Document ID: SEC-2007-1789-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Financial Industry Regulatory Authority, Inc.
Posted Date: 2007-12-31T05:00Z

[Federal Register: December 31, 2007 (Volume 72, Number 249)]
[Notices]               
[Page 74382-74383]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31de07-101]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57033; File No. SR-FINRA-2007-036]

 
Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing of Proposed Rule Change to Make 
Technical Amendments to the Uniform Application for Securities Industry 
Registration or Transfer (``Form U4''), the Uniform Termination Notice 
for Securities Industry Registration (``Form U5'') and the Uniform 
Branch Office Form (``Form BR'')

December 21, 2007.
    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 18, 2007, Financial Industry Regulatory Authority, Inc. 
(``FINRA'') (f/k/a National Association of Securities Dealers, Inc. 
(``NASD'')) filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared substantially by FINRA. FINRA 
filed the proposed rule change pursuant to Section 19(b)(3)(A) of the 
Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders it effective 
upon filing with 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\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 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 amendments to the Uniform 
Application for Securities Industry Registration or Transfer (``Form 
U4''), the Uniform Termination Notice for Securities Industry 
Registration (``Form U5'') and the Uniform Branch Office Form (``Form 
BR'') (hereinafter referred to as ``Forms'').\5\ The technical 
amendments, among other things, reflect NASD's change in corporate name 
to FINRA and update the current list of self-regulatory organizations 
(``SROs''), government jurisdictions and registration categories listed 
on the Forms. The proposed revised Forms are available at FINRA, and 
the Commission's Public Reference Room. FINRA is not proposing any 
changes to rule text with the proposed rule change.
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    \5\ Representatives of broker-dealers, investment advisers or 
issuers of securities must use the Form U4 to become registered in 
the appropriate jurisdictions and/or with appropriate SROs. The Form 
U5 is used to terminate the registration of an individual in the 
various SROs and jurisdictions. The Form BR is used by broker-
dealers and investment advisers for branch office registration, 
notification, closing or withdrawal.
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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
    The proposed rule change will make technical amendments to the 
Forms. First, the Forms will be amended to reflect changes in certain 
SRO names. In particular, references to NASD in the Forms will be 
replaced with references to FINRA, as appropriate.\6\ The SRO 
registration sections of the Forms U4 and U5 also will be amended to: 
(1) Add ``NQX,'' the acronym for the Nasdaq Stock Market LLC, which was 
approved by the Commission as a national securities exchange on January 
13, 2006; \7\ and (2) reflect the name change of the Pacific Exchange, 
Inc. to NYSE Arca, Inc. by replacing ``PCX'' with ``ARCA.'' \8\
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    \6\ FINRA was created on July 30, 2007 through the consolidation 
of NASD and the member regulation, enforcement and arbitration 
functions of NYSE Regulation.
    \7\ See Securities Exchange Act Release No. 53128 (January 13, 
2006), 71 FR 3550 (January 23, 2006).
    \8\ See Securities Exchange Act Release No. 53615 (April 7, 
2006), 71 FR 19226 (April 13, 2006) (File No. SR-PCX-2006-24) 
(Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change and Amendments No. 1 and 2 Thereto To Change the Names of the 
Pacific Exchange, Inc., PCX Equities, Inc., PCX Holdings, Inc., and 
the Archipelago Exchange, L.L.C.).
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    Second, FINRA is proposing to amend Section 5 and Section 5B of the 
Forms U4 and U5, respectively, to update the list of government 
jurisdictions participating through the Central Registration Depository 
(CRD[supreg]) to include the U.S. Virgin Islands, which joined the 
CRD[supreg] system as a participating jurisdiction earlier this year. 
FINRA also is making conforming changes to the definition of 
``jurisdiction'' to include the U.S. Virgin Islands. The SEC added the 
U.S. Virgin Islands as a jurisdiction on Forms BD and BDW in technical 
amendments to those forms in April 2007.\9\
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    \9\ See Securities Exchange Act Release No. 55643 (April 19, 
2007) 72 FR 20223 (April 24, 2007) (Technical Amendments to Form BD 
and Form BDW) (``Release''). In Footnote 6 of the Release, the SEC 
stated that adding the U.S. Virgin Islands to Forms BD and BDW will 
``facilitate the use of these forms by broker-dealers and would 
eliminate the need for separate paper filings of registration forms 
by broker-dealers in the United States Virgin Islands.'' Similarly, 
the proposed changes to the Forms will enable firms to register 
their associated persons electronically through CRD.
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    Finally, FINRA is proposing to update the list of examination and 
registration categories to include: (1) MM--Market Maker Authorized 
Trader--Options (S44); (2) OT--Authorized Trader; and

[[Page 74383]]

(3) MT--Market Maker Authorized Trader--Equities (S7).\10\ FINRA is 
proposing to remove the SF-Single Stock Futures (S43) registration 
category and the Series 43 examination option in Section 7 of Form U4 
and Section 5A of Form U5,\11\ as the category and examination were not 
developed by FINRA (then NASD); continuing education requirements have 
been deemed sufficient for registrants engaging in securities futures 
business.\12\ FINRA also is proposing to remove the Series 12 
examination, which was rescinded by the NYSE in May 2007.\13\
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    \10\ See Securities Exchange Act Release No. 55446 (March 12, 
2007), 72 FR 13155 (March 20, 2007) (SR-NYSEArca-2006-51) (Order 
Granting Approval of Propose Rule Change Relating to Amendments to 
Registration Rules of NYSE Arca, Inc.).
    \11\ Commission corrected reference to where the removal of the 
reference to SF-Single Stock Futures (S43) registration category 
occurs in Form U5.
    \12\ See Securities Exchange Act Release No. 48932 (December 16, 
2003), 68 FR 74674 (December 24, 2003) (SR-NASD-2003-186) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change by the 
National Association of Securities Dealers, Inc. Relating to the 
Administration of Qualification Examinations on Security Futures). 
See also Securities Exchange Act Release No. 54617 (October 17, 
2006), 71 FR 62498 (October 25, 2006) (SR-NASD-2006-118) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change to Extend 
the Date by Which Eligible Registrants Must Complete Firm--Element 
Continuing Education to Qualify to Engage in a Securities Futures 
Business).
    \13\ See Securities Exchange Act Release No. 55670 (April 25, 
2007), 72 FR 24350 (May 2, 2007) (SR-NYSE-2007-41) (Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change to Eliminate the 
Securities Manager Examination (Series 12)).
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    FINRA is filing this proposed rule change for immediate 
effectiveness. FINRA will announce the effective date of the proposed 
rule change in a Regulatory Notice. FINRA anticipates that the amended 
Forms will be available in February 2008.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\14\ 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 general, to protect investors and the 
public interest. FINRA is amending the Forms to, among other things, 
reflect its new corporate name and update the currently out-of-date 
list of SROs, government jurisdictions and registration categories 
listed in the Forms.
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    \14\ 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 impose 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants or Others

    FINRA has neither solicited nor received written comments on the 
proposed rule change.

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, if 
consistent with the protection of investors and public interest, it has 
become effective pursuant to Section 19(b)(3)(A) of the Act \15\ and 
Rule 19b-4(f)(6) thereunder.\16\
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    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 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 may summarily abrogate 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.

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-FINRA-2007-036 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-FINRA-2007-036. 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 inspection 
and copying in the Commission's Public Reference Room, 100 F Street, 
NE., Washington, DC 20549, 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 office of FINRA. 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. All 
submissions should refer to File Number SR-FINRA-2007-036 and should be 
submitted on or before January 22, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E7-25370 Filed 12-28-07; 8:45 am]

BILLING CODE 8011-01-P