 104T; Making Technical Amendments to Rule 98 and Rule 123E
to Update Rule References for DMM Net Capital Requirements;
Rescinding Paragraph (g) of Rule 123; and Making Conforming Changes
to Certain Exchange Rules to Replace the Term ``Specialist'' with
``DMM''; File No. SR-NYSE-2008-127).
\12\ See Securities Exchange Act Release No. 58845 (October 24,
2008), 73 FR 64379 (October 29, 2008) (SEC Approval Order of SR-
NYSE-2008-46 approving certain rules to operate as a pilot scheduled
to end October 1, 2009); see also Securities Exchange Act Release
No. 60756 (October 1, 2009), 74 FR 51628 (October 7, 2009) (SR-NYSE-
2009-100); Securities Exchange Act Release No. 61031 (November 19,
2009), 74 FR 62368 (November 27, 2009); and Securities Exchange Act
Release No. 61724 (March 17, 2010), 75 FR 14221 (March 24, 2010)
(extending the operation of the pilot until the earlier of the SEC
approval to make permanent or September 30, 2010). As part of this
new model, the functions formerly carried out by specialists on the
NYSE were replaced by a new market participant, known as a
Designated Market Maker (``DMM'').
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Clarifying and Technical Amendments
Finally, FINRA proposes to make several technical changes to the
margin rule text to update terminology and similar clarifications.
First, FINRA proposes to add definitions to FINRA Rule 4210(f)(2)(A)
regarding ``listed'' and ``OTC'' options and employ such terms
throughout FINRA Rule 4210(f)(2).\13\ FINRA is not proposing any
substantive changes to the margin requirements for listed or over-the-
counter options; rather, the proposed rule change would make the rule
easier to read by creating such definitions and using the terms
consistently throughout the rule text.
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\13\ The term ``listed'' as used with reference to a call or put
option contract would mean an option contract that is traded on a
national securities exchange and issued and guaranteed by a
registered clearing agency. The term ``OTC'' as used with reference
to a call or put option contract would mean an over-the-counter
option contract that is not traded on a national securities exchange
and is issued and guaranteed by the carrying broker-dealer.
Accordingly, the proposed rule change would delete as unnecessary
certain descriptive references in NASD Rule 2520(f)(2) to listed and
OTC options.
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Second, in proposed FINRA Rule 4210(f)(2)(I)(iv), FINRA proposes
several clarifications to terminology where no margin may be required
if the specified options or warrants are carried ``short'' in the
account of a customer, against an escrow agreement, and either are held
in the account at the time the options or warrants are written, or
received in the account promptly thereafter. The proposed rule change
would clarify that with respect to such options or warrants, an escrow
agreement is used, in a form satisfactory to FINRA, issued by a third
party custodian bank or trust company, and in compliance with the
requirements of Rule 610 of The Options Clearing Corporation. The
corresponding provisions in Incorporated NYSE Rule 431\14\ used the
terms ``letter of guarantee'' and ``escrow receipt'' while NASD Rule
2520 used the term ``letter of guarantee.'' While in this context such
terms generally were used interchangeably, FINRA proposes to use the
term ``escrow agreement'' to eliminate any potential confusion.\15\ The
proposed rule change also would replace the term ``guarantor'' with the
term ``custodian'' to more accurately reflect the third party's role.
In addition, the proposed rule change would revise the definition of
what constitutes a qualified security by eliminating the reference to
the list of Over-the-Counter Margin Stocks published by the Board of
Governors of the Federal Reserve System as the Federal Reserve no
longer publishes such a list.
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\14\ See Incorporated NYSE Rule 431(f)(2)(H)(iv).
\15\ Such approach also is consistent with the CBOE rules. See
CBOE Rule 12.3(d).
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Third, the proposed rule change would insert the term ``aggregate''
before exercise price throughout proposed FINRA Rule 4210(f)(2)(H) and
(f)(2)(N) to clarify a calculation must be made in the strategies and
spreads that are noted (i.e., offsets, reverse conversions, butterfly
spread, etc.). Finally, the proposed rule change would make various
non-substantive changes to reflect the formatting, presentation and
style conventions used in the Consolidated FINRA Rulebook.
Daily Record of Margin Requirements--Incorporated NYSE Rule 432(a)
FINRA proposes to adopt Incorporated NYSE Rule 432(a) (Daily Record
of Required Margin) as FINRA Rule 4220 in substantially the form it
exists today. Incorporated NYSE Rule 432(a) sets forth the requirements
for daily recordkeeping of initial and maintenance margin calls that
are issued pursuant to Regulation T and the margin rules. There is no
corresponding NASD rule. FINRA believes that this is an important
requirement to heighten FINRA's ability to monitor members' margin call
practices. In addition, Incorporated NYSE Rule 432(b) prohibits a
member from allowing a customer to make a practice of satisfying
initial margin calls by the liquidation of securities. However, this
provision is substantially similar to the provision in proposed FINRA
Rule 4210(f)(7), except that the proposed FINRA rule provision does not
contain the exception for omnibus accounts. Accordingly, FINRA proposes
to eliminate Incorporated NYSE Rule 432(b) and modify paragraph (f)(7)
of FINRA Rule 4210 to add that the prohibition on liquidations shall
not apply to any account carried on an omnibus basis as prescribed by
Regulation T.
Required Submissions of Requests for Extension of Time Under Regulation
T and SEC Rule 15c3-3--NASD Rule 3160 and Incorporated NYSE Rule 434
FINRA proposes to adopt NASD Rule 3160 (Extensions of Time Under
Regulation T and SEC Rule 15c3-3) as FINRA Rule 4230 with one
modification discussed below and delete the substantively similar
Incorporated NYSE Rule 434 (Required Submission of Requests for
Extensions of Time for Customers). NASD Rule 3160 and Incorporated NYSE
Rule 434 set forth requirements governing members' requests for
extensions of time, as permitted in accordance with Regulation T and
SEC Rule 15c3-3(n). These rules provide that when FINRA is the
designated examining authority for a member, requests for extensions of
time must be submitted to FINRA for approval, in a format FINRA
requires. In addition, NASD Rule 3160 requires each
[[Page 32523]]
clearing member that submits extensions of time on behalf of broker-
dealers for which it clears to submit a monthly report to FINRA that
indicates overall ratios of requested extensions of time to total
transactions that have exceeded a percentage specified by FINRA.\16\
FINRA monitors the number of Regulation T and SEC Rule 15c3-3 extension
requests for each firm to determine whether to impose prohibitions on
further extensions of time.\17\
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\16\ See Notice to Members 06-62 (November 2006). FINRA would
retain the reporting threshold specified in Notice to Members 06-62
of requiring a report for all introducing or correspondent firms
that have overall ratios of requests for extensions of time to total
transactions for the month that exceed 2%. In the event FINRA
adjusts the reporting threshold, or the limitation threshold stated
in note 16 below, it would advise members of the new parameters in a
Regulatory Notice.
\17\ See supra note 15. FINRA will continue to prohibit further
extension of time requests for (1) introducing or correspondent
firms that exceed a 3% ratio of the number of extension of time
requests to total transactions for the month and (2) clearing firms
that exceed a 1% ratio of extension of time requests to total
transactions.
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FINRA proposes to add a provision to proposed FINRA Rule 4230 to
clarify that for the months when no broker-dealer for which a clearing
member clears exceeds the extension of time ratio criteria (i.e., 2%),
the clearing member must submit a report indicating such. FINRA had
previously requested such submissions but believes the submissions are
essential to ensure FINRA has a complete and accurate understanding of
correspondent firm extension requests.
As noted above, FINRA will announce the implementation date of the
proposed rule change in a Regulatory Notice to be published no later
than 90 days following Commission approval. The implementation date
will be no later than 180 days following Commission approval.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\18\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes that the proposed rule change will
clarify and streamline the margin requirements applicable to its
members, as well as those rules addressing extension of time requests
under Regulation T and SEC Rule 15c3-3.
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\18\ 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.
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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be 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 e-mail to [email protected]. Please include
File Number SR-FINRA-2010-024 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2010-024. This
file number should be included on the subject line if e-mail 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 (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 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 a.m. and 3 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-2010-024
and should be submitted on or before June 29, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-13662 Filed 6-7-10; 8:45 am]
BILLING CODE 8010-01-P