Notice2021-25351
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend FINRA Fees
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 22, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 222 (Monday, November 22, 2021)</title>
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[Federal Register Volume 86, Number 222 (Monday, November 22, 2021)]
[Notices]
[Pages 66363-66365]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25351]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93584; File No. SR-MRX-2021-11]
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend FINRA Fees
November 16, 2021.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on November 5, 2021, Nasdaq MRX, LLC (``MRX'' or ``Exchange'')
filed with the Securities and Exchange Commission (the ``Commission'')
the proposed rule change as described in Items I, II, and III below,
which Items have been prepared by the Exchange. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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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 MRX's Pricing Schedule at Options 7,
Section 5, Other Options Fees and Rebates, to reflect adjustments to
FINRA Registration Fees. Additionally, this rule change adds Continuing
Education Fees.
While the changes proposed herein are effective upon filing, the
Exchange has designated the amendments become operative on January 2,
2022.\3\
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\3\ See Securities Exchange Act Release No. 90176 (October 14,
2020), 85 FR 66592 (October 20, 2020) (SR-FINRA-2020-032) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Adjust FINRA Fees To Provide Sustainable Funding for FINRA's
Regulatory Mission).
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The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/mrx/rules">https://listingcenter.nasdaq.com/rulebook/mrx/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
This proposal amends MRX's Pricing Schedule at Options 7, Section
5, Other Options Fees and Rebates, to reflect adjustments to FINRA
Registration Fees.\4\ Additionally, this rule change adds Continuing
Education Fees. The FINRA fees are collected and retained by FINRA via
Web CRD for the registration of employees of MRX members that are not
FINRA members (``Non-FINRA members''). The Exchange is merely listing
these fees on its Pricing Schedule. The Exchange does not collect or
retain these fees.
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\4\ FINRA operates Web CRD, the central licensing and
registration system for the U.S. securities industry. FINRA uses Web
CRD to maintain the qualification, employment and disciplinary
histories of registered associated persons of broker-dealers.
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Today, MRX Options 7, Section 5D, provides a list of FINRA Web CRD
Fees, Fingerprint Processing Fees, and Continuing Education Fees. The
Exchange proposes to amend the introductory paragraph to add a sentence
to make clear that FINRA collects the fees listed within Options 7,
Section 5D on behalf of the Exchange. The fees listed within Options 7,
Section 5D reflect fees set by FINRA.
Specifically, with respect to the General Registration Fees, the
Exchange proposes to increase the $100 fee to $125 for each initial
Form U4 filed for the registration of a representative or principal.
This amendment is made in accordance with a recent FINRA rule change to
adjust to its fees.\5\
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\5\ Id. FINRA noted in its rule change that it was adjusting its
fees to provide sustainable funding for FINRA's regulatory mission.
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The Exchange also proposes to add Continuing Education Fees to
reflect current fees assessed by FINRA. The Exchange proposes to
provide an introductory paragraph which states, ``The Continuing
Education Fee will be assessed as to each individual who is required to
complete the Regulatory Element of the Continuing Education
Requirements pursuant to Exchange General 4, Section 1240. This fee is
paid directly to FINRA.'' Additionally, the Exchange proposes to add
the following rule text, ``$100.00 ($55.00 if the Continuing Education
is Web-based) for each individual who is required to complete the S101
or S201.'' This proposed rule text reflects FINRA's current S101 and
S201 registration fees.\6\ This amendment will make clear the current
Continuing Education Fees that FINRA assesses today.
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\6\ See Securities Exchange Act Release No. 75581 (July 31,
2015), 80 FR 47018 (August 6, 2015) (SR-FINRA-2015-015) (Order
Approving a Proposed Rule Change to Provide a Web-based Delivery
Method for Completing the Regulatory Element of the Continuing
Education Requirements).
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The FINRA Web CRD Fees are user-based and there is no distinction
in the cost incurred by FINRA if the user is a FINRA member or a Non-
FINRA member. Accordingly, the proposed fees mirror those currently
assessed by FINRA.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b)
[[Page 66364]]
of the Act,\7\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\8\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility, and is
not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes it is reasonable to increase the $100 fee for
each initial Form U4 filed for the registration of a representative or
principal to $125 in accordance with an adjustment to FINRA's fees.\9\
The Exchange's rule text will reflect the current registration rate
that will be assessed by FINRA as of January 2, 2022. Additionally,
making clear that FINRA, on behalf of the Exchange, will bill and
collect these fees will bring greater transparency to its fees. Also,
adding Continuing Education Fees to reflect the current fee of $100.00
for each individual who is required to complete the S101 or S201 and
$55.00 if the Continuing Education is Web-based will bring greater
transparency to the Continuing Education fees currently assessed by
FINRA. Finally, referencing the rule which governs the Regulatory
Element of the Continuing Education Requirements and, noting that the
fee is paid directly to FINRA, will provide more information to Members
regarding the fees for Continuing Education. The proposed fees are
identical to those adopted by FINRA for use of Web CRD for disclosure
and the registration of FINRA members and their associated persons.
These costs are borne by FINRA when a Non-FINRA member uses Web CRD.
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\9\ See note 3 above.
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The Exchange believes that its proposal to increase the $100 fee
for each initial Form U4 filed for the registration of a representative
or principal to $125 is equitable and not unfairly discriminatory as
the amendment will reflect the current fee that will be assessed by
FINRA to all Members who require Form U4 filings as of January 2, 2022.
Additionally, reflecting the current Continuing Education Fees for the
S101 or S201 is equitable and not unfairly discriminatory as FINRA
currently assesses these rates to all Members that are required to have
those registrations. Finally, making clear that FINRA, on behalf of the
Exchange, will bill and collect these fees and referencing the rule
which governs the Regulatory Element of the Continuing Education
Requirements will bring greater transparency to FINRA's fees. Further,
the proposal is also equitable and not unfairly discriminatory because
the Exchange will not be collecting or retaining these fees, therefore,
the Exchange will not be in a position to apply them in an inequitable
or unfairly discriminatory manner.
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 Exchange does not believe
that this proposal creates an unnecessary or inappropriate inter-market
burden on competition as FINRA's fees apply to all market participants.
Additionally, the Exchange does not believe that this proposal creates
an unnecessary or inappropriate intra-market burden on competition as
the increased fee for each initial Form U4 filed for the registration
of a representative or principal will be assessed by FINRA to all
Members who require Form U4 filings as of January 2, 2022. Also,
reflecting the current Continuing Education Fees for the S101 or S201
does not impose an undue burden on competition as FINRA currently
assesses these rates to all Members that are required to have those
registrations. Finally, making clear that FINRA, on behalf of the
Exchange, will bill and collect these fees and referencing the rule
which governs the Regulatory Element of the Continuing Education
Requirements will bring greater transparency to FINRA's fees. Further,
the proposal does not impose an undue burden on competition because the
Exchange will not be collecting or retaining these fees, therefore, the
Exchange will not be in a position to apply them in an inequitable or
unfairly discriminatory manner.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\10\
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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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 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#1a686f767f37797577777f746e695a697f79347d756c"><span class="__cf_email__" data-cfemail="e89a9d848dc58b8785858d869c9ba89b8d8bc68f879e">[email protected]</span></a>. Please include
File Number SR-MRX-2021-11 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-MRX-2021-11. 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
[[Page 66365]]
to make available publicly. All submissions should refer to File Number
SR-MRX-2021-11, and should be submitted on or before December 13, 2021.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-25351 Filed 11-19-21; 8:45 am]
BILLING CODE 8011-01-P
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