Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend FINRA Fees, 72550-72552 [2022-25670]
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72550
Federal Register / Vol. 87, No. 226 / Friday, November 25, 2022 / Notices
have been previously filed with the
Commission as consistent with the Act.
The quote re-pricing proposal in
Options 3, Section 4(b)(6) and (7) will
be functionally identical to BX quote repricing in Options 3, Section 4(b)(6).65
The order re-pricing proposal in
Options 3, Section 5(c) and (d) will be
functionally identical to BX order repricing in BX Options 3, Section 5(c)
and (d).66 Also, the proposed ATR
enhancement in Options 3, Section
15(a)(2)(A) will be functionally identical
to BX ATR in BX Options 3, Section
15(b)(1).
The Exchange reiterates that the
proposed rule change is being proposed
in the context of the technology
migration to enhanced Nasdaq
functionality. As such, the Exchange
believes that this proposed rule change
is necessary to permit fair competition
among options exchanges because the
proposed rule changes will permit ISE
to re-price orders and quotes similar to
BX. Additionally, with this proposal,
ISE would be able to offer its Members
the same ATR functionality currently
available to BX Participants. The
Exchange further believes the proposed
rule change will benefit Members by
providing a more consistent technology
offering, as well as consistent rules, for
market participants on the Nasdaq
affiliated options exchanges.
The Exchange does not believe that
the proposed rule change will impose
any burden on intra-market competition
that is not necessary or appropriate in
furtherance of the purposes of the Act,
as the majority of the proposed changes
will apply to all Members. ATR allows
Members to potentially receive better
prices for their aggressive orders or
quotes as they work through the ATR
Threshold Prices and look to
accumulate additional interest at each
posted price during the Posting Periods.
Re-pricing affords Members the ability
to obtain the best price offered among
the various options markets while
continuing to be consistent with the
Options Order Protection and Locked/
Crossed Market Plan, as discussed
above. The ability to leverage these
mechanisms to achieve better prices for
market participants will drive
competition from Members to provide
tighter markets and more liquidity in
order to participate in the trading
opportunities while still being bound by
reasonable risk protections.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 67 and
subparagraph (f)(6) of Rule 19b–4
thereunder.68
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ISE–2022–25 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–ISE–2022–25. This file
67 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
68 17
65 See
supra note 13.
re-pricing rule changes impact the
following rule provisions: Options 2, Section 10;
Options 3, Section 8(j)(6)(A); Options 3, Section
10(c)(1)(B), (C) and (D)(i)–(iii); Options 3, Section
11(b)(1) and (d)(1); and Options 3, Section 13(b)(1)
and (2).
66 The
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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 such
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–ISE–2022–25 and should be
submitted on or before December 16,
2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.69
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022–25672 Filed 11–23–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96360; File No. SR–Phlx–
2022–47]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend FINRA Fees
November 18, 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 November
14, 2022, Nasdaq PHLX LLC (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities
69 17
CFR 200.30–3(a)(12).
15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1
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Federal Register / Vol. 87, No. 226 / Friday, November 25, 2022 / Notices
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III, below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Phlx’s Pricing Schedule at Options 7,
Section 9, Other Member Fees, to reflect
adjustments to FINRA Registration Fees
and Fingerprinting Fees.3
While the changes proposed herein
are effective upon filing, the Exchange
has designated the additional processing
of each initial or amended Form U4,
Form U5 or Form BD and electronic
Fingerprint Processing Fees to become
operative on January 2, 2023.
Additionally, the Exchange designates
that the FINRA Annual System
Processing Fee Assessed only during
Renewals become operative on January
2, 2024.4 The amendments to the paper
Fingerprint Fees are immediately
effective.
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
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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.
3 This rule change impacts FINRA fees for
members who trade equity and options products on
Phlx. Equity 7, Section 4.B. indicates that a list of
fees that will be collected and retained by FINRA
via the Web CRD registration system for the
registration of associated persons of Exchange
members that are not also FINRA members is
available within Options 7, Section 9C.
4 See Securities Exchange Act Release No. 90176
(October 14, 2020), 85 FR 66592 (October 20, 2020)
(SR–FINRA–2020–032) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change
To Adjust FINRA Fees To Provide Sustainable
Funding for FINRA’s Regulatory Mission).
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
This proposal amends Phlx’s Pricing
Schedule at Options 7, Section 9, Other
Member Fees, to reflect adjustments to
FINRA Registration Fees and
Fingerprinting Fees.5 The FINRA fees
are collected and retained by FINRA via
Web CRD for the registration of
employees of Phlx members and
member organizations that are not
FINRA members (‘‘Non-FINRA
members’’). The Exchange is merely
listing these fees on its Pricing Schedule
at Phlx Options 7, Section 9C. The
Exchange does not collect or retain
these fees.
The Exchange proposes to amend: (1)
the $110 fee for the additional
processing of each initial or amended
Form U4, Form U5 or Form BD that
includes the initial reporting,
amendment, or certification or one or
more disclosure events or proceedings
to $155; (2) the $45 FINRA Annual
System Processing Fee Assessed only
during Renewals to $70; and (3) the $15
Second Submission (Electronic)
Fingerprint Processing Fee to $20. Each
of these fees are listed within Phlx
Options 7, Section 9C. These
amendments are being made in
accordance with a FINRA rule change to
adjust to its fees.6
The Exchange also proposes to amend
the following Fingerprint Fees: (1) the
$29.50 Initial Submission (Electronic)
fee to $31.25; 7 (2) the $44.50 Initial
Submission (Paper) fee to $41.25; 8 (3)
the $29.50 Third Submission
(Electronic) fee to $31.25; 9 and (4) the
$44.50 Third Submission (Paper) fee to
$41.25.10 Specifically, today, the FBI
5 FINRA operates Web CRD, the central licensing
and registration system for the U.S. securities
industry. FINRA uses Web CRD to maintain the
qualification, employment and disciplinary
histories of registered associated persons of brokerdealers.
6 See note 4. FINRA noted in its rule change that
it was adjusting its fees to provide sustainable
funding for FINRA’s regulatory mission.
7 This fee includes a $20.00 FINRA fee and
$11.25 FBI fee). See https://www.finra.org/
registration-exams-ce/classic-crd/fingerprints/
fingerprint-fees.
8 This fee includes a $30 FINRA Fee and a $11.25
FBI Fee. See https://www.finra.org/registrationexams-ce/classic-crd/fingerprints/fingerprint-fees.
9 This fee includes a $20.00 FINRA fee and
$11.25 FBI fee). See https://www.finra.org/
registration-exams-ce/classic-crd/fingerprints/
fingerprint-fees.
10 This fee includes a $30 FINRA Fee and a
$11.25 FBI Fee. See https://www.finra.org/
registration-exams-ce/classic-crd/fingerprints/
fingerprint-fees.
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72551
fingerprint charge is $11.25 11 and the
FINRA electronic Fingerprint Fee will
increase from $15 to $20 in 2023.12
While FINRA did not amend the paper
Fingerprint Fee, previously the FBI Fee
was reduced from $14.50 to $11.25.13
The paper Fingerprint Fees are not
currently reflecting the amount assessed
by FINRA. The amendment to the paper
Fingerprint Fees will conform these fees
with those of FINRA.
The FINRA Web CRD Fees are userbased and there is no distinction in the
cost incurred by FINRA if the user is a
FINRA member or a Non-FINRA
member. Accordingly, the proposed fees
mirror those currently assessed by
FINRA.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with section 6(b)
of the Act,14 in general, and furthers the
objectives of sections 6(b)(4) and 6(b)(5)
of the Act,15 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among members and issuers and other
persons using any facility, and is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Exchange believes it is reasonable
to increase: (1) the $110 fee for the
additional processing of each initial or
amended Form U4, Form U5 or Form
BD that includes the initial reporting,
amendment, or certification or one or
more disclosure events or proceedings
to $155; (2) the $45 FINRA Annual
System Processing Fee Assessed only
during Renewals to $70; and (3) the
electronic Fingerprint Fees from $15 to
$20 in accordance with an adjustment to
FINRA’s fees 16 because the proposed
fees are identical to those adopted by
FINRA for use of Web CRD for
disclosure and the registration of FINRA
members and their associated persons.
These costs are borne by FINRA when
a Non-FINRA member uses Web CRD.
The Exchange’s rule text will reflect the
current registration and electronic
fingerprint rates that will be assessed by
11 See Securities Exchange Act Release No. 67247
(June 25, 2012) 77 FR 38866 (June 29, 2012) (SR–
FINRA–2012–030) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change To Amend
Sections 4 and 6 of Schedule A to the FINRA ByLaws Regarding Fees Relating to the Central
Registration Depository) (‘‘2012 Rule Change’’)
12 See note 4.
13 See 2012 Rule Change at note 6. The FBI does
not charge its fee on a second fingerprint
transaction when it identifies the first set of
fingerprints as illegible for the same individual.
14 15 U.S.C. 78f(b).
15 15 U.S.C. 78f(b)(4) and (5).
16 The $20 FINRA Fee is in addition to the $11.25
FBI Fee except for the second fingerprint
transaction.
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Federal Register / Vol. 87, No. 226 / Friday, November 25, 2022 / Notices
FINRA as of January 2, 2023 for the
additional processing of each initial or
amended Form U4, Form U5 or Form
BD and Second Submission (Electronic)
Fingerprint Processing Fee and the
registration rates that will be assessed
by FINRA as of January 2, 2024 for the
FINRA Annual System Processing Fee
Assessed only during Renewals.17
The Exchange believes it is reasonable
to correct the paper Fingerprint Fees to
reflect the reduced FBI Fee of $11.25.18
The amendments to the paper
Fingerprint Fees will provide all Phlx
members and member organizations
with the correct Fingerprint Fees.
The Exchange believes it is equitable
and not unfairly discriminatory to
increase: (1) the $110 fee for the
additional processing of each initial or
amended Form U4, Form U5 or Form
BD that includes the initial reporting,
amendment, or certification or one or
more disclosure events or proceedings
to $155; (2) the $45 FINRA Annual
System Processing Fee Assessed only
during Renewals to $70; and (3) the
electronic Fingerprint Fees from $15 to
$20 in accordance with an adjustment to
FINRA’s fees 19 because the Exchange
will not be collecting or retaining these
fees, therefore, the Exchange will not be
in a position to apply them in an
inequitable or unfairly discriminatory
manner. Similarly, the Exchange
believes it is equitable and not unfairly
discriminatory to correct the paper
Fingerprint Fees to reflect the reduced
FBI Fee of $11.25 20 because the
Exchange will not be collecting or
retaining these fees, therefore, the
Exchange will not be in a position to
apply them in an inequitable or unfairly
discriminatory manner.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
The Exchange believes that its
proposal to increase: (1) the $110 fee for
the additional processing of each initial
or amended Form U4, Form U5 or Form
BD that includes the initial reporting,
amendment, or certification or one or
See note 4.
18 See 2012 Rule Change at note 6. The FBI does
not charge its fee on a second fingerprint
transaction when it identifies the first set of
fingerprints as illegible for the same individual.
19 The $20 FINRA Fee is in addition to the $11.25
FBI Fee except for the second fingerprint
transaction.
20 See 2012 Rule Change at note 6. The FBI does
not charge its fee on a second fingerprint
transaction when it identifies the first set of
fingerprints as illegible for the same individual.
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more disclosure events or proceedings
to $155; (2) the $45 FINRA Annual
System Processing Fee Assessed only
during Renewals to $70; and (3) the
electronic Fingerprint Fees from $15 to
$20 in accordance with an adjustment to
FINRA’s fees 21 does not impose an
undue burden on competition because
the Exchange will not be collecting or
retaining these fees, therefore, the
Exchange will not be in a position to
apply them in an inequitable or unfairly
discriminatory manner. The proposal
will reflect the fees that will be assessed
by FINRA to all members who register
or require fingerprints as of January 2,
2023 and January 2, 2024, respectively.
Similarly, the Exchange believes it
does not impose an undue burden on
competition to correct the paper
Fingerprint Fees to reflect the reduced
FBI Fee of $11.25 because the Exchange
will not be collecting or retaining these
fees, therefore, the Exchange will not be
in a position to apply them in an
inequitable or unfairly discriminatory
manner.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to section
19(b)(3)(A)(ii) of the Act.22
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: (i) necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
Phlx–2022–47 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–Phlx–2022–47. 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–Phlx–2022–47 and should
be submitted on or before December 16,
2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022–25670 Filed 11–23–22; 8:45 am]
The $20 FINRA Fee is in addition to the $11.25
FBI Fee except for the second fingerprint
transaction.
22 15 U.S.C. 78s(b)(3)(A)(ii).
21
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BILLING CODE 8011–01–P
23
17 CFR 200.30–3(a)(12).
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Agencies
[Federal Register Volume 87, Number 226 (Friday, November 25, 2022)]
[Notices]
[Pages 72550-72552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25670]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96360; File No. SR-Phlx-2022-47]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend FINRA Fees
November 18, 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 November 14, 2022, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities
[[Page 72551]]
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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Phlx's Pricing Schedule at Options
7, Section 9, Other Member Fees, to reflect adjustments to FINRA
Registration Fees and Fingerprinting Fees.\3\
---------------------------------------------------------------------------
\3\ This rule change impacts FINRA fees for members who trade
equity and options products on Phlx. Equity 7, Section 4.B.
indicates that a list of fees that will be collected and retained by
FINRA via the Web CRD registration system for the registration of
associated persons of Exchange members that are not also FINRA
members is available within Options 7, Section 9C.
---------------------------------------------------------------------------
While the changes proposed herein are effective upon filing, the
Exchange has designated the additional processing of each initial or
amended Form U4, Form U5 or Form BD and electronic Fingerprint
Processing Fees to become operative on January 2, 2023. Additionally,
the Exchange designates that the FINRA Annual System Processing Fee
Assessed only during Renewals become operative on January 2, 2024.\4\
The amendments to the paper Fingerprint Fees are immediately effective.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 90176 (October 14,
2020), 85 FR 66592 (October 20, 2020) (SR-FINRA-2020-032) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Adjust FINRA Fees To Provide Sustainable Funding for FINRA's
Regulatory Mission).
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/phlx/rules, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
This proposal amends Phlx's Pricing Schedule at Options 7, Section
9, Other Member Fees, to reflect adjustments to FINRA Registration Fees
and Fingerprinting Fees.\5\ The FINRA fees are collected and retained
by FINRA via Web CRD for the registration of employees of Phlx members
and member organizations that are not FINRA members (``Non-FINRA
members''). The Exchange is merely listing these fees on its Pricing
Schedule at Phlx Options 7, Section 9C. The Exchange does not collect
or retain these fees.
---------------------------------------------------------------------------
\5\ FINRA operates Web CRD, the central licensing and
registration system for the U.S. securities industry. FINRA uses Web
CRD to maintain the qualification, employment and disciplinary
histories of registered associated persons of broker-dealers.
---------------------------------------------------------------------------
The Exchange proposes to amend: (1) the $110 fee for the additional
processing of each initial or amended Form U4, Form U5 or Form BD that
includes the initial reporting, amendment, or certification or one or
more disclosure events or proceedings to $155; (2) the $45 FINRA Annual
System Processing Fee Assessed only during Renewals to $70; and (3) the
$15 Second Submission (Electronic) Fingerprint Processing Fee to $20.
Each of these fees are listed within Phlx Options 7, Section 9C. These
amendments are being made in accordance with a FINRA rule change to
adjust to its fees.\6\
---------------------------------------------------------------------------
\6\ See note 4. FINRA noted in its rule change that it was
adjusting its fees to provide sustainable funding for FINRA's
regulatory mission.
---------------------------------------------------------------------------
The Exchange also proposes to amend the following Fingerprint Fees:
(1) the $29.50 Initial Submission (Electronic) fee to $31.25; \7\ (2)
the $44.50 Initial Submission (Paper) fee to $41.25; \8\ (3) the $29.50
Third Submission (Electronic) fee to $31.25; \9\ and (4) the $44.50
Third Submission (Paper) fee to $41.25.\10\ Specifically, today, the
FBI fingerprint charge is $11.25 \11\ and the FINRA electronic
Fingerprint Fee will increase from $15 to $20 in 2023.\12\ While FINRA
did not amend the paper Fingerprint Fee, previously the FBI Fee was
reduced from $14.50 to $11.25.\13\ The paper Fingerprint Fees are not
currently reflecting the amount assessed by FINRA. The amendment to the
paper Fingerprint Fees will conform these fees with those of FINRA.
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\7\ This fee includes a $20.00 FINRA fee and $11.25 FBI fee).
See https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees.
\8\ This fee includes a $30 FINRA Fee and a $11.25 FBI Fee. See
https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees.
\9\ This fee includes a $20.00 FINRA fee and $11.25 FBI fee).
See https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees.
\10\ This fee includes a $30 FINRA Fee and a $11.25 FBI Fee. See
https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees.
\11\ See Securities Exchange Act Release No. 67247 (June 25,
2012) 77 FR 38866 (June 29, 2012) (SR-FINRA-2012-030) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Sections 4 and 6 of Schedule A to the FINRA By-Laws Regarding Fees
Relating to the Central Registration Depository) (``2012 Rule
Change'')
\12\ See note 4.
\13\ See 2012 Rule Change at note 6. The FBI does not charge its
fee on a second fingerprint transaction when it identifies the first
set of fingerprints as illegible for the same individual.
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The FINRA Web CRD Fees are user-based and there is no distinction
in the cost incurred by FINRA if the user is a FINRA member or a Non-
FINRA member. Accordingly, the proposed fees mirror those currently
assessed by FINRA.
2. Statutory Basis
The Exchange believes that its proposal is consistent with section
6(b) of the Act,\14\ in general, and furthers the objectives of
sections 6(b)(4) and 6(b)(5) of the Act,\15\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and issuers and other persons using any
facility, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\14\ 15 U.S.C. 78f(b).
\15\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes it is reasonable to increase: (1) the $110
fee for the additional processing of each initial or amended Form U4,
Form U5 or Form BD that includes the initial reporting, amendment, or
certification or one or more disclosure events or proceedings to $155;
(2) the $45 FINRA Annual System Processing Fee Assessed only during
Renewals to $70; and (3) the electronic Fingerprint Fees from $15 to
$20 in accordance with an adjustment to FINRA's fees \16\ because the
proposed fees are identical to those adopted by FINRA for use of Web
CRD for disclosure and the registration of FINRA members and their
associated persons.
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\16\ The $20 FINRA Fee is in addition to the $11.25 FBI Fee
except for the second fingerprint transaction.
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These costs are borne by FINRA when a Non-FINRA member uses Web
CRD. The Exchange's rule text will reflect the current registration and
electronic fingerprint rates that will be assessed by
[[Page 72552]]
FINRA as of January 2, 2023 for the additional processing of each
initial or amended Form U4, Form U5 or Form BD and Second Submission
(Electronic) Fingerprint Processing Fee and the registration rates that
will be assessed by FINRA as of January 2, 2024 for the FINRA Annual
System Processing Fee Assessed only during Renewals.\17\
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\17\ See note 4.
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The Exchange believes it is reasonable to correct the paper
Fingerprint Fees to reflect the reduced FBI Fee of $11.25.\18\ The
amendments to the paper Fingerprint Fees will provide all Phlx members
and member organizations with the correct Fingerprint Fees.
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\18\ See 2012 Rule Change at note 6. The FBI does not charge its
fee on a second fingerprint transaction when it identifies the first
set of fingerprints as illegible for the same individual.
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The Exchange believes it is equitable and not unfairly
discriminatory to increase: (1) the $110 fee for the additional
processing of each initial or amended Form U4, Form U5 or Form BD that
includes the initial reporting, amendment, or certification or one or
more disclosure events or proceedings to $155; (2) the $45 FINRA Annual
System Processing Fee Assessed only during Renewals to $70; and (3) the
electronic Fingerprint Fees from $15 to $20 in accordance with an
adjustment to FINRA's fees \19\ because the Exchange will not be
collecting or retaining these fees, therefore, the Exchange will not be
in a position to apply them in an inequitable or unfairly
discriminatory manner. Similarly, the Exchange believes it is equitable
and not unfairly discriminatory to correct the paper Fingerprint Fees
to reflect the reduced FBI Fee of $11.25 \20\ because the Exchange will
not be collecting or retaining these fees, therefore, the Exchange will
not be in a position to apply them in an inequitable or unfairly
discriminatory manner.
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\19\ The $20 FINRA Fee is in addition to the $11.25 FBI Fee
except for the second fingerprint transaction.
\20\ See 2012 Rule Change at note 6. The FBI does not charge its
fee on a second fingerprint transaction when it identifies the first
set of fingerprints as illegible for the same individual.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange believes that its proposal to increase: (1) the $110
fee for the additional processing of each initial or amended Form U4,
Form U5 or Form BD that includes the initial reporting, amendment, or
certification or one or more disclosure events or proceedings to $155;
(2) the $45 FINRA Annual System Processing Fee Assessed only during
Renewals to $70; and (3) the electronic Fingerprint Fees from $15 to
$20 in accordance with an adjustment to FINRA's fees \21\ does not
impose an undue burden on competition because the Exchange will not be
collecting or retaining these fees, therefore, the Exchange will not be
in a position to apply them in an inequitable or unfairly
discriminatory manner. The proposal will reflect the fees that will be
assessed by FINRA to all members who register or require fingerprints
as of January 2, 2023 and January 2, 2024, respectively.
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\21\ The $20 FINRA Fee is in addition to the $11.25 FBI Fee
except for the second fingerprint transaction.
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Similarly, the Exchange believes it does not impose an undue burden
on competition to correct the paper Fingerprint Fees to reflect the
reduced FBI Fee of $11.25 because the Exchange will not be collecting
or retaining these fees, therefore, the Exchange will not be in a
position to apply them in an inequitable or unfairly discriminatory
manner.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to section
19(b)(3)(A)(ii) of the Act.\22\
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\22\ 15 U.S.C. 78s(b)(3)(A)(ii).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-Phlx-2022-47 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-Phlx-2022-47. 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-Phlx-2022-47 and
should be submitted on or before December 16, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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\23\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-25670 Filed 11-23-22; 8:45 am]
BILLING CODE 8011-01-P