82 FR 40610 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Clarify Application of FINRA Rule 11140 (Transactions in Securities “Ex-Dividend,” “Ex-rights” or “Ex-Warrants”) in Connection With the Implementation of the Shortened Settlement Cycle (T+2) on September 5, 2017
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 164 (August 25, 2017)
Federal Register Volume 82, Issue 164 (August 25, 2017)
| Page Range | 40610-40612 | |
| FR Document | 2017-18000 |
[Federal Register Volume 82, Number 164 (Friday, August 25, 2017)] [Notices] [Pages 40610-40612] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-18000] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81448; File No. SR-FINRA-2017-026] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Clarify Application of FINRA Rule 11140 (Transactions in Securities ``Ex-Dividend,'' ``Ex-rights'' or ``Ex- Warrants'') in Connection With the Implementation of the Shortened Settlement Cycle (T+2) on September 5, 2017 August 21, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'' or ``SEA'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on August 17, 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 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 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 Substance of the Proposed Rule Change FINRA is proposing to address the application of FINRA Rule 11140 (Transactions in Securities ``Ex-Dividend,'' ``Ex-Rights'' or ``Ex- Warrants'') as it relates to establishing ex-dividend dates in connection with the implementation of the T+2 settlement cycle on September 5, 2017. No change to the text of FINRA Rule 11140(b)(1) is required by this proposal. 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose Background On March 22, 2017, the SEC adopted amendments to SEA Rule 15c6-1(a) to shorten the standard settlement cycle for U.S. secondary market transactions in equities, corporate and municipal bonds, unit investment trusts and financial instruments composed of these products, from three business days after the trade date (``T+3'') to two business days after the trade date (``T+2'').\4\ The industry-wide initiative is designed to reduce a number of risks, including credit risk, market risk, and liquidity risk and, as a result, reduce systemic risk for U.S. market participants.\5\ The compliance date for the rule amendments is September 5, 2017. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 80295 (March 22, 2017), 82 FR 15564 (March 29, 2017) (Securities Transaction Settlement Cycle) (File No. S7-22-16) (stating that, as amended, SEA Rule 15c6-1(a) will prohibit broker-dealers from effecting or entering into a contract for the purchase or sale of a security (other than an exempted security, government security, municipal security, commercial paper, bankers' acceptances or commercial bills) that provides for payment of funds and delivery of securities later than the second business day after the date of the contract, unless otherwise expressly agreed to by the parties at the time of the transaction). \5\ See supra note 4. --------------------------------------------------------------------------- In support of this initiative, FINRA proposed changes to its rules pertaining to securities settlement by, among other things, amending the definition of ``regular way'' settlement as occurring on T+2.\6\ On February 9, 2017, the SEC approved FINRA's amendments to the applicable rules, including Rule 11140(b), that establish or reference T+3 to conform to T+2, and these amendments will become effective on September 5, 2017.\7\ --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 79648 (December 21, 2016), 81 FR 95705 (December 28, 2016) (Notice of Filing of File No. SR-FINRA-2016-047). \7\ See Securities Exchange Act Release No. 80004 (February 9, 2017), 82 FR 10835 (February 15, 2017) (Order Approving File No. SR- FINRA-2016-047) and Securities Exchange Act Release No. 80004A (March 6, 2017), 82 FR 13517 (March 13, 2017) (Correction to Order Approving File No. SR-FINRA-2016-047). --------------------------------------------------------------------------- During the transition period the industry and self-regulatory organizations (``SROs''), including The Depository Trust Company (``DTC'') which processes corporate action events, have raised concern that the [[Page 40611]] September 5, 2017 industry-wide transition date from T+3 to T+2 will result in September 7, 2017 being a ``double'' settlement date for trades that occur on September 1, 2017 (under T+3 and reflecting the Labor Day holiday on September 4, 2017) and trades that occur on September 5, 2017 (under T+2), which generally will result in investors who trade on either date being deemed a record holder of September 7, 2017.\8\ In order to avoid confusion about the proper settlement date and to coordinate with other SROs, FINRA is proposing not to establish September 5, 2017 as an ex-dividend date for applicable securities. --------------------------------------------------------------------------- \8\ See, e.g., Nasdaq Issuer Alert 2017-001, Changes to Ex- dividend Procedures Effective September 5, 2017 to Accommodate T+2 Settlement, http://nasdaq.cchwallstreet.com/nasdaq/pdf/nasdaq-issalerts/2017/2017-001.pdf; NYSE, NYSE MKT, NYSE ARCA: Changes Related to the Shortened Settlement Cycle (T+2) (July 11, 2017), https://www.nyse.com/trader-update/history#110000069618. --------------------------------------------------------------------------- Proposal FINRA is proposing to address the application of Rule 11140(b) as it relates to the ex-dividend date in connection with the implementation of the T+2 settlement cycle on September 5, 2017. As amended to address T+2, the timeframes in Rule 11140 to establish an ex-dividend date were generally reduced by one business day. The ex-dividend date (or ex-date) is the date on or after which a security is traded without a specific dividend or distribution.\9\ Rule 11140(b) provides for the determination of normal ex-dividend and ex- warrant dates for certain types of dividends and distributions. As amended to address T+2, Rule 11140(b)(1) provides that with respect to cash dividends or distributions, or stock dividends, and the issuance or distribution of warrants, which are less than 25% of the value of the subject security (i.e., ``regular'' distributions), if the definitive information is received sufficiently in advance of the record date, the date designated as the ``ex-dividend date'' is the first business day preceding the record date if the record date falls on a business day, or the second business day preceding the record date if the record date falls on a day designated by FINRA's Uniform Practice Code (``UPC'') Committee as a non-delivery date.\10\ Rule 11140(b)(2), which did not require amendment in connection with T+2, establishes the ex-dividend date as the first business day following the payable date with respect to cash dividends or distributions, stock dividends and/or splits, and the distribution of warrants, which are 25% or greater of the value of the subject security (i.e., ``large'' distributions).\11\ --------------------------------------------------------------------------- \9\ See generally Notice to Members 00-54 (August 2000). \10\ The record date is the date fixed by an issuer for the purpose of determining the holder of the security who is eligible to receive the dividend, interest or principal payment, or any other distribution relating to the security. See generally Notice to Members 00-54 (August 2000). \11\ The payable date is the date that the dividend is sent to the record owner of the security. See generally Notice to Members 00-54 (August 2000). --------------------------------------------------------------------------- Consistent with the compliance date of the amendments to SEA Rule 15c6-1(a), the industry and FINRA have adopted Tuesday, September 5, 2017 as the transition date to the T+2 settlement cycle.\12\ To mitigate the potential confusion that may result concerning proper settlement during the transition period, FINRA, in coordination with other SROs, supports the proposal that Tuesday, September 5, 2017 should not be designated as an ex-dividend date.\13\ --------------------------------------------------------------------------- \12\ See Regulatory Notice 17-19 (SEC Approves Amendments to FINRA Rules to Conform to the Shortened Standard Settlement Cycle for Most Broker-Dealer Transactions From Three Business Days (T+3) to Two Business Days After the Trade Date (T+2)) (May 2017). \13\ See, e.g., Nasdaq Issuer Alert 2017-001, Changes to Ex- dividend Procedures Effective September 5, 2017 to Accommodate T+2 Settlement, http://nasdaq.cchwallstreet.com/nasdaq/pdf/nasdaq-issalerts/2017/2017-001.pdf; NYSE, NYSE MKT, NYSE ARCA: Changes Related to the Shortened Settlement Cycle (T+2) (July 11, 2017), http://www.ust2.com/pdfs/NYSE-T2-Announcements.pdf. --------------------------------------------------------------------------- Accordingly, FINRA proposes to interpret Rule 11140(b)(1) so that the first record date to which the new ex-dividend date determination will be applied will be Thursday, September 7, 2017. The ex-dividend dates for ``regular'' distributions during the transition to T+2 will be as follows: ------------------------------------------------------------------------ Record date Ex-date ------------------------------------------------------------------------ Friday, September 1, 2017 \14\............ Wednesday, August 30, 2017. Tuesday, September 5, 2017 \15\........... Thursday, August 31, 2017. \16\ Wednesday, September 6, 2017.............. Friday, September 1, 2017. \17\ Thursday, September 7, 2017 \18\.......... Wednesday, September 6, 2017. ------------------------------------------------------------------------ As described above, the ex-date for ``large'' distributions under Rule 11140(b)(2) is the first business day following the payable date. This provision was not amended in connection with T+2. In order to ensure that September 5, 2017 will not be designated as an ex-dividend date for ``large'' distributions, FINRA will advise issuers to not set September 1, 2017 as the payable date for any ``large'' distribution under Rule 11140(b)(2) and proposes to interpret Rule 11140(b)(2) so that, if an issuer sets September 1, 2017 as the payable date for a ``large'' distribution, the ex-dividend date will be September 6, 2017, not September 5, 2017. --------------------------------------------------------------------------- \14\ The last day of the T+3 settlement cycle. \15\ The first day of the T+2 settlement cycle. \16\ Monday, September 4, 2017 is Labor Day, a Federal holiday. \17\ See supra note 16. \18\ The date on which previous trades settling on a T+3 settlement cycle and current trades on the T+2 settlement cycle will be processed. --------------------------------------------------------------------------- FINRA has filed the proposed rule change for immediate effectiveness and has requested that the SEC waive the requirement that the proposed rule change not become operative for 30 days after the date of the filing, so FINRA can implement the proposed rule change immediately. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,\19\ 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, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, and, in general, to protect investors and the public interest. FINRA believes that the proposal to address the application of Rule 11140(b) to exclude September 5, 2017 as an ex-dividend date for ``regular'' or ``large'' distributions supports the collective effort among the industry and SROs to mitigate the potential confusion concerning proper settlement during the transition from the T+3 settlement cycle to the T+2 settlement cycle. --------------------------------------------------------------------------- \19\ 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. As noted above, the SROs support that no securities will be subject to an ex-date ruling on September 5, 2017. The primary benefit of this proposed rule change is to minimize potential confusion about proper settlement that may arise during the transition to the T+2 settlement cycle.\20\ FINRA believes [[Page 40612]] that the proposed rule change would not impose any additional costs on the industry. As noted above, the proposed rule change does not change the text to Rule 11140(b). Instead, the proposed rule change interprets the application of the rule solely to refrain from designating September 5, 2017 as an ex-dividend date for ``regular'' or ``large'' distributions. --------------------------------------------------------------------------- \20\ As a result of the September 5, 2017 transition date for regular-way settlement from T+3 to T+2, September 7, 2017 will be a ``double'' settlement date for trades that occur on September 1, 2017 (under T+3 and reflecting the Labor Day holiday on September 4, 2017) and trades that occur on September 5, 2017 (under T+2). --------------------------------------------------------------------------- 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 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, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \21\ and Rule 19b-4(f)(6) thereunder.\22\ --------------------------------------------------------------------------- \21\ 15 U.S.C. 78s(b)(3)(A). \22\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires FINRA to give the Commission written notice of FINRA's intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. FINRA has satisfied this requirement. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \23\ normally does not become operative for 30 days after the date of filing. However, pursuant to Rule 19b-4(f)(6)(iii),\24\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. FINRA has asked the Commission to waive the 30-day operative delay so that the proposal may become operative upon filing. FINRA has stated that the purpose of the proposed rule change is to minimize confusion about proper settlement that may arise during the transition to the T+2 settlement cycle on September 5, 2017. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest to avoid the confusion that could arise in connection with the transition to the T+2 settlement cycle on September 5, 2017, if normal or large distributions were to be ex-dividend on that date. Accordingly, the Commission hereby waives the 30-day operative delay requirement and designates the proposed rule change as operative upon filing.\25\ --------------------------------------------------------------------------- \23\ 17 CFR 240.19b-4(f)(6). \24\ 17 CFR 240.19b-4(f)(6)(iii). \25\ For purposes only of waiving the 30-day operative delay, the Commission has also 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 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 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-FINRA-2017-026 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-2017-026. 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 the 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-2017-026, and should be submitted on or before September 15, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\26\ --------------------------------------------------------------------------- \26\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2017-18000 Filed 8-24-17; 8:45 am] BILLING CODE 8011-01-P
![40610 Federal Register / Vol. 82, No. 164 / Friday, August 25, 2017 / Notices
(collectively, ‘‘funds’’) deemed to have SECURITIES AND EXCHANGE in Item IV below. FINRA has prepared
registered an indefinite amount of COMMISSION summaries, set forth in sections A, B,
securities to file, not later than 90 days and C below, of the most significant
[Release No. 34–81448; File No. SR–FINRA–
after the end of any fiscal year in which aspects of such statements.
2017–026]
it has publicly offered such securities, A. Self-Regulatory Organization’s
Form 24F–2 (17 CFR 274.24) with the Self-Regulatory Organizations; Statement of the Purpose of, and the
Commission. Form 24F–2 is the annual Financial Industry Regulatory Statutory Basis for, the Proposed Rule
notice of securities sold by funds that Authority, Inc.; Notice of Filing and Change
accompanies the payment of registration Immediate Effectiveness of a Proposed
fees with respect to the securities sold Rule Change To Clarify Application of 1. Purpose
during the fiscal year. FINRA Rule 11140 (Transactions in Background
The Commission estimates that 7,284 Securities ‘‘Ex-Dividend,’’ ‘‘Ex-rights’’ On March 22, 2017, the SEC adopted
funds file Form 24F–2 on the required or ‘‘Ex-Warrants’’) in Connection With amendments to SEA Rule 15c6–1(a) to
annual basis. The average annual the Implementation of the Shortened shorten the standard settlement cycle
burden per respondent for Form 24F–2 Settlement Cycle (T+2) on September for U.S. secondary market transactions
is estimated to be two hours. The total 5, 2017 in equities, corporate and municipal
annual burden for all respondents to August 21, 2017. bonds, unit investment trusts and
Form 24F–2 is estimated to be 14,568 Pursuant to Section 19(b)(1) of the financial instruments composed of these
hours. Securities Exchange Act of 1934 (‘‘Act’’ products, from three business days after
The estimate of average burden hours or ‘‘SEA’’) 1 and Rule 19b–4 the trade date (‘‘T+3’’) to two business
is made solely for the purposes of the thereunder,2 notice is hereby given that days after the trade date (‘‘T+2’’).4 The
Paperwork Reduction Act, and is not on August 17, 2017, Financial Industry industry-wide initiative is designed to
derived from a comprehensive or even Regulatory Authority, Inc. (‘‘FINRA’’) reduce a number of risks, including
a representative survey or study of the filed with the Securities and Exchange credit risk, market risk, and liquidity
costs of Commission rules. Commission (‘‘SEC’’ or ‘‘Commission’’) risk and, as a result, reduce systemic
the proposed rule change as described risk for U.S. market participants.5 The
Compliance with the collection of compliance date for the rule
information required by Form 24F–2 is in Items I and II below, which Items
have been prepared by FINRA. FINRA amendments is September 5, 2017.
mandatory. The Form 24F–2 filing that In support of this initiative, FINRA
must be made to the Commission is has designated the proposed rule change
proposed changes to its rules pertaining
available to the public. An agency may as constituting a ‘‘non-controversial’’
to securities settlement by, among other
not conduct or sponsor, and a person is rule change under paragraph (f)(6) of
things, amending the definition of
not required to respond to, a collection Rule 19b–4 under the Act,3 which
‘‘regular way’’ settlement as occurring
of information unless it displays a renders the proposal effective upon on T+2.6 On February 9, 2017, the SEC
currently valid control number. receipt of this filing by the Commission. approved FINRA’s amendments to the
The Commission is publishing this applicable rules, including Rule
The Commission requests written notice to solicit comments on the
comments on: (a) Whether the collection 11140(b), that establish or reference T+3
proposed rule change from interested to conform to T+2, and these
of information is necessary for the persons.
proper performance of the functions of amendments will become effective on
the Commission, including whether the I. Self-Regulatory Organization’s September 5, 2017.7
Statement of the Terms of Substance of During the transition period the
information has practical utility; (b) the
the Proposed Rule Change industry and self-regulatory
accuracy of the Commission’s estimate
organizations (‘‘SROs’’), including The
of the burdens of the collection of FINRA is proposing to address the
Depository Trust Company (‘‘DTC’’)
information; (c) ways to enhance the application of FINRA Rule 11140 which processes corporate action
quality, utility, and clarity of the (Transactions in Securities ‘‘Ex- events, have raised concern that the
information collected; and (d) ways to Dividend,’’ ‘‘Ex-Rights’’ or ‘‘Ex-
minimize the burden of the collection of Warrants’’) as it relates to establishing 4 See Securities Exchange Act Release No. 80295
information on respondents, including ex-dividend dates in connection with (March 22, 2017), 82 FR 15564 (March 29, 2017)
through the use of automated collection the implementation of the T+2 (Securities Transaction Settlement Cycle) (File No.
techniques or other forms of information settlement cycle on September 5, 2017. S7–22–16) (stating that, as amended, SEA Rule
15c6–1(a) will prohibit broker-dealers from
technology. Consideration will be given No change to the text of FINRA Rule effecting or entering into a contract for the purchase
to comments and suggestions submitted 11140(b)(1) is required by this proposal. or sale of a security (other than an exempted
in writing within 60 days of this security, government security, municipal security,
II. Self-Regulatory Organization’s commercial paper, bankers’ acceptances or
publication. Statement of the Purpose of, and commercial bills) that provides for payment of
Please direct your written comments Statutory Basis for, the Proposed Rule funds and delivery of securities later than the
second business day after the date of the contract,
to Pamela Dyson, Director/Chief Change unless otherwise expressly agreed to by the parties
Information Officer, Securities and In its filing with the Commission, at the time of the transaction).
Exchange Commission, C/O Remi FINRA included statements concerning 5 See supra note 4.
Pavlik-Simon, 100 F Street NE., the purpose of and basis for the
6 See Securities Exchange Act Release No. 79648
Washington, DC 20549; or send an email (December 21, 2016), 81 FR 95705 (December 28,
sradovich on DSK3GMQ082PROD with NOTICES
proposed rule change and discussed any 2016) (Notice of Filing of File No. SR–FINRA–
to: PRA_Mailbox@sec.gov. comments it received on the proposed 2016–047).
Dated: August 22, 2017. rule change. The text of these statements 7 See Securities Exchange Act Release No. 80004
may be examined at the places specified (February 9, 2017), 82 FR 10835 (February 15, 2017)
Eduardo A. Aleman, (Order Approving File No. SR–FINRA–2016–047)
Assistant Secretary. and Securities Exchange Act Release No. 80004A
1 15 U.S.C. 78s(b)(1). (March 6, 2017), 82 FR 13517 (March 13, 2017)
[FR Doc. 2017–18074 Filed 8–24–17; 8:45 am] 2 17 CFR 240.19b–4. (Correction to Order Approving File No. SR–
BILLING CODE P 3 17 CFR 240.19b–4(f)(6). FINRA–2016–047).
VerDate Sep<11>2014 17:40 Aug 24, 2017 Jkt 241001 PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 E:\FR\FM\25AUN1.SGM 25AUN1](https://thefederalregister.org/doc/82_FR_40774/page/1.svg)
![40612 Federal Register / Vol. 82, No. 164 / Friday, August 25, 2017 / Notices
that the proposed rule change would not distributions were to be ex-dividend on printing in the Commission’s Public
impose any additional costs on the that date. Accordingly, the Commission Reference Room, 100 F Street NE.,
industry. As noted above, the proposed hereby waives the 30-day operative Washington, DC 20549, on official
rule change does not change the text to delay requirement and designates the business days between the hours of
Rule 11140(b). Instead, the proposed proposed rule change as operative upon 10:00 a.m. and 3:00 p.m. Copies of the
rule change interprets the application of filing.25 filing also will be available for
the rule solely to refrain from At any time within 60 days of the inspection and copying at the principal
designating September 5, 2017 as an ex- filing of the proposed rule change, the office of FINRA. All comments received
dividend date for ‘‘regular’’ or ‘‘large’’ Commission summarily may will be posted without change; the
distributions. temporarily suspend such rule change if Commission does not edit personal
it appears to the Commission that such identifying information from
C. Self-Regulatory Organization’s action is necessary or appropriate in the submissions. You should submit only
Statement on Comments on the public interest, for the protection of information that you wish to make
Proposed Rule Change Received From investors, or otherwise in furtherance of available publicly. All submissions
Members, Participants, or Others the purposes of the Act. If the should refer to File Number SR–FINRA–
Written comments were neither Commission takes such action, the 2017–026, and should be submitted on
solicited nor received. Commission shall institute proceedings or before September 15, 2017.
III. Date of Effectiveness of the to determine whether the proposed rule For the Commission, by the Division of
Proposed Rule Change and Timing for should be approved or disapproved. Trading and Markets, pursuant to delegated
Commission Action IV. Solicitation of Comments authority.26
Robert W. Errett,
Because the proposed rule change Interested persons are invited to
Deputy Secretary.
does not (i) significantly affect the submit written data, views, and
protection of investors or the public [FR Doc. 2017–18000 Filed 8–24–17; 8:45 am]
arguments concerning the foregoing,
interest; (ii) impose any significant including whether the proposed rule BILLING CODE 8011–01–P
burden on competition; and (iii) become change is consistent with the Act.
operative for 30 days from the date on Comments may be submitted by any of
which it was filed, or such shorter time SECURITIES AND EXCHANGE
the following methods:
as the Commission may designate, the COMMISSION
proposed rule change has become Electronic Comments
Submission for OMB Review;
effective pursuant to Section 19(b)(3)(A) • Use the Commission’s Internet
Comment Request
of the Act 21 and Rule 19b–4(f)(6) comment form (http://www.sec.gov/
thereunder.22 rules/sro.shtml); or Upon Written Request, Copies Available
A proposed rule change filed under • Send an email to rule-comments@ From: Securities and Exchange
Rule 19b–4(f)(6) 23 normally does not sec.gov. Please include File Number SR– Commission, Office of FOIA Services,
become operative for 30 days after the FINRA–2017–026 on the subject line. 100 F Street NE., Washington, DC
date of filing. However, pursuant to Paper Comments 20549–2736.
Rule 19b–4(f)(6)(iii),24 the Commission Extension:
may designate a shorter time if such • Send paper comments in triplicate
Rule 15c2–5, SEC File No. 270–195; OMB
action is consistent with the protection to Secretary, Securities and Exchange Control No. 3235–0198
of investors and the public interest. Commission, 100 F Street NE.,
Washington, DC 20549–1090. Notice is hereby given that pursuant
FINRA has asked the Commission to to the Paperwork Reduction Act of 1995
waive the 30-day operative delay so that All submissions should refer to File
Number SR–FINRA–2017–026. This file (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
the proposal may become operative Securities and Exchange Commission
upon filing. FINRA has stated that the number should be included on the
(‘‘Commission’’) has submitted to the
purpose of the proposed rule change is subject line if email is used. To help the
Office of Management and Budget
to minimize confusion about proper Commission process and review your
(‘‘OMB’’) a request for approval of
settlement that may arise during the comments more efficiently, please use
extension of the previously approved
transition to the T+2 settlement cycle on only one method. The Commission will
collection of information provided for in
September 5, 2017. The Commission post all comments on the Commission’s
Rule 15c2–5 (17 CFR 240.15c2–5),
believes that waiving the 30-day Internet Web site (http://www.sec.gov/
under the Securities Exchange Act of
operative delay is consistent with the rules/sro.shtml). Copies of the
1934 (15 U.S.C. 78 et seq.) (‘‘Exchange
protection of investors and the public submission, all subsequent
Act’’).
interest to avoid the confusion that amendments, all written statements Rule 15c2–5 prohibits a broker-dealer
could arise in connection with the with respect to the proposed rule from arranging or extending certain
transition to the T+2 settlement cycle on change that are filed with the loans to persons in connection with the
September 5, 2017, if normal or large Commission, and all written offer or sale of securities unless, before
communications relating to the any element of the transaction is entered
September 4, 2017) and trades that occur on proposed rule change between the into, the broker-dealer: (1) Delivers to
September 5, 2017 (under T+2). Commission and any person, other than the person a written statement
21 15 U.S.C. 78s(b)(3)(A).
those that may be withheld from the containing the exact nature and extent
22 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
public in accordance with the
sradovich on DSK3GMQ082PROD with NOTICES
4(f)(6)(iii) requires FINRA to give the Commission of the person’s obligations under the
written notice of FINRA’s intent to file the proposed provisions of 5 U.S.C. 552, will be loan arrangement; the risks and
rule change, along with a brief description and text available for Web site viewing and disadvantages of the loan arrangement;
of the proposed rule change, at least five business and all commissions, discounts, and
days prior to the date of filing of the proposed rule 25 For purposes only of waiving the 30-day
change, or such shorter time as designated by the other remuneration received and to be
operative delay, the Commission has also
Commission. FINRA has satisfied this requirement. considered the proposed rule’s impact on received in connection with the
23 17 CFR 240.19b–4(f)(6).
efficiency, competition, and capital formation. See
24 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 26 17 CFR 200.30–3(a)(12).
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Document Created: 2018-10-24 12:42:24
Document Modified: 2018-10-24 12:42:24
| 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 40610 |
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