Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Implementation Date of Certain Amendments to FINRA Rule 4210 Approved Pursuant to SR-FINRA-2015-036, 13337-13339 [2022-04920]
Download as PDF
<![CDATA[
Federal Register / Vol. 87, No. 46 / Wednesday, March 9, 2022 / Notices
13337
ATTACHMENT 1—GENERAL TARGET SCHEDULE FOR PROCESSING AND RESOLVING REQUESTS FOR ACCESS TO SENSITIVE
UNCLASSIFIED NON-SAFEGUARDS INFORMATION IN THIS PROCEEDING
Day
Event/activity
0 ........................
Publication of Federal Register notice of hearing and opportunity to petition for leave to intervene, including order with instructions for access requests.
Deadline for submitting requests for access to Sensitive Unclassified Non-Safeguards Information (SUNSI) with information:
Supporting the standing of a potential party identified by name and address; describing the need for the information in order
for the potential party to participate meaningfully in an adjudicatory proceeding.
Deadline for submitting petition for intervention containing: (i) Demonstration of standing; and (ii) all contentions whose formulation does not require access to SUNSI (+25 Answers to petition for intervention; +7 petitioner/requestor reply).
U.S. Nuclear Regulatory Commission (NRC) staff informs the requestor of the staff’s determination whether the request for
access provides a reasonable basis to believe standing can be established and shows need for SUNSI. (NRC staff also informs any party to the proceeding whose interest independent of the proceeding would be harmed by the release of the information.) If NRC staff makes the finding of need for SUNSI and likelihood of standing, NRC staff begins document processing (preparation of redactions or review of redacted documents).
If NRC staff finds no ‘‘need’’ or no likelihood of standing, the deadline for petitioner/requestor to file a motion seeking a ruling
to reverse the NRC staff’s denial of access; NRC staff files copy of access determination with the presiding officer (or Chief
Administrative Judge or other designated officer, as appropriate). If NRC staff finds ‘‘need’’ for SUNSI, the deadline for any
party to the proceeding whose interest independent of the proceeding would be harmed by the release of the information to
file a motion seeking a ruling to reverse the NRC staff’s grant of access.
Deadline for NRC staff reply to motions to reverse NRC staff determination(s).
(Receipt + 30) If NRC staff finds standing and need for SUNSI, deadline for NRC staff to complete information processing
and file motion for Protective Order and draft Non-Disclosure Affidavit. Deadline for applicant/licensee to file Non-Disclosure
Agreement for SUNSI.
If access granted: Issuance of presiding officer or other designated officer decision on motion for protective order for access
to sensitive information (including schedule for providing access and submission of contentions) or decision reversing a
final adverse determination by the NRC staff.
Deadline for filing executed Non-Disclosure Affidavits. Access provided to SUNSI consistent with decision issuing the protective order.
Deadline for submission of contentions whose development depends upon access to SUNSI. However, if more than 25 days
remain between the petitioner’s receipt of (or access to) the information and the deadline for filing all other contentions (as
established in the notice of opportunity to request a hearing and petition for leave to intervene), the petitioner may file its
SUNSI contentions by that later deadline.
(Contention receipt + 25) Answers to contentions whose development depends upon access to SUNSI.
(Answer receipt + 7) Petitioner/Intervenor reply to answers.
Decision on contention admission.
10 ......................
60 ......................
20 ......................
25 ......................
30 ......................
40 ......................
A .......................
A + 3 .................
A + 28 ...............
A + 53 ...............
A + 60 ...............
>A + 60 .............
SECURITIES AND EXCHANGE
COMMISSION
[FR Doc. 2022–04931 Filed 3–8–22; 8:45 am]
BILLING CODE 7590–01–P
[Release No. 34–94356; File No. SR–FINRA–
2022–003]
SECURITIES AND EXCHANGE
COMMISSION
PREVIOUSLY ANNOUNCED TIME AND DATE OF
THE MEETING: Wednesday, March 9, 2022
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the
Implementation Date of Certain
Amendments to FINRA Rule 4210
Approved Pursuant to SR–FINRA–
2015–036
at 12:00 p.m.
March 3, 2022.
Sunshine Act Meeting; Cancellation
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: 87 FR 12748, March 7,
2022.
The Closed
Meeting scheduled for Wednesday,
March 9, 2022 at 12:00 p.m., has been
cancelled.
CHANGES IN THE MEETING:
jspears on DSK121TN23PROD with NOTICES1
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)
Dated: March 7, 2022.
Vanessa A. Countryman,
Secretary.
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 February
25, 2022, the Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I and II, below, which Items
have been prepared by FINRA. FINRA
has designated the proposed rule change
[FR Doc. 2022–05097 Filed 3–7–22; 4:15 pm]
1 15
BILLING CODE 8011–01–P
2 17
VerDate Sep<11>2014
17:44 Mar 08, 2022
Jkt 256001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00087
Fmt 4703
as constituting a ‘‘non-controversial’’
rule change under paragraph (f)(6) of
Rule 19b–4 under the Act,3 which
renders the proposal effective upon
receipt of this filing by the Commission.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to extend, to
October 26, 2022, the implementation
date of the amendments to FINRA Rule
4210 (Margin Requirements) pursuant to
SR–FINRA–2015–036, other than the
amendments pursuant to SR–FINRA–
2015–036 that were implemented on
December 15, 2016. The proposed rule
change would not make any changes to
the text of FINRA rules.
The text of the proposed rule change
is available on FINRA’s website at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
3 17
Sfmt 4703
CFR 240.19b–4(f)(6).
E:\FR\FM\09MRN1.SGM
09MRN1
13338
Federal Register / Vol. 87, No. 46 / Wednesday, March 9, 2022 / Notices
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. FINRA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
jspears on DSK121TN23PROD with NOTICES1
1. Purpose
On October 6, 2015, FINRA filed with
the Commission proposed rule change
SR–FINRA–2015–036, which proposed
to amend FINRA Rule 4210 to establish
margin requirements for (1) To Be
Announced (‘‘TBA’’) transactions,
inclusive of adjustable rate mortgage
(‘‘ARM’’) transactions; (2) Specified
Pool Transactions; and (3) transactions
in Collateralized Mortgage Obligations
(‘‘CMOs’’), issued in conformity with a
program of an agency or GovernmentSponsored Enterprise (‘‘GSE’’), with
forward settlement dates, as defined
more fully in the filing (collectively,
‘‘Covered Agency Transactions’’). The
Commission approved SR–FINRA–
2015–036 on June 15, 2016 (the
‘‘Approval Date’’).4
Pursuant to Partial Amendment No. 3
to SR–FINRA–2015–036, FINRA
announced in Regulatory Notice 16–31
that the rule change would become
effective on December 15, 2017, 18
months from the Approval Date, except
that the risk limit determination
requirements as set forth in paragraphs
(e)(2)(F), (e)(2)(G) and (e)(2)(H) of Rule
4210 and in new Supplementary
Material .05, each as respectively
amended or established by SR–FINRA–
2015–036 (collectively, the ‘‘risk limit
determination requirements’’), would
become effective on December 15, 2016,
six months from the Approval Date.5
Industry participants sought
clarification regarding the
4 See Securities Exchange Act Release No. 78081
(June 15, 2016), 81 FR 40364 (June 21, 2016) (Notice
of Filing of Amendment No. 3 and Order Granting
Accelerated Approval to a Proposed Rule Change to
Amend FINRA Rule 4210 (Margin Requirements) to
Establish Margin Requirements for the TBA Market,
as Modified by Amendment Nos. 1, 2, and 3; File
No. SR–FINRA–2015–036).
5 See Partial Amendment No. 3 to SR–FINRA–
2015–036 and Regulatory Notice 16–31 (August
2016), both available at: <www.finra.org>.
VerDate Sep<11>2014
17:44 Mar 08, 2022
Jkt 256001
implementation of the requirements
pursuant to SR–FINRA–2015–036.
Industry participants also requested
additional time to make system changes
necessary to comply with the
requirements, including time to test the
system changes, and requested
additional time to update or amend
margining agreements and related
documentation. In response, FINRA
made available a set of Frequently
Asked Questions & Guidance 6 and,
pursuant to SR–FINRA–2017–029,7
extended the implementation date of the
requirements of SR–FINRA–2015–036 to
June 25, 2018, except for the risk limit
determination requirements, which, as
announced in Regulatory Notice 16–31,
became effective on December 15, 2016.
Industry participants requested that
FINRA reconsider the potential impact
of certain requirements pursuant to SR–
FINRA–2015–036 on smaller and midsized firms. Industry participants also
requested that FINRA extend the
implementation date pending such
reconsideration. In response to these
concerns, FINRA further extended the
implementation date of the
requirements of SR–FINRA–2015–036,
other than the risk limit determination
requirements, most recently to April 26,
2022 (the ‘‘April 26, 2022
implementation date’’),8 and, informed
by extensive dialogue, both with
industry participants and other
regulators, including the staff of the SEC
and the Federal Reserve System, FINRA
proposed amendments to the
requirements of SR–FINRA–2015–036
(the ‘‘Proposed Amendments’’).9
6 Available at: <www.finra.org/rules-guidance/
guidance/faqs>. Further, staff of the SEC’s Division
of Trading and Markets made available a set of
Frequently Asked Questions regarding Exchange
Act Rule 15c3–1 and Rule 15c3–3 in connection
with Covered Agency Transactions under FINRA
Rule 4210, also available at: <www.finra.org/rulesguidance/guidance/faqs>.
7 See Securities Exchange Act Release No. 81722
(September 26, 2017), 82 FR 45915 (October 2,
2017) (Notice of Filing and Immediate Effectiveness
of a Proposed Rule Change to Delay the
Implementation Date of Certain Amendments to
FINRA Rule 4210 Approved Pursuant to SR–
FINRA–2015–036; File No. SR–FINRA–2017–029);
see also Regulatory Notice 17–28 (September 2017).
8 See Securities Exchange Act Release No. 93630
(November 19, 2021), 86 FR 67557 (November 26,
2021) (Notice of Filing and Immediate Effectiveness
of a Proposed Rule Change to Extend the
Implementation Date of Certain Amendments to
FINRA Rule 4210 Approved Pursuant to SR–
FINRA–2015–036; File No. SR–FINRA–2021–028).
9 See Securities Exchange Act Release No. 91937
(May 19, 2021), 86 FR 28161 (May 25, 2021) (Notice
of Filing of a Proposed Rule Change to Amend the
Requirements for Covered Agency Transactions
Under FINRA Rule 4210 (Margin Requirements) as
Approved Pursuant to SR–FINRA–2015–036; File
No. SR–FINRA–2021–010). See also Partial
Amendment No. 1 to SR–FINRA–2021–010, and
Letter from Adam Arkel, Associate General
Counsel, Office of General Counsel, FINRA, to
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
The SEC, pursuant to delegated
authority, approved the Proposed
Amendments on January 20, 2022; 10
however, the Commission has stated
that, in accordance with Rule 431(e) of
the Commission’s Rules of Practice, the
action approving the Proposed
Amendments is stayed until the
Commission orders otherwise.11 FINRA
believes it is appropriate, in the interest
of regulatory clarity, to adjust the
implementation of the requirements
pursuant to SR–FINRA–2015–036
pending further action by the
Commission on the Proposed
Amendments. As such, FINRA is
proposing to extend the April 26, 2022
implementation date to October 26,
2022. FINRA notes that the risk limit
determination requirements pursuant to
SR–FINRA–2015–036 became effective
on December 15, 2016, and, as such, the
implementation of such requirements is
not affected by the proposed rule
change.
FINRA has filed the proposed rule
change for immediate effectiveness and
has requested that the Commission
waive the requirement that the proposed
rule change not become operative for 30
days after the date of the filing. The
operative date will be the date of filing
of the proposed rule change.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,12 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. FINRA believes that the
proposed rule change serves the interest
of regulatory clarity in the Covered
Agency Transaction market pending
further Commission action on the
Proposed Amendments. FINRA believes
that this will thereby protect investors
and the public interest by helping to
promote stability in the Covered Agency
Transaction market.
Vanessa Countryman, Secretary, SEC, dated
September 16, 2021, both available at:
<www.finra.org>.
10 See Securities Exchange Act Release No. 94013
(January 20, 2022), 87 FR 4076 (January 26, 2022)
(Order Granting Approval of a Proposed Rule
Change, as Modified by Amendment No. 1, to
Amend the Requirements for Covered Agency
Transactions Under FINRA Rule 4210 (Margin
Requirements) as Approved Pursuant to SR–
FINRA–2015–036).
11 See Letter from J. Matthew DeLesDernier,
Assistant Secretary, SEC, to Adam Arkel, Associate
General Counsel, Office of General Counsel, FINRA,
dated January 27, 2022, available at: sec.gov.
12 15 U.S.C. 78o–3(b)(6).
E:\FR\FM\09MRN1.SGM
09MRN1
Federal Register / Vol. 87, No. 46 / Wednesday, March 9, 2022 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. FINRA
believes that extending the April 26,
2022 implementation date to October
26, 2022, pending further Commission
action on the Proposed Amendments,
will help to provide clarity to industry
participants and to promote stability in
the Covered Agency Transaction market,
thereby benefiting all parties.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 13 and Rule 19b–
4(f)(6) thereunder.14
A proposed rule change filed under
Rule 19b–4(f)(6) 15 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–(f)(6)(iii),16 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest.
FINRA has requested that the
Commission waive the 30-day operative
delay so that the proposal may become
operative upon filing. FINRA has stated
that the proposed rule change will help
to provide clarity to industry
participants and to promote stability in
the Covered Agency Transaction market
pending further Commission Action on
the Proposed Amendments.
The Commission believes that
waiving the 30-day operative delay is
jspears on DSK121TN23PROD with NOTICES1
13 15
U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires a self-regulatory
organization to give the Commission written notice
of its intent to file the proposed rule change, along
with a brief description and text of the proposed
rule change, at least five business days prior to the
date of filing of the proposed rule change, or such
shorter time as designated by the Commission.
FINRA has satisfied this requirement.
VerDate Sep<11>2014
17:44 Mar 08, 2022
Jkt 256001
13339
consistent with the protection of
investors and the public interest
because the proposal to extend the
implementation date of the amendments
to Rule 4210 pursuant to SR–FINRA–
2015–036 (other than the amendments
pursuant to SR–FINRA–2015–036 that
were implemented on December 15,
2016) does not raise any new or novel
issues and will reduce any potential
uncertainty in the Covered Agency
Transaction market. Therefore, the
Commission hereby waives the 30-day
operative delay requirement and
designates the proposed rule change as
operative upon filing.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.
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
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of
FINRA.
All comments received will be posted
without change. Persons submitting
comments are cautioned that we do not
redact or edit personal identifying
information from comment submissions.
You should submit only information
that you wish to make available
publicly. All submissions should refer
to File Number SR–FINRA–2022–003
and should be submitted on or before
March 30, 2022.
IV. Solicitation of Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Assistant Secretary.
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
FINRA–2022–003 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–FINRA–2022–003. 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
17 For purposes of waiving the 30-day operative
delay, the Commission has also considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
[FR Doc. 2022–04920 Filed 3–8–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94353; File No. SR–MIAX–
2021–58]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing of Amendment
Nos. 1 and 2 and Order Granting
Accelerated Approval of a Proposed
Rule Change, as Modified by
Amendment Nos. 1 and 2, To Adopt
Exchange Rule 532, Order and Quote
Price Protection Mechanisms and Risk
Controls
March 3, 2022.
I. Introduction
On November 16, 2021, Miami
International Securities Exchange, LLC
(‘‘MIAX Options’’ or the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (the ‘‘Commission’’),
pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
18 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
E:\FR\FM\09MRN1.SGM
09MRN1
]]>Agencies
[Federal Register Volume 87, Number 46 (Wednesday, March 9, 2022)]
[Notices]
[Pages 13337-13339]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04920]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94356; File No. SR-FINRA-2022-003]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Extend the Implementation Date of Certain
Amendments to FINRA Rule 4210 Approved Pursuant to SR-FINRA-2015-036
March 3, 2022.
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 February 25, 2022, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I and
II, below, which Items have been prepared by FINRA. FINRA has
designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under
the Act,\3\ which renders the proposal effective upon receipt of this
filing by the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to extend, to October 26, 2022, the
implementation date of the amendments to FINRA Rule 4210 (Margin
Requirements) pursuant to SR-FINRA-2015-036, other than the amendments
pursuant to SR-FINRA-2015-036 that were implemented on December 15,
2016. The proposed rule change would not make any changes to the text
of FINRA rules.
The text of the proposed rule change is available on FINRA's
website at https://www.finra.org, at the principal office of FINRA and
at the Commission's Public Reference Room.
[[Page 13338]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On October 6, 2015, FINRA filed with the Commission proposed rule
change SR-FINRA-2015-036, which proposed to amend FINRA Rule 4210 to
establish margin requirements for (1) To Be Announced (``TBA'')
transactions, inclusive of adjustable rate mortgage (``ARM'')
transactions; (2) Specified Pool Transactions; and (3) transactions in
Collateralized Mortgage Obligations (``CMOs''), issued in conformity
with a program of an agency or Government-Sponsored Enterprise
(``GSE''), with forward settlement dates, as defined more fully in the
filing (collectively, ``Covered Agency Transactions''). The Commission
approved SR-FINRA-2015-036 on June 15, 2016 (the ``Approval Date'').\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 78081 (June 15,
2016), 81 FR 40364 (June 21, 2016) (Notice of Filing of Amendment
No. 3 and Order Granting Accelerated Approval to a Proposed Rule
Change to Amend FINRA Rule 4210 (Margin Requirements) to Establish
Margin Requirements for the TBA Market, as Modified by Amendment
Nos. 1, 2, and 3; File No. SR-FINRA-2015-036).
---------------------------------------------------------------------------
Pursuant to Partial Amendment No. 3 to SR-FINRA-2015-036, FINRA
announced in Regulatory Notice 16-31 that the rule change would become
effective on December 15, 2017, 18 months from the Approval Date,
except that the risk limit determination requirements as set forth in
paragraphs (e)(2)(F), (e)(2)(G) and (e)(2)(H) of Rule 4210 and in new
Supplementary Material .05, each as respectively amended or established
by SR-FINRA-2015-036 (collectively, the ``risk limit determination
requirements''), would become effective on December 15, 2016, six
months from the Approval Date.\5\
---------------------------------------------------------------------------
\5\ See Partial Amendment No. 3 to SR-FINRA-2015-036 and
Regulatory Notice 16-31 (August 2016), both available at:
<www.finra.org>.
---------------------------------------------------------------------------
Industry participants sought clarification regarding the
implementation of the requirements pursuant to SR-FINRA-2015-036.
Industry participants also requested additional time to make system
changes necessary to comply with the requirements, including time to
test the system changes, and requested additional time to update or
amend margining agreements and related documentation. In response,
FINRA made available a set of Frequently Asked Questions & Guidance \6\
and, pursuant to SR-FINRA-2017-029,\7\ extended the implementation date
of the requirements of SR-FINRA-2015-036 to June 25, 2018, except for
the risk limit determination requirements, which, as announced in
Regulatory Notice 16-31, became effective on December 15, 2016.
---------------------------------------------------------------------------
\6\ Available at: <www.finra.org/rules-guidance/guidance/faqs>.
Further, staff of the SEC's Division of Trading and Markets made
available a set of Frequently Asked Questions regarding Exchange Act
Rule 15c3-1 and Rule 15c3-3 in connection with Covered Agency
Transactions under FINRA Rule 4210, also available at:
<www.finra.org/rules-guidance/guidance/faqs>.
\7\ See Securities Exchange Act Release No. 81722 (September 26,
2017), 82 FR 45915 (October 2, 2017) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change to Delay the Implementation
Date of Certain Amendments to FINRA Rule 4210 Approved Pursuant to
SR-FINRA-2015-036; File No. SR-FINRA-2017-029); see also Regulatory
Notice 17-28 (September 2017).
---------------------------------------------------------------------------
Industry participants requested that FINRA reconsider the potential
impact of certain requirements pursuant to SR-FINRA-2015-036 on smaller
and mid-sized firms. Industry participants also requested that FINRA
extend the implementation date pending such reconsideration. In
response to these concerns, FINRA further extended the implementation
date of the requirements of SR-FINRA-2015-036, other than the risk
limit determination requirements, most recently to April 26, 2022 (the
``April 26, 2022 implementation date''),\8\ and, informed by extensive
dialogue, both with industry participants and other regulators,
including the staff of the SEC and the Federal Reserve System, FINRA
proposed amendments to the requirements of SR-FINRA-2015-036 (the
``Proposed Amendments'').\9\
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 93630 (November 19,
2021), 86 FR 67557 (November 26, 2021) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change to Extend the
Implementation Date of Certain Amendments to FINRA Rule 4210
Approved Pursuant to SR-FINRA-2015-036; File No. SR-FINRA-2021-028).
\9\ See Securities Exchange Act Release No. 91937 (May 19,
2021), 86 FR 28161 (May 25, 2021) (Notice of Filing of a Proposed
Rule Change to Amend the Requirements for Covered Agency
Transactions Under FINRA Rule 4210 (Margin Requirements) as Approved
Pursuant to SR-FINRA-2015-036; File No. SR-FINRA-2021-010). See also
Partial Amendment No. 1 to SR-FINRA-2021-010, and Letter from Adam
Arkel, Associate General Counsel, Office of General Counsel, FINRA,
to Vanessa Countryman, Secretary, SEC, dated September 16, 2021,
both available at: <www.finra.org>.
---------------------------------------------------------------------------
The SEC, pursuant to delegated authority, approved the Proposed
Amendments on January 20, 2022; \10\ however, the Commission has stated
that, in accordance with Rule 431(e) of the Commission's Rules of
Practice, the action approving the Proposed Amendments is stayed until
the Commission orders otherwise.\11\ FINRA believes it is appropriate,
in the interest of regulatory clarity, to adjust the implementation of
the requirements pursuant to SR-FINRA-2015-036 pending further action
by the Commission on the Proposed Amendments. As such, FINRA is
proposing to extend the April 26, 2022 implementation date to October
26, 2022. FINRA notes that the risk limit determination requirements
pursuant to SR-FINRA-2015-036 became effective on December 15, 2016,
and, as such, the implementation of such requirements is not affected
by the proposed rule change.
---------------------------------------------------------------------------
\10\ See Securities Exchange Act Release No. 94013 (January 20,
2022), 87 FR 4076 (January 26, 2022) (Order Granting Approval of a
Proposed Rule Change, as Modified by Amendment No. 1, to Amend the
Requirements for Covered Agency Transactions Under FINRA Rule 4210
(Margin Requirements) as Approved Pursuant to SR-FINRA-2015-036).
\11\ See Letter from J. Matthew DeLesDernier, Assistant
Secretary, SEC, to Adam Arkel, Associate General Counsel, Office of
General Counsel, FINRA, dated January 27, 2022, available at:
sec.gov.
---------------------------------------------------------------------------
FINRA has filed the proposed rule change for immediate
effectiveness and has requested that the Commission waive the
requirement that the proposed rule change not become operative for 30
days after the date of the filing. The operative date will be the date
of filing of the proposed rule change.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\12\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes that the proposed rule change serves
the interest of regulatory clarity in the Covered Agency Transaction
market pending further Commission action on the Proposed Amendments.
FINRA believes that this will thereby protect investors and the public
interest by helping to promote stability in the Covered Agency
Transaction market.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
[[Page 13339]]
B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. FINRA believes that extending
the April 26, 2022 implementation date to October 26, 2022, pending
further Commission action on the Proposed Amendments, will help to
provide clarity to industry participants and to promote stability in
the Covered Agency Transaction market, thereby benefiting all parties.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-
4(f)(6) thereunder.\14\
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-(f)(6)(iii),\16\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. FINRA has requested
that the Commission waive the 30-day operative delay so that the
proposal may become operative upon filing. FINRA has stated that the
proposed rule change will help to provide clarity to industry
participants and to promote stability in the Covered Agency Transaction
market pending further Commission Action on the Proposed Amendments.
---------------------------------------------------------------------------
\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires a self-regulatory organization to give the
Commission written notice of its intent to file the proposed rule
change, along with a brief description and text of the proposed rule
change, at least five business days prior to the date of filing of
the proposed rule change, or such shorter time as designated by the
Commission. FINRA has satisfied this requirement.
---------------------------------------------------------------------------
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because the proposal to extend the implementation date of the
amendments to Rule 4210 pursuant to SR-FINRA-2015-036 (other than the
amendments pursuant to SR-FINRA-2015-036 that were implemented on
December 15, 2016) does not raise any new or novel issues and will
reduce any potential uncertainty in the Covered Agency Transaction
market. Therefore, the Commission hereby waives the 30-day operative
delay requirement and designates the proposed rule change as operative
upon filing.\17\
---------------------------------------------------------------------------
\17\ For purposes of waiving the 30-day operative delay, the
Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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 sec.gov">[email protected]sec.gov. Please include
File Number SR-FINRA-2022-003 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2022-003. 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 a.m. and 3
p.m. Copies of such filing also will be available for inspection and
copying at the principal office of FINRA.
All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-FINRA-2022-003 and should be
submitted on or before March 30, 2022.
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. 2022-04920 Filed 3-8-22; 8:45 am]
BILLING CODE 8011-01-P
