Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Schedule of Fees and Rebates, 3479-3481 [2024-00919]
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Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Notices
Moreover, purchase of Historical Depth
Data is optional.
Finally, the Exchange believes the
proposed rule change does not impose
any burden on intermarket competition
that is not necessary or appropriate in
furtherance of the purposes of the Act.
As previously discussed, similar
products are offered by Nasdaq and
NYSE. Moreover, the Commission has
repeatedly expressed its preference for
competition over regulatory
intervention in determining prices,
products, and services in the securities
markets. Specifically, in Regulation
NMS, the Commission highlighted the
importance of market forces in
determining prices and SRO revenues
and, also, recognized that current
regulation of the market system ‘‘has
been remarkably successful in
promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ The
fact that this market is competitive has
also long been recognized by the courts.
In NetCoalition v. Securities and
Exchange Commission, the D.C. Circuit
stated as follows: ‘‘[n]o one disputes
that competition for order flow is
‘fierce.’ . . . As the SEC explained, ‘[i]n
the U.S. national market system, buyers
and sellers of securities, and the brokerdealers that act as their order-routing
agents, have a wide range of choices of
where to route orders for execution’;
[and] ‘no exchange can afford to take its
market share percentages for granted’
because ‘no exchange possesses a
monopoly, regulatory or otherwise, in
the execution of order flow from broker
dealers’. . . .’’. Accordingly, the
Exchange does not believe its proposal
imposes any burden on intermarket
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
khammond on DSKJM1Z7X2PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to section 19(b)(3)(A)
of the Act 20 and paragraph (f) of Rule
19b–4 21 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
20 15
U.S.C. 78s(b)(3)(A).
21 17 CFR 240.19b–4(f).
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17:32 Jan 17, 2024
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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
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
3479
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–CboeEDGX–2024–004 and should be
submitted on or before February 8, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Sherry R. Haywood,
Assistant Secretary.
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. 2024–00923 Filed 1–17–24; 8:45 am]
Electronic Comments
[Release No. 34–99338; File No. SR–
NYSECHX–2023–25]
• 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–
CboeEDGX–2024–004 on the subject
line.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; NYSE
Chicago, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its Schedule of
Fees and Rebates
Paper Comments
January 12, 2024.
• 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–CboeEDGX–2024–004. 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
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
29, 2023, NYSE Chicago, Inc. (‘‘NYSE
Chicago’’ 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 Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
PO 00000
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Fmt 4703
Sfmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Schedule of Fees and Rebates (the ‘‘Fee
Schedule’’) with respect to the system
processing fee for the Central
Registration Depository (‘‘CRD’’ or ‘‘CRD
system’’) collected by the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’). The Exchange proposes to
implement the fee change on January 2,
2024. 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.
22 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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18JAN1
3480
Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Notices
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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Fee Schedule with respect to the system
processing fee for use of CRD collected
by FINRA.3 The Exchange proposes to
implement the fee changes effective
January 2, 2024.
FINRA collects and retains certain
regulatory fees via CRD for the
registration of associated persons of
Exchange Participants that are not
FINRA members (‘‘Non-FINRA
Participants’’).4 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
Participant.
In 2020, FINRA amended certain fees
assessed for use of the CRD system for
implementation between 2022 and
2024.5 The Exchange accordingly
proposes to amend the Fee Schedule to
mirror the fees assessed by FINRA,
which will be implemented
concurrently with the amended FINRA
khammond on DSKJM1Z7X2PROD with NOTICES
3 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.
4 The Exchange originally adopted fees for use of
the CRD system in in 2008 and amended those fees
in 2013, 2022 and 2023. See Securities Exchange
Act Release Nos. 57587 (March 31, 2008), 73 FR
18598 (April 4, 2008) (SR–CHX–2007–21); 68647
(January 14, 2013), 78 FR 4506 (January 22, 2013)
(SR–CHX–2013–01); 93907 (January 5, 2022), 87 FR
1468 (January 11, 2022) (SR–NYSECHX–2021–18);
and 96683 (January 17, 2023), 88 FR 4065 (January
23, 2013) (SR–NYSECHX–2023–01). While the
Exchange lists these fees in its Fee Schedule, it does
not collect or retain these fees.
5 See Securities Exchange Act Release No. 90176
(October 14, 2020), 85 FR 66592 (October 20, 2020)
(SR–FINRA–2020–032).
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17:32 Jan 17, 2024
Jkt 262001
fee as of January 2024.6 Specifically, the
Exchange proposes to amend the Fee
Schedule to modify the system
processing fee charged to Participants
that are not FINRA Members for each
registered representative and principal
from $45 to $70.7
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 Participants
would have in complying with the
proposed change.
1. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act,8 in general, and
furthers the objectives of section
6(b)(4) 9 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,10 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 2024
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
6 The Exchange notes that it has only adopted the
CRD system fees charged by FINRA to Non-FINRA
Participants 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 Chicago-only Participants.
Non-FINRA Participants have been charged CRD
system fees since 2008. See note 4, supra.
Participants that are also FINRA members are
charged CRD system fees according to Section 4 of
Schedule A to the FINRA By-Laws.
7 See Section (4)(b)(7) of Schedule A to the FINRA
By-laws.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4).
10 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
when a Non-FINRA Participant 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 Participants.
All similarly situated Participants are
subject to the same fee structure, and
every Participant 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
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 Participants
required to report information to CRD
and for services performed by FINRA
regardless of whether such Participants
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 2024, as proposed by the
Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with section 6(b)(8) of
the Act,11 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 2024
and will thus result in the same
regulatory fees being charged to all
Participants required to report
information to the CRD system and for
services performed by FINRA,
regardless of whether or not such
Participants are FINRA members.
11 See
E:\FR\FM\18JAN1.SGM
15 U.S.C. 78f(b)(8).
18JAN1
Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on 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 pursuant to section
19(b)(3)(A)(ii) of the Act 12 and Rule
19b–4(f)(2) 13 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. If the
Commission takes such action, the
Commission shall institute proceedings
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:
khammond on DSKJM1Z7X2PROD with NOTICES
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–2023–25 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–2023–25. 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–NYSECHX–2023–25 and should be
submitted on or before February 8, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–00919 Filed 1–17–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99335; File No. SR–FINRA–
2023–013]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Order Approving a
Proposed Rule Change To Amend the
FINRA Codes of Arbitration Procedure
and Code of Mediation Procedure To
Revise and Restate the Qualifications
for Representatives in Arbitrations and
Mediations
I. Introduction
On October 5, 2023, the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) filed with the Securities and
Exchange Commission (‘‘SEC’’ or
‘‘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
amend the FINRA Code of Arbitration
Procedure for Customer Disputes
(‘‘Customer Code’’), the Code of
Arbitration Procedure for Industry
CFR 200.30–3(a)(12).
15 U.S.C. 78s(b)(1).
2 See 17 CFR 240.19b–4.
U.S.C. 78s(b)(3)(A)(ii).
13 17 CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
17:32 Jan 17, 2024
1 See
Jkt 262001
Disputes (‘‘Industry Code’’), and the
Code of Mediation Procedure
(‘‘Mediation Code’’) (collectively, the
‘‘Codes’’), to revise and restate the
qualifications for representatives in
arbitrations and mediations in the forum
administered by FINRA Dispute
Resolution Services (‘‘DRS’’).
The proposed rule change was
published for public comment in the
Federal Register on October 13, 2023.3
The public comment period closed on
November 3, 2023. The Commission
received comment letters related to this
filing.4 On November 9, 2023, FINRA
consented to an extension of the time
period in which the Commission must
approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether to approve or disapprove the
proposed rule change to January 11,
2024.5 On January 8, 2024, FINRA
responded to the comment letters
received in response to the Notice.6 This
order approves the proposed rule
change.
II. Description of the Proposed Rule
Change
A. Background
The Codes currently permit parties to
arbitrations and mediations in the DRS
forum to represent themselves, to be
represented by an attorney at law in
good standing, or to be represented by
a non-attorney representative (‘‘NAR’’).7
Some NARs receive compensation in
connection with their representation of
parties (‘‘compensated NARs’’).8 Other
NARs assist parties with their cases
without compensation
(‘‘uncompensated NARs’’).9 In addition,
although the practice is not specifically
addressed by the Codes, law students
sometimes represent parties while
practicing under the supervision of an
attorney through securities arbitration
clinics (‘‘SACs’’).10
January 11, 2024.
14 17
12 15
3481
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
3 See Exchange Act Release No. 98703 (Oct. 6,
2023), 88 FR 71051 (Oct. 13, 2023) (File No. SR–
FINRA–2023–013) (‘‘Notice’’).
4 The comment letters are available at https://
www.sec.gov/comments/sr-finra-2023-013/
srfinra2023013.htm.
5 See letter from Kristine Vo, Assistant General
Counsel, FINRA, to Lourdes Gonzalez, Assistant
Chief Counsel, Division of Trading and Markets,
Commission, dated November 9, 2023. This letter
is available at https://www.finra.org/sites/default/
files/2023-11/SR-FINRA-2023-013ExtensionNo1.pdf.
6 See letter from Kristine Vo, Assistant General
Counsel, Office of General Counsel, FINRA, to
Vanessa Countryman, Secretary, Commission, dated
January 8, 2024 (‘‘FINRA Response’’).
7 See FINRA Rules 12208, 13208, and 14106.
8 Notice at 71051.
9 Id.
10 Id. at 71051–52.
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18JAN1
]]>Agencies
[Federal Register Volume 89, Number 12 (Thursday, January 18, 2024)]
[Notices]
[Pages 3479-3481]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00919]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99338; File No. SR-NYSECHX-2023-25]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its
Schedule of Fees and Rebates
January 12, 2024.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on December 29, 2023, NYSE Chicago, Inc. (``NYSE Chicago'' 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 Exchange. 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 its Schedule of Fees and Rebates
(the ``Fee Schedule'') with respect to the system processing fee for
the Central Registration Depository (``CRD'' or ``CRD system'')
collected by the Financial Industry Regulatory Authority, Inc.
(``FINRA''). The Exchange proposes to implement the fee change on
January 2, 2024. 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.
[[Page 3480]]
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 Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fee Schedule with respect to the
system processing fee for use of CRD collected by FINRA.\3\ The
Exchange proposes to implement the fee changes effective January 2,
2024.
---------------------------------------------------------------------------
\3\ 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 Participants that are
not FINRA members (``Non-FINRA Participants'').\4\ 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 Participant.
---------------------------------------------------------------------------
\4\ The Exchange originally adopted fees for use of the CRD
system in in 2008 and amended those fees in 2013, 2022 and 2023. See
Securities Exchange Act Release Nos. 57587 (March 31, 2008), 73 FR
18598 (April 4, 2008) (SR-CHX-2007-21); 68647 (January 14, 2013), 78
FR 4506 (January 22, 2013) (SR-CHX-2013-01); 93907 (January 5,
2022), 87 FR 1468 (January 11, 2022) (SR-NYSECHX-2021-18); and 96683
(January 17, 2023), 88 FR 4065 (January 23, 2013) (SR-NYSECHX-2023-
01). While the Exchange lists these fees in its Fee Schedule, it
does not collect or retain these fees.
---------------------------------------------------------------------------
In 2020, FINRA amended certain fees assessed for use of the CRD
system for implementation between 2022 and 2024.\5\ The Exchange
accordingly 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 2024.\6\ Specifically, the Exchange
proposes to amend the Fee Schedule to modify the system processing fee
charged to Participants that are not FINRA Members for each registered
representative and principal from $45 to $70.\7\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 90176 (October 14,
2020), 85 FR 66592 (October 20, 2020) (SR-FINRA-2020-032).
\6\ The Exchange notes that it has only adopted the CRD system
fees charged by FINRA to Non-FINRA Participants 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
Chicago-only Participants. Non-FINRA Participants have been charged
CRD system fees since 2008. See note 4, supra. Participants that are
also FINRA members are charged CRD system fees according to Section
4 of Schedule A to the FINRA By-Laws.
\7\ See Section (4)(b)(7) 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 Participants would have
in complying with the proposed change.
1. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\8\ in general, and furthers the
objectives of section 6(b)(4) \9\ 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,\10\ 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
\10\ 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 2024 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 Participant 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 Participants. All similarly situated
Participants are subject to the same fee structure, and every
Participant 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 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 Participants
required to report information to CRD and for services performed by
FINRA regardless of whether such Participants 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
2024, as proposed by the Exchange.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with section 6(b)(8) of the Act,\11\ 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 2024 and will thus result in the same regulatory fees being
charged to all Participants required to report information to the CRD
system and for services performed by FINRA, regardless of whether or
not such Participants are FINRA members.
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\11\ See 15 U.S.C. 78f(b)(8).
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[[Page 3481]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on 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 pursuant to section
19(b)(3)(A)(ii) of the Act \12\ and Rule 19b-4(f)(2) \13\ thereunder.
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\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 17 CFR 240.19b-4(f)(2).
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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 shall institute proceedings 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-NYSECHX-2023-25 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-2023-25. 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-NYSECHX-2023-25 and should be submitted
on or before February 8, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-00919 Filed 1-17-24; 8:45 am]
BILLING CODE 8011-01-P
