82 FR 3824 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Expiration Date of FINRA Rule 0180 (Application of Rules to Security-Based Swaps)

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 8 (January 12, 2017)

Page Range		3824-3825
FR Document		2017-00493
Federal Register, Volume 82 Issue 8 (Thursday, January 12, 2017)
[Federal Register Volume 82, Number 8 (Thursday, January 12, 2017)]
[Notices]
[Pages 3824-3825]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-00493]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79752; File No. SR-FINRA-2017-001]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Extend the Expiration Date of FINRA Rule 0180 
(Application of Rules to Security-Based Swaps)

January 6, 2017.
    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 January 5, 2017, 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 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 extend the expiration date of FINRA Rule 0180 
(Application of Rules to Security-Based Swaps) to February 12, 2018. 
FINRA Rule 0180 temporarily limits, with certain exceptions, the 
application of FINRA rules with respect to security-based swaps.
    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 July 1, 2011, the SEC issued an Order granting temporary 
exemptive relief (the ``Temporary Exemptions'') from compliance with 
certain provisions of the Exchange Act in connection with the revision, 
pursuant to Title VII of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (the ``Dodd-Frank Act''),\4\ of the Exchange Act 
definition of ``security'' to encompass security-based swaps.\5\ 
Consistent with the Commission's action, on July 8, 2011, FINRA filed 
for immediate effectiveness FINRA Rule 0180,\6\ which, with certain 
exceptions, is intended to temporarily limit the application of FINRA 
rules \7\ with respect to security-based swaps, thereby helping to 
avoid undue market disruptions resulting from the change to the 
definition of ``security'' under the Act.\8\
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    \4\ Public Law 111-203, 124 Stat. 1376 (2010).
    \5\ See Securities Exchange Act Release No. 64795 (July 1, 
2011), 76 FR 39927 (July 7, 2011) (Order Granting Temporary 
Exemptions Under the Securities Exchange Act of 1934 in Connection 
With the Pending Revision of the Definition of ``Security'' To 
Encompass Security-Based Swaps, and Request for Comment) (the 
``Exemptive Release''). The term ``security-based swap'' is defined 
in Section 761 of the Dodd-Frank Act. See also Securities Exchange 
Act Release No. 67453 (July 18, 2012), 77 FR 48207 (August 13, 2012) 
(Further Definition of ``Swap,'' ``Security-Based Swap,'' and 
``Security-Based Swap Agreement''; Mixed Swaps; Security-Based Swap 
Agreement Recordkeeping).
    \6\ See Securities Exchange Act Release No. 64884 (July 14, 
2011), 76 FR 42755 (July 19, 2011) (Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change; File No. SR-FINRA-2011-033) 
(``FINRA Rule 0180 Notice of Filing''). See also Securities Exchange 
Act Release No. 76850 (January 7, 2016), 81 FR 1666 (January 13, 
2016) (Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change; File No. SR-FINRA-2016-001) (extending the expiration date 
of FINRA Rule 0180 to February 11, 2017).
    \7\ The current FINRA rulebook consists of: (1) FINRA Rules; (2) 
NASD Rules; and (3) rules incorporated from NYSE (``Incorporated 
NYSE Rules''). While the NASD Rules generally apply to all FINRA 
members, the Incorporated NYSE Rules apply only to those members of 
FINRA that are also members of the NYSE. The FINRA Rules apply to 
all FINRA members, unless such rules have a more limited application 
by their terms. For more information about the rulebook 
consolidation process, see Information Notice, March 12, 2008 
(Rulebook Consolidation Process).
    \8\ In its Exemptive Release, the Commission noted that the 
relief is targeted and does not include, for instance, relief from 
the Act's antifraud and anti-manipulation provisions. FINRA has 
noted that FINRA Rule 0180 is similarly targeted. For instance, 
paragraph (a) of FINRA Rule 0180 provides that FINRA rules shall not 
apply to members' activities and positions with respect to security-
based swaps, except for FINRA Rules 2010 (Standards of Commercial 
Honor and Principles of Trade), 2020 (Use of Manipulative, Deceptive 
or Other Fraudulent Devices), 3310 (Anti-Money Laundering Compliance 
Program) and 4240 (Margin Requirements for Credit Default Swaps). 
See also paragraphs (b) and (c) of FINRA Rule 0180 (addressing the 
applicability of additional rules) and FINRA Rule 0180 Notice of 
Filing.
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    The Commission, noting the need to avoid a potential unnecessary 
disruption to the security-based swap market in the absence of an 
extension of the Temporary Exemptions, and the need for additional time 
to consider the potential impact of the revision of the Exchange Act 
definition of ``security'' in light of ongoing Commission rulemaking 
efforts under Title VII of the Dodd-Frank Act, issued an Order which 
extended and refined the applicable expiration dates for the previously 
granted Temporary Exemptions.\9\ The Commission previously noted that 
extending the Temporary Exemptions would facilitate a coordinated 
consideration of these issues with the

[[Page 3825]]

relief provided pursuant to FINRA Rule 0180.\10\ In establishing Rule 
0180, and in extending the rule's expiration date, FINRA noted its 
intent, pending the implementation of any SEC rules and guidance that 
would provide greater regulatory clarity in relation to security-based 
swap activities, to align the expiration date of FINRA Rule 0180 with 
the termination of relevant provisions of the Temporary Exemptions.\11\
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    \9\ See Securities Exchange Act Release No. 71485 (February 5, 
2014), 79 FR 7731 (February 10, 2014) (Order Extending Temporary 
Exemptions Under the Securities Exchange Act of 1934 in Connection 
With the Revision of the Definition of ``Security'' to Encompass 
Security-Based Swaps, and Request for Comment) (``Temporary 
Exemptions Extension Release'') stating that, for those expiring 
Temporary Exemptions ``that are not directly linked to pending 
security-based swap rulemakings, the Commission is extending the 
expiration date until the earlier of such time as the Commission 
issues an order or rule determining whether any continuing exemptive 
relief is appropriate for security-based swap activities with 
respect to any of these Exchange Act provisions or until three years 
following the effective date of this Order.'' The Temporary 
Exemptions Extension Release further stated that for each expiring 
Temporary Exemption ``that is related to pending security-based swap 
rulemakings, the Commission is extending the expiration date until 
the compliance date for the related security-based swap-specific 
rulemaking.'' See also Securities Exchange Act Release No. 71482 
(February 5, 2014), 79 FR 7570 (February 10, 2014) (Extension of 
Exemptions for Security-Based Swaps) (extending the expiration dates 
in interim final rules that provide exemptions under the Securities 
Act of 1933 (the ``Securities Act''), the Exchange Act, and the 
Trust Indenture Act of 1939 for those security-based swaps that 
prior to July 16, 2011 were security-based swap agreements and are 
defined as ``securities'' under the Securities Act and the Exchange 
Act as of July 16, 2011 due solely to the provisions of Title VII of 
the Dodd-Frank Act).
    \10\ See Securities Exchange Act Release No. 68864 (February 7, 
2013), 78 FR 10218 (February 13, 2013) (Order Extending Temporary 
Exemptions Under the Securities Exchange Act of 1934 in Connection 
With the Revision of the Definition of ``Security'' to Encompass 
Security-Based Swaps, and Request for Comment).
    \11\ See note 6 supra.
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    The Commission's rulemaking and development of guidance in relation 
to security-based swap activities is ongoing. As such, FINRA believes 
it is appropriate and in the public interest, in light of the 
Commission's goals as set forth in the Exemptive Release and the 
Temporary Exemptions Extension Release, to extend FINRA Rule 0180 for a 
limited period, to February 12, 2018, so as to avoid undue market 
disruptions resulting from the change to the definition of ``security'' 
under the Act.\12\
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    \12\ FINRA may amend the expiration date of FINRA Rule 0180 
based on any related Commission action.
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    FINRA has filed the proposed rule change for immediate 
effectiveness. FINRA is proposing that the implementation date of the 
proposed rule change will be February 11, 2017.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\13\ 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 that the proposed rule change would 
further the purposes of the Act because, consistent with the goals set 
forth by the Commission in the Exemptive Release and in the Temporary 
Exemptions Extension Release, the proposed rule change will help to 
avoid undue market disruption that could result if FINRA Rule 0180 
expires before the implementation of any SEC rules and guidance that 
would provide greater regulatory clarity in relation to security-based 
swap activities.
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    \13\ 15 U.S.C. 78o-3(b)(6).
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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. FINRA believes that the 
proposed rule change would prevent undue market disruption that would 
otherwise result if security-based swaps were, by virtue of the 
expansion of the Act's definition of ``security'' to encompass 
security-based swaps, subject to the application of all FINRA rules 
before the implementation of any SEC rules and guidance that would 
provide greater regulatory clarity in relation to security-based swap 
activities. FINRA believes that, by extending the expiration of FINRA 
Rule 0180, the proposed rule change will serve to promote regulatory 
clarity and consistency, thereby reducing burdens on the marketplace 
and facilitating investor protection.

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 \14\ and Rule 19b-
4(f)(6) thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 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-2017-001 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-2017-001. 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-2017-001 and should be 
submitted on or before February 2, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-00493 Filed 1-11-17; 8:45 am]
BILLING CODE 8011-01-P
3824 Federal Register / Vol. 82, No. 8 / Thursday, January 12, 2017 / Notices

Authority: 5 U.S.C. 3301 and 3302; E.O. II. Self-Regulatory Organization’s respect to security-based swaps, thereby
10577, 3 CFR, 1954–1958 Comp., p. 218. U.S. Statement of the Purpose of, and helping to avoid undue market
Office of Personnel Management. Statutory Basis for, the Proposed Rule disruptions resulting from the change to
Change the definition of ‘‘security’’ under the
Beth F. Cobert,
In its filing with the Commission, Act.8
Acting Director. The Commission, noting the need to
[FR Doc. 2017–00576 Filed 1–11–17; 8:45 am] FINRA included statements concerning
avoid a potential unnecessary
the purpose of and basis for the
BILLING CODE 6325–39–P disruption to the security-based swap
proposed rule change and discussed any
market in the absence of an extension of
comments it received on the proposed the Temporary Exemptions, and the
rule change. The text of these statements need for additional time to consider the
may be examined at the places specified potential impact of the revision of the
SECURITIES AND EXCHANGE
in Item IV below. FINRA has prepared Exchange Act definition of ‘‘security’’ in
COMMISSION
summaries, set forth in sections A, B, light of ongoing Commission
and C below, of the most significant rulemaking efforts under Title VII of the
[Release No. 34–79752; File No. SR–FINRA– aspects of such statements.
2017–001] Dodd-Frank Act, issued an Order which
A. Self-Regulatory Organization’s extended and refined the applicable
Self-Regulatory Organizations; Statement of the Purpose of, and expiration dates for the previously
Financial Industry Regulatory Statutory Basis for, the Proposed Rule granted Temporary Exemptions.9 The
Authority, Inc.; Notice of Filing and Change Commission previously noted that
Immediate Effectiveness of a Proposed extending the Temporary Exemptions
1. Purpose would facilitate a coordinated
Rule Change To Extend the Expiration
Date of FINRA Rule 0180 (Application On July 1, 2011, the SEC issued an consideration of these issues with the
of Rules to Security-Based Swaps) Order granting temporary exemptive
relief (the ‘‘Temporary Exemptions’’) limited application by their terms. For more
information about the rulebook consolidation
January 6, 2017. from compliance with certain process, see Information Notice, March 12, 2008
Pursuant to Section 19(b)(1) of the provisions of the Exchange Act in (Rulebook Consolidation Process).
Securities Exchange Act of 1934 connection with the revision, pursuant 8 In its Exemptive Release, the Commission noted

to Title VII of the Dodd-Frank Wall that the relief is targeted and does not include, for
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 instance, relief from the Act’s antifraud and anti-
Street Reform and Consumer Protection
notice is hereby given that on January 5, manipulation provisions. FINRA has noted that
Act (the ‘‘Dodd-Frank Act’’),4 of the FINRA Rule 0180 is similarly targeted. For instance,
2017, Financial Industry Regulatory
Exchange Act definition of ‘‘security’’ to paragraph (a) of FINRA Rule 0180 provides that
Authority, Inc. (‘‘FINRA’’) filed with the FINRA rules shall not apply to members’ activities
encompass security-based swaps.5
Securities and Exchange Commission and positions with respect to security-based swaps,
Consistent with the Commission’s except for FINRA Rules 2010 (Standards of
(‘‘SEC’’ or ‘‘Commission’’) the proposed
action, on July 8, 2011, FINRA filed for Commercial Honor and Principles of Trade), 2020
rule change as described in Items I, II, immediate effectiveness FINRA Rule (Use of Manipulative, Deceptive or Other
and III below, which Items have been 0180,6 which, with certain exceptions, Fraudulent Devices), 3310 (Anti-Money Laundering
prepared by FINRA. FINRA has is intended to temporarily limit the
Compliance Program) and 4240 (Margin
Requirements for Credit Default Swaps). See also
designated the proposed rule change as application of FINRA rules 7 with paragraphs (b) and (c) of FINRA Rule 0180
constituting a ‘‘non-controversial’’ rule (addressing the applicability of additional rules)
change under paragraph (f)(6) of Rule 4 Public Law 111–203, 124 Stat. 1376 (2010). and FINRA Rule 0180 Notice of Filing.
9 See Securities Exchange Act Release No. 71485
19b–4 under the Act,3 which renders 5 See Securities Exchange Act Release No. 64795
(February 5, 2014), 79 FR 7731 (February 10, 2014)
the proposal effective upon receipt of (July 1, 2011), 76 FR 39927 (July 7, 2011) (Order
(Order Extending Temporary Exemptions Under the
this filing by the Commission. The Granting Temporary Exemptions Under the
Securities Exchange Act of 1934 in Connection Securities Exchange Act of 1934 in Connection
Commission is publishing this notice to With the Pending Revision of the Definition of With the Revision of the Definition of ‘‘Security’’
solicit comments on the proposed rule ‘‘Security’’ To Encompass Security-Based Swaps, to Encompass Security-Based Swaps, and Request
and Request for Comment) (the ‘‘Exemptive for Comment) (‘‘Temporary Exemptions Extension
change from interested persons. Release’’) stating that, for those expiring Temporary
Release’’). The term ‘‘security-based swap’’ is
Exemptions ‘‘that are not directly linked to pending
I. Self-Regulatory Organization’s defined in Section 761 of the Dodd-Frank Act. See
security-based swap rulemakings, the Commission
Statement of the Terms of Substance of also Securities Exchange Act Release No. 67453
is extending the expiration date until the earlier of
(July 18, 2012), 77 FR 48207 (August 13, 2012)
the Proposed Rule Change (Further Definition of ‘‘Swap,’’ ‘‘Security-Based
such time as the Commission issues an order or rule
determining whether any continuing exemptive
Swap,’’ and ‘‘Security-Based Swap Agreement’’;
FINRA is proposing to extend the relief is appropriate for security-based swap
Mixed Swaps; Security-Based Swap Agreement
activities with respect to any of these Exchange Act
expiration date of FINRA Rule 0180 Recordkeeping).
provisions or until three years following the
6 See Securities Exchange Act Release No. 64884
(Application of Rules to Security-Based effective date of this Order.’’ The Temporary
(July 14, 2011), 76 FR 42755 (July 19, 2011) (Notice
Swaps) to February 12, 2018. FINRA of Filing and Immediate Effectiveness of Proposed
Exemptions Extension Release further stated that
for each expiring Temporary Exemption ‘‘that is
Rule 0180 temporarily limits, with Rule Change; File No. SR–FINRA–2011–033) related to pending security-based swap
certain exceptions, the application of (‘‘FINRA Rule 0180 Notice of Filing’’). See also rulemakings, the Commission is extending the
FINRA rules with respect to security- Securities Exchange Act Release No. 76850 (January expiration date until the compliance date for the
7, 2016), 81 FR 1666 (January 13, 2016) (Notice of related security-based swap-specific rulemaking.’’
based swaps. Filing and Immediate Effectiveness of Proposed See also Securities Exchange Act Release No. 71482
The text of the proposed rule change Rule Change; File No. SR–FINRA–2016–001) (February 5, 2014), 79 FR 7570 (February 10, 2014)
(extending the expiration date of FINRA Rule 0180 (Extension of Exemptions for Security-Based
is available on FINRA’s Web site at
mstockstill on DSK3G9T082PROD with NOTICES

to February 11, 2017). Swaps) (extending the expiration dates in interim
http://www.finra.org, at the principal 7 The current FINRA rulebook consists of: (1)
final rules that provide exemptions under the
office of FINRA and at the FINRA Rules; (2) NASD Rules; and (3) rules Securities Act of 1933 (the ‘‘Securities Act’’), the
Commission’s Public Reference Room. incorporated from NYSE (‘‘Incorporated NYSE Exchange Act, and the Trust Indenture Act of 1939
Rules’’). While the NASD Rules generally apply to for those security-based swaps that prior to July 16,
all FINRA members, the Incorporated NYSE Rules 2011 were security-based swap agreements and are
1 15 U.S.C. 78s(b)(1). apply only to those members of FINRA that are also defined as ‘‘securities’’ under the Securities Act and
2 17 CFR 240.19b–4. members of the NYSE. The FINRA Rules apply to the Exchange Act as of July 16, 2011 due solely to
3 17 CFR 240.19b–4(f)(6). all FINRA members, unless such rules have a more the provisions of Title VII of the Dodd-Frank Act).

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Federal Register / Vol. 82, No. 8 / Thursday, January 12, 2017 / Notices 3825

relief provided pursuant to FINRA Rule B. Self-Regulatory Organization’s change is consistent with the Act.
0180.10 In establishing Rule 0180, and Statement on Burden on Competition Comments may be submitted by any of
in extending the rule’s expiration date, FINRA does not believe that the the following methods:
FINRA noted its intent, pending the proposed rule change will result in any Electronic Comments
implementation of any SEC rules and burden on competition that is not
guidance that would provide greater necessary or appropriate in furtherance • Use the Commission’s Internet
regulatory clarity in relation to security- of the purposes of the Act. FINRA comment form (http://www.sec.gov/
based swap activities, to align the believes that the proposed rule change rules/sro.shtml); or
expiration date of FINRA Rule 0180 would prevent undue market disruption
• Send an email to rule-comments@
with the termination of relevant that would otherwise result if security-
sec.gov. Please include File Number SR–
provisions of the Temporary based swaps were, by virtue of the
FINRA–2017–001 on the subject line.
Exemptions.11 expansion of the Act’s definition of
The Commission’s rulemaking and ‘‘security’’ to encompass security-based Paper Comments
development of guidance in relation to swaps, subject to the application of all
FINRA rules before the implementation • Send paper comments in triplicate
security-based swap activities is to Secretary, Securities and Exchange
of any SEC rules and guidance that
ongoing. As such, FINRA believes it is Commission, 100 F Street NE.,
would provide greater regulatory clarity
appropriate and in the public interest, Washington, DC 20549–1090.
in relation to security-based swap
in light of the Commission’s goals as set activities. FINRA believes that, by
forth in the Exemptive Release and the All submissions should refer to File
extending the expiration of FINRA Rule
Temporary Exemptions Extension Number SR–FINRA–2017–001. This file
0180, the proposed rule change will
Release, to extend FINRA Rule 0180 for number should be included on the
serve to promote regulatory clarity and
a limited period, to February 12, 2018, consistency, thereby reducing burdens subject line if email is used. To help the
so as to avoid undue market disruptions on the marketplace and facilitating Commission process and review your
resulting from the change to the investor protection. comments more efficiently, please use
definition of ‘‘security’’ under the Act.12 only one method. The Commission will
C. Self-Regulatory Organization’s post all comments on the Commission’s
FINRA has filed the proposed rule Statement on Comments on the
change for immediate effectiveness. Internet Web site (http://www.sec.gov/
Proposed Rule Change Received From rules/sro.shtml). Copies of the
FINRA is proposing that the Members, Participants, or Others
implementation date of the proposed submission, all subsequent
rule change will be February 11, 2017. Written comments were neither amendments, all written statements
solicited nor received. with respect to the proposed rule
2. Statutory Basis change that are filed with the
III. Date of Effectiveness of the
Proposed Rule Change and Timing for Commission, and all written
FINRA believes that the proposed rule communications relating to the
change is consistent with the provisions Commission Action
proposed rule change between the
of Section 15A(b)(6) of the Act,13 which Because the foregoing proposed rule Commission and any person, other than
requires, among other things, that change does not: (i) Significantly affect those that may be withheld from the
FINRA rules must be designed to the protection of investors or the public public in accordance with the
prevent fraudulent and manipulative interest; (ii) impose any significant provisions of 5 U.S.C. 552, will be
acts and practices, to promote just and burden on competition; and (iii) become available for Web site viewing and
equitable principles of trade, and, in operative for 30 days from the date on printing in the Commission’s Public
general, to protect investors and the which it was filed, or such shorter time Reference Room, 100 F Street NE.,
public interest. FINRA believes that the as the Commission may designate, it has Washington, DC 20549, on official
proposed rule change would further the become effective pursuant to Section business days between the hours of
purposes of the Act because, consistent 19(b)(3)(A) of the Act 14 and Rule 19b– 10:00 a.m. and 3:00 p.m. Copies of such
with the goals set forth by the 4(f)(6) thereunder.15 filing also will be available for
Commission in the Exemptive Release At any time within 60 days of the
inspection and copying at the principal
and in the Temporary Exemptions filing of the proposed rule change, the
office of FINRA. All comments received
Extension Release, the proposed rule Commission summarily may
will be posted without change; the
change will help to avoid undue market temporarily suspend such rule change if
Commission does not edit personal
disruption that could result if FINRA it appears to the Commission that such
identifying information from
Rule 0180 expires before the action is necessary or appropriate in the
submissions. You should submit only
implementation of any SEC rules and public interest, for the protection of
information that you wish to make
guidance that would provide greater investors, or otherwise in furtherance of
available publicly. All submissions
regulatory clarity in relation to security- the purposes of the Act. If the
should refer to File Number SR–FINRA–
based swap activities. Commission takes such action, the
2017–001 and should be submitted on
Commission shall institute proceedings
to determine whether the proposed rule or before February 2, 2017.
10 See Securities Exchange Act Release No. 68864

(February 7, 2013), 78 FR 10218 (February 13, 2013) should be approved or disapproved. For the Commission, by the Division of
(Order Extending Temporary Exemptions Under the Trading and Markets, pursuant to delegated
IV. Solicitation of Comments
mstockstill on DSK3G9T082PROD with NOTICES

Securities Exchange Act of 1934 in Connection authority.16
With the Revision of the Definition of ‘‘Security’’ Interested persons are invited to Eduardo A. Aleman,
to Encompass Security-Based Swaps, and Request submit written data, views and
for Comment). Assistant Secretary.
11 See note 6 supra.
arguments concerning the foregoing,
[FR Doc. 2017–00493 Filed 1–11–17; 8:45 am]
12 FINRA may amend the expiration date of including whether the proposed rule
BILLING CODE 8011–01–P
FINRA Rule 0180 based on any related Commission
action. 14 15 U.S.C. 78s(b)(3)(A).
13 15 U.S.C. 78o–3(b)(6). 15 17 CFR 240.19b–4(f)(6). 16 17 CFR 200.30–3(a)(12).

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Document Created: 2017-03-21 14:40:09
Document Modified: 2017-03-21 14:40:09
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		82 FR 3824