Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Supplementary Material .70 Under NYSE Rule 345A, 53128-53131 [2024-13828]
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Federal Register / Vol. 89, No. 122 / Tuesday, June 25, 2024 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
Dated: June 20, 2024.
For the Nuclear Regulatory Commission.
Yoira Diaz-Sanabria,
Chief, Storage and Transportation Licensing
Branch, Division of Fuel Management, Office
of Nuclear Material Safety and Safeguards.
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
[FR Doc. 2024–13870 Filed 6–24–24; 8:45 am]
Service’s request(s) can be accessed via
BILLING CODE 7590–01–P
the Commission’s website (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
POSTAL REGULATORY COMMISSION
can be accessed through compliance
[Docket Nos. MC2024–377 and CP2024–385; with the requirements of 39 CFR
MC2024–378 and CP2024–386; MC2024–379 3011.301.1
and CP2024–387; MC2024–380 and CP2024–
The Commission invites comments on
388]
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
New Postal Products
with the policies of title 39. For
AGENCY: Postal Regulatory Commission.
request(s) that the Postal Service states
ACTION: Notice.
concern Market Dominant product(s),
applicable statutory and regulatory
SUMMARY: The Commission is noticing a
requirements include 39 U.S.C. 3622, 39
recent Postal Service filing for the
U.S.C. 3642, 39 CFR part 3030, and 39
Commission’s consideration concerning CFR part 3040, subpart B. For request(s)
a negotiated service agreement. This
that the Postal Service states concern
notice informs the public of the filing,
Competitive product(s), applicable
invites public comment, and takes other statutory and regulatory requirements
administrative steps.
include 39 U.S.C. 3632, 39 U.S.C. 3633,
DATES: Comments are due: June 27,
39 U.S.C. 3642, 39 CFR part 3035, and
2024.
39 CFR part 3040, subpart B. Comment
deadline(s) for each request appear in
ADDRESSES: Submit comments
section II.
electronically via the Commission’s
Filing Online system at https://
II. Docketed Proceeding(s)
www.prc.gov. Those who cannot submit
1. Docket No(s).: MC2024–377 and
comments electronically should contact
the person identified in the FOR FURTHER CP2024–385; Filing Title: USPS Request
to Add Priority Mail & USPS Ground
INFORMATION CONTACT section by
Advantage Contract 282 to Competitive
telephone for advice on filing
Product List and Notice of Filing
alternatives.
Materials Under Seal; Filing Acceptance
FOR FURTHER INFORMATION CONTACT:
Date: June 18, 2024; Filing Authority: 39
David A. Trissell, General Counsel, at
U.S.C. 3642, 39 CFR 3040.130 through
202–789–6820.
3040.135, and 39 CFR 3035.105; Public
SUPPLEMENTARY INFORMATION:
Representative: Alireza Motameni;
Comments Due: June 27, 2024.
Table of Contents
2. Docket No(s).: MC2024–378 and
I. Introduction
CP2024–388; Filing Title: USPS Request
II. Docketed Proceeding(s)
to Add Priority Mail & USPS Ground
Advantage Contract 283 to Competitive
I. Introduction
The Commission gives notice that the Product List and Notice of Filing
Materials Under Seal; Filing Acceptance
Postal Service filed request(s) for the
Commission to consider matters related Date: June 18, 2024; Filing Authority: 39
U.S.C. 3642, 39 CFR 3040.130 through
to negotiated service agreement(s). The
3040.135, and 39 CFR 3035.105; Public
request(s) may propose the addition or
Representative: Alireza Motameni;
removal of a negotiated service
agreement from the Market Dominant or Comments Due: June 27, 2024.
3. Docket No(s).: MC2024–379 and
the Competitive product list, or the
CP2024–387; Filing Title: USPS Request
modification of an existing product
to Add Priority Mail Express, Priority
currently appearing on the Market
Mail & USPS Ground Advantage
Dominant or the Competitive product
Contract 119 to Competitive Product
list.
List and Notice of Filing Materials
Section II identifies the docket
Under Seal; Filing Acceptance Date:
number(s) associated with each Postal
June 18, 2024; Filing Authority: 39
Service request, the title of each Postal
Service request, the request’s acceptance
1 See Docket No. RM2018–3, Order Adopting
date, and the authority cited by the
Final Rules Relating to Non-Public Information,
Postal Service for each request. For each June 27, 2018, Attachment A at 19–22 (Order No.
4679).
request, the Commission appoints an
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U.S.C. 3642, 39 CFR 3040.130 through
3040.135, and 39 CFR 3035.105; Public
Representative: Christopher C. Mohr;
Comments Due: June 27, 2024.
4. Docket No(s).: MC2024–380 and
CP2024–388; Filing Title: USPS Request
to Add Priority Mail Express, Priority
Mail & USPS Ground Advantage
Contract 120 to Competitive Product
List and Notice of Filing Materials
Under Seal; Filing Acceptance Date:
June 18, 2024; Filing Authority: 39
U.S.C. 3642, 39 CFR 3040.130 through
3040.135, and 39 CFR 3035.105; Public
Representative: Christopher C. Mohr;
Comments Due: June 27, 2024.
This Notice will be published in the
Federal Register.
Jennie Jbara,
Primary Certifying Official.
[FR Doc. 2024–13916 Filed 6–24–24; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100374; File No. SR–NYSE–
2024–36]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
Supplementary Material .70 Under
NYSE Rule 345A
June 18, 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 June 6,
2024, New York Stock Exchange LLC
(‘‘NYSE’’ 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
The Exchange proposes to amend
Supplementary Material .70 under
NYSE Rule 345A to harmonize with
recent changes to Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
Rule 1240.01 reopening the period by
which certain participants in the
Maintaining Qualifications Program can
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 89, No. 122 / Tuesday, June 25, 2024 / Notices
complete their 2022 and 2023
continuing education content. 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 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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Supplementary Material .70 under
NYSE Rule 345A (Eligibility of Other
Persons to Participate in the Continuing
Education Program Specified in Section
(c) of this Rule) to harmonize with
recent changes to FINRA Rule 1240.01
(Eligibility of Other Persons to
Participate in the Continuing Education
Program Specified in Paragraph (c) of
this Rule) reopening the period by
which certain participants in the
Maintaining Qualifications Program
(‘‘MQP’’) can complete their 2022 and
2023 continuing education (‘‘CE’’)
content. This proposed rule change
would harmonize the Exchange’s CE
rules with those of FINRA and thus
promote uniform CE standards across
the securities industry.4
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Background
The continuing education program for
registered persons of broker-dealers
(‘‘CE Program’’) set forth in Rule 345A 5
requires registered persons to complete
CE consisting of a Regulatory Element
4 See Securities Exchange Act Release No. 100067
(May 6, 2024), 89 FR 40520 (May 10, 2024) (SR–
FINRA–2024–006) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change To Amend
FINRA Rule 1240.01 To Reopen the Period by
Which Certain Participants in the Maintaining
Qualifications Program May Complete Their
Prescribed Continuing Education Content)
(‘‘Release No. 100067’’).
5 See also Commentary .06 to NYSE Rule 1210
(All Registered Representatives and Principals Must
Satisfy the Regulatory Element of Continuing
Education).
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and a Firm Element. The Regulatory
Element, administered by FINRA on
behalf of the Exchange, focuses on
regulatory requirements and industry
standards, while the Firm Element is
provided by each firm and focuses on
securities products, services and
strategies the firm offers, firm policies
and industry trends.
In 2022, the Exchange amended NYSE
Rules 1210 (Registration Requirements)
and 345A (Continuing Education for
Registered Persons) to, among other
things, provide eligible individuals
terminating any of their representative
or principal registration categories the
option of maintaining their qualification
for any terminated registration
categories by completing annual CE
through a new program known as the
MQP.6 The MQP under NYSE Rule
345A.70 contains a look-back provision
that, subject to specified conditions,
extends the option to participate in the
MQP to individuals who: (1) were
registered as a representative or
principal within two years immediately
prior to May 25, 2022 (i.e., the MQP
implementation date); and (2)
individuals who were participating in
the Financial Services Affiliate Waiver
Program (‘‘FSAWP’’) under NYSE Rule
1210, Commentary .08 (Waiver of
Examinations for Individuals Working
for a Financial Services Industry
Affiliate of a Member Organization)
immediately prior to May 25, 2022
(collectively, the ‘‘Look-Back
Individuals’’).7
Given that many eligible individuals
were unable to participate in the MQP
because they failed, for various reasons,
to make an election before March 15,
2022, the Exchange provided Look-Back
Individuals a second opportunity to
elect to participate in the MQP to
maintain their qualification in 2023.8
Specifically, Rule 345A.70 was
amended to provide eligible persons
who elected to participate in the CE
Program between June 7, 2023, and
6 See Securities Exchange Act Release No. 95061
(June 7, 2022), 87 FR 35806 (June 13, 2022) (SR–
NYSE–2022–23) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change for
Amendments to the Exchange’s Rules Regarding
Continuing Education Requirements).
7 The FSAWP is a waiver program for eligible
individuals who have left a member organization to
work for a foreign or domestic financial services
affiliate of a member firm. The Exchange stopped
accepting new participants for the FSAWP
beginning on May 25, 2022; however, individuals
who were already participating in the FSAWP prior
to that date had the option of continuing in the
FSAWP.
8 See Securities Exchange Act Release No. 97741
(June 16, 2023), 88 FR 41434 (June 26, 2023) (SR–
NYSE–2023–24) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change for
Amendments to the Exchange’s Rules Regarding
Continuing Education Requirements).
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53129
December 31, 2023 until March 31, 2024
to complete any prescribed 2022 and
2023 CE. The Exchange’s filing was
based on FINRA’s earlier amendment to
Rule 1240.01.9
Recently, FINRA again amended its
Rule 1240.01 to provide eligible
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 May 22, 2024, and July 1, 2024,
to be eligible to continue their
participation in the MQP.10 FINRA also
amended its rule to provide that any
such individuals who will have
completed their prescribed 2022 and
2023 CE content between March 31,
2024, and May 22, 2024 will be deemed
to have completed such content by July
1, 2024, for purposes of the rule.11
In its filing, FINRA represented that
during the process of reaching out to
Look-Back Individuals who had
enrolled in the MQP but not completed
their prescribed CE to remind them of
the March 31, 2024 deadline, it noticed
that several thousand of those
individuals were renewing their
participation in the MQP for 2024
instead of completing their prescribed
CE.12 FINRA believes that some of those
individuals may have been confused by
the layout of the FINRA Financial
Professional Gateway accounts and 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.13
Proposed Rule Change
NYSE Rule 345A.70 provides that
eligible persons who elect to participate
in the CE Program between June 7, 2023
and December 31, 2023 must complete
9 See id. See also Securities Exchange Act Release
No. 97184 (March 22, 2023), 88 FR 18359 (March
28, 2023) (SR–FINRA–2023–005) (Notice of Filing
and Immediate Effectiveness of a Proposed Rule
Change To Amend FINRA Rule 1240.01 To Provide
Eligible Individuals Another Opportunity To Elect
To Participate in the Maintaining Qualifications
Program). Like FINRA, the Exchange 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 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.
10 See Release No. 100067, 89 FR at 40520.
11 See id.
12 See id. at 40521.
13 See id.
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Federal Register / Vol. 89, No. 122 / Tuesday, June 25, 2024 / Notices
any prescribed 2022 and 2023 CE
content by March 31, 2024. The
Exchange proposes to delete this
language as obsolete.
In addition, in order to harmonize
with FINRA and avoid any potential
regulatory gaps, the Exchange proposes
to add the following text (italicized) to
Rule 345A.70:
Individuals enrolled in the continuing
education program under this
Supplementary Material .70 in both 2022 and
2023 who did not complete their prescribed
2022 and 2023 continuing education content
as of March 31, 2024, shall be able to
complete such content between [the effective
date of filing], and July 1, 2024, to be eligible
to continue their participation in the
continuing education program. In addition,
any such individuals who will have
completed their prescribed 2022 and 2023
continuing education content between March
31, 2024, and [the effective date of filing],
shall be deemed to have completed such
content by July 1, 2024, for purposes of this
Supplementary Material .70.
khammond on DSKJM1Z7X2PROD with NOTICES
The proposed text is substantially
similar to the language adopted by
FINRA in its Rule 1240.01.14
As discussed below, the Exchange
believes that the proposed rule change
is eligible for immediate effectiveness
and has requested that the Commission
waive the requirement that the proposed
rule change not become operative for 30
days after the date of the filing.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Act,15 in general, and furthers the
objectives of Section 6(b)(5),16 in
particular, because 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. Additionally, the
Exchange believes the proposed rule
change is designed to provide a fair
procedure for the disciplining of
members and persons associated with
members, consistent with Sections
6(b)(7) and 6(d) of the Act.17
The Exchange believes that the
proposed rule changes support the
objectives of the Act by harmonizing
Exchange rules modeled on FINRA’s
rules, resulting in less burdensome and
14 See
Release No. 100067, 89 FR at 40520.
U.S.C. 78f(b).
16 15 U.S.C. 78f(b)(5).
17 15 U.S.C. 78f(b)(7) & 78f(d).
15 15
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more efficient regulatory compliance.
The proposed rule change would
provide Look-Back Individuals another
opportunity to complete their
prescribed 2022 and 2023 CE content in
order to remain eligible to continue
their participation in the MQP, thereby
promoting efficiency because
participation in the MQP would reduce
unnecessary impediments to
requalification for these individuals
without diminishing investor
protection. In addition, the Exchange
agrees with FINRA that the proposed
rule change is consistent with other
goals, such as the promotion of diversity
and inclusion in the securities industry,
by attracting and retaining a broader and
diverse group of professionals.18 The
MQP also allows the industry to retain
expertise from skilled individuals,
providing investors with the advantage
of greater experience among the
individuals working in the industry.
The Exchange believes that reopening
the CE completion period, as proposed,
and providing Look-Back Individuals
another opportunity to elect to
participate in the MQP will further
these goals and objectives.
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 the recent rule change adopted by
FINRA, will reduce the regulatory
burden placed on market participants
engaged in trading activities across
different markets. The Exchange
believes that the harmonization of the
CE program requirements across the
various markets will reduce burdens on
competition by removing impediments
to participation in the national market
system and promoting competition
among participants across the multiple
national securities exchanges.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) significantly affect
18 See
PO 00000
Release No. 100067, 89 FR at 40521.
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Fmt 4703
Sfmt 4703
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 19 and Rule 19b–
4(f)(6) thereunder.20
A proposed rule change filed under
Rule 19b–4(f)(6) 21 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),22 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. NYSE, like
FINRA, requests that the proposed rule
change become operative as quickly as
possible so NYSE can communicate the
rule change to impacted individuals in
a timely manner. Waiver of the
operative delay would allow the
Exchange to implement the proposed
changes to its CE rules without delay,
thereby eliminating the possibility of a
significant regulatory gap between the
FINRA and the Exchange rules,
providing more uniform standards
across the securities industry, and
helping to avoid confusion for Exchange
members 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.23
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
19 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
21 17 CFR 240.19b–4(f)(6).
22 17 CFR 240.19b–4(f)(6)(iii).
23 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).
20 17
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Federal Register / Vol. 89, No. 122 / Tuesday, June 25, 2024 / Notices
Commission shall institute proceedings
under Section 19(b)(2)(B) 24 of the Act 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 rule-comments@
sec.gov. Please include file number SR–
NYSE–2024–36 on the subject line.
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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–NYSE–2024–36. 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.
24 15
U.S.C. 78s(b)(2)(B).
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All submissions should refer to file
number SR–NYSE–2024–36 and should
be submitted on or before July 16, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.25
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–13828 Filed 6–24–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100375; File No. SR–
NYSEAMER–2024–39]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change To Amend Supplementary
Material .06 Under NYSE American
Rule 341A
June 18, 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 June 17,
2024, NYSE American LLC (‘‘NYSE
American’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I 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
Supplementary Material .06 under
NYSE American Rule 341A to
harmonize with recent changes to
Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) Rule 1240.01
reopening the period by which certain
participants in the Maintaining
Qualifications Program can complete
their 2022 and 2023 continuing
education content. 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.
25 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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53131
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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Supplementary Material .06 under
NYSE American Rule 341A (Eligibility
of Other Persons to Participate in the
Continuing Education Program
Specified in Section (c) of this Rule) to
harmonize with recent changes to
FINRA Rule 1240.01 (Eligibility of Other
Persons to Participate in the Continuing
Education Program Specified in
Paragraph (c) of this Rule) reopening the
period by which certain participants in
the Maintaining Qualifications Program
(‘‘MQP’’) can complete their 2022 and
2023 continuing education (‘‘CE’’)
content. This proposed rule change
would harmonize the Exchange’s CE
rules with those of FINRA and thus
promote uniform CE standards across
the securities industry.4
Background
The continuing education program for
registered persons of broker-dealers
(‘‘CE Program’’) set forth in Rule 341A 5
requires registered persons to complete
CE consisting of a Regulatory Element
and a Firm Element. The Regulatory
Element, administered by FINRA on
behalf of the Exchange, focuses on
regulatory requirements and industry
standards, while the Firm Element is
provided by each firm and focuses on
securities products, services and
4 See Securities Exchange Act Release No. 100067
(May 6, 2024), 89 FR 40520 (May 10, 2024) (SR–
FINRA–2024–006) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change To Amend
FINRA Rule 1240.01 To Reopen the Period by
Which Certain Participants in the Maintaining
Qualifications Program May Complete Their
Prescribed Continuing Education Content)
(‘‘Release No. 10067’’).
5 See also Commentary .06 to NYSE American
Rule 2.1210 (All Registered Representatives and
Principals Must Satisfy the Regulatory Element of
Continuing Education).
E:\FR\FM\25JNN1.SGM
25JNN1
]]>Agencies
[Federal Register Volume 89, Number 122 (Tuesday, June 25, 2024)]
[Notices]
[Pages 53128-53131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-13828]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100374; File No. SR-NYSE-2024-36]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Supplementary Material .70 Under NYSE Rule 345A
June 18, 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 June 6, 2024, New York Stock Exchange LLC (``NYSE'' 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Supplementary Material .70 under
NYSE Rule 345A to harmonize with recent changes to Financial Industry
Regulatory Authority, Inc. (``FINRA'') Rule 1240.01 reopening the
period by which certain participants in the Maintaining Qualifications
Program can
[[Page 53129]]
complete their 2022 and 2023 continuing education content. 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 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 those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Supplementary Material .70 under
NYSE Rule 345A (Eligibility of Other Persons to Participate in the
Continuing Education Program Specified in Section (c) of this Rule) to
harmonize with recent changes to FINRA Rule 1240.01 (Eligibility of
Other Persons to Participate in the Continuing Education Program
Specified in Paragraph (c) of this Rule) reopening the period by which
certain participants in the Maintaining Qualifications Program
(``MQP'') can complete their 2022 and 2023 continuing education
(``CE'') content. This proposed rule change would harmonize the
Exchange's CE rules with those of FINRA and thus promote uniform CE
standards across the securities industry.\4\
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\4\ See Securities Exchange Act Release No. 100067 (May 6,
2024), 89 FR 40520 (May 10, 2024) (SR-FINRA-2024-006) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend FINRA Rule 1240.01 To Reopen the Period by Which Certain
Participants in the Maintaining Qualifications Program May Complete
Their Prescribed Continuing Education Content) (``Release No.
100067'').
---------------------------------------------------------------------------
Background
The continuing education program for registered persons of broker-
dealers (``CE Program'') set forth in Rule 345A \5\ requires registered
persons to complete CE consisting of a Regulatory Element and a Firm
Element. The Regulatory Element, administered by FINRA on behalf of the
Exchange, focuses on regulatory requirements and industry standards,
while the Firm Element is provided by each firm and focuses on
securities products, services and strategies the firm offers, firm
policies and industry trends.
---------------------------------------------------------------------------
\5\ See also Commentary .06 to NYSE Rule 1210 (All Registered
Representatives and Principals Must Satisfy the Regulatory Element
of Continuing Education).
---------------------------------------------------------------------------
In 2022, the Exchange amended NYSE Rules 1210 (Registration
Requirements) and 345A (Continuing Education for Registered Persons)
to, among other things, provide eligible individuals terminating any of
their representative or principal registration categories the option of
maintaining their qualification for any terminated registration
categories by completing annual CE through a new program known as the
MQP.\6\ The MQP under NYSE Rule 345A.70 contains a look-back provision
that, subject to specified conditions, extends the option to
participate in the MQP to individuals who: (1) were registered as a
representative or principal within two years immediately prior to May
25, 2022 (i.e., the MQP implementation date); and (2) individuals who
were participating in the Financial Services Affiliate Waiver Program
(``FSAWP'') under NYSE Rule 1210, Commentary .08 (Waiver of
Examinations for Individuals Working for a Financial Services Industry
Affiliate of a Member Organization) immediately prior to May 25, 2022
(collectively, the ``Look-Back Individuals'').\7\
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\6\ See Securities Exchange Act Release No. 95061 (June 7,
2022), 87 FR 35806 (June 13, 2022) (SR-NYSE-2022-23) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change for
Amendments to the Exchange's Rules Regarding Continuing Education
Requirements).
\7\ The FSAWP is a waiver program for eligible individuals who
have left a member organization to work for a foreign or domestic
financial services affiliate of a member firm. The Exchange stopped
accepting new participants for the FSAWP beginning on May 25, 2022;
however, individuals who were already participating in the FSAWP
prior to that date had the option of continuing in the FSAWP.
---------------------------------------------------------------------------
Given that many eligible individuals were unable to participate in
the MQP because they failed, for various reasons, to make an election
before March 15, 2022, the Exchange provided Look-Back Individuals a
second opportunity to elect to participate in the MQP to maintain their
qualification in 2023.\8\ Specifically, Rule 345A.70 was amended to
provide eligible persons who elected to participate in the CE Program
between June 7, 2023, and December 31, 2023 until March 31, 2024 to
complete any prescribed 2022 and 2023 CE. The Exchange's filing was
based on FINRA's earlier amendment to Rule 1240.01.\9\
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\8\ See Securities Exchange Act Release No. 97741 (June 16,
2023), 88 FR 41434 (June 26, 2023) (SR-NYSE-2023-24) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change for
Amendments to the Exchange's Rules Regarding Continuing Education
Requirements).
\9\ See id. See also Securities Exchange Act Release No. 97184
(March 22, 2023), 88 FR 18359 (March 28, 2023) (SR-FINRA-2023-005)
(Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change To Amend FINRA Rule 1240.01 To Provide Eligible Individuals
Another Opportunity To Elect To Participate in the Maintaining
Qualifications Program). Like FINRA, the Exchange 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 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.
---------------------------------------------------------------------------
Recently, FINRA again amended its Rule 1240.01 to provide eligible
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 May 22, 2024,
and July 1, 2024, to be eligible to continue their participation in the
MQP.\10\ FINRA also amended its rule to provide that any such
individuals who will have completed their prescribed 2022 and 2023 CE
content between March 31, 2024, and May 22, 2024 will be deemed to have
completed such content by July 1, 2024, for purposes of the rule.\11\
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\10\ See Release No. 100067, 89 FR at 40520.
\11\ See id.
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In its filing, FINRA represented that during the process of
reaching out to Look-Back Individuals who had enrolled in the MQP but
not completed their prescribed CE to remind them of the March 31, 2024
deadline, it noticed that several thousand of those individuals were
renewing their participation in the MQP for 2024 instead of completing
their prescribed CE.\12\ FINRA believes that some of those individuals
may have been confused by the layout of the FINRA Financial
Professional Gateway accounts and 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.\13\
---------------------------------------------------------------------------
\12\ See id. at 40521.
\13\ See id.
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Proposed Rule Change
NYSE Rule 345A.70 provides that eligible persons who elect to
participate in the CE Program between June 7, 2023 and December 31,
2023 must complete
[[Page 53130]]
any prescribed 2022 and 2023 CE content by March 31, 2024. The Exchange
proposes to delete this language as obsolete.
In addition, in order to harmonize with FINRA and avoid any
potential regulatory gaps, the Exchange proposes to add the following
text (italicized) to Rule 345A.70:
Individuals enrolled in the continuing education program under
this Supplementary Material .70 in both 2022 and 2023 who did not
complete their prescribed 2022 and 2023 continuing education content
as of March 31, 2024, shall be able to complete such content between
[the effective date of filing], and July 1, 2024, to be eligible to
continue their participation in the continuing education program. In
addition, any such individuals who will have completed their
prescribed 2022 and 2023 continuing education content between March
31, 2024, and [the effective date of filing], shall be deemed to
have completed such content by July 1, 2024, for purposes of this
Supplementary Material .70.
The proposed text is substantially similar to the language adopted
by FINRA in its Rule 1240.01.\14\
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\14\ See Release No. 100067, 89 FR at 40520.
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As discussed below, the Exchange believes that the proposed rule
change is eligible for immediate effectiveness and has requested that
the Commission waive the requirement that the proposed rule change not
become operative for 30 days after the date of the filing.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\15\ in general, and furthers the objectives of Section
6(b)(5),\16\ in particular, because 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. Additionally, the Exchange believes
the proposed rule change is designed to provide a fair procedure for
the disciplining of members and persons associated with members,
consistent with Sections 6(b)(7) and 6(d) of the Act.\17\
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\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(5).
\17\ 15 U.S.C. 78f(b)(7) & 78f(d).
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The Exchange believes that the proposed rule changes support the
objectives of the Act by harmonizing Exchange rules modeled on FINRA's
rules, resulting in less burdensome and more efficient regulatory
compliance. The proposed rule change would provide Look-Back
Individuals another opportunity to complete their prescribed 2022 and
2023 CE content in order to remain eligible to continue their
participation in the MQP, thereby promoting efficiency because
participation in the MQP would reduce unnecessary impediments to
requalification for these individuals without diminishing investor
protection. In addition, the Exchange agrees with FINRA that the
proposed rule change is consistent with other goals, such as the
promotion of diversity and inclusion in the securities industry, by
attracting and retaining a broader and diverse group of
professionals.\18\ The MQP also allows the industry to retain expertise
from skilled individuals, providing investors with the advantage of
greater experience among the individuals working in the industry. The
Exchange believes that reopening the CE completion period, as proposed,
and providing Look-Back Individuals another opportunity to elect to
participate in the MQP will further these goals and objectives.
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\18\ See Release No. 100067, 89 FR at 40521.
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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 the recent
rule change adopted by FINRA, will reduce the regulatory burden placed
on market participants engaged in trading activities across different
markets. The Exchange believes that the harmonization of the CE program
requirements across the various markets will reduce burdens on
competition by removing impediments to participation in the national
market system and promoting competition among participants across the
multiple national securities exchanges.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days 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 \19\ and Rule 19b-
4(f)(6) thereunder.\20\
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\19\ 15 U.S.C. 78s(b)(3)(A).
\20\ 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.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \21\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\22\ 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. NYSE, like FINRA,
requests that the proposed rule change become operative as quickly as
possible so NYSE can communicate the rule change to impacted
individuals in a timely manner. Waiver of the operative delay would
allow the Exchange to implement the proposed changes to its CE rules
without delay, thereby eliminating the possibility of a significant
regulatory gap between the FINRA and the Exchange rules, providing more
uniform standards across the securities industry, and helping to avoid
confusion for Exchange members 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.\23\
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\21\ 17 CFR 240.19b-4(f)(6).
\22\ 17 CFR 240.19b-4(f)(6)(iii).
\23\ 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
[[Page 53131]]
Commission shall institute proceedings under Section 19(b)(2)(B) \24\
of the Act to determine whether the proposed rule change should be
approved or disapproved.
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\24\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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-NYSE-2024-36 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-NYSE-2024-36. 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-NYSE-2024-36 and
should be submitted on or before July 16, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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\25\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-13828 Filed 6-24-24; 8:45 am]
BILLING CODE 8011-01-P
