Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Juneteenth National Independence Day as an Exchange Holiday and Give the Exchange the Authority To Halt or Suspend Trading or Close Exchange Facilities for Certain Unanticipated Closures, 68711-68714 [2021-26240]

Download as PDF Federal Register / Vol. 86, No. 230 / Friday, December 3, 2021 / Notices B. institute proceedings to determine whether the proposed rule change should be 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: jspears on DSK121TN23PROD with NOTICES1 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– CBOE–2021–068 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–CBOE–2021–068. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CBOE–2021–068 and should be submitted on or before December 27, 2021. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.51 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–26244 Filed 12–2–21; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–93674; File No. SR–Phlx– 2021–69] Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Juneteenth National Independence Day as an Exchange Holiday and Give the Exchange the Authority To Halt or Suspend Trading or Close Exchange Facilities for Certain Unanticipated Closures November 29, 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 November 17, 2021, Nasdaq PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to adopt a new Rule 1030, within General 3, titled ‘‘Member Access to the Exchange,’’ to make Juneteenth National Independence Day a holiday of the Exchange memorialize all current Exchange holidays within General 3, Rule 1030, and to add a provision to permit the Exchange the authority to halt or suspend trading or close Exchange facilities for certain unanticipated closures. The text of the proposed rule change is available on the Exchange’s website at https://listingcenter.nasdaq.com/ rulebook/phlx/rules, at the principal office of the Exchange, and at the Commission’s Public Reference Room. 1 15 51 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 18:06 Dec 02, 2021 2 17 Jkt 256001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00087 Fmt 4703 Sfmt 4703 68711 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 adopt a new Rule 1030, within General 3, titled ‘‘Member Access to the Exchange,’’ to make Juneteenth National Independence Day a holiday. The Exchange also proposes to memorialize all current holidays within General 3, Rule 1030, as well as add a provision to permit the Exchange authority to halt or suspend trading or close Exchange facilities for certain unanticipated closures. Today, the Exchange observes the following holidays: New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.3 Equity 2, Section 8 (Normal Business Hours) provides, ‘‘The System operates from 8:00 a.m. to 5:00 p.m. Eastern. Time on each business day, unless modified by the Exchange.’’ 4 At this time, the Exchange also proposes to observe Juneteenth National Independence Day, which was designated a legal public holiday on June 17, 2021.5 Consistent with broad industry sentiment 6 and the approach recommended by the Securities Industry and Financial Markets Association (‘‘SIFMA’’),7 the Exchange proposes to 3 See https://www.nasdaq.com/market-activity/ stock-market-holiday-calendar. 4 Additionally, Phlx Options 3, Section 1 (Hours of Business) provides, ‘‘The Board of Directors shall determine by resolution the hours during which business may be transacted on the Exchange.’’ 5 Public Law 117–17. 6 See, e.g. https://www.wsj.com/articles/wallstreet-moves-to-close-markets-for-juneteenth-in2022-11626376243#:∼:text=Stock%20and%20bond %20markets%20are,on%20a%20Sunday%20 next%20year. 7 SIFMA recommends a full market close in observance of Juneteenth National Independence Day. See https://www.sifma.org/resources/general/ holiday-schedule/#US. E:\FR\FM\03DEN1.SGM 03DEN1 68712 Federal Register / Vol. 86, No. 230 / Friday, December 3, 2021 / Notices add ‘‘Juneteenth National Independence Day’’ to the proposed list of holidays within General 3, Rule 1030(a). As a result, the Exchange will not be open for business on Juneteenth National Independence Day, which falls on June 19 of each year, in addition to the other annual holidays noted within proposed General 3, Rule 1030(a). As is the case today for those annual holidays currently observed, when a holiday observed by the Exchange falls on a Saturday, the Exchange will not be open for business on the preceding Friday and when any holiday observed by the Exchange falls on a Sunday, the Exchange will not be open for business on the succeeding Monday, unless unusual business conditions exist at the time.8 Proposed General 3, Rule 1030(a) would provide, jspears on DSK121TN23PROD with NOTICES1 The Exchange will be open for the transaction of business on business days. The Exchange will not be open for business on New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. When a holiday observed by the Exchange falls on a Saturday, the Exchange will not be open for business on the preceding Friday and when any holiday observed by the Exchange falls on a Sunday, the Exchange will not be open for business on the succeeding Monday, unless unusual business conditions exist at the time. When determining whether unusual business conditions exist in connection with the observance of a holiday on the preceding Friday or following Monday, or not observing the holiday, the Exchange would coordinate with the securities industry. Proposed General 3, Rule 1030(a) is similar to Cboe BYX Exchange, Inc. (‘‘CBOE BYX’’) Rule 11.1(b) and Cboe Exchange, Inc. (‘‘Cboe’’) Rules 5.1(d) and 5.23(d). The Exchange believes memorializing these annual holidays within its rules will bring additional clarity to those observed holidays. Next, the Exchange proposes to add rule text within proposed General 3, Rule 1030(b), similar to CBOE BYX Rule 11.1(c), which states, ‘‘The Chief Executive Officer of the Exchange shall have the power to halt, suspend trading in any and all securities traded on the Exchange, to close some or all Exchange facilities, and to determine the duration of any such halt, suspension, or closing, when he or she deems such action necessary for the maintenance of fair and orderly markets, the protection of investors, or otherwise in the public 8 For example, New Year’s Day 2022 would not be observed because January 1, 2022 falls on a Saturday and typically the last day of the preceding year remains a full business day. VerDate Sep<11>2014 18:06 Dec 02, 2021 Jkt 256001 interest including special circumstances such as (1) actual or threatened physical danger, severe climatic conditions, civil unrest, terrorism, acts of war, or loss or interruption of facilities utilized by the Exchange, (2) a request by a governmental agency or official, or (3) a period of mourning or recognition for a person or event. No such action shall continue longer than a period of two days, or as soon thereafter as a quorum of the Board of Directors can be assembled, unless the Board approves the continuation of such suspension.’’ While the Exchange would continue to submit a proposed rule change to the Commission to amend the annual holidays within General 3, Rule 1030(a), the Exchange proposes to give the Exchange the authority to halt or suspend trading or close Exchange facilities for certain unanticipated closures. Unanticipated closures are typically the result of natural disasters, ad hoc National Holidays, disruptions of infrastructure, and other unpredictable events that would cause the Exchange to close for business. The Exchange would not utilize this authority routinely, rather the authority is reserved for extraordinary circumstances where there would not be sufficient time for the Exchange to file to amend its rules. The Exchange notes that it would coordinate with the industry in determining closures for these events.9 The Exchange believes that it is necessary to have such authority in the aforementioned cases as there may not be sufficient time to file a proposed rule change. Additionally, these unanticipated closures would not be recognized on an annual basis, rather these types of closures would be ad hoc closures. The Exchange would provide notice to members and member organizations of these unanticipated closures in addition to continuing to post its annual holiday schedule on its website. Finally, the Exchange proposes to add rule text at the end of General 3, Section 1030(b) which states, ‘‘The powers granted to the Chief Executive Officer within paragraph (b) do not apply to paragraph (a) or any other rule within the Exchange’s Rulebook.’’ The power of the Chief Executive Officer to halt, suspend or close facilities of the Exchange within paragraph (b) applies 9 The Options Clearing Corporation (‘‘OCC’’) has issued a guide for such events. See OCC’s Market Closing Guide (https://www.theocc.com/getmedia/ 8d6a36c6-1aa4-4984-9333-d7b0a6a09be7/ unscheduled-market-closings-guide.pdf). See also DTCC Reference Guide: Unscheduled Closing of Exchanges and Markets for Clearing Agencies (https://www.dtcc.com/∼/media/Files/Downloads/ %20issues/Unscheduled_Close.pdf). PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 only to the circumstances noted within that paragraph. The powers of the Chief Executive Officer do not extend to paragraph (a) of General 3, Section 1030 or to any other provision in the Rulebook, including but not limited to Options 3, Section 1 or Equity 2, Section 8. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,10 in general, and furthers the objectives of Section 6(b)(5) of the Act,11 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 memorializing its current holidays within General 3, Rule 1030(a) and also providing the manner in which the Exchange would handle holidays that fell on a Saturday or Sunday, unless unusual business conditions exist. Today, the Exchange coordinates with the securities industry with respect to annual holidays. Further, the Exchange’s proposal to observe the Juneteenth National Independence Day as an annual holiday is consistent with the Act. Similar to other holidays listed within proposed General 3, Rule 1030(a), the rule text addresses what day would be taken off if June 19 fell on a Saturday or Sunday. The proposed rule also accounts for unusual business conditions that may alter the observance of an annual holiday or affect the day the holiday is observed. The Exchange notes that when determining whether to utilize the unusual business conditions provision, the Exchange would continue to coordinate with the securities industry. The proposed rule promotes clarity and transparency by providing the list of current annual holidays, as well as the proposed new Juneteenth National Independence Day holiday, within its Rules. The proposed changes do not raise any new or novel issues. For these reasons, the Exchange believes that these aspects of the proposal are consistent with the Act. Further, the Exchange’s proposal to permit the Chief Executive Officer to halt, suspend trading in any and all securities traded on the Exchange, to close some or all Exchange facilities, and to determine the duration of any such halt, suspension, or closing, when he or she deems such action necessary for the maintenance of fair and orderly 10 15 11 15 E:\FR\FM\03DEN1.SGM U.S.C. 78f(b) U.S.C. 78f(b)(5). 03DEN1 Federal Register / Vol. 86, No. 230 / Friday, December 3, 2021 / Notices markets, the protection of investors, or otherwise in the public interest including certain specified special circumstances is consistent with the Act as the provision would permit the Exchange to act in coordination with other exchanges within the securities industry to close, as necessary, for natural disasters, ad hoc National Holidays, disruptions of infrastructure, and other unpredictable events. The Exchange would not utilize this authority routinely, rather the authority is reserved for extraordinary circumstances 12 where there would not be sufficient time for the Exchange to file to amend its rules. With this proposal, the Exchange’s process of filing a proposed rule change for any new annual holidays it determines to add to the list of holidays within General 3, Rule 1030(a) would remain unchanged. The proposed authority would permit the Exchange to close the market on an ad hoc basis for an extraordinary event without the need to file a proposed rule change; these unanticipated closures would not be recognized on an annual basis. Today, the Exchange would utilize emergency authority to close its market as a result of an extraordinary circumstance.13 This amendment removes impediments to and perfects the mechanism of a free and open market and a national market system by allowing the Exchange to halt or suspend trading or close Exchange facilities for unanticipated circumstances by providing notice to members and member organizations in addition to continuing to post its annual holiday schedule on its website. The Exchange’s proposal to add rule text at the end of General 3, Section 1030(b) to make clear the power of the Chief Executive Officer to halt, suspend or close facilities of the Exchange within paragraph (b) applies only to the circumstances noted within that paragraph is consistent with the Act as that rule text will clarify the scope of the Chief Executive Officer’s powers. Making clear the powers of the Chief Executive Officer adds greater transparency to the proposed rule. jspears on DSK121TN23PROD with NOTICES1 B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not 12 The special circumstances noted in proposed Rule 1030(b) include, (1) actual or threatened physical danger, severe climatic conditions, civil unrest, terrorism, acts of war, or loss or interruption of facilities utilized by the Exchange, (2) a request by a governmental agency or official, or (3) a period of mourning or recognition for a person or event. 13 See Phlx By-Law 7.5. VerDate Sep<11>2014 18:06 Dec 02, 2021 Jkt 256001 necessary or appropriate in furtherance of the purposes of the Act. Memorializing its current holidays within General 3, Rule 1030(a) and describing the way holidays are observed today that fall on a Saturday or Sunday, unless unusual business conditions exist, does not impose an undue burden on competition, rather the proposal brings clarity to the Exchange’s Rules. Moreover, adding Juneteenth National Independence Day to its list of annual holidays within General 3, Rule 1030(a) will not impose any burden on competition as the holiday aligns with broad industry sentiment 14 and the approach recommended by SIFMA. The Exchange would continue to coordinate with the securities industry regarding the observation of annual holidays. Further, the Exchange’s proposed changes to General 3, Rule 1030(b) to permit the Chief Executive Officer to halt, suspend trading in any and all securities traded on the Exchange, to close some or all Exchange facilities, and to determine the duration of any such halt, suspension, or closing, when he or she deems such action necessary for the maintenance of fair and orderly markets, the protection of investors, or otherwise in the public interest including certain specified special circumstances does not impose an undue burden on competition. The proposed authority would permit the Exchange to close on an ad hoc basis for an extraordinary event without the need to file a rule change by providing notice to members and member organizations of these unanticipated closures. This would allow the Exchange to continue to coordinate with the securities industry for unanticipated closures. These proposed changes are not designed to address any competitive issues and are consistent with existing rules of other exchanges.15 The Exchange’s proposal to add rule text at the end of General 3, Section 1030(b) to make clear the power of the Chief Executive Officer to halt, suspend or close facilities of the Exchange within paragraph (b) applies only to the circumstances noted within that paragraph does not impose an undue burden on competition, rather, the rule text will make clear the powers of the Chief Executive Officer thereby adding greater transparency to the proposed rule. 14 See note 6 above. Cboe BYX Rule 11.1(b) and (c) and Cboe Rules 5.1(d) and 5.23(d). 15 See PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 68713 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 16 and subparagraph (f)(6) of Rule 19b–4 thereunder.17 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– Phlx–2021–69 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–Phlx–2021–69. This file 16 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. 17 17 E:\FR\FM\03DEN1.SGM 03DEN1 68714 Federal Register / Vol. 86, No. 230 / Friday, December 3, 2021 / Notices number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–Phlx–2021–69 and should be submitted on or before December 27, 2021. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–26240 Filed 12–2–21; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request jspears on DSK121TN23PROD with NOTICES1 Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 Extension: Rules 17h–1T and 17h–2T; SEC File No. 270–359, OMB Control No. 3235–0410 Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission 18 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 18:06 Dec 02, 2021 Jkt 256001 (‘‘Commission’’) is soliciting comments on the existing collection of information provided for in Rules 17h–1T and 17h– 2T (17 CFR 240.17h–1T and 17 CFR 240.17h–2T), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). The Commission plans to submit this existing collection of information to the Office of Management and Budget (‘‘OMB’’) for extension and approval. Rule 17h–1T requires a covered broker-dealer to maintain and preserve records and other information concerning certain entities that are associated with the broker-dealer. This requirement extends to the financial and securities activities of the holding company, affiliates and subsidiaries of the broker-dealer that are reasonably likely to have a material impact on the financial or operational condition of the broker-dealer. Rule 17h–2T requires a covered broker-dealer to file with the Commission quarterly reports and a cumulative year-end report concerning the information required to be maintained and preserved under Rule 17h–1T. The collection of information required by Rules 17h–1T and 17h–2T, collectively referred to as the ‘‘risk assessment rules’’, is necessary to enable the Commission to monitor the activities of a broker-dealer affiliate whose business activities are reasonably likely to have a material impact on the financial and operational condition of the broker-dealer. Without this information, the Commission would be unable to assess the potentially damaging impact of the affiliate’s activities on the broker-dealer. There are currently 235 respondents that must comply with Rules 17h–1T and 17h–2T. Each of these 235 respondents are estimated to require 10 hours per year to maintain the records required under Rule 17h–1T, for an aggregate estimated annual burden of 2,350 hours (235 respondents × 10 hours). In addition, each of these 235 respondents must make five annual responses under Rule 17h–2T. These five responses are estimated to require 14 hours per respondent per year for an aggregate estimated annual burden of 3,290 hours (235 respondents × 14 hours). In addition, new respondents must draft an organizational chart required under Rule 17h–1T and establish a system for complying with the risk assessment rules. The staff estimates that drafting the required organizational chart requires one hour and establishing a system for complying with the risk assessment rules requires three hours. Based on the reduction in the number of filers in recent years, the staff PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 estimates there will be zero new respondents, and thus, a corresponding estimated burden of zero hours for new respondents. Thus, the total compliance burden per year is approximately 5,640 burden hours (2,350 hours + 3,290 hours). Written comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information will have practical utility; (b) the accuracy of the Commission’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. 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. Please direct your written comments to: David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: PRA_ Mailbox@sec.gov. Dated: November 29, 2021. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–26246 Filed 12–2–21; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–93675; File No. SR– NASDAQ–2021–093] Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Include Juneteenth National Independence Day as a Holiday November 29, 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 November 17, 2021, The Nasdaq Stock Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission 1 15 2 17 E:\FR\FM\03DEN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 03DEN1

Agencies

[Federal Register Volume 86, Number 230 (Friday, December 3, 2021)]
[Notices]
[Pages 68711-68714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26240]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93674; File No. SR-Phlx-2021-69]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Establish 
Juneteenth National Independence Day as an Exchange Holiday and Give 
the Exchange the Authority To Halt or Suspend Trading or Close Exchange 
Facilities for Certain Unanticipated Closures

November 29, 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 November 17, 2021, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by the Exchange. 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.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt a new Rule 1030, within General 3, 
titled ``Member Access to the Exchange,'' to make Juneteenth National 
Independence Day a holiday of the Exchange memorialize all current 
Exchange holidays within General 3, Rule 1030, and to add a provision 
to permit the Exchange the authority to halt or suspend trading or 
close Exchange facilities for certain unanticipated closures.
    The text of the proposed rule change is available on the Exchange's 
website at https://listingcenter.nasdaq.com/rulebook/phlx/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 adopt a new Rule 1030, within General 3, 
titled ``Member Access to the Exchange,'' to make Juneteenth National 
Independence Day a holiday. The Exchange also proposes to memorialize 
all current holidays within General 3, Rule 1030, as well as add a 
provision to permit the Exchange authority to halt or suspend trading 
or close Exchange facilities for certain unanticipated closures.
    Today, the Exchange observes the following holidays: New Year's 
Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday, 
Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and 
Christmas Day.\3\ Equity 2, Section 8 (Normal Business Hours) provides, 
``The System operates from 8:00 a.m. to 5:00 p.m. Eastern. Time on each 
business day, unless modified by the Exchange.'' \4\
---------------------------------------------------------------------------

    \3\ See https://www.nasdaq.com/market-activity/stock-market-holiday-calendar.
    \4\ Additionally, Phlx Options 3, Section 1 (Hours of Business) 
provides, ``The Board of Directors shall determine by resolution the 
hours during which business may be transacted on the Exchange.''
---------------------------------------------------------------------------

    At this time, the Exchange also proposes to observe Juneteenth 
National Independence Day, which was designated a legal public holiday 
on June 17, 2021.\5\ Consistent with broad industry sentiment \6\ and 
the approach recommended by the Securities Industry and Financial 
Markets Association (``SIFMA''),\7\ the Exchange proposes to

[[Page 68712]]

add ``Juneteenth National Independence Day'' to the proposed list of 
holidays within General 3, Rule 1030(a). As a result, the Exchange will 
not be open for business on Juneteenth National Independence Day, which 
falls on June 19 of each year, in addition to the other annual holidays 
noted within proposed General 3, Rule 1030(a).
---------------------------------------------------------------------------

    \5\ Public Law 117-17.
    \6\ See, e.g. https://www.wsj.com/articles/wall-street-moves-to-
close-markets-for-juneteenth-in-2022-
11626376243#:~:text=Stock%20and%20bond%20markets%20are,on%20a%20Sunda
y%20next%20year.
    \7\ SIFMA recommends a full market close in observance of 
Juneteenth National Independence Day. See https://www.sifma.org/resources/general/holiday-schedule/#US.
---------------------------------------------------------------------------

    As is the case today for those annual holidays currently observed, 
when a holiday observed by the Exchange falls on a Saturday, the 
Exchange will not be open for business on the preceding Friday and when 
any holiday observed by the Exchange falls on a Sunday, the Exchange 
will not be open for business on the succeeding Monday, unless unusual 
business conditions exist at the time.\8\ Proposed General 3, Rule 
1030(a) would provide,
---------------------------------------------------------------------------

    \8\ For example, New Year's Day 2022 would not be observed 
because January 1, 2022 falls on a Saturday and typically the last 
day of the preceding year remains a full business day.
---------------------------------------------------------------------------

    The Exchange will be open for the transaction of business on 
business days. The Exchange will not be open for business on New 
Year's Day, Martin Luther King Jr. Day, Presidents' Day, Good 
Friday, Memorial Day, Juneteenth National Independence Day, 
Independence Day, Labor Day, Thanksgiving Day and Christmas Day. 
When a holiday observed by the Exchange falls on a Saturday, the 
Exchange will not be open for business on the preceding Friday and 
when any holiday observed by the Exchange falls on a Sunday, the 
Exchange will not be open for business on the succeeding Monday, 
unless unusual business conditions exist at the time.

When determining whether unusual business conditions exist in 
connection with the observance of a holiday on the preceding Friday or 
following Monday, or not observing the holiday, the Exchange would 
coordinate with the securities industry. Proposed General 3, Rule 
1030(a) is similar to Cboe BYX Exchange, Inc. (``CBOE BYX'') Rule 
11.1(b) and Cboe Exchange, Inc. (``Cboe'') Rules 5.1(d) and 5.23(d). 
The Exchange believes memorializing these annual holidays within its 
rules will bring additional clarity to those observed holidays.
    Next, the Exchange proposes to add rule text within proposed 
General 3, Rule 1030(b), similar to CBOE BYX Rule 11.1(c), which 
states, ``The Chief Executive Officer of the Exchange shall have the 
power to halt, suspend trading in any and all securities traded on the 
Exchange, to close some or all Exchange facilities, and to determine 
the duration of any such halt, suspension, or closing, when he or she 
deems such action necessary for the maintenance of fair and orderly 
markets, the protection of investors, or otherwise in the public 
interest including special circumstances such as (1) actual or 
threatened physical danger, severe climatic conditions, civil unrest, 
terrorism, acts of war, or loss or interruption of facilities utilized 
by the Exchange, (2) a request by a governmental agency or official, or 
(3) a period of mourning or recognition for a person or event. No such 
action shall continue longer than a period of two days, or as soon 
thereafter as a quorum of the Board of Directors can be assembled, 
unless the Board approves the continuation of such suspension.'' While 
the Exchange would continue to submit a proposed rule change to the 
Commission to amend the annual holidays within General 3, Rule 1030(a), 
the Exchange proposes to give the Exchange the authority to halt or 
suspend trading or close Exchange facilities for certain unanticipated 
closures. Unanticipated closures are typically the result of natural 
disasters, ad hoc National Holidays, disruptions of infrastructure, and 
other unpredictable events that would cause the Exchange to close for 
business. The Exchange would not utilize this authority routinely, 
rather the authority is reserved for extraordinary circumstances where 
there would not be sufficient time for the Exchange to file to amend 
its rules. The Exchange notes that it would coordinate with the 
industry in determining closures for these events.\9\ The Exchange 
believes that it is necessary to have such authority in the 
aforementioned cases as there may not be sufficient time to file a 
proposed rule change. Additionally, these unanticipated closures would 
not be recognized on an annual basis, rather these types of closures 
would be ad hoc closures. The Exchange would provide notice to members 
and member organizations of these unanticipated closures in addition to 
continuing to post its annual holiday schedule on its website.
---------------------------------------------------------------------------

    \9\ The Options Clearing Corporation (``OCC'') has issued a 
guide for such events. See OCC's Market Closing Guide (https://www.theocc.com/getmedia/8d6a36c6-1aa4-4984-9333-d7b0a6a09be7/unscheduled-market-closings-guide.pdf). See also DTCC Reference 
Guide: Unscheduled Closing of Exchanges and Markets for Clearing 
Agencies (https://www.dtcc.com/~/media/Files/Downloads/%20issues/
Unscheduled_Close.pdf).
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    Finally, the Exchange proposes to add rule text at the end of 
General 3, Section 1030(b) which states, ``The powers granted to the 
Chief Executive Officer within paragraph (b) do not apply to paragraph 
(a) or any other rule within the Exchange's Rulebook.'' The power of 
the Chief Executive Officer to halt, suspend or close facilities of the 
Exchange within paragraph (b) applies only to the circumstances noted 
within that paragraph. The powers of the Chief Executive Officer do not 
extend to paragraph (a) of General 3, Section 1030 or to any other 
provision in the Rulebook, including but not limited to Options 3, 
Section 1 or Equity 2, Section 8.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\10\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\11\ 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 memorializing its current holidays within General 3, Rule 
1030(a) and also providing the manner in which the Exchange would 
handle holidays that fell on a Saturday or Sunday, unless unusual 
business conditions exist. Today, the Exchange coordinates with the 
securities industry with respect to annual holidays.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b)
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Further, the Exchange's proposal to observe the Juneteenth National 
Independence Day as an annual holiday is consistent with the Act. 
Similar to other holidays listed within proposed General 3, Rule 
1030(a), the rule text addresses what day would be taken off if June 19 
fell on a Saturday or Sunday. The proposed rule also accounts for 
unusual business conditions that may alter the observance of an annual 
holiday or affect the day the holiday is observed. The Exchange notes 
that when determining whether to utilize the unusual business 
conditions provision, the Exchange would continue to coordinate with 
the securities industry.
    The proposed rule promotes clarity and transparency by providing 
the list of current annual holidays, as well as the proposed new 
Juneteenth National Independence Day holiday, within its Rules. The 
proposed changes do not raise any new or novel issues. For these 
reasons, the Exchange believes that these aspects of the proposal are 
consistent with the Act.
    Further, the Exchange's proposal to permit the Chief Executive 
Officer to halt, suspend trading in any and all securities traded on 
the Exchange, to close some or all Exchange facilities, and to 
determine the duration of any such halt, suspension, or closing, when 
he or she deems such action necessary for the maintenance of fair and 
orderly

[[Page 68713]]

markets, the protection of investors, or otherwise in the public 
interest including certain specified special circumstances is 
consistent with the Act as the provision would permit the Exchange to 
act in coordination with other exchanges within the securities industry 
to close, as necessary, for natural disasters, ad hoc National 
Holidays, disruptions of infrastructure, and other unpredictable 
events. The Exchange would not utilize this authority routinely, rather 
the authority is reserved for extraordinary circumstances \12\ where 
there would not be sufficient time for the Exchange to file to amend 
its rules. With this proposal, the Exchange's process of filing a 
proposed rule change for any new annual holidays it determines to add 
to the list of holidays within General 3, Rule 1030(a) would remain 
unchanged. The proposed authority would permit the Exchange to close 
the market on an ad hoc basis for an extraordinary event without the 
need to file a proposed rule change; these unanticipated closures would 
not be recognized on an annual basis. Today, the Exchange would utilize 
emergency authority to close its market as a result of an extraordinary 
circumstance.\13\ This amendment removes impediments to and perfects 
the mechanism of a free and open market and a national market system by 
allowing the Exchange to halt or suspend trading or close Exchange 
facilities for unanticipated circumstances by providing notice to 
members and member organizations in addition to continuing to post its 
annual holiday schedule on its website.
---------------------------------------------------------------------------

    \12\ The special circumstances noted in proposed Rule 1030(b) 
include, (1) actual or threatened physical danger, severe climatic 
conditions, civil unrest, terrorism, acts of war, or loss or 
interruption of facilities utilized by the Exchange, (2) a request 
by a governmental agency or official, or (3) a period of mourning or 
recognition for a person or event.
    \13\ See Phlx By-Law 7.5.
---------------------------------------------------------------------------

    The Exchange's proposal to add rule text at the end of General 3, 
Section 1030(b) to make clear the power of the Chief Executive Officer 
to halt, suspend or close facilities of the Exchange within paragraph 
(b) applies only to the circumstances noted within that paragraph is 
consistent with the Act as that rule text will clarify the scope of the 
Chief Executive Officer's powers. Making clear the powers of the Chief 
Executive Officer adds greater transparency to the proposed rule.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. Memorializing its current 
holidays within General 3, Rule 1030(a) and describing the way holidays 
are observed today that fall on a Saturday or Sunday, unless unusual 
business conditions exist, does not impose an undue burden on 
competition, rather the proposal brings clarity to the Exchange's 
Rules. Moreover, adding Juneteenth National Independence Day to its 
list of annual holidays within General 3, Rule 1030(a) will not impose 
any burden on competition as the holiday aligns with broad industry 
sentiment \14\ and the approach recommended by SIFMA. The Exchange 
would continue to coordinate with the securities industry regarding the 
observation of annual holidays.
---------------------------------------------------------------------------

    \14\ See note 6 above.
---------------------------------------------------------------------------

    Further, the Exchange's proposed changes to General 3, Rule 1030(b) 
to permit the Chief Executive Officer to halt, suspend trading in any 
and all securities traded on the Exchange, to close some or all 
Exchange facilities, and to determine the duration of any such halt, 
suspension, or closing, when he or she deems such action necessary for 
the maintenance of fair and orderly markets, the protection of 
investors, or otherwise in the public interest including certain 
specified special circumstances does not impose an undue burden on 
competition. The proposed authority would permit the Exchange to close 
on an ad hoc basis for an extraordinary event without the need to file 
a rule change by providing notice to members and member organizations 
of these unanticipated closures. This would allow the Exchange to 
continue to coordinate with the securities industry for unanticipated 
closures. These proposed changes are not designed to address any 
competitive issues and are consistent with existing rules of other 
exchanges.\15\
---------------------------------------------------------------------------

    \15\ See Cboe BYX Rule 11.1(b) and (c) and Cboe Rules 5.1(d) and 
5.23(d).
---------------------------------------------------------------------------

    The Exchange's proposal to add rule text at the end of General 3, 
Section 1030(b) to make clear the power of the Chief Executive Officer 
to halt, suspend or close facilities of the Exchange within paragraph 
(b) applies only to the circumstances noted within that paragraph does 
not impose an undue burden on competition, rather, the rule text will 
make clear the powers of the Chief Executive Officer thereby adding 
greater transparency to the proposed rule.

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 \16\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\17\
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \17\ 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.
---------------------------------------------------------------------------

    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-Phlx-2021-69 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-Phlx-2021-69. This file

[[Page 68714]]

number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-Phlx-2021-69 and should be submitted on 
or before December 27, 2021.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-26240 Filed 12-2-21; 8:45 am]
BILLING CODE 8011-01-P
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