Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Expiration Date of the Temporary Amendments to Rules 9261 and 9830, 50648-50652 [2022-17663]

Download as PDF 50648 Federal Register / Vol. 87, No. 158 / Wednesday, August 17, 2022 / Notices The Commission vote for this determination took place on August 11, 2022. The authority for the Commission’s determination is contained in section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337, and in Part 210 of the Commission’s Rules of Practice and Procedure, 19 CFR part 210. By order of the Commission. Issued: August 11, 2022. Katherine Hiner, Acting Secretary to the Commission. [FR Doc. 2022–17660 Filed 8–16–22; 8:45 am] BILLING CODE 7020–02–P INTERNATIONAL TRADE COMMISSION [Investigation No. 337–TA–1321] Certain Barcode Scanners, Scan Engines, Mobile Computers With Barcode Scanning Functionalities, Products Containing the Same, and Components Thereof II; Notice of a Commission Determination Not To Review an Initial Determination Terminating the Investigation Due to a Settlement Agreement; Termination of Investigation U.S. International Trade Commission. ACTION: Notice. AGENCY: Notice is hereby given that the U.S. International Trade Commission (‘‘Commission’’) has determined not to review an initial determination (‘‘ID’’) (Order No. 3) issued by the presiding administrative law judge (‘‘ALJ’’) terminating the above-captioned investigation based on a settlement agreement. The investigation is hereby terminated. FOR FURTHER INFORMATION CONTACT: Carl P. Bretscher, Esq., Office of the General Counsel, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436, telephone (202) 205–2382. Copies of non-confidential documents filed in connection with this investigation may be viewed on the Commission’s electronic docket (EDIS) at https://edis.usitc.gov. For help accessing EDIS, please email EDIS3Help@usitc.gov. General information concerning the Commission may also be obtained by accessing its internet server at https://www.usitc.gov. Hearing-impaired persons are advised that information on this matter can be obtained by contacting the Commission’s TDD terminal on (202) 205–1810. JSPEARS on DSK121TN23PROD with NOTICES SUMMARY: VerDate Sep<11>2014 17:22 Aug 16, 2022 Jkt 256001 The Commission instituted this investigation on March 11, 2022, based on a complaint, as supplemented, filed by Honeywell International Inc. of Charlotte, North Carolina and Hand Held Products, Inc. of Charlotte, North Carolina (collectively, ‘‘Honeywell’’). 87 FR 38423–24 (June 28, 2022). The complaint, as supplemented, alleges violations of section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. 1337, in the importation into the United States, sale for importation, or sale in the United States after importation of certain barcode scanners, scan engines, mobile computers with barcode scanning functionalities, products containing the same, and components thereof by reason of infringement of certain claims of U.S. Patent Nos. 11,323,949; 11,323,650; 7,852,519; and 9,258,188. Id. The complaint further alleges that a domestic industry exists. Id. The Commission’s notice of investigation named the following respondents: Zebra Technologies Corp. of Lincolnshire, Illinois and Symbol Technologies, LLC of Holtsville, New York (collectively, ‘‘Zebra’’). The Office of Unfair Import Investigations is not participating as a party in this investigation. On July 11, 2022, Honeywell and Zebra jointly moved to terminate the investigation based on a settlement agreement. On July 12, 2022, the presiding ALJ issued the subject ID (Order No. 3) granting the joint motion to terminate the investigation. The ID finds that, pursuant to Commission Rules 210.21(a), (b) (19 CFR 210.21(a), (b)), Honeywell and Zebra represent that there are no other agreements, express or implied, oral or written, between them regarding the subject matter of this investigation. The ID further finds that termination is proper because it would not be contrary to the public health and welfare, competitive conditions in the U.S. economy, the production of like or directly competitive conditions in the United States, or U.S. consumers. The ID further finds that termination is in the public interest, and it will conserve public and private resources. No party filed a petition for review of the subject ID. The Commission has determined not to review the subject ID. Accordingly, the investigation is hereby terminated. The Commission vote for this determination took place on August 11, 2022. The authority for the Commission’s determination is contained in section 337 of the Tariff Act of 1930, as SUPPLEMENTARY INFORMATION: PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 amended (19 U.S.C. 1337), and in Part 210 of the Commission’s Rules of Practice and Procedure (19 CFR part 210). By order of the Commission. Issued: August 11, 2022. Katherine Hiner, Acting Secretary to the Commission. [FR Doc. 2022–17639 Filed 8–16–22; 8:45 am] BILLING CODE 7020–02–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–95473; File No. SR–NYSE– 2022–35] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Expiration Date of the Temporary Amendments to Rules 9261 and 9830 August 11, 2022. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that on July 29, 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 extending the expiration date of the temporary amendments to Rules 9261 and 9830 as set forth in SR–NYSE–2020–76 from July 31, 2022, to October 31, 2022, in conformity with recent changes by the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’). The proposed rule change would not make any changes to the text of NYSE Rules 9261 and 9830. 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. 1 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 E:\FR\FM\17AUN1.SGM 17AUN1 Federal Register / Vol. 87, No. 158 / Wednesday, August 17, 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, 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 extending the expiration date of the temporary amendments as set forth in SR–NYSE– 2020–76 4 to Rules 9261 (Evidence and Procedure in Hearing) and 9830 (Hearing) from July 31, 2022, to October 31, 2022 to harmonize with recent changes by FINRA to extend the expiration date of the temporary amendments to its Rules 9261 and 9830. SR–NYSE–2020–76 temporarily granted to the Chief or Deputy Chief Hearing Officer the authority to order that hearings be conducted by video conference if warranted by public health risks posed by in-person hearings during the ongoing COVID–19 pandemic. The proposed rule change would not make any changes to the text of Exchange Rules 9261 and 9830.5 Background JSPEARS on DSK121TN23PROD with NOTICES In 2013, the NYSE adopted disciplinary rules that are, with certain exceptions, substantially the same as the FINRA Rule 8000 Series and Rule 9000 Series, and which set forth rules for conducting investigations and enforcement actions.6 The NYSE 4 See Securities Exchange Act Release No. 90024 (September 28, 2020), 85 FR 62353 (October 2, 2020) (SR–NYSE–2020–76) (‘‘SR–NYSE–2020–76’’). 5 The Exchange may submit a separate rule filing to extend the expiration date of the proposed extension beyond October 31, 2022 if the Exchange requires additional temporary relief from the rule requirements identified in NYSE–SR–2020–76. The amended NYSE rules will revert back to their original state at the conclusion of the temporary relief period and any extension thereof. 6 See Securities Exchange Act Release No. 68678 (January 16, 2013), 78 FR 5213 (January 24, 2013) (SR–NYSE–2013–02) (‘‘2013 Notice’’), 69045 (March 5, 2013), 78 FR 15394 (March 11, 2013) (SR– NYSE–2013–02) (‘‘2013 Approval Order’’), and 69963 (July 10, 2013), 78 FR 42573 (July 16, 2013) (SR–NYSE–2013–49). VerDate Sep<11>2014 17:22 Aug 16, 2022 Jkt 256001 disciplinary rules were implemented on July 1, 2013.7 In adopting disciplinary rules modeled on FINRA’s rules, the NYSE adopted the hearing and evidentiary processes set forth in Rule 9261 and in Rule 9830 for hearings in matters involving temporary and permanent cease and desist orders under the Rule 9800 Series. As adopted, the text of Rule 9261 is identical to the counterpart FINRA rule. Rule 9830 is substantially the same as FINRA’s rule, except for conforming and technical amendments.8 In response to the COVID–19 global health crisis and the corresponding need to restrict in-person activities, on August 31, 2020, FINRA filed with the Commission a proposed rule change for immediate effectiveness, SR–FINRA– 2020–027, which allowed FINRA’s Office of Hearing Officers (‘‘OHO’’) to conduct hearings, on a temporary basis, by video conference, if warranted by the current COVID–19-related public health risks posed by an in-person hearing. Among the rules FINRA amended were Rules 9261 and 9830.9 Given that FINRA and OHO administers disciplinary hearings on the Exchange’s behalf, and that the public health concerns addressed by FINRA’s amendments apply equally to Exchange disciplinary hearings, on September 15, 2020, the Exchange filed to temporarily amend Rule 9261 and Rule 9830 to permit FINRA to conduct virtual hearings on its behalf.10 In December 2020, FINRA filed a proposed rule change, SR–FINRA–2020–042, to extend the expiration date of the temporary amendments in SR–FINRA–2020–027 from December 31, 2020, to April 30, 2021.11 On December 22, 2020, the Exchange similarly filed to extend the temporary amendments to Rule 9261 and Rule 9830 to April 30, 2021.12 On April 1, 2021, FINRA filed a proposed rule change, SR–FINRA–2021–006, to extend the expiration date of the temporary rule amendments to, among other rules, FINRA Rule 9261 and 9830 from April 30, 2021, to August 31, 7 See NYSE Information Memorandum 13–8 (May 24, 2013). 8 See 2013 Approval Order, 78 FR at 15394, n.7 & 15400; 2013 Notice, 78 FR at 5228 & 5234. 9 See Securities Exchange Act Release No. 89737 (September 2, 2020), 85 FR 55712 (September 9, 2020) (SR–FINRA–2020–027) (the ‘‘August 31 FINRA Filing’’). 10 See note 4, supra. 11 See Securities Exchange Act Release No. 90619 (December 9, 2020), 85 FR 81250 (December 15, 2020) (SR–FINRA–2020–042). 12 See Securities Exchange Act Release No. 90821 (December 30, 2020), 86 FR 644 (January 6, 2021) (SR–NYSE–2020–107). PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 50649 2021.13 On April 20, 2021, the Exchange filed to extend the temporary amendments to Rule 9261 and Rule 9830 to August 31, 2021.14 On August 13, 2021, FINRA filed a proposed rule change, SR–FINRA–2021–019, to extend the expiration date of the temporary amendments to, among other rules, FINRA Rule 9261 and 9830 from August 31, 2021, to December 31, 2021.15 On August 27, 2021, the Exchange filed to extend the temporary amendments to Rule 9261 and Rule 9830 to December 31, 2021.16 On December 7, 2021, FINRA filed a proposed rule change, SR–FINRA–2021–031, to extend the expiration date of the temporary amendments to, among other rules, FINRA Rule 9261 and 9830 from December 31, 2021, to March 31, 2022.17 On December 27, 2021, the Exchange filed to extend the temporary amendments to Rule 9261 and Rule 9830 to March 31, 2022, after which the temporary amendments will expire absent another proposed rule change filing by the Exchange.18 On March 7, 2022, FINRA filed to extend the expiration date of the temporary rule amendments to, among other rules, FINRA Rule 9261 and 9830 from March 31, 2022, to July 31, 2022.19 On March 29, 2022, the Exchange filed to extend the temporary amendments to Rule 9261 and Rule 9830 to July 31, 2022, after which the temporary amendments will expire absent another proposed rule change filing by the Exchange.20 Even though it has been more than two years since the World Health Organization declared COVID–19 a pandemic, FINRA has determined that uncertainty still remains around this disease. The continued presence of COVID–19 variants including the quickly emerging Omicron BA.4 and BA.5 subvariants, dissimilar vaccination rates throughout the United States, and 13 See Securities Exchange Act Release No. 91495 (April 7, 2021), 86 FR 19306 (April 13, 2021) (SR– FINRA–2021–006). 14 See Securities Exchange Act Release No. 91629 (April 22, 2021), 86 FR 22505 (April 28, 2021) (SR– NYSE–2020–27). 15 See Securities Exchange Act Release No. 92685 (August 17, 2021), 86 FR 47169 (August 23, 2021) (SR–FINRA–2021–019). 16 See Securities Exchange Act Release No. 92907 (September 9, 2021), 86 FR 51421 (September 15, 2021) (SR–NYSE–2021–47). 17 See Securities Exchange Act Release No. 93758 (December 13, 2021), 86 FR 71695 (December 17, 2021) (SR–FINRA–2021–31). 18 See Securities Exchange Act Release No. 93920 (January 6, 2022), 87 FR 1794 (January 12, 2022) (SR–NYSE–2021–78). 19 See Securities Exchange Act Release No. 94430 (March 16, 2022), 87 FR 16262 (March 22, 2022) (SR–FINRA–2022–004). 20 See Securities Exchange Act Release No. 94585 (April 1, 2022), 87 FR 20479 (April 7, 2022) (SR– NYSE–2022–18). E:\FR\FM\17AUN1.SGM 17AUN1 50650 Federal Register / Vol. 87, No. 158 / Wednesday, August 17, 2022 / Notices the current medium to high COVID–19 community levels in many states indicate that COVID–19 remains an active and real public health concern.21 Due to the uncertainty and the lack of a clear timeframe for a sustained and widespread abatement of COVID–19related health concerns and corresponding restrictions,22 FINRA believes that there is a continued need for temporary relief beyond July 31, 2022.23 On July 8, 2022, FINRA accordingly filed to extend the expiration date of the temporary rule amendments to, among other rules, FINRA Rule 9261 and 9830 from July 31, 2022, to October 31, 2022.24 JSPEARS on DSK121TN23PROD with NOTICES Proposed Rule Change Consistent with FINRA’s recent proposal, the Exchange proposes to extend the expiration date of the temporary rule amendments to NYSE Rules 9261 and 9830 as set forth in SR– NYSE–2020–76 from July 31, 2022, to October 31, 2022. As set forth in SR–FINRA 2022–018, even though it has been more than two years since the World Health Organization declared COVID–19 a pandemic, uncertainty still remains around this disease. The continued presence of COVID–19 variants including the quickly emerging Omicron BA.4 and BA.5 subvariants, dissimilar vaccination rates throughout the United States, and the current medium to high COVID–19 community levels in many states indicate that 21 See Securities Exchange Act Release No. 95281 (July 14, 2022), 87 FR 43335 (July 20, 2022) (SR– FINRA–2022–018) (‘‘SR–FINRA–2022–018’’). FINRA noted that, for example, there has been a notable upward trend in the number of daily COVID–19 cases in the United States since April 1, 2022. See https://covid.cdc.gov/covid-data-tracker/ #trends_dailycases. In addition, on June 9, 2022, the Biden Administration announced its operational plan for COVID–19 vaccinations for children under the age of five. See https:// www.whitehouse.gov/briefing-room/statementsreleases/2022/06/09/fact-sheetbidenadministration-announces-operational-plan-forcovid-19-vaccinations-for-children-under-5/. See SR–FINRA–2022–018, 87 FR at 43335, n. 6. 22 For instance, FINRA noted that the Centers for Disease Control and Prevention (‘‘CDC’’) recommends that people wear a mask in public indoor settings in areas with a high COVID–19 community level regardless of vaccination status or individual risk. See https://www.cdc.gov/ coronavirus/2019-ncov/prevent-getting-sick/aboutface-coverings.html. The CDC also recommends that people wear a mask in indoor areas of public transportation and transportation hubs to protect themselves and those around them and help keep travel and public transportation safer for everyone. See https://www.cdc.gov/coronavirus/2019-ncov/ travelers/masks-public-transportation.html. Furthermore, numerous states currently have mask mandates in certain settings, such as healthcare and correctional facilities. See SR–FINRA–2022–018, 87 FR at 43335, n.7. 23 See SR–FINRA–2022–018, 87 FR 43335. 24 See SR–FINRA–2022–018, 87 FR at 43335–36. VerDate Sep<11>2014 17:22 Aug 16, 2022 Jkt 256001 COVID–19 remains an active and real public health concern.25 Due to the uncertainty and the lack of a clear timeframe for a sustained and widespread abatement of COVID–19related health concerns and corresponding restrictions,26 FINRA believes that there is a continued need for temporary relief beyond July 31, 2022.27 FINRA accordingly proposed to extend the expiration date of the temporary rule amendments from July 31, 2022, to October 31, 2022. The Exchange proposes to similarly extend the expiration date of the temporary rule amendments to NYSE Rules 9261 and 9830 as set forth in SR– NYSE–2020–76 from July 31, 2022, to October 31, 2022. The Exchange agrees with FINRA that, even though it has been more than two years since the World Health Organization declared COVID–19 a pandemic, uncertainty still remains around this disease. The Exchange also agrees that, due to the uncertainty and the lack of a clear timeframe for a sustained and widespread abatement of COVID–19related health concerns and corresponding restrictions, for the reasons set forth in SR–FINRA–2022– 018, there is a continued need for this temporary relief beyond July 31, 2022. The proposed change would permit OHO to continue to assess, based on critical COVID–19 data and criteria and the guidance of health and security consultants, whether an in-person hearing would compromise the health and safety of the hearing participants such that the hearing should proceed by video conference. As noted in SR– FINRA–2022–018, in deciding whether to schedule a hearing by video conference, OHO may consider a variety of other factors in addition to COVID– 19 trends. Similarly, as noted in SR– FINRA–2022–018, in SR–FINRA–2020– 027, FINRA provided a non-exhaustive list of other factors OHO may take into consideration, including a hearing participant’s individual health concerns and access to the connectivity and technology necessary to participate in a video conference hearing.28 The Exchange believes that this is a reasonable procedure to continue to follow for hearings under Rules 9261 and 9830 chaired by a FINRA employee. As noted below, the Exchange has filed the proposed rule change for immediate effectiveness and has 25 See note 21, supra. note 22, supra. 27 See SR–FINRA–2022–018, 87 FR at 87 FR at 43337. 28 See SR–FINRA–2022–018, 87 FR at 43336, n. 16. 26 See PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 requested that the SEC waive the requirement that the proposed rule change not become operative for 30 days after the date of the filing, so the Exchange can implement the proposed rule change immediately. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act,29 in general, and furthers the objectives of Section 6(b)(5),30 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. Additionally, the Exchange believes the proposed rule change is designed to provide a fair procedure for the disciplining of members and persons associated with members, consistent with Sections 6(b)(7) and 6(d) of the Act.31 The Exchange believes that the proposed rule change supports the objectives of the Act by providing greater harmonization between Exchange rules and FINRA rules of similar purpose, resulting in less burdensome and more efficient regulatory compliance. As such, the proposed rule change will foster cooperation and coordination with persons engaged in facilitating transactions in securities and will remove impediments to and perfect the mechanism of a free and open market and a national market system. The proposed rule change, which extends the expiration date of the temporary amendments to Exchange rules consistent with FINRA’s extension to its Rules 9261 and 9830 as set forth in SR–FINRA–2022–018, will permit the Exchange to continue to effectively conduct hearings during the COVID–19 pandemic. Given the current and frequently changing COVID–19 conditions and the uncertainty around when those conditions will see meaningful, widespread and sustained improvement, without this relief allowing OHO to proceed by video conference, some or all hearings may have to be postponed. The ability to conduct hearings by video conference will permit the adjudicatory functions of the Exchange’s 29 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 31 15 U.S.C. 78f(b)(7) & 78f(d). 30 15 E:\FR\FM\17AUN1.SGM 17AUN1 Federal Register / Vol. 87, No. 158 / Wednesday, August 17, 2022 / Notices disciplinary rules to continue unabated, thereby avoiding protracted delays. The Exchange believes that this is especially important in matters where temporary and permanent cease and desist orders are sought because the proposed rule change would enable those hearings to continue to proceed without delay, thereby enabling the Exchange to continue to take immediate action to stop significant, ongoing customer harm, to the benefit of the investing public. As set forth in detail in the SR– NYSE–2020–76, the temporary relief to permit hearings to be conducted via video conference maintains fair process and will continue to provide fair process consistent with Sections 6(b)(7) and 6(d) of the Act 32 while striking an appropriate balance between providing fair process and enabling the Exchange to fulfill its statutory obligations to protect investors and maintain fair and orderly markets while avoiding the COVID–19-related public health risks for hearing participants. The Exchange notes that this proposal, like SR–NYSE– 2020–76, provides only temporary relief. As proposed, the changes would be in place through October 31, 2022. As noted in SR–NYSE–2020–76 and above, the amended rules will revert back to their original state at the conclusion of the temporary relief period and, if applicable, any extension thereof. Accordingly, the proposed rule change extending this temporary relief is in the public interest and consistent with the Act’s purpose. JSPEARS on DSK121TN23PROD with NOTICES B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed temporary rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not intended to address competitive issues but is rather intended solely to extend temporary relief necessitated by the continued impacts of the COVID–19 pandemic and the related health and safety risks of conducting in-person activities. The Exchange believes that the proposed rule change will prevent unnecessary impediments to critical adjudicatory processes and its ability to fulfill its statutory obligations to protect investors and maintain fair and orderly markets that would otherwise result if the temporary amendments were to expire on July 31, 2022. 32 15 U.S.C. 78f(b)(7) & 78f(d). VerDate Sep<11>2014 17:22 Aug 16, 2022 Jkt 256001 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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 33 and Rule 19b–4(f)(6) thereunder.34 Because the 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b–4(f)(6)(iii) thereunder. A proposed rule change filed under Rule 19b–4(f)(6) 35 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),36 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange has indicated that there is a continued need to extend the temporary relief because the Exchange agrees with FINRA that the COVID–19 related health concerns necessitating this relief will not meaningfully subside by July 31, 2022.37 The Exchange also states that extending the temporary relief provided in SR–NYSE–2020–76 immediately upon filing and without a 30-day operative delay will allow the Exchange to continue critical adjudicatory and review processes so that the Exchange may continue to operate effectively and meet its critical investor protection goals, while also protecting the health and safety of hearing participants.38 The Commission 33 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 35 17 CFR 240.19b–4(f)(6). 36 17 CFR 240.19b–4(f)(6)(iii). 37 See supra Item II; see also SR–FINRA–2022– 018, 87 FR 43335, at 43336. 38 See 87 FR 43335, at 43337–38 (noting the same in granting FINRA’s request to waive the 30-day operative delay so that SR–FINRA–2022–018 would become operative immediately upon filing). 34 17 PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 50651 also notes that this proposal extends without change the temporary relief previously provided by SR–NYSE– 2020–76.39 As proposed, the temporary changes would be in place through October 31, 2022 and the amended rules will revert back to their original state at the conclusion of the temporary relief period and, if applicable, any extension thereof.40 For these reasons, the Commission believes that waiver of the 30-day operative delay for this proposal is consistent with the protection of investors and the public interest. Accordingly, the Commission hereby waives the 30-day operative delay and designates the proposal operative upon filing.41 At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B) 42 of the Act 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 rule-comments@ sec.gov. Please include File Number SR– NYSE–2022–35 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. 39 See supra note 4. supra note 5. As noted above, the Exchange states that if it requires temporary relief from the rule requirements identified in this proposal beyond October 31, 2022, it may submit a separate rule filing to extend the effectiveness of the temporary relief under these rules. 41 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule change’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 42 15 U.S.C. 78s(b)(2)(B). 40 See E:\FR\FM\17AUN1.SGM 17AUN1 50652 Federal Register / Vol. 87, No. 158 / Wednesday, August 17, 2022 / Notices All submissions should refer to File Number SR–NYSE–2022–35. 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–2022–35 and should be submitted on or before September 7, 2022. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.43 J. Matthew DeLesDernier, Deputy Secretary. [FR Doc. 2022–17663 Filed 8–16–22; 8:45 am] SECURITIES AND EXCHANGE COMMISSION JSPEARS on DSK121TN23PROD with NOTICES Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 7, Section 4 August 11, 2022. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. VerDate Sep<11>2014 17:22 Aug 16, 2022 Jkt 256001 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 and broad-based index options symbols listed within Options 7, Section 5.A).’’ 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. 1. Purpose [Release No. 34–95479; File No. SR–Phlx– 2022–33] 1 15 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change BILLING CODE 8011–01–P 43 17 notice is hereby given that on August 1, 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. Phlx proposes to amend its 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 and broad-based index options symbols listed within Options 7, Section 5.A).’’ Specifically, Phlx proposes to remove the maximum Qualified Contingent Cross (‘‘QCC’’) rebate that will be paid by the Exchange in a given month. The Exchange believes that removing this rebate will permit Phlx to compete more effectively with other options exchange for QCC Orders by incentivizing market PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 participants to transact a greater amount of QCC Orders on Phlx in order to receive a QCC Rebate.3 Today, the Exchange assesses a $.20 per contract QCC Transaction Fee for a Lead Market Maker,4 Market Maker,5 Firm 6 and Broker-Dealer.7 Customers 8 and Professionals 9 are not assessed a QCC Transaction Fee. QCC Transaction Fees apply to electronic QCC Orders 10 and Floor QCC Orders.11 Rebates are paid on all qualifying executed electronic QCC Orders and Floor QCC Orders based on the following six tier rebate schedule:12 3 Phlx will monitor the impact of this proposal on QCC Order volumes, and may in the future impose a maximum on the amount of QCC Rebate it would pay to members and member organizations that execute qualifying QCC Orders. 4 The term ‘‘Lead Market Maker’’ applies to transactions for the account of a Lead Market Maker (as defined in Options 2, Section 12(a)). A Lead Market Maker is an Exchange member who is registered as an options Lead Market Maker pursuant to Options 2, Section 12(a). An options Lead Market Maker includes a Remote Lead Market Maker which is defined as an options Lead Market Maker in one or more classes that does not have a physical presence on an Exchange floor and is approved by the Exchange pursuant to Options 2, Section 11. See Options 7, Section 1(c). The term ‘‘Floor Lead Market Maker’’ is a member who is registered as an options Lead Market Maker pursuant to Options 2, Section 12(a) and has a physical presence on the Exchange’s trading floor. See Options 8, Section 2(a)(3). 5 The term ‘‘Market Maker’’ is defined in Options 1, Section 1(b)(28) as a member of the Exchange who is registered as an options Market Maker pursuant to Options 2, Section 12(a). A Market Maker includes SQTs and RSQTs as well as Floor Market Makers. See Options 7, Section 1(c). The term ‘‘Floor Market Maker’’ is a Market Maker who is neither an SQT or an RSQT. A Floor Market Maker may provide a quote in open outcry. See Options 8, Section 2(a)(4). 6 The term ‘‘Firm’’ applies to any transaction that is identified by a member or member organization for clearing in the Firm range at The Options Clearing Corporation. See Options 7, Section 1(c). 7 The term ‘‘Broker-Dealer’’ applies to any transaction which is not subject to any of the other transaction fees applicable within a particular category. See Options 7, Section 1(c). 8 The term ‘‘Customer’’ applies to any transaction that is identified by a member or member organization for clearing in the Customer range at The Options Clearing Corporation (‘‘OCC’’) which is not for the account of a broker or dealer or for the account of a ‘‘Professional’’ (as that term is defined in Options 1, Section 1(b)(45)). See Options 7, Section 1(c). 9 The term ‘‘Professional’’ applies to transactions for the accounts of Professionals, as defined in Options 1, Section 1(b)(45) means any person or entity that (i) is not a broker or dealer in securities, and (ii) places more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). See Options 7, Section 1(c). 10 Electronic QCC Orders are described in Options 3, Section 12. 11 Floor QCC Orders are described in Options 8, Section 30(e). 12 Volume resulting from all executed electronic QCC Orders and Floor QCC Orders, including Customer-to-Customer, Customer-to-Professional, and Professional-to-Professional transactions and E:\FR\FM\17AUN1.SGM 17AUN1

Agencies

[Federal Register Volume 87, Number 158 (Wednesday, August 17, 2022)]
[Notices]
[Pages 50648-50652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-17663]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95473; File No. SR-NYSE-2022-35]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Extending the Expiration Date of the Temporary Amendments to Rules 9261 
and 9830

August 11, 2022.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that on July 29, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes extending the expiration date of the 
temporary amendments to Rules 9261 and 9830 as set forth in SR-NYSE-
2020-76 from July 31, 2022, to October 31, 2022, in conformity with 
recent changes by the Financial Industry Regulatory Authority, Inc. 
(``FINRA''). The proposed rule change would not make any changes to the 
text of NYSE Rules 9261 and 9830. 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.

[[Page 50649]]

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 extending the expiration date of the 
temporary amendments as set forth in SR-NYSE-2020-76 \4\ to Rules 9261 
(Evidence and Procedure in Hearing) and 9830 (Hearing) from July 31, 
2022, to October 31, 2022 to harmonize with recent changes by FINRA to 
extend the expiration date of the temporary amendments to its Rules 
9261 and 9830. SR-NYSE-2020-76 temporarily granted to the Chief or 
Deputy Chief Hearing Officer the authority to order that hearings be 
conducted by video conference if warranted by public health risks posed 
by in-person hearings during the ongoing COVID-19 pandemic. The 
proposed rule change would not make any changes to the text of Exchange 
Rules 9261 and 9830.\5\
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    \4\ See Securities Exchange Act Release No. 90024 (September 28, 
2020), 85 FR 62353 (October 2, 2020) (SR-NYSE-2020-76) (``SR-NYSE-
2020-76'').
    \5\ The Exchange may submit a separate rule filing to extend the 
expiration date of the proposed extension beyond October 31, 2022 if 
the Exchange requires additional temporary relief from the rule 
requirements identified in NYSE-SR-2020-76. The amended NYSE rules 
will revert back to their original state at the conclusion of the 
temporary relief period and any extension thereof.
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Background

    In 2013, the NYSE adopted disciplinary rules that are, with certain 
exceptions, substantially the same as the FINRA Rule 8000 Series and 
Rule 9000 Series, and which set forth rules for conducting 
investigations and enforcement actions.\6\ The NYSE disciplinary rules 
were implemented on July 1, 2013.\7\
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    \6\ See Securities Exchange Act Release No. 68678 (January 16, 
2013), 78 FR 5213 (January 24, 2013) (SR-NYSE-2013-02) (``2013 
Notice''), 69045 (March 5, 2013), 78 FR 15394 (March 11, 2013) (SR-
NYSE-2013-02) (``2013 Approval Order''), and 69963 (July 10, 2013), 
78 FR 42573 (July 16, 2013) (SR-NYSE-2013-49).
    \7\ See NYSE Information Memorandum 13-8 (May 24, 2013).
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    In adopting disciplinary rules modeled on FINRA's rules, the NYSE 
adopted the hearing and evidentiary processes set forth in Rule 9261 
and in Rule 9830 for hearings in matters involving temporary and 
permanent cease and desist orders under the Rule 9800 Series. As 
adopted, the text of Rule 9261 is identical to the counterpart FINRA 
rule. Rule 9830 is substantially the same as FINRA's rule, except for 
conforming and technical amendments.\8\
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    \8\ See 2013 Approval Order, 78 FR at 15394, n.7 & 15400; 2013 
Notice, 78 FR at 5228 & 5234.
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    In response to the COVID-19 global health crisis and the 
corresponding need to restrict in-person activities, on August 31, 
2020, FINRA filed with the Commission a proposed rule change for 
immediate effectiveness, SR-FINRA-2020-027, which allowed FINRA's 
Office of Hearing Officers (``OHO'') to conduct hearings, on a 
temporary basis, by video conference, if warranted by the current 
COVID-19-related public health risks posed by an in-person hearing. 
Among the rules FINRA amended were Rules 9261 and 9830.\9\
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    \9\ See Securities Exchange Act Release No. 89737 (September 2, 
2020), 85 FR 55712 (September 9, 2020) (SR-FINRA-2020-027) (the 
``August 31 FINRA Filing'').
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    Given that FINRA and OHO administers disciplinary hearings on the 
Exchange's behalf, and that the public health concerns addressed by 
FINRA's amendments apply equally to Exchange disciplinary hearings, on 
September 15, 2020, the Exchange filed to temporarily amend Rule 9261 
and Rule 9830 to permit FINRA to conduct virtual hearings on its 
behalf.\10\ In December 2020, FINRA filed a proposed rule change, SR-
FINRA-2020-042, to extend the expiration date of the temporary 
amendments in SR-FINRA-2020-027 from December 31, 2020, to April 30, 
2021.\11\ On December 22, 2020, the Exchange similarly filed to extend 
the temporary amendments to Rule 9261 and Rule 9830 to April 30, 
2021.\12\ On April 1, 2021, FINRA filed a proposed rule change, SR-
FINRA-2021-006, to extend the expiration date of the temporary rule 
amendments to, among other rules, FINRA Rule 9261 and 9830 from April 
30, 2021, to August 31, 2021.\13\ On April 20, 2021, the Exchange filed 
to extend the temporary amendments to Rule 9261 and Rule 9830 to August 
31, 2021.\14\ On August 13, 2021, FINRA filed a proposed rule change, 
SR-FINRA-2021-019, to extend the expiration date of the temporary 
amendments to, among other rules, FINRA Rule 9261 and 9830 from August 
31, 2021, to December 31, 2021.\15\ On August 27, 2021, the Exchange 
filed to extend the temporary amendments to Rule 9261 and Rule 9830 to 
December 31, 2021.\16\ On December 7, 2021, FINRA filed a proposed rule 
change, SR-FINRA-2021-031, to extend the expiration date of the 
temporary amendments to, among other rules, FINRA Rule 9261 and 9830 
from December 31, 2021, to March 31, 2022.\17\ On December 27, 2021, 
the Exchange filed to extend the temporary amendments to Rule 9261 and 
Rule 9830 to March 31, 2022, after which the temporary amendments will 
expire absent another proposed rule change filing by the Exchange.\18\ 
On March 7, 2022, FINRA filed to extend the expiration date of the 
temporary rule amendments to, among other rules, FINRA Rule 9261 and 
9830 from March 31, 2022, to July 31, 2022.\19\ On March 29, 2022, the 
Exchange filed to extend the temporary amendments to Rule 9261 and Rule 
9830 to July 31, 2022, after which the temporary amendments will expire 
absent another proposed rule change filing by the Exchange.\20\
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    \10\ See note 4, supra.
    \11\ See Securities Exchange Act Release No. 90619 (December 9, 
2020), 85 FR 81250 (December 15, 2020) (SR-FINRA-2020-042).
    \12\ See Securities Exchange Act Release No. 90821 (December 30, 
2020), 86 FR 644 (January 6, 2021) (SR-NYSE-2020-107).
    \13\ See Securities Exchange Act Release No. 91495 (April 7, 
2021), 86 FR 19306 (April 13, 2021) (SR-FINRA-2021-006).
    \14\ See Securities Exchange Act Release No. 91629 (April 22, 
2021), 86 FR 22505 (April 28, 2021) (SR-NYSE-2020-27).
    \15\ See Securities Exchange Act Release No. 92685 (August 17, 
2021), 86 FR 47169 (August 23, 2021) (SR-FINRA-2021-019).
    \16\ See Securities Exchange Act Release No. 92907 (September 9, 
2021), 86 FR 51421 (September 15, 2021) (SR-NYSE-2021-47).
    \17\ See Securities Exchange Act Release No. 93758 (December 13, 
2021), 86 FR 71695 (December 17, 2021) (SR-FINRA-2021-31).
    \18\ See Securities Exchange Act Release No. 93920 (January 6, 
2022), 87 FR 1794 (January 12, 2022) (SR-NYSE-2021-78).
    \19\ See Securities Exchange Act Release No. 94430 (March 16, 
2022), 87 FR 16262 (March 22, 2022) (SR-FINRA-2022-004).
    \20\ See Securities Exchange Act Release No. 94585 (April 1, 
2022), 87 FR 20479 (April 7, 2022) (SR-NYSE-2022-18).
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    Even though it has been more than two years since the World Health 
Organization declared COVID-19 a pandemic, FINRA has determined that 
uncertainty still remains around this disease. The continued presence 
of COVID-19 variants including the quickly emerging Omicron BA.4 and 
BA.5 subvariants, dissimilar vaccination rates throughout the United 
States, and

[[Page 50650]]

the current medium to high COVID-19 community levels in many states 
indicate that COVID-19 remains an active and real public health 
concern.\21\ Due to the uncertainty and the lack of a clear timeframe 
for a sustained and widespread abatement of COVID-19-related health 
concerns and corresponding restrictions,\22\ FINRA believes that there 
is a continued need for temporary relief beyond July 31, 2022.\23\ On 
July 8, 2022, FINRA accordingly filed to extend the expiration date of 
the temporary rule amendments to, among other rules, FINRA Rule 9261 
and 9830 from July 31, 2022, to October 31, 2022.\24\
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    \21\ See Securities Exchange Act Release No. 95281 (July 14, 
2022), 87 FR 43335 (July 20, 2022) (SR-FINRA-2022-018) (``SR-FINRA-
2022-018''). FINRA noted that, for example, there has been a notable 
upward trend in the number of daily COVID-19 cases in the United 
States since April 1, 2022. See https://covid.cdc.gov/covid-data-tracker/#trends_dailycases. In addition, on June 9, 2022, the Biden 
Administration announced its operational plan for COVID-19 
vaccinations for children under the age of five. See https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/09/fact-sheetbiden-administration-announces-operational-plan-for-covid-19-vaccinations-for-children-under-5/. See SR-FINRA-2022-018, 87 FR 
at 43335, n. 6.
    \22\ For instance, FINRA noted that the Centers for Disease 
Control and Prevention (``CDC'') recommends that people wear a mask 
in public indoor settings in areas with a high COVID-19 community 
level regardless of vaccination status or individual risk. See 
https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/about-face-coverings.html. The CDC also recommends that people wear 
a mask in indoor areas of public transportation and transportation 
hubs to protect themselves and those around them and help keep 
travel and public transportation safer for everyone. See https://www.cdc.gov/coronavirus/2019-ncov/travelers/masks-public-transportation.html. Furthermore, numerous states currently have 
mask mandates in certain settings, such as healthcare and 
correctional facilities. See SR-FINRA-2022-018, 87 FR at 43335, n.7.
    \23\ See SR-FINRA-2022-018, 87 FR 43335.
    \24\ See SR-FINRA-2022-018, 87 FR at 43335-36.
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Proposed Rule Change
    Consistent with FINRA's recent proposal, the Exchange proposes to 
extend the expiration date of the temporary rule amendments to NYSE 
Rules 9261 and 9830 as set forth in SR-NYSE-2020-76 from July 31, 2022, 
to October 31, 2022.
    As set forth in SR-FINRA 2022-018, even though it has been more 
than two years since the World Health Organization declared COVID-19 a 
pandemic, uncertainty still remains around this disease. The continued 
presence of COVID-19 variants including the quickly emerging Omicron 
BA.4 and BA.5 subvariants, dissimilar vaccination rates throughout the 
United States, and the current medium to high COVID-19 community levels 
in many states indicate that COVID-19 remains an active and real public 
health concern.\25\ Due to the uncertainty and the lack of a clear 
timeframe for a sustained and widespread abatement of COVID-19-related 
health concerns and corresponding restrictions,\26\ FINRA believes that 
there is a continued need for temporary relief beyond July 31, 
2022.\27\ FINRA accordingly proposed to extend the expiration date of 
the temporary rule amendments from July 31, 2022, to October 31, 2022.
---------------------------------------------------------------------------

    \25\ See note 21, supra.
    \26\ See note 22, supra.
    \27\ See SR-FINRA-2022-018, 87 FR at 87 FR at 43337.
---------------------------------------------------------------------------

    The Exchange proposes to similarly extend the expiration date of 
the temporary rule amendments to NYSE Rules 9261 and 9830 as set forth 
in SR-NYSE-2020-76 from July 31, 2022, to October 31, 2022. The 
Exchange agrees with FINRA that, even though it has been more than two 
years since the World Health Organization declared COVID-19 a pandemic, 
uncertainty still remains around this disease. The Exchange also agrees 
that, due to the uncertainty and the lack of a clear timeframe for a 
sustained and widespread abatement of COVID-19-related health concerns 
and corresponding restrictions, for the reasons set forth in SR-FINRA-
2022-018, there is a continued need for this temporary relief beyond 
July 31, 2022. The proposed change would permit OHO to continue to 
assess, based on critical COVID-19 data and criteria and the guidance 
of health and security consultants, whether an in-person hearing would 
compromise the health and safety of the hearing participants such that 
the hearing should proceed by video conference. As noted in SR-FINRA-
2022-018, in deciding whether to schedule a hearing by video 
conference, OHO may consider a variety of other factors in addition to 
COVID-19 trends. Similarly, as noted in SR-FINRA-2022-018, in SR-FINRA-
2020-027, FINRA provided a non-exhaustive list of other factors OHO may 
take into consideration, including a hearing participant's individual 
health concerns and access to the connectivity and technology necessary 
to participate in a video conference hearing.\28\ The Exchange believes 
that this is a reasonable procedure to continue to follow for hearings 
under Rules 9261 and 9830 chaired by a FINRA employee.
---------------------------------------------------------------------------

    \28\ See SR-FINRA-2022-018, 87 FR at 43336, n. 16.
---------------------------------------------------------------------------

    As noted below, the Exchange has filed the proposed rule change for 
immediate effectiveness and has requested that the SEC waive the 
requirement that the proposed rule change not become operative for 30 
days after the date of the filing, so the Exchange can implement the 
proposed rule change immediately.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\29\ in general, and furthers the objectives of Section 
6(b)(5),\30\ 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. Additionally, the Exchange believes 
the proposed rule change is designed to provide a fair procedure for 
the disciplining of members and persons associated with members, 
consistent with Sections 6(b)(7) and 6(d) of the Act.\31\
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    \29\ 15 U.S.C. 78f(b).
    \30\ 15 U.S.C. 78f(b)(5).
    \31\ 15 U.S.C. 78f(b)(7) & 78f(d).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change supports the 
objectives of the Act by providing greater harmonization between 
Exchange rules and FINRA rules of similar purpose, resulting in less 
burdensome and more efficient regulatory compliance. As such, the 
proposed rule change will foster cooperation and coordination with 
persons engaged in facilitating transactions in securities and will 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system.
    The proposed rule change, which extends the expiration date of the 
temporary amendments to Exchange rules consistent with FINRA's 
extension to its Rules 9261 and 9830 as set forth in SR-FINRA-2022-018, 
will permit the Exchange to continue to effectively conduct hearings 
during the COVID-19 pandemic. Given the current and frequently changing 
COVID-19 conditions and the uncertainty around when those conditions 
will see meaningful, widespread and sustained improvement, without this 
relief allowing OHO to proceed by video conference, some or all 
hearings may have to be postponed.
    The ability to conduct hearings by video conference will permit the 
adjudicatory functions of the Exchange's

[[Page 50651]]

disciplinary rules to continue unabated, thereby avoiding protracted 
delays. The Exchange believes that this is especially important in 
matters where temporary and permanent cease and desist orders are 
sought because the proposed rule change would enable those hearings to 
continue to proceed without delay, thereby enabling the Exchange to 
continue to take immediate action to stop significant, ongoing customer 
harm, to the benefit of the investing public.
    As set forth in detail in the SR-NYSE-2020-76, the temporary relief 
to permit hearings to be conducted via video conference maintains fair 
process and will continue to provide fair process consistent with 
Sections 6(b)(7) and 6(d) of the Act \32\ while striking an appropriate 
balance between providing fair process and enabling the Exchange to 
fulfill its statutory obligations to protect investors and maintain 
fair and orderly markets while avoiding the COVID-19-related public 
health risks for hearing participants. The Exchange notes that this 
proposal, like SR-NYSE-2020-76, provides only temporary relief. As 
proposed, the changes would be in place through October 31, 2022. As 
noted in SR-NYSE-2020-76 and above, the amended rules will revert back 
to their original state at the conclusion of the temporary relief 
period and, if applicable, any extension thereof.
---------------------------------------------------------------------------

    \32\ 15 U.S.C. 78f(b)(7) & 78f(d).
---------------------------------------------------------------------------

    Accordingly, the proposed rule change extending this temporary 
relief is in the public interest and consistent with the Act's purpose.

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

    The Exchange does not believe that the proposed temporary rule 
change will impose any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The proposed 
rule change is not intended to address competitive issues but is rather 
intended solely to extend temporary relief necessitated by the 
continued impacts of the COVID-19 pandemic and the related health and 
safety risks of conducting in-person activities. The Exchange believes 
that the proposed rule change will prevent unnecessary impediments to 
critical adjudicatory processes and its ability to fulfill its 
statutory obligations to protect investors and maintain fair and 
orderly markets that would otherwise result if the temporary amendments 
were to expire on July 31, 2022.

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \33\ and Rule 19b-4(f)(6) thereunder.\34\ 
Because the 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 prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \34\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \35\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\36\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Exchange has 
indicated that there is a continued need to extend the temporary relief 
because the Exchange agrees with FINRA that the COVID-19 related health 
concerns necessitating this relief will not meaningfully subside by 
July 31, 2022.\37\ The Exchange also states that extending the 
temporary relief provided in SR-NYSE-2020-76 immediately upon filing 
and without a 30-day operative delay will allow the Exchange to 
continue critical adjudicatory and review processes so that the 
Exchange may continue to operate effectively and meet its critical 
investor protection goals, while also protecting the health and safety 
of hearing participants.\38\ The Commission also notes that this 
proposal extends without change the temporary relief previously 
provided by SR-NYSE-2020-76.\39\ As proposed, the temporary changes 
would be in place through October 31, 2022 and the amended rules will 
revert back to their original state at the conclusion of the temporary 
relief period and, if applicable, any extension thereof.\40\ For these 
reasons, the Commission believes that waiver of the 30-day operative 
delay for this proposal is consistent with the protection of investors 
and the public interest. Accordingly, the Commission hereby waives the 
30-day operative delay and designates the proposal operative upon 
filing.\41\
---------------------------------------------------------------------------

    \35\ 17 CFR 240.19b-4(f)(6).
    \36\ 17 CFR 240.19b-4(f)(6)(iii).
    \37\ See supra Item II; see also SR-FINRA-2022-018, 87 FR 43335, 
at 43336.
    \38\ See 87 FR 43335, at 43337-38 (noting the same in granting 
FINRA's request to waive the 30-day operative delay so that SR-
FINRA-2022-018 would become operative immediately upon filing).
    \39\ See supra note 4.
    \40\ See supra note 5. As noted above, the Exchange states that 
if it requires temporary relief from the rule requirements 
identified in this proposal beyond October 31, 2022, it may submit a 
separate rule filing to extend the effectiveness of the temporary 
relief under these rules.
    \41\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule change'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 such 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 under 
Section 19(b)(2)(B) \42\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \42\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-2022-35 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.


[[Page 50652]]


All submissions should refer to File Number SR-NYSE-2022-35. 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-2022-35 and should be submitted on 
or before September 7, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\43\
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    \43\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-17663 Filed 8-16-22; 8:45 am]
BILLING CODE 8011-01-P
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