Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Program Related to FINRA Rule 11892 (Clearly Erroneous Transactions in Exchange-Listed Securities), 58374-58376 [2021-22930]
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58374
Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices
The Commission estimates that
approximately 178 broker-dealers will
spend an average of approximately 87
hours annually to comply with the rule.
Thus, the total time burden is
approximately 15,486 burden-hours per
year.
Rule 15g–5 contains record retention
requirements. Compliance with the rule
is mandatory.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) www.reginfo.gov/public/do/
PRAMain and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o Cynthia Roscoe, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: October 15, 2021
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–22900 Filed 10–20–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93355; File No. SR–FINRA–
2021–026]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Pilot
Program Related to FINRA Rule 11892
(Clearly Erroneous Transactions in
Exchange-Listed Securities)
jspears on DSK121TN23PROD with NOTICES1
October 15, 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 October
5, 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
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
17:35 Oct 20, 2021
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 extend the
current pilot program related to FINRA
Rule 11892 (Clearly Erroneous
Transactions in Exchange-Listed
Securities) (‘‘Clearly Erroneous
Transaction Pilot’’ or ‘‘Pilot’’) until
April 20, 2022.
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
FINRA is proposing a rule change to
extend the current pilot program related
to FINRA Rule 11892 governing clearly
erroneous transactions in exchangelisted securities until the close of
business on April 20, 2022. Extending
the Pilot would provide FINRA and the
national securities exchanges additional
time to consider a permanent proposal
for clearly erroneous transaction
reviews.
On September 10, 2010, the
Commission approved, on a pilot basis,
changes to FINRA Rule 11892 that,
among other things: (i) Provided for
uniform treatment of clearly
erroneous transaction reviews in multistock events involving twenty or more
3 17
Jkt 256001
PO 00000
CFR 240.19b–4(f)(6).
Frm 00128
Fmt 4703
Sfmt 4703
securities; and (ii) reduced the ability of
FINRA to deviate from the objective
standards set forth in the rule.4 In 2013,
FINRA adopted a provision designed to
address the operation of the Plan to
Address Extraordinary Market Volatility
Pursuant to Rule 608 of Regulation NMS
(‘‘Plan’’).5 Finally, in 2014, FINRA
adopted two additional provisions
addressing (i) erroneous transactions
that occur over one or more trading days
that were based on the same
fundamentally incorrect or grossly
misinterpreted information resulting in
a severe valuation error; and (ii) a
disruption or malfunction in the
operation of the facilities of a selfregulatory organization or responsible
single plan processor in connection
with the transmittal or receipt of a
trading halt.6
On April 9, 2019, FINRA filed a
proposed rule change to untie the
effectiveness of the Clearly Erroneous
Transaction Pilot from the effectiveness
of the Plan, and to extend the Pilot’s
effectiveness to the close of business on
October 18, 2019.7 On October 10, 2019,
FINRA filed a proposed rule change to
extend the Pilot’s effectiveness until
April 20, 2020.8 On March 18, 2020,
FINRA filed a proposed rule change to
extend the pilot’s effectiveness until
October 20, 2020.9 On October 16, 2020,
FINRA filed a proposed rule change to
extend the Pilot’s effectiveness until
April 20, 2021.10 On March 15, 2021,
FINRA filed a proposed rule change to
extend the Pilot’s effectiveness until
October 20, 2021.11 FINRA now is
proposing to further extend the Pilot
until April 20, 2022, so that market
4 See Securities Exchange Act Release No. 62885
(September 10, 2010), 75 FR 56641 (September 16,
2010) (Order Approving File No. SR–FINRA–2010–
032).
5 See Securities Exchange Act Release No. 68808
(February 1, 2013), 78 FR 9083 (February 7, 2013)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2013–012).
6 See Securities Exchange Act Release No. 72434
(June 19, 2014), 79 FR 36110 (June 25, 2014) (Order
Approving File No. SR–FINRA–2014–021).
7 See Securities Exchange Act Release No. 85612
(April 11, 2019), 84 FR 16107 (April 17, 2019)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2019–011).
8 See Securities Exchange Act Release No. 87344
(October 18, 2019), 84 FR 57076 (October 24, 2019)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2019–025).
9 See Securities Exchange Act Release No. 88495
(March 27, 2020), 85 FR 18608 (April 2, 2020)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2020–008).
10 See Securities Exchange Act Release No. 90219
(October 19, 2020), 85 FR 67574 (October 23, 2020)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2020–036).
11 See Securities Exchange Act Release No. 91373
(March 19, 2021), 86 FR 16003 (March 25, 2021)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2021–004).
E:\FR\FM\21OCN1.SGM
21OCN1
Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices
participants can continue to benefit
from the more objective clearly
erroneous transaction standards under
the Pilot.12 Extending the Pilot also
would provide more time to permit
FINRA and the other self-regulatory
organizations to consider what changes,
if any, to the clearly erroneous
transaction rules are appropriate.13
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
immediately.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,14 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 promotes just and
equitable principles of trade in that it
promotes transparency and uniformity
across markets concerning the review of
transactions as clearly erroneous.
FINRA believes that extending the Pilot
under FINRA Rule 11892, until April
20, 2022, would help assure consistent
results in handling erroneous trades
across the U.S. equities markets, thus
furthering fair and orderly markets, the
protection of investors and the public
interest. Based on the foregoing, FINRA
believes the Clearly Erroneous
Transaction Pilot should continue to be
in effect while FINRA and the national
securities exchanges consider a
permanent proposal for clearly
erroneous transaction reviews.
jspears on DSK121TN23PROD with NOTICES1
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. The proposal
would ensure the continued,
uninterrupted operation of harmonized
12 If the pilot period is not either extended or
approved as permanent, the version of Rule 11892
prior to SR–FINRA–2010–032 shall be in effect, and
the amendments set forth in SR–FINRA–2014–021
and the provisions of Supplementary Material .03
of the rule shall be null and void.
13 See Securities Exchange Act Release No. 85623
(April 11, 2019), 84 FR 16086 (April 17, 2019)
(Order Approving the Eighteenth Amendment to
the National Market System Plan to Address
Extraordinary Market Volatility).
14 15 U.S.C. 78o–3(b)(6).
VerDate Sep<11>2014
17:35 Oct 20, 2021
Jkt 256001
clearly erroneous transaction rules
across the U.S. equities markets while
FINRA and the national securities
exchanges consider further amendments
to these rules. FINRA understands that
the national securities exchanges also
will file similar proposals to extend
their clearly erroneous execution pilot
programs, as applicable. Thus, the
proposed rule change will help to
ensure consistency across market
centers without implicating any
competitive issues.
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)(iii) of the Act 15 and
subparagraph (f)(6) of Rule 19b–4
thereunder.16
A proposed rule change filed under
Rule 19b–4(f)(6) 17 normally does not
become operative prior to 30 days after
the date of the filing. However, Rule
19b–4(f)(6)(iii) 18 permits the
Commission to designate a shorter time
if such action is consistent with the
protection of investors and the public
interest. FINRA has asked the
Commission to waive the 30-day
operative delay so that the proposed
rule change may become operative
immediately upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest, as it will allow the
current clearly erroneous execution
pilot program to continue
uninterrupted, without any changes,
while FINRA and the national securities
exchanges consider a permanent
15 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of 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. FINRA has
satisfied this requirement.
17 17 CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6)(iii).
16 17
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
58375
proposal for clearly erroneous execution
reviews. For this reason, the
Commission hereby waives the 30-day
operative delay and designates the
proposed rule change as operative upon
filing.19
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 rule-comments@
sec.gov. Please include File Number SR–
FINRA–2021–026 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–2021–026. 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
19 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
E:\FR\FM\21OCN1.SGM
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58376
Federal Register / Vol. 86, No. 201 / Thursday, October 21, 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 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–
2021–026 and should be submitted on
or before November 12, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–22930 Filed 10–20–21; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Request for Comments on Small
Business Administration Draft FY
2022–2026 Strategic Plan Framework
and Enterprise Learning Agenda
AGENCY:
Small Business Administration
(SBA).
ACTION:
Notice and request for comment.
The Small Business
Administration (SBA) is requesting
comments on its draft Strategic Plan
Framework and Enterprise Learning
Agenda (ELA) for fiscal years 2022–
2026. The draft plan framework and
ELA are available on SBA’s website at
https://www.sba.gov/sp.
DATES: Comments must be received on
or before Friday, November 19, 2021.
ADDRESSES: You may submit comments
by the following methods (Please send
comments by one method only):
Email: Address to FY2226StrategicPlan Feedback@SBA.gov.
Include ‘‘Comments on SBA FY 2022–
2026 Strategic Plan’’ in the email subject
line.
Mail: Due to the ongoing COVID–19
pandemic, mailed comments cannot be
accepted at this time.
Hand/Delivery/Courier: Same as Mail
above.
FOR FURTHER INFORMATION CONTACT:
Kathleen Graber, Lead Performance
Analyst, Small Business Administration
by email: FY2226StrategicPlanFeedback@SBA.gov.
jspears on DSK121TN23PROD with NOTICES1
SUMMARY:
20 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:35 Oct 20, 2021
Jkt 256001
The draft
Small Business Administration FY
2022–2026 Strategic Plan Framework
and ELA are provided for public input
as part of the strategic planning process
under the Government Performance and
Results Modernization Act of 2010
(GPRA–MA) (Pub. L. 111–352) and
Foundations for Evidence-Based
Policymaking Act of 2018 (the
‘‘Evidence Act’’) (Pub. L. 115–435) to
ensure that the public and stakeholders
are provided an opportunity to
comment. This Strategic Plan provides a
framework that will support greater
equity, customer service and technology
modernization of SBA’s programs while
leveraging partnerships across the
government and private sector to
maximize the tools small business
owners and entrepreneurs need to
strengthen our economy, drive
American innovation, and increase
global competitiveness. The ELA sets a
learning agenda to identify top priority
evidence-building activities, such as
program evaluation, research, and
policy analysis.
The SBA proposes three strategic
goals for the next five years: (1) Ensure
Equitable and Customer-Centric Design
and Delivery of Programs to Support
Small Businesses and Innovative Startups; (2) Build Resilient Businesses and
a Sustainable Economy; and (3)
Implement Strong Stewardship of
Resources for Greater Impact.
The draft SBA FY 2022–2026 Strategic
Plan Framework and ELA are available
through the SBA’s website at https://
www.sba.gov/sp.
SUPPLEMENTARY INFORMATION:
Dated: October 21, 2021.
Jason Bossie,
Acting Associate Administrator for
Performance, Planning, and the Chief
Financial Officer.
[FR Doc. 2021–23001 Filed 10–20–21; 8:45 am]
of Interest of the Small Business
Administration (‘‘SBA’’) Rules and
Regulations (13 CFR 107.730). Ballast
Point Ventures IV, L.P., is seeking a
written exemption from SBA for a
proposed financing to Symphonic
Distribution Inc., 707 N Franklin Street,
Suite 400, Tampa, FL 33602.
The financing is brought within the
purview of § 107.730(a)(4) of the
Regulations because Ballast Point
Ventures IV, L.P. will provide financing
where its Associate owns more than
10% equity ownership in the company,
Symphonic Distribution Inc., and will
have a portion of its obligation
discharged, therefore this transaction is
considered Provide financing to an
Associate of another Licensee to
discharge an obligation of an Associate
requiring SBA’s prior written
exemption. Ballast Point Ventures IV,
L.P. has not made its investment in
Symphonic Distribution Inc., and is
seeking pre-financing SBA approval.
Notice is hereby given that any
interested person may submit written
comments on this transaction within
fifteen days of the date of this
publication to the Associate
Administrator, Office of Investment and
Innovation, U.S. Small Business
Administration, 409 Third Street SW,
Washington, DC 20416.
Small Business Administration.
Bailey DeVries,
Associate Administrator, Office of Investment
and Innovation.
[FR Doc. 2021–22960 Filed 10–20–21; 8:45 am]
BILLING CODE P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #17217 and #17218;
PENNSYLVANIA Disaster Number PA–
00116]
SMALL BUSINESS ADMINISTRATION
Presidential Declaration Amendment of
a Major Disaster for Public Assistance
Only for the Commonwealth of
Pennsylvania
[License No. 04/04–0352]
AGENCY:
Ballast Point Ventures IV, L.P.; Notice
Seeking Exemption Under Section 312
of the Small Business Investment Act,
Conflicts of Interest
SUMMARY:
BILLING CODE 8026–03–P
Notice is hereby given that Ballast
Point Ventures IV, L.P. 401 East Jackson
Street, Suite 2300, Tampa, FL 33602, a
Federal Licensee under the Small
Business Investment Act of 1958, as
amended (‘‘the Act’’), in connection
with the financing of a small concern,
has sought an exemption under Section
312 of the Act and Section 107.730,
Financings which Constitute Conflicts
PO 00000
Frm 00130
Fmt 4703
Sfmt 4703
U.S. Small Business
Administration.
ACTION: Amendment 1.
This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the Commonwealth of Pennsylvania
(FEMA–4618–DR), dated 10/08/2021.
Incident: Remnants of Hurricane Ida.
Incident Period: 08/31/2021 through
09/05/2021.
DATES: Issued on 10/14/2021.
Physical Loan Application Deadline
Date: 12/07/2021.
Economic Injury (EIDL) Loan
Application Deadline Date: 07/08/2022.
E:\FR\FM\21OCN1.SGM
21OCN1
]]>Agencies
[Federal Register Volume 86, Number 201 (Thursday, October 21, 2021)]
[Notices]
[Pages 58374-58376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22930]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93355; File No. SR-FINRA-2021-026]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Extend the Pilot Program Related to FINRA Rule
11892 (Clearly Erroneous Transactions in Exchange-Listed Securities)
October 15, 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 October 5, 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 extend the current pilot program related to
FINRA Rule 11892 (Clearly Erroneous Transactions in Exchange-Listed
Securities) (``Clearly Erroneous Transaction Pilot'' or ``Pilot'')
until April 20, 2022.
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
FINRA is proposing a rule change to extend the current pilot
program related to FINRA Rule 11892 governing clearly erroneous
transactions in exchange-listed securities until the close of business
on April 20, 2022. Extending the Pilot would provide FINRA and the
national securities exchanges additional time to consider a permanent
proposal for clearly erroneous transaction reviews.
On September 10, 2010, the Commission approved, on a pilot basis,
changes to FINRA Rule 11892 that, among other things: (i) Provided for
uniform treatment of clearly erroneous transaction reviews in multi-
stock events involving twenty or more securities; and (ii) reduced the
ability of FINRA to deviate from the objective standards set forth in
the rule.\4\ In 2013, FINRA adopted a provision designed to address the
operation of the Plan to Address Extraordinary Market Volatility
Pursuant to Rule 608 of Regulation NMS (``Plan'').\5\ Finally, in 2014,
FINRA adopted two additional provisions addressing (i) erroneous
transactions that occur over one or more trading days that were based
on the same fundamentally incorrect or grossly misinterpreted
information resulting in a severe valuation error; and (ii) a
disruption or malfunction in the operation of the facilities of a self-
regulatory organization or responsible single plan processor in
connection with the transmittal or receipt of a trading halt.\6\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 62885 (September 10,
2010), 75 FR 56641 (September 16, 2010) (Order Approving File No.
SR-FINRA-2010-032).
\5\ See Securities Exchange Act Release No. 68808 (February 1,
2013), 78 FR 9083 (February 7, 2013) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2013-012).
\6\ See Securities Exchange Act Release No. 72434 (June 19,
2014), 79 FR 36110 (June 25, 2014) (Order Approving File No. SR-
FINRA-2014-021).
---------------------------------------------------------------------------
On April 9, 2019, FINRA filed a proposed rule change to untie the
effectiveness of the Clearly Erroneous Transaction Pilot from the
effectiveness of the Plan, and to extend the Pilot's effectiveness to
the close of business on October 18, 2019.\7\ On October 10, 2019,
FINRA filed a proposed rule change to extend the Pilot's effectiveness
until April 20, 2020.\8\ On March 18, 2020, FINRA filed a proposed rule
change to extend the pilot's effectiveness until October 20, 2020.\9\
On October 16, 2020, FINRA filed a proposed rule change to extend the
Pilot's effectiveness until April 20, 2021.\10\ On March 15, 2021,
FINRA filed a proposed rule change to extend the Pilot's effectiveness
until October 20, 2021.\11\ FINRA now is proposing to further extend
the Pilot until April 20, 2022, so that market
[[Page 58375]]
participants can continue to benefit from the more objective clearly
erroneous transaction standards under the Pilot.\12\ Extending the
Pilot also would provide more time to permit FINRA and the other self-
regulatory organizations to consider what changes, if any, to the
clearly erroneous transaction rules are appropriate.\13\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 85612 (April 11,
2019), 84 FR 16107 (April 17, 2019) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2019-011).
\8\ See Securities Exchange Act Release No. 87344 (October 18,
2019), 84 FR 57076 (October 24, 2019) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2019-025).
\9\ See Securities Exchange Act Release No. 88495 (March 27,
2020), 85 FR 18608 (April 2, 2020) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2020-008).
\10\ See Securities Exchange Act Release No. 90219 (October 19,
2020), 85 FR 67574 (October 23, 2020) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2020-036).
\11\ See Securities Exchange Act Release No. 91373 (March 19,
2021), 86 FR 16003 (March 25, 2021) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2021-004).
\12\ If the pilot period is not either extended or approved as
permanent, the version of Rule 11892 prior to SR-FINRA-2010-032
shall be in effect, and the amendments set forth in SR-FINRA-2014-
021 and the provisions of Supplementary Material .03 of the rule
shall be null and void.
\13\ See Securities Exchange Act Release No. 85623 (April 11,
2019), 84 FR 16086 (April 17, 2019) (Order Approving the Eighteenth
Amendment to the National Market System Plan to Address
Extraordinary Market Volatility).
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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
immediately.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\14\ 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 promotes
just and equitable principles of trade in that it promotes transparency
and uniformity across markets concerning the review of transactions as
clearly erroneous. FINRA believes that extending the Pilot under FINRA
Rule 11892, until April 20, 2022, would help assure consistent results
in handling erroneous trades across the U.S. equities markets, thus
furthering fair and orderly markets, the protection of investors and
the public interest. Based on the foregoing, FINRA believes the Clearly
Erroneous Transaction Pilot should continue to be in effect while FINRA
and the national securities exchanges consider a permanent proposal for
clearly erroneous transaction reviews.
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\14\ 15 U.S.C. 78o-3(b)(6).
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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. The proposal would ensure the
continued, uninterrupted operation of harmonized clearly erroneous
transaction rules across the U.S. equities markets while FINRA and the
national securities exchanges consider further amendments to these
rules. FINRA understands that the national securities exchanges also
will file similar proposals to extend their clearly erroneous execution
pilot programs, as applicable. Thus, the proposed rule change will help
to ensure consistency across market centers without implicating any
competitive issues.
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)(iii) of the Act \15\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\16\
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\15\ 15 U.S.C. 78s(b)(3)(A)(iii).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of 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.
FINRA has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \18\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. FINRA has asked the
Commission to waive the 30-day operative delay so that the proposed
rule change may become operative immediately upon filing. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest, as
it will allow the current clearly erroneous execution pilot program to
continue uninterrupted, without any changes, while FINRA and the
national securities exchanges consider a permanent proposal for clearly
erroneous execution reviews. For this reason, the Commission hereby
waives the 30-day operative delay and designates the proposed rule
change as operative upon filing.\19\
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\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6)(iii).
\19\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-FINRA-2021-026 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-2021-026. 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
[[Page 58376]]
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 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-2021-026 and should be
submitted on or before November 12, 2021.
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\20\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-22930 Filed 10-20-21; 8:45 am]
BILLING CODE 8011-01-P
