Self-Regulatory Organizations: Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend IEX Rule 2.160(p) To Reopen the Period by Which Certain Participants in the Maintaining Qualifications Program Will Be Able To Complete Their Prescribed 2022 and 2023 Continuing Education Content, 48922-48925 [2024-12591]

Download as PDF 48922 Federal Register / Vol. 89, No. 112 / Monday, June 10, 2024 / Notices meeting in person or watch live via webcast at the Web address—https:// video.nrc.gov/. Week of July 15, 2024—Tentative There are no meetings scheduled for the week of July 15, 2024. CONTACT PERSON FOR MORE INFORMATION: For more information or to verify the status of meetings, contact Wesley Held at 301–287–3591 or via email at Wesley.Held@nrc.gov. The NRC is holding the meetings under the authority of the Government in the Sunshine Act, 5 U.S.C. 552b. Dated: June 5, 2024. For the Nuclear Regulatory Commission. Wesley W. Held, Policy Coordinator, Office of the Secretary. [FR Doc. 2024–12625 Filed 6–6–24; 11:15 am] BILLING CODE 7590–01–P PUBLIC BUILDINGS REFORM BOARD Notice of Public Meeting by the Public Buildings Reform Board Public Buildings Reform Board. ACTION: Notice of public meeting. AGENCY: As provided by the Federal Assets Sale and Transfer Act of 2016 (FASTA), the Public Buildings Reform Board (PBRB) is holding its ninth public meeting. At this meeting, the Board will discuss the progress of past rounds and well as plans for the second round to be submitted in late 2024, as well as the results of its study of the Federal portfolio in several key cities. DATES: The meeting is scheduled for Thursday, July 11, 2024 from 10 a.m. to 1:45 p.m. (eastern daylight time). ADDRESSES: The meeting will be held at the JLL offices at 2020 K St. NW, Washington, DC 20006. Registration for the meeting is required: https:// forms.gle/DoXvky7Br5XxErVH9. FOR FURTHER INFORMATION CONTACT: Paul Walden, PBRB, at (202) 716–8165, or questions and comments can be forwarded to the PBRB Team by email at fastainfo@pbrb.gov. SUPPLEMENTARY INFORMATION: Background: FASTA created the PBRB as an independent Board to identify opportunities for the Federal Government to significantly reduce its inventory of civilian real property and thereby reduce costs. The Board is directed, within 6 months of its formation, to recommend to the Office of Management and Budget (OMB) the sale of not fewer than five properties not on the list of surplus or excess with a fair market value of not less than $500 lotter on DSK11XQN23PROD with NOTICES1 SUMMARY: VerDate Sep<11>2014 17:13 Jun 07, 2024 Jkt 262001 million and not more than $750 million. In two subsequent rounds over a fiveyear period, the Board is responsible for making recommendations for other sales, consolidations, property disposals or redevelopment of up to $7.25 billion. Format and Registration: The format for the meeting will be panel discussions with appropriate time allowed for a Q&A segment. Interested participants must register for the public meeting via this link: https://forms.gle/ DoXvky7Br5XxErVH9. Individuals wishing to attend who require special assistance or accommodations must contact the PBRB Team at fastainfo@pbrb.gov at least 12 days prior to the event. Portions of the meeting may be held in executive session if the Board is considering issues involving classified or proprietary information. A transcript of the public meeting will be uploaded to pbrb.gov shortly after the session. If you have any additional questions, please email fastainfo@pbrb.gov. Authority: Public Law 114–287, 130 Stat. 1463. Paul Walden, Executive Director, Federal Register Liaison, Public Buildings Reform Board. [FR Doc. 2024–12664 Filed 6–7–24; 8:45 am] BILLING CODE P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–100265; File No. SR–IEX– 2024–10] Self-Regulatory Organizations: Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend IEX Rule 2.160(p) To Reopen the Period by Which Certain Participants in the Maintaining Qualifications Program Will Be Able To Complete Their Prescribed 2022 and 2023 Continuing Education Content June 4, 2024. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on May 22, 2024, the Investors Exchange LLC (‘‘IEX’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Pursuant to the provisions of Section 19(b)(1) under the Act,4 and Rule 19b– 4 thereunder,5 the Exchange is filing with the Commission a proposed rule change to amend IEX Rule 2.160(p) to reopen the period by which certain participants in the Maintaining Qualifications Program will be able to complete their prescribed 2022 and 2023 continuing education content. The Exchange has designated this proposal as non-controversial pursuant to Section 19(b)(3)(A)(iii) of the Act 6 and provided the Commission with the notice required by Rule 19b–4(f)(6)(iii) thereunder.7 The text of the proposed rule change is available at the Exchange’s website at www.iextrading.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 the 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 these statements may be examined at the places specified in Item IV below. The self-regulatory organization 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose IEX is proposing to amend Supplementary Material .01 to IEX Rule 2.160(p)(c) to reopen the period by which certain participants in the Maintaining Qualifications Program (‘‘MQP’’) will be able to complete their prescribed 2022 and 2023 continuing education (‘‘CE’’) content. This proposed rule change is based on a substantively similar filing made by the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’), which amended FINRA’s equivalent rule, 4 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 6 15 U.S.C. 78s(b)(3)(A). 7 17 CFR 240.19b–4(f)(6)(iii). 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. PO 00000 Frm 00056 Fmt 4703 5 17 Sfmt 4703 E:\FR\FM\10JNN1.SGM 10JNN1 Federal Register / Vol. 89, No. 112 / Monday, June 10, 2024 / Notices lotter on DSK11XQN23PROD with NOTICES1 FINRA Rule 1240.01, to reopen the period by which certain participants in the MQP will be able to complete their prescribed 2022 and 2023 CE.8 FINRA Rule 1240.01, as described in Supplementary Material .01 to IEX Rule 2.160(p)(c), extended the option to participate in the MQP to individuals who: (1) were registered as a representative or principal within two years immediately prior to March 15, 2022 (the implementation date of the MQP); and (2) individuals who were participating in the Financial Services Affiliate Waiver Program (‘‘FSAWP’’) 9 pursuant to Supplementary Material .01 to Rule 2.160(g) immediately prior to March 15, 2022 (collectively, ‘‘LookBack Individuals’’).10 FINRA Rule 1240.01 provided two open enrollment periods for Look-Back Individuals to participate in the MQP (Supplementary Material .01 to IEX Rule 2.160(p)(c) provided one open enrollment period for Look-Back Individuals).11 FINRA and IEX provided all Look-Back Individuals who had enrolled in the MQP until March 31, 2024, to complete any prescribed 2022 and 2023 CE content.12 Look-Back Individuals who 8 See Securities Exchange Act Release No. 100067 (May 6, 2024) 89 FR 40520 (May 10, 2024) (SR– FINRA–2023–005) (‘‘FINRA MQP Extension Filing’’). 9 The FSAWP is a waiver program for eligible individuals who have left a member firm to work for a foreign or domestic financial services affiliate of a member firm. FINRA stopped accepting new participants for the FSAWP beginning on March 15, 2022; however, individuals who were already participating in the FSAWP prior to that date had the option of continuing in the FSAWP. 10 Supplementary Material .01 to IEX Rule 2.160(p)(c) refers to FINRA’s initial enrollment period for ‘‘Look-Back Individuals’’ who were registered in a representative or principal registration category with FINRA within two years immediately preceding March 15, 2022, but that initial enrollment period was not part of IEX’s rule. 11 In March 2023, FINRA amended Rule 1240.01 to provide Look-Back Individuals with a second opportunity to participate in the MQP for eligible persons who elected to participate between March 15, 2023 and December 31, 2023. See Securities Exchange Act Release No. 97184 (March 22, 2023), 88 FR 18359 (March 28, 2023) (SR–FINRA–2023– 005). In July 2023, IEX amended Supplementary Material .01 to IEX Rule 2.160(p)(c) to also offer a new enrollment period for eligible persons who elected to participate between July 13, 2023 and December 31, 2023. See Securities Exchange Act Release No. 97980 (July 25, 2023) 88 FR 49542 (July 31, 2023) (SR–IEX–2023–07). 12 FINRA determined to treat the individuals who enrolled during the first period (between January 31, 2022, and March 15, 2022) the same as those who enrolled during the second period (between March 15, 2023, and December 31, 2023) for purposes of the March 31, 2024, deadline for completion of prescribed 2022 and 2023 CE content. This is because those who had enrolled in the MQP during the first period satisfied all of the eligibility criteria for enrollment during the second period and would have been able to complete their prescribed CE content by March 31, 2024, had they chosen to enroll during the second period instead of enrolling during the first period. VerDate Sep<11>2014 17:13 Jun 07, 2024 Jkt 262001 are enrolled in the MQP, similar to other MQP participants, are able to complete any prescribed CE and renew their annual MQP participation through their FINRA Financial Professional Gateway (‘‘FinPro’’) accounts. On March 16, 2024, FINRA on its own behalf and on behalf of IEX, sent an email to Look-Back Individuals who had enrolled in the MQP but had not completed their prescribed CE to remind them of the March 31, 2024, deadline.13 In the week leading up to the deadline, however, FINRA noticed that several thousand of those individuals were renewing their participation in the MQP for 2024 instead of completing their prescribed CE.14 FINRA believes that some of those individuals may have been confused by the layout of their FinPro accounts.15 Specifically, if they selected the 2024 renewal banner, which was prominently displayed on their FinPro accounts, and completed the renewal process, they would not have been automatically redirected to complete any prescribed CE. Therefore, individuals may have inadvertently assumed that completion of the renewal process alone would have satisfied all of the necessary requirements to continue their participation in the MQP.16 For these reasons, FINRA amended Rule 1240.01 to reopen the period by which certain participants in the MQP will be able to complete their prescribed 2022 and 2023 CE.17 IEX now proposes to amend Supplementary Material .01 to IEX Rule 2.160(p)(c) to implement the reopening of the MQP completion 13 As noted in the FINRA MQP Extension Filing, FINRA had sent multiple reminders prior to March 16, 2024, but the March 16, 2024, email was the last reminder that was sent prior to the March 31, 2024, deadline for completion of any prescribed 2022 and 2023 CE content. 14 Look-Back Individuals who enrolled in the MQP have until December 31, 2024, to renew their participation in the MQP for 2024, provided that they complete their prescribed CE by the stated deadline. 15 See supra note 8. 16 A number of these individuals contacted FINRA to confirm whether they were required to satisfy any additional requirements other than completing the 2024 renewal. To provide FINRA with additional time to assess the situation, FINRA temporarily changed the March 31, 2024, due date for CE completion in its systems. This may have compounded the confusion because any Look-Back Individual who may have logged into their FinPro account during this time would have seen an interim CE completion date and would have been able to complete their prescribed CE content based on that interim CE completion date. 17 In the FINRA MQP Extension Filing, FINRA described its plans to reach out to all impacted individuals and inform them of the new CE completion period. Additionally, FINRA made changes, and is also considering future changes, to the layout of FinPro to more effectively communicate the necessary steps that individuals must take to satisfy their MQP obligations. PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 48923 period close in time with FINRA. Specifically, IEX is proposing to provide Look-Back Individuals enrolled in the MQP in both 2022 and 2023 who did not complete their prescribed 2022 and 2023 CE content as of March 31, 2024, the opportunity to complete such content between the effective date of filing, and July 1, 2024, to be eligible to continue their participation in the MQP. IEX is also proposing to amend the rule to provide that any such individuals who will have completed their prescribed 2022 and 2023 CE content between March 31, 2024, and the effective date of filing, will be deemed to have completed such content by July 1, 2024, for purposes of the rule. IEX has filed the proposed rule change for immediate effectiveness and has requested that the Commission waive the 30-day operative delay. The operative date will be the date of the filing of the proposed rule change if the Commission grants the waiver. 2. Statutory Basis The Exchange believes that its proposal is consistent with the requirements of Sections 6(b) 18 and 6(b)(5) of the Act,19 in particular, in that it is designed to promote just and equitable principles of trade, 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. IEX, like FINRA, believes that reopening the period by which Look-Back Individuals will be able to complete their prescribed 2022 and 2023 CE content is appropriate under the circumstances. IEX, like FINRA, believes that Look-Back Individuals who had enrolled in the MQP in 2022 and 2023 but had not completed their prescribed 2022 and 2023 CE content by the March 31, 2024, deadline may have been confused, as described above. IEX, like FINRA, continues to believe that participation in the MQP reduces unnecessary impediments to requalification without diminishing investor protection.20 In addition, the MQP promotes other goals, such as diversity and inclusion in the securities industry by attracting and retaining a broader and diverse group of professionals. The MQP also allows the industry to retain expertise from skilled individuals, providing investors with 18 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 20 As of April 15, 2024, approximately 31,000 individuals, including approximately 20,000 LookBack Individuals, have enrolled in the MQP, of which approximately 1,400 individuals have used the MQP to return to the industry without having to go through requalification. 19 15 E:\FR\FM\10JNN1.SGM 10JNN1 48924 Federal Register / Vol. 89, No. 112 / Monday, June 10, 2024 / Notices the advantage of greater experience among the individuals working in the industry. IEX, like FINRA, believes that reopening the CE completion period, as proposed, will further these goals and objectives. The Exchange believes the proposed rule change is consistent with the provisions of Section 6(b)(5) of the Act,21 which requires, among other things, that Exchange Rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, and Section 6(c)(3) of the Act,22 which authorizes the Exchange to prescribe standards of training, experience and competence for persons associated with Exchange. Finally, as described in the Purpose section, the proposed rule change seeks to align the Exchange Rules with changes to FINRA rules which have been allowed to take effect by the Commission.23 Thus, this rule change raises no novel issues that have not already been considered by and accepted by the Commission. 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 that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that the proposed rule change, which harmonizes its rules with rule changes adopted by FINRA, will reduce the regulatory burden placed on market participants engaged in trading activities across different markets. lotter on DSK11XQN23PROD with NOTICES1 C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. 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 from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 21 15 U.S.C. 78f(b)(5). U.S.C. 78f(c)(3). 23 See supra note 8. 22 15 VerDate Sep<11>2014 17:13 Jun 07, 2024 Jkt 262001 19(b)(3)(A) of the Act 24 and Rule 19b– 4(f)(6) thereunder.25 A proposed rule change filed under Rule 19b–4(f)(6) 26 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),27 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. IEX, like FINRA, requests that the proposed rule change become operative as quickly as possible so that FINRA, on behalf of IEX, can communicate the rule change to impacted individuals in a timely manner. Waiver of the 30-day operative delay would also allow the Exchange to implement the reopening of the MQP completion period in time with FINRA, thereby substantially eliminating the existence of a regulatory gap between the FINRA and Exchange rules, providing more uniform standards across the securities industry, and helping to provide clarity and avoid ongoing confusion for Exchange Members 28 that are also FINRA members. For these reasons, 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.29 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 under Section 19(b)(2)(B) 30 of the Act to determine whether the proposed rule 24 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. IEX has satisfied this requirement. 26 17 CFR 240.19b–4(f)(6). 27 17 CFR 240.19b–4(f)(6)(iii). 28 See IEX Rule 1.160(s). 29 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). 30 15 U.S.C. 78s(b)(2)(B). 25 17 PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 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 rule-comments@ sec.gov. Please include file number SR– IEX–2024–10 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–IEX–2024–10. 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. 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–IEX–2024–10 and should be submitted on or before July 1, 2024. E:\FR\FM\10JNN1.SGM 10JNN1 Federal Register / Vol. 89, No. 112 / Monday, June 10, 2024 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.31 Sherry R. Haywood, Assistant Secretary. Dated: June 6, 2024. Vanessa A. Countryman, Secretary. [FR Doc. 2024–12741 Filed 6–6–24; 4:15 pm] BILLING CODE 8011–01–P [FR Doc. 2024–12591 Filed 6–7–24; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION SECURITIES AND EXCHANGE COMMISSION [Release No. 34–100272; File No. SR– NYSEAMER–2024–34] Sunshine Act Meetings 2:00 p.m. on Thursday, June 13, 2024. 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. lotter on DSK11XQN23PROD with NOTICES1 TIME AND DATE: (Authority: 5 U.S.C. 552b) Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend Rule 903 June 4, 2024. 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 May 30, 2024, NYSE American LLC (‘‘NYSE American’’ or ‘‘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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rule 903 (Series of Options Open For Trading) and to make certain conforming changes. 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. 1 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 31 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 17:13 Jun 07, 2024 Jkt 262001 PO 00000 Frm 00059 Fmt 4703 48925 A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to amend Rule 903 (Series of Options Open For Trading) to adopt a Monthly Options Series Program; to adopt a Low-Priced Strike Priced Interval Program; to permit the listing and trading of five additional classes with Short Term Option Daily Expirations; to permit Tuesday and Thursday expirations for certain classes with Short Term Option Daily Expirations; and to permit the listing of two Wednesday expirations for options on certain ETPs. Each of the proposed changes would align Exchange rules with already-approved and implemented rules in place on at least one other options exchange as noted herein. Monthly Options Series Program The Exchange proposes to amend its Rules to accommodate the listing of options series that would expire at the close of business on the last business day of a calendar month (‘‘Monthly Options Series’’). This is a competitive filing that is based on a proposal recently submitted Cboe Exchange, Inc (‘‘CBOE’’).4 Pursuant to proposed Commentary .11 to Rule 903 and Rule 903C(a)(v), the Exchange may list Monthly Options Series for up to five currently listed option classes that are either index options or options on exchange-traded funds (‘‘ETFs’’).5 In addition, the Exchange may also list Monthly Options Series on any options classes that are selected by other securities exchanges that employ a similar program under their respective rules.6 The Exchange 4 See Securities Exchange Act Release No. 98915 (Nov. 13, 2023) 88 FR 81495 (November 17, 2023 (SR–CBOE–2023–049) (Order Approving a Proposed Rule Change To Adopt Monthly Options Series). See also Cboe Rules 4.5, 4.11, 8.31, and 8.32. 5 The Exchange proposes to amend Rule 903(h) to provide that new Commentary .11 to Rule 903 (which has been in Reserve) will describe how the Exchange will fix a specific expiration date and exercise price for Monthly Options Series and that proposed Commentary .11 to Rule 903 will govern the procedures for opening Monthly Options Series, respectively. This is consistent with language in current Rule 903 for other Short Term Options Series and Quarterly Options Series. Consistent with this proposal, the Exchange proposes to adopt a definition of Monthly options Series. See proposed Rule 1.1. 6 The Exchange’s proposal is based on CBOE’s approved rule change, see supra note 4. The Exchange notes that other options exchanges have since adopted similar programs. See, e.g., Securities Exchange Act Release No. 98973 (November 16, 2023) 88 FR 81495 (November 22, 2023) (SR– Continued Sfmt 4703 E:\FR\FM\10JNN1.SGM 10JNN1

Agencies

[Federal Register Volume 89, Number 112 (Monday, June 10, 2024)]
[Notices]
[Pages 48922-48925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12591]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-100265; File No. SR-IEX-2024-10]


Self-Regulatory Organizations: Investors Exchange LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend IEX 
Rule 2.160(p) To Reopen the Period by Which Certain Participants in the 
Maintaining Qualifications Program Will Be Able To Complete Their 
Prescribed 2022 and 2023 Continuing Education Content

June 4, 2024.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on May 22, 2024, the Investors Exchange LLC (``IEX'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Pursuant to the provisions of Section 19(b)(1) under the Act,\4\ 
and Rule 19b-4 thereunder,\5\ the Exchange is filing with the 
Commission a proposed rule change to amend IEX Rule 2.160(p) to reopen 
the period by which certain participants in the Maintaining 
Qualifications Program will be able to complete their prescribed 2022 
and 2023 continuing education content. The Exchange has designated this 
proposal as non-controversial pursuant to Section 19(b)(3)(A)(iii) of 
the Act \6\ and provided the Commission with the notice required by 
Rule 19b-4(f)(6)(iii) thereunder.\7\
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 17 CFR 240.19b-4.
    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6)(iii).
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    The text of the proposed rule change is available at the Exchange's 
website at www.iextrading.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 the 
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 these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    IEX is proposing to amend Supplementary Material .01 to IEX Rule 
2.160(p)(c) to reopen the period by which certain participants in the 
Maintaining Qualifications Program (``MQP'') will be able to complete 
their prescribed 2022 and 2023 continuing education (``CE'') content. 
This proposed rule change is based on a substantively similar filing 
made by the Financial Industry Regulatory Authority, Inc. (``FINRA''), 
which amended FINRA's equivalent rule,

[[Page 48923]]

FINRA Rule 1240.01, to reopen the period by which certain participants 
in the MQP will be able to complete their prescribed 2022 and 2023 
CE.\8\
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    \8\ See Securities Exchange Act Release No. 100067 (May 6, 2024) 
89 FR 40520 (May 10, 2024) (SR-FINRA-2023-005) (``FINRA MQP 
Extension Filing'').
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    FINRA Rule 1240.01, as described in Supplementary Material .01 to 
IEX Rule 2.160(p)(c), extended the option to participate in the MQP to 
individuals who: (1) were registered as a representative or principal 
within two years immediately prior to March 15, 2022 (the 
implementation date of the MQP); and (2) individuals who were 
participating in the Financial Services Affiliate Waiver Program 
(``FSAWP'') \9\ pursuant to Supplementary Material .01 to Rule 2.160(g) 
immediately prior to March 15, 2022 (collectively, ``Look-Back 
Individuals'').\10\ FINRA Rule 1240.01 provided two open enrollment 
periods for Look-Back Individuals to participate in the MQP 
(Supplementary Material .01 to IEX Rule 2.160(p)(c) provided one open 
enrollment period for Look-Back Individuals).\11\ FINRA and IEX 
provided all Look-Back Individuals who had enrolled in the MQP until 
March 31, 2024, to complete any prescribed 2022 and 2023 CE 
content.\12\ Look-Back Individuals who are enrolled in the MQP, similar 
to other MQP participants, are able to complete any prescribed CE and 
renew their annual MQP participation through their FINRA Financial 
Professional Gateway (``FinPro'') accounts.
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    \9\ The FSAWP is a waiver program for eligible individuals who 
have left a member firm to work for a foreign or domestic financial 
services affiliate of a member firm. FINRA stopped accepting new 
participants for the FSAWP beginning on March 15, 2022; however, 
individuals who were already participating in the FSAWP prior to 
that date had the option of continuing in the FSAWP.
    \10\ Supplementary Material .01 to IEX Rule 2.160(p)(c) refers 
to FINRA's initial enrollment period for ``Look-Back Individuals'' 
who were registered in a representative or principal registration 
category with FINRA within two years immediately preceding March 15, 
2022, but that initial enrollment period was not part of IEX's rule.
    \11\ In March 2023, FINRA amended Rule 1240.01 to provide Look-
Back Individuals with a second opportunity to participate in the MQP 
for eligible persons who elected to participate between March 15, 
2023 and December 31, 2023. See Securities Exchange Act Release No. 
97184 (March 22, 2023), 88 FR 18359 (March 28, 2023) (SR-FINRA-2023-
005). In July 2023, IEX amended Supplementary Material .01 to IEX 
Rule 2.160(p)(c) to also offer a new enrollment period for eligible 
persons who elected to participate between July 13, 2023 and 
December 31, 2023. See Securities Exchange Act Release No. 97980 
(July 25, 2023) 88 FR 49542 (July 31, 2023) (SR-IEX-2023-07).
    \12\ FINRA determined to treat the individuals who enrolled 
during the first period (between January 31, 2022, and March 15, 
2022) the same as those who enrolled during the second period 
(between March 15, 2023, and December 31, 2023) for purposes of the 
March 31, 2024, deadline for completion of prescribed 2022 and 2023 
CE content. This is because those who had enrolled in the MQP during 
the first period satisfied all of the eligibility criteria for 
enrollment during the second period and would have been able to 
complete their prescribed CE content by March 31, 2024, had they 
chosen to enroll during the second period instead of enrolling 
during the first period.
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    On March 16, 2024, FINRA on its own behalf and on behalf of IEX, 
sent an email to Look-Back Individuals who had enrolled in the MQP but 
had not completed their prescribed CE to remind them of the March 31, 
2024, deadline.\13\ In the week leading up to the deadline, however, 
FINRA noticed that several thousand of those individuals were renewing 
their participation in the MQP for 2024 instead of completing their 
prescribed CE.\14\ FINRA believes that some of those individuals may 
have been confused by the layout of their FinPro accounts.\15\ 
Specifically, if they selected the 2024 renewal banner, which was 
prominently displayed on their FinPro accounts, and completed the 
renewal process, they would not have been automatically redirected to 
complete any prescribed CE. Therefore, individuals may have 
inadvertently assumed that completion of the renewal process alone 
would have satisfied all of the necessary requirements to continue 
their participation in the MQP.\16\
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    \13\ As noted in the FINRA MQP Extension Filing, FINRA had sent 
multiple reminders prior to March 16, 2024, but the March 16, 2024, 
email was the last reminder that was sent prior to the March 31, 
2024, deadline for completion of any prescribed 2022 and 2023 CE 
content.
    \14\ Look-Back Individuals who enrolled in the MQP have until 
December 31, 2024, to renew their participation in the MQP for 2024, 
provided that they complete their prescribed CE by the stated 
deadline.
    \15\ See supra note 8.
    \16\ A number of these individuals contacted FINRA to confirm 
whether they were required to satisfy any additional requirements 
other than completing the 2024 renewal. To provide FINRA with 
additional time to assess the situation, FINRA temporarily changed 
the March 31, 2024, due date for CE completion in its systems. This 
may have compounded the confusion because any Look-Back Individual 
who may have logged into their FinPro account during this time would 
have seen an interim CE completion date and would have been able to 
complete their prescribed CE content based on that interim CE 
completion date.
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    For these reasons, FINRA amended Rule 1240.01 to reopen the period 
by which certain participants in the MQP will be able to complete their 
prescribed 2022 and 2023 CE.\17\ IEX now proposes to amend 
Supplementary Material .01 to IEX Rule 2.160(p)(c) to implement the 
reopening of the MQP completion period close in time with FINRA. 
Specifically, IEX is proposing to provide Look-Back Individuals 
enrolled in the MQP in both 2022 and 2023 who did not complete their 
prescribed 2022 and 2023 CE content as of March 31, 2024, the 
opportunity to complete such content between the effective date of 
filing, and July 1, 2024, to be eligible to continue their 
participation in the MQP. IEX is also proposing to amend the rule to 
provide that any such individuals who will have completed their 
prescribed 2022 and 2023 CE content between March 31, 2024, and the 
effective date of filing, will be deemed to have completed such content 
by July 1, 2024, for purposes of the rule.
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    \17\ In the FINRA MQP Extension Filing, FINRA described its 
plans to reach out to all impacted individuals and inform them of 
the new CE completion period. Additionally, FINRA made changes, and 
is also considering future changes, to the layout of FinPro to more 
effectively communicate the necessary steps that individuals must 
take to satisfy their MQP obligations.
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    IEX has filed the proposed rule change for immediate effectiveness 
and has requested that the Commission waive the 30-day operative delay. 
The operative date will be the date of the filing of the proposed rule 
change if the Commission grants the waiver.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with the 
requirements of Sections 6(b) \18\ and 6(b)(5) of the Act,\19\ in 
particular, in that it is designed to promote just and equitable 
principles of trade, 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. IEX, like FINRA, believes 
that reopening the period by which Look-Back Individuals will be able 
to complete their prescribed 2022 and 2023 CE content is appropriate 
under the circumstances. IEX, like FINRA, believes that Look-Back 
Individuals who had enrolled in the MQP in 2022 and 2023 but had not 
completed their prescribed 2022 and 2023 CE content by the March 31, 
2024, deadline may have been confused, as described above. IEX, like 
FINRA, continues to believe that participation in the MQP reduces 
unnecessary impediments to requalification without diminishing investor 
protection.\20\ In addition, the MQP promotes other goals, such as 
diversity and inclusion in the securities industry by attracting and 
retaining a broader and diverse group of professionals. The MQP also 
allows the industry to retain expertise from skilled individuals, 
providing investors with

[[Page 48924]]

the advantage of greater experience among the individuals working in 
the industry. IEX, like FINRA, believes that reopening the CE 
completion period, as proposed, will further these goals and 
objectives.
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    \18\ 15 U.S.C. 78f(b).
    \19\ 15 U.S.C. 78f(b)(5).
    \20\ As of April 15, 2024, approximately 31,000 individuals, 
including approximately 20,000 Look-Back Individuals, have enrolled 
in the MQP, of which approximately 1,400 individuals have used the 
MQP to return to the industry without having to go through 
requalification.
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    The Exchange believes the proposed rule change is consistent with 
the provisions of Section 6(b)(5) of the Act,\21\ which requires, among 
other things, that Exchange Rules must be designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, and, in general, to protect investors 
and the public interest, and Section 6(c)(3) of the Act,\22\ which 
authorizes the Exchange to prescribe standards of training, experience 
and competence for persons associated with Exchange.
---------------------------------------------------------------------------

    \21\ 15 U.S.C. 78f(b)(5).
    \22\ 15 U.S.C. 78f(c)(3).
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    Finally, as described in the Purpose section, the proposed rule 
change seeks to align the Exchange Rules with changes to FINRA rules 
which have been allowed to take effect by the Commission.\23\ Thus, 
this rule change raises no novel issues that have not already been 
considered by and accepted by the Commission.
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    \23\ See supra note 8.
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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 that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange believes that 
the proposed rule change, which harmonizes its rules with rule changes 
adopted by FINRA, will reduce the regulatory burden placed on market 
participants engaged in trading activities across different markets.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

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 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 \24\ and Rule 19b-
4(f)(6) thereunder.\25\
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    \24\ 15 U.S.C. 78s(b)(3)(A).
    \25\ 17 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. 
IEX has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \26\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\27\ 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. IEX, like FINRA, requests 
that the proposed rule change become operative as quickly as possible 
so that FINRA, on behalf of IEX, can communicate the rule change to 
impacted individuals in a timely manner. Waiver of the 30-day operative 
delay would also allow the Exchange to implement the reopening of the 
MQP completion period in time with FINRA, thereby substantially 
eliminating the existence of a regulatory gap between the FINRA and 
Exchange rules, providing more uniform standards across the securities 
industry, and helping to provide clarity and avoid ongoing confusion 
for Exchange Members \28\ that are also FINRA members. For these 
reasons, 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.\29\
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    \26\ 17 CFR 240.19b-4(f)(6).
    \27\ 17 CFR 240.19b-4(f)(6)(iii).
    \28\ See IEX Rule 1.160(s).
    \29\ 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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    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 under 
Section 19(b)(2)(B) \30\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \30\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-IEX-2024-10 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-IEX-2024-10. 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. 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-IEX-2024-10 and 
should be submitted on or before July 1, 2024.


[[Page 48925]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\31\
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    \31\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-12591 Filed 6-7-24; 8:45 am]
BILLING CODE 8011-01-P
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