Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend FINRA Fees, 77660-77662 [2022-27377]

Download as PDF 77660 Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Notices 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–NYSECHX–2022–31 and should be submitted on or before January 9, 2023. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.22 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2022–27383 Filed 12–16–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–96481; File No. SR–GEMX– 2022–12] Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend FINRA Fees December 13, 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 December 7, 2022, Nasdaq GEMX, LLC (‘‘GEMX’’ 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. tkelley on DSK125TN23PROD with NOTICE I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend GEMX’s Pricing Schedule at Options 7, Section 5, Legal & Regulatory, to reflect adjustments to FINRA Registration Fees and Fingerprinting Fees. 22 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 19:38 Dec 16, 2022 Jkt 259001 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, 2024.3 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/gemx/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 Options 7, Section 5, Legal & Regulatory, to reflect adjustments to FINRA Registration Fees and Fingerprinting Fees.4 The FINRA fees are collected and retained by FINRA via Web CRD for the registration of employees of GEMX Members that are not FINRA members (‘‘Non-FINRA members’’). The Exchange is merely listing these fees on its Pricing Schedule. 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 3 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). 4 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. PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 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 GEMX Options 7, Section 5. These amendments are being made in accordance with a FINRA rule change to adjust to its fees.5 The Exchange also proposes to amend the following Fingerprint Fees: (1) the $29.50 Initial Submission (Electronic) fee to $31.25; 6 (2) the $44.50 Initial Submission (Paper) fee to $41.25; 7 (3) the $29.50 Third Submission (Electronic) fee to $31.25; 8 and (4) the $44.50 Third Submission (Paper) fee to $41.25.9 Specifically, today, the FBI fingerprint charge is $11.25 10 and the FINRA electronic Fingerprint Fee will increase from $15 to $20 in 2023.11 While FINRA did not amend the paper Fingerprint Fee, previously the FBI Fee was reduced from $14.50 to $11.25.12 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) 5 See note 4. FINRA noted in its rule change that it was adjusting its fees to provide sustainable funding for FINRA’s regulatory mission. 6 This fee includes a $20.00 FINRA fee and $11.25 FBI fee). See https://www.finra.org/registrationexams-ce/classic-crd/fingerprints/fingerprint-fees. 7 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. 8 This fee includes a $20.00 FINRA fee and $11.25 FBI fee). See https://www.finra.org/registrationexams-ce/classic-crd/fingerprints/fingerprint-fees. 9 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. 10 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’’) 11 See note 4. 12 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. E:\FR\FM\19DEN1.SGM 19DEN1 Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Notices of the Act,13 in general, and furthers the objectives of sections 6(b)(4) and 6(b)(5) of the Act,14 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 15 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 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.16 The Exchange believes it is reasonable to correct the paper Fingerprint Fees to reflect the reduced FBI Fee of $11.25.17 The amendments to the paper Fingerprint Fees will provide all GEMX Members 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 13 15 U.S.C. 78f(b). U.S.C. 78f(b)(4) and (5). 15 The $20 FINRA Fee is in addition to the $11.25 FBI Fee except for the second fingerprint transaction. 16 See note 4. 17 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. tkelley on DSK125TN23PROD with NOTICE 14 15 VerDate Sep<11>2014 19:38 Dec 16, 2022 Jkt 259001 electronic Fingerprint Fees from $15 to $20 in accordance with an adjustment to FINRA’s fees 18 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 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. 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 20 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. 18 The $20 FINRA Fee is in addition to the $11.25 FBI Fee except for the second fingerprint transaction. 19 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. 20 The $20 FINRA Fee is in addition to the $11.25 FBI Fee except for the second fingerprint transaction. PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 77661 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.21 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– GEMX–2022–12 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–GEMX–2022–12. 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 21 15 E:\FR\FM\19DEN1.SGM U.S.C. 78s(b)(3)(A)(ii). 19DEN1 77662 Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Notices 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–GEMX–2022–12 and should be submitted on or before January 9, 2023. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.22 Sherry R. Haywood, Assistant Secretary. The Exchange proposes to amend Rule 7.19 pertaining to pre-trade risk controls to make additional pre-trade risk controls available to Entering Firms. The proposed rule change is available on the Exchange’s website at www.nyse.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change [FR Doc. 2022–27377 Filed 12–16–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION 1. Purpose [Release No. 34–96487; File No. SR– NYSENAT–2022–26] The Exchange proposes to amend Rule 7.19 pertaining to pre-trade risk controls to make additional pre-trade risk controls available to Entering Firms. Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.19 December 13, 2022. tkelley on DSK125TN23PROD with NOTICE I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change 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 December 8, 2022, NYSE National, Inc. (‘‘NYSE National’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the selfregulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 22 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 19:38 Dec 16, 2022 Jkt 259001 Background and Purpose In 2020, in order to assist ETP Holders’ efforts to manage their risk, the Exchange amended its rules to add Rule 7.19 (Pre-Trade Risk Controls),4 which established a set of pre-trade risk controls by which Entering Firms and their designated Clearing Firms 5 could set credit limits and other pre-trade risk controls for an Entering Firm’s trading on the Exchange and authorize the Exchange to take action if those credit limits or other pre-trade risk controls are exceeded. Specifically, the Exchange added a Gross Credit Risk Limit, a Single Order Maximum Notional Value Risk Limit, and a Single Order Maximum Quantity Risk Limit 6 (collectively, the ‘‘2020 Risk Controls’’). 4 See Securities Exchange Act Release No. 88905 (May 19, 2020), 85 FR 31582 (May 26, 2020) (SR– NYSENAT–2020–17). 5 The terms ‘‘Entering Firm’’ and ‘‘Clearing Firm’’ are defined in Rule 7.19. 6 The terms ‘‘Gross Credit Risk Limit,’’ ‘‘Single Order Maximum Notional Value Risk Limit, and ‘‘Single Order Maximum Quantity Risk Limit’’ are defined in Rule 7.19. PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 The Exchange now proposes to expand the list of the optional pre-trade risk controls available to Entering Firms by adding several additional pre-trade risk controls that would provide Entering Firms with enhanced abilities to manage their risk with respect to orders on the Exchange. Like the 2020 Risk Controls, use of the pre-trade risk controls proposed herein is optional, but all orders on the Exchange would pass through these risk checks. As such, an Entering Firm that does not choose to set limits pursuant to the new proposed pre-trade risk controls would not achieve any latency advantage with respect to its trading activity on the Exchange. In addition, the Exchange expects that any latency added by the pre-trade risk controls would be de minimis. The proposed new pre-trade risk controls proposed herein would be available to be set by Entering Firms only. Clearing Firms designated by an Entering Firm would continue to be able to view all pre-trade risk controls set by the Entering Firm and to set the 2020 Risk Controls on the Entering Firm’s behalf. Proposed Amendment to Rule 7.19 To accomplish this rule change, the Exchange proposes to amend paragraph (a) to include a new paragraph (a)(3) that would define the term ‘‘Pre-Trade Risk Controls’’ as all of the risk controls listed in proposed paragraph (b), inclusive of the 2020 Risk Controls and the proposed new risk controls. In proposed paragraph (b), the Exchange proposes to list all Pre-Trade Risk Controls available to Entering Firms, which would include the existing 2020 Risk Controls and the proposed new controls. The Exchange proposes to move the definition of Gross Credit Risk Limit from current paragraph (a)(5) to proposed paragraph (b)(1), with no substantive change. Next, the Exchange proposes to add paragraph (b)(2), which would list all available ‘‘Single Order Risk Controls.’’ The Exchange proposes to move the definitions of Single Order Maximum Notional Value Risk Limit and Single Order Maximum Quantity Risk Limit from current paragraphs (a)(3) and (a)(4) to proposed paragraph (b)(2)(A), with no substantive change. Next, the Exchange proposes to add paragraphs (b)(2)(B) through (b)(2)(F) to enumerate the proposed new Single Order Risk Controls, as follows: (B) controls related to the price of an order (including percentage-based and dollar-based controls); (C) controls related to the order types or modifiers that can be utilized; E:\FR\FM\19DEN1.SGM 19DEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 87, Number 242 (Monday, December 19, 2022)]
[Notices]
[Pages 77660-77662]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27377]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96481; File No. SR-GEMX-2022-12]


Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend FINRA Fees

December 13, 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 December 7, 2022, Nasdaq GEMX, LLC (``GEMX'' 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 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 to amend GEMX's Pricing Schedule at Options 
7, Section 5, Legal & Regulatory, to reflect adjustments to FINRA 
Registration Fees and Fingerprinting Fees.
    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.\3\ 
The amendments to the paper Fingerprint Fees are immediately effective.
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    \3\ 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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    The text of the proposed rule change is available on the Exchange's 
website at https://listingcenter.nasdaq.com/rulebook/gemx/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 Options 7, Section 5, Legal & Regulatory, to 
reflect adjustments to FINRA Registration Fees and Fingerprinting 
Fees.\4\ The FINRA fees are collected and retained by FINRA via Web CRD 
for the registration of employees of GEMX Members that are not FINRA 
members (``Non-FINRA members''). The Exchange is merely listing these 
fees on its Pricing Schedule. The Exchange does not collect or retain 
these fees.
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    \4\ 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.
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    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 GEMX Options 7, Section 5. These 
amendments are being made in accordance with a FINRA rule change to 
adjust to its fees.\5\
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    \5\ See note 4. FINRA noted in its rule change that it was 
adjusting its fees to provide sustainable funding for FINRA's 
regulatory mission.
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    The Exchange also proposes to amend the following Fingerprint Fees: 
(1) the $29.50 Initial Submission (Electronic) fee to $31.25; \6\ (2) 
the $44.50 Initial Submission (Paper) fee to $41.25; \7\ (3) the $29.50 
Third Submission (Electronic) fee to $31.25; \8\ and (4) the $44.50 
Third Submission (Paper) fee to $41.25.\9\ Specifically, today, the FBI 
fingerprint charge is $11.25 \10\ and the FINRA electronic Fingerprint 
Fee will increase from $15 to $20 in 2023.\11\ While FINRA did not 
amend the paper Fingerprint Fee, previously the FBI Fee was reduced 
from $14.50 to $11.25.\12\ 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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    \6\ 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.
    \7\ 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.
    \8\ 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.
    \9\ 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.
    \10\ 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'')
    \11\ See note 4.
    \12\ 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)

[[Page 77661]]

of the Act,\13\ in general, and furthers the objectives of sections 
6(b)(4) and 6(b)(5) of the Act,\14\ 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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    \13\ 15 U.S.C. 78f(b).
    \14\ 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 \15\ 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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    \15\ 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 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.\16\
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    \16\ 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.\17\ The 
amendments to the paper Fingerprint Fees will provide all GEMX Members 
with the correct Fingerprint Fees.
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    \17\ 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 \18\ 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 \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.
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    \18\ The $20 FINRA Fee is in addition to the $11.25 FBI Fee 
except for the second fingerprint transaction.
    \19\ 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 \20\ 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.
---------------------------------------------------------------------------

    \20\ The $20 FINRA Fee is in addition to the $11.25 FBI Fee 
except for the second fingerprint transaction.
---------------------------------------------------------------------------

    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.\21\
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    \21\ 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-GEMX-2022-12 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-GEMX-2022-12. 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

[[Page 77662]]

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-GEMX-2022-12 and should be 
submitted on or before January 9, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-27377 Filed 12-16-22; 8:45 am]
BILLING CODE 8011-01-P

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