Document ID: SEC-2009-1497-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Approving Proposed Rule Change To Adopt FINRA Rules 5210 (Publication of Transactions and Quotations) and 5220 (Offers at Stated Prices) Into the Consolidated Rulebook
Posted Date: 2009-10-22T04:00Z

[Federal Register: October 22, 2009 (Volume 74, Number 203)]
[Notices]               
[Page 54616-54617]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22oc09-106]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60835; File No. SR-FINRA-2009-055]

 
Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Order Approving Proposed Rule Change To Adopt FINRA 
Rules 5210 (Publication of Transactions and Quotations) and 5220 
(Offers at Stated Prices) Into the Consolidated Rulebook

October 16, 2009.
    On August 18, 2009, the Financial Industry Regulatory Authority, 
Inc. (``FINRA'') (f/k/a National Association of Securities Dealers, 
Inc. (``NASD'')) 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 adopt NASD Rule 3310 (Publication of 
Transactions and Quotations), NASD Rule 3320 (Offers at Stated Prices), 
IM-3310 (Manipulative and Deceptive Quotations) and IM-3320 (firmness 
of Quotations) as FINRA rules in the consolidated FINRA rulebook 
without material changes. The proposed rule change would combine NASD 
Rule 3310 and IM-3310 into FINRA Rule 5210 and would combine NASD Rule 
3320 and IM-3320 into FINRA Rule 5220 in the consolidated FINRA 
rulebook. The proposed rule change was published for comment in the 
Federal Register on September 11, 2009.\3\ The Commission received no 
comments on the proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 60613 (September 2, 
2009), 74 FR 46814.
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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.\4\ In 
particular, the Commission finds that the proposed rule change is 
consistent with the provisions of Section 15A(b)(6) of the Act,\5\ 
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.
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    \4\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition and capital 
formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78o-3(b)(6).
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    The Commission believes that the proposed rule change is designed 
to protect investors and promote the maintenance of fair, orderly and 
efficient markets by prohibiting a member from publishing a report of 
any transaction unless the member believes that it was a bona fide 
purchase or sale of the security and from ``backing away'' from its 
quotations. In approving the proposed rule change, the Commission notes 
that FINRA is adopting NASD Rule 3310 (Publication of Transactions and 
Quotations), NASD Rule 3320 (Offers at Stated Prices), IM-3310 
(Manipulative and Deceptive Quotations) and IM-3320 (firmness of 
Quotations) as FINRA rules in the consolidated FINRA rulebook without 
material changes. The Commission also notes FINRA's representation that 
it will remind its members of their obligation to have in place a 
supervisory system and written procedures reasonably designed to ensure 
the accuracy and integrity of information entered into order-routing 
execution systems, as further addressed in its Notice to Members 04-66, 
in a regulatory notice announcing the approval of the proposed rule 
change.\6\
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    \6\ See e-mail from Racquel L. Russell, Assistant General 
Counsel, FINRA, to Mia Zur, Special Counsel, and Steve Varholik, 
Special Counsel, Division of Trading and Markets, Commission, 
October 13, 2009.

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[[Page 54617]]

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-FINRA-2009-055) be, and it 
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-25430 Filed 10-21-09; 8:45 am]

BILLING CODE 8011-01-P