Notice2024-24202
Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Technical and Other Non-Substantive Changes Within FINRA Rules
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 21, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 203 (Monday, October 21, 2024)</title>
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[Federal Register Volume 89, Number 203 (Monday, October 21, 2024)]
[Notices]
[Pages 84231-84232]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-24202]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101336; File No. SR-FINRA-2024-016]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Make Technical and Other Non-Substantive
Changes Within FINRA Rules
October 15, 2024.
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 4, 2024, the 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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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to make technical and other non-substantive
changes within FINRA rules.
The text of the proposed rule change is available on FINRA's
website at <a href="https://www.finra.org">https://www.finra.org</a>, 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
On March 6, 2024, the SEC adopted amendments to Rule 600 of
Regulation NMS to add new defined terms to and modify certain existing
defined terms in Rule 600 that are used in Rule 605 of Regulation
NMS.\4\ The amendments to Rule 600 of Regulation NMS became effective
on June 14, 2024.\5\ As a result of the SEC amendments to Regulation
NMS, certain cross references in FINRA rules have become outdated and
inaccurate. In order to ensure clarity and avoid future inaccuracy in
the event of further amendment to Regulation NMS, the proposed rule
change would delete numeric cross references in the following FINRA
rules: 5320 (Prohibition Against Trading Ahead of Customer Orders),
6110 (Trading Otherwise than on an Exchange), 6120 (Trading Halts),
6121 (Trading Halts Due to Extraordinary Market Volatility), 6140
(Other Trading Practices), 6182 (Trade Reporting of Short Sales), 6183
(Exemption from Trade Reporting Obligation for Certain Alternative
Trading Systems), 6310A (General), 6320A (Definitions), 6310B
(General), 6320B (Definitions), 6420 (Definitions), 6810 (Definitions),
7110 (Definitions) and 7230A (Trade Report Input).\6\ The proposed rule
change would also update FINRA Rule 9217 (Violations Appropriate for
Disposition Under Plan Pursuant to SEA Rule 19d-1(c)(2)) to remove
specific paragraph references and instead refer generally to Rule 605
of Regulation NMS.\7\ In addition, the proposed rule change would
delete references to FINRA Rules 7440 and 7450 in Rule 9217 to reflect
the elimination of the Order Audit Trail System rules from the FINRA
Manual.\8\
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\4\ See Securities Exchange Act Release No. 99679 (March 6,
2024), 89 FR 26428 (April 15, 2024) (SEC File No. S7-29-22,
Disclosure of Order Execution Information).
\5\ See supra note 4.
\6\ The proposed rule change would also make a technical
correction to Rule 6810 to delete the reference to the definition of
``Option'' under Rule 600(b) of Regulation NMS, as this term is not
defined in Rule 600(b).
\7\ See supra note 4.
\8\ See Securities Exchange Act Release No. 90535 (November 30,
2020), 85 FR 78395 (December 4, 2020) (Notice of Filing and Order
Granting Accelerated Approval of File No. SR-FINRA-2020-024) and
Securities Exchange Act Release No. 92239 (June 23, 2021), 86 FR
34293 (June 29, 2021) (Notice of Filing and Immediate Effectiveness
of File No. SR-FINRA-2021-017).
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Finally, the proposed rule change would make a technical change to
Article IV, Section 3 (Membership--Executive Representative) of the
FINRA By-Laws to replace reference to NASD Regulation website with
FINRA website to reflect the current name of FINRA.\9\
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\9\ See Securities Exchange Act Release No. 56146 (July 26,
2007), 72 FR 42190 (August 1, 2007) (Notice of Filing and Order
Granting Accelerated Approval of File No. SR-NASD-2007-053). The
proposed rule change would also make a similar technical change to
Rule 9217 to delete an outdated reference to NASD rules.
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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 Exchange 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
FINRA has filed the proposed rule change pursuant to Section
19(b)(3)(A)
[[Page 84232]]
of the Act \11\ and Rule 19b-4(f)(6) \12\ thereunder. 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 \13\ and Rule 19b-4(f)(6) \14\ thereunder.
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\11\ 15 U.S.C. 78(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires FINRA to give the Commission written notice of its intent
to file the proposed rule change, along with a brief description and
text of the proposed rule change, at least five business days prior
to the date of filing of the proposed rule change, or such shorter
time as designated by the Commission. FINRA has satisfied this
requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\16\ the Commission
may designate a shorter time if such action is consistent with
protection of investors and the public interest. FINRA has asked the
Commission to waive the 30-day operative delay so that the proposed
rule change may become operative immediately upon filing. The
Commission believes that waving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow FINRA to correct without delay outdated
references in its rule text and does not introduce any novel regulatory
issues. Accordingly, the Commission designates the proposed rule change
to be operative upon filing.\17\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 will institute proceedings to
determine whether the proposed rule change 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
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#b3c1c6dfd69ed0dcdeded6ddc7c0f3c0d6d09dd4dcc5"><span class="__cf_email__" data-cfemail="fd8f889198d09e9290909893898ebd8e989ed39a928b">[email protected]</span></a>. Please include
file number SR-FINRA-2024-016 on the subject line.
Paper Comments
<bullet> 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-2024-016. 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 (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). 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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-FINRA-2024-016 and should be
submitted on or before November 12, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12) and (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-24202 Filed 10-18-24; 8:45 am]
BILLING CODE 8011-01-P
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