80 FR 14196 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 52 (March 18, 2015)
Federal Register Volume 80, Issue 52 (March 18, 2015)
| Page Range | 14196-14198 | |
| FR Document | 2015-06093 |
[Federal Register Volume 80, Number 52 (Wednesday, March 18, 2015)] [Notices] [Pages 14196-14198] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-06093] [[Page 14196]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74489; File No. SR-MIAX-2015-13] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule March 12, 2015. 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 February 27, 2015, Miami International Securities Exchange LLC (``MIAX'' or ``Exchange'') 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 the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend the MIAX Options Fee Schedule. The text of the proposed rule change is available on the Exchange's Web site at http://www.miaxoptions.com/filter/wotitle/rule_filing, at MIAX'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, the Exchange 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. The Exchange 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 Exchange proposes to amend its current MIAX Market Maker \3\ sliding scale for transaction fees to: (i) Modify the volume thresholds in tiers 1, 2, 3; (ii) increase the transaction fee for volume tier 1; and (iii) increase the Priority Customer rebate incentive for tier 1. --------------------------------------------------------------------------- \3\ ``MIAX Market Maker'' for purposes of the proposed sliding scale means any MIAX Market Maker including RMM, LMM, PLMM, DLMM, and DPLMM. --------------------------------------------------------------------------- The sliding scale for MIAX Market Maker transaction fees is based on the substantially similar fees of the Chicago Board Options Exchange, Incorporated (``CBOE'').\4\ Specifically, the program reduces a MIAX Market Maker's per contract transaction fee based on percentages of total national Market Maker volume of any options classes that trade on the exchange during the calendar month, based on the following scale: --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release Nos. 55193 (January 30, 2007), 72 FR 5476 (February 6, 2007) (SR-CBOE-2006-111); 57191 (January 24, 2008), 73 FR 5611 (January 30, 2008); 58321 (August 6, 2008), 73 FR 46955 (SR-CBOE-2008-78). See also CBOE Fees Schedule, p. 3. ------------------------------------------------------------------------ Transaction Tier Percentage of national Market fee per Maker volume contract ------------------------------------------------------------------------ 1....................... 0.00%-0.05%...................... $0.25 2....................... Above 0.05%-0.50%................ 0.17 3....................... Above 0.50%-0.80%................ 0.12 4....................... Above 0.80%-1.50%................ 0.07 5....................... Above 1.50%...................... 0.05 ------------------------------------------------------------------------ The sliding scale would apply to all MIAX Market Makers for transactions in all products except mini-options. By amending the volume tier calculations, the sliding scale will more closely align with that of CBOE.\5\ A MIAX Market Maker's initial $0.25 per contract rate will be reduced if the MIAX Market Maker reaches the volume thresholds set forth in the sliding scale in a month. As a MIAX Market Maker's monthly volume increases, its per contract transaction fee would decrease. The Market Maker sliding scale will continue to apply to MIAX Market Maker (RMM, LMM, DLMM, PLMM, DPLMM) transaction fees in all products except mini-options. MIAX Market Makers will continue to be assessed a $0.02 per executed contract fee for transactions in mini- options. --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release Nos. 55193 (January 30, 2007), 72 FR 5476 (February 6, 2007) (SR-CBOE-2006-111); 58321 (August 6, 2008), 73 FR 46955 (SR-CBOE-2008-78); 71295 (January 14, 2014), 79 FR 3443 (January 21, 2014) (SR-CBOE-2013-129). --------------------------------------------------------------------------- The Exchange believes the proposed sliding scale is objective in that the fee reductions are based solely on reaching stated volume thresholds. The specific volume thresholds of the tiers were set based upon business determinations and an analysis of current volume levels. The specific volume thresholds and rates were set in order to encourage MIAX Market Makers to reach for higher tiers. The Exchange believes that the proposed changes to the tiered fee schedule may incent firms to display their orders on the Exchange and increase the volume of contracts traded here. As mentioned above, the Exchange notes that the proposed sliding fee scale for MIAX Market Makers structured on contract volume thresholds is based on the substantially similar fees of the CBOE.\6\ The Exchange also notes that a number of other exchanges have tiered fee schedules which offer different transaction fee rates depending on the monthly ADV of liquidity providing executions on their facilities.\7\ --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release Nos. 55193 (January 30, 2007), 72 FR 5476 (February 6, 2007) (SR-CBOE-2006-111); 58321 (August 6, 2008), 73 FR 46955 (SR-CBOE-2008-78); 71295 (January 14, 2014), 79 FR 3443 (January 21, 2014) (SR-CBOE-2013-129). \7\ See, e.g., International Securities Exchange, LLC, Schedule of Fees, Section IV, C; NASDAQ Options Market, Chapter XV, Section 2. --------------------------------------------------------------------------- The Exchange also proposes to increase the rebate incentive for Priority Customer orders to correspond with the increase in the transaction fee for tier 1 of the MIAX Market Maker sliding scale. The Exchange offers MIAX Market Makers the opportunity to reduce transaction fees by $0.02 per contract in standard options if the Member or its affiliates of at least 75% common ownership between the firms as reflected on each firm's Form BD, Schedule A, qualifies in a given month for Priority Customer Rebate Program volume tiers 3, 4, or 5 in the Fee Schedule. The Exchange proposes to amend the rebate incentive for Priority Customer orders in order to increase the rebate incentive for tier 1 to correspond with the increase in transaction fees for volume tier 1 of the MIAX Market Maker sliding scale. As proposed, any Member or its affiliates of at least 75% common ownership between the firms as reflected on each firm's Form BD, Schedule A, that qualifies for Priority Customer Rebate Program volume tiers 3, 4, or 5 and is a MIAX Market Maker will be assessed $0.23 per contract for tier 1, $0.15 per contract for tier 2, $0.10 per contract for tier 3, $0.05 per contract for tier 4, and $0.03 per contract for tier 5 for transactions in standard options in lieu of the applicable transaction fees in the Market Maker sliding scale. The Exchange believes that these incentives will encourage MIAX Market Makers to transact a greater number of orders on the Exchange. [[Page 14197]] Finally, the Exchange proposes to modify the name of the title of the column in the chart from ``Contracts Per Month'' to ``Percentage Thresholds of National Market Maker Volume''. The Exchange believes that the new title more clearly describes the type of threshold methodology that is being used for the fee. The proposed changes will become operative on March 1, 2015. 2. Statutory Basis The Exchange believes that its proposal to amend its fee schedule is consistent with Section 6(b) of the Act \8\ in general, and furthers the objectives of Section 6(b)(4) of the Act \9\ in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The proposed volume based discount fee structure is not discriminatory in that all MIAX Market Makers are eligible to submit (or not submit) liquidity, and may do so at their discretion in the daily volumes they choose during the course of the billing period. All similarly situated MIAX Market Makers are subject to the same fee structure, and access to the Exchange is offered on terms that are not unfairly discriminatory. Volume based discounts have been widely adopted by options and equities markets, and are equitable because they are open to all MIAX Market Makers on an equal basis and provide discounts that are reasonably related to the value of an exchange's market quality associated with higher volumes. The proposed fee levels and volume thresholds are reasonably designed to be comparable to those of other options exchanges employing similar fee programs, and also to attract additional liquidity and order flow to the Exchange. The Exchange's proposal to provide MIAX Market Makers the opportunity to reduce transaction fees by $0.02 per contract in standard options, provided certain criteria are met, is reasonable because the Exchange desires to offer all such market participants an opportunity to lower their transaction fees. The Exchange's proposal to offer MIAX Market Makers the opportunity to reduce transaction fees by $0.02 per contract in standard options, provided certain criteria are met, is equitable and not unfairly discriminatory because the Exchange offers all market participants, excluding Priority Customers, a means to reduce transaction fees by qualifying for volume tiers in the Priority Customer Rebate Program. The Exchange believes that offering all such market participants the opportunity to lower transaction fees by incentivizing them to transact Priority Customer order flow in turn benefits all market participants. Finally, the Exchange believes that the proposed to change to the name of the title of the column in the chart from ``Contracts Per Month'' to ``Percentage Thresholds of National Market Maker Volume'' is reasonable in that the new title more clearly describes the type of threshold methodology that is being used for the fee. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges and to attract order flow. The Exchange believes that the proposed rule change reflects this competitive environment because it modifies the Exchange's fees in a manner that encourages market participants to provide liquidity and to send order flow to the Exchange. 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 foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.\10\ 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- 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 CommentsUse 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-MIAX-2015-13 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-MIAX-2015-13. 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 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal offices of the Exchange. 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-MIAX-2015-13, and should be submitted on or before April 8, 2015. [[Page 14198]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-06093 Filed 3-17-15; 08:45 am] BILLING CODE 8011-01-P
![14196 Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Notices
SECURITIES AND EXCHANGE scale for transaction fees to: (i) Modify levels. The specific volume thresholds
COMMISSION the volume thresholds in tiers 1, 2, 3; and rates were set in order to encourage
(ii) increase the transaction fee for MIAX Market Makers to reach for higher
[Release No. 34–74489; File No. SR–MIAX–
volume tier 1; and (iii) increase the tiers. The Exchange believes that the
2015–13]
Priority Customer rebate incentive for proposed changes to the tiered fee
Self-Regulatory Organizations; Miami tier 1. schedule may incent firms to display
International Securities Exchange LLC; The sliding scale for MIAX Market their orders on the Exchange and
Notice of Filing and Immediate Maker transaction fees is based on the increase the volume of contracts traded
Effectiveness of a Proposed Rule substantially similar fees of the Chicago here.
Change To Amend Its Fee Schedule Board Options Exchange, Incorporated As mentioned above, the Exchange
(‘‘CBOE’’).4 Specifically, the program notes that the proposed sliding fee scale
March 12, 2015. reduces a MIAX Market Maker’s per for MIAX Market Makers structured on
Pursuant to Section 19(b)(1) of the contract transaction fee based on contract volume thresholds is based on
Securities Exchange Act of 1934 percentages of total national Market the substantially similar fees of the
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Maker volume of any options classes CBOE.6 The Exchange also notes that a
notice is hereby given that on February that trade on the exchange during the number of other exchanges have tiered
27, 2015, Miami International Securities calendar month, based on the following fee schedules which offer different
Exchange LLC (‘‘MIAX’’ or ‘‘Exchange’’) scale: transaction fee rates depending on the
filed with the Securities and Exchange monthly ADV of liquidity providing
Commission (‘‘SEC’’ or ‘‘Commission’’) Trans-
Percentage of executions on their facilities.7
action fee
the proposed rule change as described Tier national Market per
in Items I, II, and III below, which Items Maker volume The Exchange also proposes to
contract increase the rebate incentive for Priority
have been prepared by the Exchange.
The Commission is publishing this 1 ... 0.00%–0.05% ................... $0.25 Customer orders to correspond with the
notice to solicit comments on the 2 ... Above 0.05%–0.50% ....... 0.17 increase in the transaction fee for tier 1
proposed rule change from interested 3 ... Above 0.50%–0.80% ....... 0.12 of the MIAX Market Maker sliding scale.
persons. 4 ... Above 0.80%–1.50% ....... 0.07 The Exchange offers MIAX Market
5 ... Above 1.50% ................... 0.05 Makers the opportunity to reduce
I. Self-Regulatory Organization’s transaction fees by $0.02 per contract in
Statement of the Terms of Substance of The sliding scale would apply to all standard options if the Member or its
the Proposed Rule Change MIAX Market Makers for transactions in affiliates of at least 75% common
all products except mini-options. By ownership between the firms as
The Exchange is filing a proposal to
amending the volume tier calculations, reflected on each firm’s Form BD,
amend the MIAX Options Fee Schedule.
the sliding scale will more closely align Schedule A, qualifies in a given month
The text of the proposed rule change
with that of CBOE.5 A MIAX Market for Priority Customer Rebate Program
is available on the Exchange’s Web site
Maker’s initial $0.25 per contract rate volume tiers 3, 4, or 5 in the Fee
at http://www.miaxoptions.com/filter/
will be reduced if the MIAX Market Schedule. The Exchange proposes to
wotitle/rule_filing, at MIAX’s principal
Maker reaches the volume thresholds amend the rebate incentive for Priority
office, and at the Commission’s Public
set forth in the sliding scale in a month. Customer orders in order to increase the
Reference Room.
As a MIAX Market Maker’s monthly rebate incentive for tier 1 to correspond
II. Self-Regulatory Organization’s volume increases, its per contract with the increase in transaction fees for
Statement of the Purpose of, and transaction fee would decrease. The volume tier 1 of the MIAX Market
Statutory Basis for, the Proposed Rule Market Maker sliding scale will Maker sliding scale. As proposed, any
Change continue to apply to MIAX Market Member or its affiliates of at least 75%
In its filing with the Commission, the Maker (RMM, LMM, DLMM, PLMM, common ownership between the firms
Exchange included statements DPLMM) transaction fees in all products as reflected on each firm’s Form BD,
concerning the purpose of and basis for except mini-options. MIAX Market Schedule A, that qualifies for Priority
the proposed rule change and discussed Makers will continue to be assessed a Customer Rebate Program volume tiers
any comments it received on the $0.02 per executed contract fee for 3, 4, or 5 and is a MIAX Market Maker
proposed rule change. The text of these transactions in mini-options.
will be assessed $0.23 per contract for
The Exchange believes the proposed
statements may be examined at the tier 1, $0.15 per contract for tier 2, $0.10
sliding scale is objective in that the fee
places specified in Item IV below. The per contract for tier 3, $0.05 per contract
reductions are based solely on reaching
Exchange has prepared summaries, set for tier 4, and $0.03 per contract for tier
stated volume thresholds. The specific
forth in sections A, B, and C below, of volume thresholds of the tiers were set 5 for transactions in standard options in
the most significant aspects of such based upon business determinations lieu of the applicable transaction fees in
statements. and an analysis of current volume the Market Maker sliding scale.
A. Self-Regulatory Organization’s The Exchange believes that these
Statement of the Purpose of, and Maker including RMM, LMM, PLMM, DLMM, and incentives will encourage MIAX Market
Statutory Basis for, the Proposed Rule DPLMM. Makers to transact a greater number of
4 See Securities Exchange Act Release Nos. 55193
Change orders on the Exchange.
(January 30, 2007), 72 FR 5476 (February 6, 2007)
mstockstill on DSK4VPTVN1PROD with NOTICES
(SR–CBOE–2006–111); 57191 (January 24, 2008), 73
1. Purpose FR 5611 (January 30, 2008); 58321 (August 6, 2008), 6 See Securities Exchange Act Release Nos. 55193
The Exchange proposes to amend its 73 FR 46955 (SR–CBOE–2008–78). See also CBOE (January 30, 2007), 72 FR 5476 (February 6, 2007)
Fees Schedule, p. 3. (SR–CBOE–2006–111); 58321 (August 6, 2008), 73
current MIAX Market Maker 3 sliding 5 See Securities Exchange Act Release Nos. 55193 FR 46955 (SR–CBOE–2008–78); 71295 (January 14,
(January 30, 2007), 72 FR 5476 (February 6, 2007) 2014), 79 FR 3443 (January 21, 2014) (SR–CBOE–
1 15 U.S.C. 78s(b)(1). (SR–CBOE–2006–111); 58321 (August 6, 2008), 73 2013–129).
2 17 CFR 240.19b–4. 7 See, e.g., International Securities Exchange,
FR 46955 (SR–CBOE–2008–78); 71295 (January 14,
3 ‘‘MIAX Market Maker’’ for purposes of the 2014), 79 FR 3443 (January 21, 2014) (SR–CBOE– LLC, Schedule of Fees, Section IV, C; NASDAQ
proposed sliding scale means any MIAX Market 2013–129). Options Market, Chapter XV, Section 2.
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![14198 Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Notices
For the Commission, by the Division of The proposed rule change, as Analysts and Debt Research Reports) to
Trading and Markets, pursuant to delegated modified by Amendment No. 1, is address conflicts of interest relating to
authority.11 described in Items II and III below, the publication and distribution of debt
Brent J. Fields, which Items have been substantially research reports.
Secretary. prepared by FINRA.7 The Commission The Commission published the
[FR Doc. 2015–06093 Filed 3–17–15; 08:45 am] is publishing this notice to solicit proposed rule change for public
BILLING CODE 8011–01–P comments from interested persons on comment in the Federal Register on
the proposal as amended by November 24, 2014. The Commission
Amendment No. 1. received five comment letters directed
SECURITIES AND EXCHANGE to the filing.10 Based on comments
COMMISSION II. Self-Regulatory Organization’s received, FINRA is filing this
Statement of the Terms of Substance of Amendment No. 1 to respond to the
[Release No. 34–74490; File No. SR–FINRA– the Proposed Rule Change comments and to propose amendments,
2014–048]
FINRA is proposing Amendment No. where appropriate. The Amendment
Self-Regulatory Organizations; 1 to SR–FINRA–2014–048, a proposed also includes a few technical, non-
Financial Industry Regulatory rule change to adopt FINRA Rule 2242 substantive changes.
Authority, Inc.; Notice of Filing of (Debt Research Analysts and Debt Proposal
Amendment No. 1 to a Proposed Rule Research Reports) to address conflicts of
interest relating to the publication and As described in greater detail in the
Change To Adopt FINRA Rule 2242 Proposing Release, the proposed rule
(Debt Research Analysts and Debt distribution of debt research reports.
The text of the proposed rule change change would adopt a tiered approach
Research Reports) that, in general, would provide retail
is available on FINRA’s Web site at
March 12, 2015. http://www.finra.org, at the principal debt research recipients with extensive
office of FINRA and at the protections similar to those provided to
I. Introduction recipients of equity research under
Commission’s Public Reference Room.
On November 14, 2014, Financial current and proposed FINRA rules, with
Industry Regulatory Authority, Inc. III. Self-Regulatory Organization’s modifications to reflect the different
(‘‘FINRA’’) filed with the Securities and Statement of the Purpose of, and nature and trading of debt securities,11
Exchange Commission (‘‘SEC’’ or Statutory Basis for, the Proposed Rule while exempting from many of the
‘‘Commission’’), pursuant to Section Change provisions debt research distributed
19(b)(1) of the Securities Exchange Act In its filing with the Commission, solely to eligible institutional investors.
of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and FINRA included statements concerning Definitions
Rule 19b–4 thereunder,2 a proposed rule the purpose of and basis for the
to adopt new FINRA Rule 2242 (Debt proposed rule change and discussed any Most of the defined terms closely
Research Analysts and Debt Research comments it received on the proposed follow the defined terms for equity
Reports) to address conflicts of interest rule change. The text of these statements research in NASD Rule 2711, as
relating to the publication and may be examined at the places specified amended by the equity research filing,
distribution of debt research reports. in Item V below. FINRA has prepared with minor changes to reflect their
The proposal was published for summaries, set forth in sections A, B, application to debt research. The
comment in the Federal Register on and C below, of the most significant proposed definitions are set forth below.
November 24, 2014.3 The Commission aspects of such statements.
to all FINRA members, the Incorporated NYSE
received five comments on the Rules apply only to those members of FINRA that
A. Self-Regulatory Organization’s
proposal.4 On February 19, 2015, FINRA are also members of the NYSE (‘‘Dual Members’’).
Statement of the Purpose of, and
filed Amendment No. 1 responding to For more information about the rulebook
Statutory Basis for, the Proposed Rule consolidation process, see Information Notice,
the comments received to the proposal
Change March 12, 2008 (Rulebook Consolidation Process).
as well as to propose amendments in 10 See Letter from Hugh D. Berkson, Executive
response to these comments. On 1. Purpose Vice President and President-Elect, Public Investors
February 20, 2015, the Commission Rule Filing History Arbitration Bar Association, to Brent J. Fields,
issued an order instituting proceedings Secretary, SEC, dated December 15, 2014 (‘‘PIABA
On November 14, 2014, FINRA filed Debt’’); Letter from Kevin Zambrowicz, Associate
pursuant to Section 19(b)(2)(B) of the with the Securities and Exchange General Counsel and Managing Director, and Sean
Act 5 to determine whether to approve Commission (‘‘Commission’’) SR– Davy, Managing Director, Securities Industry and
or disapprove the proposal. The order FINRA–2014–048,8 a proposed rule Financial Markets Association, to Brent J. Fields,
Secretary, SEC, dated December 15, 2014
was published for comment in the change to adopt in the consolidated (‘‘SIFMA’’); Letter from Yoon-Young Lee, Wilmer
Federal Register on February 26, 2015.6 FINRA rulebook (‘‘Consolidated FINRA Cutler Pickering Hale and Dorr LLP, to Brent J.
Rulebook’’) 9 Rule 2242 (Debt Research Fields, Secretary, SEC, dated December 16, 2014
11 17 CFR 200.30–3(a)(12). (‘‘WilmerHale Debt’’); Letter from William Beatty,
1 15 U.S.C. 78s(b)(1). President, North American Securities
7 For a comparison of the changes of the rule text
2 17 CFR 240.19b–4. Administrators Association, Inc., Brent J. Fields,
between the proposal as originally noticed and the Secretary, SEC, dated December 19, 2014 (‘‘NASAA
3 Exchange Act Release No. 73623 (Nov. 18,
proposal as amended by Amendment No. 1, see Debt’’); and Letter from Kurt N. Schacht, Managing
2014); 79 FR 69905 (Nov. 24, 2014) (‘‘Notice’’). On Exhibit 4 to SR–FINRA–2014–048. Director, Standards and Financial Market Integrity,
January 6, 2015, FINRA consented to extending the 8 See Securities Exchange Act Release No. 73623
and Linda L. Rittenhouse, Director, Capital Markets
time period for the Commission to either approve (November 18, 2014), 79 FR 69905 (November 24, Policy, CFA Institute, to Brent J. Fields, Secretary,
mstockstill on DSK4VPTVN1PROD with NOTICES
or disapprove the proposed rule change, or to 2014) (Notice of Filing File No. SR–FINRA–2014– SEC, dated February 9, 2015 (‘‘CFA Institute’’).
institute proceedings to determine whether to 048) (‘‘Proposing Release’’). The comment period 11 The proposed rule change reflects proposed
approve or disapprove the proposed rule change, to closed on December 15, 2014. amendments to FINRA’s equity research rules set
February 20, 2015. 9 The current FINRA rulebook includes, in
forth in a companion filing to the proposed rule
4 See infra note 10.
addition to FINRA Rules, (1) NASD Rules and (2) change (the ‘‘equity research filing’’). See Securities
5 15 U.S.C. 78s(b)(2)(B).
rules incorporated from NYSE (‘‘Incorporated NYSE Exchange Act Release No. 73622 (November 18,
6 Exchange Act Release No. 74340 (Feb. 20, 2015); Rules’’) (together, the NASD Rules and Incorporated 2014), 79 FR 69939 (November 24, 2014) (Notice of
80 FR 10538 (Feb. 26, 2015). The comment period NYSE Rules are referred to as the ‘‘Transitional Filing File No. SR–FINRA–2014–047). See also
closes on March 19, 2015. Rulebook’’). While the NASD Rules generally apply Amendment No. 1 to SR–FINRA–2014–047.
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Document Created: 2018-02-21 09:39:43
Document Modified: 2018-02-21 09:39:43
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| FR Citation | 80 FR 14196 |
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