[Federal Register Volume 79, Number 222 (Tuesday, November 18, 2014)]
[Notices]
[Pages 68731-68733]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27187]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73576; File No. SR-FINRA-2014-045]
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
November 12, 2014.
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 October 31, 2014, 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,
II, and III 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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I. Self-Regulatory Organization's Statement of the Terms of 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 new consolidated 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, on the
Commission's Web site at http://www.sec.gov, 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.
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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 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 new consolidated supervision rules. On
December 23, 2013, the SEC approved a proposed rule change to adopt
NASD Rules 3010, 3012, and 3110 as FINRA Rules 3110, 3120, 3150, and
3170, with several
[[Page 68732]]
changes. FINRA also deleted in their entirety the corresponding
Incorporated NYSE Rules 342, 343, 354, 401, 401A and Incorporated NYSE
Interpretive Materials 342, 343, and 351.\5\ The new rules will be
implemented on December 1, 2014. As such, the proposed rule change
would update references to the new rule numbers in FINRA Rules 0150
(Application of Rules to Exempted Securities Except Municipal
Securities), 1010 (Electronic Filing Requirements for Uniform Forms),
2210 (Communications with the Public), 2220 (Options Communications),
2330 (Members' Responsibilities Regarding Deferred Variable Annuities),
2360 (Options), 5210 (Publication of Transactions and Quotations), 8312
(FINRA BrokerCheck Disclosure), 9217 (Violations Appropriate for
Disposition Under Plan Pursuant to SEA Rule 19d-1(c)(2)), and 9610
(Application).
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\5\ See Securities Exchange Act Release No. 71179 (December 23,
2013), 78 FR 79542 (December 30, 2013) (Order Approving File No. SR-
FINRA-2013-025).
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Second, the proposed rule change would make technical changes to
FINRA Rules 4553(e)(4) (Definitions), 7410(o) (Definitions), 12104
(Effect of Arbitration on FINRA Regulatory Activities; Arbitrator
Referral During or at Conclusion of Case), and 13104 (Effect of
Arbitration on FINRA Regulatory Activities; Arbitrator Referral During
or at Conclusion of Case) to reflect FINRA Manual style convention
changes.
Third, FINRA is proposing to amend Rule 6170 (Primary and
Additional MPIDs for Alternative Display Facility Participants) to
replace the references to ``TRACS'' with ``ADF,'' consistent with the
changes made throughout the Rule 6200 and 7100 Series pursuant to SR-
FINRA-2013-053.\6\
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\6\ See Securities Exchange Act Release No. 71467 (February 3,
2014), 79 FR 7485 (February 7, 2014) (Order Approving File No. SR-
FINRA-2013-053).
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Fourth, FINRA is proposing to make non-substantive changes to FINRA
Rule 2360(b)(23) (Tendering Procedures for Exercise of Options) to
update cross-references resulting from previous amendment to FINRA
Options rules.\7\ FINRA also is proposing to update the cross-
references in Rules 6282(f)(2) to reflect the renumbering of Rule
7130(c) as 7130(f) pursuant to SR-FINRA-2013-053.\8\ In addition, FINRA
is proposing to amend Rule 7110(i) to correct a cross-reference to Rule
6120, which instead should be to Rule 6220 (Definitions).\9\
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\7\ See Securities Exchange Act Release No. 62711 (August 12,
2010), 75 FR 51124 (August 18, 2010) (Order Approving [sic] File No.
SR-FINRA-2010-041).
\8\ See supra note 6.
\9\ See supra note 6.
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Finally, the proposed rule change would also amend Rule
7120(a)(2)(E) to delete a misplaced ``the,'' which was inadvertently
proposed in SR-FINRA-2013-053. The text would now read ``each System
identified trade.''
FINRA has filed the proposed rule change for immediate
effectiveness. The implementation date for the proposed rule change
will be December 1, 2014.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\10\ 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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\10\ 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) of the Act \11\ and Rule 19b-
4(f)(6) thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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 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-2014-045 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2014-045. 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 (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
10:00 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-2014-045, and should
be submitted on or before December 9, 2014.
[[Page 68733]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O' Neill,
Deputy Secretary.
[FR Doc. 2014-27187 Filed 11-17-14; 8:45 am]
BILLING CODE 8011-01-P