Notice2021-18552
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend General 9, Section 51, Research Analysts
Primary source
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Published
August 30, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 165 (Monday, August 30, 2021)</title>
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[Federal Register Volume 86, Number 165 (Monday, August 30, 2021)]
[Notices]
[Pages 48459-48460]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-18552]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92737; File No. SR-BX-2021-035]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend General 9,
Section 51, Research Analysts
August 24, 2021.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 12, 2021, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed with
the Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 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 General 9, Section 51, Research
Analysts.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/bx/rules">https://listingcenter.nasdaq.com/rulebook/bx/rules</a>, 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 Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend General 9, Section 51, Research
Analysts. Specifically, the Exchange proposes to (1) remove references
to FINRA Rules 1120 \3\ and 1250; \4\ and (2) add references to FINRA
Rules 1240 and 1220(a)(6), (a)(14) and (b)(6).
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\3\ BX Rule 1050 (subsequently renumbered as General 9, Section
51) originally referred to NASD Rule 1120, Continuing Education
Requirements. See Securities Exchange Act Release Nos. 84353
(October 3, 2018), 83 FR 50999 (October 10, 2018) (SR-BX-2018-047)
(Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Amend, Reorganize and Enhance Membership, Registration and
Qualification Rules, and To Make Conforming Changes to Certain Other
Rules); and 87468 (November 5, 2019), 84 FR 61091 (November 12,
2019) (SR-BX-2019-039) (Notice of Filing and Immediate Effectiveness
of Proposed Rule Change To Relocate Rules From Its Current Rulebook
Into Its New Rulebook Shell) (renumbering BX Rule 1050 as General 9,
Section 51). The SEC approved the adoption of NASD Rule 1120
(Continuing Education Requirements) as new FINRA Rule 1250
(Continuing Education Requirements) subject to certain amendments,
effective on October 17, 2011. See Securities Exchange Act Release
No. 64687 (June 16, 2011); 76 FR 36586 (June 22, 2011) (SR-FINRA-
2011-013) (Notice of Filing of Amendment No. 1 and Order Granting
Accelerated Approval of a Proposed Rule Change, as Modified by
Amendment No. 1, Establishing a Registration Category, Qualification
Examination and Continuing Education Requirements for Certain
Operations Personnel, and Adopt FINRA Rule 1250 (Continuing
Education Requirements) in the Consolidated FINRA Rulebook). See
also note 5 below.
\4\ FINRA Rule 1250 was renumbered as FINRA Rule 1240. See note
5 below.
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By way of background, FINRA previously deleted in their entirety
the NASD Rule 1000 Series relating to registration of Principals and
Representatives and adopted rules relating to qualification and
registration requirements in the Consolidated FINRA Rulebook.\5\ In
that rule change, FINRA Rule 1250 was renumbered to FINRA Rule 1240.\6\
FINRA Rule 1240 describes continuing education requirements applicable
to registered persons and consists of a Regulatory Element and a Firm
Element.
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\5\ See Securities Exchange Act Release No. 81098 (July 7,
2017), 82 FR 32419 (July 13, 2017) (SR-FINRA-2017-007) (Order
Approving Proposed Rule Change To Adopt Consolidated Registration
Rules, Restructure the Representative-Level Qualification
Examination Program, Allow Permissive Registration, Establish Exam
Waiver Process for Persons Working for Financial Services Affiliate
of Member, and Amend the Continuing Education Requirements).
\6\ Id.
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BX subsequently filed a rule change \7\ to amend, reorganize and
enhance certain of its corresponding membership, registration and
qualification requirements rules in part in response to the FINRA Rule
Changes,\8\ and also in order to facilitate
[[Page 48460]]
the adoption of similar membership, registration and qualification
rules by BX's affiliated exchanges. In that rule change, BX amended its
Rule 1050 (now General 9, Section 51) to remove references to NASD
Rules 2711, 1050, 1022 and 1120 and it replaced those references with
FINRA Rules 1120, 1250, and 2241.\9\ The reference to FINRA Rule 1120
was in error because, at that time, FINRA Rule 1120 did not exist. NASD
Rule 1120 was adopted as FINRA Rule 1250.\10\ Also, the references to
FINRA Rule 1250 were in error because FINRA Rule 1250 was renumbered as
FINRA Rule 1240.\11\ Of note, NASD Rules 1050 (Registration of Research
Analysts) and 1022 (Categories of Principal Registrations) were
superseded by the FINRA Rule 1200 Series but this was not reflected
within SR-FINRA-2018-078 [sic].\12\
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\7\ See Securities Exchange Act Release No. 84353 (October 3,
2018), 84 FR 50999 (October 10, 2018) (SR-BX-2018-047) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend,
Reorganize and Enhance Membership, Registration and Qualification
Rules, and To Make Conforming Changes to Certain Other Rules).
\8\ See note 5 above.
\9\ See note 7 above.
\10\ See note 3 above.
\11\ See notes 4 and 5 above.
\12\ See note 5 above.
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At this time, Nasdaq [sic] proposes to remove the incorrect
references to FINRA Rules 1120 and 1250 as such rules do not exist. The
Exchange proposes to update the reference to FINRA Rule 1250 with a
reference to current FINRA Rule 1240. The Exchange also proposes to add
references to FINRA Rules 1220(a)(6), (a)(14), and (b)(6), because they
correspond to previous NASD Rules 1050 and 1022. These changes would
reflect the current FINRA rules relating to research analysts.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\13\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\14\ in particular, in that it is designed to
promote just and equitable principles of trade and to protect investors
and the public interest. The Exchange's proposal to remove inaccurate
FINRA rule references from General 9, Section 51 and replace them with
references to current FINRA rules that apply to research analysts and
[sic] is consistent with the Act. The Exchange's proposal will align
Nasdaq's [sic] rule to FINRA rules.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
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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 not necessary or appropriate in
furtherance of the purposes of the Act. The proposed amendments do not
impose an undue burden on competition as the proposal will amend the
Exchange's General 9, Section 51 to remove inaccurate FINRA rule
references and replace them with references to current FINRA Rules that
apply to research analysts.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
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 \15\ and Rule 19b-
4(f)(6) thereunder.\16\
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
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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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#453730292068262a2828202b3136053620266b222a33"><span class="__cf_email__" data-cfemail="87f5f2ebe2aae4e8eaeae2e9f3f4c7f4e2e4a9e0e8f1">[email protected]</span></a>. Please include
File Number SR-BX-2021-035 on the subject line.
Paper Comments
<bullet> 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-BX-2021-035. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>
). 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. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-BX-2021-035 and should be submitted on
or before September 20, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2021-18552 Filed 8-27-21; 8:45 am]
BILLING CODE 8011-01-P
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