[Federal Register Volume 89, Number 80 (Wednesday, April 24, 2024)]
[Notices]
[Pages 31229-31231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08688]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99991; File No. SR-FINRA-2024-005]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Retire the FINRA Rule 10000 Series (Code of 
Arbitration Procedure)

April 18, 2024.
    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 April 17, 2024, 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, 
II, and III below, which Items have been prepared by FINRA. FINRA has 
designated the proposed rule change as constituting a ``non-
controversial'' rule

[[Page 31230]]

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 retire the FINRA Rule 10000 Series (Code of 
Arbitration Procedure) that governs arbitration and mediation claims 
filed in the forum administered by FINRA Dispute Resolution Services 
(``DRS'') prior to April 16, 2007.
    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
    The FINRA Rule 10000 Series (``old Code'') applies to arbitration 
and mediation claims filed in the DRS forum prior to April 16, 2007. As 
part of a comprehensive plan to reorganize and simplify the old Code, 
FINRA previously separated the old Code into three sections: the Code 
of Arbitration Procedure for Customer Disputes (``Customer Code''); the 
Code of Arbitration Procedure for Industry Disputes (``Industry 
Code''); and the Code of Mediation Procedure (``Mediation Code'') 
(together, ``Codes'').\4\ The Codes apply to claims filed in the DRS 
forum on or after April 16, 2007.\5\
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    \4\ See Securities Exchange Act Release No. 52705 (October 31, 
2005), 70 FR 67525 (November 7, 2005) (Order Approving File No. SR-
NASD-2004-013); Securities Exchange Act Release No. 55158 (January 
24, 2007), 72 FR 4574 (January 31, 2007) (Order Approving File Nos. 
SR-NASD-2003-158 and SR-NASD-2004-011). See also Securities Exchange 
Act Release No. 58643 (September 25, 2008), 73 FR 57174 (October 1, 
2008) (Order Approving File Nos. SR-FINRA-2008-021; SR-FINRA-2008-
022; SR-FINRA-2008-026; SR-FINRA-2008-028 and SR-FINRA-2008-029) 
(consolidating NASD rules, including the Codes, as FINRA rules in 
the consolidated FINRA rulebook).
    \5\ The FINRA Rule 12000 Series contains the Customer Code; the 
FINRA Rule 13000 Series contains the Industry Code; and the FINRA 
Rule 14000 Series contains the Mediation Code.
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    The proposed rule change would retire the old Code. All mediation 
and arbitration claims that were filed in the DRS forum prior to April 
16, 2007, and governed by the old Code, have closed. Thus, the old Code 
is no longer applicable to any mediation or arbitration claims filed in 
the DRS forum.
    FINRA has filed the proposed rule change for immediate 
effectiveness.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\6\ 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.
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    \6\ 15 U.S.C. 78o-3(b)(6).
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    The proposed rule change will protect investors and the public 
interest by eliminating potential confusion and providing greater 
regulatory clarity to forum users regarding the rules applicable to 
claims filed in the DRS forum as it will retire the old Code, which is 
no longer applicable to any arbitration or mediation claims filed in 
the DRS forum.

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 would 
retire the old Code that is no longer applicable to any arbitration or 
mediation claims filed in the DRS forum and, therefore, would not have 
additional economic impacts on FINRA members or their associated 
persons.

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 \7\ and Rule 19b-
4(f)(6) thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

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 [email protected]. Please include 
file number SR-FINRA-2024-005 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-2024-005. 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

[[Page 31231]]

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. Do not include 
personal identifiable information in submissions; you should submit 
only information that you wish to make available publicly. We may 
redact in part or withhold entirely from publication submitted material 
that is obscene or subject to copyright protection.
    All submissions should refer to file number SR-FINRA-2024-005 and 
should be submitted on or before May 15, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-08688 Filed 4-23-24; 8:45 am]
BILLING CODE 8011-01-P