Other Rule Filings Incorporated by Reference
BATS Exchange, Inc. ("BZX") and BATS Y-Exchange, Inc. ("BYX" and together with BZX as "BATS") have incorporated certain rules by reference from other self-regulatory organization ("SRO") rulebooks. As such, BATS will periodically provide updates where applicable when there are new proposals or approvals to amend these incorporated rules by the other SROs. The Rule Filings are not effective until approved by the Securities and Exchange Commission ("SEC"), with the exception of certain types of rule filings that may take effect upon filing with the SEC if they meet the conditions specified under Section 19 of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder. Below are descriptions of BATS rules incorporated by reference from other SROs, along with any current proposals/approvals filed by the SROs.
FINRA Rule Filings to Amend NASD Rule 3020 - Fidelity Bonds
Pursuant to BZX Rule 2.13 and BYX Rule 2.13:
- "Each Member required to join the Securities Investor Protection Corporation who has employees and who is a member in good standing of another self-regulatory organization shall follow the applicable fidelity bond rule of the self-regulatory organization to which it is designated by the Commission for financial responsibility pursuant to Section 17 of the Act and SEC Rule 17d-1 thereunder.
- A Member designated to the Exchange for oversight pursuant to SEC Rule 17d-1 shall comply with NASD Rule 3020 as if such Rule were part of the Exchange's Rules."
As a result of BZX Rule 2.13 and BYX Rule 2.13, changes to NASD Rule 3020 could have an impact on a BATS member's compliance with the rule. Accordingly, below are links to pending FINRA rule filings with the SEC seeking to amend NASD Rule 3020 as well as any SEC orders approving or disapproving those FINRA rule filings.
- SR-FINRA-2010-059
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Proposed rule change to adopt Rule 3020 into the consolidated FINRA rulebook as FINRA Rule 4360 ("Fidelity Bonds"). The proposed rule modifies the descriptive headings for the Insuring Agreements to align with the headings in the current bond forms available to broker-dealers, along with eliminating certain specific coverage provisions of Rule 3020 and increasing the minimum required fidelity bond coverage.
- SR-FINRA-2010-059
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Proposed rule change to adopt Rule 3020 into the consolidated FINRA rulebook as FINRA Rule 4360 ("Fidelity Bonds"). The proposed rule modifies the descriptive headings for the Insuring Agreements to align with the headings in the current bond forms available to broker-dealers, along with eliminating certain specific coverage provisions of Rule 3020 and increasing the minimum required fidelity bond coverage.SEC Approval Order