Document ID: SEC-2009-1232-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Approving Proposed Rule Change Relating to Transaction-Related Charges for Trade Reporting to the OTC Reporting Facility
Posted Date: 2009-08-28T04:00Z

[Federal Register: August 28, 2009 (Volume 74, Number 166)]
[Notices]               
[Page 44414-44415]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28au09-91]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60560; File No. SR-FINRA-2009-045]

 
Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Order Approving Proposed Rule Change Relating to 
Transaction-Related Charges for Trade Reporting to the OTC Reporting 
Facility

August 21, 2009.
    On July 1, 2009, 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 amend Rule 7710, OTC Reporting Facility. The 
proposed rule change clarifies the application of transaction-related 
charges for trade reporting to the OTC Reporting Facility (``ORF'') by 
deleting the reference to ``OTC Equity Security'' in Rule 7710 to 
clarify that, from March 5, 2007, until June 17, 2009,\3\ the trade 
reporting charges imposed by the rule applied to trade reports in any 
security sent to the ORF that were not subject to comparison through 
the ORF. This change to the rule is necessary to correct an inadvertent 
mistake made in SR-NASD-2007-018.\4\ In SR-NASD-2007-018, FINRA deleted 
a catch-all phrase from Rule 7010(g) which had the effect of excluding 
from the rule securities such as PORTAL equity securities, which are 
specifically excluded from the definition of OTC Equity Security. On 
June 17, 2009, FINRA filed SR-FINRA-2009-043 \5\ to correct this 
mistake prospectively. The change made in the instant rule filing 
corrects the mistake for the period from March 5, 2007 until June 17, 
2009, the date of effectiveness of SR-FINRA-2009-043.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ March 5, 2007, is the effective date for SR-NASD-2007-018 
infra and June 17, 2009 is the effective date for SR-FINRA-2009-043.
    \4\ See Securities Exchange Act Release No. 55538 (March 27, 
2007), 72 FR 15924 (April 3, 2007).
    \5\ See Securities Exchange Act Release No. 60168 (June 24, 
2009), 74 FR 31471 (July 1, 2009).
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    The proposed rule change was published for comment in the Federal 
Register on July 13, 2009.\6\ The Commission received no comments on 
the proposal.
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    \6\ See Securities Exchange Act Release No. 60239 (July 2, 
2009), 74 FR 33492.
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    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.\7\ In 
particular, the Commission finds that the proposed rule change is 
consistent with the provisions of Section 15A(b)(6) of the Act,\8\ 
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. The Commission believes that the 
proposed rule change does not raise any novel issues; it is merely 
designed to accurately reflect FINRA's intent when it filed SR-NASD-
2007-018,\9\ as well as its members' understanding of the coverage of 
the rule. The proposal clarifies that the charges that FINRA assessed 
with respect to transactions that were reported to the ORF from March 
5, 2007, until June 17, 2009 are consistent with

[[Page 44415]]

FINRA's intent when it filed SR-NASD-2007-018.
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    \7\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78o-3(b)(6).
    \9\ See footnote 4, supra.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-FINRA-2009-045) be, and it 
hereby is, approved.
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    \10\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-20783 Filed 8-27-09; 8:45 am]

BILLING CODE 8010-01-P