[Federal Register Volume 84, Number 212 (Friday, November 1, 2019)]
[Notices]
[Pages 58794-58795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23861]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87407; File No. SR-FINRA-2019-012]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Designation of a Longer Period for
Commission Action on Proceedings To Determine Whether To Approve or
Disapprove a Proposed Rule Change To Amend FINRA Rule 5110 (Corporate
Financing Rule--Underwriting Terms and Arrangements) To Make
Substantive, Organizational and Terminology Changes, as Modified by
Partial Amendment No. 1
October 28, 2019.
On April 11, 2019, 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 amend FINRA Rule 5110
(Corporate Financing Rule--Underwriting Terms and Arrangements)
(``Rule'' or Rule 5110) to make substantive, organizational and
terminology changes to the Rule.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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The proposed rule change was published for comment in the Federal
Register on May 1, 2019.\3\ On June 12, 2019, the Commission extended
to July 30, 2019, the time period in which to approve the proposed rule
change, disapprove the proposed rule change, or institute proceedings
to determine whether to approve or disapprove the proposed rule
change.\4\ The Commission received six comment letters on the
proposal.\5\
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\3\ See Securities Exchange Act Release No. 85715 (April 25,
2019), 84 FR 18592 (May 1, 2019) (``Notice'').
\4\ See Securities Exchange Act Release No. 34-86091 (June 12,
2019), 84 FR 28371 (June 18, 2019).
\5\ See letter from Suzanne Rothwell, Managing Member, Rothwell
Consulting LLC, to Secretary, Commission, dated May 14, 2019; letter
from Stuart J. Kaswell, Esq., to Vanessa Countryman, Acting
Director, Commission, dated May 17, 2019; letter from Eversheds
Sutherland (US) LLP, on behalf of the Committee of Annuity Insurers,
to Brent J. Fields, Secretary, Commission, dated May 21, 2019;
letter from Aseel Rabie, Managing Director and Associate General
Counsel, Securities Industry and Financial Markets Association, to
Vanessa Countryman, Acting Secretary, Commission, dated May 30, 2019
(``SIFMA''); letter from Robert E. Buckholz, Chair, Federal
Regulation of Securities Committee, ABA Business Law Section,
American Bar Association, to Vanessa Countryman, Acting Secretary,
Commission, dated May 30, 2019; letter from Davis Polk & Wardwell
LLP, to Vanessa Countryman, Acting Secretary, Commission, dated June
5, 2019.
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[[Page 58795]]
On July 11, 2019, FINRA responded to the comments and filed Partial
Amendment No. 1 to the proposal.\6\ On July 29, 2019, the Commission
instituted proceedings pursuant to Section 19(b)(2)(B) of the Exchange
Act \7\ to determine whether to approve or disapprove the proposed rule
change.\8\ The Commission received three comment letters in response to
the Order Instituting Proceedings.\9\
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\6\ See letter from Jeanette Wingler, Associate General Counsel,
FINRA, to Vanessa Countryman, Secretary, Commission, dated July 11,
2019. Partial Amendment No. 1 is available at https://www.finra.org/industry/rule-filings/sr-finra-2019-012.
\7\ 15 U.S.C. 78s(b)(2)(B).
\8\ See Securities Exchange Act Release No. 86509 (July 29,
2019), 84 FR 37921 (Aug. 2, 2019).
\9\ See letter from Hardy Callcott and Joseph McLaughlin, to
Vanessa Countryman, Secretary, Commission, dated August 14, 2019;
letter from Stuart J. Kaswell, Law Office of Stuart J. Kaswell, LLC,
to Jill M. Peterson, Assistant Secretary, Commission, dated August
16, 2019; and letter from Aseel Rabie, Managing Director and
Associate General Counsel, SIFMA, to Vanessa Countryman, Secretary,
Commission, dated August 23, 2019.
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Section 19(b)(2) of the Exchange Act \10\ provides that, after
initiating disapproval proceedings, the Commission shall issue an order
approving or disapproving the proposed rule change not later than 180
days after the date of publication of notice of the filing of the
proposed rule change. The Commission may, however, extend the period
for issuing an order approving or disapproving the proposed rule change
by not more than 60 days if the Commission determines that a longer
period is appropriate and publishes the reasons for such determination.
The proposed rule change was published for notice and comment in the
Federal Register.\11\ The 180th day after publication of the notice of
the filing of the proposed rule change in the Federal Register is
October 28, 2019.
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\10\ 15 U.S.C. 78s(b)(2).
\11\ See Notice, supra note 3.
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The Commission finds that it is appropriate to designate a longer
period within which to issue an order approving or disapproving the
proposed rule change so that it has sufficient time to consider the
proposed rule change, as amended by Partial Amendment No.1, comment
letters, and FINRA's submission.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Exchange Act, designates December 27, 2019, as the date by which the
Commission shall approve or disapprove the proposed rule change.
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)(57).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-23861 Filed 10-31-19; 8:45 am]
BILLING CODE 8011-01-P