Document ID: SEC-2009-1326-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Approving Proposed Rule Change To Adopt FINRA Rule 5230 (Payments Involving Publications That Influence the Market Price of a Security) in the Consolidated FINRA Rulebook
Posted Date: 2009-09-17T04:00Z

[Federal Register: September 17, 2009 (Volume 74, Number 179)]
[Notices]
[Page 47837-47838]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17se09-79]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60648; File No. SR-FINRA-2009-048]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Order Approving Proposed Rule Change To Adopt FINRA
Rule 5230 (Payments Involving Publications That Influence the Market
Price of a Security) in the Consolidated FINRA Rulebook

September 10, 2009.
    On July 21, 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 amend the By-Laws of FINRA Regulation, Inc.
(``FINRA Regulation'') to adopt NASD Rule 3330 (Payment Designed to
Influence Market Prices, Other than Paid Advertising) as FINRA Rule
5230 in the consolidated FINRA rulebook, with several changes to
clarify

[[Page 47838]]

the scope of the rule. The proposed rule change was published for
comment in the Federal Register on August 7, 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. 60422 (August 3,
2009), 74 FR 39725.
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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. The Commission believes that the
proposed rule change should continue to protect investors and promote
the maintenance of fair, orderly and efficient markets by modernizing
and clarifying the regulations that apply when payments are made in
connection with the publication or circulation of media that could have
an effect on the market price of any security. The Commission notes
that the types of media that could have an effect on the market price
of a security have changed since NASD Rule 3330 was last amended.
Therefore, the updating of the list of media in proposed FINRA Rule
5230 will modernize the regulation.
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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 also notes that payments for the publication of
information relating to securities are permitted in certain
circumstances under Section 17(b) of the Securities Act and under NASD
Rule 2711(h)(13). Therefore, the Commission believes that the amendment
to the rule will clarify that proposed FINRA Rule 5230 is consistent
with these and other regulations where such payments are explicitly
permitted.
    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\6\ that the proposed rule change (SR-FINRA-2009-048) be, and it
hereby is, approved.
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    \6\ 15 U.S.C. 78s(b)(2)

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12)
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-22371 Filed 9-16-09; 8:45 am]

BILLING CODE 8010-01-P