Self-Regulatory Organizations: Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend its Fee Schedule To Reflect Adjustments to FINRA's Registration Fees Related to the Central Registration Depository, 78136-78138 [2022-27653]
Download as PDF
<![CDATA[
78136
Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Notices
FOR FURTHER INFORMATION CONTACT:
RAILROAD RETIREMENT BOARD
Sean Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on December 12,
2022, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail,
First-Class Package Service, and Parcel
Select Service Contract 97 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2023–79, CP2023–80.
Sarah Sullivan,
Attorney, Ethics & Legal Compliance.
[FR Doc. 2022–27748 Filed 12–20–22; 8:45 am]
BILLING CODE 7710–12–P
POSTAL SERVICE
International Product Change—
International Priority Airmail,
Commercial ePacket, Priority Mail
Express International, Priority Mail
International & First-Class Package
International Service Agreement
Postal ServiceTM.
ACTION: Notice.
AGENCY:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add an
International Priority Airmail,
Commercial ePacket, Priority Mail
Express International, Priority Mail
International & First-Class Package
International Service contract to the list
of Negotiated Service Agreements in the
Competitive Product List in the Mail
Classification Schedule.
DATES: Date of notice: December 21,
2022.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Christopher C. Meyerson, (202) 268–
7820.
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on December 13,
2022, it filed with the Postal Regulatory
Commission a USPS Request to Add
International Priority Airmail,
Commercial ePacket, Priority Mail
Express International, Priority Mail
International & First-Class Package
International Service Contract 12 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2023–87 and CP2023–88.
lotter on DSK11XQN23PROD with NOTICES1
SUPPLEMENTARY INFORMATION:
Ruth B. Stevenson,
Chief Counsel, Ethics and Legal Compliance.
[FR Doc. 2022–27633 Filed 12–20–22; 8:45 am]
BILLING CODE 7710–12–P
VerDate Sep<11>2014
19:56 Dec 20, 2022
Jkt 259001
Appointment to the Senior Executive
Service Performance Review Board
Railroad Retirement Board.
Notice.
AGENCY:
ACTION:
The Railroad Retirement
Board (Board) is announcing the
alternate member of its Senior Executive
Service Performance Review Board.
DATES: This appointment is effective on
the date of publication of this notice.
FOR FURTHER INFORMATION CONTACT: Ana
Kocur, General Counsel, Railroad
Retirement Board, 844 North Rush
Street, Chicago, IL 60611–1275, (312)
751–4948.
SUPPLEMENTARY INFORMATION: Under
title 5, chapter 43, subchapter II, section
4314(c)(4) of the United States Code as
added by section 405(a) of the Civil
Service Reform Act of 1978, Pub. L. 95–
454 (5 U.S.C. 4314(c)(4)), the Board
must publish in the Federal Register a
list of persons who may be named to
serve on the Performance Review Board
that oversees the evaluation of
performance appraisals for Senior
Executive Service members of the
Railroad Retirement Board. The
alternate member of the Performance
Review Board is: Mark Blythe.
SUMMARY:
Dated: December 16, 2022.
By Authority of the Board.
Stephanie Hillyard,
Secretary to the Board.
[FR Doc. 2022–27706 Filed 12–20–22; 8:45 am]
BILLING CODE P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96506; File No. SR–IEX–
2022–13]
Self-Regulatory Organizations:
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend its
Fee Schedule To Reflect Adjustments
to FINRA’s Registration Fees Related
to the Central Registration Depository
December 15, 2022.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on December
13, 2022, the Investors Exchange LLC
(‘‘IEX’’ 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 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
Pursuant to the provisions of Section
19(b)(1) under the Act, and Rule 19b–4
thereunder, IEX is filing with the
Commission a proposed rule change
pursuant to IEX Rule 15.110(a) to amend
its Fee Schedule to reflect adjustments
to FINRA’s Registration Fees related to
the Central Registration Depository,
which will be collected by FINRA. The
Exchange has designated this proposal
as establishing or changing a due, fee, or
other charge imposed by the selfregulatory organization, whether or not
the person is a member of the selfregulatory organization, which renders
the proposed rule change effective upon
filing, pursuant to Section 19(b)(3(A)(ii)
of the Act.4
The text of the proposed rule change
is available at the Exchange’s website at
www.iextrading.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 these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization 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
IEX is proposing, pursuant to IEX
Rule 15.110(a), to amend its Fee
Schedule 5 to reflect adjustments to
FINRA’s Registration Fees and
Fingerprinting Fees in connection with
the Central Registration Depository
(‘‘CRD system’’).6 The FINRA fees are
4 15
U.S.C. 78s(b)(3)(A)(ii).
https://exchange.iex.io/resources/trading/
fee-schedule/.
6 The CRD system is the central licensing and
registration system for the U.S. securities industry.
5 See
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
E:\FR\FM\21DEN1.SGM
21DEN1
Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Notices
collected and retained by FINRA via
Web CRD for the registration of
employees of IEX Members who are not
FINRA members. Because FINRA
separately collects the CRD system fee
for any IEX Member 7 that is also a
FINRA member, 8 this fee filing only
applies to IEX Members who are not
FINRA members.
Effective January 2, 2023, FINRA
expects to increase (1) from $110 to
$155 the fee it charges for the additional
processing of each initial or amended
Form U4, Form U5 or Form BD that
includes the initial reporting,
amendment, or certification of one or
more disclosure events or proceedings;
(2) from $45 to $70 the annual fee for
each of the Member’s registered
representatives and principals for
system processing; and (3) from $15 to
$20 the fee 9 for processing and posting
to the CRD system each set of
fingerprint cards submitted
electronically by the Member.10
Accordingly, IEX is proposing to update
the corresponding fees on its Fee
Schedule to reflect the new FINRA
processing fees. IEX proposes to have
these new fees take effect starting
January 2, 2023. Because these costs are
borne by FINRA when a non-FINRA
member uses the CRD system, FINRA
will continue to collect and retain these
fees for the registration of associated
persons of IEX Members that are not
also FINRA members.
lotter on DSK11XQN23PROD with NOTICES1
2. Statutory Basis
IEX believes that the proposed rule
change is consistent with the provisions
of Section 6(b) of the Act, 11 of the Act
in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act, 12
in particular, in that it provides for the
equitable allocation of reasonable fees
and other charges among its members,
and does not unfairly discriminate
The CRD system enables individuals and firms
seeking registration with multiple states and selfregulatory organizations to do so by submitting a
single form, fingerprint card and a combined
payment of fees to FINRA. Through the CRD
system, FINRA maintains the qualification,
employment and disciplinary histories of registered
associated persons of broker dealers.
7 See IEX Rule 1.160(s).
8 IEX Members that are also FINRA members are
charged CRD system fees according to Section (4)
of Schedule A to the FINRA By-Laws.
9 This increase is in addition to a pass-through of
any other charge imposed by the United States
Department of Justice for processing each set of
fingerprints. The FBI fingerprint charge is currently
$11.25. See Securities Exchange Act Release No.
67247 (June 25, 2012) 77 FR 38866 (June 29, 2012)
(SR–FINRA–2012–030).
10 See Securities Exchange Act Release No. 90176
(October 14, 2020), 85 FR 66592 (October 20, 2020)
(SR–FINRA–2020–032) (‘‘FINRA Fee Filing’’).
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(4) and (5).
VerDate Sep<11>2014
19:56 Dec 20, 2022
Jkt 259001
between customers, issuers, brokers and
dealers. All similarly situated Members
are subject to the same fee structure, and
every Member firm must use the CRD
system for registration and disclosure.
The proposed fee is reasonable
because it is identical to the fee adopted
by FINRA for use of the Web CRD
system for disclosure and the
registration of associated persons of
FINRA members.13 Thus, the
Exchange’s Fee Schedule will reflect the
current registration rate that will be
assessed by FINRA as of January 2, 2023
for any IEX Members that are not also
FINRA members. IEX also believes the
proposed fee change is reasonable,
because, as noted in the FINRA Fee
Filing, FINRA is increasing the CRD
system fees to provide enough revenue
to support its regulatory mission.14
The Exchange believes that its
proposal to increase (1) from $110 to
$155 the fee it charges for the additional
processing of each initial or amended
Form U4, Form U5 or Form BD that
includes the initial reporting,
amendment, or certification of one or
more disclosure events or proceedings;
(2) from $45 to $70 the annual fee for
each of the Member’s registered
representatives and principals for
system processing; and (3) from $15 to
$20 the fee for processing and posting
to the CRD system each set of
fingerprint cards submitted
electronically by the Member is
equitable and not unfairly
discriminatory because the equivalent
fees will be charged by FINRA of all
users of the CRD system, whether or not
they are FINRA members.15 Therefore,
all users of the CRD system will equally
bear the cost of maintaining the
system.16
FINRA further noted its belief that the
proposed fees are reasonable because
they help to ensure the integrity of the
information in the CRD system, which
is important because the Commission,
FINRA, other self-regulatory
organizations and state securities
regulators use the CRD system to make
licensing and registration decisions,
among other things.17
B. Self-Regulatory Organization’s
Statement on Burden on Competition
IEX does not believe that the
proposed rule change will result in any
burden on competition that is not
13 See
supra note 10.
supra note 10.
15 Because the Exchange will not be collecting or
retaining these fees, therefore, the Exchange will
also not be in a position to apply them in an
inequitable or unfairly discriminatory manner.
16 See supra note 10.
17 See supra note 10.
14 See
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
78137
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
Specifically, the Exchange believes that
the proposed fees will result in the same
regulatory fees being charged to all
Members required to report information
to the CRD system and for services
performed by FINRA, regardless of
whether or not such Members are
FINRA members.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) 18 of the Act.
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
under Section 19(b)(2)(B) 19 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–
IEX–2022–13 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–IEX–2022–13. This file
number should be included on the
subject line if email is used. To help the
18 15
19 15
E:\FR\FM\21DEN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
U.S.C. 78s(b)(2)(B).
21DEN1
78138
Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Notices
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 will also be available for
inspection and copying at the IEX’s
principal office and on its internet
website at www.iextrading.com. 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–IEX–2022–13 and
should be submitted on or before
January 11, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022–27653 Filed 12–20–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96501; File No. SR–
NYSEAMER–2022–55]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Modify the NYSE
American Options Fee Schedule
lotter on DSK11XQN23PROD with NOTICES1
December 15, 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 December
9, 2022, NYSE American LLC (‘‘NYSE
20 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
19:56 Dec 20, 2022
Jkt 259001
American’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify the
NYSE American Options Fee Schedule
(‘‘Fee Schedule’’) regarding the Firm
Monthly Fee Cap. The Exchange
proposes to implement the fee change
effective December 9, 2022.4 The
proposed rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing to amend
the Fee Schedule to modify the Firm
Monthly Fee Cap. The Exchange
proposes to implement the rule change
on December 9, 2022.
The Exchange proposes to modify the
Firm Monthly Fee Cap, which is set
forth in Section I.I. of the Fee Schedule.5
Currently, a Firm’s fees associated with
Manual transactions are capped at
$100,000 per month per Firm. A Firm
currently may also qualify for a
decreased fee cap by achieving tier
4 The Exchange previously filed to amend the Fee
Schedule on December 1, 2022 (SR–NYSEAMER–
2022–54) and withdrew such filing on December 9,
2022.
5 See Fee Schedule, Section I.I., Firm Monthly
Fee Cap, available at: https://www.nyse.com/
publicdocs/nyse/markets/american-options/NYSE_
American_Options_Fee_Schedule.pdf.
PO 00000
Frm 00097
Fmt 4703
Sfmt 4703
levels in the American Customer
Engagement Program (the ‘‘ACE
Program’’).6
The Exchange proposes to raise the
Firm Monthly Fee Cap to $150,000 per
month per Firm and to eliminate the
decreased fee caps for Firms that
achieve ACE Program tiers, such that all
Firms would be eligible for a $150,000
monthly fee cap. Accordingly, the
Exchange proposes to modify Section
I.I. to replace references to a $100,000
cap with references to a $150,000 cap
and to delete the sentence and table
describing decreased fee caps offered to
Firms that qualify for ACE Program
tiers.7 The Exchange does not otherwise
propose any changes to the provisions
of the Firm Monthly Fee Cap. The
incremental service fee of $0.01 per
contract for Firm Manual transactions
other than QCC Transactions will
continue to apply once the Firm
Monthly Fee Cap has been reached, and
Royalty Fees and fees or volumes
associated with Strategy Executions will
continue to be excluded from the
calculation of fees towards the Firm
Monthly Fee Cap. Firm Facilitation
Manual trades will also continue to be
executed at the rate of $0.00 per contract
regardless of whether a Firm has
reached the Firm Monthly Fee Cap.
The Exchange believes that the
proposed change, despite increasing the
amount of the Firm Monthly Fee Cap,
would continue to incentivize Firms to
direct order flow to the Exchange to
achieve the benefits of cap on their
Manual transaction fees. The Exchange
also notes that the proposed change
would provide for a uniform fee cap
amount that would be applicable to all
Firms and sets the Firm Monthly Fee
Cap at an amount similar to the firm fee
cap established by another options
exchange.8
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,9 in general, and
furthers the objectives of Sections
6(b)(4) and (5) of the Act,10 in particular,
because it provides for the equitable
allocation of reasonable dues, fees, and
6 See id., Section I.E., American Customer
Engagement (‘‘ACE’’) Program.
7 The Exchange also proposes a conforming
change to footnote 4 in Section I.A. (Rates for
Options transactions) of the Fee Schedule, which
cross-references the Firm Monthly Fee Cap as set
forth in Section I.I. The Exchange likewise proposes
to modify footnote 4 to replace the reference to a
$100,000 cap with a reference to a $150,000 cap.
8 See, e.g., Nasdaq PHLX LLC, Options 7 Pricing
Schedule, Section 4 (providing for a ‘‘Monthly Firm
Fee Cap’’ capping firm fees at $150,000).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4) and (5).
E:\FR\FM\21DEN1.SGM
21DEN1
]]>Agencies
[Federal Register Volume 87, Number 244 (Wednesday, December 21, 2022)]
[Notices]
[Pages 78136-78138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27653]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96506; File No. SR-IEX-2022-13]
Self-Regulatory Organizations: Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend its
Fee Schedule To Reflect Adjustments to FINRA's Registration Fees
Related to the Central Registration Depository
December 15, 2022.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on December 13, 2022, the Investors Exchange LLC (``IEX''
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 self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Pursuant to the provisions of Section 19(b)(1) under the Act, and
Rule 19b-4 thereunder, IEX is filing with the Commission a proposed
rule change pursuant to IEX Rule 15.110(a) to amend its Fee Schedule to
reflect adjustments to FINRA's Registration Fees related to the Central
Registration Depository, which will be collected by FINRA. The Exchange
has designated this proposal as establishing or changing a due, fee, or
other charge imposed by the self-regulatory organization, whether or
not the person is a member of the self-regulatory organization, which
renders the proposed rule change effective upon filing, pursuant to
Section 19(b)(3(A)(ii) of the Act.\4\
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange's
website at www.iextrading.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 these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
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
IEX is proposing, pursuant to IEX Rule 15.110(a), to amend its Fee
Schedule \5\ to reflect adjustments to FINRA's Registration Fees and
Fingerprinting Fees in connection with the Central Registration
Depository (``CRD system'').\6\ The FINRA fees are
[[Page 78137]]
collected and retained by FINRA via Web CRD for the registration of
employees of IEX Members who are not FINRA members. Because FINRA
separately collects the CRD system fee for any IEX Member \7\ that is
also a FINRA member,\8\ this fee filing only applies to IEX Members who
are not FINRA members.
---------------------------------------------------------------------------
\5\ See https://exchange.iex.io/resources/trading/fee-schedule/.
\6\ The CRD system is the central licensing and registration
system for the U.S. securities industry. The CRD system enables
individuals and firms seeking registration with multiple states and
self-regulatory organizations to do so by submitting a single form,
fingerprint card and a combined payment of fees to FINRA. Through
the CRD system, FINRA maintains the qualification, employment and
disciplinary histories of registered associated persons of broker
dealers.
\7\ See IEX Rule 1.160(s).
\8\ IEX Members that are also FINRA members are charged CRD
system fees according to Section (4) of Schedule A to the FINRA By-
Laws.
---------------------------------------------------------------------------
Effective January 2, 2023, FINRA expects to increase (1) from $110
to $155 the fee it charges for the additional processing of each
initial or amended Form U4, Form U5 or Form BD that includes the
initial reporting, amendment, or certification of one or more
disclosure events or proceedings; (2) from $45 to $70 the annual fee
for each of the Member's registered representatives and principals for
system processing; and (3) from $15 to $20 the fee \9\ for processing
and posting to the CRD system each set of fingerprint cards submitted
electronically by the Member.\10\ Accordingly, IEX is proposing to
update the corresponding fees on its Fee Schedule to reflect the new
FINRA processing fees. IEX proposes to have these new fees take effect
starting January 2, 2023. Because these costs are borne by FINRA when a
non-FINRA member uses the CRD system, FINRA will continue to collect
and retain these fees for the registration of associated persons of IEX
Members that are not also FINRA members.
---------------------------------------------------------------------------
\9\ This increase is in addition to a pass-through of any other
charge imposed by the United States Department of Justice for
processing each set of fingerprints. The FBI fingerprint charge is
currently $11.25. See Securities Exchange Act Release No. 67247
(June 25, 2012) 77 FR 38866 (June 29, 2012) (SR-FINRA-2012-030).
\10\ See Securities Exchange Act Release No. 90176 (October 14,
2020), 85 FR 66592 (October 20, 2020) (SR-FINRA-2020-032) (``FINRA
Fee Filing'').
---------------------------------------------------------------------------
2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) of the Act,\11\ of the Act in general, and
furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\12\
in particular, in that it provides for the equitable allocation of
reasonable fees and other charges among its members, and does not
unfairly discriminate between customers, issuers, brokers and dealers.
All similarly situated Members are subject to the same fee structure,
and every Member firm must use the CRD system for registration and
disclosure.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The proposed fee is reasonable because it is identical to the fee
adopted by FINRA for use of the Web CRD system for disclosure and the
registration of associated persons of FINRA members.\13\ Thus, the
Exchange's Fee Schedule will reflect the current registration rate that
will be assessed by FINRA as of January 2, 2023 for any IEX Members
that are not also FINRA members. IEX also believes the proposed fee
change is reasonable, because, as noted in the FINRA Fee Filing, FINRA
is increasing the CRD system fees to provide enough revenue to support
its regulatory mission.\14\
---------------------------------------------------------------------------
\13\ See supra note 10.
\14\ See supra note 10.
---------------------------------------------------------------------------
The Exchange believes that its proposal to increase (1) from $110
to $155 the fee it charges for the additional processing of each
initial or amended Form U4, Form U5 or Form BD that includes the
initial reporting, amendment, or certification of one or more
disclosure events or proceedings; (2) from $45 to $70 the annual fee
for each of the Member's registered representatives and principals for
system processing; and (3) from $15 to $20 the fee for processing and
posting to the CRD system each set of fingerprint cards submitted
electronically by the Member is equitable and not unfairly
discriminatory because the equivalent fees will be charged by FINRA of
all users of the CRD system, whether or not they are FINRA members.\15\
Therefore, all users of the CRD system will equally bear the cost of
maintaining the system.\16\
---------------------------------------------------------------------------
\15\ Because the Exchange will not be collecting or retaining
these fees, therefore, the Exchange will also not be in a position
to apply them in an inequitable or unfairly discriminatory manner.
\16\ See supra note 10.
---------------------------------------------------------------------------
FINRA further noted its belief that the proposed fees are
reasonable because they help to ensure the integrity of the information
in the CRD system, which is important because the Commission, FINRA,
other self-regulatory organizations and state securities regulators use
the CRD system to make licensing and registration decisions, among
other things.\17\
---------------------------------------------------------------------------
\17\ See supra note 10.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
IEX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended. Specifically, the
Exchange believes that the proposed fees will result in the same
regulatory fees being charged to all Members required to report
information to the CRD system and for services performed by FINRA,
regardless of whether or not such Members are FINRA members.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) \18\ of the Act.
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------
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 under
Section 19(b)(2)(B) \19\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\19\ 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-IEX-2022-13 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-IEX-2022-13. This file
number should be included on the subject line if email is used. To help
the
[[Page 78138]]
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 will also be available for inspection
and copying at the IEX's principal office and on its internet website
at www.iextrading.com. 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-IEX-2022-13
and should be submitted on or before January 11, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------
\20\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-27653 Filed 12-20-22; 8:45 am]
BILLING CODE 8011-01-P
