[Federal Register Volume 74, Number 203 (Thursday, October 22, 2009)]
[Notices]
[Pages 54616-54617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-25430]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60835; File No. SR-FINRA-2009-055]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Order Approving Proposed Rule Change To Adopt FINRA
Rules 5210 (Publication of Transactions and Quotations) and 5220
(Offers at Stated Prices) Into the Consolidated Rulebook
October 16, 2009.
On August 18, 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 adopt NASD Rule 3310 (Publication of
Transactions and Quotations), NASD Rule 3320 (Offers at Stated Prices),
IM-3310 (Manipulative and Deceptive Quotations) and IM-3320 (firmness
of Quotations) as FINRA rules in the consolidated FINRA rulebook
without material changes. The proposed rule change would combine NASD
Rule 3310 and IM-3310 into FINRA Rule 5210 and would combine NASD Rule
3320 and IM-3320 into FINRA Rule 5220 in the consolidated FINRA
rulebook. The proposed rule change was published for comment in the
Federal Register on September 11, 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. 60613 (September 2,
2009), 74 FR 46814.
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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.
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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 believes that the proposed rule change is designed
to protect investors and promote the maintenance of fair, orderly and
efficient markets by prohibiting a member from publishing a report of
any transaction unless the member believes that it was a bona fide
purchase or sale of the security and from ``backing away'' from its
quotations. In approving the proposed rule change, the Commission notes
that FINRA is adopting NASD Rule 3310 (Publication of Transactions and
Quotations), NASD Rule 3320 (Offers at Stated Prices), IM-3310
(Manipulative and Deceptive Quotations) and IM-3320 (firmness of
Quotations) as FINRA rules in the consolidated FINRA rulebook without
material changes. The Commission also notes FINRA's representation that
it will remind its members of their obligation to have in place a
supervisory system and written procedures reasonably designed to ensure
the accuracy and integrity of information entered into order-routing
execution systems, as further addressed in its Notice to Members 04-66,
in a regulatory notice announcing the approval of the proposed rule
change.\6\
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\6\ See e-mail from Racquel L. Russell, Assistant General
Counsel, FINRA, to Mia Zur, Special Counsel, and Steve Varholik,
Special Counsel, Division of Trading and Markets, Commission,
October 13, 2009.
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[[Page 54617]]
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-FINRA-2009-055) be, and it
hereby is, approved.
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\7\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-25430 Filed 10-21-09; 8:45 am]
BILLING CODE 8011-01-P