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, 51395-51397 [2021-19856]
Download as PDF
<![CDATA[
Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices
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–C2–2021–013 and should
be submitted on or before October 6,
2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–19861 Filed 9–14–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92911; File No. SR–
NASDAQ–2021–067]
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
khammond on DSKJM1Z7X2PROD with NOTICES
September 9, 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, 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
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
VerDate Sep<11>2014
17:08 Sep 14, 2021
Jkt 253001
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 August 31, 2021, to December 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.
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 April
4 If the Exchange seeks to provide additional
temporary relief from the rule requirements
identified in this proposed rule change beyond
December 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.
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
51395
2021, the Exchange filed a proposed
rule change, SR–NASDAQ–2021–033, to
extend the expiration date of the
temporary amendments in SR–
NASDAQ–2020–076 from April 30,
2021, to August 31, 2021.5 While there
are signs of improvement, much
uncertainty remains for the coming
months. The emergence of the Delta
variant, dissimilar vaccination rates
throughout the United States, and the
uptick in transmissions in many
locations indicate that COVID–19
remains an active and real public health
concern.6 Based on its assessment of
current COVID–19 conditions and the
lack of a clear timeframe for a sustained
and widespread abatement of COVID–
19-related health concerns and
corresponding restrictions,7 the
Exchange has determined that there is a
continued need for temporary relief for
several months beyond August 31, 2021.
Accordingly, the Exchange proposes to
extend the expiration date of the
temporary rule amendments in SR–
NASDAQ–2020–076 from August 31,
2021, to December 31, 2021.
On November 5, 2020, the Exchange
filed, and subsequently extended to
August 31, 2021, SR–NASDAQ–2020–
076, to temporarily amend Exchange
Rules 1015, 9261, 9524 and 9830 to
grant OHO and the ERC authority 8 to
conduct hearings in connection with
appeals of Membership Application
Program decisions, disciplinary actions,
eligibility proceedings and temporary
5 See Securities Exchange Act Release No. 91763
(May 4, 2021), 86 FR 25055 (May 10, 2021) (Notice
of Filing and Immediate Effectiveness of File No.
SR–NASDAQ–2021–033).
6 For example, President Joe Biden on July 29,
2021, announced several measures to increase the
number of people vaccinated against COVID–19 and
to slow the spread of the Delta variant, including
strengthening safety protocols for federal
government employees and contractors. See https://
www.whitehouse.gov/briefing-room/statementsreleases/2021/07/29/fact-sheet-president-biden-toannounce-new-actions-to-get-more-americansvaccinated-and-slow-the-spread-of-the-deltavariant/.
7 For instance, the Centers for Disease Control and
Prevention on July 27, 2021, began recommending
that fully vaccinated people wear a mask in public
indoor settings in areas of substantial or high
transmission and noted that fully vaccinated people
might choose to wear a mask regardless of the level
of transmission, particularly if they are
immunocompromised or at increased risk for severe
disease from COVID–19. See https://www.cdc.gov/
coronavirus/2019-ncov/vaccines/fully-vaccinatedguidance.html. Also, several cities, including
Atlanta, Baltimore, Los Angeles, New Haven and
San Francisco, have recently reinstated their mask
mandates.
8 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.
E:\FR\FM\15SEN1.SGM
15SEN1
51396
Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices
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.9
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.10 Based on
that data and guidance, the Exchange
does not believe the COVID–19-related
health concerns necessitating this relief
will meaningfully subside by August 31,
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 August 31, 2021, to
December 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.
khammond on DSKJM1Z7X2PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,11 in general, and furthers the
objectives of Section 6(b)(5) of the Act,12
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
9 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); 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); supra note 5.
10 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.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014
17:08 Sep 14, 2021
Jkt 253001
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,13 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 the current and
frequently changing COVID–19
conditions and the uncertainty around
when those conditions will see
meaningful, widespread, and sustained
improvement, without this relief
allowing OHO and ERC hearings to
continue to proceed by video
conference, the Exchange might be
required to postpone some or almost all
hearings 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
13 See Securities Exchange Act Release No. 92685
(August 17, 2021), 86 FR 47169 (August 23, 2021)
(SR–FINRA–2021–019).
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
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 August 31, 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 14 and
subparagraph (f)(6) of Rule 19b–4
thereunder.15
A proposed rule change filed under
Rule 19b–4(f)(6) 16 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),17 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
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
14 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.
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6)(iii).
15 17
E:\FR\FM\15SEN1.SGM
15SEN1
Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices
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 August 31, 2021.18
Importantly, extending the relief
provided in SR–NASDAQ–2021–033
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.19 The Commission also
notes that this proposal extends without
change the temporary relief previously
provided by SR–NASDAQ–2021–033.20
As proposed, the changes would be in
place through December 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.21 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.22
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.
18 See
supra Item II.
FINRA Filing, 86 FR at 47171 (noting the
same in granting FINRA’s request to waive the 30day operative delay so that SR–FINRA–2021–019
would become operative immediately upon filing).
20 See supra note 5.
21 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 December 31, 2021, it may submit a
separate rule filing to extend the effectiveness of the
temporary relief under these rules.
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).
khammond on DSKJM1Z7X2PROD with NOTICES
19 See
VerDate Sep<11>2014
17:08 Sep 14, 2021
Jkt 253001
51397
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Investment Company Act Release No.
34373; File No. 812–15230]
• 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–2021–067 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–2021–067. 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–2021–067 and should be
submitted on or before October 6, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–19856 Filed 9–14–21; 8:45 am]
BILLING CODE 8011–01–P
23 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00060
Fmt 4703
Sfmt 4703
High Income Securities Fund
September 9, 2021.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice.
AGENCY:
Notice of an application under section
6(c) of the Investment Company Act of
1940 (‘‘Act’’) for an exemption from
section 19(b) of the Act and rule
19b–1 under the Act to permit a
registered closed-end investment
company to make periodic distributions
of long-term capital gains more
frequently than permitted by section
19(b) or rule
19b–1.
Applicant: High Income Securities
Fund, a Massachusetts business trust
that is an internally managed registered
closed-end diversified management
investment company (the ‘‘Fund’’ or the
‘‘Applicant’’).1
Filing Dates: The application was
filed on May 13, 2021, and amended on
July 7, 2021.
Hearing or Notification of Hearing: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by emailing the
Commission’s Secretary at SecretarysOffice@sec.gov and serving applicants
with a copy of the request by email.
Hearing requests should be received by
the Commission by 5:30 p.m. on
October 4, 2021, and should be
accompanied by proof of service on
applicants, in the form of an affidavit or,
for lawyers, a certificate of service.
Pursuant to rule 0–5 under the Act,
hearing requests should state the nature
of the writer’s interest, any facts bearing
upon the desirability of a hearing on the
matter, the reason for the request, and
the issues contested. Persons who wish
to be notified of a hearing may request
notification by emailing the
Commission’s Secretary at SecretarysOffice@sec.gov.
ADDRESSES: The Commission:
Secretarys-Office@sec.gov. Applicants:
c/o Thomas R. Westle, Esq., Blank Rome
LLP, twestle@blankrome.com.
FOR FURTHER INFORMATION CONTACT:
Deepak T. Pai, Senior Counsel, at (202)
551–6876 or Trace W. Rakestraw,
1 Applicants request that the order also apply to
any successor in interest to the Fund. A successor
in interest is limited to entities that result from a
reorganization into another jurisdiction or a change
in the type of business organization.
E:\FR\FM\15SEN1.SGM
15SEN1
]]>Agencies
[Federal Register Volume 86, Number 176 (Wednesday, September 15, 2021)]
[Notices]
[Pages 51395-51397]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19856]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92911; File No. SR-NASDAQ-2021-067]
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
September 9, 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, 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.
---------------------------------------------------------------------------
\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
The Exchange proposes to extend the expiration date of the
temporary amendments in SR-NASDAQ-2020-076 from August 31, 2021, to
December 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 December 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 April 2021, the Exchange
filed a proposed rule change, SR-NASDAQ-2021-033, to extend the
expiration date of the temporary amendments in SR-NASDAQ-2020-076 from
April 30, 2021, to August 31, 2021.\5\ While there are signs of
improvement, much uncertainty remains for the coming months. The
emergence of the Delta variant, dissimilar vaccination rates throughout
the United States, and the uptick in transmissions in many locations
indicate that COVID-19 remains an active and real public health
concern.\6\ Based on its assessment of current COVID-19 conditions and
the lack of a clear timeframe for a sustained and widespread abatement
of COVID-19-related health concerns and corresponding restrictions,\7\
the Exchange has determined that there is a continued need for
temporary relief for several months beyond August 31, 2021.
Accordingly, the Exchange proposes to extend the expiration date of the
temporary rule amendments in SR-NASDAQ-2020-076 from August 31, 2021,
to December 31, 2021.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 91763 (May 4, 2021),
86 FR 25055 (May 10, 2021) (Notice of Filing and Immediate
Effectiveness of File No. SR-NASDAQ-2021-033).
\6\ For example, President Joe Biden on July 29, 2021, announced
several measures to increase the number of people vaccinated against
COVID-19 and to slow the spread of the Delta variant, including
strengthening safety protocols for federal government employees and
contractors. See https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/29/fact-sheet-president-biden-to-announce-new-actions-to-get-more-americans-vaccinated-and-slow-the-spread-of-the-delta-variant/.
\7\ For instance, the Centers for Disease Control and Prevention
on July 27, 2021, began recommending that fully vaccinated people
wear a mask in public indoor settings in areas of substantial or
high transmission and noted that fully vaccinated people might
choose to wear a mask regardless of the level of transmission,
particularly if they are immunocompromised or at increased risk for
severe disease from COVID-19. See https://www.cdc.gov/coronavirus/2019-ncov/vaccines/fully-vaccinated-guidance.html. Also, several
cities, including Atlanta, Baltimore, Los Angeles, New Haven and San
Francisco, have recently reinstated their mask mandates.
---------------------------------------------------------------------------
On November 5, 2020, the Exchange filed, and subsequently extended
to August 31, 2021, SR-NASDAQ-2020-076, to temporarily amend Exchange
Rules 1015, 9261, 9524 and 9830 to grant OHO and the ERC authority \8\
to conduct hearings in connection with appeals of Membership
Application Program decisions, disciplinary actions, eligibility
proceedings and temporary
[[Page 51396]]
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.\9\
---------------------------------------------------------------------------
\8\ 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.
\9\ 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); 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); supra note 5.
---------------------------------------------------------------------------
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.\10\ Based on
that data and guidance, the Exchange does not believe the COVID-19-
related health concerns necessitating this relief will meaningfully
subside by August 31, 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 August 31, 2021, to December 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.
---------------------------------------------------------------------------
\10\ 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.
---------------------------------------------------------------------------
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,\11\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\12\ 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,\13\ resulting in
less burdensome and more efficient regulatory compliance.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
\13\ See Securities Exchange Act Release No. 92685 (August 17,
2021), 86 FR 47169 (August 23, 2021) (SR-FINRA-2021-019).
---------------------------------------------------------------------------
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 the
current and frequently changing COVID-19 conditions and the uncertainty
around when those conditions will see meaningful, widespread, and
sustained improvement, without this relief allowing OHO and ERC
hearings to continue to proceed by video conference, the Exchange might
be required to postpone some or almost all hearings 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 August 31, 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 \14\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\15\
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 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.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\17\ 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 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
[[Page 51397]]
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 August 31, 2021.\18\ Importantly,
extending the relief provided in SR-NASDAQ-2021-033 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.\19\ The Commission also notes that this proposal extends
without change the temporary relief previously provided by SR-NASDAQ-
2021-033.\20\ As proposed, the changes would be in place through
December 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.\21\ 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.\22\
---------------------------------------------------------------------------
\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6)(iii).
\18\ See supra Item II.
\19\ See FINRA Filing, 86 FR at 47171 (noting the same in
granting FINRA's request to waive the 30-day operative delay so that
SR-FINRA-2021-019 would become operative immediately upon filing).
\20\ See supra note 5.
\21\ 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 December 31, 2021, it may submit
a separate rule filing to extend the effectiveness of the temporary
relief under these rules.
\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-NASDAQ-2021-067 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-2021-067. 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-2021-067 and should
be submitted on or before October 6, 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. 2021-19856 Filed 9-14-21; 8:45 am]
BILLING CODE 8011-01-P
