Notice2022-13963
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change for Certain Non-Substantive Clarifying Changes to Article 7, Rule 12
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
June 30, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 125 (Thursday, June 30, 2022)</title>
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[Federal Register Volume 87, Number 125 (Thursday, June 30, 2022)]
[Notices]
[Pages 39137-39139]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-13963]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95157; File No. SR-NYSECHX-2022-13]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change for Certain
Non-Substantive Clarifying Changes to Article 7, Rule 12
June 24, 2022.
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 June 21, 2022, the NYSE Chicago, Inc. (``NYSE Chicago'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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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 certain non-substantive clarifying changes to
Article 7, Rule 12. The proposed rule 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 certain non-substantive clarifying changes to
Article 7, Rule 12 (Failure to Pay Fees).
The Exchange recently adopted rules relating to investigation,
discipline, sanction, and other procedural rules based on the rules
based on the text of the NYSE Arca Rule 10.8000 and Rule 10.9000
Series, with certain changes.\3\ In connection with the adoption of
these new disciplinary rules, the Exchange made certain changes to
Article 7, Rule 12, which previously governed the non-payment of any
debt for Trading Permit fees, fines, transaction fees, or other sums
owing the Exchange or its subsidiaries, to reflect that failure to pay
any fine, sanction or cost levied in connection with a disciplinary
action would be governed by Rule 10.8320 (Payment of Fines, Other
Monetary Sanctions, or Costs; Summary Action for Failure to Pay).
Specifically, the Exchange added the following text to Article 7, Rule
12:
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\3\ See Securities Exchange Act Release No. 95020 (June 1,
2022), 87 FR 35034 (June 8, 2022) (SR-NYSECHX-2022-10) (``Release
No. 95020'').
Notwithstanding the foregoing, any failure to pay any fine,
sanction or cost levied in connection with a disciplinary action
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shall be governed by Rule 10.8320.
For the avoidance of doubt, and to clarify the application of
Article 7, Rule 12 and Rule 10.8320, the Exchange proposes to amend the
above sentence in Article 7, Rule 12 as follows (proposed changes are
italicized):
Notwithstanding the foregoing, any failure to pay any fine,
sanction or cost levied in connection with a disciplinary action
initiated under Article 12 for which a decision was issued on or
after [insert date] shall be governed by Rule 10.8320. For
[[Page 39138]]
disciplinary decisions issued prior to such date, Article 7, Rule 12
shall apply.\4\
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\4\ On June 3, 2022, the Exchange announced that the new
disciplinary rules will be effective on July 5, 2022. See Release
No. 95020, 87 FR at 35041; NYSE Chicago RM-22-02 (June 3, 2022).
Once the new disciplinary rules are effective, the Exchange will
replace ``insert date'' where it appears in the new disciplinary
rules, including as proposed in Article 7, Rule 12, with that date.
The proposed change is consistent with Rule 10.8320(d), which
provides that the Exchange may exercise the summary authority set forth
in Rules 10.8320(b) and (c) with respect to non-payment of a fine,
monetary sanction, or cost assessed in a disciplinary action initiated
under Article 12 for which a decision was issued on or after the
effective date of the new disciplinary rules.
The Exchange believes that the proposed change would add clarity,
transparency and consistency to the Exchange's rules.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\5\ in general, and furthers the objectives of Section 6(b)(5) of
the Act,\6\ in particular, in that 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.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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In particular, the Exchange believes that the proposed non-
substantive clarifying changes would remove impediments to and perfect
the mechanism of a free and open market and a national market system
and, in general, protect investors and the public interest because the
proposed non-substantive changes would add clarity, transparency and
consistency to the Exchange's rules. The Exchange believes that market
participants would benefit from the increased clarity, thereby reducing
potential confusion and ensuring that persons subject to the Exchange's
jurisdiction, regulators, and the investing public can more easily
navigate and understand the Exchange's rules.
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 proposed rule change is
not intended to address competitive issues but is rather concerned with
making non-substantive clarifying changes to the Exchange rules. Since
the proposal does not substantively modify system functionality or
processes on the Exchange, the proposed changes will not impose any
burden on competition.
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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6) \8\ thereunder. 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 \9\ and Rule 19b-4(f)(6) \10\ thereunder.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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) \11\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\12\ 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 to allow the
proposed changes to be effective at the same time as the announced date
of the new disciplinary rules. The Commission notes that the proposed
changes to Article 12, Rule 7, clarify and make the rule consistent
with the transition from the old to the new disciplinary rules recently
adopted by the Exchange and do not raise any new or novel issues.\13\
Therefore, the Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest. Accordingly, the Commission designates the proposed rule
change to be operative upon filing.\14\
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ See supra note 4 and accompanying text.
\14\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will 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#2052554c450d434f4d4d454e5453605345430e474f56"><span class="__cf_email__" data-cfemail="2654534a430b45494b4b434852556655434508414950">[email protected]</span></a>. Please include
File Number SR-NYSECHX-2022-13 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-NYSECHX-2022-13. 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
[[Page 39139]]
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-
NYSECHX-2022-13 and should be submitted on or before July 21, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12), (59).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-13963 Filed 6-29-22; 8:45 am]
BILLING CODE 8011-01-P
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