Document ID: SEC-2014-0376-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Financial Industry Regulatory Authority, Inc.
Posted Date: 2014-03-06T05:00Z

[Federal Register Volume 79, Number 44 (Thursday, March 6, 2014)]
[Notices]
[Pages 12712-12713]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-04922]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71636; File No. SR-FINRA-2013-036]

Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Designation of Longer Period for Commission 
Action on Proceedings To Determine Whether To Approve or Disapprove a 
Proposed Rule Change, as Modified by Amendment No. 1, Relating to Wash 
Sale Transactions and FINRA Rule 5210 (Publication of Transactions and 
Quotations)

February 28, 2014.
    On August 15, 2013, 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 add Supplementary Material .02 to FINRA Rule 
5210 (Publication of Transactions and Quotations) to emphasize that 
wash sale transactions are generally non-bona fide transactions and 
that members have an obligation to have policies and procedures in 
place to review their trading activity for, and prevent, wash sale 
transactions. The proposed rule change was published for comment in the 
Federal Register on September 4, 2013.\3\ The Commission received five 
comment letters on the proposed rule change.\4\ On October 4, 2013, the 
Commission extended the time period for Commission action to December 
3, 2013.\5\ On December 2, 2013, FINRA submitted a response to the 
comment letters \6\ and filed Amendment No. 1 to the proposed rule 
change. On December 3, 2013, the Commission published for comment both 
Amendment No. 1 and an order instituting proceedings under Section 
19(b)(2)(B) of the Act \7\ to determine whether to approve or 
disapprove the proposed rule change, as modified by Amendment No. 1.\8\ 
The Commission received three comment letters on the Notice of Filing 
of Amendment No. 1 and Order Instituting Proceedings.\9\ On February 
24, 2014, FINRA submitted a response to the comment letters.\10\
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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. 70276 (August 28, 
2013), 78 FR 54502 (``Notice'').
    \4\ See letter from Anonymous to Elizabeth M. Murphy, Secretary, 
Commission, dated September 9, 2013 (``Anonymous Letter''); letter 
from William A. Jacobson, Clinical Professor of Law, and Director, 
Cornell Securities Law Clinic, and Jimin Lee, Cornell University Law 
School, to Elizabeth M. Murphy, Secretary, Commission, dated 
September 25, 2013 (``Cornell Letter''); letter from Stuart J. 
Kaswell, Executive Vice President, Managing Director and General 
Counsel, Managed Funds Association, to Elizabeth M. Murphy, 
Secretary, Commission, dated September 25, 2013 (``MFA Letter''); 
letter from Manisha Kimmel, Executive Director, Financial Industry 
Forum, to Elizabeth M. Murphy, Secretary, Commission, dated 
September 25, 2013 (``FIF Letter''); and letter from Theodore R. 
Lazo, Managing Director and Associate General Counsel, Securities 
Industry and Financial Markets Association, to Elizabeth M. Murphy, 
Secretary, Commission, dated October 4, 2013 (``SIFMA Letter'').
    \5\ See Securities Exchange Act Release No. 70613 (October 4, 
2013), 78 FR 62784 (October 22, 2013).
    \6\ See letter from Brant K. Brown, Associate General Counsel, 
FINRA, to Elizabeth M. Murphy, Secretary, Commission, dated December 
2, 2013 (``FINRA Response 1'').
    \7\ 15 U.S.C. 78s(b)(2)(B).
    \8\ See Securities Exchange Act Release No. 70966 (December 3, 
2013), 78 FR 73900 (December 9, 2013) (``Notice of Filing of 
Amendment No. 1 and Order Instituting Proceedings'').
    \9\ See letter from Manisha Kimmel, Executive Director, 
Financial Industry Forum, to Elizabeth M. Murphy, Secretary, 
Commission, dated December 23, 2013 (``FIF Letter 2''); letter from 
Mary Ann Burns, Chief Operating Officer, Futures Industry 
Association, to Elizabeth M. Murphy, Secretary, Commission, dated 
January 6, 2014 (``FIA PTG Letter''); and letter from Theodore R. 
Lazo, Managing Director and Associate General Counsel, Securities 
Industry and Financial Markets Association, to Elizabeth M. Murphy, 
Secretary, Commission, dated January 13, 2014 (``SIFMA Letter 2'').
    \10\ See letter from Brant K. Brown, Associate General Counsel, 
FINRA, to Elizabeth M. Murphy, Secretary, Commission, dated February 
24, 2014 (``FINRA Response 2'').
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    Section 19(b)(2)(B)(ii)(I) of the Act provides that, after 
initiating disapproval proceedings, the Commission shall issue an order 
approving or disapproving a proposed rule change not later than 180 
days after the date of publication of notice of the filing of the 
proposed rule change.\11\ The Commission may extend the period for 
issuing an order approving or disapproving the proposed rule change, 
however, by not more than 60 days if the Commission determines that a 
longer period is appropriate and publishes the reasons for the

[[Page 12713]]

determination.\12\ The proposed rule change was published for comment 
in the Federal Register on September 4, 2013. The 180th day after that 
publication is March 3, 2014.
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    \11\ 15 U.S.C. 78s(b)(2)(B)(ii)(I).
    \12\ 15 U.S.C. 78s(b)(2)(B)(ii)(II).
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    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed 
rule change, as amended, so that it has sufficient time to consider the 
amended proposal, the issues raised in the comment letters on the 
amended proposal, and FINRA's response to the comments.
    Accordingly, the Commission, pursuant to Section 
19(b)(2)(B)(ii)(II) of the Act,\13\ designates May 2, 2014, as the date 
by which the Commission should either approve or disapprove the 
proposed rule change (SR-FINRA-2013-036).
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    \13\ Id.
    \14\ 17 CFR 200.30-3(a)(57).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-04922 Filed 3-5-14; 8:45 am]
BILLING CODE 8011-01-P