Federal Register / Vol. 74, No. 70 / Tuesday, April 14, 2009 / Notices 17267 

9See Securities Exchange Act Release No. 59592 

(April 2, 2009) (notice of filing and immediate 

effectiveness of File No. SR–ISE–2009–17) (the 

‘‘Member Fee Filing’’). The Member Fee Filing 

reduced the rebate for these orders from $.0035 per 

share to $.003 per share. 

10See note 9, supra. 

11 15 U.S.C. 78s(b)(2). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 59586 

(March 17, 2009), 74 FR 12166 (March 23, 2009) 

(SR–FINRA–2008–045) (‘‘SD Approval Order’’). 

4See SR–FINRA–2008–045, Exhibit 2 (filed 

September 8, 2008). Amendment No. 1 to SR– 

FINRA–2008–045 replaced and superseded the 

original rule filing except with regard to Exhibit 2. 

5See Securities Exchange Act Release No. 59208 

(January 6, 2009), 74 FR 1738 (January 13, 2009) 

(SR–FINRA–2008–045) (notice). 

ISE recently amended DECN’s fee 

schedule to lower the rebate that DECN 

subscribers who also are ISE members 

receive for orders in Tape B securities 

priced at or above $1 that add liquidity 

on EDGX.9 DECN receives this rebate for 

transactions it executes on EDGX in its 

capacity as an introducing broker for its 

non-ISE member subscribers. 

The current proposal, which will 

apply retroactively to April 1, 2009, will 

allow DECN to pass through the lowered 

rebate to the non-ISE member 

subscribers for which it acts as an 

introducing broker. The Commission 

finds that the proposal is consistent 

with the Act because it will provide a 

rebate amount for non-ISE member 

subscribers that is equivalent to the 

rebate amount established for ISE 

member subscribers in the Member Fee 

Filing.10

ISE has requested that the 

Commission find good cause for 

approving the proposal prior to the 

thirtieth day after the date of 

publication of notice of filing thereof in 

the Federal Register. As discussed 

above, the proposal will allow DECN to 

pass through to non-ISE member 

subscribers the lowered rebate amount 

established for ISE member subscribers 

in the Member Fee Filing, resulting in 

equivalent rebate amounts for ISE 

member and non-member subscribers. 

In addition, because the proposal will 

apply the reduced rebate retroactively to 

April 1, 2009, the reduced rebates for 

ISE member and non-member 

subscribers will have the same effective 

date, thereby promoting consistency in 

DECN’s fee schedule. Accordingly, the 

Commission finds good cause, pursuant 

to Section 19(b)(2) of the Act, for 

approving the proposed rule change, as 

amended, prior to the thirtieth day after 

the date of publication of notice of filing 

thereof in the Federal Register. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,11 that the 

proposed rule change (File No. SR–ISE– 

2009–18), as amended, is approved on 

an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–8425 Filed 4–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59722; File No. SR–FINRA– 

2009–022] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Order Granting Accelerated Approval 

of Proposed Rule Change Relating to 

FINRA’s Regulatory Notice on the 

FINRA Rule 9520 Series (Eligibility 

Proceedings) 

April 7, 2009. 

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 March 31, 

2009, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) (f/k/a 

National Association of Securities 

Dealers, Inc. (‘‘NASD’’)) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II below, 

which Items have been substantially 

prepared by FINRA. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons and to approve 

the proposal on an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA proposes to make technical 

amendments to the proposed Regulatory 

Notice entitled ‘‘Eligibility Proceedings: 

Amendments to FINRA Rule 9520 

Series to Establish Procedures 

Applicable to Firms and Associated 

Persons Subject to Certain Statutory 

Disqualifications’’ (the ‘‘SD Regulatory 

Notice’’) that details impending changes 

to the FINRA Rule 9520 Series. The 

Commission recently approved 

amendments to the FINRA Rule 9520 

Series, which governs the eligibility 

procedures for persons subject to certain 

disqualifications, to comport with the 

amended definition of disqualification 

in the FINRA By-Laws.3 The 

amendments to the FINRA Rule 9520 

Series will become effective on June 15, 

2009. 

The proposed rule change makes 

technical amendments to the original 

SD Regulatory Notice filed on 

September 8, 2008, in connection with 

the amendments to the FINRA Rule 

9520 Series. 

The text of the proposed rule change 

is available at FINRA, the Commission’s 

Public Reference Room, and http:// 

www.finra.org. 

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 III 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 

In September 2008, FINRA filed a 

proposed rule change to amend the 

FINRA Rule 9520 Series, which governs 

eligibility proceedings under which 

FINRA may allow a person subject to a 

statutory disqualification to enter or 

remain in the securities industry, to 

comport with the amended definition of 

disqualification in the FINRA By-Laws. 

FINRA filed the original SD Regulatory 

Notice as part of its original filing on 

September 8, 2008, and amended its 

filing on December 11, 2008.4 The SD 

Regulatory Notice describes in detail the 

circumstances under which persons 

must obtain FINRA approval to enter or 

remain in the securities industry, 

notwithstanding the existence of 

additional categories of statutory 

disqualification. The proposed rule 

change was published for comment in 

the Federal Register on January 13, 

2009.5 The Commission received no 

comments on the proposed rule change. 

On March 17, 2009, the Commission 

17268 Federal Register / Vol. 74, No. 70 / Tuesday, April 14, 2009 / Notices 

6See supra note 3. 

7See Exhibit 2. For example, the proposed 

amendments to the SD Regulatory Notice note that, 

with respect to the Department of Member 

Regulation review of applications, disqualified 

persons, in addition to disqualified members or 

sponsoring members, as the case may be, may be 

providing consent to supervisory plans. In addition, 

they replace the term ‘‘sponsoring member firm’’ 

with ‘‘sponsoring member.’’ Further, the proposed 

amendments replace the phrase ‘‘[i]f the parties 

cannot agree on a supervisory plan’’ with ‘‘[i]f a 

supervisory plan is rejected.’’ The proposed 

amendments also replace references to ‘‘Securities 

Exchange Act’’ with ‘‘Exchange Act’’ for 

consistency. Finally, the proposed amendments add 

a footnote that references the SD Approval Order 

and the current filing. 

8See Exhibit 2, at note 7. 

9 15 U.S.C. 78o–3(b)(6). 

10 In approving this proposed rule change, the 

Commission has considered its impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

11 15 U.S.C. 78o–3(b)(6). 

12 15 U.S.C. 78s(b)(2). 

13 Id. 

14 17 CFR 200.30–3(a)(12). 

approved the proposed rule change and 

issued the SD Approval Order.6

The current proposed rule change 

makes several technical amendments to 

the SD Regulatory Notice to, among 

other things, comport with the 

amendments to the FINRA Rule 9520 

Series and the Commission’s SD 

Approval Order.7 In addition, the 

proposed rule change updates the status 

of FINRA’s rule filing regarding revising 

the questions on Forms U4 and U5, 

which is referenced in a footnote of the 

SD Regulatory Notice.8

The effective date of the technical 

amendments to the SD Regulatory 

Notice pursuant to the proposed rule 

change will be the date of Commission 

approval of the proposed rule change. 

The effective date of the related 

amendments to the FINRA Rule 9520 

Series, as detailed in the SD Regulatory 

Notice, will be June 15, 2009. 

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’s rules 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 provisions 

of the Act noted above in that the 

proposed technical amendments to the 

SD Regulatory Notice will conform the 

text to the proposed amendments to the 

FINRA Rule 9520 Series and the 

Commission’s recent SD Approval 

Order. 

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. 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–2009–022 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–2009–022. 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 inspection and copying 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–2009–022 and 

should be submitted on or before May 

5, 2009. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of Section 15 of the Act 

and the rules and regulations 

thereunder applicable to a national 

securities association.10 In particular, 

the Commission finds that the proposed 

rule change is consistent with Section 

15A(b)(6) of the Act 11 because the 

proposed technical amendments will 

conform the SD Regulatory Notice to the 

FINRA Rule 9520 Series and the 

Commission’s recent SD Approval 

Order. 

FINRA has requested that the 

Commission find good cause for 

approving the proposed rule change 

prior to the thirtieth day after 

publication of the notice thereof in the 

Federal Register. Granting accelerated 

approval will allow FINRA to inform its 

members of the amendments to the 

FINRA Rule 9520 Series that will 

become effective on June 15, 2009. 

Accordingly, the Commission finds 

good cause, pursuant to Section 19(b)(2) 

of the Act,12 for approving the proposed 

rule change prior to the thirtieth day 

after publication of the notice thereof in 

the Federal Register. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,13 that the 

proposed rule change (SR–FINRA– 

2009–022) be, and hereby is, approved 

on an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–8423 Filed 4–13–09; 8:45 am] 

BILLING CODE 8010–01–P