[Federal Register Volume 89, Number 203 (Monday, October 21, 2024)]
[Notices]
[Pages 84231-84232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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 https://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
    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 (https://www.sec.gov/rules/sro.shtml); 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 (https://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. 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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