Document ID: SEC-2010-1555-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Financial Industry Regulatory Authority, Inc.
Posted Date: 2010-10-13T04:00Z

[Federal Register: October 13, 2010 (Volume 75, Number 197)]
[Notices]               
[Page 62901-62902]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13oc10-113]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63046; File No. SR-FINRA-2010-050]

 
 Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of 
Proposed Rule Change Relating to Online Filing of Arbitration Claims

October 5, 2010.
    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 September 27, 2010, the Financial Industry Regulatory Authority, 
Inc. (``FINRA'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I and II below, which Items have been prepared substantially by 
FINRA. FINRA has designated the proposed rule change as constituting a 
``non-controversial'' rule change under paragraph (f)(6) of Rule 19b-4 
under the Act,\3\ which renders the proposal effective upon receipt of 
this filing by 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\ 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 amend Rules 12302 and 13302 of the Customer 
and Industry Codes of Arbitration Procedure, respectively (``Codes'') 
to update the rules relating to online filing of arbitration claims.
    The text of the proposed rule change is available on FINRA's Web 
site at http://www.finra.org, at the principal office of FINRA and at 
the Commission's Public Reference Room.

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
    To initiate an arbitration claim at FINRA, a claimant files a 
signed and dated Submission Agreement, a Statement of Claim that 
specifies the relevant facts and remedies requested, and any additional 
documents supporting the Statement of Claim (``initial documents''). 
The claimant may file in hard copy, submitting enough copies of each of 
the initial documents for the Director, each arbitrator, and each other 
party. As an alternative, FINRA Rules 12302 and 13302 provide that a 
claimant may use the Online Arbitration Claim Filing system 
(``System'') to complete part of the claim filing process through the 
Internet. The rules state that the claimant completes a Claim 
Information Form online, and submits a Statement of Claim (along with 
supporting documents) electronically through the System. Once the Claim 
Information Form is complete, the System generates a FINRA Dispute 
Resolution Tracking Form (``Tracking Form'') for the claimant to 
reproduce. The claimant then files, in hard copy, the Tracking Form and 
any materials not submitted electronically. When a claimant files 
electronically, FINRA makes copies of the documents submitted through 
the System for the arbitrators and the other parties in the case.
    Recently, FINRA implemented programming enhancements that allow 
claimants to file all of the initial documents electronically if they 
file through the System. FINRA is proposing to make technical, non-
substantive amendments to Rules 12302 and 13302 to update the rule 
language to reflect that claimants may file all of the initial 
documents electronically.
    If the SEC approves the proposed rule change, FINRA would continue 
to permit claimants to file their claims in hard copy. The proposed 
rule change specifies that if a claimant does not elect to file 
electronically, the claimant would be required to file enough copies of 
the initial documents for the Director, each arbitrator and each other 
party.

[[Page 62902]]

The System's User Guide explains, in detail, the methods for filing a 
claim.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\4\ which requires, among 
other things, that the rules of a national securities association 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 believes that the 
proposed rule change will assist in the efficient administration of 
arbitrations by updating the relevant rule language to reflect that 
claimants may file all of the initial documents electronically through 
the System. FINRA believes these technical, non-substantive amendments 
will enhance the Codes by making them easier to understand and apply.
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    \4\ 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 result in 
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

    Written comments were neither solicited nor received.

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, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \5\ and Rule 19b-
4(f)(6) thereunder.\6\
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 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 summarily may temporarily suspend 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-2010-050 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-FINRA-2010-050. 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). Comments are also available for Web site viewing and 
printing 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-2010-050 and should be 
submitted on or before November 3, 2010.
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    \7\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-25625 Filed 10-12-10; 8:45 am]
BILLING CODE 8011-01-P