Document ID: SEC-2019-0986-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Financial Industry Regulatory Authority, Inc.
Posted Date: 2019-07-12T04:00Z

[Federal Register Volume 84, Number 134 (Friday, July 12, 2019)]
[Notices]
[Pages 33299-33300]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14814]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86328; File No. SR-FINRA-2019-018]

Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Make a Technical Correction and Other Non-
Substantive Changes to FINRA Rules

July 8, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice 
is hereby given that on June 27, 2019, 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 by 
FINRA. 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.
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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 and other non-substantive 
changes within FINRA rules.
    The text of the proposed rule change is available on FINRA's 
website 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
    On April 10, 2019, the SEC announced the immediate effectiveness of 
the adoption of the remaining legacy NASD rules as FINRA rules in the 
consolidated FINRA rulebook and the remaining Incorporated NYSE Rules 
and Incorporated NYSE Rule Interpretations in the consolidated FINRA 
rulebook as a separate Temporary Dual FINRA-NYSE Member Rules 
Series.\3\ Among other things, the rule change, File No. SR-FINRA-2019-
009, was intended to move, without any substantive changes, specified 
Incorporated NYSE Rules, including their supplementary materials, to 
the Temporary Dual FINRA-NYSE Member Rules Series.\4\ These rules now 
bear a ``T'' modifier after the rule and interpretation number to 
denote their placement in the Temporary Dual FINRA-NYSE Member Rules 
Series. In File No. SR-FINRA-2019-009, Supplementary Material .10 
(Exceptions to Rule 409(b)) under Incorporated NYSE Rule 409 
(Statements of Accounts to Customers) was inadvertently omitted from 
the set of Incorporated NYSE Rules described in the rule change.\5\ 
Neither Exhibit 4 nor Exhibit 5 to File No. SR-FINRA-2019-009 included 
this supplementary material as rule text. Consequently, Supplementary 
Material .10 to Incorporated NYSE Rule 409 does not appear in Temporary 
Dual FINRA-NYSE Rule 409T as was originally intended. The proposed rule 
change would correct this technical error by restoring Supplementary 
Material .10 from Incorporated NYSE Rule 409 to Temporary Dual FINRA-
NYSE Rule 409T.
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    \3\ See Securities Exchange Act Release No. 85589 (April 10, 
2019), 84 FR 15646 (April 16, 2019) (Notice of Filing and Immediate 
Effectiveness of File No. SR-FINRA-2019-009).
    \4\ File No. SR-FINRA-2019-009 specified some Incorporated NYSE 
Rule definitions and Incorporated NYSE Rule 375 and the related 
Interpretation to be deleted. Some of the then existing set of 
Incorporated NYSE Rules that also had supplementary materials and 
were moved to the Temporary Dual FINRA-NYSE Member Rules Series 
included: NYSE Rule 311T (Formation and Approval of Member 
Organization); NYSE Rule 313T (Submission of Partnership Articles--
Submission of Corporate Documents); NYSE Rule 321T (Formation or 
Acquisition of Subsidiaries); NYSE Rule 408T (Discretionary Power in 
Customers' Accounts); and NYSE Rule 416T (Questionnaires and 
Reports).
    \5\ See supra note 4. See also retired Incorporated NYSE Rule 
409.10 located at: http://finra.complinet.com/en/display/display_main.html?rbid=2403&record_id=13957. Retired Incorporated 
NYSE Rule 409.10 includes a reference to ``[] 2409],'' which FINRA 
is proposing to eliminate on the basis that the cross-reference is 
obsolete.
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    In addition, the proposed rule change would update a rule reference 
in FINRA CAT, LLC Delegation Plan to clarify that the SEC Rule 613 
referenced in the Delegation Plan refers to Rule 613 of SEC Regulation 
NMS and to reflect FINRA Manual style convention changes. The FINRA 
CAT, LLC Delegation Plan was filed for immediate effectiveness on April 
24, 2019.\6\
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    \6\ See Securities Exchange Act Release No. 85764 (May 2, 2019), 
84 FR 20173 (May 8, 2019) (Notice of Filing and Immediate 
Effectiveness of File No. SR-FINRA-2019-015).
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    FINRA has filed the proposed rule change for immediate 
effectiveness and has requested that the SEC waive the requirement that 
the proposed rule change not become operative for 30 days after the 
date of the filing, so FINRA can implement the proposed rule change 
immediately.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\7\ 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 believes that the proposed rule change will 
provide greater clarity to members and the public regarding FINRA rules 
by restoring the text of Incorporated NYSE Rule 409.10 to the 
consolidated FINRA rulebook as Temporary Dual FINRA-NYSE Rule 409T.10 
and by making technical updates to FINRA CAT, LLC Delegation Plan.
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    \7\ 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. The proposed rule change brings 
clarity and consistency to FINRA rules without adding any burden on 
firms.

[[Page 33300]]

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 and Rule 19b-
4(f)(6) thereunder.\8\
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    \8\ In addition, Rule 19b-4(f)(6)(iii) requires a self-
regulatory organization to give the Commission written notice of its 
intent to file the proposed rule change at least five business days 
prior to the date of filing of the proposed rule change, or such 
shorter time as designated by the Commission. FINRA has satisfied 
this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally 
does not become operative for 30 days after the date of the filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\10\ the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. In its filing with the 
Commission, FINRA has asked the Commission to waive the 30-day 
operative delay to allow FINRA to immediately implement the proposed 
conforming and corrective changes, including restoring the text of 
Incorporated NYSE Rule 409.10 to the consolidated FINRA rulebook as 
Temporary Dual FINRA-NYSE Rule 409T.10. The Commission notes that FINRA 
has stated that the proposed rule change is non-substantive in that it 
would correct a technical error and update a rule reference. For this 
reason, the Commission believes that waiver of the 30-day operative 
delay is consistent with the protection of investors and the public 
interest and hereby waives the 30-day operative delay and designates 
the proposed rule change operative upon filing.\11\
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    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ For purposes only of waiving the operative delay, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
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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 email to rule-comments@sec.gov. Please include 
File Number SR-FINRA-2019-018 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2019-018. This 
file number should be included on the subject line if email 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 website (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 website 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. Persons submitting comments are cautioned that 
we do not redact or edit personal identifying information from comment 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
FINRA-2019-018 and should be submitted on or before August 2, 2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-14814 Filed 7-11-19; 8:45 am]
 BILLING CODE 8011-01-P