Document ID: SEC-2018-0044-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Financial Industry Regulatory Authority, Inc.
Posted Date: 2018-01-10T05:00Z

[Federal Register Volume 83, Number 7 (Wednesday, January 10, 2018)]
[Notices]
[Pages 1279-1280]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00213]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82441; File No. SR-FINRA-2017-036]

Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Make Technical and Other Non-Substantive 
Changes Within FINRA Rules

January 4, 2018.
    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 December 22, 2017, 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, 
II, and III 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    FINRA is proposing to make technical and other non-substantive 
changes within FINRA rules.
    The text of the proposed rule change is available on FINRA's 
website 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
    On September 13, 2016, the SEC approved changes to FINRA Rules 2210 
(Communications with the Public), 2213 (Requirements for the Use of 
Bond Mutual Fund Volatility Ratings), and 2214 (Requirements for the 
Use of Investment Analysis Tools) that, among other things, eliminated 
the filing requirements for investment analysis tool report templates 
and retail communications concerning such tools and instead requires 
members to provide FINRA staff with access to investment analysis tools 
upon request.\4\ The implementation date for the changes was January 9, 
2017.\5\
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    \4\ See Securities Exchange Act Release No. 78823 (September 13, 
2016), 81 FR 64240 (September 19, 2016) (Order Approving File No. 
SR-FINRA-2016-018).
    \5\ See Regulatory Notice 16-41 (October 2016).
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    The proposed rule change would delete FINRA Rule 2214.03 to 
eliminate the requirement to re-file a written-report template or 
retail communication concerning an investment analysis tool, and 
conform the rule to changes approved in SR-FINRA-2016-018. In addition, 
the proposed rule change would renumber FINRA Rule 2214.04 through 
2214.07 as 2214.03 through 2214.06, accordingly.
    Also, the proposed rule change would make technical changes to 
FINRA Rule 7730 (Trade Reporting and Compliance Engine (TRACE)). On 
July 11, 2017, the SEC approved SR-FINRA-2017-015, which added the 
definition of ``End-of-Day TRACE Transaction File'' to Rule 7730 as 
paragraph (g)(6). On August 4, 2017, the SEC approved SR-FINRA-2017-
021, which added ``TRACE Security Activity Report'' also as paragraph 
(g)(6). The proposed rule change would redesignate Rule 7730(g)(6) 
(TRACE Security Activity Report) as 7730(g)(7) to avoid duplication.\6\
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    \6\ See Securities Exchange Act Release No. 81114 (July 11, 
2017), 82 FR 32728 (July 17, 2017) (Order Approving File No. SR-
FINRA-2017-015) and Securities Exchange Act Release No. 81318 
(August 4, 2017), 82 FR 37484 (August 10, 2017) (Order Approving 
File No. SR-FINRA-2017-021).
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    Finally, the proposed rule change would update a reference in FINRA 
Rule 9217 (Violations Appropriate for Disposition Under Plan Pursuant 
to SEA Rule 19b-1(c)(2)) to reflect that FINRA Rule 7430 
(Synchronization of Member Business Clocks) has been renumbered as 
FINRA Rule 4590 (Synchronization of Member Business Clocks) to conform 
with SEC approval in SR-FINRA-2016-005.\7\
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    \7\ See Securities Exchange Act Release No. 77565 (April 8, 
2016), 81 FR 22136 (April 14, 2016) (Order Approving File No. SR-
FINRA-2016-005); see also Regulatory Notice 16-23 (July 2016).
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    FINRA has filed the proposed rule change for immediate 
effectiveness. The implementation date for the proposed changes to 
FINRA Rules 2214 and 9217 will be January 22, 2018. The implementation 
date for the proposed changes to FINRA Rule 7730 will be February 1, 
2018, to coincide with the implementation date of earlier changes to 
the rule.\8\
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    \8\ See Regulatory Notice 17-36 (November 2017).
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2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\9\ 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

[[Page 1280]]

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 by deleting the re-filing 
requirements in Rule 2214.03 to conform to changes approved in SR-
FINRA-2016-018 and by making technical updates in Rules 7730(g)(6) and 
9217.
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    \9\ 15 U.S.C. 78o-3(b)(6).
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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. The proposed rule change brings 
clarity and consistency to FINRA rules without adding any burden on 
firms.

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 \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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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 email to [email protected]. Please include 
File Number SR-FINRA-2017-036 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-FINRA-2017-036. 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 website (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 website 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 the filing also will be available for inspection 
and copying at the principal office of FINRA. All comments received 
will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-FINRA-2017-036, and should be submitted 
on or before January 31, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-00213 Filed 1-9-18; 8:45 am]
 BILLING CODE 8011-01-P