Sunshine Act Meetings, 43639-43640 [2023-14636]
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Federal Register / Vol. 88, No. 130 / Monday, July 10, 2023 / Notices
IV. Solicitation of Comments
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. As noted
above, Nasdaq faces competition in the
market for listing services, and
competes, in part, by offering valuable
services to companies. Nasdaq believes
that it is reasonable to offer
complimentary services to attract and
retain listings as part of this
competition. The proposed rule changes
reflect that competition, but do not
impose any burden on the competition
with other exchanges. Other exchanges
can also offer similar services to
companies, thereby increasing
competition to the benefit of those
companies and their shareholders.
Further, all similarly situated
companies are eligible for the same
package of services. While the proposed
services will be available only to
Eligible Switches with a market
capitalization of $5 billion or more,
Nasdaq does not believe that it is
unfairly discriminatory to offer different
services based on a company’s market
capitalization given that larger
companies generally will need more and
different ESG services, and that those
issuers will likely bring greater future
value to Nasdaq by switching to its
market than would other issuers.
Accordingly, Nasdaq does not believe
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Exchange Act, as
amended.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
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III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission shall: (a) by order
approve or disapprove such proposed
rule change, or (b) institute proceedings
to determine whether the proposed rule
change should be disapproved.
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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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Vanessa A. Countryman,
Secretary.
[FR Doc. 2023–14443 Filed 7–7–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–
NASDAQ–2023–017 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–NASDAQ–2023–017. 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–NASDAQ–2023–017 and should be
submitted on or before July 31, 2023.
PO 00000
Sunshine Act Meetings
2:00 p.m. on Thursday,
July 13, 2023.
PLACE: The meeting will be held via
remote means and/or at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to
the public.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
In the event that the time, date, or
location of this meeting changes, an
announcement of the change, along with
the new time, date, and/or place of the
meeting will be posted on the
Commission’s website at https://
www.sec.gov.
The General Counsel of the
Commission, or her designee, has
certified that, in her opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
The subject matter of the closed
meeting will consist of the following
topics:
TIME AND DATE:
Institution and settlement of injunctive
actions;
Institution and settlement of administrative
proceedings;
Resolution of litigation claims; and
Other matters relating to examinations and
enforcement proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting agenda items that
may consist of adjudicatory,
examination, litigation, or regulatory
matters.
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Authority: 5 U.S.C. 552b.
24 17
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43640
Federal Register / Vol. 88, No. 130 / Monday, July 10, 2023 / Notices
Dated: July 6, 2023.
Sherry R. Haywood,
Assistant Secretary.
Section 19(b)(2)(B) of the Exchange
Act,9 to determine whether to approve
or disapprove the proposed rule change,
as modified by Partial Amendment No.
1 (hereinafter defined as ‘‘Proposed Rule
Change’’).
[FR Doc. 2023–14636 Filed 7–6–23; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97832; File No. SR–OCC–
2023–003]
Self-Regulatory Organizations;
Options Clearing Corporation; Order
Instituting Proceedings To Determine
Whether To Approve or Disapprove a
Proposed Rule Change, as Modified by
Partial Amendment No. 1, Concerning
Clearing Member Cybersecurity
Obligations
July 3, 2023.
I. Introduction
On March 21, 2023, the Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change SR–OCC–2023–
003 pursuant to Section 19(b) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) 1 and Rule 19b–4 2
thereunder to amend certain provisions
in OCC’s Rules relating to each Clearing
Member’s obligation to address a
’’Security Incident’’ (i.e., the occurrence
of a cyber-related disruption or
intrusion) of that Clearing Member.3
The proposed rule change was
published for public comment in the
Federal Register on April 5, 2023.4 The
Commission has received comments
regarding the proposed rule change.5
On May 18, 2023, pursuant to Section
19(b)(2) of the Exchange Act,6 the
Commission designated a longer period
within which to approve, disapprove, or
institute proceedings to determine
whether to approve or disapprove the
proposed rule change.7 On May 24,
2023, OCC filed Partial Amendment No.
1 to the proposed rule change.8 This
order institutes proceedings, pursuant to
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Notice of Filing infra note 4, at 88 FR at
20195.
4 Securities Exchange Act Release No. 97225
(Mar. 30, 2023), 88 FR 20195 (Apr. 5, 2023) (File
No. SR–OCC–2023–003) (‘‘Notice of Filing’’).
5 Comments on the proposed rule change are
available at https://www.sec.gov/comments/sr-occ2023-003/srocc2023003.htm.
6 15 U.S.C. 78s(b)(2).
7 Securities Exchange Act Release No. 97525 (May
18, 2023), 88 FR 33655 (May 24, 2023) (File No. SR–
OCC–2023–003).
8 Securities Exchange Act Release No. 97602 (May
26, 2023), 88 FR 36351 (Jun. 2, 2023) (File No. SR–
OCC–2023–003) (‘‘Partial Amendment No. 1’’).
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II. Summary of the Proposed Rule
Change
Currently, the only OCC Rule
governing a Clearing Member’s
cybersecurity obligations to OCC is Rule
219, titled ‘‘Cybersecurity
Confirmation.’’ It requires Clearing
Members and applicants for clearing
membership to submit to OCC a form
called the ‘‘Cybersecurity Confirmation’’
at least every two years or as part of its
application materials, respectively.
Through the form, Clearing Members
and applicants confirm that they
maintain a comprehensive cybersecurity
program that meets certain criteria (e.g.,
it is approved by senior management,
reviewed and updated periodically,
protects the segment of the Clearing
Member’s or applicant’s system that
interacts with OCC, establishes a
process for the Clearing Member to
remediate cyber issues, etc.). However,
current Rule 219 does not require
Clearing Members to notify OCC if they
experience a cybersecurity incident that
could impact OCC or otherwise address
OCC’s processes, or the Clearing
Member’s obligations with respect to
OCC, in the event a Clearing Member
experiences a cybersecurity incident.
The substantive changes in the
proposed rule change would be the
addition of two new subsections—(d)
and (e)—titled ‘‘Occurrence of a
Security Incident’’ and ‘‘Procedures for
Connecting Following a Security
Incident,’’ respectively. New subsection
(d) would require a Clearing Member
that experiences a Security Incident (as
defined in the Rule) to immediately
notify OCC of the Security Incident. It
would also specify that OCC may take
actions it deems reasonably necessary to
mitigate any effects on its operations
following a Security Incident. New
subsection (e) would require a Clearing
Member wishing to reconnect its
systems to OCC’s systems to provide
OCC with a new form, titled
‘‘Reconnection Attestation,’’ that
describes the Security Incident and
attests to certain security requirements,
as well as an associated checklist, titled
‘‘Reconnection Checklist,’’ that
describes the affected Clearing
Member’s remediation efforts and other
key information.
OCC submitted Partial Amendment
No. 1 in response to comments received
PO 00000
on the scope of the proposed definition
of Security Incident and potential
conflicts with other existing and
proposed Commission rules.10 OCC also
submitted Partial Amendment No. 1 in
response to comments about (i) the
requirement that Clearing Members
provide immediate notice of a Security
Incident to OCC, (ii) the standards OCC
would apply when determining whether
to disconnect a Clearing Member from
OCC, and (iii) the process for
reconnection following a Security
Incident that results in disconnection.11
III. Proceedings To Determine Whether
To Approve or Disapprove the
Proposed Rule Change and Grounds for
Disapproval Under Consideration
The Commission is instituting
proceedings pursuant to Section
19(b)(2)(B) of the Exchange Act 12 to
determine whether the Proposed Rule
Change should be approved or
disapproved. Institution of proceedings
is appropriate at this time in view of the
legal and policy issues raised by the
Proposed Rule Change. Institution of
proceedings does not indicate that the
Commission has reached any
conclusions with respect to any of the
issues involved. Rather, the Commission
seeks and encourages interested persons
to comment on the Proposed Rule
Change, providing the Commission with
arguments to support the Commission’s
analysis as to whether to approve or
disapprove the Proposed Rule Change.
Pursuant to Section 19(b)(2)(B) of the
Exchange Act,13 the Commission is
providing notice of the grounds for
disapproval under consideration. The
Commission is instituting proceedings
to allow for additional analysis of, and
input from commenters with respect to,
the Proposed Rule Change’s consistency
with Section 17A of the Exchange Act,14
and the rules thereunder, including the
following provisions:
• Section 17A(b)(3)(F) of the
Exchange Act,15 which requires, among
other things, that the rules of a clearing
agency are designed to promote the
prompt and accurate clearance and
settlement of securities transactions and
derivative agreements, contracts, and
transactions; and to assure the
safeguarding of securities and funds
which are in the custody or control of
the clearing agency or for which it is
responsible; and
10 See
12 15
U.S.C. 78s(b)(2)(B).
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15 15
Sfmt 4703
U.S.C. 78s(b)(2)(B).
13 Id.
14 15
9 15
Partial Amendment No. 1, supra note 8.
11 Id.
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U.S.C. 78q–1.
U.S.C. 78q–1(b)(3)(F).
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Agencies
[Federal Register Volume 88, Number 130 (Monday, July 10, 2023)]
[Notices]
[Pages 43639-43640]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14636]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meetings
TIME AND DATE: 2:00 p.m. on Thursday, July 13, 2023.
PLACE: The meeting will be held via remote means and/or at the
Commission's headquarters, 100 F Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to the public.
MATTERS TO BE CONSIDERED: Commissioners, Counsel to the Commissioners,
the Secretary to the Commission, and recording secretaries will attend
the closed meeting. Certain staff members who have an interest in the
matters also may be present.
In the event that the time, date, or location of this meeting
changes, an announcement of the change, along with the new time, date,
and/or place of the meeting will be posted on the Commission's website
at https://www.sec.gov.
The General Counsel of the Commission, or her designee, has
certified that, in her opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) and (10) and 17 CFR
200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10),
permit consideration of the scheduled matters at the closed meeting.
The subject matter of the closed meeting will consist of the
following topics:
Institution and settlement of injunctive actions;
Institution and settlement of administrative proceedings;
Resolution of litigation claims; and
Other matters relating to examinations and enforcement
proceedings.
At times, changes in Commission priorities require alterations in
the scheduling of meeting agenda items that may consist of
adjudicatory, examination, litigation, or regulatory matters.
CONTACT PERSON FOR MORE INFORMATION: For further information; please
contact Vanessa A. Countryman from the Office of the Secretary at (202)
551-5400.
Authority: 5 U.S.C. 552b.
[[Page 43640]]
Dated: July 6, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-14636 Filed 7-6-23; 4:15 pm]
BILLING CODE 8011-01-P