Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1 To Replace References to Employees and Officers of Intercontinental Exchange Group, Inc., 11106-11108 [2022-04083]
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11106
Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
the requirements in rule 17f–4. To the
extent that Rule 17f–4(c)(4) provides
that a sub-custodian can be qualified as
a custodian for purposes of Rule 17f–4,
sub-custodians are included as
‘‘custodians’’ in the estimates of burden
hours and costs. While the rule is
elective, but most, if not all, funds use
depository custody arrangements.4
Rule 17f–4 contains two general
conditions. First, a fund’s custodian
must be obligated, at a minimum, to
exercise due care in accordance with
reasonable commercial standards in
discharging its duty as a securities
intermediary to obtain and thereafter
maintain financial assets. If the fund
deals directly with a depository, the
depository’s contract or written rules for
its participants must provide that the
depository will meet similar obligations.
All funds that deal directly with
securities depositories in reliance on
rule 17f–4 should have either modified
their contracts with the relevant
securities depository, or negotiated a
modification in the securities
depository’s written rules when the rule
was amended. Therefore, we estimate
there is no ongoing burden associated
with this collection of information.5
Second, the custodian must provide,
promptly upon request by the fund,
such reports as are available about the
internal accounting controls and
financial strength of the custodian. If a
fund deals directly with a depository,
the depository’s contract with or written
rules for its participants must provide
that the depository will provide similar
financial reports. Custodians and
depositories usually transmit financial
reports to funds twice each year.6 The
Commission staff estimates that 13
custodians, including 7 sub-custodians,
spend approximately 2,330 hours (by
support staff) annually in transmitting
4 Based on responses to Items C.12 of Form N–
CEN (17 CFR 274.101), approximately 96 percent of
funds’ custodians maintain some or all fund
securities in a securities depository pursuant to rule
17f–4.
5 The Commission staff assumes that new funds
relying on 17f–4 would choose to use a custodian
instead of directly dealing with a securities
depository because of the high costs associated with
maintaining an account with a securities
depository. Thus, new funds would not be subject
to this condition.
6 The estimated 13 custodians would handle
requests for reports from 9,984 fund clients
(approximately 768 fund clients per custodian) and
the depositories from the remaining 768 funds that
choose to deal directly with a depository. It is our
understanding based on staff conversations with
industry representatives that custodians and
depositories transmit these reports to clients in the
normal course of their activities as a good business
practice regardless of whether they are requested.
Therefore, for purposes of this PRA estimate, the
Commission staff assumes that custodians transmit
the reports to all fund clients.
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17:23 Feb 25, 2022
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such reports to funds.7 In addition,
approximately 768 funds (i.e., three
percent of all funds) deal directly with
a securities depository and may request
periodic reports from their depository.
Commission staff estimates that
depositories spend approximately 179
hours (by support staff) annually
transmitting reports to the 768 funds.8
The total annual burden estimate for
compliance with rule 17f–4’s reporting
requirement is therefore 2,509 hours.9
If a fund deals directly with a
securities depository, rule 17f–4
requires that the fund implement
internal control systems reasonably
designed to prevent an unauthorized
officer’s instructions (by providing at
least for the form, content, and means of
giving, recording, and reviewing all
officers’ instructions). All funds that
seek to rely on rule 17f–4 should have
already implemented these internal
control systems when the rule was
amended. Therefore, there is no ongoing
burden associated with this collection of
information requirement.10
Based on the foregoing, the
Commission staff estimates that the total
annual hour burden of the rule’s
collection of information requirements
is 2,509 hours.
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act. This estimate
is not derived from a comprehensive or
even representative survey or study of
the costs of Commission rules.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
The public may view the background
documentation for this information
collection at the following website,
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
7 (9,984 fund clients × 2 reports) = 19,968
transmissions. The staff estimates that each
transmission would take approximately 7 minutes
for a total of approximately 2,330 hours (7 minutes
× 19,968 transmissions).
8 (768 fund clients who may deal directly with a
securities depository × 2 reports) = 1,536
transmissions. The staff estimates that each
transmission would take approximately 7 minutes
for a total of approximately 179 hours (7 minutes
× 1,536 transmissions).
9 2,230 hours for custodians and 179 hours for
securities depositories.
10 The Commission staff assumes that new funds
relying on 17f–4 would choose to use a custodian
instead of directly dealing with a securities
depository because of the high costs associated with
maintaining an account with a securities
depository. Thus new funds would not be subject
to this condition.
PO 00000
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Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to:
Lindsay.M.Abate@omb.eop.gov; and (ii)
David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John R.
Pezzullo, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov. Written comments
and recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice March 30, 2022 to
www.reginfo.gov/public/do/PRAMain.
Find this particular information
collection by selecting ‘‘Currently under
30-day Review—Open for Public
Comments’’ or by using the search
function.
Dated: February 23, 2022.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2022–04171 Filed 2–25–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94297; File No. SR–NYSE–
2022–09]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
1 To Replace References to Employees
and Officers of Intercontinental
Exchange Group, Inc.
February 22, 2022.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on February
14, 2022, New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 1 (‘‘The Exchange’’) to replace
references to employees and officers of
Intercontinental Exchange Group, Inc.,
the Exchange’s indirect parent
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Notices
company, with references to employees
and officers of the Exchange. The
proposed rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those 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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
khammond on DSKJM1Z7X2PROD with NOTICES
The Exchange proposes to amend
Rule 1 (‘‘The Exchange’’) to replace
references to employees and officers of
Intercontinental Exchange Group, Inc.
(‘‘ICE’’), the Exchange’s indirect parent
company, with references to employees
and officers of the Exchange.
Prior to 2013, NYSE Euronext was the
ultimate parent company of the
Exchange. At that time, Rule 1 referred
to NYSE Euronext. In 2013, ICE (then
called IntercontinentalExchange Group,
Inc.) acquired NYSE Euronext and its
subsidiaries, including the Exchange.4
In connection with the acquisition,
references to NYSE Euronext in Rule 1
were replaced wholesale with references
to ICE.5
As a result of the changes, Rule 1
provides that, if the person named in a
4 See Securities Exchange Act Release No. 70210
(August 15, 2013), 78 FR 51758 (August 21, 2013)
(SR–NYSE–2013–42, SR–NYSEMKT–2013–50, and
SR–NYSEArca–2013–62) (order granting approval
of proposed rule change relating to a corporate
transaction in which NYSE Euronext will become
a wholly-owned subsidiary of
IntercontinentalExchange Group, Inc.). See also
Securities Exchange Act Release No. 72158 (May
13, 2014), 79 FR 28784 (May 19, 2014) (SR–NYSE–
2014–23) (notice of filing and immediate
effectiveness of proposed rule change relating to
name changes of its ultimate parent,
IntercontinentalExchange Group, Inc., and its
indirect parents, IntercontinentalExchange, Inc. and
NYSE Euronext Holdings LLC).
5 See Exhibit 5K to SR–NYSE–2013–42 (June 14,
2013), at 276–278, available at https://
www.nyse.com/publicdocs/nyse/markets/nyse/rulefilings/filings/2013/NYSE-2013-42.pdf.
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17:23 Feb 25, 2022
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rule is not available, the chief executive
officer (‘‘CEO’’) or chief regulatory
officer (‘‘CRO’’) of the Exchange may
designate one or more qualified
employees of ICE to act in their place.
Rule 1 goes on to state that, for purposes
of a designation by the CEO, a qualified
employee includes, among other things,
any officer of ICE deemed by the CEO
to possess the requisite knowledge and
job qualifications.6
In practice, designations under Rule 1
are limited to Exchange employees and
officers. To more accurately reflect
actual practice, the Exchange proposes
to replace the references to employees
and officers of ICE in Rule 1 with
references to employees and officers of
the Exchange, as follows:
• In the first sentence of the third
paragraph, ‘‘Intercontinental Exchange
Group, Inc. (‘ICE’)’’ would be replaced
with ‘‘the Exchange’’; and
• in clause (1) of the second sentence
of the third paragraph, ‘‘Exchange’’
would be added before ‘‘officer,’’ and
‘‘of ICE’’ would be deleted.
The proposed changes would not
result in any practical changes regarding
which individuals would be eligible to
perform the functions specified in Rule
1 and would not require the Exchange
to change which individuals may
currently performing these functions.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,7 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,8 in particular, because it is
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
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.
The Exchange believes that the
proposed rule change would promote
clarity and transparency in its rules. The
Exchange believes that the change
would not be inconsistent with the
public interest and the protection of
investors because investors will not be
harmed and in fact would benefit from
the increased clarity and transparency
that the change would introduce,
thereby reducing potential confusion.
6 Rule
1.
U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
The Exchange believes that the
proposed rule change would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, protect investors and the public
interest, because it would remove any
potential confusion among market
participants that may result if the
Exchange retained references to ICE
employees and ICE officers in Rule 1,
adding clarity and transparency to
Exchange rules. Moreover, the proposed
change to the first prong of the
definition of ‘‘qualified employee’’ for
purposes of designation by the CEO
would make it consistent with the first
prong of the definition of ‘‘qualified
employee’’ for purposes of designation
by the CRO, reducing any potential
confusion among market participants.
In practice, Exchange employees and
officers, and not ICE employees and
officers, are designated pursuant to Rule
1. The proposed changes would ensure
that remained true, as under the changes
only Exchange officers or Exchange
employees could be qualified employees
delegated authority by the CEO
pursuant to Rule 1. For that reason, the
Exchange believes that the proposed
change would remove impediments to
and perfect the mechanism of a free and
open market and a national market
system and, in general, protect investors
and the public interest.
For these reasons, the Exchange
believes that the proposal is consistent
with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,9 the Exchange believes that the
proposed rule change will not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed change is not designed to
address any competitive issue but rather
serve to promote clarity and
consistency, thereby reducing burdens
on the marketplace and facilitating
investor protection. The proposed
changes would be administrative and
would apply only to the Exchange, and
therefore would not impose any
unnecessary competitive burden on
third parties.
For the reasons described above, the
Exchange believes that the proposed
rule change reflects this competitive
environment.
7 15
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E:\FR\FM\28FEN1.SGM
U.S.C. 78f(b)(8).
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11108
Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not (i) significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and; (iii)
become operative for 30 days from the
date on which it was filed, or such
shorter time as the Commission may
designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 10 and Rule 19b–4(f)(6) 11
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 will institute proceedings
to determine whether the proposed rule
change 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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Electronic Comments
[FR Doc. 2022–04083 Filed 2–25–22; 8:45 am]
• 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–
NYSE–2022–09 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.
khammond on DSKJM1Z7X2PROD with NOTICES
All submissions should refer to File
Number SR–NYSE–2022–09. 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–NYSE–2022–09 and should
be submitted on or before March 21,
2022.
10 15
U.S.C. 78s(b)(3)(A).
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.
11 17
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Jill M. Peterson,
Assistant Secretary.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94293; File No. SR–Phlx–
2022–07]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Strategy Caps
for Reversal and Conversion and Jelly
Roll Strategies
February 22, 2022.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on February
9, 2022, Nasdaq PHLX LLC (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘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 amend
Phlx’s Pricing Schedule at Options 7,
Section 4, ‘‘Multiply Listed Options
Fees (Includes options overlying
equities, ETFs, ETNs and indexes which
are Multiply Listed) (Excludes SPY).’’
The Exchange originally filed the
proposed pricing changes on February
1, 2022 (SR–PHLX–2022–06). On
February 9, 2022, the Exchange
withdrew that filing and submitted this
filing.
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
Phlx proposes to amend its pricing
within Options 7, Section 4, ‘‘Multiply
Listed Options Fees (Includes options
overlying equities, ETFs, ETNs and
indexes which are Multiply Listed)
(Excludes SPY).’’ Specifically, Phlx
proposes to amend the daily strategy
12 17
2
1
3
PO 00000
CFR 200.30–3(a)(12).
15 U.S.C. 78s(b)(1).
Frm 00071
Fmt 4703
Sfmt 4703
15 U.S.C. 78a.
17 CFR 240.19b–4.
E:\FR\FM\28FEN1.SGM
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]]>Agencies
[Federal Register Volume 87, Number 39 (Monday, February 28, 2022)]
[Notices]
[Pages 11106-11108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04083]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94297; File No. SR-NYSE-2022-09]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rule 1 To Replace References to Employees and Officers of
Intercontinental Exchange Group, Inc.
February 22, 2022.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on February 14, 2022, New York Stock Exchange LLC (``NYSE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 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 amend Rule 1 (``The Exchange'') to replace
references to employees and officers of Intercontinental Exchange
Group, Inc., the Exchange's indirect parent
[[Page 11107]]
company, with references to employees and officers of the Exchange. The
proposed rule change is available on the Exchange's website at
www.nyse.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 1 (``The Exchange'') to replace
references to employees and officers of Intercontinental Exchange
Group, Inc. (``ICE''), the Exchange's indirect parent company, with
references to employees and officers of the Exchange.
Prior to 2013, NYSE Euronext was the ultimate parent company of the
Exchange. At that time, Rule 1 referred to NYSE Euronext. In 2013, ICE
(then called IntercontinentalExchange Group, Inc.) acquired NYSE
Euronext and its subsidiaries, including the Exchange.\4\ In connection
with the acquisition, references to NYSE Euronext in Rule 1 were
replaced wholesale with references to ICE.\5\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 70210 (August 15,
2013), 78 FR 51758 (August 21, 2013) (SR-NYSE-2013-42, SR-NYSEMKT-
2013-50, and SR-NYSEArca-2013-62) (order granting approval of
proposed rule change relating to a corporate transaction in which
NYSE Euronext will become a wholly-owned subsidiary of
IntercontinentalExchange Group, Inc.). See also Securities Exchange
Act Release No. 72158 (May 13, 2014), 79 FR 28784 (May 19, 2014)
(SR-NYSE-2014-23) (notice of filing and immediate effectiveness of
proposed rule change relating to name changes of its ultimate
parent, IntercontinentalExchange Group, Inc., and its indirect
parents, IntercontinentalExchange, Inc. and NYSE Euronext Holdings
LLC).
\5\ See Exhibit 5K to SR-NYSE-2013-42 (June 14, 2013), at 276-
278, available at https://www.nyse.com/publicdocs/nyse/markets/nyse/rule-filings/filings/2013/NYSE-2013-42.pdf.
---------------------------------------------------------------------------
As a result of the changes, Rule 1 provides that, if the person
named in a rule is not available, the chief executive officer (``CEO'')
or chief regulatory officer (``CRO'') of the Exchange may designate one
or more qualified employees of ICE to act in their place. Rule 1 goes
on to state that, for purposes of a designation by the CEO, a qualified
employee includes, among other things, any officer of ICE deemed by the
CEO to possess the requisite knowledge and job qualifications.\6\
---------------------------------------------------------------------------
\6\ Rule 1.
---------------------------------------------------------------------------
In practice, designations under Rule 1 are limited to Exchange
employees and officers. To more accurately reflect actual practice, the
Exchange proposes to replace the references to employees and officers
of ICE in Rule 1 with references to employees and officers of the
Exchange, as follows:
In the first sentence of the third paragraph,
``Intercontinental Exchange Group, Inc. (`ICE')'' would be replaced
with ``the Exchange''; and
in clause (1) of the second sentence of the third
paragraph, ``Exchange'' would be added before ``officer,'' and ``of
ICE'' would be deleted.
The proposed changes would not result in any practical changes
regarding which individuals would be eligible to perform the functions
specified in Rule 1 and would not require the Exchange to change which
individuals may currently performing these functions.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\8\ in particular, because it
is 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 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change would promote
clarity and transparency in its rules. The Exchange believes that the
change would not be inconsistent with the public interest and the
protection of investors because investors will not be harmed and in
fact would benefit from the increased clarity and transparency that the
change would introduce, thereby reducing potential confusion.
The Exchange believes that the proposed rule change would remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, protect investors and the
public interest, because it would remove any potential confusion among
market participants that may result if the Exchange retained references
to ICE employees and ICE officers in Rule 1, adding clarity and
transparency to Exchange rules. Moreover, the proposed change to the
first prong of the definition of ``qualified employee'' for purposes of
designation by the CEO would make it consistent with the first prong of
the definition of ``qualified employee'' for purposes of designation by
the CRO, reducing any potential confusion among market participants.
In practice, Exchange employees and officers, and not ICE employees
and officers, are designated pursuant to Rule 1. The proposed changes
would ensure that remained true, as under the changes only Exchange
officers or Exchange employees could be qualified employees delegated
authority by the CEO pursuant to Rule 1. For that reason, the Exchange
believes that the proposed change would remove impediments to and
perfect the mechanism of a free and open market and a national market
system and, in general, protect investors and the public interest.
For these reasons, the Exchange believes that the proposal is
consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\9\ the Exchange
believes that the proposed rule change will not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The proposed change is not designed to address any
competitive issue but rather serve to promote clarity and consistency,
thereby reducing burdens on the marketplace and facilitating investor
protection. The proposed changes would be administrative and would
apply only to the Exchange, and therefore would not impose any
unnecessary competitive burden on third parties.
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\9\ 15 U.S.C. 78f(b)(8).
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For the reasons described above, the Exchange believes that the
proposed rule change reflects this competitive environment.
[[Page 11108]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and; (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) \11\ thereunder.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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.
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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 will institute proceedings to
determine whether the proposed rule change 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-NYSE-2022-09 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-NYSE-2022-09. 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-NYSE-2022-09 and should be submitted on
or before March 21, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2022-04083 Filed 2-25-22; 8:45 am]
BILLING CODE 8011-01-P
