Document ID: SEC-2011-0719-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX BX, Inc.
Posted Date: 2011-05-18T04:00Z

[Federal Register Volume 76, Number 96 (Wednesday, May 18, 2011)]
[Notices]
[Pages 28838-28840]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-12199]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64484; File No. SR-BX-2011-026]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend BX 
Rule 3011 To Reflect Changes to a Corresponding FINRA Rule

May 13, 2011.
    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 9, 2011, NASDAQ OMX BX, Inc. (the ``Exchange'' or ``BX''), filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by BX. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    BX is filing with the Securities and Exchange Commission 
(``Commission'') a proposed rule change to amend BX Rule 3011 to 
reflect recent changes to a corresponding rule of the Financial 
Industry Regulatory Authority (``FINRA''). The text of the proposed 
rule change is available at nasdaqomxbx.cchwallstreet.com [sic], at the 
Exchange's principal office, 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, BX 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. BX has prepared

[[Page 28839]]

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
    Many of BX's rules are based on rules of FINRA (formerly the 
National Association of Securities Dealers (``NASD'')). During 2008, 
FINRA embarked on an extended process of moving rules formerly 
designated as ``NASD Rules'' into a consolidated FINRA rulebook. In 
most cases, FINRA has renumbered these rules, and in some cases has 
substantively amended them. Accordingly, BX has also been modifying its 
rulebook to ensure that BX rules corresponding to FINRA/NASD rules 
continue to mirror them as closely as practicable. In some cases, it 
will not be possible for the rule numbers of BX rules to mirror 
corresponding FINRA rules, because existing or planned BX rules make 
use of those numbers. However, wherever possible, BX plans to update 
its rules to reflect changes to corresponding FINRA rules.
    This filing addresses BX Rule 3011 pertaining to anti-money 
laundering compliance programs. In SR-FINRA-2009-039,\3\ FINRA 
redesignated FINRA Rule 3011 as FINRA Rule 3310 and made substantive 
amendments to strengthen and simplify the rule. Specifically, FINRA 
adopted: (1) NASD Rule 3011 (AML Compliance Program) as FINRA Rule 3310 
(AML Compliance Program), without substantive change; (2) NASD IM-3011-
1 (Independent Testing Requirements) as supplementary material to 
proposed FINRA Rule 3310, subject to certain amendments; and (3) NASD 
IM-3011-2 (Review of AML Compliance Person Information) as 
supplementary material to proposed FINRA Rule 3310, without substantive 
change.
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    \3\ Securities Exchange Act Release No. 60645 (September 9, 
2009) [sic], 74 FR 47630 (September 16, 2009) (SR-FINRA-2009-039).
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    Because BX's rule references the NASD rule and will now reference 
the FINRA rule, BX is, in effect, adopting the new FINRA rule in full. 
BX Rule 3011 will now refer to FINRA Rule 3310, BX's IM-3011-1 will now 
be BX Rule 3011.01 and reference FINRA Rule 3310.01, and BX's IM-3011-2 
will now be BX Rule 3011.02.\4\
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    \4\ BX Rule 3011 will remain numbered as Rule 3011, rather than 
Rule 3310, like FINRA's rule, because BX already has a different 
rule operating as BX Rule 3310. BX is also deleting obsolete 
references in Rule 3011 and 3011.01 regarding FINRA being in the 
process of consolidating certain NASD rules into a new FINRA 
rulebook.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\5\ in general, and with 
Sections 6(b)(5) of the Act,\6\ in particular, in that the proposal is 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest. The proposed 
changes will conform BX Rule 3011 to recent changes made to a 
corresponding FINRA rule in order to promote application of consistent 
regulatory standards.
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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    BX 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 amended.

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 after the date of the filing, 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) \8\ 
thereunder.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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.
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    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:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-BX-2011-026 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-BX-2011-026. 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 Web site 
viewing and printing in the Commission's Public Reference Room 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 offices 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.

[[Page 28840]]

    All submissions should refer to File Number SR-BX-2011-026, and 
should be submitted on or before June 8, 2011.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-12199 Filed 5-17-11; 8:45 am]
BILLING CODE 8011-01-P