Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend the NYSE American Equities Price List, 4872-4874 [2023-01403]
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Federal Register / Vol. 88, No. 16 / Wednesday, January 25, 2023 / Notices
internalization groupings as those
proposed herein.
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
Because the foregoing proposed rule
change does not: (i) significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 11 and Rule 19b–4(f)(6) 12
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),14 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposed
rule change may become operative upon
filing. The Exchange requested the
waiver because it would enable the
Exchange to compete with other
exchanges that have recently amended
their rules to expand the levels at which
orders may be grouped for STP
purposes. The Exchange states that at
least one such competitor exchange
plans to introduce similar capabilities to
market participants as early as January
9, 2023. The Exchange also states that it
is currently working on technological
solutions to meet this competition and
to make similar offerings available to
market participants as soon as possible.
The Exchange expects to begin rolling
out this functionality in less than 30
days from the date of filing, and thus
requests waiver of the operative delay in
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
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12 17
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16:55 Jan 24, 2023
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order to promptly meet market
competition. For these reasons, and
because the proposed rule change does
not raise any novel regulatory issues,
the Commission believes that waiving
the 30-day operative delay is consistent
with the protection of investors and the
public interest. Therefore, the
Commission hereby waives the
operative delay and designates the
proposal operative upon filing.15
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–NYSECHX–2023–05 and
should be submitted on or before
February 15, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–01406 Filed 1–24–23; 8:45 am]
BILLING CODE 8011–01–P
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–
NYSECHX–2023–05 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–NYSECHX–2023–05. 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
15 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96711; File No. SR–
NYSEAMER–2023–06]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change To Amend the NYSE American
Equities Price List
January 19, 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
12, 2023, NYSE American LLC (‘‘NYSE
American’’ 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.
16 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
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Federal Register / Vol. 88, No. 16 / Wednesday, January 25, 2023 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
NYSE American Equities Price List (the
‘‘Price List’’) 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 12, 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
lotter on DSK11XQN23PROD with NOTICES1
1. Purpose
The Exchange proposes to amend the
Price List with respect to certain
regulatory fees collected by FINRA for
use of CRD.4 The Exchange proposes to
implement the fee changes effective
January 12, 2023.5
FINRA collects and retains certain
regulatory fees via CRD for the
registration of associated persons of
Exchange ETP Holders that are not
FINRA members (‘‘Non-FINRA ETP
Holders’’).6 CRD fees are user-based,
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.
5 The Exchange originally filed to amend the
Price List on January 3, 2023 (SR–NYSEAmer–
2023–01). On January 12, 2023, SR–NYSEAmer–
2023–01 was withdrawn and replaced by this filing.
6 The Exchange originally adopted fees for use of
the CRD system in 2003 and amended those fees in
2013 and 2022. See Securities Exchange Act Release
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16:55 Jan 24, 2023
Jkt 259001
and there is no distinction in the cost
incurred by FINRA if the user is a
FINRA member or a Non-FINRA ETP
Holders.
FINRA recently amended two of the
fees assessed for use of the CRD
system.7 Accordingly, the Exchange
proposes to amend the Price List to
mirror the fees assessed by FINRA,
which will be implemented
concurrently with the amended FINRA
fee as of January 2023.8 Specifically, the
Exchange proposes to amend the Price
List to modify the fee charged to NonFINRA ETP 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 9 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 $20.10
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 ETP 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,11 in general, and
furthers the objectives of Section
6(b)(4) 12 of the Act, in particular, in that
it is designed to provide for the
equitable allocation of reasonable dues,
No. 48066 (June 19, 2003), 68 FR 38409 (June 27,
2003) (SR–Amex–2003–49); Securities Exchange
Act Release No. 68630 (January 11, 2013), 78 FR
6152 (January 29, 2013) (SR–NYSEMKT–2013–01);
Securities Exchange Act Release No. 93902 (January
5, 2022), 87 FR 1461 (January 11, 2022) (SR–
NYSEAmer–2021–47). While the Exchange lists
these fees in its Price List, it does not collect or
retain these fees.
7 See Securities Exchange Act Release No. 90176
(October 14, 2020), 85 FR 66592 (October 20, 2020)
(SR–FINRA–2020–032).
8 The Exchange notes that it has only adopted the
CRD system fees charged by FINRA to Non-FINRA
ETP 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 American-only ETP Holders.
Non-FINRA ETP Holders have been charged CRD
system fees since 2003. See note 5, supra. ETP
Holders that are also FINRA members are charged
CRD system fees according to Section 4 of Schedule
A to the FINRA By-Laws.
9 See Section (4)(b)(3) of Schedule A to the FINRA
By-laws.
10 See Section (4)(b)(4) of Schedule A to the
FINRA By-laws.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(4).
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Frm 00075
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4873
fees, and other charges. The Exchange
also believes that the proposed rule
change is consistent with Section 6(b)(5)
of the Act,13 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 as of January 2023
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 ETP 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 ETP Holders.
All similarly situated ETP Holders are
subject to the same fee structure, and
every ETP 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 ETP Holders
required to report information to CRD
13 15
E:\FR\FM\25JAN1.SGM
U.S.C. 78f(b)(5).
25JAN1
4874
Federal Register / Vol. 88, No. 16 / Wednesday, January 25, 2023 / Notices
and for services performed by FINRA
regardless of whether such ETP 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,14 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 ETP
Holders required to report information
to the CRD system and for services
performed by FINRA, regardless of
whether or not such ETP 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 has become
effective upon filing pursuant to Section
19(b)(3)(A) 15 of the Act and paragraph
(f) thereunder. 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.
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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 rule-comments@
sec.gov. Please include File Number SR–
NYSEAMER–2023–06 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–NYSEAMER–2023–06. 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–NYSEAMER–2023–06 and
should be submitted on or before
February 15, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–01403 Filed 1–24–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
Notice is hereby given,
pursuant to the provisions of the
Government in the Sunshine Act, Public
Law 94–409, that the Securities and
TIME AND DATE:
15 U.S.C. 78f(b)(8).
15 15 U.S.C. 78s(b)(3)(A).
16:55 Jan 24, 2023
Dated: January 23, 2023.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2023–01579 Filed 1–23–23; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96714; File No. SR–NYSE–
2023–06]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
7.31(i)(2)
January 19, 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
12, 2023, New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
14 See
VerDate Sep<11>2014
Exchange Commission Small Business
Capital Formation Advisory Committee
will hold a public meeting on Tuesday,
February 7, 2023, at the Commission’s
headquarters and via videoconference.
PLACE: The meeting will be conducted
by remote means (videoconference) and
at the Commission’s headquarters, 100 F
Street NE, Washington, DC 20549, in
Multi-Purpose Room LL–006. Members
of the public may watch the webcast of
the meeting on the Commission’s
website at www.sec.gov.
STATUS: The meeting will begin at 10:00
a.m. (ET) and will be open to the public
via webcast on the Commission’s
website at www.sec.gov. This Sunshine
Act notice is being issued because a
majority of the Commission may attend
the meeting.
MATTER TO BE CONSIDERED: The agenda
for the meeting includes matters relating
to rules and regulations affecting small
and emerging businesses and their
investors under the federal securities
laws.
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Authority: 5 U.S.C. 552b.
16 17
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PO 00000
CFR 200.30–3(a)(12).
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25JAN1
]]>Agencies
[Federal Register Volume 88, Number 16 (Wednesday, January 25, 2023)]
[Notices]
[Pages 4872-4874]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01403]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96711; File No. SR-NYSEAMER-2023-06]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Change To Amend the NYSE
American Equities Price List
January 19, 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 12, 2023, NYSE American LLC (``NYSE American'' 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.
---------------------------------------------------------------------------
[[Page 4873]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the NYSE American Equities Price
List (the ``Price List'') 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 12, 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 Price List with respect to
certain regulatory fees collected by FINRA for use of CRD.\4\ The
Exchange proposes to implement the fee changes effective January 12,
2023.\5\
---------------------------------------------------------------------------
\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.
\5\ The Exchange originally filed to amend the Price List on
January 3, 2023 (SR-NYSEAmer-2023-01). On January 12, 2023, SR-
NYSEAmer-2023-01 was withdrawn and replaced by this filing.
---------------------------------------------------------------------------
FINRA collects and retains certain regulatory fees via CRD for the
registration of associated persons of Exchange ETP Holders that are not
FINRA members (``Non-FINRA ETP Holders'').\6\ 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 ETP Holders.
---------------------------------------------------------------------------
\6\ The Exchange originally adopted fees for use of the CRD
system in 2003 and amended those fees in 2013 and 2022. See
Securities Exchange Act Release No. 48066 (June 19, 2003), 68 FR
38409 (June 27, 2003) (SR-Amex-2003-49); Securities Exchange Act
Release No. 68630 (January 11, 2013), 78 FR 6152 (January 29, 2013)
(SR-NYSEMKT-2013-01); Securities Exchange Act Release No. 93902
(January 5, 2022), 87 FR 1461 (January 11, 2022) (SR-NYSEAmer-2021-
47). While the Exchange lists these fees in its Price List, it does
not collect or retain these fees.
---------------------------------------------------------------------------
FINRA recently amended two of the fees assessed for use of the CRD
system.\7\ Accordingly, the Exchange proposes to amend the Price List
to mirror the fees assessed by FINRA, which will be implemented
concurrently with the amended FINRA fee as of January 2023.\8\
Specifically, the Exchange proposes to amend the Price List to modify
the fee charged to Non-FINRA ETP 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 \9\ 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.\10\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 90176 (October 14,
2020), 85 FR 66592 (October 20, 2020) (SR-FINRA-2020-032).
\8\ The Exchange notes that it has only adopted the CRD system
fees charged by FINRA to Non-FINRA ETP 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
American-only ETP Holders. Non-FINRA ETP Holders have been charged
CRD system fees since 2003. See note 5, supra. ETP Holders that are
also FINRA members are charged CRD system fees according to Section
4 of Schedule A to the FINRA By-Laws.
\9\ See Section (4)(b)(3) of Schedule A to the FINRA By-laws.
\10\ 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 ETP 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,\11\ in general, and furthers the
objectives of Section 6(b)(4) \12\ 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,\13\
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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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(4).
\13\ 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 as of
January 2023 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 ETP 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 ETP Holders. All similarly situated ETP Holders
are subject to the same fee structure, and every ETP 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 ETP Holders
required to report information to CRD
[[Page 4874]]
and for services performed by FINRA regardless of whether such ETP
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,\14\ 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 ETP Holders required to report information to the CRD
system and for services performed by FINRA, regardless of whether or
not such ETP Holders are FINRA members.
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\14\ 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 has become effective upon filing pursuant
to Section 19(b)(3)(A) \15\ of the Act and paragraph (f) thereunder. 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.
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\15\ 15 U.S.C. 78s(b)(3)(A).
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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-NYSEAMER-2023-06 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-NYSEAMER-2023-06. 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-NYSEAMER-2023-06 and should be submitted
on or before February 15, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-01403 Filed 1-24-23; 8:45 am]
BILLING CODE 8011-01-P
