[Federal Register Volume 75, Number 224 (Monday, November 22, 2010)]
[Notices]
[Pages 71164-71166]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-29395]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63319; File No. SR-FINRA-2010-060]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Update Certain Cross-References and Make Non-
Substantive Technical Changes to Certain FINRA Rules
November 16, 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 November 10, 2010, 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
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[[Page 71165]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to update cross-references within certain FINRA
rules to reflect changes adopted in the consolidated FINRA rulebook and
to make non-substantive technical changes to certain FINRA Rules.
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
FINRA is in the process of developing a new 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 technical changes 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 Information Notice, March 12, 2008 (Rulebook
Consolidation Process).
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The proposed rule change would update rule cross-references to
reflect recent changes adopted in the Consolidated FINRA Rulebook. In
this regard, the proposed rule change would update references in FINRA
Rules 0150 (Application of Rules to Exempted Securities Except
Municipal Securities), 2130 (Approval Procedures for Day-Trading
Accounts), 2140 (Interfering With the Transfer of Customer Accounts in
the Context of Employment Disputes), 2150 (Improper Use of Customers'
Securities or Funds; Prohibition Against Guarantees and Sharing in
Accounts), 2270 (Day-Trading Risk Disclosure Statement), 2360
(Options), 5110 (Corporate Financing Rule--Underwriting Terms and
Arrangements), 5122 (Private Placements of Securities Issued By
Members), 5250 (Payments for Market Making), 6630 (Applicability of
FINRA Rules to Securities Previously Designated as PORTAL Securities),
9217 (Violations Appropriate for Disposition Under Plan Pursuant to SEA
Rule 19d-1(c)(2)), 9610 (Application), and 11574 (Certificate in Name
of Deceased Person, Trustee, etc.) that are needed as the result of
Commission approval of five recent FINRA proposed rule changes.\5\ In
addition, the proposed rule change would amend FINRA Rules 11100 (Scope
of Uniform Practice Code) and 11580 (Transfer of Limited Partnership
Securities), to update cross-references to NASD Rule 2810, which was
renumbered as FINRA Rule 2310.\6\ Finally, the proposed rule change
would make non-substantive technical changes to FINRA Rules 6420
(Definitions), 8313 (Release of Disciplinary Complaints, Decisions and
Other Information), 11560 (Certificate of Company Whose Transfer Books
Are Closed), 11720 (Irregular Delivery--Transfer Refused--Lost or
Stolen Securities), and 11870 (Customer Account Transfer Contracts),
and delete a reference to Rule 11830 (Reserved) to reflect changes in
FINRA style and naming conventions.
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\5\ See Securities Exchange Act Release No. 62482 (July 12,
2010), 75 FR 41562 (July 16, 2010) (Order Approving File No. SR-
FINRA-2010-024); Securities Exchange Act Release No. 62539 (July 21,
2010), 75 FR 44033 (July 27, 2010) (Order Approving File No. SR-
FINRA-2010-029); Securities Exchange Act Release No. 62702 (August
12, 2010), 75 FR 51147 (August 18, 2010) (Order Approving File No.
SR-FINRA-2010-026); Securities Exchange Act Release No. 62762
(August 23, 2010), 75 FR 53362 (August 31, 2010) (Order Approving
File No. SR-FINRA-2009-042); Securities Exchange Act Release No.
62842 (September 3, 2010), 75 FR 55842 (September 14, 2010) (Order
Approving File No. SR-FINRA-2010-030).
\6\ See Securities Exchange Act Release No. 59987 (May 27,
2009), 74 FR 26902 (June 4, 2009) (Order Approving File No. SR-
FINRA-2009-016).
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FINRA has filed the proposed rule change for immediate
effectiveness. The implementation date for the proposed rule change
will be December 15, 2010, the date on which certain of the previously
approved rule changes will be implemented,\7\ except for proposed rule
changes to FINRA Rule 6630(d)(1) that would eliminate the references to
NASD Rules 2730, 2740 and 2750 and add references to FINRA Rule 5141.
Those proposed changes will be implemented on February 8, 2011, the
date on which the relevant previously approved rule change will be
implemented.\8\
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\7\ See Regulatory Notice 10-49 (October 2010) (regarding File
Nos. SR-FINRA-2009-042, FINRA-2010-026, and SR-FINRA-2010-030,
effective December 15, 2010). File No. SR-FINRA-2010-024 is
effective December 2, 2010. See Regulatory Notice 10-45 (October
2010).
\8\ See Regulatory Notice 10-47 (October 2010) (regarding File
No. SR-FINRA-2010-029).
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2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\9\ 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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\9\ 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
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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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
[[Page 71166]]
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.
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-2010-060 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-2010-060. 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-2010-060
and should be submitted on or before December 13, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-29395 Filed 11-19-10; 8:45 am]
BILLING CODE 8011-01-P