Citation: "79 FR 23027"
Document Number: "Release No. 34-71980; File No. SR-NFA-2014-02"
April 21, 2014.
Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 ("Exchange Act"), /1/ and Rule 19b-7 under the Exchange Act, /2/ notice is hereby given that on
FOOTNOTE 1 15 U.S.C. 78s(b)(7). END FOOTNOTE
FOOTNOTE 2 17 CFR 240.19b-7. END FOOTNOTE
FOOTNOTE 3 See Letter dated
FOOTNOTE 4 See Letter dated
The amendments to NFA's Interpretive Notice 9050 entitled "NFA Compliance Rule 2-30(b): Risk Disclosure Statement for Security Futures Contracts" ("Interpretive Notice 9050") make a minor change to the settlement section of the risk disclosure statement for security futures contracts ("Statement") to reflect an alternative settlement and clearance process that will be used for a new security futures product ("SFP"). The proposed rule change would accommodate the clearing of physically-settled single stock futures ("SSFs") on a shorter time frame than three business days after the maturity date of each such physically-settled SSF.
The text of the proposed rule change is available on NFA's Web site at www.nfa.futures.org, at the principal office of NFA and at the
In its filing with the Commission, NFA 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. NFA has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of these statements.
Section 15A(k) of the Exchange Act /5/ makes NFA a national securities association for the limited purpose of regulating the activities of NFA Members ("Members") who are registered as brokers or dealers under Section 15(b)(11) of the Exchange Act. /6/ NFA's Interpretive Notice 9050 applies to all Members and persons associated with Members ("Associates") who meet the criteria outlined in Interpretive Notice 9050.
FOOTNOTE 5 15 U.S.C. 78o-3(k). END FOOTNOTE
FOOTNOTE 6 15 U.S.C. 78o(b)(11). END FOOTNOTE
Interpretive Notice 9050 requires
The amendment makes a minor change to the settlement section of the Statement to reflect an alternative settlement process that will be used for a new SFP, namely SSFs. In addition, FINRA intends to make the same modifications to its risk disclosure statement for security futures contracts to cover its members, and has proposed a similar rule change.
Amendments to Interpretive Notice 9050 were previously filed with the
2. Statutory Basis
NFA believes that the proposed rule change is consistent with Section 15A(k)(2)(B) of the Exchange Act. /7/ That section requires NFA to have rules that are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, including rules governing sales practices of security futures products. NFA believes the proposed rule change accomplishes this by changing the Statement to include reference to an alternative settlement process that will be for a new SFP, namely SSFs.
FOOTNOTE 7 15 U.S.C. 78o-3(k)(2)(D). END FOOTNOTE
NFA does not believe the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Exchange Act as amended. /8/ The proposal does not impose new requirements on Members, but rather will change the settlement section of the Statement to reflect an alternative settlement process that will be used for a new SFP, namely SSFs.
FOOTNOTE 8 15 U.S.C. 78q-1(b)(3)(l). END FOOTNOTE
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
NFA filed the proposed rule change with the CFTC on
FOOTNOTE 9 See Letter dated
FOOTNOTE 10 See Letter dated
NFA did not file the proposed rule changes concurrently with the
Section 19(b)(7)(C) of the Exchange Act provides, inter alia, that "[a]ny proposed rule change of a self-regulatory organization that has taken effect pursuant to [Section 19(b)(7)(B) of the Exchange Act] may be enforced by such self-regulatory organization to the extent such rule is not inconsistent with the provisions of this chapter, the rules and regulations thereunder, and applicable Federal law." At any time within 60 days of the date of effectiveness of the proposed rule change, the Commission, after consultation with the CFTC, may summarily abrogate the proposed rule change and require that the proposed rule change be refiled in accordance with the provisions of Section 19(b)(1) of the Exchange Act.
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 Exchange Act. Comments may be submitted by any of the following methods:
* Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
* Send an email to firstname.lastname@example.org. Please include File Number SR-NFA-2014-02 on the subject line.
* Send paper comments in triplicate to Secretary,
All submissions should refer to File Number SR-NFA-2014-02. 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 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
For the Commission, by the
FOOTNOTE 11 17 CFR 200.30-3(a)(73). END FOOTNOTE
Kevin M. O'Neill,
[FR Doc. 2014-09394 Filed 4-24-14;
BILLING CODE 8011-01-P
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