Document ID: SEC-2014-1799-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Financial Industry Regulatory Authority, Inc.
Posted Date: 2014-10-27T04:00Z

[Federal Register Volume 79, Number 207 (Monday, October 27, 2014)]
[Notices]
[Pages 63996-63997]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-25428]

[[Page 63996]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 73392; File No. SR-FINRA-2014-044]

Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of 
Proposed Rule Change To Revise the Implementation Date for the 
Supplemental Inventory Schedule Approved Pursuant to SR-FINRA-2014-025

October 21, 2014.
    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 October 10, 2014, the Financial Industry Regulatory Authority, Inc. 
(``FINRA'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change described in Items I and II, 
below, which Items have been substantially 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 revise the implementation date for the 
supplementary inventory schedule approved pursuant to SR-FINRA-2014-
025.
    The text of the proposed rule change is available on FINRA's Web 
site at http://www.finra.org, at FINRA's principal office, 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 
II.A., II.B., and II.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 September 23, 2014, the Commission approved FINRA's proposal to 
adopt the SIS pursuant to FINRA Rule 4524 (Supplemental FOCUS 
Information).\3\ In SR-FINRA-2014-025, FINRA stated that the proposed 
rule change will be effective upon Commission approval. In addition, 
FINRA stated it would announce the implementation date of the SIS in a 
Regulatory Notice to be published no later than 60 days following 
Commission approval and that the due date for the first SIS would be no 
later than 90 days following Commission approval of the proposed rule 
change. FINRA understands that firms may need to make systems changes 
to map inventory positions to the line items on the SIS. In order to 
provide additional time for firms to make any necessary systems changes 
to comply with SR-FINRA-2014-025, FINRA is proposing to revise the 
implementation date for the SIS. The due date for the first SIS, 
disclosing inventory positions for the reporting period ending December 
31, 2014, will be January 30, 2015.
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    \3\ See Securities Exchange Act Release No. 73192 (September 23, 
2014), 79 FR 58390 (September 29, 2014) (Notice of Filing of 
Amendment No. 1, and Order Granting Accelerated Approval of a 
Proposed Rule Change, as Modified by Amendment No. 1, To Adopt a 
Supplementary Schedule for Inventory Positions Pursuant to FINRA 
Rule 4524 (Supplemental FOCUS Information)).
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    As noted in Item II.A.2. of this filing, FINRA has filed the 
proposed rule change for immediate effectiveness and has requested that 
the Commission waive the requirement that the proposed rule change not 
become operative for 30 days after the date of the filing. The 
operative date will be the date of filing of the proposed rule change.
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 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 is 
consistent with the Act in that it provides firms with additional time 
to make any necessary systems changes to comply with SR-FINRA-2014-025, 
which will, among other things, provide FINRA with greater insights 
into the types of securities held in inventory by firms and the related 
market risk associated with such inventory positions.
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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. FINRA believes that extending 
the implementation date of SR-FINRA-2014-025 will provide firms 
additional time to make necessary systems changes. The due date for the 
first SIS, disclosing inventory positions for the reporting period 
ending December 31, 2014, will be January 30, 2015.

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

    The proposed rule change is effective upon filing pursuant to 
Section 19(b)(3) of the Act \5\ and paragraph (f)(6) of Rule 19b-4 
thereunder,\6\ because the proposed rule change does not significantly 
affect the protection of investors or the public interest; does not 
impose any significant burden on competition; and does not become 
operative for 30 days after filing or such shorter time as the 
Commission may designate. The proposed rule change solely modifies the 
implementation date for SR-FINRA-2014-025.
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    \5\ 15 U.S.C. 78s(b)(3).
    \6\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative prior to 30 days after the date of filing.\7\ Rule 
19b-4(f)(6)(iii), however, permits the Commission to designate a 
shorter time if such action is consistent with the protection of 
investors and the public interest.\8\ FINRA has requested that the 
Commission waive the 30-day operative delay so that FINRA can provide 
firms as much notice as possible regarding the reporting period and due 
date for the first SIS.
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    \7\ 17 CFR 240.19b-4(f)(6)(iii).
    \8\ Id.
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    The Commission believes that the waiver of the 30-day operative 
delay is consistent with the protection of investors and the public 
interest

[[Page 63997]]

because it provides firms with a reasonable amount of additional time 
to make necessary systems changes so they can accurately complete and 
file the SIS. Therefore, the Commission designates the proposal 
operative upon filing.\9\
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    \9\ For purposes only of waiving the 30-day 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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act.\10\ If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(C).
    \11\ Id.
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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-2014-44 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-FINRA-2014-44. 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 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 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 the filing also will be available for 
inspection and copying at FINRA's principal office. 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-2014-44 and 
should be submitted on or before November 17, 2014.

    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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-25428 Filed 10-24-14; 8:45 am]
BILLING CODE 8011-01-P