Federal Register / Vol. 74, No. 108 / Monday, June 8, 2009 / Notices 27215 

16 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

17 15 U.S.C. 78o–3(b)(6). 

18See Securities Exchange Act Release No. 39043 

(September 10, 1997), 62 FR 48689 (September 16, 

1997)(Order Approving Proposed Rule Change and 

Notice of Filing and Order Granting Accelerated 

Approval of Amendment No. 1 to the Proposed 

Rule Change by the National Association of 

Securities Dealers, Inc. Relating to the Distribution 

of Information Concerning the Availability of the 

NASD’s Public Disclosure Program). 

19 15 U.S.C. 78s(b)(2). 

20Pursuant to Section 19(b)(2) of the Act, 15 

U.S.C. 78s(b)(2), the Commission may not approve 

any proposed rule change, or amendment thereto, 

prior to the thirtieth day after the date of 

publication of the notice thereof, unless the 

Commission finds good cause for so doing. 

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

22 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). 

IV. Discussion and Commission 

Findings 

After careful review of the proposed 

rule change, the comment letters, and 

FINRA’s response to comments, the 

Commission finds that the proposal is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities association.16 In particular, 

the Commission finds that the proposed 

rule change is consistent with Section 

15A(b)(6) of the Act,17 which requires, 

among other things, that FINRA 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. 

Requiring broker-dealers that carry 

customer accounts to provide customers 

at least once each calendar year, or, for 

certain broker-dealers that are 

introducing firms as described in the 

proposed rule, once at the time of initial 

purchase, with written information 

regarding the BrokerCheck hotline 

number, FINRA’s Web site address, and 

a statement regarding the availability of 

an investor brochure describing 

BrokerCheck, publicizes the availability 

of information that helps investors 

determine whether to conduct, or to 

continue to conduct, business with a 

FINRA member or associated person of 

the member. In addition, the 

Commission has found NASD Rule 

2280, on which the proposed rule is 

based, to be consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities association.18

The Commission finds good cause, 

pursuant to Section 19(b)(2) of the 

Act,19 for approving the proposal, as 

modified by Amendment No. 1, prior to 

the thirtieth day after the date of 

publication of notice of filing of 

Amendment No. 1 in the Federal 

Register.20 Amendment No. 1 

responded to the comments by tailoring 

the requirement for firms whose contact 

with customers is limited to introducing 

customer accounts to be held directly at 

an entity other than a FINRA member 

and thereafter do not carry customer 

accounts or hold customer funds but 

that the customer, at the outset, still 

receives the information. In addition, 

the firms afforded the exception 

proposed in Amendment No. 1 do not 

have any obligation under current 

NASD Rule 2280, so customers will still 

be receiving more information than they 

do presently. Therefore, the 

Commission believes that it is in the 

public interest to approve the proposal, 

as modified by Amendment No. 1, on an 

expedited basis. 

V. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposal, as 

modified by Amendment No. 1, 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 

No. SR–FINRA–2008–062 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–2008–062. 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–2008–062 and 

should be submitted on or before June 

29, 2009. 

VI. Conclusion 

It is therefore ordered, pursuant to 

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

proposed rule change (SR–FINRA– 

2008–062), as modified by Amendment 

No. 1, be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–13253 Filed 6–5–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60008; File No. SR–FINRA– 

2009–033] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rule CrossReferences in FINRA Rules 

May 29, 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 May 13, 

2009, 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 


cprice-sewell on PRODPC61 with NOTICES
27216 Federal Register / Vol. 74, No. 108 / Monday, June 8, 2009 / Notices 

4The current FINRA rulebook consists of (1) 

FINRA Rules; (2) NASD Rules; and (3) rules 

incorporated from NYSE (‘‘Incorporated NYSE 

Rules’’) (together, the NASD Rules and Incorporated 

NYSE Rules are referred to as the ‘‘Transitional 

Rulebook’’). While the NASD Rules generally apply 

to all FINRA members, the Incorporated NYSE 

Rules apply only to those members of FINRA that 

are also members of the NYSE (‘‘Dual Members’’). 

The FINRA Rules apply to all FINRA members, 

unless such rules have a more limited application 

by their terms. For more information about the 

rulebook consolidation process, see FINRA 

Information Notice, March 12, 2008 (Rulebook 

Consolidation Process). 

5See Securities Exchange Act Release No. 59605 

(March 19, 2009), 74 FR 13283 (March 26, 2009) 

(Order Approving File No. SR–FINRA–2008–055). 

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). In addition, Rule 19b– 

4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission written 

notice of its 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. FINRA has satisfied this notice 

requirement. 

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 correct or 

update certain rule cross-references in 

certain FINRA rules that have been 

adopted in the consolidated FINRA 

rulebook. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

FINRA included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. FINRA has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

FINRA is in process of developing a 

new consolidated rulebook 

(‘‘Consolidated FINRA Rulebook’’).4

That process involves FINRA submitting 

to the Commission for approval a series 

of proposed rule changes over time to 

adopt rules in the Consolidated FINRA 

Rulebook. The phased adoption and 

implementation of those rules 

necessitates periodic amendments to 

update rule cross-references and other 

non-substantive technical changes in 

the Consolidated FINRA Rulebook. 

The proposed rule change would 

update rule cross-references in FINRA 

Rules 2114 (Recommendations to 

Customers in OTC Equity Securities) 

and 9610 (Application for Exemptions). 

The former FINRA rule was approved 

by the Commission on March 19, 2009 5

and will become effective on June 15, 

2009. Paragraph (e)(1)(B) of that rule 

makes reference to FINRA Rule 4512(c); 

however, the referenced rule has not yet 

been adopted in the Consolidated 

FINRA Rulebook, so the proposed rule 

change would revert the reference to the 

existing NASD Rule 3110(c)(4)—a nonsubstantive change. With respect to 

FINRA Rule 9610, the proposed rule 

change would update rule crossreferences to reflect the adoption of Rule 

2114. 

FINRA has filed the proposed rule 

change for immediate effectiveness. The 

implementation date will be June 15, 

2009, the date on which the previously 

approved rule change will also be 

implemented. 

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 will provide 

greater clarity to members and the 

public regarding FINRA’s rules. 

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 

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

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–2009–033 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Florence E. Harmon, Deputy 

Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–FINRA–2009–033. 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 


cprice-sewell on PRODPC61 with NOTICES
Federal Register / Vol. 74, No. 108 / Monday, June 8, 2009 / Notices 27217 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission notes that Amendment No.1 

replaces and supersedes the initial filing in its 

entirety. 

4The Chinese yuan may also be known as 

renminbi (similarly to the British pound and 

sterling). 

5Options on the following U.S. dollar-settled 

foreign currencies are currently listed and traded on 

the Exchange: the Australian dollar, the Euro, the 

British pound, the Canadian dollar, the Swiss franc, 

and the Japanese yen (together, the ‘‘FCOs’’) (the 

New Currencies and FCOs are together known as 

the ‘‘Currencies’’). The product specifications for 

the U.S. dollar-settled FCOs, which are not altered 

by or as a result of this filing, may be found at 

http://www.nasdaqtrader.com/ 

Micro.aspx?id=phlxwcoproductspecs. 

6Rules 1000 (Applicability, Definitions and 

References), 1001 (Position Limits), 1002 (Exercise 

Limits), 1009 (Criteria for Underlying Securities), 

1012 (Series of Options Open for Trading), 1014 

(Obligations and Restrictions Applicable to 

Specialists and Registered Options Traders), 1016 

(Block Transactions in Physical Delivery Foreign 

Currency Options), 1027 (Discretionary Accounts), 

1033 (Bids and Offers—Premium), 1034 (Minimum 

Increments), 1044 (Delivery and Payment), 1049 

(Communications to Customers), 1057 (U.S. DollarSettled Foreign Currency Option Closing Settlement 

Value), 1063 (Responsibilities of Floor Brokers), 

1069 (Customized Foreign Currency Options), 1070 

(Customer Complaints), 1079 (FLEX Index, Equity 

and Currency Options), 1089 (Dealing Directly With 

Specialist and Registered Option Trader in Foreign 

Currency Options), and 1092 (Obvious Errors and 

Catastrophic Errors). 

7Option Floor Procedure Advices B–7 (Time 

Priority of Bids/Offers in Foreign Currency Options 

(Physical Delivery Foreign Currency Option Only)), 

C–2 (Options Floor Broker Management System), F– 

6 (Options Quote Parameters), F–17 (FCO Trades to 

be Effected in the Pit (Physical Delivery Foreign 

Currency Option Only)), F–18 (FCO Expiration 

Months and Strike Prices—Selective Quoting 

Facility (Physical Delivery Foreign Currency Option 

Only)), and F–20 (Quoting and Trading Customized 

Foreign Currency Options (Foreign Currency 

Option Only)). 

8See Securities Exchange Act Release No. 54989 

(December 21, 2006), 71 FR 78506 (December 29, 

2006) (SR–Phlx–2006–34). In approving the listing 

and trading of U.S. dollar-settled FCOs on the 

British pound and the Euro, the approval order 

stated that the listing and trading of additional U.S. 

dollar-settled FCOs on other foreign currencies will 

require the Exchange to file additional proposed 

rule changes on Form 19b–4. 

9See Securities Exchange Act Release No. 56034 

(July 10, 2007), 72 FR 38853 (July 16, 2007) (SR– 

Phlx–2007–34). 

10See Securities Exchange Act Release No. 49832 

(June 8, 2004), 69 FR 33442 (June 15, 2004) (SR– 

Phlx–2003–59)(approving Phlx XL). See also 

Release No. 59995 (May 28, 2009) SR–Phlx–2009– 

32 (approving Phlx XL II). The Exchange is rolling 

out a new trading platform. 

11Physical delivery options, so named because 

settlement could involve delivery of the underlying 

currency (as opposed to cash for U.S. dollar-settled 

Continued 

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–2009–033 and 

should be submitted on or before June 

29, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–13252 Filed 6–5–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60021; File No. SR–Phlx– 

2009–40] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing of Proposed Rule Change as 

Modified by Amendment No. 1 Thereto 

Relating to Listing and Trading New 

Currencies 

June 1, 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 May 8, 

2009, 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 

Exchange filed Amendment No. 1 to the 

proposal on May 29, 2009.3 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 proposes to amend 

Phlx rules to: (1) List and trade U.S. 

dollar-settled foreign currency options 

on the Brazilian real, Chinese yuan,4

Danish krone, New Zealand dollar, 

Mexican peso, Norwegian krone, 

Russian ruble, South African rand, 

South Korean won, and Swedish krona 

(the listed currencies are together 

known as the ‘‘New Currencies’’) 5; (2) 

clarify definitions regarding the 

Currencies, (3) establish position and 

exercise limits for the Currencies; (4) 

clarify the uniform pricing convention 

(methodology) for all Currencies; and (5) 

delete obsolete and out of use references 

regarding foreign currency products and 

processes. 

The Exchange also proposes to amend 

Phlx Option Floor Procedure Advices 

(‘‘OFPAs’’ or ‘‘Advices’’) to harmonize 

Exchange Advices and rules. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

nasdaqomxphlx.cchwallstreet.com/ 

NASDAQOMXPHLX/Filings/, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant 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 amend Phlx rules 6 to: 

Expand the Exchange’s current product 

offering to include options on the New 

Currencies; clarify certain existing 

Exchange rules relating to Currencies; 

establish position limits for Currencies; 

and clarify the uniform pricing 

convention (methodology) for options 

on Currencies. In doing so, the 

Exchange will delete obsolete and out of 

use references regarding foreign 

currency products and processes. The 

purpose is also to conform existing 

Advices 7 to the rules as amended. 

Background 

In January 2007, the Exchange listed 

and began trading U.S. dollar-settled 

FCOs on the British pound and the 

Euro.8 In July 2007, the Exchange listed 

and began trading U.S. dollar-settled 

FCOs on the Australian dollar, Canadian 

dollar, Swiss franc, and Japanese yen.9

U.S. dollar-settled FCOs continue being 

traded electronically over the 

Exchange’s options trading platform, 

Phlx XL.10 Additionally, through the 

spring of 2007 the Exchange traded, 

through open outcry, physical delivery 

options on foreign currencies.11


cprice-sewell on PRODPC61 with NOTICES