Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Expiration Dates of FINRA Rules 0180 (Application of Rules to Security-Based Swaps) and 4240 (Margin Requirements for Credit Default Swaps) and Amend FINRA Rule 4240 To Add Supplementary Material .02, 50391-50394 [2021-19291]
Download as PDF
<![CDATA[
Federal Register / Vol. 86, No. 171 / Wednesday, September 8, 2021 / Notices
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–NYSEArca–2021–73 and
should be submitted on or before
September 29, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.32
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–19293 Filed 9–7–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92837; File No. SR–FINRA–
2021–021]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Expiration
Dates of FINRA Rules 0180
(Application of Rules to SecurityBased Swaps) and 4240 (Margin
Requirements for Credit Default
Swaps) and Amend FINRA Rule 4240
To Add Supplementary Material .02
jbell on DSKJLSW7X2PROD with NOTICES
September 1, 2021.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule
19b–4 thereunder,2 notice is hereby
given that on August 20, 2021, the
32 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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 and
II 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to (i) extend the
expiration date of FINRA Rule 0180
(Application of Rules to Security-Based
Swaps) to February 6, 2022 and (ii)
extend to April 6, 2022 the
implementation of FINRA Rule 4240
(Margin Requirements for Credit Default
Swaps) and clarify that the rule does not
apply if a member is registered with the
SEC as a security-based swap (‘‘SBS’’)
dealer (‘‘SBSD’’).
The text of the proposed rule change
is available on FINRA’s website at
https://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 July 8, 2011, FINRA filed for
immediate effectiveness FINRA Rule
0180, which, with certain exceptions,
temporarily limits the application of
FINRA rules with respect to SBS,
thereby avoiding undue market
disruptions resulting from the change to
the definition of ‘‘security’’ under the
1 15
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Act to expressly encompass SBS.4
Pending the SEC’s final implementation
of its rulemakings under Title VII of the
Dodd-Frank Act,5 FINRA extended the
expiration date of FINRA Rule 0180 a
number of times, most recently in
January 2020, when FINRA extended
the expiration date to September 1,
2021.6 In addition, on May 22, 2009, the
Commission approved FINRA Rule
4240,7 which implements an interim
pilot program (the ‘‘Interim Pilot
Program’’) with respect to margin
requirements for certain transactions in
credit default swaps (‘‘CDS’’).8 On June
2, 2020, FINRA filed a proposed rule
change for immediate effectiveness
extending the implementation of FINRA
Rule 4240 to September 1, 2021.9
Therefore, both FINRA Rule 0180 and
the Interim Pilot Program under FINRA
Rule 4240 are currently scheduled to
expire on September 1, 2021.
On April 26, 2021, FINRA filed a
proposed rule change to amend FINRA
Rules 0180, 4120, 4210, 4220, 4240 and
9610 to clarify the application of its
rules to SBS following the SEC’s
completion of its rulemaking under
Title VII of the Dodd-Frank Act
regarding SBSDs and major SBS
participants (collectively, ‘‘SBS
Entities’’).10 Among other things, the
Proposal would adopt a new FINRA
Rule 0180, to replace expiring current
FINRA Rule 0180, that would generally
apply FINRA rules to members’
activities and positions with respect to
SBS, while providing limited exceptions
for SBS in circumstances where FINRA
believes such exceptions are
appropriate. The Proposal would also
adopt a new margin rule specifically
applicable to SBS, which would replace
the expiring Interim Pilot Program
4 See Securities Exchange Act Release No. 64884
(July 14, 2011), 76 FR 42755 (July 19, 2011) (Notice
of Filing and Immediate Effectiveness of File No.
SR–FINRA–2011–033).
5 See Public Law 111–203, 124 Stat. 1376 (2010),
Section 701.
6 See Securities Exchange Act Release No. 88023
(January 23, 2020), 85 FR 5261 (January 29, 2020)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2020–001).
7 See Securities Exchange Act Release No. 59955
(May 22, 2009), 74 FR 25586 (May 28, 2009) (Order
Approving File No. SR–FINRA–2009–012).
8 In March 2012, the SEC approved amendments
to FINRA Rule 4240 that, among other things, limit
the rule’s application to CDS that are SBS. See
Securities Exchange Act Release No. 66527 (March
7, 2012), 77 FR 14850 (March 13, 2012) (Order
Approving File No. SR–FINRA–2012–015).
9 See Securities Exchange Act Release No. 89036
(June 10, 2020), 85 FR 36458 (June 16, 2020) (Notice
of Filing and Immediate Effectiveness of File No.
SR–FINRA–2020–016).
10 See Securities Exchange Act Release No. 91789
(May 7, 2021), 86 FR 26084 (May 12, 2021) (Notice
of Filing of File No. SR–FINRA–2021–008)
(‘‘Proposal’’).
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Federal Register / Vol. 86, No. 171 / Wednesday, September 8, 2021 / Notices
establishing margin requirements for
CDS. FINRA originally proposed that
the effective date of the Proposal would
be October 6, 2021, to align with the
SEC’s compliance date for registration of
SBS Entities (the ‘‘Registration
Compliance Date’’). FINRA noted in the
Proposal that it intended to extend the
expiration dates of existing FINRA
Rules 0180 and 4240 to October 6, 2021
to align with the Registration
Compliance Date and implementation of
the Proposal.11
After consideration of comments on
the Proposal, as well as further feedback
from member firms, on August 9, 2021
FINRA filed Partial [sic] Amendment
No. 1 to the Proposal.12 The
Amendment (1) extends the effective
date of the proposed amendments to
FINRA Rules 0180, 4120 and 9610 from
October 6, 2021 to February 6, 2022; (2)
extends the effective date of the
proposed amendments to FINRA Rules
4210, 4220 and 4240 from October 6,
2021 to April 6, 2022; and (3) conforms
the proposed definition of ‘‘Legacy
Swap’’ in proposed FINRA Rule
4240(d)(12) to reflect the new effective
date of April 6, 2022. FINRA noted in
the Amendment that it intended to
extend the expiration date of existing
FINRA Rule 0180 until February 6,
2022, and the expiration date of existing
FINRA Rule 4240 until April 6, 2022, so
as to align with the new effective dates
of the Proposal described above.13
Accordingly, the proposed rule change
(i) amends existing FINRA Rule 0180 to
extend the expiration date of the rule
from September 1, 2021 to February 6,
2022 and (ii) amends existing FINRA
Rule 4240 to extend the expiration date
of the Interim Pilot Program from
September 1, 2021 to April 6, 2022.
FINRA believes it is appropriate to
extend the expiring rules so as to align
with the effective dates of the new rules
that will replace them, thereby avoiding
undue burdens on market participants
and undue market disruption.
FINRA also noted in the Amendment
that, beginning on the Registration
Compliance Date, members may register
with the SEC as SBSDs, and thereby
become subject to the margin
requirements applicable to SBSDs under
Exchange Act Rule 18a–3.14 Therefore,
if a member were to register as an SBSD
11 See
Proposal, supra note 10, at 26086 n.18.
Securities Exchange Act Release No. 92617
(August 9, 2021), 86 FR 44761 (August 13, 2021)
(Notice of Filing of Amendment No. 1 and Order
Instituting Proceedings To Determine Whether To
Approve or Disapprove the Proposed Rule Change,
as Modified by Amendment No. 1, Relating to
Security-Based Swaps) (‘‘Amendment’’).
13 See supra note 12.
14 See supra note 12.
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on the Registration Compliance Date or
during the period between the
Registration Compliance Date and April
6, 2022, the member would be subject
to both the new margin requirements for
SBS under Exchange Act Rule 18a–3
and the expiring Interim Pilot Program
for CDS. In order to avoid unnecessary
regulatory duplication or any potential
conflicting obligations as between
Exchange Act Rule 18a–3 and the
Interim Pilot Program, FINRA is also
amending existing, expiring FINRA Rule
4240 to add Supplementary Material .02
to clarify that the rule does not apply to
a member that is registered with the SEC
as an SBSD.15
FINRA 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 FINRA can
implement the proposed rule change on
September 1, 2021.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,16 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
general, to protect investors and the
public interest. FINRA believes that the
proposed rule change would further the
purposes of the Act because the
proposed rule change will help to avoid
undue burdens on market participants
and undue market disruption that could
result if existing FINRA Rule 0180
expires before the effective date of new
FINRA Rule 0180. Similarly, FINRA
believes that the proposed rule change
is consistent with the Act because
extending the implementation of FINRA
Rule 4240 will ensure that the Interim
Pilot Program establishing margin
requirements for CDS will continue to
apply until the new SBS margin rule
under new FINRA Rule 4240 becomes
effective, thereby helping to promote
stability in the financial markets and
regulatory certainty for members.
FINRA further believes that clarifying
that the Interim Pilot Program does not
apply to a registered SBSD will promote
15 FINRA notes that this provision is consistent
with the new SBS margin rule under the Proposal,
which provides that a member that is registered as
an SBSD shall instead comply with Exchange Act
Rule 18a–3. As discussed in the Proposal, FINRA
believes it should defer to the SEC’s margin
framework for registered SBSDs rather than impose
additional or different requirements on such
entities. See Proposal, supra note 10, at 26098.
16 15 U.S.C. 78o–3(b)(6).
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Frm 00070
Fmt 4703
Sfmt 4703
legal certainty and avoid unnecessary
regulatory duplication.
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. FINRA
believes that the proposed rule change
would prevent undue burdens on
market participants and undue market
disruption that would otherwise result
if FINRA Rule 0180 expires before the
effective date of new FINRA Rule 0180.
FINRA believes that, by extending the
expiration of FINRA Rule 0180, the
proposed rule change will serve to
promote regulatory clarity and
consistency, thereby reducing burdens
on the marketplace and facilitating
investor protection. Similarly, FINRA
believes that extending the
implementation of the Interim Pilot
Program under FINRA Rule 4240 will
ensure that the Interim Pilot Program
establishing margin requirements for
CDS will continue to apply until the
new SBS margin rule under new FINRA
Rule 4240 becomes effective, thereby
helping to promote stability in the
financial markets and regulatory
certainty for members. FINRA further
believes that clarifying that the Interim
Pilot Program does not apply to a
registered SBSD will promote legal
certainty and avoid unnecessary
regulatory duplication.
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 17 and Rule 19b–
4(f)(6) thereunder.18
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
17 15
18 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
08SEN1
Federal Register / Vol. 86, No. 171 / Wednesday, September 8, 2021 / Notices
to Rule 19b–4(f)(6)(iii),19 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. FINRA has requested that the
Commission waive the 30-day operative
delay requirement so that the proposed
rule change may become operative on
September 1, 2021. The Commission
hereby grants the request. The proposed
rule change is consistent with the goals
set forth by the Commission when it
issued the original temporary exemptive
relief,20 as well as the subsequent
extensions of the temporary exemptive
relief,21 and will help avoid undue
19 17
CFR 240.19b–4(f)(6)(iii).
Exchange Act Release No. 64795 (Jul. 1,
2011), 76 FR 39927 (Jul. 7, 2011) (Order Granting
Temporary Exemptions Under the Securities
Exchange Act of 1934 in Connection With the
Pending Revision of the Definition of ‘‘Security’’ To
Encompass Security-Based Swaps, and Request for
Comment); see also supra note 7.
21 See supra note 9 (extending the
implementation of FINRA Rule 4240 to September
1, 2021); supra note 6 (extending the expiration
date of FINRA Rule 0180 to September 1, 2021);
Exchange Act Release No. 85981 (May 31, 2019), 84
FR 26486 (Jun. 6, 2019) (Notice of Filing and
Immediate Effectiveness of File No. SR–FINRA–
2019–016) (extending the implementation of FINRA
Rule 4240 to July 20, 2020); Exchange Act Release
No. 85062 (Feb. 6, 2019), 84 FR 3524 (Feb. 12, 2019)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2019–001) (extending the
expiration date of FINRA Rule 0180 to February 12,
2020); Exchange Act Release No. 83474 (Jun. 20,
2018), 83 FR 29840 (Jun. 26, 2018) (Notice of Filing
and Immediate Effectiveness of File No. SR–
FINRA–2018–025) (extending the implementation
of FINRA Rule 4240 to July 18, 2019); Exchange Act
Release No. 82480 (Jan. 10, 2018), 83 FR 2480 (Jan.
17, 2018) (Notice of Filing and Immediate
Effectiveness of File No. SR–FINRA–2018–001)
(extending the expiration date of FINRA Rule 0180
to February 12, 2019); Exchange Act Release No.
81035 (Jun. 27, 2017), 82 FR 30914 (Jul. 3, 2017)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2017–019) (extending the
implementation of FINRA Rule 4240 to July 18,
2018); Exchange Act Release No. 79752 (Jan. 6,
2017), 82 FR 3824 (Jan. 12, 2017) (Notice of Filing
and Immediate Effectiveness of File No. SR–
FINRA–2017–001) (extending the expiration date of
FINRA Rule 0180 to February 12, 2018); Exchange
Act Release No. 78182 (Jun. 28, 2016), 81 FR 43690
(Jul. 5, 2016) (Notice of Filing and Immediate
Effectiveness of File No. SR–FINRA–2016–020)
(extending the implementation of FINRA Rule 4240
to July 18, 2017); Exchange Act Release No. 76850
(Jan. 7, 2016), 81 FR 1666 (Jan. 13, 2016) (Notice
of Filing and Immediate Effectiveness of File No.
SR–FINRA–2016–001) (extending the expiration
date of FINRA Rule 0180 to February 11, 2017);
Exchange Act Release No. 75069 (May 29, 2015), 80
FR 31931 (Jun. 4, 2015) (Notice of Filing and
Immediate Effectiveness of File No. SR–FINRA–
2015–013) (extending the implementation of FINRA
Rule 4240 to July 18, 2016); Exchange Act Release
No. 74049 (Jan. 14, 2015), 80 FR 2983 (Jan. 21,
2015) (Notice of Filing and Immediate Effectiveness
of File No. SR–FINRA–2015–001) (extending the
expiration date of FINRA Rule 0180 to February 11,
2016); Exchange Act Release No. 72522 (Jul. 2,
2014), 79 FR 39031 (Jul. 9, 2014) (Notice of Filing
and Immediate Effectiveness of File No. SR–
FINRA–2014–029) (extending the implementation
of FINRA Rule 4240 to July 17, 2015); Exchange Act
Release No. 71485 (Feb. 5, 2014), 79 FR 7731 (Feb.
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20 See
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17:21 Sep 07, 2021
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market interruption resulting from the
change of the definition of ‘‘security’’
under the Exchange Act and the
expiration of FINRA Rules 0180 and
4240. Furthermore, the Commission
finds that adding Supplemental Material
.02 would help avoid unnecessary
regulatory duplication or any potential
conflicting obligations as between
Exchange Act Rule 18a–3 and the
Interim Pilot Program. Therefore, the
Commission believes it is consistent
with the protection of investors and the
public interest to waive the 30-day
operative delay requirement.22
Therefore, the Commission designates
the proposal as operative on September
1, 2021.
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
10, 2014) (Notice of Filing and Immediate
Effectiveness of File No. SR–FINRA–2014–001)
(extending the expiration date of FINRA Rule 0180
to February 11, 2015); Exchange Act Release No.
69993 (Jul. 16, 2013), 78 FR 43945 (Jul. 22, 2013)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2013–030) (extending the
implementation of FINRA Rule 4240 to July 17,
2014); Exchange Act Release No. 69262 (Apr. 1,
2013), 78 FR 20708 (Apr. 5, 2013) (Notice of Filing
and Immediate Effectiveness of File No. SR–
FINRA–2013–019) (extending the expiration date of
FINRA Rule 0180 to February 11, 2014); Exchange
Act Release No. 68471 (Dec. 19, 2012), 77 FR 76113
(Dec. 26, 2012) (Notice of Filing and Immediate
Effectiveness of File No. SR–FINRA–2012–056)
(extending the expiration date of FINRA Rule 0180
to July 17, 2013); Exchange Act Release No. 67449
(Jul. 17, 2012), 77 FR 43128 (Jul. 23, 2012) (Notice
of Filing and Immediate Effectiveness of File No.
SR–FINRA–2012–035) (extending the
implementation of FINRA Rule 4240 to July 17,
2013); Exchange Act Release No. 66528 (Mar. 7,
2012), 77 FR 14848 (Mar. 13, 2012) (Notice of Filing
and Order Granting Accelerated Approval of File
No. SR–FINRA–2012–014) (extending the
implementation of Rule 4240 to July 17, 2012);
Exchange Act Release No. 66156 (Jan. 13, 2012), 77
FR 3027 (Jan. 20, 2012) (Notice of Filing and
Immediate Effectiveness of File No. SR–FINRA–
2012–004) (extending the expiration date of FINRA
Rule 0180 to January 17, 2013); Exchange Act
Release No. 64892 (Jul. 14, 2011), 76 FR 43360 (Jul.
20, 2011) (Notice of Filing and Order Granting
Accelerated Approval of File No. SR–FINRA–2011–
034) (extending the implementation of Rule 4240 to
January 17, 2012); Exchange Act Release No. 64884
(Jul. 14, 2011), 76 FR 42755 (Jul. 19, 2011) (Notice
of Filing and Immediate Effectiveness of File No.
SR–FINRA–2011–033) (extending the expiration
date of FINRA Rule 0180 to January 17, 2012);
Exchange Act Release No. 63391 (Nov. 30, 2010),
75 FR 75718 (Dec. 6, 2010) (Notice of Filing and
Immediate Effectiveness of File No. SR–FINRA–
2010–063) (extending the implementation of Rule
4240 to July 16, 2011); Exchange Act Release No.
60722 (Sep. 25, 2009), 74 FR 50856 (Oct. 1, 2010)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2009–063) (extending the
implementation of Rule 4240 to November 30,
2010).
22 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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50393
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 rule-comments@
sec.gov. Please include File Number SR–
FINRA–2021–021 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–2021–021. 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
a.m. and 3 p.m. Copies of such 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–
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Federal Register / Vol. 86, No. 171 / Wednesday, September 8, 2021 / Notices
2021–021 and should be submitted on
or before September 29, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–19291 Filed 9–7–21; 8:45 am]
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92845; File No. SR–NYSE–
2021–48]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Delete the
Order Audit Trail System Rules in the
Rule 7400 Series
September 1, 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 August
30, 2021, New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule from
interested persons.
jbell on DSKJLSW7X2PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to delete the
Order Audit Trail System (‘‘OATS’’)
rules in the Rule 7400 Series as these
Rules provide for the collection of
information that is duplicative of the
data collection requirements of the CAT.
Further, the Financial Industry
Regulatory Authority (‘‘FINRA’’) has
determined to eliminate its OATS rules.
The proposed rule change is available
on the Exchange’s website at
www.nyse.com, 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
self-regulatory organization included
statements concerning the purpose of,
23 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
17:21 Sep 07, 2021
Jkt 253001
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 self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
1. Purpose
Rule 613 of Regulation NMS requires
national securities exchanges and
FINRA to create, implement, and
maintain a consolidated audit trail to
capture customer and order event
information for orders in NMS
Securities and OTC Equity Securities,
across all markets, from the time of
order inception through routing,
cancellation, modification, or execution
in a single consolidated data source.
The Participants filed the Plan to
comply with Rule 613 of Regulation
NMS under the Act. The Plan was
published for comment in the Federal
Register on May 17, 2016,3 and
approved by the Commission, as
modified, on November 15, 2016.4
On August 14, 2020, FINRA filed with
the Commission a proposed rule change
to delete the OATS rules once Industry
Members are effectively reporting to the
CAT (the ‘‘OATS Retirement Filing’’).5
On October 29, 2020, FINRA filed
Amendment No. 1 to the proposed rule
change (‘‘Amendment No. 1’’) and a
response to the comments that were
submitted on the original filing
(‘‘Response to Comments’’).6 On
November 30, 2020, the Commission
approved the proposed rule change, as
modified by Amendment No. 1, on an
accelerated basis.7 On June 17, 2021,
FINRA filed a proposed rule change
setting forth the basis for its
determination that the accuracy and
reliability of the CAT meet the
3 See Securities Exchange Act Release No. 77724
(April 27, 2016), 81 FR 30614 (May 17, 2016).
4 See Securities Exchange Act Release No. 79318
(November 15, 2016), 81 FR 84696 (November 23,
2016) (‘‘Order Approving the National Market
System Plan Governing the Consolidated Audit
Trail) (‘‘Approval Order’’).
5 See Securities Exchange Act Release No. 89679
(August 26, 2020), 85 FR 54461 (September 1, 2020)
(Notice of Filing of File No. SR–FINRA–2020–024).
6 See Letter from Lisa C. Horrigan, Associate
General Counsel, FINRA, to Vanessa Countryman,
Secretary, Commission, dated October 29, 2020.
7 See Securities Exchange Act Release No. 90535
(November 30, 2020), 85 FR 78395 (December 4,
2020) (Notice of Filing of Amendment No. 1 and
Order Granting Accelerated Approval of SR–
FINRA–2020–024).
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
standards approved by the Commission
in the OATS Retirement Filing for
purposes of eliminating the OATS
rules.8 The FINRA proposal stated that
FINRA would retire OATS effective
September 1, 2021.
After conducting an analysis of its
rules in accordance with the CAT NMS
Plan, the Exchange has determined that
the information collected pursuant to
the OATS rules is intended to be
collected by CAT. Further, the Exchange
believes that the Rule 7400 Series will
no longer be necessary and proposes to
delete such rules from the Exchange’s
rulebook unless FINRA decides not to
retire OATS as scheduled in which case
member organizations will still be
required to report to OATS. Discussed
below is a description of the duplicative
rule requirements as well as the
timeline for eliminating the duplicative
rules followed by a discussion on the
OATS Retirement Filing that formed the
basis for retiring OATS.
Duplicative OATS Requirements
The Rule 7400 Series consists of Rules
7410 through 7470 and sets forth the
recording and reporting requirements of
the OATS Rules. The OATS Rules
require all Exchange member
organizations and associated persons to
record in electronic form and report to
FINRA, on a daily basis, certain
information with respect to orders
originated, received, transmitted,
modified, canceled, or executed by
members in all NMS stocks, as that term
is defined in Rule 600(b)(47) of
Regulation NMS,9 traded on the
Exchange, including NYSE-listed
securities. The Exchange relies on the
information reported to OATS either to
conduct surveillance or to facilitate
surveillance conducted by FINRA
pursuant to a regulatory services
agreement (‘‘RSA’’). This information is
used by Exchange and FINRA staff to
conduct surveillance and investigations
of member firms for violations of
Exchange and FINRA rules and federal
securities laws. The Exchange believes
it is appropriate to retire OATS because
the requirements of the Rule 7400 Series
are duplicative of information available
in the CAT and thus will no longer be
necessary now that the CAT is
operational.
8 See Securities Exchange Act Release No. 92239
(June 23, 2021), 86 FR 34293 (June 29, 2021) (SR–
FINRA–2021–017) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change Relating to
the Retirement of FINRA’s Order Audit Trail
System).
9 17 CFR 242.600(B)(47).
E:\FR\FM\08SEN1.SGM
08SEN1
]]>Agencies
[Federal Register Volume 86, Number 171 (Wednesday, September 8, 2021)]
[Notices]
[Pages 50391-50394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19291]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92837; File No. SR-FINRA-2021-021]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Extend the Expiration Dates of FINRA Rules 0180
(Application of Rules to Security-Based Swaps) and 4240 (Margin
Requirements for Credit Default Swaps) and Amend FINRA Rule 4240 To Add
Supplementary Material .02
September 1, 2021.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'' or ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on August 20, 2021, the 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 and II 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to (i) extend the expiration date of FINRA Rule
0180 (Application of Rules to Security-Based Swaps) to February 6, 2022
and (ii) extend to April 6, 2022 the implementation of FINRA Rule 4240
(Margin Requirements for Credit Default Swaps) and clarify that the
rule does not apply if a member is registered with the SEC as a
security-based swap (``SBS'') dealer (``SBSD'').
The text of the proposed rule change is available on FINRA's
website at https://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 July 8, 2011, FINRA filed for immediate effectiveness FINRA Rule
0180, which, with certain exceptions, temporarily limits the
application of FINRA rules with respect to SBS, thereby avoiding undue
market disruptions resulting from the change to the definition of
``security'' under the Act to expressly encompass SBS.\4\ Pending the
SEC's final implementation of its rulemakings under Title VII of the
Dodd-Frank Act,\5\ FINRA extended the expiration date of FINRA Rule
0180 a number of times, most recently in January 2020, when FINRA
extended the expiration date to September 1, 2021.\6\ In addition, on
May 22, 2009, the Commission approved FINRA Rule 4240,\7\ which
implements an interim pilot program (the ``Interim Pilot Program'')
with respect to margin requirements for certain transactions in credit
default swaps (``CDS'').\8\ On June 2, 2020, FINRA filed a proposed
rule change for immediate effectiveness extending the implementation of
FINRA Rule 4240 to September 1, 2021.\9\ Therefore, both FINRA Rule
0180 and the Interim Pilot Program under FINRA Rule 4240 are currently
scheduled to expire on September 1, 2021.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 64884 (July 14,
2011), 76 FR 42755 (July 19, 2011) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2011-033).
\5\ See Public Law 111-203, 124 Stat. 1376 (2010), Section 701.
\6\ See Securities Exchange Act Release No. 88023 (January 23,
2020), 85 FR 5261 (January 29, 2020) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2020-001).
\7\ See Securities Exchange Act Release No. 59955 (May 22,
2009), 74 FR 25586 (May 28, 2009) (Order Approving File No. SR-
FINRA-2009-012).
\8\ In March 2012, the SEC approved amendments to FINRA Rule
4240 that, among other things, limit the rule's application to CDS
that are SBS. See Securities Exchange Act Release No. 66527 (March
7, 2012), 77 FR 14850 (March 13, 2012) (Order Approving File No. SR-
FINRA-2012-015).
\9\ See Securities Exchange Act Release No. 89036 (June 10,
2020), 85 FR 36458 (June 16, 2020) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2020-016).
---------------------------------------------------------------------------
On April 26, 2021, FINRA filed a proposed rule change to amend
FINRA Rules 0180, 4120, 4210, 4220, 4240 and 9610 to clarify the
application of its rules to SBS following the SEC's completion of its
rulemaking under Title VII of the Dodd-Frank Act regarding SBSDs and
major SBS participants (collectively, ``SBS Entities'').\10\ Among
other things, the Proposal would adopt a new FINRA Rule 0180, to
replace expiring current FINRA Rule 0180, that would generally apply
FINRA rules to members' activities and positions with respect to SBS,
while providing limited exceptions for SBS in circumstances where FINRA
believes such exceptions are appropriate. The Proposal would also adopt
a new margin rule specifically applicable to SBS, which would replace
the expiring Interim Pilot Program
[[Page 50392]]
establishing margin requirements for CDS. FINRA originally proposed
that the effective date of the Proposal would be October 6, 2021, to
align with the SEC's compliance date for registration of SBS Entities
(the ``Registration Compliance Date''). FINRA noted in the Proposal
that it intended to extend the expiration dates of existing FINRA Rules
0180 and 4240 to October 6, 2021 to align with the Registration
Compliance Date and implementation of the Proposal.\11\
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\10\ See Securities Exchange Act Release No. 91789 (May 7,
2021), 86 FR 26084 (May 12, 2021) (Notice of Filing of File No. SR-
FINRA-2021-008) (``Proposal'').
\11\ See Proposal, supra note 10, at 26086 n.18.
---------------------------------------------------------------------------
After consideration of comments on the Proposal, as well as further
feedback from member firms, on August 9, 2021 FINRA filed Partial [sic]
Amendment No. 1 to the Proposal.\12\ The Amendment (1) extends the
effective date of the proposed amendments to FINRA Rules 0180, 4120 and
9610 from October 6, 2021 to February 6, 2022; (2) extends the
effective date of the proposed amendments to FINRA Rules 4210, 4220 and
4240 from October 6, 2021 to April 6, 2022; and (3) conforms the
proposed definition of ``Legacy Swap'' in proposed FINRA Rule
4240(d)(12) to reflect the new effective date of April 6, 2022. FINRA
noted in the Amendment that it intended to extend the expiration date
of existing FINRA Rule 0180 until February 6, 2022, and the expiration
date of existing FINRA Rule 4240 until April 6, 2022, so as to align
with the new effective dates of the Proposal described above.\13\
Accordingly, the proposed rule change (i) amends existing FINRA Rule
0180 to extend the expiration date of the rule from September 1, 2021
to February 6, 2022 and (ii) amends existing FINRA Rule 4240 to extend
the expiration date of the Interim Pilot Program from September 1, 2021
to April 6, 2022. FINRA believes it is appropriate to extend the
expiring rules so as to align with the effective dates of the new rules
that will replace them, thereby avoiding undue burdens on market
participants and undue market disruption.
---------------------------------------------------------------------------
\12\ See Securities Exchange Act Release No. 92617 (August 9,
2021), 86 FR 44761 (August 13, 2021) (Notice of Filing of Amendment
No. 1 and Order Instituting Proceedings To Determine Whether To
Approve or Disapprove the Proposed Rule Change, as Modified by
Amendment No. 1, Relating to Security-Based Swaps) (``Amendment'').
\13\ See supra note 12.
---------------------------------------------------------------------------
FINRA also noted in the Amendment that, beginning on the
Registration Compliance Date, members may register with the SEC as
SBSDs, and thereby become subject to the margin requirements applicable
to SBSDs under Exchange Act Rule 18a-3.\14\ Therefore, if a member were
to register as an SBSD on the Registration Compliance Date or during
the period between the Registration Compliance Date and April 6, 2022,
the member would be subject to both the new margin requirements for SBS
under Exchange Act Rule 18a-3 and the expiring Interim Pilot Program
for CDS. In order to avoid unnecessary regulatory duplication or any
potential conflicting obligations as between Exchange Act Rule 18a-3
and the Interim Pilot Program, FINRA is also amending existing,
expiring FINRA Rule 4240 to add Supplementary Material .02 to clarify
that the rule does not apply to a member that is registered with the
SEC as an SBSD.\15\
---------------------------------------------------------------------------
\14\ See supra note 12.
\15\ FINRA notes that this provision is consistent with the new
SBS margin rule under the Proposal, which provides that a member
that is registered as an SBSD shall instead comply with Exchange Act
Rule 18a-3. As discussed in the Proposal, FINRA believes it should
defer to the SEC's margin framework for registered SBSDs rather than
impose additional or different requirements on such entities. See
Proposal, supra note 10, at 26098.
---------------------------------------------------------------------------
FINRA 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 FINRA can implement the proposed rule change on
September 1, 2021.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\16\ 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 general, to protect investors and the
public interest. FINRA believes that the proposed rule change would
further the purposes of the Act because the proposed rule change will
help to avoid undue burdens on market participants and undue market
disruption that could result if existing FINRA Rule 0180 expires before
the effective date of new FINRA Rule 0180. Similarly, FINRA believes
that the proposed rule change is consistent with the Act because
extending the implementation of FINRA Rule 4240 will ensure that the
Interim Pilot Program establishing margin requirements for CDS will
continue to apply until the new SBS margin rule under new FINRA Rule
4240 becomes effective, thereby helping to promote stability in the
financial markets and regulatory certainty for members. FINRA further
believes that clarifying that the Interim Pilot Program does not apply
to a registered SBSD will promote legal certainty and avoid unnecessary
regulatory duplication.
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
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. FINRA believes that the
proposed rule change would prevent undue burdens on market participants
and undue market disruption that would otherwise result if FINRA Rule
0180 expires before the effective date of new FINRA Rule 0180. FINRA
believes that, by extending the expiration of FINRA Rule 0180, the
proposed rule change will serve to promote regulatory clarity and
consistency, thereby reducing burdens on the marketplace and
facilitating investor protection. Similarly, FINRA believes that
extending the implementation of the Interim Pilot Program under FINRA
Rule 4240 will ensure that the Interim Pilot Program establishing
margin requirements for CDS will continue to apply until the new SBS
margin rule under new FINRA Rule 4240 becomes effective, thereby
helping to promote stability in the financial markets and regulatory
certainty for members. FINRA further believes that clarifying that the
Interim Pilot Program does not apply to a registered SBSD will promote
legal certainty and avoid unnecessary regulatory duplication.
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 \17\ and Rule 19b-
4(f)(6) thereunder.\18\
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\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after the date of the filing.
However, pursuant
[[Page 50393]]
to Rule 19b-4(f)(6)(iii),\19\ the Commission may designate a shorter
time if such action is consistent with the protection of investors and
the public interest. FINRA has requested that the Commission waive the
30-day operative delay requirement so that the proposed rule change may
become operative on September 1, 2021. The Commission hereby grants the
request. The proposed rule change is consistent with the goals set
forth by the Commission when it issued the original temporary exemptive
relief,\20\ as well as the subsequent extensions of the temporary
exemptive relief,\21\ and will help avoid undue market interruption
resulting from the change of the definition of ``security'' under the
Exchange Act and the expiration of FINRA Rules 0180 and 4240.
Furthermore, the Commission finds that adding Supplemental Material .02
would help avoid unnecessary regulatory duplication or any potential
conflicting obligations as between Exchange Act Rule 18a-3 and the
Interim Pilot Program. Therefore, the Commission believes it is
consistent with the protection of investors and the public interest to
waive the 30-day operative delay requirement.\22\ Therefore, the
Commission designates the proposal as operative on September 1, 2021.
---------------------------------------------------------------------------
\19\ 17 CFR 240.19b-4(f)(6)(iii).
\20\ See Exchange Act Release No. 64795 (Jul. 1, 2011), 76 FR
39927 (Jul. 7, 2011) (Order Granting Temporary Exemptions Under the
Securities Exchange Act of 1934 in Connection With the Pending
Revision of the Definition of ``Security'' To Encompass Security-
Based Swaps, and Request for Comment); see also supra note 7.
\21\ See supra note 9 (extending the implementation of FINRA
Rule 4240 to September 1, 2021); supra note 6 (extending the
expiration date of FINRA Rule 0180 to September 1, 2021); Exchange
Act Release No. 85981 (May 31, 2019), 84 FR 26486 (Jun. 6, 2019)
(Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-
2019-016) (extending the implementation of FINRA Rule 4240 to July
20, 2020); Exchange Act Release No. 85062 (Feb. 6, 2019), 84 FR 3524
(Feb. 12, 2019) (Notice of Filing and Immediate Effectiveness of
File No. SR-FINRA-2019-001) (extending the expiration date of FINRA
Rule 0180 to February 12, 2020); Exchange Act Release No. 83474
(Jun. 20, 2018), 83 FR 29840 (Jun. 26, 2018) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2018-025) (extending
the implementation of FINRA Rule 4240 to July 18, 2019); Exchange
Act Release No. 82480 (Jan. 10, 2018), 83 FR 2480 (Jan. 17, 2018)
(Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-
2018-001) (extending the expiration date of FINRA Rule 0180 to
February 12, 2019); Exchange Act Release No. 81035 (Jun. 27, 2017),
82 FR 30914 (Jul. 3, 2017) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2017-019) (extending the
implementation of FINRA Rule 4240 to July 18, 2018); Exchange Act
Release No. 79752 (Jan. 6, 2017), 82 FR 3824 (Jan. 12, 2017) (Notice
of Filing and Immediate Effectiveness of File No. SR-FINRA-2017-001)
(extending the expiration date of FINRA Rule 0180 to February 12,
2018); Exchange Act Release No. 78182 (Jun. 28, 2016), 81 FR 43690
(Jul. 5, 2016) (Notice of Filing and Immediate Effectiveness of File
No. SR-FINRA-2016-020) (extending the implementation of FINRA Rule
4240 to July 18, 2017); Exchange Act Release No. 76850 (Jan. 7,
2016), 81 FR 1666 (Jan. 13, 2016) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2016-001) (extending the
expiration date of FINRA Rule 0180 to February 11, 2017); Exchange
Act Release No. 75069 (May 29, 2015), 80 FR 31931 (Jun. 4, 2015)
(Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-
2015-013) (extending the implementation of FINRA Rule 4240 to July
18, 2016); Exchange Act Release No. 74049 (Jan. 14, 2015), 80 FR
2983 (Jan. 21, 2015) (Notice of Filing and Immediate Effectiveness
of File No. SR-FINRA-2015-001) (extending the expiration date of
FINRA Rule 0180 to February 11, 2016); Exchange Act Release No.
72522 (Jul. 2, 2014), 79 FR 39031 (Jul. 9, 2014) (Notice of Filing
and Immediate Effectiveness of File No. SR-FINRA-2014-029)
(extending the implementation of FINRA Rule 4240 to July 17, 2015);
Exchange Act Release No. 71485 (Feb. 5, 2014), 79 FR 7731 (Feb. 10,
2014) (Notice of Filing and Immediate Effectiveness of File No. SR-
FINRA-2014-001) (extending the expiration date of FINRA Rule 0180 to
February 11, 2015); Exchange Act Release No. 69993 (Jul. 16, 2013),
78 FR 43945 (Jul. 22, 2013) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2013-030) (extending the
implementation of FINRA Rule 4240 to July 17, 2014); Exchange Act
Release No. 69262 (Apr. 1, 2013), 78 FR 20708 (Apr. 5, 2013) (Notice
of Filing and Immediate Effectiveness of File No. SR-FINRA-2013-019)
(extending the expiration date of FINRA Rule 0180 to February 11,
2014); Exchange Act Release No. 68471 (Dec. 19, 2012), 77 FR 76113
(Dec. 26, 2012) (Notice of Filing and Immediate Effectiveness of
File No. SR-FINRA-2012-056) (extending the expiration date of FINRA
Rule 0180 to July 17, 2013); Exchange Act Release No. 67449 (Jul.
17, 2012), 77 FR 43128 (Jul. 23, 2012) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2012-035) (extending
the implementation of FINRA Rule 4240 to July 17, 2013); Exchange
Act Release No. 66528 (Mar. 7, 2012), 77 FR 14848 (Mar. 13, 2012)
(Notice of Filing and Order Granting Accelerated Approval of File
No. SR-FINRA-2012-014) (extending the implementation of Rule 4240 to
July 17, 2012); Exchange Act Release No. 66156 (Jan. 13, 2012), 77
FR 3027 (Jan. 20, 2012) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2012-004) (extending the
expiration date of FINRA Rule 0180 to January 17, 2013); Exchange
Act Release No. 64892 (Jul. 14, 2011), 76 FR 43360 (Jul. 20, 2011)
(Notice of Filing and Order Granting Accelerated Approval of File
No. SR-FINRA-2011-034) (extending the implementation of Rule 4240 to
January 17, 2012); Exchange Act Release No. 64884 (Jul. 14, 2011),
76 FR 42755 (Jul. 19, 2011) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2011–033) (extending the
expiration date of FINRA Rule 0180 to January 17, 2012); Exchange
Act Release No. 63391 (Nov. 30, 2010), 75 FR 75718 (Dec. 6, 2010)
(Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-
2010-063) (extending the implementation of Rule 4240 to July 16,
2011); Exchange Act Release No. 60722 (Sep. 25, 2009), 74 FR 50856
(Oct. 1, 2010) (Notice of Filing and Immediate Effectiveness of File
No. SR-FINRA-2009-063) (extending the implementation of Rule 4240 to
November 30, 2010).
\22\ 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).
---------------------------------------------------------------------------
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-FINRA-2021-021 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-2021-021. 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 a.m. and 3
p.m. Copies of such 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-
[[Page 50394]]
2021-021 and should be submitted on or before September 29, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
---------------------------------------------------------------------------
\23\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-19291 Filed 9-7-21; 8:45 am]
BILLING CODE 8011-01-P
