[Federal Register Volume 74, Number 179 (Thursday, September 17, 2009)]
[Notices]
[Pages 47837-47838]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22371]


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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