[Federal Register Volume 81, Number 109 (Tuesday, June 7, 2016)]
[Notices]
[Pages 36628-36632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-13318]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77963; File No. SR-FINRA-2016-017]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend FINRA Rule 2242 (Debt Research Analysts
and Debt Research Reports)
June 1, 2016.
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 24, 2016, 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 the
Substance of the Proposed Rule Change
FINRA is proposing to amend FINRA Rule 2242 (Debt Research Analysts
and Debt Research Reports) to clarify the application of the rule in
four respects: (1) The consent requirement for institutional debt
research reports distributed to non-U.S. investors by non-U.S.
affiliates of members; (2) the consent requirement for institutional
debt research reports distributed to specified persons for
informational purposes unrelated to investing in debt securities; (3)
the scope of the institutional debt research report exemption when
distributing third-party debt research reports to eligible
institutional investors; and (4) the disclosure requirements for debt
research analysts in public appearances.
Below is the text of the proposed rule change. Proposed new
language is in italics; proposed deletions are in brackets.
* * * * *
2240. CONFLICTS OF INTEREST
* * * * *
2242. Debt Research Analysts and Debt Research Reports
(a) through (i) No Change.
(j) Exemption for Debt Research Reports Provided to Institutional
Investors
(1) Except as provided in paragraphs (j)(2) and (j)(3) of this
Rule, the provisions of this Rule shall not apply to the distribution
of a debt research report to:
(A) through (B) No Change.
(2) Notwithstanding paragraph (j)(1) of this Rule, a member must
establish, maintain and enforce written policies and procedures
reasonably designed to identify and effectively manage conflicts of
interest described in paragraphs (b)(2)(A)(i), (b)(2)(H) (with respect
to pressuring), (b)(2)(I), (b)(2)(K), (b)(2)(L), (b)(2)(M), (b)(2)(N)
and Supplementary Material .02(a) of this Rule.
(3) Notwithstanding paragraph (j)(1) of this Rule, a member that
distributes third-party debt research reports to institutional
investors pursuant to this exemption must establish, maintain and
enforce written policies and procedures reasonably designed to comply
with paragraphs (g)(1), (g)(2), (g)(4) and (g)(6) of this Rule.
[(3)] (4) Debt research reports provided to institutional investors
pursuant to this exemption (``institutional debt research'') must
disclose prominently on the first page that:
(A) ``This document is intended for institutional investors and is
not subject to all of the independence and disclosure standards
applicable to debt research reports prepared for retail investors.''
(B) If applicable, ``The views expressed in this report may differ
from the views offered in [Firm's] debt research reports prepared for
retail investors.''
(C) If applicable, ``This report may not be independent of [Firm's]
proprietary interests. [Firm] trades the securities covered in this
report for its own account and on a discretionary basis on behalf of
certain clients. Such trading interests may be contrary to the
recommendation(s) offered in this report.''
(5) Notwithstanding paragraph (j)(4) of this Rule, a member that
distributes third-party debt research reports to institutional
investors pursuant to this exemption must disclose prominently the
disclosures required by paragraphs (j)(4)(A) and (j)(4)(C) of this
Rule.
[(4)] (6) A member must establish, maintain and enforce written
policies and procedures reasonably designed to ensure that
institutional debt research is made available only to eligible
institutional investors. A member may not rely on this exemption with
respect to a debt research report that the member has reason to believe
will be redistributed to a retail investor.
[(5)] (7) This paragraph (j) does not relieve a member of its
obligations to comply with the antifraud provisions of the federal
securities laws and FINRA rules.
(k) No Change.
Supplementary Material: ------
.01 through .11 No Change.
.12 Distribution of Institutional Debt Research to Non-U.S.
Investors. The requirements of paragraphs (j)(1)(A) and (B) of this
Rule shall not apply to the distribution of an institutional debt
research report by a non-U.S. affiliate of a member to a non-U.S.
investor, provided that:
(a) The non-U.S. investor is not a customer of the member;
(b) The non-U.S. investor is a customer of the non-U.S. affiliate
of the member; and
(c) The non-U.S. affiliate of the member has a reasonable basis to
believe that the customer meets the definition of ``institutional
account'' in Rule 4512(c).
.13 Distribution of Institutional Debt Research for Informational
Purposes
(a) A member may distribute institutional debt research reports to
the persons described in paragraph (c) of this Supplementary Material
.13 for informational purposes unrelated to
[[Page 36629]]
investing in debt securities, provided that the member does not
distribute the reports prior to their publication and the member has
disclosed that:
(1) The member may provide the recipient debt research reports that
were prepared for institutional investors and are not subject to all of
the independence and disclosure standards applicable to debt research
reports prepared for retail investors; and
(2) The institutional debt research reports would be provided only
for informational purposes and not for the purpose of making an
investment decision related to debt securities.
(b) If the person receiving institutional debt research pursuant to
this Supplementary Material .13 does not contact the member to request
that such institutional debt research not be provided, the member may
reasonably conclude that the person has consented to receiving debt
institutional research according to the terms of this Supplementary
Material .13.
(c) Institutional debt research may be distributed for
informational purposes unrelated to investing in debt securities
pursuant to this Supplementary Material .13 to:
(1) Regulators for regulatory purposes;
(2) Academics for academic purposes;
(3) Issuers for the purpose of enhancing knowledge of their
industry and competitors and market and economic factors; and
(4) Media organizations for news gathering purposes.
.14 Public Appearances by Research Analysts. A member or debt
research analyst will not be required to make a disclosure required by
paragraph (d) of this Rule where attendance at the public appearance is
limited to institutional investors eligible to receive institutional
debt research pursuant to paragraph (j) of this Rule. Members must
maintain records of public appearances by debt research analysts
sufficient to demonstrate that attendance at the public appearance was
limited to institutional investors eligible to receive institutional
debt research pursuant to paragraph (j) of this Rule. Such records must
be maintained for at least three years from the date of the public
appearance.
* * * * *
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
On November 14, 2014, FINRA filed SR-FINRA-2014-048 to adopt new
Rule 2242 to address conflicts of interest relating to the publication
and distribution of debt research reports.\4\ On February 19, 2015,
FINRA filed Amendment No. 1 responding to the comments received to the
proposal as well as to propose amendments in response to these
comments.\5\ The proposed rule change, as modified by Amendment No. 1
thereto, was approved by the Commission on July 16, 2015.\6\
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\4\ See Securities Exchange Act Release No. 73623 (November 18,
2014), 79 FR 69905 (November 24, 2014) (Notice of Filing of File No.
SR-FINRA-2014-048).
\5\ See Securities Exchange Act Release No. 74490 (March 12,
2015), 80 FR 14198 (March 18, 2015) (Notice of Filing of Amendment
No. 1 to File No. SR-FINRA-2014-048).
\6\ See Securities Exchange Act Release No. 75472 (July 16,
2015), 80 FR 43528 (July 22, 2015) (Order Approving File No. SR-
FINRA-2014-048).
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Consistent with the proposed rule change, FINRA announced an
effective date for Rule 2242 of February 22, 2016 in a Regulatory
Notice published on August 26, 2015.\7\ FINRA subsequently delayed
implementation of the Rule until July 16, 2016 to give members
additional time to implement the requirements of the Rule, including
incorporating some guidance published by FINRA in some Frequently Asked
Questions.\8\
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\7\ See Regulatory Notice 15-31 (August 2015).
\8\ See Securities Exchange Act Release No. 77158 (February 17,
2016), 81 FR 9065 (February 23, 2016) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2016-008). See also
Securities Exchange Act Release No. 77726 (April 27, 2016), 81 FR
26593 (May 3, 2016) (Notice of Filing and Immediate Effectiveness of
File No. SR-FINRA-2016-013).
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Distribution to Non-U.S. Investors by Non-U.S. Affiliates of Members
Rule 2242(j) exempts debt research reports distributed solely to
eligible institutional investors from most of the provisions regarding
supervision, coverage determinations, budget and compensation
determinations, and all of the disclosure requirements applicable to
debt research reports distributed to retail investors. Rule 2242(j)(2)
sets out the provisions of the Rule to which institutional debt
research remains subject, and Rule 2242(j)(3) specifies a ``health
warning'' that must be prominently disclosed on the first page of
institutional debt research, alerting recipients that, among other
things, the research report is not subject to all of the protections of
retail debt research. Rule 2242(j)(1) requires either negative or
affirmative written consent for eligible institutional investors to
receive institutional debt research pursuant to the exemption.
FINRA is proposing to clarify the application of Rule 2242(j) to
non-U.S. investors that are customers of a member's U.S. affiliate but
not customers of the member. Specifically, FINRA is proposing to amend
Rule 2242 to include Supplementary Material providing that the
requirements of paragraphs (j)(1)(A) and (B) of the Rule \9\ shall not
apply to the distribution of an institutional debt research report by a
non-U.S. affiliate of a member to a non-U.S. investor, provided that:
(a) The non-U.S. investor is not a customer of the member; (b) the non-
U.S. investor is a customer of the non-U.S. affiliate of the member;
and (c) the non-U.S. affiliate of the member has a reasonable basis to
believe that the customer meets the definition of ``institutional
account'' in Rule 4512(c). A member's research reports, including
globally branded research reports, may be distributed by a non-U.S.
affiliate of the member to its non-U.S. customers pursuant to proposed
Supplementary Material .12.
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\9\ Rule 2242(j)(1)(A) allows distribution of institutional debt
research via negative written consent to a person who meets the
definition of a qualified institutional buyer (QIB) and where,
pursuant to FINRA Rule 2111(b): (1) The member or associated person
has a reasonable basis to believe that the QIB is capable of
evaluating investment risks independently, both in general and with
regard to particular transactions and investment strategies
involving a debt security or debt securities; and (2) the QIB has
affirmatively indicated that it is exercising independent judgment
in evaluating the member's recommendations pursuant to FINRA Rule
2111 and such affirmation is broad enough to encompass transactions
in debt securities. Rule 2242(j)(1)(B) allows distribution of
institutional debt research via affirmative written consent to a
person who meets the definition of ``institutional account'' in
FINRA Rule 4512(c).
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FINRA drafted the institutional debt research exemption with U.S.
customers in mind. FINRA is concerned that, absent the proposed
amendment, the exemption may be impractical for some U.S. member firms
with global operations. These firms typically have non-U.S. affiliates
that distribute the member research to those affiliates' non-U.S.
customers. In many cases, the U.S. member and its non-U.S. affiliates
will produce a single globally branded research product, which the non-
U.S.
[[Page 36630]]
affiliates will distribute to their own customers. Rule 2242(j)(4)
states that a member may not rely on the institutional debt research
exemption with respect to a debt research report that the member has
reason to believe will be redistributed to a retail investor. Thus, to
the extent these member firms with global research operations cannot
obtain the required consents from all non-U.S. customers of their non-
U.S. affiliates, they would lose the ability to use the exemption with
respect to institutional debt research distributed to their U.S.
customers--the intended purpose of the Rule. Alternatively, the non-
U.S. affiliates would be required to cut off distribution of such
research to non-U.S. customers that could not or would not give the
required consent,\10\ notwithstanding that receipt of the research is
permitted and subject to applicable regulations in the home
jurisdiction. Under these circumstances, FINRA believes where these
customers are not also customers of the U.S. broker-dealers, the
regulatory concerns addressed by the consent requirements of the
exemption are far more attenuated.
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\10\ FINRA understands that firms have had difficulty obtaining
consents from non-U.S. entities for several reasons, including the
absence of the QIB standard in other jurisdictions and confusion
from the customer as to why it must provide affirmative written
consent under a U.S.-based rule regime to continue to receive a
valued product from the non-U.S. affiliate of which it is a
customer.
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Importantly, the proposed rule change would have no investor
protection impact on either U.S. institutional investors or non-U.S.
customers of the U.S. broker-dealer, as the consent requirements would
continue to apply under those circumstances. Moreover, FINRA believes
the proposed rule change would have minimal investor protection impact
on the non-U.S. institutional investors, as the institutional debt
research they would receive would still be subject to all other aspects
of Rule 2242(j), including notably the ``health warning'' that
identifies the intended institutional audience and highlights the key
conflicts associated with the research report.
Distribution to Persons for Informational Purposes
The requirements of Rule 2242 are premised on the idea that debt
research reports are distributed to investors that may base their
investment decisions on the debt research reports or may incorporate
elements of the debt research reports into their investment decisions.
FINRA is aware that some members make their research reports available
to some persons for specific informational purposes unrelated to
investing in debt securities. The institutional exemption in Rule
2242(j) does not currently expressly contemplate distributing
institutional debt research reports to these ``non-investors.'' FINRA
believes that it is appropriate to permit members to distribute
institutional debt research reports to these persons, provided that the
persons negatively consent to receiving institutional debt research
with the understanding that the research is not being provided for
investment purposes.
The proposed rule change would amend Rule 2242 to include
Supplementary Material .13 permitting a member to distribute
institutional debt research reports to specified persons for
informational purposes unrelated to investing in debt securities,
provided that the member does not distribute the reports prior to their
publication and the member has disclosed that: (1) The member may
provide to institutional investors debt research reports that are not
subject to all of the independence and disclosure standards applicable
to debt research reports prepared for retail investors; and (2) the
debt research reports would be provided only for informational purposes
and not for the purpose of making an investment decision related to
debt securities. The proposed Supplementary Material would also provide
that, if the person receiving institutional debt research does not
contact the member to request that such institutional debt research
reports not be provided, the member may reasonably conclude that the
person has consented to receiving debt institutional research reports
according to the terms of the Supplementary Material.
The proposed Supplementary Material sets out the circumstances
where institutional debt research may be distributed for informational
purposes unrelated to investing in debt securities: (1) Regulators for
regulatory purposes; (2) academics for academic purposes; (3) issuers
for the purpose of enhancing knowledge of their industry and
competitors and market and economic factors; and (4) media
organizations for news gathering purposes.
FINRA believes that permitting the provision of institutional debt
research to these persons for the specified informational purposes
serves the public interest without investor protection implications.
Distribution of Third-Party Debt Research Reports to Institutional
Investors
FINRA previously stated that the institutional exemption in Rule
2242(j) applies to the content and disclosure requirements for third-
party debt research reports.\11\ FINRA is proposing to amend Rule 2242
to clarify the requirements applicable to the distribution of third-
party debt research reports pursuant to the institutional debt research
exemption.
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\11\ See Securities Exchange Act Release No. 75472 (July 16,
2015), 80 FR 43528 (July 22, 2015) (Order Approving File No. SR-
FINRA-2014-048).
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The proposed rule change would amend Rule 2242 to clarify that a
member that distributes third-party debt research reports to
institutional investors pursuant to the exemption must establish,
maintain and enforce written policies and procedures reasonably
designed to comply with paragraphs (g)(1), (g)(2), (g)(4) and (g)(6) of
the Rule.\12\ The review requirements in paragraphs (g)(2) and (g)(4)
for third-party debt research reports and independent third-party debt
research reports, respectively, would apply to reports distributed to
retail investors or to institutional investors. Accordingly, third-
party debt research reports distributed pursuant to the exemption would
be subject to the same review requirements as third-party debt research
reports distributed to retail investors.\13\
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\12\ See proposed Rule 2242(j)(3).
\13\ FINRA notes that, consistent with FINRA Rule 2210(b)(3)
(Communications with the Public), third-party debt research reports
that are subject to review under Rule 2242(g)(2) (i.e., non-
independent third-party debt research reports) do not require a
registered principal to approve the communication prior to
distribution, provided that the firm establishes and implements
written procedures for the supervision and review of such
communications. See FINRA Rule 2210 Questions and Answers at http://www.finra.org/industry/finra-rule-2210-questions-and-answers.
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With respect to disclosures, the proposed rule change would clarify
that third-party debt research reports distributed pursuant to the
institutional exemption are not required to carry the specific
disclosures applicable to retail debt research set forth in paragraph
(g)(3) of the Rule. FINRA believes that it is consistent with the
exemption not to require specific disclosures when distributing third-
party research reports, but instead to require a ``health warning.''
Accordingly, the proposed rule change would amend Rule 2242 to clarify
that third-party debt research reports distributed to institutional
investors must disclose prominently: (A) ``This document is intended
for institutional investors and is not subject
[[Page 36631]]
to all of the independence and disclosure standards applicable to debt
research reports prepared for retail investors''; and (B) if
applicable, ``This report may not be independent of [Firm's]
proprietary interests. [Firm] trades the securities covered in this
report for its own account and on a discretionary basis on behalf of
certain clients. Such trading interests may be contrary to the
recommendation(s) offered in this report.'' \14\
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\14\ See proposed Rule 2242(j)(5).
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FINRA has not proposed requiring that third-party debt research
reports distributed to institutional investors disclose prominently the
disclosure required by paragraph (j)(4)(B) of the Rule.\15\ FINRA
intended the disclosure in paragraph (j)(4)(B) of the Rule to apply
only when the research report was produced by the member.\16\ FINRA
notes that the Rule does not require similar disclosure for third-party
research reports distributed to retail investors, nor is there such a
requirement in Rule 2241 with respect to third-party equity research
reports. FINRA believes that it is commonly understood that the views
in third-party research reports may differ from the views of the member
or from other third-party research reports. For these reasons, FINRA
believes that it is appropriate not to require third-party debt
research reports distributed to institutional investors to disclose
prominently the disclosure required by paragraph (j)(4)(B) of the Rule.
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\15\ Rule 2242(j)(4)(B) requires that debt research reports
provided to institutional investors pursuant to the exemption
disclose prominently on the first page, if applicable, that ``[t]he
views expressed in this report may differ from the views offered in
[Firm's] debt research reports prepared for retail investors.''
\16\ FINRA has previously stated that the disclosure is required
only if the member produces both retail and institutional debt
research reports that sometimes differ in their views. See
Securities Exchange Act Release No. 75472 (July 16, 2015), 80 FR
43528 (July 22, 2015) (Order Approving File No. SR-FINRA-2014-048).
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In addition, FINRA has not proposed to include paragraph (g)(5) of
the Rule in the list of applicable paragraphs of the Rule set forth in
proposed paragraph (j)(3). Paragraph (g)(5) of the Rule dictates the
circumstances in which paragraph (g)(3) of the Rule does not apply to
third-party research reports.\17\ Because FINRA is proposing not to
require the specific disclosures set forth in paragraph (g)(3) of the
Rule when distributing third-party research reports, but instead to
require a ``health warning,'' FINRA believes that paragraph (g)(5) of
the Rule should not apply to third-party debt research reports
distributed via the exemption to institutional investors.
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\17\ Rule 2242(g)(5) states that ``[a] member shall not be
considered to have distributed a third-party debt research report
for the purposes of paragraph (g)(3) where the research is an
independent third-party debt research report and made available by a
member (a) upon request; (b) through a member-maintained Web site;
or (c) to a customer in connection with a solicited order in which
the registered representative has informed the customer, during the
solicitation, of the availability of independent debt research on
the solicited debt security and the customer requests such
independent debt research.''
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Public Appearances by Debt Research Analysts
Rule 2242(d) requires disclosures from debt research analysts in
public appearances, including debt research analysts that only prepare
debt research reports pursuant to the institutional debt research
exemption. FINRA has previously stated that it would be inconsistent
with the rationale of the institutional exemption--i.e., that all
recipients of debt research have sufficient sophistication to
understand the conflicts of interest without the specific disclosures
and other protections afforded retail debt research--to allow debt
research analysts to make public appearances before an audience that
could include retail investors.\18\
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\18\ See FINRA Research Rules Frequently Asked Questions at
https://www.finra.org/industry/faq-research-rules-frequently-asked-questions-faq.
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However, based on the same rationale, FINRA believes that it is
consistent with the institutional exemption in paragraph (j) of the
Rule to exempt public appearances by debt research analysts from the
disclosure requirements in paragraph (d) of the Rule where attendance
is limited to institutional investors eligible to receive institutional
debt research reports. Accordingly, FINRA is proposing new
Supplementary Material .14 to clarify that the public appearance
disclosure requirements do not apply in those circumstances. The
proposed rule change would require that the member maintain records
sufficient to demonstrate that attendance at the public appearance was
limited to institutional investors eligible to receive institutional
debt research. The proposed rule change would require that the records
be maintained for at least three years from the date of the public
appearance.
The disclosure requirements of paragraph (d) of the Rule would
apply where attendance at the public appearance was not limited to
institutional investors eligible to receive institutional debt research
reports.
FINRA has filed the proposed rule change for immediate
effectiveness. The implementation date of the proposed rule change will
be July 16, 2016.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\19\ 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 is
consistent with the Act in that it clarifies the requirements of Rule
2242, which addresses conflicts of interest relating to the publication
and distribution of debt research reports. Specifically, FINRA believes
the proposed rule change is consistent with the Act in that it
clarifies: (1) The consent requirement for institutional debt research
reports distributed to non-U.S. investors by non-U.S. affiliates of
members; (2) the consent requirement for institutional debt research
reports distributed to specified persons for informational purposes
unrelated to investing in debt securities; (3) the scope of the
exemption for third-party debt research reports distributed via the
exemption to institutional investors and the applicable requirements;
and (4) the disclosure requirements for debt research analysts in
public appearances. FINRA further believes that the proposed rule
change would facilitate the flow of valued information to sophisticated
U.S. investors, while maintaining the investor protections intended by
the Rule for those investors.
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\19\ 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 clarifications in the
proposed rule change will result in reduced burdens for members to
comply with the requirements of Rule 2242. The proposed rule change
does not impose any material new obligations on members.
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.
[[Page 36632]]
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 \20\ and Rule 19b-
4(f)(6) thereunder.\21\
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\20\ 15 U.S.C. 78s(b)(3)(A).
\21\ 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-2016-017 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-2016-017. 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 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-2016-017, and should
be submitted on or before June 28, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-13318 Filed 6-6-16; 8:45 am]
BILLING CODE 8011-01-P