Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules 10.9521 and 10.9522 To Correct Obsolete References to a FINRA Department, 78087-78089 [2023-25014]
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Federal Register / Vol. 88, No. 218 / Tuesday, November 14, 2023 / Notices
The registrant indicated on its initial
and most recent Form ADV filings that
it is relying on rule 203A–2(e) to register
with the Commission, which provides
an exemption from the prohibition on
registration for an adviser that provides
investment advice to all of its clients
exclusively through the adviser’s
interactive website, except that the
adviser may advise fewer than 15 clients
through other means during the
preceding 12 months.1 The Commission
believes, based on the facts it has, that
the registrant does not advise clients
through an interactive website as
defined under the rule,2 and that it is
therefore prohibited from registering as
an investment adviser under section
203A of the Act. Accordingly, the
Commission believes that reasonable
grounds exist for a finding that this
registrant is no longer eligible to be
registered with the Commission as an
investment adviser and that the
registration should be cancelled
pursuant to section 203(h) of the Act.
Notice is also given that any
interested person may, by December 2,
2023, at 5:30 p.m., submit to the
Commission in writing a request for a
hearing on the cancellation,
accompanied by a statement as to the
nature of his or her interest, the reason
for such request, and the issues, if any,
of fact or law proposed to be
controverted, and he or she may request
that he or she be notified if the
Commission should order a hearing
khammond on DSKJM1Z7X2PROD with NOTICES
1 Section
203A of the Act generally prohibits an
investment adviser from registering with the
Commission unless it meets certain requirements.
Rule 203A–2 provides exemptions from the
prohibition on Commission registration in section
203A of the Act. Rule 203A–2(e) exempts from the
prohibition on Commission registration certain
investment advisers that provide advisory services
through the internet, as described above. See
Exemption for Certain Investment Advisers
Operating Through the internet, Investment
Advisers Act Release No. 2091 (December 12, 2002),
available at https://www.sec.gov/rules/final/ia2091.htm (‘‘internet Adviser Exemption Adopting
Release’’). Effective September 19, 2011, rule 203A–
2(f) was renumbered as rule 203A–2(e). See Rules
Implementing Amendments to the Investment
Advisers Act of 1940, Investment Advisers Act
Release No. 3221 (June 22, 2011), available at
https://www.sec.gov/rules/final/2011/ia-3221.pdf.
2 Rule 203A–2(e) defines ‘‘interactive website’’ as
a website in which computer software-based
models or applications provide investment advice
to clients based on personal information provided
by each client through the website. An adviser
relying on the exemption may not use its advisory
personnel to elaborate or expand upon the
investment advice provided by its interactive
website, or otherwise provide investment advice to
its internet clients, except as permitted by the rule’s
de minimis exception. Such exception permits an
adviser relying on the rule to advise clients through
means other than its interactive website, so long as
the adviser had fewer than 15 of these non-internet
clients during the preceding 12 months. See
internet Adviser Exemption Adopting Release, id.
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16:48 Nov 13, 2023
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thereon. Any such communication
should be emailed to the Commission’s
Secretary at Secretarys-Office@sec.gov.
At any time after December 2, 2023,
the Commission may issue an order
cancelling the registration, upon the
basis of the information stated above,
unless an order for a hearing on the
cancellation shall be issued upon
request or upon the Commission’s own
motion. Persons who requested a
hearing, or who requested to be advised
as to whether a hearing is ordered, will
receive any notices and orders issued in
this matter, including the date of the
hearing (if ordered) and any
postponements thereof. Any adviser
whose registration is cancelled under
delegated authority may appeal that
decision directly to the Commission in
accordance with rules 430 and 431 of
the Commission’s rules of practice (17
CFR 201.430 and 431).
ADDRESSES: The Commission:
Secretarys-Office@sec.gov.
FOR FURTHER INFORMATION CONTACT:
Juliet Han, Senior Counsel at 202–551–
5213; SEC, Division of Investment
Management, Office of Chief Counsel,
100 F Street NE, Washington, DC
20549–8549.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.3
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–24991 Filed 11–13–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98876; File No. SR–
NYSEARCA–2023–74]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rules 10.9521
and 10.9522 To Correct Obsolete
References to a FINRA Department
November 7, 2023.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (‘‘Act’’)
and Rule 19b–4 thereunder,2 notice is
hereby given that on October 26, 2023,
NYSE Arca, Inc. (‘‘NYSE Arca’’ 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
3 17
CFR 200.30–5(e)(2).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00140
Fmt 4703
Sfmt 4703
78087
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
Rules 10.9521 (Purposes and
Definitions) and 10.9522 (Initiation of
Eligibility Proceeding; Member
Regulation Consideration) to correct an
obsolete reference to a department of the
Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’). 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 proposes to
amend Rules 10.9521 (Purposes and
Definitions) and 10.9522 (Initiation of
Eligibility Proceeding; Member
Regulation Consideration) to correct an
obsolete reference to a FINRA
department.
Background and Proposed Rule Change
In 2019, NYSE Arca adopted
disciplinary rules based on the text of
the Rule 8000 and Rule 9000 Series of
its affiliate NYSE American LLC
(‘‘NYSE American’’), with certain
changes. The NYSE American
disciplinary rules are, in turn,
substantially the same as the Rule 8000
Series and Rule 9000 Series of FINRA
and the New York Stock Exchange
E:\FR\FM\14NON1.SGM
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78088
Federal Register / Vol. 88, No. 218 / Tuesday, November 14, 2023 / Notices
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LLC.3 The NYSE Arca disciplinary rules
were implemented on May 27, 2019.4
In adopting disciplinary rules
modeled on FINRA’s rules, NYSE Arca
adopted procedures set forth in the Rule
10.9520 Series for a covered person to
become or remain associated with an
ETP Holder, OTP Holder or OTP Firm
notwithstanding the existence of a
statutory disqualification as defined in
Section 3(a)(39) of the Act, and for a
current ETP Holder, OTP Holder, OTP
Firm or covered person to obtain relief
from the eligibility or qualification
requirements of the Exchange’s Rules,
which the rule refers to as ‘‘eligibility
proceedings.’’ Rule 10.9521 sets forth
certain definitions relating to eligibility
proceedings. Rule 10.9521(b)(1) defines
the term ‘‘Application’’ to mean
FINRA’s Form MC–400 for covered
persons or Form MC–400A for ETP
Holders, OTP Holders or OTP Firms
filed with FINRA’s Department of
Registration and Disclosure’’
(abbreviated as ‘‘RAD’’ in the
Exchange’s rules). Rule 10.9522, which
governs initiation of an eligibility
proceeding by the Exchange, contains
references to RAD in subdivisions (b)(1),
(c) and (e)(3)(A).
In 2020, FINRA changed RAD’s name
to ‘‘Credentialing, Registration,
Education and Disclosure’’ (abbreviated
as ‘‘CRED’’ in FINRA’s rules) and
amended, among others, FINRA Rules
9521 and 9522 to reflect the name
change.5 The Exchange proposes to
conform the references in the
Exchange’s rules. To effectuate this
change, the Exchange would retain the
reference to ‘‘FINRA’s Department’’ in
Rule 10.9521(b)(1) and change the
capital ‘‘D’’ in department to lowercase.
The Exchange would replace
‘‘Registration and Disclosure (‘RAD’)’’ in
Rule 10.9521(b)(1) with ‘‘Credentialing,
Registration, Education and Disclosure
(‘CRED’)’’. The Exchange would also
replace ‘‘RAD’’ with ‘‘CRED’’ in Rules
10.9522(b)(1) (one reference), (c) (two
references) and (e)(3)(A) (one reference).
3 See Securities Exchange Act Release No. 85639
(April 12, 2019), 84 FR 16346 (April 18, 2019) (SR–
NYSEArca–2019–15) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
To Adopt Investigation, Disciplinary, Sanction, and
Other Procedural Rules Modeled on the Rules of the
Exchange’s Affiliate NYSE American LLC).
4 See NYSE Arca Equities RB–19–060 & NYSE
Arca Options RB–19–02 (April 26, 2019).
5 See Securities Exchange Act Release No. 90344
(November 4, 2020), 85 FR 71695 (November 10,
2020) (SR–FINRA–2020–039) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change
To Amend FINRA Rules To Reflect Name Changes
to Two FINRA Departments: The Office of Dispute
Resolution and the Department of Registration and
Disclosure).
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16:48 Nov 13, 2023
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2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b)(5) of the Exchange Act,6 in
that it is designed to prevent fraudulent
and manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
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.
The Exchange believes that the
proposed change to Rules 10.9521 and
10.9522 to update and replace obsolete
references to a FINRA department
would increase the clarity and
transparency of the Exchange’s rules
and remove impediments to and perfect
the mechanism of a free and open
market by ensuring that persons subject
to the Exchange’s jurisdiction,
regulators, and the investing public
could more easily navigate and
understand the Exchange rules. The
Exchange further believes that the
proposed change would not be
inconsistent with the public interest and
the protection of investors because
investors will not be harmed and in fact
would benefit from increased clarity,
thereby reducing potential confusion.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,7 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. The
proposed rule change is not intended to
address competitive issues but is rather
concerned with deleting and replacing
obsolete references in its rules. Since
the proposal does not substantively
modify system functionality or
processes on the Exchange, the
proposed changes will not impose any
burden on competition.
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.
6 15
7 15
PO 00000
U.S.C. 78f(b)(5).
U.S.C. 78f(b)(8).
Frm 00141
Fmt 4703
Sfmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) 9 thereunder. 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 from the date on which it
was filed, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) 11 thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 12 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),13 the
Commission may designate a shorter
time if such action is consistent with
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
immediately upon filing. The
Commission believes that waving the
30-day operative delay is consistent
with the protection of investors and the
public interest, because it will allow the
Exchange to correct obsolete references
to a FINRA department in its rule text.
Accordingly, the Commission
designates the proposed rule change to
be operative upon filing.14
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 will institute proceedings
8 15
U.S.C. 78(b)(3)(A).
CFR 240.19b–4(f)(6).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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.
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
14 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
9 17
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Federal Register / Vol. 88, No. 218 / Tuesday, November 14, 2023 / Notices
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:
[FR Doc. 2023–25014 Filed 11–13–23; 8:45 am]
BILLING CODE 8011–01–P
Authority No. 523 of December 22,
2021.
Nicole L. Elkon,
Deputy Assistant Secretary for Professional
and Cultural Exchanges, Bureau of
Educational and Cultural Affairs, Department
of State.
[FR Doc. 2023–24997 Filed 11–13–23; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
DEPARTMENT OF STATE
Electronic Comments
[Public Notice: 12264]
[Public Notice: 12261]
• 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–2023–74 on the subject
line.
Notice of Determinations; Culturally
Significant Objects Being Imported for
Exhibition—Determinations:
‘‘Nineteenth-Century Photography
Now’’ Exhibition
Notice of Determinations; Culturally
Significant Objects Being Imported for
Exhibition—Determinations: ‘‘Crafting
Modernity: Design in Latin America,
1940–1980’’ Exhibition
Paper Comments
khammond on DSKJM1Z7X2PROD with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Sherry R. Haywood,
Assistant Secretary.
78089
• 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–2023–74. 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–NYSEARCA–2023–74 and should be
submitted on or before December 5,
2023.
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16:48 Nov 13, 2023
Jkt 262001
Notice is hereby given of the
following determinations: I hereby
determine that certain objects being
imported from abroad pursuant to
agreements with their foreign owners or
custodians for temporary display in the
exhibition ‘‘Nineteenth-Century
Photography Now’’ at the J. Paul Getty
Museum at the Getty Center, Los
Angeles, California, and at possible
additional exhibitions or venues yet to
be determined, are of cultural
significance, and, further, that their
temporary exhibition or display within
the United States as aforementioned is
in the national interest. I have ordered
that Public Notice of these
determinations be published in the
Federal Register.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Reed Liriano, Program Coordinator,
Office of the Legal Adviser, U.S.
Department of State (telephone: 202–
632–6471; email: section2459@
state.gov). The mailing address is U.S.
Department of State, L/PD, 2200 C Street
NW (SA–5), Suite 5H03, Washington,
DC 20522–0505.
The
foregoing determinations were made
pursuant to the authority vested in me
by the Act of October 19, 1965 (79 Stat.
985; 22 U.S.C. 2459), Executive Order
12047 of March 27, 1978, the Foreign
Affairs Reform and Restructuring Act of
1998 (112 Stat. 2681, et seq.; 22 U.S.C.
6501 note, et seq.), Delegation of
Authority No. 234 of October 1, 1999,
Delegation of Authority No. 236–3 of
August 28, 2000, and Delegation of
SUPPLEMENTARY INFORMATION:
Notice is hereby given of the
following determinations: I hereby
determine that certain objects being
imported from abroad pursuant to
agreements with their foreign owners or
custodians for temporary display in the
exhibition ‘‘Crafting Modernity: Design
in Latin America, 1940–1980’’ at The
Museum of Modern Art, New York, New
York, and at possible additional
exhibitions or venues yet to be
determined, are of cultural significance,
and, further, that their temporary
exhibition or display within the United
States as aforementioned is in the
national interest. I have ordered that
Public Notice of these determinations be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT:
Reed Liriano, Program Coordinator,
Office of the Legal Adviser, U.S.
Department of State (telephone: 202–
632–6471; email: section2459@
state.gov). The mailing address is U.S.
Department of State, L/PD, 2200 C Street
NW (SA–5), Suite 5H03, Washington,
DC 20522–0505.
SUPPLEMENTARY INFORMATION: The
foregoing determinations were made
pursuant to the authority vested in me
by the Act of October 19, 1965 (79 Stat.
985; 22 U.S.C. 2459), Executive Order
12047 of March 27, 1978, the Foreign
Affairs Reform and Restructuring Act of
1998 (112 Stat. 2681, et seq.; 22 U.S.C.
6501 note, et seq.), Delegation of
Authority No. 234 of October 1, 1999,
Delegation of Authority No. 236–3 of
August 28, 2000, and Delegation of
Authority No. 523 of December 22,
2021.
SUMMARY:
Nicole L. Elkon,
Deputy Assistant Secretary for Professional
and Cultural Exchanges, Bureau of
Educational and Cultural Affairs, Department
of State.
[FR Doc. 2023–25004 Filed 11–13–23; 8:45 am]
15 17
PO 00000
CFR 200.30–3(a)(12), (59).
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BILLING CODE 4710–05–P
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]]>Agencies
[Federal Register Volume 88, Number 218 (Tuesday, November 14, 2023)]
[Notices]
[Pages 78087-78089]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25014]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98876; File No. SR-NYSEARCA-2023-74]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rules
10.9521 and 10.9522 To Correct Obsolete References to a FINRA
Department
November 7, 2023.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 26, 2023, NYSE Arca, Inc. (``NYSE Arca'' 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 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\ 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 Rules 10.9521 (Purposes and
Definitions) and 10.9522 (Initiation of Eligibility Proceeding; Member
Regulation Consideration) to correct an obsolete reference to a
department of the Financial Industry Regulatory Authority, Inc.
(``FINRA''). 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 proposes to amend Rules 10.9521 (Purposes
and Definitions) and 10.9522 (Initiation of Eligibility Proceeding;
Member Regulation Consideration) to correct an obsolete reference to a
FINRA department.
Background and Proposed Rule Change
In 2019, NYSE Arca adopted disciplinary rules based on the text of
the Rule 8000 and Rule 9000 Series of its affiliate NYSE American LLC
(``NYSE American''), with certain changes. The NYSE American
disciplinary rules are, in turn, substantially the same as the Rule
8000 Series and Rule 9000 Series of FINRA and the New York Stock
Exchange
[[Page 78088]]
LLC.\3\ The NYSE Arca disciplinary rules were implemented on May 27,
2019.\4\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 85639 (April 12,
2019), 84 FR 16346 (April 18, 2019) (SR-NYSEArca-2019-15) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Adopt
Investigation, Disciplinary, Sanction, and Other Procedural Rules
Modeled on the Rules of the Exchange's Affiliate NYSE American LLC).
\4\ See NYSE Arca Equities RB-19-060 & NYSE Arca Options RB-19-
02 (April 26, 2019).
---------------------------------------------------------------------------
In adopting disciplinary rules modeled on FINRA's rules, NYSE Arca
adopted procedures set forth in the Rule 10.9520 Series for a covered
person to become or remain associated with an ETP Holder, OTP Holder or
OTP Firm notwithstanding the existence of a statutory disqualification
as defined in Section 3(a)(39) of the Act, and for a current ETP
Holder, OTP Holder, OTP Firm or covered person to obtain relief from
the eligibility or qualification requirements of the Exchange's Rules,
which the rule refers to as ``eligibility proceedings.'' Rule 10.9521
sets forth certain definitions relating to eligibility proceedings.
Rule 10.9521(b)(1) defines the term ``Application'' to mean FINRA's
Form MC-400 for covered persons or Form MC-400A for ETP Holders, OTP
Holders or OTP Firms filed with FINRA's Department of Registration and
Disclosure'' (abbreviated as ``RAD'' in the Exchange's rules). Rule
10.9522, which governs initiation of an eligibility proceeding by the
Exchange, contains references to RAD in subdivisions (b)(1), (c) and
(e)(3)(A).
In 2020, FINRA changed RAD's name to ``Credentialing, Registration,
Education and Disclosure'' (abbreviated as ``CRED'' in FINRA's rules)
and amended, among others, FINRA Rules 9521 and 9522 to reflect the
name change.\5\ The Exchange proposes to conform the references in the
Exchange's rules. To effectuate this change, the Exchange would retain
the reference to ``FINRA's Department'' in Rule 10.9521(b)(1) and
change the capital ``D'' in department to lowercase. The Exchange would
replace ``Registration and Disclosure (`RAD')'' in Rule 10.9521(b)(1)
with ``Credentialing, Registration, Education and Disclosure
(`CRED')''. The Exchange would also replace ``RAD'' with ``CRED'' in
Rules 10.9522(b)(1) (one reference), (c) (two references) and (e)(3)(A)
(one reference).
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 90344 (November 4,
2020), 85 FR 71695 (November 10, 2020) (SR-FINRA-2020-039) (Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend FINRA Rules To Reflect Name Changes to Two FINRA Departments:
The Office of Dispute Resolution and the Department of Registration
and Disclosure).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(5) of the Exchange Act,\6\ in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in 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.
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\6\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed change to Rules 10.9521 and
10.9522 to update and replace obsolete references to a FINRA department
would increase the clarity and transparency of the Exchange's rules and
remove impediments to and perfect the mechanism of a free and open
market by ensuring that persons subject to the Exchange's jurisdiction,
regulators, and the investing public could more easily navigate and
understand the Exchange rules. The Exchange further believes that the
proposed change would not be inconsistent with the public interest and
the protection of investors because investors will not be harmed and in
fact would benefit from increased clarity, thereby reducing potential
confusion.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\7\ 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. The proposed rule change is not intended to
address competitive issues but is rather concerned with deleting and
replacing obsolete references in its rules. Since the proposal does not
substantively modify system functionality or processes on the Exchange,
the proposed changes will not impose any burden on competition.
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\7\ 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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) \9\ thereunder. 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 from the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) \11\ thereunder.
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\8\ 15 U.S.C. 78(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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.
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A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission
may designate a shorter time if such action is consistent with
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 immediately upon filing. The
Commission believes that waving the 30-day operative delay is
consistent with the protection of investors and the public interest,
because it will allow the Exchange to correct obsolete references to a
FINRA department in its rule text. Accordingly, the Commission
designates the proposed rule change to be operative upon filing.\14\
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\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is 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 will institute proceedings
[[Page 78089]]
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 [email protected]. Please include
file number SR-NYSEARCA-2023-74 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-2023-74. 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-NYSEARCA-2023-74 and should
be submitted on or before December 5, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-25014 Filed 11-13-23; 8:45 am]
BILLING CODE 8011-01-P
