Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Expiration Date of the Temporary Amendments Concerning Video Conference Hearings, 25055-25057 [2021-09770]
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Federal Register / Vol. 86, No. 88 / Monday, May 10, 2021 / Notices
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BX–2021–018 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–91763; File No. SR–
NASDAQ–2021–033]
• 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–BX–2021–018. 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 (https://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 the Exchange. 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–BX–2021–018 and should
be submitted on or before June 1, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.58
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–09777 Filed 5–7–21; 8:45 am]
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CFR 200.30–3(a)(12).
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May 4, 2021.
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 April 28,
2021, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have been
prepared by the Exchange. The
Exchange has designated the proposed
rule change as constituting a ‘‘noncontroversial’’ 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend the
expiration date of the temporary
amendments in SR–NASDAQ–2020–076
from April 30, 2021, to August 31,
2021.4 The proposed rule change would
not make any changes to the text of the
Exchange rules.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/nasdaq/rules, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
4 If the Exchange seeks to provide additional
temporary relief from the rule requirements
identified in this proposed rule change beyond
August 31, 2021, the Exchange will submit a
separate rule filing to further extend the temporary
extension of time. The amended Exchange rules
will revert to their original form at the conclusion
of the temporary relief period and any extension
thereof.
2 17
BILLING CODE 8011–01–P
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Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Extend the
Expiration Date of the Temporary
Amendments Concerning Video
Conference Hearings
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25055
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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. The
Exchange 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
The Exchange proposes to continue to
harmonize Exchange Rules 1015, 9261,
9524 and 9830 with recent changes by
the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) to its Rules
1015, 9261, 9524 and 9830 in response
to the COVID–19 global health crisis
and the corresponding need to restrict
in-person activities. The Exchange
originally filed proposed rule change
SR–NASDAQ–2020–076, which allows
the Exchange’s Office of Hearing
Officers (‘‘OHO’’) and the Exchange
Review Council (‘‘ERC’’) to conduct
hearings, on a temporary basis, by video
conference, if warranted by the current
COVID–19-related public health risks
posed by an in-person hearing. In
December 2020, the Exchange filed a
proposed rule change, SR–NASDAQ–
2020–092, to extend the expiration date
of the temporary amendments in SR–
NASDAQ–2020–076 from December 31,
2020, to April 30, 2021.5 While there are
signs of improvement, the COVID–19
conditions necessitating these
temporary amendments persist and,
based on its assessment of current
COVID–19 conditions and the lack of
certainty as to when COVID–19-related
health concerns and corresponding
restrictions will meaningfully subside,
the Exchange has determined that there
is a continued need for this temporary
relief for several months beyond April
30, 2021. Accordingly, the Exchange
proposes to extend the expiration date
of the temporary rule amendments in
SR–NASDAQ–2020–076 from April 30,
2021, to August 31, 2021.
On November 5, 2020, the Exchange
filed, and subsequently extended to
5 See Securities Exchange Act Release No. 90774
(December 22, 2020), 85 FR 86614 (December 30,
2020) (Notice of Filing and Immediate Effectiveness
of File No. SR–NASDAQ–2020–092).
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Federal Register / Vol. 86, No. 88 / Monday, May 10, 2021 / Notices
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April 30, 2021, SR–NASDAQ–2020–
076, to temporarily amend Exchange
Rules 1015, 9261, 9524 and 9830 to
grant OHO and the ERC authority 6 to
conduct hearings in connection with
appeals of Membership Application
Program decisions, disciplinary actions,
eligibility proceedings and temporary
and permanent cease and desist orders
by video conference, if warranted by the
COVID–19-related public health risks
posed by an in-person hearing.7
As set forth in the previous filings, the
Exchange also relies on COVID–19 data
and the guidance issued by public
health authorities to determine whether
the current public health risks presented
by an in-person hearing may warrant a
hearing by video conference.8 Based on
that data and guidance, the Exchange
does not believe the COVID–19-related
health concerns necessitating this relief
will meaningfully subside by April 30,
2021, and has determined that there will
be a continued need for this temporary
relief for several months beyond that
date. Accordingly, the Exchange
proposes to extend the expiration date
of the temporary rule amendments
originally set forth in SR–NASDAQ–
2020–076 from April 30, 2021, to
August 31, 2021. The extension of these
temporary amendments allowing for
specified OHO and ERC hearings to
proceed by video conference will allow
the Exchange’s critical adjudicatory
functions to continue to operate
effectively in these extraordinary
circumstances—enabling the Exchange
to fulfill its statutory obligations to
protect investors and maintain fair and
orderly markets—while also protecting
the health and safety of hearing
participants.
The Exchange has filed the proposed
rule change for immediate effectiveness
and has requested that the SEC waive
the requirement that the proposed rule
change not become operative for 30 days
after the date of the filing, so the
Exchange can implement the proposed
rule change immediately.
6 For OHO hearings under Exchange Rules 9261
and 9830, the proposed rule change temporarily
grants authority to the Chief or Deputy Chief
Hearing Officer to order that a hearing be conducted
by video conference. For ERC hearings under
Exchange Rules 1015 and 9524, this temporary
authority is granted to the ERC or relevant
Subcommittee.
7 See Securities Exchange Act Release No. 90390
(November 10, 2020), 85 FR 73302 (November 17,
2020) (Notice of Filing and Immediate Effectiveness
of File No. SR–NASDAQ–2020–076); supra note 5.
8 As noted in SR–NASDAQ–2020–076, the
temporary proposed rule change grants discretion to
OHO and the ERC to order a video conference
hearing. In deciding whether to schedule a hearing
by video conference, OHO and the ERC may
consider a variety of other factors in addition to
COVID–19 trends.
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2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,9 in general, and furthers the
objectives of Section 6(b)(5) of the Act,10
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest, by
continuing to provide greater
harmonization between the Exchange
rules and FINRA rules of similar
purpose,11 resulting in less burdensome
and more efficient regulatory
compliance.
The proposed rule change, which
extends the expiration date of the
temporary amendments to the Exchange
rules set forth in SR–NASDAQ–2020–
076, will continue to aid the Exchange’s
efforts to timely conduct hearings in
connection with its core adjudicatory
functions. Given current COVID–19
conditions and the uncertainty around
when those conditions will
meaningfully improve, without this
relief allowing OHO and ERC hearings
to continue to proceed by video
conference, such hearings may need to
be postponed indefinitely. The
Exchange must be able to perform its
critical adjudicatory functions in order
to fulfill its statutory obligations to
protect investors and maintain fair and
orderly markets. As such, this relief is
essential to the Exchange’s ability to
fulfill its statutory obligations and
allows hearing participants to avoid the
serious COVID–19-related health and
safety risks associated with in-person
hearings.
Among other things, this relief will
allow OHO to conduct temporary cease
and desist proceedings by video
conference so that the Exchange can
take immediate action to stop ongoing
customer harm and will allow the ERC
to timely provide members, disqualified
individuals and other applicants an
approval or denial of their applications.
As set forth in detail in SR–NASDAQ–
2020–076, this temporary relief allowing
OHO and ERC hearings to proceed by
video conference accounts for fair
process considerations and will
continue to provide fair process while
avoiding the COVID–19-related public
health risks for hearing participants.
Accordingly, the proposed rule change
extending this temporary relief is in the
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 See Securities Exchange Act Release No. 91495
(April 7, 2021), 86 FR 19306 (April 13, 2021) (SR–
FINRA–2021–006).
10 15
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public interest and consistent with the
Act’s purpose.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the temporary proposed rule change
will impose any burden on competition
not necessary or appropriate in
furtherance of the purposes of the Act.
As set forth in SR–NASDAQ–2020–076,
the proposed rule change is intended
solely to extend temporary relief
necessitated by the continued impacts
of the COVID–19 outbreak and the
related health and safety risks of
conducting in-person activities. The
Exchange believes that the proposed
rule change will prevent unnecessary
impediments to its operations,
including its critical adjudicatory
processes, and its ability to fulfill its
statutory obligations to protect investors
and maintain fair and orderly markets
that would otherwise result if the
temporary amendments were to expire
on April 30, 2021.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or 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)(iii) of the Act 12 and
subparagraph (f)(6) of Rule 19b–4
thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),15 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
12 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
13 17
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Federal Register / Vol. 86, No. 88 / Monday, May 10, 2021 / Notices
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange has indicated that
the proposed rule change to extend the
expiration date will continue to prevent
unnecessary impediments to its
operations, including its critical
adjudicatory processes, and its ability to
fulfill its statutory obligations to protect
investors and maintain fair and orderly
markets that would otherwise result if
the temporary amendments were to
expire on April 30, 2021.16 Importantly,
extending the relief provided in
NASDAQ–2020–092 immediately upon
filing and without a 30-day operative
delay will allow the Exchange to
continue critical adjudicatory and
review processes in a reasonable and
fair manner and meet its critical
investor protection goals, while also
following best practices with respect to
the health and safety of its employees.17
The Commission also notes that this
proposal extends without change the
temporary relief previously provided by
NASDAQ–2020–092,18 and only during
the period in which the Exchange’s
operations are impacted by COVID–19.
As proposed, the changes would be in
place through August 31, 2021 and the
amended rules will revert back to their
original state at the conclusion of the
temporary relief period and, if
applicable, any extension thereof.19 For
these reasons, the Commission believes
that waiver of the 30-day operative
delay for this proposal is consistent
with the protection of investors and the
public interest. Accordingly, the
Commission hereby waives the 30-day
operative delay and designates the
proposal operative upon filing.20
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
16 See
supra Item II.
FINRA Filing, 86 FR 19308 (noting the
same in granting FINRA’s request to waive the 30day operative delay so that SR–FINRA–2021–006
would become operative immediately upon filing).
18 See supra note 5.
19 See supra note 4. As noted above, the Exchange
states that if it requires temporary relief from the
rule requirements identified in this proposal
beyond August 31, 2021, it may submit a separate
rule filing to extend the effectiveness of the
temporary relief under these rules.
20 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule change’s impact on efficiency,
competition, and capital formation. See 15 U.S.C.
78c(f).
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17 See
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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
25057
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–09770 Filed 5–7–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91765; File No. SR–MRX–
2021–06]
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2021–033 on the subject line.
Self-Regulatory Organizations; Nasdaq
MRX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Expiration
Date of the Temporary Amendments
Concerning Video Conference
Hearings
Paper Comments
May 4, 2021.
• 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–NASDAQ–2021–033. 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 (https://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 the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2021–033 and should be
submitted on or before June 1, 2021.
21 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00219
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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 April 28,
2021, Nasdaq MRX, LLC (‘‘MRX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been
substantially prepared by the Exchange.
The Exchange 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend the
expiration date of the temporary
amendments in SR–MRX–2020–23 from
April 30, 2021, to August 31, 2021.4 The
proposed rule change would not make
any changes to the text of the Exchange
rules.
The text of the proposed rule change
is available on the Exchange’s website at
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
4 See Securities Exchange Act Release No. 90757
(Dec. 21, 2020), 85 FR 85771 (Dec. 29, 2020) (SR–
MRX–2020–23). If the Exchange seeks to provide
additional temporary relief from the rule
requirements identified in this proposed rule
change beyond August 31, 2021, the Exchange will
submit a separate rule filing to further extend the
temporary extension of time. The amended
Exchange rules will revert to their original form at
the conclusion of the temporary relief period and
any extension thereof.
2 17
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]]>Agencies
[Federal Register Volume 86, Number 88 (Monday, May 10, 2021)]
[Notices]
[Pages 25055-25057]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09770]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91763; File No. SR-NASDAQ-2021-033]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Extend the Expiration Date of the Temporary Amendments Concerning Video
Conference Hearings
May 4, 2021.
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 April 28, 2021, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Exchange 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
The Exchange proposes to extend the expiration date of the
temporary amendments in SR-NASDAQ-2020-076 from April 30, 2021, to
August 31, 2021.\4\ The proposed rule change would not make any changes
to the text of the Exchange rules.
---------------------------------------------------------------------------
\4\ If the Exchange seeks to provide additional temporary relief
from the rule requirements identified in this proposed rule change
beyond August 31, 2021, the Exchange will submit a separate rule
filing to further extend the temporary extension of time. The
amended Exchange rules will revert to their original form at the
conclusion of the temporary relief period and any extension thereof.
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/nasdaq/rules, at
the principal office of the Exchange, 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, the Exchange 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. The Exchange 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
The Exchange proposes to continue to harmonize Exchange Rules 1015,
9261, 9524 and 9830 with recent changes by the Financial Industry
Regulatory Authority, Inc. (``FINRA'') to its Rules 1015, 9261, 9524
and 9830 in response to the COVID-19 global health crisis and the
corresponding need to restrict in-person activities. The Exchange
originally filed proposed rule change SR-NASDAQ-2020-076, which allows
the Exchange's Office of Hearing Officers (``OHO'') and the Exchange
Review Council (``ERC'') to conduct hearings, on a temporary basis, by
video conference, if warranted by the current COVID-19-related public
health risks posed by an in-person hearing. In December 2020, the
Exchange filed a proposed rule change, SR-NASDAQ-2020-092, to extend
the expiration date of the temporary amendments in SR-NASDAQ-2020-076
from December 31, 2020, to April 30, 2021.\5\ While there are signs of
improvement, the COVID-19 conditions necessitating these temporary
amendments persist and, based on its assessment of current COVID-19
conditions and the lack of certainty as to when COVID-19-related health
concerns and corresponding restrictions will meaningfully subside, the
Exchange has determined that there is a continued need for this
temporary relief for several months beyond April 30, 2021. Accordingly,
the Exchange proposes to extend the expiration date of the temporary
rule amendments in SR-NASDAQ-2020-076 from April 30, 2021, to August
31, 2021.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 90774 (December 22,
2020), 85 FR 86614 (December 30, 2020) (Notice of Filing and
Immediate Effectiveness of File No. SR-NASDAQ-2020-092).
---------------------------------------------------------------------------
On November 5, 2020, the Exchange filed, and subsequently extended
to
[[Page 25056]]
April 30, 2021, SR-NASDAQ-2020-076, to temporarily amend Exchange Rules
1015, 9261, 9524 and 9830 to grant OHO and the ERC authority \6\ to
conduct hearings in connection with appeals of Membership Application
Program decisions, disciplinary actions, eligibility proceedings and
temporary and permanent cease and desist orders by video conference, if
warranted by the COVID-19-related public health risks posed by an in-
person hearing.\7\
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\6\ For OHO hearings under Exchange Rules 9261 and 9830, the
proposed rule change temporarily grants authority to the Chief or
Deputy Chief Hearing Officer to order that a hearing be conducted by
video conference. For ERC hearings under Exchange Rules 1015 and
9524, this temporary authority is granted to the ERC or relevant
Subcommittee.
\7\ See Securities Exchange Act Release No. 90390 (November 10,
2020), 85 FR 73302 (November 17, 2020) (Notice of Filing and
Immediate Effectiveness of File No. SR-NASDAQ-2020-076); supra note
5.
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As set forth in the previous filings, the Exchange also relies on
COVID-19 data and the guidance issued by public health authorities to
determine whether the current public health risks presented by an in-
person hearing may warrant a hearing by video conference.\8\ Based on
that data and guidance, the Exchange does not believe the COVID-19-
related health concerns necessitating this relief will meaningfully
subside by April 30, 2021, and has determined that there will be a
continued need for this temporary relief for several months beyond that
date. Accordingly, the Exchange proposes to extend the expiration date
of the temporary rule amendments originally set forth in SR-NASDAQ-
2020-076 from April 30, 2021, to August 31, 2021. The extension of
these temporary amendments allowing for specified OHO and ERC hearings
to proceed by video conference will allow the Exchange's critical
adjudicatory functions to continue to operate effectively in these
extraordinary circumstances--enabling the Exchange to fulfill its
statutory obligations to protect investors and maintain fair and
orderly markets--while also protecting the health and safety of hearing
participants.
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\8\ As noted in SR-NASDAQ-2020-076, the temporary proposed rule
change grants discretion to OHO and the ERC to order a video
conference hearing. In deciding whether to schedule a hearing by
video conference, OHO and the ERC may consider a variety of other
factors in addition to COVID-19 trends.
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The Exchange has filed the proposed rule change for immediate
effectiveness and has requested that the SEC waive the requirement that
the proposed rule change not become operative for 30 days after the
date of the filing, so the Exchange can implement the proposed rule
change immediately.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\9\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\10\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest, by continuing to provide greater harmonization between the
Exchange rules and FINRA rules of similar purpose,\11\ resulting in
less burdensome and more efficient regulatory compliance.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ See Securities Exchange Act Release No. 91495 (April 7,
2021), 86 FR 19306 (April 13, 2021) (SR-FINRA-2021-006).
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The proposed rule change, which extends the expiration date of the
temporary amendments to the Exchange rules set forth in SR-NASDAQ-2020-
076, will continue to aid the Exchange's efforts to timely conduct
hearings in connection with its core adjudicatory functions. Given
current COVID-19 conditions and the uncertainty around when those
conditions will meaningfully improve, without this relief allowing OHO
and ERC hearings to continue to proceed by video conference, such
hearings may need to be postponed indefinitely. The Exchange must be
able to perform its critical adjudicatory functions in order to fulfill
its statutory obligations to protect investors and maintain fair and
orderly markets. As such, this relief is essential to the Exchange's
ability to fulfill its statutory obligations and allows hearing
participants to avoid the serious COVID-19-related health and safety
risks associated with in-person hearings.
Among other things, this relief will allow OHO to conduct temporary
cease and desist proceedings by video conference so that the Exchange
can take immediate action to stop ongoing customer harm and will allow
the ERC to timely provide members, disqualified individuals and other
applicants an approval or denial of their applications. As set forth in
detail in SR-NASDAQ-2020-076, this temporary relief allowing OHO and
ERC hearings to proceed by video conference accounts for fair process
considerations and will continue to provide fair process while avoiding
the COVID-19-related public health risks for hearing participants.
Accordingly, the proposed rule change extending this temporary relief
is in the public interest and consistent with the Act's purpose.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the temporary proposed rule
change will impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act. As set forth in
SR-NASDAQ-2020-076, the proposed rule change is intended solely to
extend temporary relief necessitated by the continued impacts of the
COVID-19 outbreak and the related health and safety risks of conducting
in-person activities. The Exchange believes that the proposed rule
change will prevent unnecessary impediments to its operations,
including its critical adjudicatory processes, and its ability to
fulfill its statutory obligations to protect investors and maintain
fair and orderly markets that would otherwise result if the temporary
amendments were to expire on April 30, 2021.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or 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)(iii) of the Act \12\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the
[[Page 25057]]
Commission to waive the 30-day operative delay so that the proposal may
become operative immediately upon filing. The Exchange has indicated
that the proposed rule change to extend the expiration date will
continue to prevent unnecessary impediments to its operations,
including its critical adjudicatory processes, and its ability to
fulfill its statutory obligations to protect investors and maintain
fair and orderly markets that would otherwise result if the temporary
amendments were to expire on April 30, 2021.\16\ Importantly, extending
the relief provided in NASDAQ-2020-092 immediately upon filing and
without a 30-day operative delay will allow the Exchange to continue
critical adjudicatory and review processes in a reasonable and fair
manner and meet its critical investor protection goals, while also
following best practices with respect to the health and safety of its
employees.\17\ The Commission also notes that this proposal extends
without change the temporary relief previously provided by NASDAQ-2020-
092,\18\ and only during the period in which the Exchange's operations
are impacted by COVID-19. As proposed, the changes would be in place
through August 31, 2021 and the amended rules will revert back to their
original state at the conclusion of the temporary relief period and, if
applicable, any extension thereof.\19\ For these reasons, the
Commission believes that waiver of the 30-day operative delay for this
proposal is consistent with the protection of investors and the public
interest. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\20\
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ See supra Item II.
\17\ See FINRA Filing, 86 FR 19308 (noting the same in granting
FINRA's request to waive the 30-day operative delay so that SR-
FINRA-2021-006 would become operative immediately upon filing).
\18\ See supra note 5.
\19\ See supra note 4. As noted above, the Exchange states that
if it requires temporary relief from the rule requirements
identified in this proposal beyond August 31, 2021, it may submit a
separate rule filing to extend the effectiveness of the temporary
relief under these rules.
\20\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NASDAQ-2021-033 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-NASDAQ-2021-033. 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 (https://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 the Exchange. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-NASDAQ-2021-033 and should
be submitted on or before June 1, 2021.
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\21\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-09770 Filed 5-7-21; 8:45 am]
BILLING CODE 8011-01-P
