Notice2022-00264
Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend the NYSE American Equities Price List With Respect to a Regulatory Fee Related to the Central Registration Depository
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
January 11, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 7 (Tuesday, January 11, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 7 (Tuesday, January 11, 2022)]
[Notices]
[Pages 1461-1462]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-00264]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93902; File No. SR-NYSEAMER-2021-47]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Change To Amend the NYSE
American Equities Price List With Respect to a Regulatory Fee Related
to the Central Registration Depository
January 5, 2022.
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 December 22, 2021, 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,
II, and III 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
The Exchange proposes to amend the NYSE American Equities Price
List (the ``Price List'') with respect to a regulatory fee related to
the Central Registration Depository (``CRD system''), which is
collected by the Financial Industry Regulatory Authority, Inc.
(``FINRA''). The Exchange proposes to implement the fee change on
January 2, 2022. The proposed change is available on the Exchange's
website at <a href="http://www.nyse.com">www.nyse.com</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 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 the Price List with respect to a
regulatory fee collected by FINRA for use of the CRD system.\4\ The
Exchange proposes to implement the fee change on January 2, 2022.
---------------------------------------------------------------------------
\4\ The CRD system is the central licensing and registration
system for the U.S. securities industry. The CRD system enables
individuals and firms seeking registration with multiple states and
self-regulatory organizations to do so by submitting a single form,
fingerprint card, and a combined payment of fees to FINRA. Through
the CRD system, FINRA maintains the qualification, employment, and
disciplinary histories of registered associated persons of broker-
dealers.
---------------------------------------------------------------------------
FINRA collects and retains certain regulatory fees via the CRD
system for the registration of associated persons of ATP Holders that
are not FINRA members (``Non-FINRA ATP Holders'').\5\ The CRD system
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 ATP Holder.
---------------------------------------------------------------------------
\5\ The Exchange originally adopted fees for use of the CRD
system in 2003 and amended those fees in 2013. See Securities
Exchange Act Release Nos. 48066 (June 19, 2003), 68 FR 38409 (June
27, 2003) (SR-Amex-2003-49); 68630 (January 11, 2013), 78 FR 6152
(January 29, 2013) (SR-NYSEMKT-2013-01). While the Exchange lists
these fees in its Price List, it does not collect or retain these
fees.
---------------------------------------------------------------------------
FINRA recently amended one of the fees assessed for use of the CRD
system.\6\ Accordingly, the Exchange proposes to amend the Price List
to mirror the fee assessed by FINRA, which will be implemented
concurrently with the amended FINRA fee on January 2, 2022.\7\
Specifically, the Exchange proposes to amend the Price List to modify
the fee charged to Non-FINRA ATP Holders for each initial Form U4 filed
for the registration of a representative or principal from $100 to
$125.\8\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 90176 (October 14,
2020), 85 FR 66592 (October 20, 2020) (SR-FINRA-2020-032).
\7\ The Exchange notes that it has only adopted the CRD system
fees charged by FINRA to Non-FINRA ATP Holders when such fees are
applicable. In this regard, certain FINRA CRD system fees and
requirements are specific to FINRA members, but do not apply to NYSE
American-only ATP Holders. Non-FINRA ATP Holders have been charged
CRD system fees since 2003. See note 5, supra. ATP Holders that are
also FINRA members are charged CRD system fees according to Section
4 of Schedule A to the FINRA By-Laws.
\8\ See Section 4(b)(1) of Schedule A to the FINRA By-Laws
effective on January 2, 2022. This fee is assessed when a Non-FINRA
ATP Holder submits an initial Uniform Application for Securities
Industry Regulation or Transfer (known as a ``Form U4'') filed by a
member in the CRD system to register an individual.
---------------------------------------------------------------------------
[[Page 1462]]
The Exchange notes that the proposed change is not otherwise
intended to address any other issues surrounding regulatory fees, and
the Exchange is not aware of any problems that ATP Holders would have
in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5),\10\ in particular, because
it provides for the equitable allocation of reasonable dues, fees, and
other charges among its members, issuers, and other persons using its
facilities and does not unfairly discriminate between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4) & (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed fee change is reasonable
because the fee will be identical to that adopted by FINRA as of
January 2, 2022 for use of the CRD system to submit a Form U4. The
costs of operating and improving the CRD system are similarly borne by
FINRA when a Non-FINRA ATP Holder uses the CRD system; accordingly, the
fees collected for such use should, as proposed by the Exchange, mirror
the fees assessed to FINRA members. In addition, as FINRA noted in
amending its fees, it believes that its proposed pricing structure is
reasonable and correlates fees with the components that drive its
regulatory costs to the extent feasible.
The Exchange also believes that the proposed fee change provides
for the equitable allocation of reasonable fees and other charges, and
does not unfairly discriminate between customers, issuers, brokers, and
dealers. The fee applies equally to all individuals and firms required
to report information to the CRD system, and the proposed change will
result in the same regulatory fee being charged to all ATP Holders
required to report information to the CRD system and for services
performed by FINRA regardless of whether such ATP Holders are FINRA
members. Accordingly, the Exchange believes that the fee collected for
such use should increase in lockstep with the fee adopted by FINRA as
of January 2, 2022, as is proposed by the Exchange.
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. Specifically, the Exchange
believes that the proposed change will reflect the fee that will be
assessed by FINRA for Form U4 filings as of January 2, 2022 and will
thus result in the same regulatory fees being charged to all ATP
Holders required to report information to the CRD system and for
services performed by FINRA, regardless of whether or not such ATP
Holders are FINRA members.
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
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \11\ of the Act and subparagraph (f)(2) of Rule
19b-4 \12\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such 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) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\13\ 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
<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#6a181f060f47090507070f041e192a190f09440d051c"><span class="__cf_email__" data-cfemail="1e6c6b727b337d7173737b706a6d5e6d7b7d30797168">[email protected]</span></a>. Please include
File Number SR-NYSEAMER-2021-47 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-NYSEAMER-2021-47. 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-NYSEAMER-2021-47 and should be submitted
on or before February 1, 2022.
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-00264 Filed 1-10-22; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on January 11, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.