81 FR 26593 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Delay Implementation of FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 85 (May 3, 2016)
Federal Register Volume 81, Issue 85 (May 3, 2016)
| Page Range | 26593-26595 | |
| FR Document | 2016-10273 |
[Federal Register Volume 81, Number 85 (Tuesday, May 3, 2016)] [Notices] [Pages 26593-26595] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-10273] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77726; File No. SR-FINRA-2016-013] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Delay Implementation of FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports) April 27, 2016. 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 20, 2016, 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 and II below, which Items have been prepared by FINRA. FINRA has designated the proposed rule change as constituting a ``non-controversial'' rule change under paragraph (f)(6) of Rule [[Page 26594]] 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change FINRA is proposing to delay implementation of FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports) until July 16, 2016. The proposed rule change would not make any other changes to FINRA rules. The text of the proposed rule change is available on FINRA's Web site 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 On November 14, 2014, FINRA filed proposed rule change SR-FINRA- 2014-048 to adopt new FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports) to address conflicts of interest relating to the publication and distribution of debt research reports.\4\ On February 19, 2015, FINRA filed Amendment No. 1 responding to the comments received to the proposal as well as to propose amendments in response to these comments.\5\ The proposed rule change, as modified by Amendment No. 1 thereto, was approved by the Commission on July 16, 2015.\6\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 73623 (November 18, 2014), 79 FR 69905 (November 24, 2014) (Notice of Filing File No. SR-FINRA-2014-048). \5\ See Securities Exchange Act Release No. 74490 (March 12, 2015), 80 FR 14198 (March 18, 2015) (Notice of Filing Amendment No. 1 to File No. SR-FINRA-2014-048). \6\ See Securities Exchange Act Release No. 75472 (July 16, 2015), 80 FR 43528 (July 22, 2015) (Order Approving File No. SR- FINRA-2014-048). --------------------------------------------------------------------------- Pursuant to proposed rule change SR-FINRA-2014-048, FINRA proposed to announce the effective date of the proposed rule change in a Regulatory Notice to be published no later than 60 days following Commission approval. FINRA further stated that the effective date will be no later than 180 days following publication of the Regulatory Notice announcing Commission approval. FINRA announced an effective date of February 22, 2016 in a Regulatory Notice published on August 26, 2015.\7\ In response to industry questions regarding implementation of the requirements of Rule 2242, FINRA delayed implementation of Rule 2242 until April 22, 2016.\8\ --------------------------------------------------------------------------- \7\ See Regulatory Notice 15-31 (August 2015). \8\ See Securities Exchange Act Release No. 77158 (February 17, 2016), 81 FR 9065 (February 23, 2016) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2016-008). --------------------------------------------------------------------------- FINRA continues to receive questions regarding implementation of the requirements of Rule 2242. Therefore, to give members additional time to implement the requirements of Rule 2242, FINRA believes that it is appropriate to extend the implementation date and is proposing to delay implementation of Rule 2242 until July 16, 2016. 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. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,\9\ 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 the proposed rule change is consistent with the Act in that it provides members additional time to implement the requirements of Rule 2242, which addresses conflicts of interest relating to the publication and distribution of debt research reports. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78o-3(b)(6). --------------------------------------------------------------------------- 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 delay in implementation of Rule 2242 will reduce the burden on members by allowing additional time to implement the requirements of the Rule. 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)(iii) of the Act \10\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\11\ --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A)(iii). \11\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- Under Rule 19b-4(f)(6) of the Act,\12\ the proposal does not become operative for 30 days after the date of its filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest. FINRA has requested that the Commission waive the 30-day operative delay so that the proposed rule change will become operative on filing. FINRA stated that its members continue to submit questions regarding implementation of Rule 2242 and it would like to respond to the industry's questions before the Rule is implemented. For these reasons, the Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission designates the proposed rule change to be operative upon filing.\13\ --------------------------------------------------------------------------- \12\ Id. \13\ For purposes only of waiving the 30-day operative delay, the Commission also has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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 [[Page 26595]] 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 CommentsUse 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-2016-013 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-2016-013. 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 office of FINRA. 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-2016-013, and should be submitted on or before May 24, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-10273 Filed 5-2-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 85 / Tuesday, May 3, 2016 / Notices 26593
Market LLC 14 and NYSE Arca Equities, protection of investors and the public amendments, all written statements
Inc.15 interest. with respect to the proposed rule
The Exchange also believes that The Exchange has asked the change that are filed with the
extending the pilot program for an Commission to waive the 30-day Commission, and all written
additional three months will allow the operative delay. The Exchange asserts communications relating to the
Program to continue to enhance that waiver of the operative delay will proposed rule change between the
competition among market participants allow the Exchange to extend the Commission and any person, other than
by creating incentives for market makers Program prior to its expiration on April those that may be withheld from the
to compete to make better quality 28, 2016, which will ensure that the public in accordance with the
markets. By continuing to require that Program continues to operate provisions of 5 U.S.C. 552, will be
market makers both meet the quoting uninterrupted while the Exchange and available for Web site viewing and
requirements and also compete for the the Commission continue to analyze printing in the Commission’s Public
daily financial incentives, the quality of data regarding the Program. The Reference Room, 100 F Street NE.,
quotes on the Exchange will continue to Commission believes that waiving the Washington, DC 20549, on official
improve. This, in turn, will attract more 30-day operative delay is consistent business days between the hours of
liquidity to the Exchange and further with the protection of investors and the 10:00 a.m. and 3:00 p.m. Copies of such
public interest. Therefore, the filing will also be available for
improve the quality of trading in
Commission hereby waives the 30-day inspection and copying at the principal
exchange-listed securities participating
operative delay and designates the office of the Exchange. All comments
in the Program, which will also act to
proposed rule change to be operative received will be posted without change;
bolster the Exchange’s listing business.
upon filing with the Commission.19 the Commission does not edit personal
C. Self-Regulatory Organization’s At any time within 60 days of the identifying information from
Statement on Comments on the filing of the proposed rule change, the submissions. You should submit only
Proposed Rule Change Received From Commission summarily may information that you wish to make
Members, Participants or Others temporarily suspend such rule change if available publicly. All submissions
it appears to the Commission that such should refer to File No. SR–BatsBZX–
The Exchange has not solicited, and action is necessary or appropriate in the 2016–11 and should be submitted on or
does not intend to solicit, comments on public interest, for the protection of before May 24, 2016.
this proposed rule change. The investors, or otherwise in furtherance of
Exchange has not received any written For the Commission, by the Division of
the purposes of the Act. Trading and Markets, pursuant to delegated
comments from Members or other authority.20
interested parties. IV. Solicitation of Comments
Robert W. Errett,
III. Date of Effectiveness of the Interested persons are invited to
Deputy Secretary.
Proposed Rule Change and Timing for submit written data, views and
[FR Doc. 2016–10270 Filed 5–2–16; 8:45 am]
Commission Action arguments concerning the foregoing,
including whether the proposal is BILLING CODE 8011–01–P
Because the foregoing proposed rule consistent with the Act. Comments may
change does not: (i) Significantly affect be submitted by any of the following
SECURITIES AND EXCHANGE
the protection of investors or the public methods:
COMMISSION
interest; (ii) impose any significant Electronic Comments
burden on competition; and (iii) become [Release No. 34–77726; File No. SR–FINRA–
operative for 30 days from the date on • Use the Commission’s Internet 2016–013]
which it was filed, or such shorter time comment form (http://www.sec.gov/
rules/sro.shtml); or Self-Regulatory Organizations;
as the Commission may designate, it has
become effective pursuant to section • Send an email to rule-comments@ Financial Industry Regulatory
sec.gov. Please include File No. SR– Authority, Inc.; Notice of Filing and
19(b)(3)(A) of the Act 16 and paragraph
BatsBZX–2016–11 on the subject line. Immediate Effectiveness of a Proposed
(f)(6) of Rule 19b–4 thereunder.17
Rule Change To Delay Implementation
A proposed rule change filed under Paper Comments of FINRA Rule 2242 (Debt Research
Rule 19b–4(f)(6) normally does not • Send paper comments in triplicate Analysts and Debt Research Reports)
become operative before 30 days from to Secretary, Securities and Exchange
the date of the filing. However, pursuant Commission, 100 F Street NE., April 27, 2016.
to Rule 19b–4(f)(6)(iii),18 the Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the
Commission may designate a shorter Securities Exchange Act of 1934
All submissions should refer to File No.
time if such action is consistent with the (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
SR–BatsBZX–2016–11. This file number
notice is hereby given that on April 20,
should be included on the subject line
14 See Securities Exchange Act Release No. 69195 2016, Financial Industry Regulatory
if email is used. To help the
(March 20, 2013), 78 FR 18393 (March 26, 2013) Authority, Inc. (‘‘FINRA’’) filed with the
(SR–NASDAQ–2012–137). Commission process and review your Securities and Exchange Commission
15 See Securities Exchange Act Release No. 69335 comments more efficiently, please use (‘‘SEC’’ or ‘‘Commission’’) the proposed
(April 5, 2013), 78 FR 35340 (June 12, 2013) (SR– only one method. The Commission will rule change as described in Items I and
NYSEARCA–2013–34). post all comments on the Commission’s
asabaliauskas on DSK3SPTVN1PROD with NOTICES
16 15 U.S.C. 78s(b)(3)(A). II below, which Items have been
Internet Web site (http://www.sec.gov/ prepared by FINRA. FINRA has
17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
rules/sro.shtml). Copies of the designated the proposed rule change as
the Commission written notice of its intent to file submission, all subsequent constituting a ‘‘non-controversial’’ rule
the proposed rule change at least five business days
prior to the date of filing of the proposed rule 19 For purposes only of waiving the operative
change under paragraph (f)(6) of Rule
change, or such shorter time as designated by the delay for this proposal, the Commission has
20 17 CFR 200.30–3(a)(12).
Commission. The Exchange has satisfied this considered the proposed rule’s impact on
requirement. efficiency, competition, and capital formation. See 1 15 U.S.C. 78s(b)(1).
18 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 81, No. 85 / Tuesday, May 3, 2016 / Notices 26595
furtherance of the purposes of the Act. For the Commission, by the Division of Brent Oil Spot Fund; (6) AccuShares
If the Commission takes such action, the Trading and Markets, pursuant to delegated S&P GSCI® Natural Gas Spot Fund; and
Commission shall institute proceedings authority.14 (7) AccuShares Spot CBOE® VIX® Fund
to determine whether the proposed rule Robert W. Errett, (‘‘VIX Fund,’’ and collectively,
should be approved or disapproved. Deputy Secretary. ‘‘AccuShares Funds’’).5
[FR Doc. 2016–10273 Filed 5–2–16; 8:45 am] NASDAQ Rule 5713(c) defines a
IV. Solicitation of Comments
BILLING CODE 8011–01–P Paired Class Share as a security: (1) That
Interested persons are invited to is issued by a trust on behalf of a
submit written data, views, and segregated series (‘‘Fund’’), as part of a
arguments concerning the foregoing, SECURITIES AND EXCHANGE pair of shares of opposing classes whose
including whether the proposed rule COMMISSION respective underlying values move in
change is consistent with the Act. [Release No. 34–77722; File No. SR– opposite directions as the value of the
Comments may be submitted by any of NASDAQ–2016–034] Fund’s ‘‘Underlying Benchmark’’ 6
the following methods: varies from its starting level, where (a)
Self-Regulatory Organizations; The one constituent of the pair is positively
Electronic Comments NASDAQ Stock Market LLC; Order linked to the Fund’s Underlying
• Use the Commission’s Internet Granting Approval of a Proposed Rule Benchmark (‘‘Up Shares’’), and (b) the
comment form (http://www.sec.gov/ Change Regarding Monthly other constituent is inversely linked to
rules/sro.shtml); or Distributions, Excess Returns, and the Fund’s Underlying Benchmark
Share Index Factors of Certain (‘‘Down Shares’’); (2) that is issued in
• Send an email to rule-comments@ AccuShares® Trust I Funds exchange for cash; (3) the issuance
sec.gov. Please include File Number SR–
proceeds of which are invested and
FINRA–2016–013 on the subject line. April 27, 2016.
reinvested in highly rated, short-term
On March 2, 2016, The NASDAQ
Paper Comments financial instruments that mature
Stock Market LLC (‘‘NASDAQ’’ or
within 90 calendar days and that serve
• Send paper comments in triplicate ‘‘Exchange’’) filed with the Securities
the functions of (a) covering the Fund’s
to Secretary, Securities and Exchange and Exchange Commission
expenses, (b) providing income
Commission, 100 F Street NE., (‘‘Commission’’), pursuant to Section
distributions to investors, based on
Washington, DC 20549–1090. 19(b)(1) of the Securities Exchange Act
income (after expenses) from the
of 1934 (‘‘Act’’) 1 and Rule 19b–4
All submissions should refer to File financial instruments held by the Fund,
thereunder,2 a proposed rule change to
Number SR–FINRA–2016–013. This file (c) providing cash proceeds for regular
modify specific listing requirements
number should be included on the and special distributions to be made in
applicable to shares of certain funds
subject line if email is used. To help the cash in lieu of Paired Class Shares, and
issued by AccuShares® Trust I
Commission process and review your (d) providing cash proceeds to be paid
(‘‘AccuShares Trust’’). The proposed
comments more efficiently, please use upon the redemption of Paired Class
rule change was published for comment
only one method. The Commission will Shares; (4) that represents a beneficial
in the Federal Register on March 17,
post all comments on the Commission’s interest in the Fund; (5) the value of
2016.3 The Commission received two
Internet Web site (http://www.sec.gov/ which is determined by the underlying
comments on the proposed rule
rules/sro.shtml). Copies of the value of the Fund that is attributable to
change.4 This order grants approval of
submission, all subsequent the class of which such security is a
the proposed rule change.
amendments, all written statements part, which security underlying value
with respect to the proposed rule I. Background will either (a) increase as a result of an
change that are filed with the On February 18, 2015, the increase in the Underlying Benchmark
Commission, and all written Commission approved an Exchange and decrease as a result of a decrease in
communications relating to the proposal to adopt NASDAQ Rule 5713, the Underlying Benchmark (in the case
proposed rule change between the which governs the listing and trading of of an Up Share), or (b) increase as a
Commission and any person, other than Paired Class Shares, and to list and result of a decrease in the Underlying
those that may be withheld from the trade shares of the following seven Benchmark and decrease as the result of
public in accordance with the funds issued by the AccuShares Trust an increase in the Underlying
provisions of 5 U.S.C. 552, will be pursuant to NASDAQ Rule 5713: (1) Benchmark (in the case of a Down
available for Web site viewing and AccuShares S&P GSCI® Spot Fund; (2) Share); (6) that, when timely aggregated
printing in the Commission’s Public AccuShares S&P GSCI® Agriculture and in a specified minimum number or
Reference Room, 100 F Street NE., Livestock Spot Fund; (3) AccuShares amount of securities, along with an
Washington, DC 20549 on official S&P GSCI® Industrial Metals Spot Fund; equal number or amount of the
business days between the hours of (4) AccuShares S&P GSCI® Crude Oil securities of the opposite class that
10:00 a.m. and 3:00 p.m. Copies of such Spot Fund; (5) AccuShares S&P GSCI® constitute the other part of the pair, may
filing also will be available for be redeemed for a distribution of cash
inspection and copying at the principal 14 17 CFR 200.30–3(a)(12). on specified dates by authorized parties;
office of FINRA. All comments received 1 15 U.S.C. 78s(b)(1). and (7) that may be subject to
will be posted without change; the 2 17 CFR 240.19b–4.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Commission does not edit personal 3 See Securities Exchange Act Release No. 77353 5 See Securities Exchange Act Release No. 74299
identifying information from (Mar. 11, 2016), 81 FR 14489 (‘‘Notice’’). (Feb. 18, 2015), 80 FR 9778 (Feb. 24, 2015) (SR–
4 In a comment letter dated March 27, 2016, an NASDAQ–2014–065). The Exchange states that
submissions. You should submit only anonymous commenter stated: ‘‘Good.’’ In another currently only shares of the VIX Fund are listed and
information that you wish to make comment letter dated March 27, 2016, Dan trading. See Notice, supra note 3, 81 FR at 14489
available publicly. All submissions Schumann stated: ‘‘Please do NOT change any rules n.4.
should refer to File Number SR–FINRA– that would limit-stop-prevent the trading of ETF’s 6 An ‘‘Underlying Benchmark’’ is an index or
[sic].’’ All comments on the proposal are available other numerical variable whose value reflects the
2016–013, and should be submitted on at: http://www.sec.gov/comments/sr-nasdaq-2016– value of assets, prices, price volatility, or other
or before May 24, 2016. 034/nasdaq2016034.shtml. economic interests. See NASDAQ Rule 5713(e).
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Document Created: 2016-05-03 00:30:13
Document Modified: 2016-05-03 00:30:13
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 81 FR 26593 |
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