83 FR 1279 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Technical and Other Non-Substantive Changes Within FINRA Rules

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 7 (January 10, 2018)

Page Range		1279-1280
FR Document		2018-00213
Federal Register, Volume 83 Issue 7 (Wednesday, January 10, 2018)
[Federal Register Volume 83, Number 7 (Wednesday, January 10, 2018)]
[Notices]
[Pages 1279-1280]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00213]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82441; File No. SR-FINRA-2017-036]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Make Technical and Other Non-Substantive 
Changes Within FINRA Rules

January 4, 2018.
    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 December 22, 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 make technical and other non-substantive 
changes within FINRA rules.
    The text of the proposed rule change is available on FINRA's 
website 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 September 13, 2016, the SEC approved changes to FINRA Rules 2210 
(Communications with the Public), 2213 (Requirements for the Use of 
Bond Mutual Fund Volatility Ratings), and 2214 (Requirements for the 
Use of Investment Analysis Tools) that, among other things, eliminated 
the filing requirements for investment analysis tool report templates 
and retail communications concerning such tools and instead requires 
members to provide FINRA staff with access to investment analysis tools 
upon request.\4\ The implementation date for the changes was January 9, 
2017.\5\
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    \4\ See Securities Exchange Act Release No. 78823 (September 13, 
2016), 81 FR 64240 (September 19, 2016) (Order Approving File No. 
SR-FINRA-2016-018).
    \5\ See Regulatory Notice 16-41 (October 2016).
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    The proposed rule change would delete FINRA Rule 2214.03 to 
eliminate the requirement to re-file a written-report template or 
retail communication concerning an investment analysis tool, and 
conform the rule to changes approved in SR-FINRA-2016-018. In addition, 
the proposed rule change would renumber FINRA Rule 2214.04 through 
2214.07 as 2214.03 through 2214.06, accordingly.
    Also, the proposed rule change would make technical changes to 
FINRA Rule 7730 (Trade Reporting and Compliance Engine (TRACE)). On 
July 11, 2017, the SEC approved SR-FINRA-2017-015, which added the 
definition of ``End-of-Day TRACE Transaction File'' to Rule 7730 as 
paragraph (g)(6). On August 4, 2017, the SEC approved SR-FINRA-2017-
021, which added ``TRACE Security Activity Report'' also as paragraph 
(g)(6). The proposed rule change would redesignate Rule 7730(g)(6) 
(TRACE Security Activity Report) as 7730(g)(7) to avoid duplication.\6\
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    \6\ See Securities Exchange Act Release No. 81114 (July 11, 
2017), 82 FR 32728 (July 17, 2017) (Order Approving File No. SR-
FINRA-2017-015) and Securities Exchange Act Release No. 81318 
(August 4, 2017), 82 FR 37484 (August 10, 2017) (Order Approving 
File No. SR-FINRA-2017-021).
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    Finally, the proposed rule change would update a reference in FINRA 
Rule 9217 (Violations Appropriate for Disposition Under Plan Pursuant 
to SEA Rule 19b-1(c)(2)) to reflect that FINRA Rule 7430 
(Synchronization of Member Business Clocks) has been renumbered as 
FINRA Rule 4590 (Synchronization of Member Business Clocks) to conform 
with SEC approval in SR-FINRA-2016-005.\7\
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    \7\ See Securities Exchange Act Release No. 77565 (April 8, 
2016), 81 FR 22136 (April 14, 2016) (Order Approving File No. SR-
FINRA-2016-005); see also Regulatory Notice 16-23 (July 2016).
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    FINRA has filed the proposed rule change for immediate 
effectiveness. The implementation date for the proposed changes to 
FINRA Rules 2214 and 9217 will be January 22, 2018. The implementation 
date for the proposed changes to FINRA Rule 7730 will be February 1, 
2018, to coincide with the implementation date of earlier changes to 
the rule.\8\
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    \8\ See Regulatory Notice 17-36 (November 2017).
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2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the 
provisions of Section 15A(b)(6) of the Act,\9\ which requires, among 
other things, that FINRA rules must be designed to prevent fraudulent 
and manipulative acts and practices, to promote just and equitable 
principles of trade, and, in

[[Page 1280]]

general, to protect investors and the public interest. FINRA believes 
the proposed rule change will provide greater clarity to members and 
the public regarding FINRA's rules by deleting the re-filing 
requirements in Rule 2214.03 to conform to changes approved in SR-
FINRA-2016-018 and by making technical updates in Rules 7730(g)(6) and 
9217.
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    \9\ 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. The proposed rule change brings 
clarity and consistency to FINRA rules without adding any burden on 
firms.

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 \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 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 rule-comments@sec.gov. Please include 
File Number SR-FINRA-2017-036 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-2017-036. 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 website (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 website 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. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-FINRA-2017-036, and should be submitted 
on or before January 31, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-00213 Filed 1-9-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 7 / Wednesday, January 10, 2018 / Notices 1279

public information reported on Form PF rule change as described in Items I, II, The proposed rule change would
that is identifiable to any particular and III below, which Items have been delete FINRA Rule 2214.03 to eliminate
adviser or private fund, although the prepared by FINRA. FINRA has the requirement to re-file a written-
Commission may use Form PF designated the proposed rule change as report template or retail communication
information in an enforcement action. constituting a ‘‘non-controversial’’ rule concerning an investment analysis tool,
An agency may not conduct or sponsor, change under paragraph (f)(6) of Rule and conform the rule to changes
and a person is not required to respond 19b–4 under the Act,3 which renders approved in SR–FINRA–2016–018. In
to, a collection of information unless it the proposal effective upon receipt of addition, the proposed rule change
displays a currently valid OMB control this filing by the Commission. The would renumber FINRA Rule 2214.04
number. Commission is publishing this notice to through 2214.07 as 2214.03 through
Written comments are invited on: (a) solicit comments on the proposed rule 2214.06, accordingly.
Whether the collection of information is change from interested persons. Also, the proposed rule change would
necessary for the proper performance of make technical changes to FINRA Rule
I. Self-Regulatory Organization’s 7730 (Trade Reporting and Compliance
the functions of the Commission,
Statement of the Terms of Substance of Engine (TRACE)). On July 11, 2017, the
including whether the information has
the Proposed Rule Change SEC approved SR–FINRA–2017–015,
practical utility; (b) the accuracy of the
Commission’s estimate of the burden of FINRA is proposing to make technical which added the definition of ‘‘End-of-
the collection of information; (c) ways to and other non-substantive changes Day TRACE Transaction File’’ to Rule
enhance the quality, utility, and clarity within FINRA rules. 7730 as paragraph (g)(6). On August 4,
of the information collected; and (d) The text of the proposed rule change 2017, the SEC approved SR–FINRA–
ways to minimize the burden of the is available on FINRA’s website at 2017–021, which added ‘‘TRACE
collection of information on http://www.finra.org, at the principal Security Activity Report’’ also as
respondents, including through the use office of FINRA and at the paragraph (g)(6). The proposed rule
of automated collection techniques or Commission’s Public Reference Room. change would redesignate Rule
other forms of information technology. 7730(g)(6) (TRACE Security Activity
II. Self-Regulatory Organization’s Report) as 7730(g)(7) to avoid
Consideration will be given to Statement of the Purpose of, and
comments and suggestions submitted in duplication.6
Statutory Basis for, the Proposed Rule Finally, the proposed rule change
writing within 60 days of this Change
publication. would update a reference in FINRA
Please direct your written comments In its filing with the Commission, Rule 9217 (Violations Appropriate for
to Pamela Dyson, Director/Chief FINRA included statements concerning Disposition Under Plan Pursuant to SEA
Information Officer, Securities and the purpose of and basis for the Rule 19b–1(c)(2)) to reflect that FINRA
Exchange Commission, c/o Remi Pavlik- proposed rule change and discussed any Rule 7430 (Synchronization of Member
Simon, 100 F Street NE, Washington, comments it received on the proposed Business Clocks) has been renumbered
rule change. The text of these statements as FINRA Rule 4590 (Synchronization of
DC 20549; or send an email to: PRA_
may be examined at the places specified Member Business Clocks) to conform
Mailbox@sec.gov.
in Item IV below. FINRA has prepared with SEC approval in SR–FINRA–2016–
Dated: January 5, 2018. summaries, set forth in sections A, B, 005.7
Eduardo A. Aleman, and C below, of the most significant FINRA has filed the proposed rule
Assistant Secretary. aspects of such statements. change for immediate effectiveness. The
[FR Doc. 2018–00267 Filed 1–9–18; 8:45 am] implementation date for the proposed
A. Self-Regulatory Organization’s changes to FINRA Rules 2214 and 9217
BILLING CODE 8011–01–P
Statement of the Purpose of, and will be January 22, 2018. The
Statutory Basis for, the Proposed Rule implementation date for the proposed
SECURITIES AND EXCHANGE Change changes to FINRA Rule 7730 will be
COMMISSION 1. Purpose February 1, 2018, to coincide with the
implementation date of earlier changes
[Release No. 34–82441; File No. SR–FINRA– On September 13, 2016, the SEC to the rule.8
2017–036] approved changes to FINRA Rules 2210
(Communications with the Public), 2213 2. Statutory Basis
Self-Regulatory Organizations; (Requirements for the Use of Bond FINRA believes that the proposed rule
Financial Industry Regulatory Mutual Fund Volatility Ratings), and change is consistent with the provisions
Authority, Inc.; Notice of Filing and 2214 (Requirements for the Use of of Section 15A(b)(6) of the Act,9 which
Immediate Effectiveness of a Proposed Investment Analysis Tools) that, among requires, among other things, that
Rule Change To Make Technical and other things, eliminated the filing FINRA rules must be designed to
Other Non-Substantive Changes requirements for investment analysis prevent fraudulent and manipulative
Within FINRA Rules tool report templates and retail acts and practices, to promote just and
January 4, 2018. communications concerning such tools equitable principles of trade, and, in
Pursuant to Section 19(b)(1) of the and instead requires members to
Securities Exchange Act of 1934 provide FINRA staff with access to 6 See Securities Exchange Act Release No. 81114

investment analysis tools upon request.4 (July 11, 2017), 82 FR 32728 (July 17, 2017) (Order
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Approving File No. SR–FINRA–2017–015) and
notice is hereby given that on December The implementation date for the Securities Exchange Act Release No. 81318 (August
daltland on DSKBBV9HB2PROD with NOTICES

22, 2017, Financial Industry Regulatory changes was January 9, 2017.5 4, 2017), 82 FR 37484 (August 10, 2017) (Order
Authority, Inc. (‘‘FINRA’’) filed with the Approving File No. SR–FINRA–2017–021).
3 17 CFR 240.19b–4(f)(6). 7 See Securities Exchange Act Release No. 77565
Securities and Exchange Commission 4 See (April 8, 2016), 81 FR 22136 (April 14, 2016) (Order
Securities Exchange Act Release No. 78823
(‘‘SEC’’ or ‘‘Commission’’) the proposed (September 13, 2016), 81 FR 64240 (September 19, Approving File No. SR–FINRA–2016–005); see also
2016) (Order Approving File No. SR–FINRA–2016– Regulatory Notice 16–23 (July 2016).
1 15 U.S.C. 78s(b)(1). 018). 8 See Regulatory Notice 17–36 (November 2017).
2 17 CFR 240.19b–4. 5 See Regulatory Notice 16–41 (October 2016). 9 15 U.S.C. 78o–3(b)(6).

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1280 Federal Register / Vol. 83, No. 7 / Wednesday, January 10, 2018 / Notices

general, to protect investors and the Electronic Comments DEPARTMENT OF STATE
public interest. FINRA believes the
proposed rule change will provide • Use the Commission’s internet [Public Notice: 10262]
greater clarity to members and the comment form (http://www.sec.gov/
Call for Expert Reviewers To
public regarding FINRA’s rules by rules/sro.shtml); or
Contribute to the U.S. Government
deleting the re-filing requirements in • Send an email to rule-comments@ Review of the Intergovernmental Panel
Rule 2214.03 to conform to changes sec.gov. Please include File Number SR– on Climate Change (IPCC) Special
approved in SR–FINRA–2016–018 and FINRA–2017–036 on the subject line. Report on the Impacts of Global
by making technical updates in Rules Warming of 1.5 ≥C Above Preindustrial
7730(g)(6) and 9217. Paper Comments
Levels and Related Global Greenhouse
B. Self-Regulatory Organization’s • Send paper comments in triplicate Gas Emission Pathways in the Context
Statement on Burden on Competition to Secretary, Securities and Exchange of Strengthening the Global Response
Commission, 100 F Street NE, to the Threat of Climate Change,
FINRA does not believe that the Sustainable Development and Efforts
proposed rule change will result in any Washington, DC 20549–1090.
to Eradicate Poverty. (Special Report
burden on competition that is not All submissions should refer to File on Global Warming of 1.5 ≥C)
necessary or appropriate in furtherance Number SR–FINRA–2017–036. This file
of the purposes of the Act. The The United States Global Change
number should be included on the
proposed rule change brings clarity and Research Program (USGCRP), in
subject line if email is used. To help the cooperation with the Department of
consistency to FINRA rules without Commission process and review your
adding any burden on firms. State, requests expert review of the
comments more efficiently, please use second-order draft of the IPCC Special
C. Self-Regulatory Organization’s only one method. The Commission will Report on Global Warming of 1.5 °C,
Statement on Comments on the post all comments on the Commission’s including the first draft of its Summary
Proposed Rule Change Received From internet website (http://www.sec.gov/ for Policymakers (SPM).
Members, Participants, or Others rules/sro.shtml). Copies of the The United Nations Environment
submission, all subsequent Programme (UNEP) and the World
Written comments were neither
amendments, all written statements Meteorological Organization (WMO)
solicited nor received.
with respect to the proposed rule established the IPCC in 1988. As
III. Date of Effectiveness of the change that are filed with the reflected in its governing documents
Proposed Rule Change and Timing for Commission, and all written (the IPCC’s ‘‘principles and
Commission Action communications relating to the procedures’’), the role of the IPCC is to
proposed rule change between the assess on a comprehensive, objective,
Because the foregoing proposed rule open, and transparent basis the
change does not: (i) Significantly affect Commission and any person, other than
those that may be withheld from the scientific, technical, and socio-
the protection of investors or the public economic information relevant to
interest; (ii) impose any significant public in accordance with the
understanding the scientific basis of risk
burden on competition; and (iii) become provisions of 5 U.S.C. 552, will be
of human-induced climate change, its
operative for 30 days from the date on available for website viewing and
potential impacts and options for
which it was filed, or such shorter time printing in the Commission’s Public adaptation and mitigation. IPCC reports
as the Commission may designate, it has Reference Room, 100 F Street NE, should be neutral with respect to policy,
become effective pursuant to Section Washington, DC 20549 on official although they may need to deal
19(b)(3)(A) of the Act 10 and Rule 19b– business days between the hours of objectively with scientific, technical,
4(f)(6) thereunder.11 10:00 a.m. and 3:00 p.m. Copies of the and socio-economic factors relevant to
At any time within 60 days of the filing also will be available for the application of particular policies.
filing of the proposed rule change, the inspection and copying at the principal The principles and procedures for the
Commission summarily may office of FINRA. All comments received IPCC and its preparation of reports can
temporarily suspend such rule change if will be posted without change. Persons be found at: https://www.ipcc.ch/pdf/
it appears to the Commission that such submitting comments are cautioned that ipcc-principles/ipcc-principles.pdf and
action is necessary or appropriate in the we do not redact or edit personal http://ipcc.ch/pdf/ipcc-principles/ipcc-
public interest, for the protection of identifying information from comment principles-appendix-a-final.pdf. At the
investors, or otherwise in furtherance of submissions. You should submit only 44th Session of the Panel (Bangkok,
the purposes of the Act. If the information that you wish to make Thailand, October 17–20, 2016), the
Commission takes such action, the available publicly. All submissions IPCC approved the outline for the
Commission shall institute proceedings Special Report on Global Warming of
should refer to File Number SR–FINRA–
to determine whether the proposed rule 1.5C. Writing team nominations were
2017–036, and should be submitted on
should be approved or disapproved. submitted by the IPCC deadline of
or before January 31, 2018.
IV. Solicitation of Comments December 11, 2016, and author
For the Commission, by the Division of appointments made on January 23,
Interested persons are invited to Trading and Markets, pursuant to delegated 2017. The Table of Contents for the
submit written data, views, and authority.12 Special Report can be viewed here:
arguments concerning the foregoing, Eduardo A. Aleman, http://ipcc.ch/meetings/session44/l2_
daltland on DSKBBV9HB2PROD with NOTICES

including whether the proposed rule Assistant Secretary. adopted_outline_sr15.pdf. As reflected
change is consistent with the Act. [FR Doc. 2018–00213 Filed 1–9–18; 8:45 am] in the IPCC’s principles and procedures,
Comments may be submitted by any of review is an essential part of the IPCC
BILLING CODE 8011–01–P
the following methods: process. Since the IPCC is an
intergovernmental body, review of IPCC
10 15 U.S.C. 78s(b)(3)(A). documents involves both peer review by
11 17 CFR 240.19b–4(f)(6). 12 17 CFR 200.30–3(a)(12). experts and review by governments. The

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Document Created: 2018-10-26 09:34:13
Document Modified: 2018-10-26 09:34:13
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		83 FR 1279