Federal Register / Vol. 79, No. 199 / Wednesday, October 15, 2014 / Notices 61913 

7 Id. 

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

9 17 CFR 240.19b–4(f)(6). 

10 In addition, Rule 19b–4(f)(6)(iii) requires the 

Exchange to give the Commission written notice of 

the Exchange’s intent to file the proposed rule 

change, along with a brief description and text of 

the proposed rule change, at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

11 17 CFR 240.19b–4(f)(6)(iii). 12 15 U.S.C. 78s(b)(3)(C). 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange’s proposal to adopt a PIM ISO 

order type is pro-competitive because it 

will enable the Exchange to provide 

market participants with an additional 

method of seeking price improvement 

through the PIM. The proposed rule 

change will also allow the Exchange to 

compete with other markets that already 

allow an ISO order type in their price 

improvement mechanisms.7

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 8 and Rule 19b–4(f)(6) 9

thereunder because the proposal does 

not: (i) Significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) by its 

terms, become operative for 30 days 

from the date on which it was filed, or 

such shorter time as the Commission 

may designate if consistent with the 

protection of investors and the public 

interest.10

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing. However, Rule 19b– 

4(f)(6)(iii) 11 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. 

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.12

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– 

ISEGemini–2014–26 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–ISEGemini-2014–26. 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 the Exchange. 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– 

ISEGemini-2014–26 and should be 

submitted on or before November 5, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24418 Filed 10–14–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73316; File No. SR–FINRA– 

2014–040] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Revise the Operative 

Date for Deletion of Rule 7740 

Pursuant to SR–FINRA–2014–032 

October 7, 2014. 

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 

September 25, 2014, Financial Industry 

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

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I and II below, which Items 

have been prepared by FINRA. FINRA 

has designated the proposed rule change 

as constituting a ‘‘non-controversial’’ 

rule change under paragraph (f)(6) of 

Rule 19b–4 under the Act,3 which 

renders the proposal effective upon 

receipt of this filing by the Commission. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing to revise the 

operative date for the deletion of Rule 

7740 (Historical Research and 

Administrative Reports) pursuant to 

SR–FINRA–2014–032. The proposed 

rule change would not make any 

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 


tkelley on DSK3SPTVN1PROD with NOTICES
61914 Federal Register / Vol. 79, No. 199 / Wednesday, October 15, 2014 / Notices 

4See Securities Exchange Act Release No. 72595 

(July 11, 2014), 79 FR 41711 (July 17, 2014) (Notice 

of Filing and Immediate Effectiveness; SR–FINRA– 

2014–032). 

5See ‘‘Revised Migration Date for New OTC 

Reporting Facility Technology Platform,’’ available 

at www.finra.org/Industry/Compliance/

MarketTransparency/ORF/Notices/P580334. 6 15 U.S.C. 78o–3(b)(6). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 240.19b–4(f)(6)(iii). 

11For purposes only 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). 

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, Proposed Rule 

Change 

1. Purpose 

On July 2, 2014, FINRA filed for 

immediate effectiveness proposed rule 

change SR–FINRA–2014–032 to amend 

Rule 7710 relating to fees for the OTC 

Reporting Facility (‘‘ORF’’) and delete 

Rule 7740.4 Rule 7740 sets forth the fees 

to be paid by the purchaser of historical 

research reports regarding OTC Bulletin 

Board (‘‘OTCBB’’) securities through the 

OTCBB Web site. 

By its terms, SR–FINRA–2014–032 

will be operative upon migration of the 

ORF to FINRA’s Multi-Product Platform 

(‘‘MPP’’). At the time of the filing of SR– 

FINRA–2014–032, the ORF was 

scheduled to migrate to the MPP on 

September 15, 2014. In response to 

requests by the industry, FINRA 

recently delayed the migration of the 

ORF from September 15, 2014 to 

November 17, 2014.5 As such, the 

amendments to Rule 7710 relating to 

fees for the ORF will be operative on the 

revised migration date of November 17, 

2014. 

However, with respect to deletion of 

Rule 7740, FINRA is proposing that the 

operative date be September 30, 2014. 

On that date, FINRA’s vendor that 

generates and bills for the historical 

research reports under Rule 7740 will 

migrate to a new technology platform 

and will no longer provide these 

services to FINRA. Because FINRA 

contemplated migration of the ORF to 

the MPP, and the elimination of these 

reports, as of September 15, 2014, 

FINRA did not make arrangements to 

connect to the vendor’s new technology 

platform. As such, the historical 

research reports will not be produced as 

of September 30, 2014. (The last date to 

order a report would be September 29, 

2014.) As noted in SR–FINRA–2014– 

032, the quotation activity through the 

OTCBB has decreased in recent years 

and as such, the value of these reports 

has declined significantly. In fact, some 

reports in recent months have been 

generated with substantially all zeroes. 

Accordingly, the number of requests for 

reports continues to decrease. For 

example, there were 274 requests for 

reports pursuant to Rule 7740 in 2012, 

103 in 2013 and 57 through August 

2014. 

FINRA has filed the proposed rule 

change for immediate effectiveness and 

has requested that the Commission 

waive the requirement that the proposed 

rule change not become operative for 30 

days after the date of the filing. The 

operative date will be the date of filing 

of the proposed rule change. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

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

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes the 

proposed rule change is consistent with 

the Act in that it ensures that FINRA 

rules accurately reflect the functionality 

of its systems and will avoid the 

potential confusion of having a fee rule 

in FINRA’s manual for reports that 

FINRA no longer provides. 

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 in 

SR–FINRA–2014–032, with the deletion 

of Rule 7740, FINRA is eliminating fees 

for historical research reports that are of 

little value today and not relied on by 

market participants as a source of 

market data. 

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 

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 7 and Rule 19b– 

4(f)(6) thereunder.8

A proposed rule change filed under 

Rule 19b–4(f)(6) 9 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),10 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. FINRA is proposing to 

change the deletion date of Rule 7740 

due to the reports’ unavailability as a 

result of a third-party vendor’s platform 

change. The Commission believes it is 

in the interest of investors to implement 

this change immediately. The reports 

referenced in Rule 7740 will be 

unavailable before the 30-day operative 

delay is complete and, by making the 

filing operative immediately, this will 

provide the most notice of this change 

to the firms. Therefore, the Commission 

hereby waives the 30-day operative 

delay and designates the proposal 

operative upon filing.11

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: 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 199 / Wednesday, October 15, 2014 / Notices 61915 

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 Rel. No. 62930 

(Sept. 17, 2010), 75 FR 58007 (Sept. 23, 2010) (SR– 

FINRA–2010–036). 

4See Securities Exchange Act Rel. No. 64954 (Jul. 

25, 2011), 76 FR 45631 (Jul. 29, 2011) (SR–FINRA– 

2010–036) (Notice of Filing Proposed Rule Change 

and Amendment No. 1 to Amend the Codes of 

Arbitration Procedure To Permit Arbitrators To 

Make Mid-Case Referrals) (hereinafter, the 

‘‘Amended Original Proposal,’’ to distinguish 

Amendment No.1 to the original proposal from the 

current proposal as amended by Partial Amendment 

No. 1.). 

5See SR–FINRA–2010–036, Withdrawal of 

Proposed Rule Change, available at http://

www.finra.org/Industry/Regulation/RuleFilings/

2010/P121722. 

6See Securities Exchange Act Rel. No. 71534 

(Feb. 12, 2014), 79 FR 9523 (Feb. 19, 2014) (SR– 

FINRA–2014–005) (‘‘Notice of Filing’’). 

7See Letter from Mignon McLemore, Assistant 

General Counsel, FINRA Dispute Resolution, to 

Lourdes Gonzalez, Commission, dated May 19, 

2014 (‘‘May Response’’). The May Response and the 

text of Partial Amendment No. 1 are available on 

Continued 

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–2014–040 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. 

All submissions should refer to File 

Number SR–FINRA–2014–040. 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– 

2013–040 and should be submitted on 

or before November 5, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24454 Filed 10–14–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73319; File No. SR–FINRA– 

2014–005] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Approving a 

Proposed Rule Change, as Modified by 

Partial Amendment No. 1, To Broaden 

Arbitrators’ Authority To Make 

Referrals During an Arbitration 

Proceeding 

October 8, 2014. 

I. Introduction 

On July 12, 2010, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) filed a proposal pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b-4 thereunder,2 with the Securities 

and Exchange Commission 

(‘‘Commission’’) to amend Rule 12104 

(Effect of Arbitration on FINRA 

Regulatory Activities) of the Code of 

Arbitration Procedure for Customer 

Disputes (‘‘Customer Code’’) and Rule 

13104 (Effect of Arbitration on FINRA 

Regulatory Activities) of the Code of 

Arbitration Procedure for Industry 

Disputes (‘‘Industry Code’’) 

(collectively, the ‘‘Codes’’). This initial 

proposal would have permitted 

arbitrators to make referrals to FINRA 

during an arbitration case, would have 

required the FINRA Director of 

Arbitration (‘‘Director’’) to disclose the 

referral to the parties, and would have 

required the entire panel to withdraw 

upon a party’s request that a referring 

arbitrator withdraw (‘‘original 

proposal’’). The Commission published 

the original proposal for comment on 

September 17, 2010.3 On July 7, 2011, 

FINRA responded to comments received 

by the Commission by filing an 

amendment to the original proposal,4

which replaced the original proposal in 

its entirety. 

Under the Amended Original 

Proposal, an arbitrator would have been 

permitted to make a mid-case referral if 

he or she became aware of any matter 

or conduct that the arbitrator had reason 

to believe posed a serious threat, 

whether ongoing or imminent, that was 

likely to harm investors unless 

immediate action was taken. A mid-case 

referral could not have been based 

solely on allegations in the pleadings. 

The Amended Original Proposal also 

would have instructed the arbitrator to 

wait until the arbitration concluded to 

make a referral if, in the arbitrator’s 

judgment, investor protection would not 

have been materially compromised by 

the delay. Further, if an arbitrator made 

a mid-case referral, the Director would 

have disclosed the act of making the 

referral to the parties, and a party would 

have been permitted to request recusal 

of the referring arbitrator. The Amended 

Original Proposal would have required 

either the President of FINRA Dispute 

Resolution (‘‘President’’) or the Director 

to evaluate the referral and determine 

whether to forward it to other divisions 

of FINRA for further review. Finally, the 

Amended Original Proposal would have 

retained the provisions in Rule 12104(b) 

of the Customer Code and Rule 13104(b) 

of the Industry Code that permits an 

arbitrator to make a post-case referral. 

The Commission received five comment 

letters in response to the Amended 

Original Proposal. 

On January 29, 2014, FINRA 

withdrew the Amended Original 

Proposal 5 without responding to the 

comments and filed the current 

proposal (‘‘Proposed Rule’’). The 

Proposed Rule was identical to the 

Amended Original Proposal. As part of 

the Proposed Rule, FINRA responded to 

comments received on the Amended 

Original Proposal. The Proposed Rule 

was published for comment in the 

Federal Register on February 12, 2014.6

The Commission received 10 comment 

letters in response. On March 28, 2014, 

FINRA extended to May 20, 2014, the 

time period in which the Commission 

must approve the Proposed Rule, 

disapprove the Proposed Rule, or 

institute proceedings to determine 

whether to approve or disapprove the 

Proposed Rule. On May 19, 2014, 

FINRA responded to comments to the 

Proposed Rule and filed Partial 

Amendment No. 1.7


tkelley on DSK3SPTVN1PROD with NOTICES