Document ID: SEC-2010-0115-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Financial Industry Regulatory Authority, Inc.
Posted Date: 2010-01-22T05:00Z

[Federal Register: January 22, 2010 (Volume 75, Number 14)]
[Notices]               
[Page 3772-3773]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22ja10-94]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61359; File No. SR-FINRA-2009-082]

 
Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Order Approving a Proposed Rule Change Relating To 
Reporting of Trade Cancellations to FINRA

January 14, 2010.
    On November 24, 2009, the Financial Industry Regulatory Authority, 
Inc. (``FINRA'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to: (1) Amend FINRA trade reporting rules to 
permit members to report trade cancellations after 5:15 p.m. Eastern 
Time on the trade date to the FINRA/Nasdaq Trade Reporting Facility 
(``FINRA/Nasdaq TRF'') and the OTC Reporting Facility (``ORF''); \3\ 
and (2) make certain conforming changes to the rules relating to the 
submission of trade cancellations to the Alternative Display Facility 
(``ADF'').\4\ Notice of the proposed rule change was published for 
comment in the Federal Register on December 10, 2009.\5\ The Commission 
received no comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ This change will allow members to submit reports of trade 
cancellations on the trade date until the close of the facilities at 
8 p.m. Previously, FINRA rules prohibited members from reporting 
trade cancellations after 5:15 p.m. on the trade date for these two 
reporting facilities.
    \4\ Among other changes, the proposed amendments to Rule 
6282(j)(2) provide that if a normal market hours trade is cancelled 
during market hours on trade date, the cancellation must be reported 
within 90 seconds.
    \5\ See Securities Exchange Act Release No. 61105 (December 3, 
2009), 74 FR 65578.
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    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities 
association.\6\ In particular, the Commission finds that the proposed 
rule change is consistent with the requirements of Section 15A(b)(6) of 
the Act,\7\ which requires, among other things, that FINRA's rules be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, and, in

[[Page 3773]]

general, to protect investors and the public interest.
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    \6\ 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).
    \7\ 15 U.S.C. 78o-3(b)(6).
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    The proposed amendments are identical to the current rules relating 
to the FINRA/NYSE Trade Reporting Facility (``FINRA/NYSE TRF'') and 
would make FINRA rules governing the submission of trade cancellations 
consistent across the ``FINRA Facilities.'' \8\ The Commission believes 
such consistency should enhance market transparency and eliminate 
systematically imposed delays in the reporting of trade cancellations 
to the FINRA/Nasdaq TRF and ORF.
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    \8\ The ADF, FINRA/Nasdaq TRF, FINRA/NYSE TRF and ORF are 
collectively referred to herein as the ``FINRA Facilities.''
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    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (SR-FINRA-2009-082), be and hereby is 
approved.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-1143 Filed 1-21-10; 8:45 am]
BILLING CODE 8011-01-P