71164 Federal Register / Vol. 75, No. 224 / Monday, November 22, 2010 / Notices 

4 15 U.S.C. 78f(b)(5). 

5 15 U.S.C. 78s(b)(3)(A). 

6 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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. The Commission 

has waived the five-day pre-filing requirement in 

this case. 

7See Securities Exchange Act Release No. 63104 

(October 14, 2010), 75 FR 64773 (October 20, 2010) 

(Approving Additional Expiration Months Pilot 

Program). 

8For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

9 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

in general, and Section 6(b)(5) of the 

Act,4 in particular, in that it is designed 

to prevent fraudulent and manipulative 

acts and practices, promote just and 

equitable principles of trade, foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and remove 

impediments to and perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. In particular, the 

Exchange believes listing additional 

near-term expiration months will offer 

investors more variety in trading 

options series that were previously not 

available. The Exchange believes this 

proposal will also generate additional 

volume in these options classes without 

significantly taxing system resources. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition 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 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not significantly affect the 

protection of investors or the public 

interest, does not impose any significant 

burden on competition, and, by its 

terms, does not 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 5 and Rule 19b– 

4(f)(6) thereunder.6

The Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposal is substantially 

similar to that of another exchange that 

has been approved by the Commission.7

Therefore, the Commission designates 

the proposal operative upon filing.8

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. 

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 rulecomments@sec.gov. Please include File 

Number SR–BX–2010–077 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–BX–2010–077. 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 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. 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–BX– 

2010–077 and should be submitted on 

or before December 13, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–29352 Filed 11–19–10; 8:45 am] 

BILLING CODE 8011–01–P 

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 CrossReferences 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. 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 224 / Monday, November 22, 2010 / Notices 71165 

4The 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). 

5See 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). 

6See Securities Exchange Act Release No. 59987 

(May 27, 2009), 74 FR 26902 (June 4, 2009) (Order 

Approving File No. SR–FINRA–2009–016). 

7See 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). 

8See Regulatory Notice 10–47 (October 2010) 

(regarding File No. SR–FINRA–2010–029). 

9 15 U.S.C. 78o–3(b)(6). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing to update crossreferences 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. 

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 DayTrading 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 (DayTrading 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. 

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

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. 

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

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 


jlentini on DSKJ8SOYB1PROD with NOTICES
71166 Federal Register / Vol. 75, No. 224 / Monday, November 22, 2010 / Notices 

12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See 15 U.S.C. 78c(a)(39). Pursuant to Exchange 

Act Section 3(a)(39), a person is subject to a 

‘‘statutory disqualification’’ with respect to 

membership or participation in, or association with 

a member of, a self-regulatory organization (‘‘SRO’’) 

if such person, among other things: Has been 

convicted of certain misdemeanor and all felony 

criminal convictions for a period of ten years from 

the date of the filing of an application for 

membership or participation in, or to become 

associated with a member of, such SRO; is subject 

to a temporary or permanent injunction (regardless 

of its age) issued by a court of competent 

jurisdiction involving a broad range of unlawful 

investment activities; has been expelled or 

suspended from membership or participation in an 

SRO; or is subject to an SEC order denying, 

suspending, or revoking broker-dealer registration. 

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 rulecomments@sec.gov. 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

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–29395 Filed 11–19–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63316; File No. SR–FINRA– 

2010–056] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Proposed Rule Change To Adopt 

FINRA Rule 1113 (Restriction 

Pertaining to New Member 

Applications) and To Amend the FINRA 

Rule 9520 Series (Eligibility 

Proceedings) 

November 15, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 notice is hereby 

given that on November 1, 2010, 

Financial Industry Regulatory 

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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing to adopt new 

FINRA Rule 1113 (Restriction Pertaining 

to New Member Applications) and to 

amend the FINRA Rule 9520 Series 

(Eligibility Proceedings) to restrict new 

member applicants’ and certain 

members’ association with disqualified 

persons. 

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 proposing a rule change to 

adopt new FINRA Rule 1113 

(Restriction Pertaining to New Member 

Applications) and to amend the FINRA 

Rule 9520 Series (Eligibility 

Proceedings) to restrict new member 

applicants’ and certain members’ 

association with disqualified persons. 

The details of the proposed rule change 

are described below. 

Background 

Article III, Section 3(b) of the FINRA 

By-Laws provides that no person shall 

be associated with a member, continue 

to be associated with a member, or 

transfer association to another member 

if such person is or becomes subject to 

disqualification; and that no firm shall 

be admitted to membership, and no 

member shall be continued in 

membership, if any person associated 

with it is subject to a disqualification. 

Pursuant to Article III, Section 4 of the 

FINRA By-Laws, a person is subject to 

a ‘‘disqualification’’ with respect to 

membership, or association with a 

member, if such person is subject to any 

‘‘statutory disqualification’’ as such term 

is defined in Exchange Act Section 

3(a)(39).3


jlentini on DSKJ8SOYB1PROD with NOTICES