61178 Federal Register / Vol. 73, No. 200 / Wednesday, October 15, 2008 / Notices 

8 15 U.S.C. 78o–3(b)(6). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(3). 

11 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). 

4 17 CFR 240.19b–4(f)(1). 

breaker rule; however, FINRA’s Board 

has authority to act in certain 

emergency or extraordinary market 

conditions pursuant to Article VII, 

Section 3 of FINRA’s By-Laws. 

FINRA is proposing to adopt new 

FINRA Rule 6121, which would 

authorize FINRA to halt OTC trading of 

NMS stocks if other major U.S. 

securities markets initiate market-wide 

trading halts in response to their rules 

or extraordinary market conditions or if 

otherwise directed by the SEC. FINRA 

believes that such generalized authority 

is appropriate and necessary to provide 

adequate flexibility to deal with 

extraordinary market conditions. FINRA 

also believes the proposed rule change 

will further the goal of coordinated SRO 

action to address potentially 

destabilizing market volatility, 

consistent with the circuit breaker 

trading halt authority of the exchanges. 

FINRA has filed the proposed rule 

change for immediate effectiveness. The 

operative date of the proposed rule 

change is the date of filing. 

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 is consistent with 

the circuit breaker rules of other SROs 

and will further the goal of investor 

protection by providing a coordinated 

means to address potentially 

destabilizing market volatility. 

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 

The proposed rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) of the Act 9 and paragraph 

(f)(3) of Rule 19b–4 thereunder,10 in that 

the proposed rule change is concerned 

solely with the administration of the 

self-regulatory organization. At any time 

within 60 days of the filing of the 

proposed rule change, the Commission 

may summarily abrogate 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–FINRA–2008–048 on the 

subject line. 

Paper Comments 

• 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–2008–048. 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, 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 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– 

2008–048 and should be submitted on 

or before November 5, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–24376 Filed 10–14–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58754; File No. SR–FINRA– 

2008–049] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to UPC Advisory 

on Trading Halts in OTC Equity 

Securities 

October 8, 2008. 

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 

7, 2008, the 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. FINRA has 

designated the proposed rule change as 

constituting a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule under 

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

19b–4(f)(1) thereunder,4 which renders 

the proposal 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 Substance of 

the Proposed Rule Change 

FINRA is filing a Uniform Practice 

Code (UPC) Advisory that provides 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 73, No. 200 / Wednesday, October 15, 2008 / Notices 61179 

5On September 25, 2008, the SEC approved 

proposed rule change SR–FINRA–2008–021, in 

which FINRA proposed, among other things, to 

adopt the NASD Marketplace Rules (the NASD Rule 

4000 through 7000 Series) as the FINRA Rule 6000 

through 7000 Series in the Consolidated FINRA 

Rulebook. See Securities Exchange Act Release No. 

58643 (September 25, 2008), 73 FR 57174 (October 

1, 2008) (Order Approving SR–FINRA–2008–021; 

SR–FINRA–2008–022; SR–FINRA–2008–026; SR– 

FINRA–2008–028 and SR–FINRA–2008–029). As 

part of that proposed rule change, FINRA adopted 

the provisions of NASD Rule 6660 as new FINRA 

Rule 6460 relating to trading and quotation halts in 

OTC Equity Securities. 

6See, e.g., NYSE Rule 80B, NYSE Arca Equities 

Rule 7.12 and NASDAQ Exchange Rule 4121. 

7 15 U.S.C. 78o–3(b)(6). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(1). 

notice that FINRA will halt trading in 

OTC Equity Securities under FINRA 

Rule 6460(a)(3) (formerly NASD Rule 

6660(a)(3)) if there is a market-wide halt 

in trading in NMS stocks.5

The text of the proposed UPC 

Advisory is attached as Exhibit 1. There 

are no changes to the text of FINRA 

rules. 

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 

National securities exchanges 

generally have circuit breaker rules 

whereby the trading in all exchangelisted securities is halted based on a 

one-day decline of 10%, 20% and 30% 

of the Dow Jones Industrial Average 

(‘‘DJIA’’), with the percentage value 

based on the average closing value of 

the DJIA for the month prior to the 

beginning of the quarter, or have other 

general authority to halt trading in 

response to similar extraordinary market 

conditions.6 Unlike the exchanges, with 

respect to OTC Equity Securities (as that 

term is defined in the FINRA Rule 6400 

Series (formerly NASD Rule 6600 

Series)), FINRA does not have an 

express circuit breaker rule but relies on 

its authority under FINRA Rule 

6460(a)(3) (formerly NASD Rule 

6660(a)(3)), which provides that FINRA 

may halt quoting and trading in OTC 

equity securities if FINRA determines 

that an extraordinary event has occurred 

or is ongoing that has had a material 

effect on the market for the OTC Equity 

Security or has caused or has the 

potential to cause major disruption to 

the marketplace and/or significant 

uncertainty in the settlement and 

clearance process. FINRA considers a 

market-wide halt in the trading of 

exchange-listed securities to be an 

extraordinary event under Rule 

6460(a)(3) and has therefore published a 

UPC Advisory (attached as Exhibit 1) to 

give notice to members and other 

interested parties that FINRA will halt 

quoting and trading in OTC Equity 

Securities under these circumstances. 

FINRA has filed the proposed rule 

change for immediate effectiveness and 

it is operative on the date of filing. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,7 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 is consistent with 

the circuit breaker rules of other SROs 

and will further the goal of investor 

protection by providing a coordinated 

means to address potentially 

destabilizing market volatility. 

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 

The proposed rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) of the Act 8 and paragraph 

(f)(1) of Rule 19b–4 thereunder,9 in that 

the proposed rule change is a stated 

policy, practice or interpretation with 

respect to the meaning, administration 

or enforcement of an existing rule. At 

any time within 60 days of the filing of 

the proposed rule change, the 

Commission may summarily abrogate 

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–FINRA–2008–049 on the 

subject line. 

Paper Comments 

• 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–2008–049. 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, 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 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– 


jlentini on PROD1PC65 with NOTICES
61180 Federal Register / Vol. 73, No. 200 / Wednesday, October 15, 2008 / Notices 

10 17 CFR 200.30–3(a)(12). 

11On September 25, 2008, the SEC approved 

proposed rule change SR–FINRA–2008–021, in 

which FINRA proposed, among other things, to 

adopt the NASD Marketplace Rules (the NASD Rule 

4000 through 7000 Series) as the FINRA Rule 6000 

through 7000 Series in the Consolidated FINRA 

Rulebook. See Securities Exchange Act Release No. 

58643 (September 25, 2008), 73 FR 57174 (October 

1, 2008) (Order Approving SR–FINRA–2008–021; 

SR–FINRA–2008–022; SR–FINRA–2008–026; SR– 

FINRA–2008–028 and SR–FINRA–2008–029). As 

part of that proposed rule change, FINRA adopted 

the provisions of NASD Rule 6660 as new FINRA 

Rule 6460 relating to trading and quotation halts in 

OTC Equity Securities. 

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

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(1). 

4 17 CFR 240.19b–4. 

5The $150 Tether Monthly Service Fee will 

continue to be assessed. 

6Exchange members, however, may still trade 

foreign currency options. The Exchange currently 

has a separate fee schedule for U.S. dollar-settled 

foreign currency options. 

7There is no fee to access the Phlx CCH Guide 

on-line. 

2008–049 and should be submitted on 

or before November 5, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Acting Secretary. 

Exhibit 1 

Attn: Trading and Market Making/Legal 

and Compliance/Operations/Systems 

Uniform Practice Advisory (UPC # 

XXX–2008) October 6, 2008 

Exchange Circuit Breaker Declaration— 

FINRA OTC Equity Market Trigger 

FINRA Rule 6460 (NASD Rule 6660) 

Financial Industry Regulatory 

Authority, Inc. (FINRA) members are 

hereby provided notice that upon 

FINRA’s receipt of actual notification 

(via the NMS consolidated data plans or 

otherwise) that a market-wide trading 

halt has been declared for NMS stocks, 

due to a percentage-based circuit 

breaker having been triggered, FINRA 

will exercise its authority under FINRA 

Rule 6460(a)(3) (NASD Rule 6660(a)(3)) 

to halt quoting and trading activity in 

the market for OTC Equity securities (as 

defined in the FINRA Rule 6400 Series 

(NASD Rule 6600 Series)).11 Questions 

regarding this notice should be directed 

to: FINRA Operations, 866–776–0800. 

[FR Doc. E8–24377 Filed 10–14–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58755; File No. SR–Phlx– 

2008–71] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by the 

NASDAQ OMX PHLX, Inc. Relating to 

Deleting Unnecessary Fees 

October 8, 2008. 

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 

1, 2008, the NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) 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 the Exchange. 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 

The Exchange, pursuant to Section 

19(b)(1) of the Act 3 and Rule 19b–4 

thereunder,4 proposes to update its fee 

schedules by deleting fees that the 

Exchange has deemed no longer 

necessary. 

Specifically, the Exchange proposes to 

delete its Summary of Physical Delivery 

Currency Option Charges fee schedule. 

The Exchange also proposes to delete 

the following fees from Appendix A of 

its fee schedule: Foreign Currency User 

Fee; Transfer Fee for Foreign Currency 

Options (‘‘FCO’’) Participant; Direct 

Wire to the Floor; Wireless Telephone 

System; Tether Initial Connectivity 

Fee;5 Execution Services/ 

Communication Charge; Phlx CCH Wall 

Street (‘‘CCH’’) Guide; Option Report 

Service (New York and Chicago); 

Instinet, Reuters Equipment; and the 

Hyperfeed fee. 

While changes to the fee schedule 

pursuant to this proposal are effective 

upon filing, the Exchange has 

designated these changes to become 

effective on October 1, 2008. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.phlx.com/regulatory/ 

reg_rulefilings.aspx. 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to update the Exchange’s fee 

schedule to delete fees that the 

Exchange believes are no longer 

necessary. Specifically, the Exchange no 

longer provides a trading venue for 

physical delivery FCOs. Thus, the 

Summary of Physical Delivery Currency 

Option Charges no longer applies to 

products traded at the Exchange.6

Additionally, the Exchange no longer 

offers FCO participations. Therefore, the 

Foreign Currency User Fee and the 

Transfer Fee for FCO Participants are no 

longer necessary. 

For business purposes, the Exchange 

has determined not to assess the 

following fees: Direct Wire to the Floor; 

Wireless Telephone System; and 

Execution Service/Communication 

Charges. These fees, which relate 

generally to telephone access to the 

floor, are not deemed necessary at this 

time. Additionally, the Exchange 

believes the Tether Initial Connectivity 

Fee, which refers to establishing a 

hardwire connection to an existing 

communication network on the trading 

floor, is no longer necessary at this time. 

Currently, there is not a significant 

demand for this type of telephone 

access to the floor or for establishing a 

hardwire connection to an existing 

communication network on the trading 

floor. 

With respect to the Phlx CCH Guide, 

which includes Phlx By-Laws and rules, 

the Exchange will no longer supply 

members with a hard copy of the Phlx 

CCH Guide because the guide is now 

available on-line through the Phlx Web 

site.7 The fees relating to the Option 

Report Service (New York and Chicago), 

Instinet, Reuters Equipment, and 

Hyperfeed are not required because 

these services are no longer being 

offered by the Exchange. 

While changes to the fee schedule 

pursuant to this proposal are effective 

upon filing, the Exchange has 

designated these changes to become 

effective on October 1, 2008. 


jlentini on PROD1PC65 with NOTICES