55842 Federal Register / Vol. 75, No. 177 / Tuesday, September 14, 2010 / Notices 

17See NYSE Arca Equities Rule 8.600(d)(1)(B). 

18See NYSE Arca Equities Rule 8.600(d)(2)(D). 

19 Id. Trading in the Shares may also be halted 

because of market conditions or for reasons that, in 

the view of the Exchange, make trading in the 

Shares inadvisable. These may include: (1) The 

extent to which trading is not occurring in the 

securities comprising the Disclosed Portfolio and/ 

or the financial instruments of the Fund; or (2) 

whether other unusual conditions or circumstances 

detrimental to the maintenance of a fair and orderly 

market are present. 

20See NYSE Arca Equities Rule 8.600(d)(2)(B)(ii). 

21 15 U.S.C. 78s(b)(2). 

22 17 CFR 200.30–3(a)(12). 

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

2Securities Exchange Act Release No. 62454 (July 

6, 2010), 75 FR 39715 (July 12, 2010). 

3The 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 FINRA’s 

Information Notice, March 12, 2008 (Rulebook 

Consolidation Process). 

available to all market participants at 

the same time.17 Additionally, if it 

becomes aware that the NAV or the 

Disclosed Portfolio is not disseminated 

daily to all market participants at the 

same time, the Exchange will halt 

trading in the Shares until such 

information is available to all market 

participants.18 Further, if the PIV is not 

being disseminated as required, the 

Exchange may halt trading during the 

day in which the disruption occurs; if 

the interruption persists past the trading 

day in which it occurred, the Exchange 

will halt trading no later than the 

beginning of the trading day following 

the interruption.19 The Exchange 

represents that the Adviser is affiliated 

with a broker-dealer, Allianz Global 

Investors Distributors LLC, and has 

implemented a ‘‘fire wall’’ between it 

and its broker-dealer affiliate with 

respect to access to information 

concerning the composition and/or 

changes to the Fund’s portfolio. Further, 

the Commission notes that the 

Reporting Authority that provides the 

Disclosed Portfolio must implement and 

maintain, or be subject to, procedures 

designed to prevent the use and 

dissemination of material non-public 

information regarding the actual 

components of the portfolio.20

The Exchange has represented that 

the Shares are equity securities subject 

to the Exchange’s rules governing the 

trading of equity securities. In support 

of this proposal, the Exchange has made 

representations, including: 

(1) The Shares will be subject to the 

initial and continued listing criteria 

under NYSE Arca Equities Rule 

8.600(d). 

(2) The Exchange’s surveillance 

procedures are adequate to properly 

monitor Exchange trading of the Shares 

in all trading sessions and to deter and 

detect violations of Exchange rules and 

applicable federal securities laws. 

(3) Prior to the commencement of 

trading, the Exchange will inform its 

ETP Holders in an Information Bulletin 

of the special characteristics and risks 

associated with trading the Shares. 

Specifically, the Information Bulletin 

will discuss the following: (a) The 

procedures for purchases and 

redemptions of Shares in Creation Units 

and that Shares are not individually 

redeemable; (b) NYSE Arca Equities 

Rule 9.2(a), which imposes a duty of 

due diligence on its ETP Holders to 

learn the essential facts relating to every 

customer prior to trading the Shares; (c) 

the risks involved in trading the Shares 

during the Opening and Late Trading 

Sessions when an updated PIV will not 

be calculated or publicly disseminated; 

(d) how information regarding the PIV is 

disseminated; (e) the requirement that 

ETP Holders deliver a prospectus to 

investors purchasing newly issued 

Shares prior to or concurrently with the 

confirmation of a transaction; and (f) 

trading information. 

(4) The Fund will be in compliance 

with Rule 10A–3 under the Act. 

(5) The Fund will not invest in nonU.S. equity securities. 

This approval order is based on the 

Exchange’s representations. 

For the foregoing reasons, the 

Commission finds that the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to a national 

securities exchange. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,21 that the 

proposed rule change (SR–NYSEArca– 

2010–68), be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–22835 Filed 9–13–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62842; File No. SR– 

FINRA–2010–030] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority; Order Granting Approval of 

a Proposed Rule Change To Adopt 

FINRA Rule 11000 Series (Uniform 

Practice Code) in the Consolidated 

FINRA Rulebook 

September 3, 2010. 

I. Introduction 

On June 14, 2010, Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) proposed 

rule change SR–FINRA–2010–030 

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

Securities Exchange Act of 1934 

(‘‘Act’’).1 Notice of the proposal was 

published in the Federal Register on 

July 12, 2010.2 The Commission 

received no comment letters. For the 

reasons discussed below, the 

Commission is granting approval of the 

proposed rule change. 

II. Description 

As part of the process of developing 

a new consolidated rulebook 

(‘‘Consolidated FINRA Rulebook’’), 

FINRA will adopt the NASD Rule 11000 

Series (Uniform Practice Code [‘‘UPC’’]) 

into the Consolidated FINRA Rulebook, 

subject to certain amendments 

described below.3 The UPC was 

originally adopted on January 20, 1941, 

and became effective on August 1, 1941. 

The UPC prescribes the manner in 

which over-the-counter securities 

transactions other than those cleared 

through a registered clearing agency are 

compared, cleared, and settled between 

member firms. 

As a general matter, the UPC does not 

apply to: 

a. Transactions in securities between 

members that are compared, cleared, or 

settled through the facilities of a 

registered clearing agency; 

b. Transactions in securities exempted 

under Section 3(a)(12) of the Act or in 

municipal securities as defined in 

Section 3(a)(29) of the Act; 

c. Transactions in redeemable 

securities issued by companies 

registered under the Investment 

Company Act of 1940; or 

d. Transactions in Direct Participation 

Program securities. 

The UPC is designed to make 

uniform, where practicable, custom, 

practice, usage, and trading technique in 

the investment banking and securities 

business, particularly with respect to 

operational and settlement issues. This 

can include such matters as trade terms, 

deliveries, payments, dividends, rights, 

interest, stamp taxes, claims, 


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4NASD Rules 11890 (Clearly Erroneous 

Transactions), IM–11890–1 (Refusal to Abide by 

Rulings), and IM–11890–2 (Review by Panels of the 

UPC Committee) were adopted, with significant 

changes, into the Consolidated FINRA Rulebook as 

the FINRA Rule 11890 Series (Clearly Erroneous 

Transactions) pursuant to a separate rule filing and 

are not being addressed as part of this rule filing. 

Securities Exchange Act Release No. 61080 (Dec. 1, 

2009), 74 FR 64117 (Dec. 7, 2009) (SR–FINRA– 

2009–068). 

5 Id. 

assignments, powers of substitution, 

due-bills, transfer fees, and marking to 

the market. The UPC, among other 

things, was created so that the 

transaction of day-to-day business by 

members may be simplified and 

facilitated. 

1. UPC Rules Generally 

FINRA will transfer a significant 

portion of the NASD Rule 11000 Series 

into the Consolidated FINRA Rulebook 

with the minor changes detailed below.4

Specifically, FINRA will update certain 

terminology in the UPC. For example, 

NASD Rule 11120 defines the term 

‘‘written notice’’ as used in the UPC to 

include a notice delivered by hand, 

letter, teletype, telegraph, TWX, 

facsimile transmission, or other 

comparable media. FINRA will delete 

the references to teletype, telegraph, and 

TWX and will include notice delivered 

by electronic mail. In addition, FINRA 

will update cross-references throughout 

the rules and will make other minor 

changes primarily to reflect the new 

conventions of the Consolidated FINRA 

Rulebook. 

2. Proposed FINRA Rules 11111 

(Refusal to Abide by Rulings of the 

Committee) and 11112 (Review by 

Panels of the UPC Committee) 

FINRA will adopt two new provisions 

that are largely based on former NASD 

IM–11890–1 (Refusal to Abide by 

Rulings) and NASD IM–11890–2 

(Review by Panels of the UPC 

Committee).5 The provisions of former 

NASD IM–11890–1 will be incorporated 

into and merged with current NASD 

IM–11110 (Refusal to Abide by Rulings 

of the Committee) and adopted as 

proposed new FINRA Rule 11111 as the 

two provisions are largely identical. 

Former NASD IM–11890–1 provided 

that a refusal by a member to take action 

necessary to effectuate a final decision 

of a FINRA officer or the UPC 

Committee under NASD Rule 11890 

(Clearly Erroneous Transactions) would 

be considered conduct inconsistent with 

just and equitable principles of trade. 

Current NASD IM–11110 provides that 

a refusal by a member to abide by an 

official ruling of the UPC Committee, 

acting within its appropriate sphere, 

shall be considered conduct 

inconsistent with just and equitable 

principles of trade. As approved, the 

new FINRA Rule 11111 will merge the 

two provisions and provide that a 

refusal by a member to take action 

necessary to effectuate a final decision 

of a FINRA officer or the UPC 

Committee under the UPC Code (FINRA 

Rule 11000 Series) or other FINRA rules 

that permit review of FINRA decisions 

by the UPC Committee will be 

considered conduct inconsistent with 

just and equitable principles of trade. 

The provisions of former NASD IM– 

11890–2, which applied only to rulings 

under NASD Rule 11890, will be 

adopted as proposed new FINRA Rule 

11112 (Review by Panels of the UPC 

Committee) and will be generally 

applicable to all rulings by the UPC 

Committee. The new FINRA Rule 11112 

will provide that a decision of the UPC 

Committee may be rendered by a panel 

of the Committee, which shall consist of 

three or more members of the UPC 

Committee, provided no more than 50 

percent of the members of any panel are 

directly engaged in market making 

activity or employed by a firm whose 

revenues from market making activity 

exceed ten percent of its total revenues. 

3. Proposed FINRA Rules 11810 

(Buying-In) and 11810.03 (Sample BuyIn Forms) 

As approved by this filing, the current 

NASD Rule 11810 (Buying-In) will be 

adopted as FINRA Rule 11810 (Buy-In 

Procedures and Requirements) in the 

Consolidated FINRA Rulebook with 

certain clarifications and changes. 

Incorporated NYSE Rules 282 (Buy-in 

Procedures) and related Supplementary 

Material paragraphs .10–.80 be deleted. 

The changes are intended to harmonize 

the differences between the NYSE rule 

and the NASD rule and to update 

certain procedures and time frames. 

FINRA will also adopt NASD IM–11810, 

which contains the sample buy-in 

forms, into the Consolidated FINRA 

Rulebook as accompanying 

Supplementary Material .03 to FINRA 

Rule 11810 with minor changes to 

replace references to NASD with 

FINRA. 

As approved, FINRA Rule 11810 will 

continue to set forth the required steps 

that members must follow to effect the 

‘‘buy-in’’ of securities including the 

procedures to be followed in issuing a 

‘‘buy-in’’ notice, the contents of such 

notice, the expectations of the receiving 

party to respond to such notice, and the 

time frames in which a ‘‘buy-in’’ may be 

issued, retransmitted, and effected. 

FINRA will also make certain minor 

clarifications and add the following 

more substantive provisions to proposed 

FINRA Rule 11810, which are currently 

contained in NYSE Rule 282 either with 

or without modifications, as specified: 

a. Include in paragraph (a) a statement 

clarifying that the rule does not apply 

to, among other things, securities 

contracts that are subject to the 

requirements of a national securities 

exchange or a registered clearing 

agency. 

b. Amend certain time frames for 

action specified in the proposed rule: 

i. Clarify the time frames within 

which members must take action to 

effect the ‘‘buy-in’’ of securities as 

required therein. Specifically, the NASD 

rule requires that a member act within 

the specified local time at the member’s 

location whereas the NYSE rule requires 

action to be taken based on Eastern 

Time (ET). To promote operational 

consistency among members, the 

proposal would amend the required 

time frame for action to be ET. 

ii. Amend the current time frames 

specified by the NASD and NYSE rules 

for the acknowledgement of a ‘‘buy-in’’ 

notice and the notification of an 

execution of the buy-in from 5 p.m. to 

6 p.m. ET. FINRA understands that the 

5 p.m. time may be operationally 

difficult for members to achieve in some 

cases and the 6 p.m. ET time frame 

would be more operationally feasible. 

iii. Add Supplementary Material .01 

(Early Closure of Markets) to clarify that 

in the event of an announced early 

closure of the market upon which the 

security subject to the ‘‘buy-in’’ notice is 

traded, members may take the action 

required by the rule not earlier than one 

hour prior to the announced early 

closure of such market. 

c. Add new paragraph (b)(4) to specify 

that (1) the buyer must maintain as part 

of its records, confirmation of receipt of 

the notice by the seller and (2) if the 

seller does not accept the notice of ‘‘buyin,’’ it must reject it by response to the 

buyer no later than 6 p.m. ET on the 

same date that it receives such notice, 

and in the absence of doing so, the seller 

will have been deemed by the buyer to 

have accepted such notice. The 

provision would clarify that the seller, 

in such case, would have the right to 

request proof of the fail obligation from 

the buyer, which the buyer must deliver 

to the seller prior to the effective date 

of the ‘‘buy-in.’’ However, in no event 

would a buyer be entitled to a ‘‘buy-in’’ 

that exceeds the liability of a seller 

under an unsettled securities contract 

because of the failure of the seller to 

reject a ‘‘buy-in’’ notice as provided in 

the rule, and a buyer may not execute 

a ‘‘buy-in’’ notice to such extent the 

buyer fails to deliver the proof of fail 


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obligation in accordance with the 

requirements of the rule. Requirements 

(1) and (2) described above are 

contained in the current NYSE rule in 

a similar form except FINRA will 

change the time to 6 p.m. ET. FINRA is 

also adding new provisions regarding 

‘‘passive acceptance’’ of the ‘‘buy-in’’ by 

the seller as described above, subject to 

certain safeguards for the benefit of the 

seller such as requiring the buyer to 

provide the proof of fail obligation and 

‘‘buying-in’’ the seller only for the 

securities contract amount in 

accordance with the proposed rule. 

d. Add new paragraph (b)(5) to 

specify that the receiving party shall 

immediately retransmit a notice of ‘‘buyin’’ to other parties from which the 

securities may be due in the form of a 

retransmitted ‘‘buy-in’’ notice. 

Consistent with new paragraph (b)(4) 

described above, the provision would 

clarify that each party receiving a 

retransmitted ‘‘buy-in’’ notice will be 

required to maintain confirmation of 

receipt of the notice as part of its books 

and records and either reject a 

retransmitted ‘‘buy-in’’ notice that it has 

received by 6 p.m. ET on the date such 

notice is received or be deemed to have 

accepted the notice (‘‘passive 

acceptance’’). The safeguards described 

above in proposed paragraph (b)(4) 

would also apply to sellers receiving a 

retransmitted notice. 

e. Add new paragraph (b)(6), which is 

contained in the NYSE rule, to clarify 

that when a notice of ‘‘buy-in’’ or a 

retransmitted notice thereof is given for 

less than the full amount of securities 

due, it shall not be for less than one 

trading unit. 

f. Amend paragraph (d) as follows: 

i. Retitle proposed paragraph (d) from 

the current rule title ‘‘Seller’s Failure to 

Deliver After Receipt of Notice’’ to 

‘‘Procedures for Closing of Contracts’’ to 

better align the title with the content of 

that paragraph. 

ii. Amend the time frames, as 

discussed generally above, to generally 

require the party receiving the ‘‘buy-in’’ 

notice to deliver the securities to the 

party issuing the notice by 3 p.m. ET on 

the effective date of the ‘‘buy-in’’ notice. 

iii. Add language to clarify that if the 

buyer/issuing party prior to executing 

the ‘‘buy-in’’ is notified by the seller/ 

delivering party that some or all of the 

securities are in the seller’s physical 

possession and will be delivered to the 

issuing party then the order to ‘‘buy-in’’ 

shall not be executed with respect to 

such securities, and the member that 

initiated the original order to ‘‘buy-in’’ 

shall accept and pay for such securities. 

However, if such securities are not 

promptly delivered, the seller that 

represented that it would make such 

delivery shall be liable for any resulting 

damages. 

iv. Add language contained in the 

NYSE rule to clarify the operation of the 

rule when a retransmitted buy-in notice 

is sent to the defaulting party but is not 

received by such party prior to the 

delivery of shares or the execution of 

the ‘‘buy-in.’’ In such case, the sender of 

the buy-in notice may unless otherwise 

agreed promptly reestablish by a new 

sale the contract subject to the notice of 

‘‘buy-in.’’ 

g. Amend paragraph (h) as follows: 

i. Amend the time frame, as discussed 

above, for notice to be made to the party 

for whose account the securities were 

bought to 6 p.m. ET on the date of 

execution of the ‘‘buy-in.’’ 

ii. Add new language, not contained 

in either legacy rule, to clarify that the 

confirmation of the executed ‘‘buy-in’’ 

provided for by the rule shall be 

forwarded to the party entitled to the 

confirmation by no later than 9:30 a.m. 

ET on the following business day after 

the execution of the ‘‘buy-in.’’ 

iii. Add a provision contained in the 

NYSE rule that requires that a statement 

of any resulting money differences from 

the execution of the ‘‘buy-in’’ be 

provided immediately and that such 

money differences shall be paid by no 

later than 3 p.m. ET on the business day 

after the settlement date of the executed 

‘‘buy-in.’’ 

h. Amend paragraph (i) to clarify, as 

provided in the NYSE rule, that 

notification of all close-outs as provided 

by the paragraph shall be sent 

immediately to the member being 

closed-out pursuant to the confirmation 

provisions of the Rule 11200 Series at 

least thirty minutes before such ‘‘closeout.’’ 

i. Add Supplementary Material .02 to 

clarify, as provided in the NYSE rule, 

that where securities have been 

delivered by the seller after the ‘‘buy-in’’ 

order has been placed but not executed, 

such securities may be returned to the 

seller if the ‘‘buy-in’’ was executed in 

accordance with the rule before it could 

reasonably be cancelled by the initiating 

party. 

4. Proposed FINRA Rule 11820 (SellingOut) 

Current NASD Rule 11820 (SellingOut) will be adopted as FINRA Rule 

11820 (Selling-Out) into the 

Consolidated FINRA Rulebook, subject 

to minor changes. There is no 

comparable NYSE rule. NASD Rule 

11820 generally requires the party 

executing the ‘‘sell-out’’ to notify the 

buyer on the day of execution no later 

than the close of business local time 

where the buyer maintains his office of 

the quantity sold and the price received. 

FINRA will conform the time frames in 

this new rule to the time frames in the 

new FINRA Rule 11810 (Buy-In 

Procedures and Requirements). 

Specifically, this new rule will replace 

the requirement to provide notice ‘‘no 

later than the close of business local 

time, where the buyer maintains his 

office’’ with the requirement that such 

notice must be provided no later than ‘‘6 

p.m. ET.’’ FINRA believes this change 

provides clarity and uniformity to the 

industry. In addition, the rule will 

amend certain references in the 

proposed rule from ‘‘should’’ to ‘‘shall.’’ 

Specifically, in paragraph (b), 

notification by the party executing a 

‘‘sell-out’’ shall be in written or 

electronic form, and a formal 

confirmation of such sale shall be 

forwarded as promptly as possible after 

execution of the ‘‘sell-out.’’ 

5. Proposed FINRA Rule 11860 (COD 

Orders) 

FINRA will adopt NASD Rule 11860 

(Acceptance and Settlement of COD 

Orders) as FINRA Rule 11860 (COD 

Orders) into the Consolidated FINRA 

Rulebook subject to minor changes and 

to delete NASD Rule 3370 (Purchases) 

and Incorporated NYSE Rule 387 (COD 

Orders) and its Supplementary Material 

paragraphs .10–.60, NYSE Rule 387 

Interpretations /01–/18, Rule 430 

(Partial Delivery of Securities to 

Customers on C.O.D. Purchases), and 

NYSE Rule 430 Interpretation /01. 

NASD Rule 11860 and NYSE Rule 387 

provide generally that no member can 

accept an order from a customer 

pursuant to an arrangement whereby 

payment for the securities purchased or 

delivery of the securities sold is to be 

made to or by an agent of the customer 

unless certain specified procedures are 

followed. NASD Rule 3370 and NYSE 

Rule 430 both generally provide that no 

member or associated person may 

accept a customer’s purchase order for 

securities unless it has first ascertained 

that the customer placing the order or 

its agent has agreed to receive the 

securities against payment in an amount 

equal to the execution price even 

though such purchase may represent 

only a part of a larger order. NYSE Rule 

430 has an exception for obligations of 

the U.S. government. 

As approved, FINRA Rule 11860 will 

continue the requirement in NYSE Rule 

430 and NASD Rule 3370 that members 

prior to accepting a purchase order for 

a security ascertain that the customer or 

its agent will receive against payment 

securities in an amount equal to any 

execution confirmed to the customer 


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6Previously, NYSE Rule 412 (Customer Account 

Transfer Contracts) and its related interpretations 

similarly regulated the transfer of customer 

accounts. FINRA eliminated NYSE Rule 412 and its 

interpretations from the Transitional Rulebook as 

part of a rule change to reduce regulatory 

duplication for Dual Members during the period 

before completion of the Consolidated FINRA 

Rulebook. The NYSE subsequently amended its 

version of NYSE Rule 412 to state that NYSE 

members and member organizations shall comply 

with NASD Rule 11870, concerning the transfer of 

customer accounts between members, and any 

amendments thereto, as if such rule were part of the 

NYSE’s rules. Securities Exchange Act Release No. 

58533 (Sept. 12, 2008), 73 FR 54652 (Sept. 22, 2008) 

(Approval Order; SR–FINRA–2008–036). 7 Id. 8 15 U.S.C. 78o–3(b)(6). 

even if such execution may represent a 

partial fill of the order. FINRA will 

eliminate the exemption for transactions 

in U.S. government obligations as 

provided by Rule 430. Further, the rule 

as being adopted will continue to 

require the use of either a Clearing 

Agency or a Qualified Vendor for the 

electronic confirmation and affirmation 

of all depository eligible transactions. 

FINRA is clarifying that the new rule 

will, similar to NYSE Rule 387, apply to 

(1) transactions of foreign customers and 

broker-dealers that settle in the U.S. and 

(2) eligible sinking funds and/or 

dividend reinvestment transactions. The 

new rule will add a new requirement 

that is contained in NYSE Rule 387 that 

requires a ‘‘Qualified Vendor’’ to provide 

FINRA with copies of its required 

submissions to the SEC staff. 

6. Proposed FINRA Rules 11870 

(Customer Account Transfer Contracts) 

and 11870.03 (Sample Transfer 

Instruction Forms) 

FINRA is adopting NASD Rule 11870 

as FINRA Rule 11870 (Customer 

Account Transfer Contracts) into the 

Consolidated FINRA Rulebook with the 

following changes. There is no 

comparable NYSE Incorporated Rule.6

FINRA is also adopting NASD IM– 

11870, which contains the Sample 

Transfer Instruction Forms, into the 

Consolidated FINRA Rulebook with 

minor changes to replace references to 

NASD with FINRA. 

Generally, NASD Rule 11870 provides 

that when a brokerage customer wishes 

to transfer his or her account to another 

member and gives written notice of that 

fact to the receiving member, both 

members must expedite and coordinate 

the transfer. The new FINRA Rule 11870 

would continue to set forth the required 

steps that members must follow to effect 

the transfer of customers’ accounts, 

including the initial request to transfer 

an account, the time frame in which a 

transfer request must be acted upon, the 

validation of such transfer request, and 

the documentation required to effect the 

transfer. FINRA will add to proposed 

FINRA Rule 11870 minor clarifications 

as well as the following more 

substantive, which were interpretations 

to the prior version of NYSE Rule 412: 7

a. Add a new provision regarding the 

procedures for the transfer of book-entry 

mutual fund shares that clarifies the 

obligations of the parties when 

transferring a customer’s positions in 

such securities. FINRA will add this 

provision to paragraph (f)(9) of proposed 

FINRA Rule 11870. 

b. Add a definition of the term 

‘‘participant in a registered clearing 

agency’’ for purposes of the rule to mean 

a member that is eligible to use the 

agency’s automated customer securities 

account transfer capabilities. 

c. Add Supplementary Material .01 to 

clarify that members must establish 

written procedures to effect and 

supervise the transfer of customer 

account assets pursuant to the 

requirements of the proposed rule. 

d. Add Supplementary Material .02 to 

require members to inform customers 

with respect to retirement plan 

securities that the choice of the method 

of disposition of such assets may result 

in liability for the payment of taxes and 

penalties. 

e. Amend the time frames in the new 

rule for notice and completion of closeouts of fail contracts resulting from the 

not completing a transfer of a customer’s 

account to conform to the time frames 

for all close-outs as specified in 

proposed FINRA Rule 11810 (Buy-In 

Procedures and Requirements). 

Specifically, the new rule will require 

the receiving member to provide notice 

to the carrying member not later than 12 

noon ET two business days preceding 

the execution of the proposed close-out 

(as opposed to 12 noon ‘‘his’’ time). In 

addition, the rule will require that every 

notice of close-out state that the 

securities may be closed out ‘‘unless 

delivery is effected at or before a certain 

specified time, which may not be prior 

to 3 p.m. ET,’’ as opposed to ‘‘the local 

time in the community where the 

carrying member maintains his office.’’ 

The new rule will also replace the 

requirement that the party executing the 

‘‘close-out’’ notify the seller as to the 

quantity purchased and the price paid 

not later than ‘‘the close of business, 

local time, where the seller maintains 

his office,’’ with the requirement to 

provide such notice not later than ‘‘6 

p.m. ET on the date of the execution of 

such ‘close-out’.’’ 

f. Amend certain references in the 

new rule from ‘‘should’’ to ‘‘shall.’’ 

Specifically, (1) In paragraph (f) that the 

obligation that fail contracts established 

pursuant to the rule shall be clearly 

marked or captioned as such and that a 

receiving member shall reject delivery 

of a security that cannot be deemed a 

safekeeping position against a fail 

contract; (2) in paragraph (h) that 

notification shall be in written or 

electronic form and that confirmation of 

purchase along with a billing or 

payment shall be forwarded as promptly 

as possible; (3) in paragraph (i) that 

notification shall be in written or 

electronic form; and (4) in paragraph 

(m) that when both members are 

participants in a registered clearing 

agency, the securities account asset 

transfer procedures shall be 

accomplished in accordance with the 

rule and the rules of the registered 

clearing agency. 

g. Eliminate paragraph (n)(3) which 

requires that a copy of each customer 

account transfer instruction issued on 

an ‘‘ex-clearing house’’ basis be sent to 

the local District Office of NASD having 

jurisdiction over the carrying member. 

FINRA believes that a majority of 

customer account transfers now occur 

between members of a clearing agency 

and that the volume of transactions that 

occur ‘‘ex-clearing’’ has significantly 

decreased. 

FINRA will announce the 

implementation date of the rule change 

in a Regulatory Notice to be published 

no later than ninety days following the 

date of the approval of this rule change. 

The implementation date will be no 

later than 365 days following the date of 

the approval of this rule change. 

III. Discussion 

Section 15A(b)(6) of the Act requires, 

among other things, that FINRA rules 

must be designed to promote just and 

equitable principles of trade and, in 

general, to protect investors and the 

public interest.8 The rule change 

amends FINRA’s rules so as to adopt a 

majority of the UPC Rules into the new 

Consolidated FINRA Rulebook without 

significant changes in order to update 

and to reflect the new conventions of 

the Consolidated FINRA Rulebook. The 

rule change also updates certain other 

UPC Rules to reflect current industry 

practices. As one part of a larger 

undertaking to consolidate the rules of 

the NASD and NYSE, FINRA’s new 

rules will apply to all registered brokerdealers, which should further promote 

the just and equitable principles of trade 

and, in general, better protect investors 

and the public interest. 

Accordingly, for the reasons stated 

above the Commission believes that the 

rule change is consistent with FINRA’s 


jlentini on DSKJ8SOYB1PROD with NOTICES
55846 Federal Register / Vol. 75, No. 177 / Tuesday, September 14, 2010 / Notices 

9 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

10 17 CFR 200.30–3(a)(12). 

obligation under Section 15A of the 

Exchange Act, as amended, and the 

rules and regulations thereunder.9

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and in 

particular with the requirements of 

Section 15A of the Act and the rules and 

regulations thereunder. 

It is therefore ordered, pursuant to 

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

proposed rule change (File No. SR– 

FINRA–2010–030) be and hereby is 

approved. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–22783 Filed 9–13–10; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF STATE 

[Public Notice: 7113] 

U.S. Department of State Advisory 

Committee on Private International 

Law: Public Meeting on the Work of the 

UNCITRAL Working Group on 

Procurement 

The United Nations Commission on 

International Trade Law (UNCITRAL) 

Working Group on Procurement will 

next meet November 1–5, 2010 in 

Vienna. At that meeting, the Working 

Group will continue its work on 

revisions to the 1994 Model Law on 

Procurement of Goods, Construction 

and Services, and it may also begin a 

review of a Guide to Enactment that will 

accompany the revised Model Law. 

In preparation for that meeting, a 

public meeting will be held, under the 

auspices of the Department of State’s 

Advisory Committee on Private 

International Law, to obtain the views of 

concerned stakeholders. 

Time and Place: The public meeting 

will take place at The George 

Washington University Law School, 

Faculty Conference Center, 5th floor, 

2000 H Street, NW., Washington, DC on 

October 21, 2010. The meeting will 

begin at 9:30 a.m. and is expected to last 

no later than noon. If you are unable to 

attend the public meeting and would 

like to participate from a remote 

location, teleconferencing will be 

available. 

Public Participation: It is requested 

that persons wishing to attend contact 

Trisha Smeltzer prior to October 14, 

2010, at smeltzertk@state.gov or 703– 

812–2382 and provide their name, email address, and affiliation. A member 

of the public requesting reasonable 

accommodation should make his or her 

request upon registering for the meeting. 

Such requests received after October 19 

will be considered, but might not be 

possible to fulfill. Please contact Ms. 

Smeltzer for additional meeting 

information, including teleconferencing 

dial-in details. 

Dated: September 7, 2010. 

Keith Loken, 

Assistant Legal Adviser, Office of Private 

International Law, Office of the Legal Adviser, 

Department of State. 

[FR Doc. 2010–22890 Filed 9–13–10; 8:45 am] 

BILLING CODE 4710–08–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

Draft Re-Evaluation for Environmental 

Impact Statement: Sikorsky Memorial 

Airport, Stratford, CT 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of availability. 

SUMMARY: The FAA is issuing this notice 

to advise the public that a Draft ReEvaluation for an Environmental Impact 

Statement (EIS) has been prepared for 

Sikorsky Memorial Airport in Stratford, 

Connecticut. 

FOR FURTHER INFORMATION CONTACT: 

Richard Doucette, Environmental 

Program Manager, Federal Aviation 

Administration New England, 12 New 

England Executive Park, Burlington, 

MA. (781) 238–7613. 

SUPPLEMENTARY INFORMATION: The FAA 

is making available a Draft ReEvaluation document, which evaluates 

the impacts of Runway Safety Areas and 

other airfield improvements at Sikorsky 

Memorial Airport in Stratford, 

Connecticut. The document will assist 

the FAA in determining the suitability 

of the May 1999 EIS and October 1999 

Record of Decision (ROD). No action has 

been taken on the prior EIS or ROD. The 

Re-Evaluation document is available for 

review during normal business hours at 

the following locations: 

FAA New England Region, 16 New 

England Executive Park, Burlington, 

MA, 781–238–7613. 

Stratford Public Library, 2203 Main 

St., Stratford, CT, 203–385–4161. 

Bridgeport Public Library, Borroughs 

Bldg., 925 Broad St., Bridegport, CT, 

203–576–7777. 

Igor Sikorsky Memorial Airport, 

Administration Bldg., 1000 Great 

Meadow Dr., Stratford, CT, 203–576– 

8162. 

A public hearing will be held to 

solicit public comment on the 

document. The hearing will be held on 

September 22 at the Stratford Ramada 

Inn, 225 Lordshop Blvd., Stratford, 

Connecticut at 7 p.m. Public comments 

will be accepted through September 30, 

2010. 

Issued on: August 27, 2010. 

LaVerne F. Reid, 

Manager, Airports Division. 

[FR Doc. 2010–22823 Filed 9–13–10; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

Public Meeting/Working Group With 

Industry on Volcanic Ash 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of public meeting. 

SUMMARY: This notice announces a 

meeting hosted by the FAA’s Aviation 

Weather Group in coordination with the 

National Oceanic and Atmospheric 

Administration (NOAA). The meeting is 

to identify operational needs for 

Volcanic Ash information in support of 

aviation from stakeholders. 

DATES: The meeting will be held on 

November 5, 2010, from 9 a.m. to 4:30 

p.m. 

ADDRESSES: The meeting will be held at 

the Federal Aviation Administration, 

800 Independence Avenue SW., Bessie 

Coleman Room, Washington, DC 20591. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Steven R. Albersheim, Federal Aviation 

Administration, 800 Independence 

Avenue, SW., Washington, DC 20591; 

telephone: (202) 385–7185; e-mail: 

steven.albersheim@faa.gov or Mr. 

Stewart Stepney, Federal Aviation 

Administration, 800 Independence 

Avenue, SW., Washington, DC 20591; 

telephone: (202) 385–7182; e-mail: 

stewart.stepney@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background: The FAA is issuing this 

notice to advise the public of a meeting 

to discuss the establishment of 

operational requirements for the 

reporting and forecasting of volcanic 

eruptions and the associated ash cloud. 

It has been well documented that 

volcanic ash clouds are a hazard to en 


jlentini on DSKJ8SOYB1PROD with NOTICES