Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Pearl Options Fee Schedule, 2653-2655 [2022-00773]
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Federal Register / Vol. 87, No. 11 / Tuesday, January 18, 2022 / Notices
to submit the NSS file without the
settling bank’s balance and thus
complete EOD Settlement or AIP
Settlement, as applicable, for all other
settling banks. Therefore, the
Commission believes the changes are
designed to promote the prompt and
accurate clearance and settlement of
securities transactions, consistent with
Section 17A(b)(3)(F) of the Act.43
Further, as discussed throughout
Section II.B (Proposed Rule Change)
above, the proposal to amend the
definition of AIP Settling Bank and
remove AIP Settling Bank Only
Members as a membership category,
codify certain existing AIP settlement
processes, and make certain technical
and conforming changes should ensure
that the Rules are clear and accurate to
NSCC’s members. Having clear and
accurate Rules should facilitate NSCC
members’ understanding of those rules
and provide members with increased
predictability and certainty regarding
their obligations. Therefore, the
Commission believes the proposed
changes would also promote the prompt
and accurate clearance and settlement of
securities, consistent with Section
17A(b)(3)(F) of the Act.44
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and, in
particular, with the requirements of
Section 17A of the Act 45 and the rules
and regulations promulgated
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 46 that
proposed rule change SR–NSCC–2021–
013, be, and hereby is, approved.47
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.48
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–00774 Filed 1–14–22; 8:45 am]
khammond on DSKJM1Z7X2PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93951; File No. SR–
PEARL–2021–60]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the MIAX Pearl
Options Fee Schedule
January 11, 2022.
Pursuant to the provisions of 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 December 29, 2021, MIAX PEARL,
LLC (‘‘MIAX Pearl’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) a
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 is filing a proposal to
amend the MIAX Pearl Options Fee
Schedule (the ‘‘Fee Schedule’’) to reflect
adjustments to the Financial Industry
Regulatory Authority (‘‘FINRA’’)
Registration Fees.3
While the changes proposed herein
are effective upon filing, the Exchange
has designated the amendments to
become operative on January 2, 2022.4
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/pearl at MIAX Pearl’s principal
office, 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
43 Id.
1 15
44 Id.
45 15
U.S.C. 78q–1.
46 15 U.S.C. 78s(b)(2).
47 In approving the proposed rule change, the
Commission considered the proposals’ impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
48 17 CFR 200.30–3(a)(12).
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Fee Schedule, Section 2)c).
4 See Securities Exchange Act Release No. 90176
(October 14, 2020), 85 FR 66592 (October 20, 2020)
(SR–FINRA–2020–032) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change
to Adjust FINRA Fees to Provide Sustainable
Funding for FINRA’s Regulatory Mission).
2 17
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2653
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 amend
Section 2)c) of the Fee Schedule, Web
CRD Fees, to reflect adjustments to the
FINRA Registration Fees.5 The FINRA
fees are collected and retained by
FINRA via Web Central Registration
Depository (‘‘CRD’’) for the registration
of associated persons of MIAX Pearl
Electronic Exchange Member 6 and
Market Maker 7 organizations that are
not also FINRA members (‘‘Non-FINRA
members’’).8 The Exchange merely lists
these fees in its Fee Schedule. The
Exchange does not collect or retain
these fees.
Since February 13, 2017, FINRA has
assessed, and the Exchange has listed in
its Fee Schedule, a $100 fee for the
FINRA CRD processing fee.9 This fee is
for all initial, transfer, relicense, and
dual registration Form U4 filings.10 This
fee is assessed when a non-FINRA firm
(i.e., a firm that is not a member of
FINRA) submits its first initial, transfer,
relicense, or dual registration Form U4
filing on behalf of a registered person.11
The Exchange now proposes to
amend, under the General Registration
Fees in Section 2)c) of the Fee Schedule,
the FINRA CRD Processing Fee from
$100 to $125 for each initial Form U4
filed for the registration of a
representative or principal. This
amendment is made in accordance with
a recent FINRA rule change to adjust its
fees.12
5 Id.
6 ‘‘Electronic Exchange Member’’ means the
holder of a Trading Permit who is a Member
representing as agent Public Customer Orders or
Non-Customer Orders on the Exchange and those
non-Market Maker Members conducting proprietary
trading. Electronic Exchange Members are deemed
‘‘members’’ under the Exchange Act. See Exchange
Rule 100.
7 ‘‘Market Makers’’ means a Member registered
with the Exchange for the purpose of making
markets in options contracts traded on the
Exchange and that is vested with the rights and
responsibilities specified in Chapter VI of these
Rules. See Exchange Rule 100.
8 See Securities Exchange Act Release No. 80061
(February 17, 2017), 82 FR 11676 (February 24,
2017) (SR–PEARL–2017–10).
9 See id.
10 Id.
11 Id.
12 Id. FINRA operates Web CRD, the central
licensing and registration system for the U.S.
securities industry. FINRA uses Web CRD to
E:\FR\FM\18JAN1.SGM
Continued
18JAN1
2654
Federal Register / Vol. 87, No. 11 / Tuesday, January 18, 2022 / Notices
The FINRA fees are collected and
retained by FINRA via Web CRD for the
registration of employees of the
Exchange who are Non-FINRA
members. The FINRA Web CRD Fees are
user-based, and there is no distinction
in the cost incurred by FINRA if the
user is a FINRA member or a NonFINRA member. Accordingly, the
proposed fees mirror those currently
assessed by FINRA. The Exchange
merely lists these fees in its Fee
Schedule. The Exchange does not
collect or retain these fees.
khammond on DSKJM1Z7X2PROD with NOTICES
Implementation
The proposed rule change will
become operative on January 2, 2022.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.13 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 14 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 15 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes it is reasonable
to increase the $100 fee for each initial
Form U4 filed for the registration of a
representative or principal to $125 in
accordance with an adjustment to
FINRA’s fees. The Exchange’s rule text
will reflect the current registration rate
that will be assessed by FINRA as of
January 2, 2022. The proposed fee
change is identical to that adopted by
FINRA for use of Web CRD for the
registration of FINRA members and
their associated persons. These costs are
maintain the qualification, employment and
disciplinary histories of registered associated
persons of broker-dealers. FINRA noted in its rule
change that it was adjusting its fees to provide
sustainable funding for FINRA’s regulatory mission.
13 15 U.S.C. 78f(b).
14 15 U.S.C. 78f(b)(5).
15 Id.
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borne by FINRA when a Non-FINRA
member uses Web CRD.
The Exchange believes that its
proposal to increase the $100 fee for
each initial Form U4 filed for the
registration of a representative or
principal to $125 is equitable and not
unfairly discriminatory as the
amendment will reflect the current fee
that will be assessed by FINRA to all
members who require Form U4 filings
as of January 2, 2022. Further, the
proposal is also equitable and not
unfairly discriminatory because the
Exchange will not be collecting or
retaining these fees; therefore, the
Exchange will not be in a position to
apply them in an inequitable or unfairly
discriminatory manner. The proposed
rule change was based on recent fee
adjustments currently assessed by
FINRA.16 Thus, the proposed change
does not raise any new or novel issues.
For these reasons, the Exchange believes
that the proposal is consistent with the
Act.
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 that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that its proposal to
increase the $100 fee for each initial
Form U4 filed for the registration of a
representative or principal to $125 does
not impose an undue burden on
competition as the amendment will
reflect the current fee that will be
assessed by FINRA to all members who
require Form U4 filings as of January 2,
2022. Further, the proposal does not
impose an undue burden on
competition because the Exchange will
not be collecting or retaining these fees;
therefore, the Exchange will not be in a
position to apply them in an inequitable
or unfairly discriminatory manner.
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
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act,17 and Rule
19b–4(f)(2) 18 thereunder. At any time
16 See
supra note 4.
U.S.C. 78s(b)(3)(A)(ii).
18 17 CFR 240.19b–4(f)(2).
17 15
PO 00000
Frm 00066
Fmt 4703
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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–
PEARL–2021–60 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Vanessa Countryman, Secretary,
Securities and Exchange Commission,
100 F Street NE, Washington, DC
20549–1090.
All submissions should refer to File
Number SR–PEARL–2021–60. 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
E:\FR\FM\18JAN1.SGM
18JAN1
Federal Register / Vol. 87, No. 11 / Tuesday, January 18, 2022 / Notices
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
PEARL–2021–60 and should be
submitted on or before February 8, 2022.
examination, litigation, or regulatory
matters.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
J. Matthew DeLesDernier,
Assistant Secretary.
Dated: January 13, 2022.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2022–00773 Filed 1–14–22; 8:45 am]
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Authority: 5 U.S.C. 552b.
[FR Doc. 2022–00920 Filed 1–13–22; 4:15 pm]
BILLING CODE 8011–01–P
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93949; File No. SR–MEMX–
2021–21]
Sunshine Act Meetings
2:00 p.m. on Thursday,
January 20, 2021.
PLACE: The meeting will be held via
remote means and/or at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to
the public.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
In the event that the time, date, or
location of this meeting changes, an
announcement of the change, along with
the new time, date, and/or place of the
meeting will be posted on the
Commission’s website at https://
www.sec.gov.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
The subject matter of the closed
meeting will consist of the following
topics:
Institution and settlement of injunctive
actions;
Institution and settlement of
administrative proceedings;
Resolution of litigation claims; and
Other matters relating to examinations
and enforcement proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting agenda items that
may consist of adjudicatory,
khammond on DSKJM1Z7X2PROD with NOTICES
TIME AND DATE:
Self-Regulatory Organizations; MEMX
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend the Exchange’s Fee
Schedule
January 11, 2022.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
30, 2021, MEMX LLC (‘‘MEMX’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘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 is filing with the
Commission a proposed rule change to
amend the Exchange’s fee schedule
applicable to Members 3 (the ‘‘Fee
Schedule’’) pursuant to Exchange Rules
15.1(a) and (c). The Exchange proposes
to implement the changes to the Fee
Schedule pursuant to this proposal on
January 3, 2022. The text of the
proposed rule change is provided in
Exhibit 5.
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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Exchange Rule 1.5(p).
2 17
19 17
CFR 200.30–3(a)(12).
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2655
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 purpose of the proposed rule
change is to amend the Fee Schedule to:
(i) Reduce the standard rebate for
executions of orders in securities priced
at or above $1.00 per share that add
displayed liquidity to the Exchange
(such orders, ‘‘Added Displayed
Volume’’); (ii) modify the Liquidity
Provision Tiers by reducing the rebate
for executions of Added Displayed
Volume and modifying the required
criteria under Liquidity Provision Tier
1, modifying the required criteria under
Liquidity Provision Tier 2, and adopting
a new Liquidity Provision Tier 3; (iii)
modify Liquidity Removal Tier 1 by
increasing the fee for executions of
orders in securities priced at or above
$1.00 per share that remove liquidity
from the Exchange (such orders,
‘‘Removed Volume’’) and modifying the
required criteria under such tier; (iv)
modify the Displayed Liquidity
Incentive (‘‘DLI’’) Tiers by reducing the
rebates for executions of Added
Displayed Volume under DLI Tiers 1
and 2 and adopting a new additive
rebate for executions of Added
Displayed Volume applicable to DLI
Tiers 1 and 2; and (v) modify the
Exchange’s pricing for executions of
orders in securities priced below $1.00
per share that remove liquidity from the
Exchange (such orders, ‘‘Removed SubDollar Volume’’) and orders in securities
priced below $1.00 per share that add
non-displayed liquidity to the Exchange
(such orders, ‘‘Added Non-Displayed
Sub-Dollar Volume’’).
The Exchange first notes that it
operates in a highly competitive market
in which market participants can
readily direct order flow to competing
venues if they deem fee levels at a
particular venue to be excessive or
incentives to be insufficient. More
specifically, the Exchange is only one of
16 registered equities exchanges, as well
as a number of alternative trading
systems and other off-exchange venues,
to which market participants may direct
their order flow. Based on publicly
available information, no single
registered equities exchange currently
E:\FR\FM\18JAN1.SGM
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]]>Agencies
[Federal Register Volume 87, Number 11 (Tuesday, January 18, 2022)]
[Notices]
[Pages 2653-2655]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00773]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93951; File No. SR-PEARL-2021-60]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX
Pearl Options Fee Schedule
January 11, 2022.
Pursuant to the provisions of 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 December 29, 2021, MIAX PEARL, LLC (``MIAX
Pearl'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') a 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 is filing a proposal to amend the MIAX Pearl Options
Fee Schedule (the ``Fee Schedule'') to reflect adjustments to the
Financial Industry Regulatory Authority (``FINRA'') Registration
Fees.\3\
---------------------------------------------------------------------------
\3\ See Fee Schedule, Section 2)c).
---------------------------------------------------------------------------
While the changes proposed herein are effective upon filing, the
Exchange has designated the amendments to become operative on January
2, 2022.\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 90176 (October 14,
2020), 85 FR 66592 (October 20, 2020) (SR-FINRA-2020-032) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Adjust FINRA Fees to Provide Sustainable Funding for FINRA's
Regulatory Mission).
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxoptions.com/rule-filings/pearl at MIAX
Pearl's principal office, 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 amend Section 2)c) of the Fee Schedule,
Web CRD Fees, to reflect adjustments to the FINRA Registration Fees.\5\
The FINRA fees are collected and retained by FINRA via Web Central
Registration Depository (``CRD'') for the registration of associated
persons of MIAX Pearl Electronic Exchange Member \6\ and Market Maker
\7\ organizations that are not also FINRA members (``Non-FINRA
members'').\8\ The Exchange merely lists these fees in its Fee
Schedule. The Exchange does not collect or retain these fees.
---------------------------------------------------------------------------
\5\ Id.
\6\ ``Electronic Exchange Member'' means the holder of a Trading
Permit who is a Member representing as agent Public Customer Orders
or Non-Customer Orders on the Exchange and those non-Market Maker
Members conducting proprietary trading. Electronic Exchange Members
are deemed ``members'' under the Exchange Act. See Exchange Rule
100.
\7\ ``Market Makers'' means a Member registered with the
Exchange for the purpose of making markets in options contracts
traded on the Exchange and that is vested with the rights and
responsibilities specified in Chapter VI of these Rules. See
Exchange Rule 100.
\8\ See Securities Exchange Act Release No. 80061 (February 17,
2017), 82 FR 11676 (February 24, 2017) (SR-PEARL-2017-10).
---------------------------------------------------------------------------
Since February 13, 2017, FINRA has assessed, and the Exchange has
listed in its Fee Schedule, a $100 fee for the FINRA CRD processing
fee.\9\ This fee is for all initial, transfer, relicense, and dual
registration Form U4 filings.\10\ This fee is assessed when a non-FINRA
firm (i.e., a firm that is not a member of FINRA) submits its first
initial, transfer, relicense, or dual registration Form U4 filing on
behalf of a registered person.\11\
---------------------------------------------------------------------------
\9\ See id.
\10\ Id.
\11\ Id.
---------------------------------------------------------------------------
The Exchange now proposes to amend, under the General Registration
Fees in Section 2)c) of the Fee Schedule, the FINRA CRD Processing Fee
from $100 to $125 for each initial Form U4 filed for the registration
of a representative or principal. This amendment is made in accordance
with a recent FINRA rule change to adjust its fees.\12\
---------------------------------------------------------------------------
\12\ Id. FINRA operates Web CRD, the central licensing and
registration system for the U.S. securities industry. FINRA uses Web
CRD to maintain the qualification, employment and disciplinary
histories of registered associated persons of broker-dealers. FINRA
noted in its rule change that it was adjusting its fees to provide
sustainable funding for FINRA's regulatory mission.
---------------------------------------------------------------------------
[[Page 2654]]
The FINRA fees are collected and retained by FINRA via Web CRD for
the registration of employees of the Exchange who are Non-FINRA
members. The FINRA Web CRD Fees are user-based, and there is no
distinction in the cost incurred by FINRA if the user is a FINRA member
or a Non-FINRA member. Accordingly, the proposed fees mirror those
currently assessed by FINRA. The Exchange merely lists these fees in
its Fee Schedule. The Exchange does not collect or retain these fees.
Implementation
The proposed rule change will become operative on January 2, 2022.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\13\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \14\ requirements that the rules
of an exchange be designed to prevent fraudulent and manipulative acts
and practices, to promote just and equitable principles of trade, to
foster cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, 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.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \15\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
\15\ Id.
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The Exchange believes it is reasonable to increase the $100 fee for
each initial Form U4 filed for the registration of a representative or
principal to $125 in accordance with an adjustment to FINRA's fees. The
Exchange's rule text will reflect the current registration rate that
will be assessed by FINRA as of January 2, 2022. The proposed fee
change is identical to that adopted by FINRA for use of Web CRD for the
registration of FINRA members and their associated persons. These costs
are borne by FINRA when a Non-FINRA member uses Web CRD.
The Exchange believes that its proposal to increase the $100 fee
for each initial Form U4 filed for the registration of a representative
or principal to $125 is equitable and not unfairly discriminatory as
the amendment will reflect the current fee that will be assessed by
FINRA to all members who require Form U4 filings as of January 2, 2022.
Further, the proposal is also equitable and not unfairly discriminatory
because the Exchange will not be collecting or retaining these fees;
therefore, the Exchange will not be in a position to apply them in an
inequitable or unfairly discriminatory manner. The proposed rule change
was based on recent fee adjustments currently assessed by FINRA.\16\
Thus, the proposed change does not raise any new or novel issues. For
these reasons, the Exchange believes that the proposal is consistent
with the Act.
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\16\ See supra note 4.
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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 that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes that
its proposal to increase the $100 fee for each initial Form U4 filed
for the registration of a representative or principal to $125 does not
impose an undue burden on competition as the amendment will reflect the
current fee that will be assessed by FINRA to all members who require
Form U4 filings as of January 2, 2022. Further, the proposal does not
impose an undue burden on competition because the Exchange will not be
collecting or retaining these fees; therefore, the Exchange will not be
in a position to apply them in an inequitable or unfairly
discriminatory manner.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\17\ and Rule 19b-4(f)(2) \18\ thereunder.
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.
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\17\ 15 U.S.C. 78s(b)(3)(A)(ii).
\18\ 17 CFR 240.19b-4(f)(2).
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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-PEARL-2021-60 on the subject line.
Paper Comments
Send paper comments in triplicate to Vanessa Countryman,
Secretary, Securities and Exchange Commission, 100 F Street NE,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-PEARL-2021-60. 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
[[Page 2655]]
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-PEARL-2021-60 and should be submitted on
or before February 8, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-00773 Filed 1-14-22; 8:45 am]
BILLING CODE 8011-01-P
