Federal Register / Vol. 80, No. 39 / Friday, February 27, 2015 / Notices 10733 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

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). 

5The proposed rule change does not affect any 

current filing or submission requirements issued 

pursuant to NASD Rule 3170, which remain 

effective, subject to any future changes FINRA may 

make pursuant to proposed FINRA Rule 4517 once 

the rule becomes effective. See, e.g., Notice to 

Members 06–61 (November 2006) (announcing SEC 

approval of NASD Rule 3170 and specifying various 

financial notices to which NASD Rule 3170 would 

apply), Regulatory Notice 08–67 (November 2008) 

(requiring electronic submission of, among other 

things, qualification examination waivers pursuant 

to NASD Rule 3170), and Regulatory Notice 11–46 

(October 2011) (requiring electronic submission of 

annual audit reports pursuant to NASD Rule 3170). 

See also Regulatory Notice 08–11 (March 2008) 

(addressing frequently asked questions on NASD 

Rule 3170). 

For further information, please 

contact the Office of the Secretary at 

(202) 551–5400. 

Dated: February 25, 2015. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–04264 Filed 2–25–15; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74349; File No. SR–FINRA– 

2015–004] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Adopt FINRA Rule 

4517 (Member Filing and Contact 

Information Requirements) in the 

Consolidated FINRA Rulebook 

February 23, 2015. 

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 February 

12, 2015, 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, of which Items I and II 

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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing to adopt NASD 

Rules 3170 (Mandatory Electronic Filing 

Requirements), 1150 (Executive 

Representative), and 1160 (Contact 

Information Requirements) as FINRA 

Rule 4517 (Member Filing and Contact 

Information Requirements) without any 

substantive changes. FINRA also 

proposes to update references and crossreferences within other FINRA rules 

accordingly. 

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 

As part of the process of developing 

a new consolidated rulebook 

(‘‘Consolidated FINRA Rulebook’’),4

FINRA is proposing to transfer NASD 

Rules 3170 (Mandatory Electronic Filing 

Requirements), 1150 (Executive 

Representative), and NASD Rule 1160 

(Contact Information Requirements) into 

the Consolidated FINRA Rulebook as 

FINRA Rule 4517 (Member Filing and 

Contact Information Requirements) 

without any substantive changes. 

Proposed FINRA Rule 4517(a): 

Mandatory Electronic Filing 

Requirements 

Proposed FINRA Rule 4517(a) would 

transfer without substantive change 

NASD Rule 3170 (Mandatory Electronic 

Filing Requirements) which requires 

each member to file with or otherwise 

submit to FINRA, in such electronic 

format as FINRA may require, all 

regulatory notices or other documents 

required to be filed or otherwise 

submitted to FINRA, as specified by 

FINRA. FINRA will advise firms via the 

Regulatory Notice process or other 

similar communication, as appropriate, 

as to each regulatory notice or document 

that members will be required to file 

with or submit in electronic format to 

FINRA, the compliance date for the 

electronic filing or submission, and the 

requisite manner and format.5

Proposed FINRA Rule 4517(b): 

Executive Representative 

Proposed FINRA Rule 4517(b) would 

transfer without substantive change 

NASD Rule 1150, the provision 

requiring that each member must 

identify, review and, if necessary, 

update its executive representative 

designation and contact information as 

required by Article IV, Section 3 of the 

NASD By-Laws in the manner 

prescribed by NASD Rule 1160. The 

proposed rule would replace the 

references to the legacy NASD By-Laws 

and rule with FINRA By-Laws and rule. 

Proposed FINRA Rule 4517(c): Review 

and Update of Contact Information 

Proposed FINRA Rule 4517(c) would 

transfer without substantive changes the 

requirements of NASD Rule 1160 

(Contact Information Requirements). 

The only changes to the proposed rule 

text are minor editorial changes to 

reflect current nomenclature, and to 

assist and enhance readability. NASD 

Rule 1160 requires members to report 

and update contact information to 

FINRA via the ‘‘NASD Contact System 

or such other means as NASD may 

specify,’’ and to promptly comply with 

any FINRA request for the required 

contact information. Currently, NASD 

Rule 1160 supports members’ 

compliance with NASD Rule 1150 

(Executive Representative) and FINRA 

Rules 1250 (Continuing Education 

Requirements), 3310.02 (Review of AntiMoney Laundering Compliance Person 

Information), and 4370 (Business 

Continuity Plans and Emergency 

Contact Information), which all require 

members to provide FINRA with 

designated contact person information. 

Proposed FINRA Rule 4517(c) would 

require each member to report and 

update to FINRA all contact information 

applicable to the member that FINRA 

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10734 Federal Register / Vol. 80, No. 39 / Friday, February 27, 2015 / Notices 

6See FINRA News Release, Clicking on 

Compliance: FINRA Launches Firm Gateway (Oct. 

11, 2007). 

7For example, a member must identify, among 

others, its Chief Executive Officer and Chief 

Compliance Officer on Form BD, and promptly 

update such information by submitting an 

amendment whenever the information becomes 

inaccurate or incomplete for any reason. See also 

Article IV, Section 1(c) of the FINRA By-Laws, 

requiring each member to ensure that its 

membership application is kept current at all times 

by supplementary amendments, and to file such 

amendment no later than 30 days after learning of 

the facts or circumstances giving rise to the 

amendment. 

8 15 U.S.C. 78o–3(b)(6). 

9FINRA previously solicited comment on a 

proposal to adopt FINRA Rule 4540 (Member 

Information and Data Reporting and Filing 

Requirements) which, among other things, would 

have incorporated the substance of NASD Rules 

1160 and 3170, and deleted NASD Rule 1150. See 

Regulatory Notice 09–02 (January 2009). Given that 

FINRA would like to proceed with the rulebook 

consolidation process expeditiously to provide 

greater clarity and regulatory efficiency to FINRA 

members, FINRA is proposing in this rule change 

to adopt NASD Rules 1150, 1160 and 3170 without 

substantive changes, and will consider at a later 

date whether to propose substantive changes to 

these rules. FINRA has determined to transfer 

NASD Rule 1150 into the Consolidated FINRA 

Rulebook rather than delete its content in the 

interest of providing clarity to member firms of 

their obligation under the FINRA By-Laws to 

appoint an Executive Representative. One 

commenter to Regulatory Notice 09–02 suggested 

that FINRA extend from 17 business days to 30 days 

the period in which a member must annually 

review and update its contact information. See 

Letter from Dale E. Brown, Financial Services 

Institute, to Marcia E. Asquith, FINRA, dated 

February 20, 2009. The proposed rule change, 

however, would retain NASD Rule 1160’s 

requirement that a member update its contact 

information promptly, but no later than 30 days 

following any change in the information, and 

annually verify the information within 17 business 

days after the end of the calendar year. As FINRA 

stated when it proposed NASD Rule 1160, the 17- 

business day window is consistent with the 

requirement that a member’s FOCUS report be 

submitted within 17 business days after the end of 

each quarter. See Securities Exchange Act Release 

No. 55810 (May 24, 2007), 72 FR 30404 (May 31, 

2007) (Notice of Filing of File No. SR–NASD–2007– 

034). FINRA reminds its members to annually 

review and update, if necessary, their designated 

contact information through several ways such as 

announcements and alerts in the Firm Gateway, and 

electronic communications to the firm’s Chief 

Compliance Officer(s) and Executive 

Representative. 

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

11 17 CFR 240.19b–4(f)(6). 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(6)(iii). 

requires via the Firm Gateway® or such 

other means as FINRA may specify. 

Member firms already use the Firm 

Gateway, a web-based tool that provides 

consolidated access to FINRA regulatory 

and filing applications, to access the 

FINRA Contact System. Proposed 

FINRA Rule 4517(c) would reflect the 

current nomenclature of a FINRA 

application that has been in use by its 

members since 2007.6

In addition, proposed FINRA Rule 

4517(c)(1) would require a member to 

update its contact information 

promptly, but in any event not later 

than 30 days following any change in 

such information, and review, and if 

necessary, update the required contact 

information within 17 business days 

after the end of each calendar year. This 

proposed provision replaces the nearly 

identical provision in NASD Rule 

1160(b) but with a minor editorial 

change to delete the phrase ‘‘via the 

NASD Contact System or such other 

means as NASD may specify’’ from the 

proposed rule text, because the phrase 

already appears in proposed paragraph 

(c). Furthermore, proposed FINRA Rule 

4517(c)(2) would require that each firm 

comply promptly with any FINRA 

request for the required contact 

information, but in any event not later 

than 15 days following the request, or 

such longer period that may be agreed 

to by FINRA staff. This proposed 

provision replaces the nearly identical 

provision in NASD Rule 1160(c) but 

with the minor editorial change from 

NASD Rule 1160(c)’s ‘‘such 

information’’ to ‘‘the required contact 

information’’ to enhance the readability 

of the proposed rule. As with NASD 

Rule 1160, the proposed rule change 

would not relieve firms from any 

separate requirements to update such 

information.7

The proposed rule change would also 

replace all references to NASD Rules 

1150 and 1160 in FINRA Rules 1250 

(Continuing Education Requirements), 

3310.02 (Review of Anti-Money 

Laundering Compliance Person 

Information), 4370 (Business Continuity 

Plans and Emergency Contact 

Information), and 9217 (Violations 

Appropriate for Disposition Under Plan 

Pursuant to SEA Rule 19d–1(c)(2)) with 

references to proposed FINRA Rule 

4517 accordingly. 

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 that 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 Act,8 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, which does not 

substantively change the rules, is 

consistent with the Act because it is 

being undertaken pursuant to the 

rulebook consolidation process, which 

is designed to provide additional clarity 

and regulatory efficiency to FINRA 

members by consolidating the 

applicable NASD, Incorporated NYSE 

and FINRA rules into one rule set. 

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. As noted 

above, this proposal will not 

substantively change either the text or 

application of the rules. FINRA would 

like to proceed with the rulebook 

consolidation process expeditiously, 

which it believes will provide 

additional clarity and regulatory 

efficiency to 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 with respect to 

this proposal to transfer NASD Rules 

1150, 1160 and 3170 into the 

Consolidated FINRA Rulebook without 

any substantive changes.9

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

A proposed rule change filed under 

Section 19(b)(3)(A) of the Act 12

normally does not become operative 

prior to 30 days after the date of the 

filing. However, pursuant to Rule 19b– 

4(f)(6)(iii),13 the Commission may 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. FINRA 

has asked the Commission to waive the 

30-day operative delay so that the 

proposal may become operative upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest. 

Because FINRA is proposing to transfer 

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Federal Register / Vol. 80, No. 39 / Friday, February 27, 2015 / Notices 10735 

14For purposes 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). 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5The term ‘‘Member’’ is defined as ‘‘any 

registered broker or dealer that has been admitted 

to membership in the Exchange.’’ See Exchange 

Rule 1.5(n). 

NASD Rule 3170 (Mandatory Electronic 

Filing Requirements), NASD Rule 1150 

(Executive Representative), and NASD 

Rule 1160 (Contact Information 

Requirements) into the Consolidated 

FINRA rulebook as FINRA Rule 4517 

(Member Filing and Contact Information 

Requirements) without any substantive 

changes, to update cross-references 

accordingly and reflect current 

nomenclature, and to thereby clarify 

FINRA’s rules, and because the rulebook 

consolidation process is designed to 

provide additional clarity and 

regulatory efficiency to members, the 

Commission believes that a waiver of 

the requirement is appropriate so that 

the rule change may become operative 

immediately. Therefore, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposal effective upon filing.14

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 rule-comments@

sec.gov. Please include File Number SR– 

FINRA–2015–004 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–2015–004. 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– 

2015–004, and should be submitted on 

or before March 20, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–04084 Filed 2–26–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74352; File No. SR–BATS– 

2015–13] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Related to Fees for Use 

of BATS Exchange, Inc. 

February 23, 2015. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on February 

10, 2015, BATS Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BATS’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Exchange has designated the proposed 

rule change as one establishing or 

changing a member due, fee, or other 

charge imposed by the Exchange under 

Section 19(b)(3)(A)(ii) of the Act 3 and 

Rule 19b–4(f)(2) thereunder,4 which 

renders the proposed rule change 

effective upon filing with the 

Commission. 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 the Substance 

of the Proposed Rule Change 

The Exchange filed a proposal to 

amend the fee schedule applicable to 

Members 5 and non-members of the 

Exchange pursuant to BATS Rules 

15.1(a) and (c). Changes to the fee 

schedule pursuant to this proposal are 

effective upon filing. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at www.batstrading.com, at the 

principal office of the Exchange, 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, the 

Exchange 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. The 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to modify its 

fee schedule in order to: (1) remove the 

reference to ROLF from fee code BO; (2) 

make certain changes to Cross-Asset 

Step-Up Tier 3; and (3) make certain 

non-substantive clean-up changes to the 

fee schedule. 

Deleting Reference to ROLF 

The Exchange proposes to amend its 

fee schedule to remove the reference to 

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