Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fee Schedule, 4260-4262 [2023-01274]
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4260
Federal Register / Vol. 88, No. 15 / Tuesday, January 24, 2023 / Notices
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–NYSEARCA–2023–05 and
should be submitted on or before
February 14, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.39
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–01267 Filed 1–23–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96699; File No. SR–FINRA–
2022–031]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Designation
of a Longer Period for Commission
Action on a Proposed Rule Change To
Adopt FINRA Rules 6151 (Disclosure of
Order Routing Information for NMS
Securities) and 6470 (Disclosure of
Order Routing Information for OTC
Equity Securities)
tkelley on DSK125TN23PROD with NOTICES
On November 16, 2022, the Financial
Industry Regulatory Authority Inc.
(‘‘FINRA’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change to adopt rules
regarding the disclosure of order routing
information for NMS securities and OTC
equity securities. The proposed rule
change was published for comment in
the Federal Register on December 6,
2022.3
39 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 96415
(November 30, 2022), 87 FR 74672 (December 6,
2022). Comments on the proposed rule change are
available at: https://www.sec.gov/comments/srfinra-2022-031/srfinra2022031.htm.
19:17 Jan 23, 2023
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–01275 Filed 1–23–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96698; File No. SR–
NYSEARCA–2023–03]
January 18, 2023.
VerDate Sep<11>2014
Section 19(b)(2) of the Act 4 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding, or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is January 20,
2023. The Commission is extending this
45-day time period.
The Commission finds it appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the proposed rule change
and the comment received. Accordingly,
the Commission, pursuant to Section
19(b)(2) of the Act,5 designates March 6,
2023 as the date by which the
Commission shall either approve or
disapprove, or institute proceedings to
determine whether to disapprove, the
proposed rule change (File No. SR–
FINRA–2022–031).
Jkt 259001
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the NYSE Arca
Options Fee Schedule
January 18, 2023.
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 January
3, 2023, NYSE Arca, Inc. (‘‘NYSE Arca’’
or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
4 15
U.S.C. 78s(b)(2).
5 Id.
6 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
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 amend its
NYSE Arca Options Fees and Charges
(the ‘‘Fee Schedule’’) with respect to
certain regulatory fees related to the
Central Registration Depository (‘‘CRD’’
or ‘‘CRD system’’), which are collected
by the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’). The
Exchange proposes to implement the fee
change on January 3, 2023. 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 Exchange proposes to amend the
Fee Schedule with respect to certain
regulatory fees collected by FINRA for
use of CRD.4 The Exchange proposes to
implement the fee changes effective
January 3, 2023.
FINRA collects and retains certain
regulatory fees via CRD for the
registration of associated persons of
Exchange OTP Holders and OTP Firms
that are not FINRA members (‘‘Non4 CRD 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.
E:\FR\FM\24JAN1.SGM
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Federal Register / Vol. 88, No. 15 / Tuesday, January 24, 2023 / Notices
FINRA OTP Holders’’).5 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 NonFINRA OTP Holder.
FINRA recently amended two of the
fees assessed for use of the CRD
system.6 Accordingly, the Exchange
proposes to amend the Fee Schedule to
mirror the fees assessed by FINRA,
which will be implemented
concurrently with the amended FINRA
fee as of January 2023.7 Specifically, the
Exchange proposes to amend the Fee
Schedule to modify the fee charged to
Non-FINRA OTP Holders for 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
from $110 to $155 8 and the fee for
processing and posting to the CRD
system each set of fingerprints
submitted electronically to FINRA, plus
any other charge that may be imposed
by the U.S. Department of Justice for
processing each set of fingerprints, from
$15 to $20.9
The Exchange notes that the proposed
change is not otherwise intended to
address any other issues surrounding
regulatory fees, and the Exchange is not
aware of any problems that OTP Holders
would have in complying with the
proposed change.
tkelley on DSK125TN23PROD with NOTICES
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,10 in general, and
furthers the objectives of Section
5 The Exchange originally adopted fees for use of
the CRD system in 2005 and amended those fees in
2013 and 2022. See Securities Exchange Act Release
No. 51641 (May 2, 2005), 70 FR 24155 (May 6,
2005) (SR–PCX–2005–49); Securities Exchange Act
Release No.68590 (January 4, 2013), 78 FR 2470
(January 11, 2013) (SR–NYSEArca–2012–145);
Securities Exchange Act Release No. 93899 (January
5, 2022), 87 FR 1455 (January 11, 2022) (SR–
NYSEArca–2021–106). While the Exchange lists
these fees in its Fee Schedule, it does not collect
or retain these fees.
6 See Securities Exchange Act Release No. 90176
(October 14, 2020), 85 FR 66592 (October 20, 2020)
(SR–FINRA–2020–032).
7 The Exchange notes that it has only adopted the
CRD system fees charged by FINRA to Non-FINRA
OTP Holders when such fees are applicable. In this
regard, certain FINRA CRD system fees and
requirements are specific to FINRA members, but
do not apply to NYSE Arca-only OTP Holders. NonFINRA OTP Holders have been charged CRD system
fees since 2005. See note 5, supra. OTP Holders that
are also FINRA members are charged CRD system
fees according to Section 4 of Schedule A to the
FINRA By-Laws.
8 See Section (4)(b)(3) of Schedule A to the FINRA
By-laws.
9 See Section (4)(b)(4) of Schedule A to the FINRA
By-laws.
10 15 U.S.C. 78f(b).
VerDate Sep<11>2014
19:17 Jan 23, 2023
Jkt 259001
6(b)(4) 11 of the Act, in particular, in that
it is designed to provide for the
equitable allocation of reasonable dues,
fees, and other charges. The Exchange
also believes that the proposed rule
change is consistent with Section 6(b)(5)
of the Act,12 in that it is designed to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest and is not designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes that the
proposed fee change is reasonable
because the fee will be identical to that
adopted by FINRA for use of the CRD
system to submit an 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
and the posting to CRD each set of
fingerprints submitted electronically to
FINRA. The costs of operating and
improving the CRD system are similarly
borne by FINRA when a Non-FINRA
OTP Holder uses the CRD system;
accordingly, the fees collected for such
use should, as proposed by the
Exchange, mirror the fees assessed to
FINRA members. In addition, as FINRA
noted in amending its fees, it believes
that its proposed pricing structure is
reasonable and correlates fees with the
components that drive its regulatory
costs to the extent feasible. The
Exchange further believes that the
change is reasonable because it will
provide greater specificity regarding the
CRD system fees that are applicable to
Non-FINRA OTP Holders. All similarly
situated OTP Holders are subject to the
same fee structure, and every OTP
Holder must use the CRD system for
registration and disclosure.
Accordingly, the Exchange believes that
the fees collected for such use should
likewise increase in lockstep with the
fees assessed to FINRA members, as is
proposed by the Exchange.
The Exchange also believes that the
proposed fee change provides for the
equitable allocation of reasonable fees
and other charges, and does not unfairly
discriminate between customers,
issuers, brokers, and dealers. The fee
applies equally to all individuals and
firms required to report information the
CRD system, and the proposed change
will result in the same regulatory fees
being charged to all OTP Holders
required to report information to CRD
and for services performed by FINRA
regardless of whether such OTP Holders
are FINRA members. Accordingly, the
Exchange believes that the fee collected
for such use should increase in lockstep
with the fee adopted by FINRA as of
January 2023, as is proposed by the
Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,13 the Exchange believes that the
proposed rule change would not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Specifically,
the Exchange believes that the proposed
change will reflect fees that will be
assessed by FINRA as of January 2023
and will thus result in the same
regulatory fees being charged to all OTP
Holders required to report information
to the CRD system and for services
performed by FINRA, regardless of
whether or not such OTP Holders are
FINRA members.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 14 of the Act and
subparagraph (f)(2) of Rule 19b–4 15
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 16 of the Act to
determine whether the proposed rule
13 See
15 U.S.C. 78f(b)(8).
U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f)(2).
16 15 U.S.C. 78s(b)(2)(B).
14 15
11 15
12 15
PO 00000
U.S.C. 78f(b)(4).
U.S.C. 78f(b)(5).
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Federal Register / Vol. 88, No. 15 / Tuesday, January 24, 2023 / Notices
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:
• 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–
NYSEARCA–2023–03 on the subject
line.
Paper Comments
tkelley on DSK125TN23PROD with NOTICES
• 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–NYSEARCA–2023–03. 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–NYSEARCA–2023–03, and
should be submitted on or before
February 14, 2023.
19:17 Jan 23, 2023
[FR Doc. 2023–01274 Filed 1–23–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–389, OMB Control No.
3235–0444]
Electronic Comments
VerDate Sep<11>2014
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Sherry R. Haywood,
Assistant Secretary.
Jkt 259001
Submission for OMB Review;
Comment Request; Extension: Rule
10b–10
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rule 10b–10 (17 CFR 240.10b–10) under
the Securities and Exchange Act of 1934
(15 U.S.C. 78a et seq.).
Rule 10b–10 requires broker-dealers
to convey specified information to
customers regarding their securities
transactions. This information includes
the date and time of the transaction, the
identity and number of shares bought or
sold, and whether the broker-dealer acts
as agent for the customer or as principal
for its own account. Depending on
whether the broker-dealer acts as agent
or principal, Rule 10b–10 requires the
disclosure of commissions, as well as
mark-up and mark-down information.
For transactions in debt securities, Rule
10b–10 requires the disclosure of
redemption and yield information. Rule
10b–10 potentially applies to all of the
approximately 3,531 firms registered
with the Commission that effect
transactions for or with customers.
Based on information provided by
registered broker-dealers to the
Commission in FOCUS Reports, the
Commission staff estimates that on
average, registered broker-dealers
process approximately 27,151,388,510
order tickets per year for transactions for
or with customers. Each order ticket
representing a transaction effected for or
with a customer generally results in one
confirmation. Therefore, the
Commission staff estimates that
17 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00112
Fmt 4703
Sfmt 4703
approximately 27,151,388,510
confirmations are sent to customers
annually. The confirmations required by
Rule 10b–10 are generally processed
through automated systems. It takes
approximately 30 seconds to generate
and send a confirmation. Accordingly,
the Commission staff estimates that
broker-dealers spend approximately
226,261,571 hours per year complying
with Rule 10b–10 (27,151,388,510 × .5
÷ 60).
The number of confirmations sent and
the cost of sending each confirmation
varies from firm to firm. Smaller firms
generally send fewer confirmations than
larger firms because they effect fewer
transactions. The Commission staff
estimates the cost of producing and
sending a paper confirmation, including
postage, to be approximately 67 cents.
The Commission staff also estimates
that the cost of producing and sending
a wholly electronic confirmation is
approximately 40 cents. Based on
informal discussions with industry
participants, as well as representations
made in requests for exemptive and noaction letters relating to Rule 10b–10,
the staff estimates that broker-dealers
used electronic confirmations for
approximately 35 percent of
transactions. Based on these
calculations, Commission staff estimates
that 17,648,402,532 paper confirmations
are mailed each year at a cost of
$11,824,429,696. Commission staff also
estimates that 9,502,985,979 wholly
electronic confirmations are sent each
year at a cost of $3,801,194,392.
Accordingly, Commission staff
estimates that the total annual cost
associated with generating and
delivering to investors the information
required under Rule 10b–10 is
approximately $15,625,624,088.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent by
February 23, 2023 to (i)
www.reginfo.gov/public/do/PRAMain
and (ii) David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549, or by sending an email to:
PRA_Mailbox@sec.gov.
E:\FR\FM\24JAN1.SGM
24JAN1
]]>Agencies
[Federal Register Volume 88, Number 15 (Tuesday, January 24, 2023)]
[Notices]
[Pages 4260-4262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01274]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96698; File No. SR-NYSEARCA-2023-03]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE
Arca Options Fee Schedule
January 18, 2023.
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 January 3, 2023, NYSE Arca, Inc. (``NYSE Arca'' 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.
---------------------------------------------------------------------------
\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
The Exchange proposes to amend its NYSE Arca Options Fees and
Charges (the ``Fee Schedule'') with respect to certain regulatory fees
related to the Central Registration Depository (``CRD'' or ``CRD
system''), which are collected by the Financial Industry Regulatory
Authority, Inc. (``FINRA''). The Exchange proposes to implement the fee
change on January 3, 2023. 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 Exchange proposes to amend the Fee Schedule with respect to
certain regulatory fees collected by FINRA for use of CRD.\4\ The
Exchange proposes to implement the fee changes effective January 3,
2023.
---------------------------------------------------------------------------
\4\ CRD 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.
---------------------------------------------------------------------------
FINRA collects and retains certain regulatory fees via CRD for the
registration of associated persons of Exchange OTP Holders and OTP
Firms that are not FINRA members (``Non-
[[Page 4261]]
FINRA OTP Holders'').\5\ 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 OTP Holder.
---------------------------------------------------------------------------
\5\ The Exchange originally adopted fees for use of the CRD
system in 2005 and amended those fees in 2013 and 2022. See
Securities Exchange Act Release No. 51641 (May 2, 2005), 70 FR 24155
(May 6, 2005) (SR-PCX-2005-49); Securities Exchange Act Release
No.68590 (January 4, 2013), 78 FR 2470 (January 11, 2013) (SR-
NYSEArca-2012-145); Securities Exchange Act Release No. 93899
(January 5, 2022), 87 FR 1455 (January 11, 2022) (SR-NYSEArca-2021-
106). While the Exchange lists these fees in its Fee Schedule, it
does not collect or retain these fees.
---------------------------------------------------------------------------
FINRA recently amended two of the fees assessed for use of the CRD
system.\6\ Accordingly, the Exchange proposes to amend the Fee Schedule
to mirror the fees assessed by FINRA, which will be implemented
concurrently with the amended FINRA fee as of January 2023.\7\
Specifically, the Exchange proposes to amend the Fee Schedule to modify
the fee charged to Non-FINRA OTP Holders for 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 from $110 to $155 \8\ and the fee for
processing and posting to the CRD system each set of fingerprints
submitted electronically to FINRA, plus any other charge that may be
imposed by the U.S. Department of Justice for processing each set of
fingerprints, from $15 to $20.\9\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 90176 (October 14,
2020), 85 FR 66592 (October 20, 2020) (SR-FINRA-2020-032).
\7\ The Exchange notes that it has only adopted the CRD system
fees charged by FINRA to Non-FINRA OTP Holders when such fees are
applicable. In this regard, certain FINRA CRD system fees and
requirements are specific to FINRA members, but do not apply to NYSE
Arca-only OTP Holders. Non-FINRA OTP Holders have been charged CRD
system fees since 2005. See note 5, supra. OTP Holders that are also
FINRA members are charged CRD system fees according to Section 4 of
Schedule A to the FINRA By-Laws.
\8\ See Section (4)(b)(3) of Schedule A to the FINRA By-laws.
\9\ See Section (4)(b)(4) of Schedule A to the FINRA By-laws.
---------------------------------------------------------------------------
The Exchange notes that the proposed change is not otherwise
intended to address any other issues surrounding regulatory fees, and
the Exchange is not aware of any problems that OTP Holders would have
in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\10\ in general, and furthers the
objectives of Section 6(b)(4) \11\ of the Act, in particular, in that
it is designed to provide for the equitable allocation of reasonable
dues, fees, and other charges. The Exchange also believes that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\12\
in that it is designed to promote just and equitable principles of
trade, to foster cooperation and coordination with persons engaged in
regulating, clearing, settling, processing information with respect to,
and facilitating transactions in securities, to remove impediments to
and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4).
\12\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed fee change is reasonable
because the fee will be identical to that adopted by FINRA for use of
the CRD system to submit an 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 and the posting to CRD
each set of fingerprints submitted electronically to FINRA. The costs
of operating and improving the CRD system are similarly borne by FINRA
when a Non-FINRA OTP Holder uses the CRD system; accordingly, the fees
collected for such use should, as proposed by the Exchange, mirror the
fees assessed to FINRA members. In addition, as FINRA noted in amending
its fees, it believes that its proposed pricing structure is reasonable
and correlates fees with the components that drive its regulatory costs
to the extent feasible. The Exchange further believes that the change
is reasonable because it will provide greater specificity regarding the
CRD system fees that are applicable to Non-FINRA OTP Holders. All
similarly situated OTP Holders are subject to the same fee structure,
and every OTP Holder must use the CRD system for registration and
disclosure. Accordingly, the Exchange believes that the fees collected
for such use should likewise increase in lockstep with the fees
assessed to FINRA members, as is proposed by the Exchange.
The Exchange also believes that the proposed fee change provides
for the equitable allocation of reasonable fees and other charges, and
does not unfairly discriminate between customers, issuers, brokers, and
dealers. The fee applies equally to all individuals and firms required
to report information the CRD system, and the proposed change will
result in the same regulatory fees being charged to all OTP Holders
required to report information to CRD and for services performed by
FINRA regardless of whether such OTP Holders are FINRA members.
Accordingly, the Exchange believes that the fee collected for such use
should increase in lockstep with the fee adopted by FINRA as of January
2023, as is proposed by the Exchange.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\13\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Specifically, the Exchange believes that the
proposed change will reflect fees that will be assessed by FINRA as of
January 2023 and will thus result in the same regulatory fees being
charged to all OTP Holders required to report information to the CRD
system and for services performed by FINRA, regardless of whether or
not such OTP Holders are FINRA members.
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\13\ See 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \14\ of the Act and subparagraph (f)(2) of Rule
19b-4 \15\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed
rule
[[Page 4262]]
change should be approved or disapproved.
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\16\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSEARCA-2023-03 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-NYSEARCA-2023-03. 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-NYSEARCA-2023-03, and should be
submitted on or before February 14, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-01274 Filed 1-23-23; 8:45 am]
BILLING CODE 8011-01-P
