82 FR 46559 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Approving a Proposed Rule Change Relating to Capital Acquisition Broker Rules 203 (Engaging in Distribution and Solicitation Activities With Government Entities) and 458 (Books and Records Requirements for Government Distribution and Solicitation Activities)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 192 (October 5, 2017)
Federal Register Volume 82, Issue 192 (October 5, 2017)
| Page Range | 46559-46561 | |
| FR Document | 2017-21413 |
[Federal Register Volume 82, Number 192 (Thursday, October 5, 2017)] [Notices] [Pages 46559-46561] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-21413] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81781; File No. SR-FINRA-2017-027] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Approving a Proposed Rule Change Relating to Capital Acquisition Broker Rules 203 (Engaging in Distribution and Solicitation Activities With Government Entities) and 458 (Books and Records Requirements for Government Distribution and Solicitation Activities) September 29, 2017. I. Introduction On August 17, 2017, Financial Industry Regulatory Authority, Inc. (``FINRA'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to adopt Capital Acquisition Broker Rules 203 (Engaging in Distribution and Solicitation Activities with Government [[Page 46560]] Entities) and 458 (Books and Records Requirements for Government Distribution and Solicitation Activities). These rules would apply established ``pay-to-play'' and related recordkeeping rules to the activities of member firms that have elected to be governed by the Capital Acquisition Broker (``CAB'') \3\ Rules and that engage in distribution or solicitation activities for compensation with government entities on behalf of investment advisers. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ CABs are member firms that engage in a limited range of activities, essentially advising companies and private equity funds on capital raising and corporate restructuring, and acting as placement agents for sales of unregistered securities to institutional investors under limited conditions. See FINRA Regulatory Notice 16-37 (October 2016), at 1. --------------------------------------------------------------------------- The proposed rule change was published for comment in the Federal Register on August 24, 2017.\4\ The public comment period closed on September 14, 2017. No comment letters were received in response to the Notice. This order approves the proposed rule change. --------------------------------------------------------------------------- \4\ See Exchange Act Release No. 81438 (August 17, 2017), 82 FR 40181 (August 24, 2017) (Notice of Filing of a Proposed Rule Change Relating to Capital Acquisition Broker Rules 203 and 458) (``Notice''). --------------------------------------------------------------------------- II. Description of the Proposed Rule Change As discussed in the Notice and described below, the proposed rule change seeks to clarify that FINRA's existing pay-to-play rules and related recordkeeping requirements apply to CABs. Under the proposed rules, CABs would be subject to the same restrictions designed to halt pay-to-play practices as non-CAB member firms, which would effectively allow them to engage in distribution and solicitation activities with government entities on behalf of investment advisers.\5\ --------------------------------------------------------------------------- \5\ ``Pay-to-play'' practices typically involve a person making cash or in-kind political contributions (or soliciting or coordinating others to make such contributions) to help finance the election campaigns of state or local officials as a quid pro quo for the award of government contracts. See FINRA Regulatory Notice 16-40 (October 2016) at 9, note 1. --------------------------------------------------------------------------- A. Pay-to-Play Rules In July 2010, the SEC adopted Rule 206(4)-5 under the Investment Advisers Act of 1940 addressing pay-to-play practices by investment advisers (the ``SEC Pay-to-Play Rule'').\6\ The SEC Pay-to-Play Rule prohibits, in part, an investment adviser and its covered associates from providing or agreeing to provide, directly or indirectly, payment to any person to solicit a government entity for investment advisory services on behalf of the investment adviser unless the person is a ``regulated person.'' \7\ A ``regulated person'' includes a member firm, provided that: (a) FINRA rules prohibit member firms from engaging in distribution or solicitation activities if political contributions have been made; and (b) the SEC finds, by order, that such rules impose substantially equivalent or more stringent restrictions on member firms than the SEC Pay-to-Play Rule imposes on investment advisers and that such rules are consistent with the objectives of the SEC Pay-to-Play Rule.\8\ --------------------------------------------------------------------------- \6\ See Investment Advisers Act Release No. 3043 (July 1, 2010), 75 FR 41018 (July 14, 2010) (Political Contributions by Certain Investment Advisers). See also Investment Advisers Act Release No. 3221 (June 22, 2011), 76 FR 42950 (July 19, 2011) (Rules Implementing Amendments to the Investment Advisers Act of 1940); Investment Advisers Act Release No. 3418 (June 8, 2012), 77 FR 35263 (June 13, 2012) (Political Contributions by Certain Investment Advisers; Ban on Third Party Solicitation; Extension of Compliance Date). \7\ See Investment Advisers Act Rule 206(4)-5(a)(2)(i)(A), 17 CFR 275.206(4)-5(a)(2)(i)(A). \8\ See Investment Advisers Act Rule 206(4)-5(f)(9), 17 CFR 275.206(4)-5(f)(9). A ``regulated person'' also includes SEC- registered investment advisers and SEC-registered municipal advisors, subject to specified conditions. --------------------------------------------------------------------------- Based on the framework of the SEC Pay-to-Play Rule, FINRA proposed Rules 2030 and 4580, which establish a comprehensive regime to regulate the activities of FINRA member firms that engage in distribution or solicitation activities with government entities on behalf of investment advisers, and to deter member firms from engaging in pay-to- play practices.\9\ The SEC approved these rules on August 25, 2016,\10\ and later found that Rule 2030 imposes substantially equivalent or more stringent restrictions on member firms than the SEC Pay-to-Play Rule imposes on investment advisers, and that it is consistent with the objectives of the SEC Pay-to-Play Rule.\11\ Rules 2030 and 4580 became effective on August 20, 2017.\12\ --------------------------------------------------------------------------- \9\ See Securities Exchange Act Release No. 76767 (December 24, 2015), 80 FR 81650 (December 30, 2015). \10\ See Securities Exchange Act Release No. 78683 (August 25, 2016), 81 FR 60051 (August 31, 2016). \11\ See Investment Advisers Act Release No. 4532 (September 20, 2016), 81 FR 66526 (September 28, 2016). \12\ See FINRA Regulatory Notice 16-40 (October 2016). --------------------------------------------------------------------------- B. FINRA CAB Rules On August 18, 2016, the SEC approved a separate set of FINRA rules for firms that meet the definition of a CAB and that elect to be governed under this rule set.\13\ Member firms that elect to be governed under the CAB rule set are not permitted, among other things, to carry or maintain customer accounts, handle customers' funds or securities, accept customers' trading orders, or engage in proprietary trading or market-making. --------------------------------------------------------------------------- \13\ See Securities Exchange Act Release No. 78617 (August 18, 2016), 81 FR 57948 (August 24, 2016) (Order Approving Rule Change as Modified by Amendment Nos. 1 and 2 to Adopt FINRA Capital Acquisition Broker Rules). --------------------------------------------------------------------------- The CAB Rules became effective on April 14, 2017. In order to provide new CAB applicants with lead time to apply for FINRA membership and obtain the necessary qualifications and registrations, CAB Rules 101-125 became effective on January 3, 2017. C. Addition of FINRA Pay-to-Play Rules to CAB Rulebook The CAB Rules subject CABs to a number of FINRA Rules, but do not expressly provide that FINRA Rules 2030 and 4580 apply to CABs. As explained by FINRA in the Notice, the proposed rule change sought to make clear that CABs are subject to FINRA's pay-to-play rule, which would make CABs, like non-CABs, ``regulated persons'' that are subject to restrictions designed to halt pay-to-play practices and thus can engage in distribution and solicitation activities with government entities on behalf of investment advisers in accordance with the SEC's Pay-to-Play Rule. To make this clarification, FINRA proposed the addition of CAB Rules 203 and 458 to the CAB rule book. CAB Rule 203 would provide that all capital acquisition brokers are subject to existing FINRA Rule 2030. CAB Rule 458 would provide that all capital acquisition brokers are subject to existing FINRA Rule 4580. III. Comment Summary As noted above, no comment letters were received on the proposed rule change. IV. Discussion and Commission Findings After careful review of the proposed rule change, the Commission finds that the proposal is consistent with the requirements of the Exchange Act and the rules and regulations thereunder that are applicable to a national securities association.\14\ The Commission finds that the proposed rule change is consistent with Section 15A(b)(6) of the Exchange Act,\15\ which requires, among other things, that FINRA rules be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable [[Page 46561]] principles of trade, and, in general, to protect investors and the public interest. Specifically, the Commission finds that the proposed rule change is consistent with the Exchange Act for the reasons expressed in the Order Approving a Proposed Rule Change to Adopt FINRA Rule 2030--namely, that this proposed rule will discourage CABs, like non-CAB member firms, from engaging in pay-to-play practices that may create market distortions, impede a free and open market, and harm investors and the public interest.\16\ --------------------------------------------------------------------------- \14\ In approving this rule change, the Commission has considered the rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \15\ 15 U.S.C. 78o-3(b)(6). \16\ See Securities Exchange Act Release No. 78683 (August 25, 2016), 81 FR at 60063 (August 31, 2016). --------------------------------------------------------------------------- The Commission agrees with FINRA that the proposed rule change will clarify that CABs and non-CAB member firms are subject to the same rule regime as they engage in distribution or solicitation activities with government entities on behalf of investment advisers. Without the proposed rule change, under the SEC's Pay-to-Play Rule, CABs could not be retained by investment advisers to engage in distribution and solicitation activities with government entities on their behalf because the rule set for CABs does not expressly provide that FINRA Rule 2030 applies to CABs. The Commission also agrees with FINRA that having such rules in place will deter CABs from engaging in pay-to-play practices, and that clarifying the application of FINRA Rules 2030 and 4580 to CABs is a more effective regulatory response to concerns regarding third-party solicitations than an outright ban on such activity. Lastly, the Commission agrees with FINRA that the proposed rule change will not result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Exchange Act. In the Notice, FINRA explained that the proposed rule change would subject CABs to the same pay-to-play rules as non-CAB member firms, and therefore, the economic impacts associated with the proposal were contemplated in the Economic Impact Assessment accompanying the filing of FINRA Rules 2030 and 4580. FINRA's Economic Impact Assessment in the Proposing Release for FINRA Rules 2030 and 4580 considered the impact on all FINRA member firms, including firms that at that time engaged solely in activities that were later deemed permissible for CABs.\17\ --------------------------------------------------------------------------- \17\ See Securities Exchange Act Release No. 76767 (December 24, 2015), 80 FR 81650, 81656-81658 (December 30, 2015) (at the time of the Economic Impact Assessment, the SEC had not approved the separate set of rules for CABs). --------------------------------------------------------------------------- Taking into consideration the foregoing, the Commission believes that the proposal is consistent with the Exchange Act. The Commission believes that the proposal will help protect investors and the public interest by, among other things, clarifying that CABs and non-CAB member firms are subject to the same rule regime as they engage in distribution or solicitation activities with government entities on behalf of investment advisers, and by deterring pay-to-play practices. Accordingly, the Commission believes that the approach proposed by FINRA is appropriate and designed to protect investors and the public interest, consistent with Section 15A(b)(6) of the Exchange Act and the rules and regulations thereunder. V. Conclusion It is therefore ordered pursuant to Section 19(b)(2) of the Exchange Act \18\ that the proposal (SR-FINRA-2017-027), be and hereby is approved. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman Assistant Secretary. [FR Doc. 2017-21413 Filed 10-4-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / Notices 46559
Member that is rated 7 on the CRRM, applicable to such organization. The percentages that NSCC charges Members
NSCC charges 20 percent of the Commission believes the proposal is according to their CRRM rating. In doing
Member’s aggregate CNS Fails consistent with Act, specifically Section so, the Commission believes that
Positions.20 17A(b)(3)(F) of the Act and Rule 17Ad– proposed rule change would help
NSCC explains that of the 20 percent 22(e)(23)(i) 28 under the Act, as promote disclosure of relevant rules and
charge, 10 percent is imposed pursuant discussed below. material procedures relating to the CNS
to Procedure XV, Section I.(A)(1)(f) of Fails Charge, consistent with Rule
A. Consistency With Section
the Rules, which describes NSCC’s 17Ad–22(e)(23)(i) under the Act.32
17A(b)(3)(F)
current CNS Fail Charge,21 while the III. Conclusion
remaining 10 percent of the charge is Section 17A(b)(3)(F) of the Act,
imposed pursuant to Procedure XV, requires, in part, that NSCC’s Rules be On the basis of the foregoing, the
Section I.(B)(1) of the Rules, which designed to promote the prompt and Commission finds that the proposal is
authorizes NSCC’s to require Members accurate clearance and settlement of consistent with the requirements of the
on the Watch List to make additional securities transactions.29 Act, in particular the requirements of
Clearing Fund deposits as determined The proposed rule change would Section 17A of the Act 33 and the rules
by NSCC.22 To clarify NSCC’s current clarify and provide additional and regulations thereunder.
practices with respect to the assessment transparency to NSCC members It is therefore ordered, pursuant to
and collection of the CNS Fails Charge regarding NSCC’s current practices Section 19(b)(2) of the Act, that
in the Rules, NSCC proposes to amend surrounding the assessment and proposed rule change SR–NSCC–2017–
the Rules to clearly state that, for any collection of the CNS Fails Charges 015 be, and hereby is, approved.34
Member that is rated 7 on the CRRM, associated with each Member. For the Commission, by the Division of
the CNS Fails Charge would be 20 Specifically, the proposed Rule would Trading and Markets, pursuant to delegated
percent of the Member’s aggregate CNS clearly state that Members with a CRRM authority.35
Fails Positions.23 rating of 7 are charged 20 percent of the Eduardo A. Aleman,
Member’s aggregate CNS Fails Positions Assistant Secretary.
C. Detailed Description of the Proposed (instead of the less transparent approach [FR Doc. 2017–21409 Filed 10–4–17; 8:45 am]
Rule Changes of charging 10 percent pursuant to the BILLING CODE 8011–01–P
To effectuate the proposed change, CNS Fails Charge and 10 pursuant to a
NSCC proposes to amend Rule 1 of the separate Watch List charge). By doing
Rules 24 to add a definition for CNS so, this proposed rule change would SECURITIES AND EXCHANGE
Fails Position. The proposed definition help the Rules to be more transparent, COMMISSION
would provide that the term ‘‘CNS Fails accurate, and clear, which would better [Release No. 34–81781; File No. SR–FINRA–
Position’’ means either a Long Position enable Members to understand their 2017–027]
or a Short Position that did not settle on respective rights and obligations with
the Settlement Date.25 NSCC is also respect to their NSCC membership and, Self-Regulatory Organizations;
proposing to amend Procedure XV, in turn, support NSCC’s clearance and Financial Industry Regulatory
Section I.(A)(1)(f) of the Rules to settlement of securities transactions. Authority, Inc.; Order Approving a
provide that a Member’s Clearing Fund Therefore, the Commission believes that Proposed Rule Change Relating to
contribution shall include an amount the proposed rule change related to the Capital Acquisition Broker Rules 203
that is calculated by multiplying the CNS Fails Charge would promote the (Engaging in Distribution and
current market value for such Member’s prompt and accurate clearance and Solicitation Activities With
aggregate CNS Fails Positions by (i) 5 settlement of securities transactions, Government Entities) and 458 (Books
percent for Members rated 1 through 4 consistent with Section 17A(b)(3)(F) of and Records Requirements for
on the CRRM; (ii) 10 percent for the Act.30 Government Distribution and
Members rated 5 or 6 on the CRRM; or Solicitation Activities)
B. Consistency With Rule 17Ad–
(iii) 20 percent for Members rated 7 on
22(e)(23)(i) September 29, 2017.
the CRRM.26
Rule 17Ad–22(e)(23)(i) under the Act I. Introduction
II. Discussion and Commission requires NSCC to establish, implement,
Findings On August 17, 2017, Financial
maintain and enforce written policies
Industry Regulatory Authority, Inc.
Section 19(b)(2)(C) of the Act 27 and procedures reasonably designed to
directs the Commission to approve a (‘‘FINRA’’) filed with the Securities and
publicly disclose all relevant rules and
proposed rule change of a self- Exchange Commission (‘‘Commission’’),
material procedures.31
regulatory organization if it finds that As described above, the proposed rule pursuant to Section 19(b)(1) of the
such proposed rule change is consistent Securities Exchange Act of 1934
change seeks to clarify in NSCC’s Rules
with the requirements of the Act and (‘‘Exchange Act’’) 1 and Rule 19b–4
the current practices with respect to the
rules and regulations thereunder assessment and collection of the CNS thereunder,2 a proposed rule change to
Fails Charge. Specifically, NSCC adopt Capital Acquisition Broker Rules
20 Id.
proposes to amend the Rules to include 203 (Engaging in Distribution and
21 Id.
a definition for CNS Fails Position and Solicitation Activities with Government
22 Notice, 82 FR at 40177.
23 Id.
clearly state NSCC’s current practices 32 Id.
NSCC states that Members which are not
ethrower on DSK3G9T082PROD with NOTICES
rated by the CRRM are not subject to the CNS Fails
regarding the assessment and collection 33 15 U.S.C. 78q–1.
Charge; however, these Members can be placed on of the CNS Fails Charge, including the 34 In approving the proposed rule change, the
the Watch List as deemed necessary by NSCC to Commission considered the proposals’ impact on
protect itself and its Members. Id. 28 15 U.S.C. 78q–1(b)(3)(F); 17 CFR 240.17Ad– efficiency, competition, and capital formation. 15
24 Rules, supra note 4. 22(e)(23)(i). U.S.C. 78c(f).
25 Notice, 82 FR at 40176. 29 15 U.S.C. 78q–1(b)(3)(F). 35 17 CFR 200.30–3(a)(12).
26 Id. 30 Id. 1 15 U.S.C. 78s(b)(1).
27 15 U.S.C. 78s(b)(2)(C). 31 17 CFR 240.17Ad–22(e)(23)(i). 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / Notices 46561
principles of trade, and, in general, to Taking into consideration the I. Self-Regulatory Organization’s
protect investors and the public interest. foregoing, the Commission believes that Statement of the Terms of Substance of
Specifically, the Commission finds that the proposal is consistent with the the Proposed Rule Change
the proposed rule change is consistent Exchange Act. The Commission believes CHX proposes to amend the Rules of
with the Exchange Act for the reasons that the proposal will help protect the Exchange (‘‘CHX Rules’’) related to
expressed in the Order Approving a investors and the public interest by, Sponsored Access. The text of this
Proposed Rule Change to Adopt FINRA among other things, clarifying that CABs proposed rule change is available on the
Rule 2030—namely, that this proposed and non-CAB member firms are subject Exchange’s Web site at (www.chx.com)
rule will discourage CABs, like non- to the same rule regime as they engage and in the Commission’s Public
CAB member firms, from engaging in in distribution or solicitation activities Reference Room.
pay-to-play practices that may create with government entities on behalf of
market distortions, impede a free and investment advisers, and by deterring II. Self-Regulatory Organization’s
open market, and harm investors and pay-to-play practices. Accordingly, the Statement of the Purpose of, and
the public interest.16 Commission believes that the approach Statutory Basis for, the Proposed Rule
The Commission agrees with FINRA proposed by FINRA is appropriate and Change
that the proposed rule change will designed to protect investors and the
clarify that CABs and non-CAB member In its filing with the Commission, the
public interest, consistent with Section CHX included statements concerning
firms are subject to the same rule regime 15A(b)(6) of the Exchange Act and the
as they engage in distribution or the purpose of and basis for the
rules and regulations thereunder. proposed rule changes and discussed
solicitation activities with government
entities on behalf of investment V. Conclusion any comments it received on the
advisers. Without the proposed rule proposed rule change. The text of these
change, under the SEC’s Pay-to-Play It is therefore ordered pursuant to statements may be examined at the
Rule, CABs could not be retained by Section 19(b)(2) of the Exchange Act 18 places specified in Item IV below. The
investment advisers to engage in that the proposal (SR–FINRA–2017– CHX has prepared summaries, set forth
distribution and solicitation activities 027), be and hereby is approved. in sections A, B and C below, of the
with government entities on their behalf For the Commission, by the Division of most significant aspects of such
because the rule set for CABs does not Trading and Markets, pursuant to delegated statements.
expressly provide that FINRA Rule 2030 authority.19 A. Self-Regulatory Organization’s
applies to CABs. The Commission also Eduardo A. Aleman Statement of the Purpose of, and
agrees with FINRA that having such Assistant Secretary. Statutory Basis for, the Proposed Rule
rules in place will deter CABs from Changes
[FR Doc. 2017–21413 Filed 10–4–17; 8:45 am]
engaging in pay-to-play practices, and
that clarifying the application of FINRA BILLING CODE 8011–01–P 1. Purpose
Rules 2030 and 4580 to CABs is a more The Exchange proposes to amend
effective regulatory response to CHX Rules to effect the following
concerns regarding third-party SECURITIES AND EXCHANGE
COMMISSION changes:
solicitations than an outright ban on • Amend Article 1, Rule 1 to adopt
such activity. the following defined terms:
Lastly, the Commission agrees with [Release No. 34–81764; File No. SR–CHX– ‘‘Sponsoring Participant,’’ ‘‘Sponsored
FINRA that the proposed rule change 2017–13] Person’’ and ‘‘Sponsored Access.’’
will not result in any burden on • Amend Article 5, Rule 3 to permit
competition that is not necessary or Self-Regulatory Organizations;
Sponsoring Participants to provide
appropriate in furtherance of the Chicago Stock Exchange, Inc.; Notice
Sponsored Access to the Exchange to
purposes of the Exchange Act. In the of Filing and Immediate Effectiveness
Sponsored Persons, subject to enhanced
Notice, FINRA explained that the of Proposed Rule Change Related to
requirements. Current Article 5, Rule 3
proposed rule change would subject Sponsored Access
only permits Sponsoring Participants to
CABs to the same pay-to-play rules as September 29, 2017. provide authorized access to the
non-CAB member firms, and therefore, Exchange’s trading facilities to non-
the economic impacts associated with Pursuant to Section 19(b)(1) of the Participant 3 broker-dealers. The
the proposal were contemplated in the Securities Exchange Act of 1934 proposal would permit Participants,
Economic Impact Assessment (‘‘Act’’),1 and Rule 19b–4 2 thereunder, non-Participants, broker-dealers and
accompanying the filing of FINRA Rules notice is hereby given that on firms that are not broker-dealers to
2030 and 4580. FINRA’s Economic September 15, 2017, the Chicago Stock receive Sponsored Access to the
Impact Assessment in the Proposing Exchange, Inc. (‘‘CHX’’ or the Exchange.4
Release for FINRA Rules 2030 and 4580 ‘‘Exchange’’) filed with the Securities
considered the impact on all FINRA and Exchange Commission 3 A ‘‘Participant’’ is a ‘‘member’’ of the Exchange
member firms, including firms that at (‘‘Commission’’) the proposed rule for the purposes of the Act. See CHX Article 1, Rule
that time engaged solely in activities change as described in Items I and II 1(s).
that were later deemed permissible for below, which Items have been prepared 4 The Exchange notes that Nasdaq Stock Market
by the Exchange. The Commission is (‘‘Nasdaq’’) permits its members to provide
CABs.17 Sponsored Access to a ‘‘Sponsored Participant,’’
publishing this notice to solicit
ethrower on DSK3G9T082PROD with NOTICES
which may be a non-broker-dealer, subject to the
16 See Securities Exchange Act Release No. 78683 comments on the proposed rule change requirements of Nasdaq Rule 4615. According to
(August 25, 2016), 81 FR at 60063 (August 31, from interested persons. Nasdaq, a ‘‘Sponsored Participant’’ may be a
2016). member, non-member, a broker-dealer or not a
17 See Securities Exchange Act Release No. 76767 broker-dealer, such as ‘‘a hedge fund, mutual fund,
18 15 U.S.C. 78s(b)(2).
(December 24, 2015), 80 FR 81650, 81656–81658 bank or insurance company.’’ See Exchange Act
19 17 CFR 200.30–3(a)(12).
(December 30, 2015) (at the time of the Economic Release No. 76449 (November 17, 2015), 80 FR
1 15 U.S.C. 78s(b)(1).
Impact Assessment, the SEC had not approved the 73011, 73012 (November 23, 2015) (SR–NASDAQ–
separate set of rules for CABs). 2 17 CFR 240.19b–4. 2015–140).
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Document Created: 2017-10-05 00:53:19
Document Modified: 2017-10-05 00:53:19
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 46559 |
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