Notice2022-22988
Program for Allocation of Regulatory Responsibilities Pursuant to Rule 17d-2; Notice of Filing and Order Approving and Declaring Effective an Amendment to the Plan for the Allocation of Regulatory Responsibilities Among Cboe BZX Exchange, Inc., BOX Exchange, LLC, Cboe Exchange, Inc., Cboe C2 Exchange, Inc., Nasdaq ISE, LLC, Financial Industry Regulatory Authority, Inc., Miami International Securities Exchange, LLC, NYSE American LLC, NYSE Arca, Inc., The Nasdaq Stock Market LLC, Nasdaq BX, Inc., Nasdaq PHLX LLC, Nasdaq GEMX, LLC, Cboe EDGX Exchange, Inc., Nasdaq MRX, LLC, MIAX PEARL, LLC, MIAX Emerald, LLC and MEMX LLC Concerning Options-Related Sales Practice Matters
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
October 24, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 204 (Monday, October 24, 2022)</title>
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[Federal Register Volume 87, Number 204 (Monday, October 24, 2022)]
[Notices]
[Pages 64285-64294]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-22988]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96100; File No. S7-966]
Program for Allocation of Regulatory Responsibilities Pursuant to
Rule 17d-2; Notice of Filing and Order Approving and Declaring
Effective an Amendment to the Plan for the Allocation of Regulatory
Responsibilities Among Cboe BZX Exchange, Inc., BOX Exchange, LLC, Cboe
Exchange, Inc., Cboe C2 Exchange, Inc., Nasdaq ISE, LLC, Financial
Industry Regulatory Authority, Inc., Miami International Securities
Exchange, LLC, NYSE American LLC, NYSE Arca, Inc., The Nasdaq Stock
Market LLC, Nasdaq BX, Inc., Nasdaq PHLX LLC, Nasdaq GEMX, LLC, Cboe
EDGX Exchange, Inc., Nasdaq MRX, LLC, MIAX PEARL, LLC, MIAX Emerald,
LLC and MEMX LLC Concerning Options-Related Sales Practice Matters
October 18, 2022.
Notice is hereby given that the Securities and Exchange Commission
(``Commission'') has issued an Order, pursuant to Section 17(d) of the
Securities Exchange Act of 1934 (``Act''),\1\ approving and declaring
effective an amendment to the plan for allocating regulatory
responsibility (``Plan'') filed on September 20, 2022, pursuant to Rule
17d-2 of the Act,\2\ by Cboe BZX Exchange, Inc. (``BZX''), BOX
Exchange, LLC (``BOX''), Cboe Exchange, Inc., Cboe C2 Exchange, Inc.
(``C2''), Nasdaq ISE, LLC (``ISE''), Financial Industry Regulatory
Authority, Inc. (``FINRA''), Miami International Securities Exchange,
LLC (``MIAX''), The Nasdaq Stock Market LLC (``Nasdaq''), Nasdaq BX,
Inc. (``BX''), NYSE American LLC (``NYSE American''), NYSE Arca, Inc.
(``NYSE Arca''), Nasdaq PHLX LLC (``PHLX''), Nasdaq GEMX, LLC
(``GEMX''), Cboe EDGX Exchange, Inc. (``EDGX''), Nasdaq MRX, LLC
(``MRX''), MIAX PEARL, LLC (``MIAX PEARL''), MIAX Emerald, LLC (``MIAX
Emerald''), and MEMX LLC (``MEMX'') (collectively, ``Participating
Organizations'' or ``parties'').
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\1\ 15 U.S.C. 78q(d).
\2\ 17 CFR 240.17d-2.
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I. Introduction
Section 19(g)(1) of the Act,\3\ among other things, requires every
self-regulatory organization (``SRO'') registered as either a national
securities exchange or national securities association to examine for,
and enforce compliance by, its members and persons associated with its
members with the Act, the rules and regulations thereunder, and the
SRO's own rules, unless the SRO is relieved of this responsibility
pursuant to Section 17(d) \4\ or Section 19(g)(2) \5\ of the Act.
Without this relief, the statutory obligation of each individual SRO
could result in a pattern of multiple examinations of broker-dealers
that maintain memberships in more than one SRO (``common members'').
Such regulatory duplication would add unnecessary expenses for common
members and their SROs.
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\3\ 15 U.S.C. 78s(g)(1).
\4\ 15 U.S.C. 78q(d).
\5\ 15 U.S.C. 78s(g)(2).
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Section 17(d)(1) of the Act \6\ was intended, in part, to eliminate
unnecessary multiple examinations and regulatory duplication.\7\ With
respect to a common member, Section 17(d)(1) authorizes the Commission,
by rule or order, to relieve an SRO of the responsibility to receive
regulatory reports, to examine for and enforce compliance with
applicable statutes, rules, and regulations, or to perform other
specified regulatory functions.
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\6\ 15 U.S.C. 78q(d)(1).
\7\ See Securities Act Amendments of 1975, Report of the Senate
Committee on Banking, Housing, and Urban Affairs to Accompany S.
249, S. Rep. No. 94-75, 94th Cong., 1st Session 32 (1975).
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To implement Section 17(d)(1), the Commission adopted two rules:
Rule 17d-1 and Rule 17d-2 under the Act.\8\ Rule 17d-1 authorizes the
Commission to name a single SRO as the designated examining authority
(``DEA'') to examine common members for compliance with the financial
responsibility requirements imposed by the Act, or by Commission or SRO
rules.\9\ When an SRO has been named as a common member's DEA, all
other SROs to which the common member belongs are relieved of the
responsibility to examine the firm for compliance with the applicable
financial responsibility rules. On its face, Rule 17d-1 deals only with
an SRO's obligations to enforce member compliance with financial
responsibility requirements. Rule 17d-1 does not relieve an SRO from
its obligation to examine a common member for compliance with its own
rules and provisions of the federal securities laws governing matters
other than financial responsibility, including sales practices and
trading activities and practices.
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\8\ 17 CFR 240.17d-1 and 17 CFR 240.17d-2, respectively.
\9\ See Securities Exchange Act Release No. 12352 (April 20,
1976), 41 FR 18808 (May 7, 1976).
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To address regulatory duplication in these and other areas, the
Commission
[[Page 64286]]
adopted Rule 17d-2 under the Act.\10\ Rule 17d-2 permits SROs to
propose joint plans for the allocation of regulatory responsibilities
with respect to their common members. Under paragraph (c) of Rule 17d-
2, the Commission may declare such a plan effective if, after providing
for notice and comment, it determines that the plan is necessary or
appropriate in the public interest and for the protection of investors,
to foster cooperation and coordination among the SROs, to remove
impediments to, and foster the development of, a national market system
and a national clearance and settlement system, and is in conformity
with the factors set forth in Section 17(d) of the Act. Commission
approval of a plan filed pursuant to Rule 17d-2 relieves an SRO of
those regulatory responsibilities allocated by the plan to another SRO.
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\10\ See Securities Exchange Act Release No. 12935 (October 28,
1976), 41 FR 49091 (November 8, 1976).
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II. The Plan
On September 8, 1983, the Commission approved the SRO participants'
plan for allocating regulatory responsibilities pursuant to Rule 17d-
2.\11\ On May 23, 2000, the Commission approved an amendment to the
plan that added the ISE as a participant.\12\ On November 8, 2002, the
Commission approved another amendment that replaced the original plan
in its entirety and, among other things, allocated regulatory
responsibilities among all the participants in a more equitable
manner.\13\ On February 5, 2004, the Commission approved an amendment
to the plan, primarily to include the BSE, which was establishing a new
options trading facility to be known as BOX, as an SRO participant.\14\
On March 26, 2007, the Commission approved an amendment to the plan
that, among other things, provided that the National Association of
Securities Dealers (``NASD'') (n/k/a FINRA) and NYSE are Designated
Options Examining Authorities under the plan.\15\ On March 12, 2008,
the Commission approved an amendment to the plan primarily to add
NASDAQ as an SRO participant.\16\ On June 18, 2008, the Commission
approved an amendment to the plan primarily to remove the NYSE as a
Designated Options Examining Authority, leaving FINRA as the sole
Designated Options Examining Authority for all common members that are
members of FINRA.\17\ On February 25, 2010, the Commission approved a
proposed amendment to the plan to add Bats and C2 as SRO participants
and to reflect the name changes of the American Stock Exchange LLC to
the NYSE Amex LLC, the Boston Stock Exchange, Inc., to the NASDAQ OMX
BX, Inc. and the Philadelphia Stock Exchange, Inc. to the NASDAQ OMX
PHLX, Inc.\18\ On May 11, 2012, the Commission approved an amendment to
the plan to add BOX as an SRO participant and to amend Section XIII of
the plan to set forth a revised procedure for adding new participants
to the plan.\19\ On December 5, 2012, the Commission approved an
amendment to the plan to add MIAX as an SRO participant, and to change
the name of NYSE Amex LLC to NYSE MKT LLC.\20\ On July 26, 2013, the
Commission approved an amendment to the plan to add Topaz Exchange LLC
as an SRO participant.\21\ On October 29, 2015, the Commission approved
an amendment to the plan to add EDGX as an SRO participant and to
change the name of Topaz Exchange, LLC to ISE Gemini, LLC.\22\ On
February 16, 2016, the Commission approved an amendment to the plan to
add ISE Mercury, and remove the NYSE, as an SRO participant to the
Plan.\23\ On February 2, 2017, the Commission approved an amendment to
the plan to add MIAX PEARL as an SRO participant to the Plan.\24\ On
February 12, 2019, the Commission approved an amendment to the plan to
add MIAX Emerald as an SRO participant to the Plan.\25\
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\11\ See Securities Exchange Act Release No. 20158 (September 8,
1983), 48 FR 41256 (September 14, 1983).
\12\ See Securities Exchange Act Release No. 42816 (May 23,
2000), 65 FR 34759 (May 31, 2000).
\13\ See Securities Exchange Act Release No. 46800 (November 8,
2002), 67 FR 69774 (November 19, 2002).
\14\ See Securities Exchange Act Release No. 49197 (February 5,
2004), 69 FR 7046 (February 12, 2004).
\15\ See Securities Exchange Act Release No. 55532 (March 26,
2007), 72 FR 15729 (April 2, 2007).
\16\ See Securities Exchange Act Release No. 57481 (March 12,
2008), 73 FR 14507 (March 18, 2008).
\17\ See Securities Exchange Act Release No. 57987 (June 18,
2008), 73 FR 36156 (June 25, 2008).
\18\ See Securities Exchange Act Release No. 61589 (February 25,
2012), 75 FR 9976 (March 4, 2010).
\19\ See Securities Exchange Act Release No. 66974 (May 11,
2012), 77 FR 29705 (May 18, 2012).
\20\ See Securities Exchange Act Release No. 68363 (December 5,
2012), 77 FR 73711 (December 11, 2012).
\21\ See Securities Exchange Act Release No. 70051 (July 26,
2013), 78 FR 46644 (August 1, 2013).
\22\ See Securities Exchange Act Release No. 76309 (October 29,
2015), 80 FR 68361 (November 4, 2015).
\23\ See Securities Exchange Act Release No. 77148 (February 16,
2016), 81 FR 8775 (February 22, 2016).
\24\ See Securities Exchange Act Release No. 79929 (February 2,
2017), 82 FR 9757 (February 8, 2017).
\25\ See Securities Exchange Act Release No. 85106 (February 12,
2019), 84 FR 4554 (February 15, 2019).
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The plan reduces regulatory duplication for a large number of firms
currently members of two or more of the SRO participants by allocating
regulatory responsibility for certain options-related sales practice
matters to one of the SRO participants. Generally, under the plan, the
SRO participant responsible for conducting options-related sales
practice examinations of a firm, and investigating options-related
customer complaints and terminations for cause of associated persons of
that firm, is known as the firm's ``Designated Options Examining
Authority'' (``DOEA''). Pursuant to the plan, any other SRO of which
the firm is a member is relieved of these responsibilities during the
period in which the firm is assigned to another SRO acting as that
firm's DOEA.
III. Proposed Amendment to the Plan
On September 20, 2022, the Parties submitted a proposed amendment
to the Plan. The primary purpose of the amendment is to add MEMX as a
Participant to the Plan to accommodate the upcoming launch of MEMX's
new options facility, to reflect name changes of certain Participating
Organizations, and to reflect updated rule citations. The text of the
proposed amended 17d-2 plan is as follows (additions are italicized;
deletions are [bracketed]):
* * * * *
Agreement by and Among Cboe BZX Exchange, Inc., BOX [Options] Exchange,
LLC, Cboe Exchange, Inc., Cboe C2 Exchange, Inc., Nasdaq ISE, LLC,
Financial Industry Regulatory Authority, Inc., Miami International
Securities Exchange, LLC, NYSE American LLC, NYSE Arca, Inc., The
Nasdaq Stock Market LLC, Nasdaq BX, Inc., Nasdaq PHLX LLC, Nasdaq GEMX,
LLC, Cboe EDGX Exchange, Inc., Nasdaq MRX, LLC, MIAX PEARL, LLC [and],
MIAX Emerald, LLC and MEMX LLC Pursuant to Rule 17d-2 Under the
Securities Exchange Act of 1934
This agreement (``Agreement''), by and among Cboe BZX Exchange,
Inc. (``BZX''), BOX [Options] Exchange, LLC, Cboe Exchange, Inc., Cboe
C2 Exchange, Inc., Nasdaq ISE, LLC, Financial Industry Regulatory
Authority, Inc. (``FINRA''), Miami International Securities Exchange,
LLC (``MIAX''), The Nasdaq Stock Market LLC (``Nasdaq''), Nasdaq BX,
Inc. (``BX''), NYSE American LLC (``NYSE
[[Page 64287]]
American''), NYSE Arca, Inc. (``NYSE Arca''), Nasdaq PHLX LLC
(``PHLX''), Nasdaq GEMX, LLC (``GEMX''), Cboe EDGX Exchange, Inc.
(``EDGX''), Nasdaq MRX, LLC (``MRX''), MIAX PEARL, LLC (``MIAX PEARL'')
[and], MIAX Emerald, LLC (``MIAX Emerald''), and MEMX LLC (``MEMX'')
hereinafter collectively referred to as the Participants, is made this
[2nd] 20th day of [January, 2019] September, 2022, pursuant to the
provisions of Rule 17d-2 under the Securities Exchange Act of 1934 (the
``Exchange Act''), which allows for plans among self-regulatory
organizations to allocate regulatory responsibility. This Agreement
shall be administered by a committee known as the Options Self-
Regulatory Council (the ``Council'').
This Agreement amends and restates the agreement entered into among
the Participants on [January 13, 2017] January 2, 2019, entitled
``Agreement by and among Cboe BZX Exchange, Inc., BOX Options Exchange,
LLC, Cboe Exchange, Inc., Cboe C2 Exchange, Inc., Nasdaq ISE, LLC,
Financial Industry Regulatory Authority, Inc., Miami International
Securities Exchange, LLC, The Nasdaq Stock Market LLC, Nasdaq BX, Inc.,
NYSE American LLC, NYSE Arca, Inc., Nasdaq PHLX LLC, Nasdaq GEMX, LLC,
Cboe EDGX Exchange, Inc., Nasdaq MRX, LLC, MIAX PEARL, LLC and MIAX
Emerald, LLC, Pursuant to Rule 17d-2 under the Securities Exchange Act
of 1934.''
Whereas, the Participants are desirous of allocating regulatory
responsibilities with respect to broker-dealers, and persons associated
therewith, that are members \1\ of more than one Participant (the
``Common Members'') and conduct a public business for compliance with
Common Rules (as hereinafter defined) relating to the conduct by
broker-dealers of accounts for listed options, index warrants, currency
index warrants and currency warrants (collectively, ``Covered
Securities''); and
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\1\ In the case of [BOX Options Exchange, LLC (``BOX''), Nasdaq
BX, Inc. (``]BX['')], BZX, NYSE American, NYSE Arca, EDGX, MIAX
PEARL, MEMX, PHLX and Nasdaq, members are those persons who are
options participants (as defined in the [BOX,] BX, BZX, NYSE
American, NYSE Arca, EDGX, MIAX PEARL, MEMX, PHLX and Nasdaq Options
Market Rules).
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Whereas , the Participants are desirous of executing a plan for
this purpose pursuant to the provisions of Rule 17d-2 and filing such
plan with the Securities and Exchange Commission (``SEC'' or the
``Commission'') for its approval;
Now, therefore , in consideration of the mutual covenants contained
hereafter, the Participants agree as follows:
I. As used herein the term Designated Options Examining Authority
(``DOEA'') shall mean: (1) FINRA insofar as it shall perform Regulatory
Responsibility (as hereinafter defined) for its broker-dealer members
that also are members of another Participant or (2) the Designated
Examination Authority (``DEA'') pursuant to SEC Rule 17d-1 under the
Securities Exchange Act (``Rule 17d-1'') for a broker-dealer that is a
member of a more than one Participant (but not a member of FINRA).
II. As used herein, the term ``Regulatory Responsibility'' shall
mean the examination and enforcement responsibilities relating to
compliance by Common Members with the rules of the applicable
Participant that are substantially similar to the rules of the other
Participants (the ``Common Rules''), insofar as they apply to the
conduct of accounts for Covered Securities. A list of the current
Common Rules of each Participant applicable to the conduct of accounts
for Covered Securities is attached hereto as Exhibit A. Each year
within 30 days of the anniversary date of the commencement of operation
of this Agreement, each Participant shall submit in writing to FINRA
and each DEA performing as a DOEA for any members of such Participant
any revisions to Exhibit A reflecting changes in the rules of the
Participant, and confirm that all other rules of the Participant listed
in Exhibit A continue to meet the definition of Common Rules as defined
in this Agreement. Within 30 days from the date that FINRA and each DEA
performing as a DOEA has received revisions and/or confirmation that no
change has been made to Exhibit A from all Participants, FINRA and each
DEA performing as a DOEA shall confirm in writing to each Participant
whether the rules listed in any updated Exhibit A are Common Rules as
defined in this Agreement. Notwithstanding anything herein to the
contrary, it is explicitly understood that the term ``Regulatory
Responsibility'' does not include, and each of the Participants shall
(unless allocated pursuant to Rule 17d-2 otherwise than under this
Agreement) retain full responsibility for, each of the following:
(a) Surveillance and enforcement with respect to trading activities
or practices involving its own marketplace, including without
limitation its rules relating to the rights and obligations of
specialists and other market makers;
(b) Registration pursuant to its applicable rules of associated
persons;
(c) Discharge of its duties and obligations as a DEA; and
(d) Evaluation of advertising, responsibility for which shall
remain with the Participant to which a Common Member submits same for
approval.
III. Apparent violations of another Participant's rules discovered
by a DOEA, but which rules are not within the scope of the discovering
DOEA's Regulatory Responsibility, shall be referred to the relevant
Participant for such action as the Participant to which such matter has
been referred deems appropriate. Notwithstanding the foregoing, nothing
contained herein shall preclude a DOEA in its discretion from
requesting that another Participant conduct an enforcement proceeding
on a matter for which the requesting DOEA has Regulatory
Responsibility. If such other Participants agree, the Regulatory
Responsibility in such case shall be deemed transferred to the
accepting Participant and confirmed in writing by the Participants
involved. Each Participant agrees, upon request, to make available
promptly all relevant files, records and/or witnesses necessary to
assist another Participant in an investigation or enforcement
proceeding.
IV. The Council shall be composed of one representative designated
by each of the Participants. Each Participant shall also designate one
or more persons as its alternate representative(s). In the absence of
the representative of a Participant, such alternate representative
shall have the same powers, duties and responsibilities as the
representative. Each Participant may, at any time, by notice to the
then Chair of the Council, replace its representative and/or its
alternate representative on such Council. A majority of the Council
shall constitute a quorum and, unless specifically otherwise required,
the affirmative vote of a majority of the Council members present (in
person, by telephone or by written consent) shall be necessary to
constitute action by the Council. The representative from FINRA shall
serve as Chair of the Council. All notices and other communications for
the Council shall be sent to it in care of the Chair or to each of the
representatives.
V. The Council shall determine the times and locations of Council
meetings, provided that the Chair, acting alone, may also call a
meeting of the Council in the event the Chair determines that there is
good cause to do so. To the extent reasonably possible, notice of any
meeting shall be given at least ten-business days prior thereto.
Notwithstanding anything herein to the
[[Page 64288]]
contrary, representatives shall always be given the option of
participating in any meeting telephonically at their own expense rather
than in person.
VI. FINRA shall have Regulatory Responsibility for all Common
Members that are members of FINRA. For the purpose of fulfilling the
Participants' Regulatory Responsibilities for Common Members that are
not members of FINRA, the Participant that is the DEA shall serve as
the DOEA. All Participants shall promptly notify the DOEAs no later
than the next scheduled meeting of any change in membership of Common
Members. A DOEA may request that a Common Member that is allocated to
it be reallocated to another DOEA by giving thirty days written notice
thereof. The DOEAs in their discretion may approve such request and
reallocate such Common Member to another DOEA.
VII. Each DOEA shall conduct an examination of each Common Member.
The Participants agree that, upon request, relevant information in
their respective files relative to a Common Member will be made
available to the applicable DOEA. At each meeting of the Council, each
DOEA shall be prepared to report on the status of its examination
program for the previous quarter and any period prior thereto that has
not previously been reported to the Council.
VIII. Each DOEA will promptly furnish a copy of the Examination
report, relating to Covered Securities, of any examination made
pursuant to the provisions of this Agreement to each other Participant
of which the Common Member examined is a member.
IX. Each DOEA's Regulatory Responsibility shall for each Common
Member allocated to it include investigations into terminations ``for
cause'' of associated persons relating to Covered Securities, unless
such termination is related solely to another Participant's market. In
the latter instance, that Participant to whose market the termination
for cause relates shall discharge Regulatory Responsibility with
respect to such termination for cause. In connection with a DOEA's
examination, investigation and/or enforcement proceeding regarding a
Covered Security-related termination for cause, the other Participants
of which the Common Member is a member shall furnish, upon request,
copies of all pertinent materials related thereto in their possession.
As used in this Section, ``for cause'' shall include, without
limitation, terminations characterized on Form U5 under the label
``Permitted to Resign,'' ``Discharge'' or ``Other.''
X. Each DOEA shall discharge the Regulatory Responsibility for each
Common Member allocated to it relative to a Covered Securities-related
customer complaint \2\ unless such complaint is uniquely related to
another Participant's market. In the latter instance, the DOEA shall
forward the matter to that Participant to whose market the matter
relates, and the latter shall discharge Regulatory Responsibility with
respect thereto. If a Participant receives a customer complaint for a
Common Member related to a Covered Security for which the Participant
is not the DOEA, the Participant shall promptly forward a copy of such
complaint to the DOEA.
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\2\ For purposes of complaints, they can be reported pursuant to
Form U4, Form U5 or RE-3 and any amendments thereto.
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XI. Any written notice required or permitted to be given under this
Agreement shall be deemed given if sent by certified mail, return
receipt requested, or by a comparable means of electronic communication
to each Participant entitled to receipt thereof, to the attention of
the Participant's representative on the Council at the Participant's
then principal office or by email at such address as the representative
shall have filed in writing with the Chair.
XII. The Participants shall notify the Common Members of this
Agreement by means of a uniform joint notice approved by the Council.
XIII. This Agreement may be amended to add a new Participant
provided that such Participant does not assume Regulatory
Responsibility, solely by an amendment by FINRA and such new
Participant. All other Participants expressly consent to allow FINRA to
add new Participants to this Agreement as provided above. FINRA will
promptly notify all Participants of any such amendments to add new
Participants. All other amendments to this Agreement must be approved
in writing by each Participant. All amendments, including adding a new
Participant, must be filed with and approved by the SEC before they
become effective.
XIV. Any of the Participants may manifest its intention to cancel
its participation in this Agreement at any time by giving the Council
written notice thereof at least 90 days prior to the effective date of
such cancellation. Upon receipt of such notice the Council shall
allocate, in accordance with the provisions of this Agreement, any
Common Members for which the petitioning party was the DOEA. Until such
time as the Council has completed the reallocation described above; the
petitioning Participant shall retain all its rights, privileges, duties
and obligations hereunder.
XV. The cancellation of its participation in this Agreement by any
Participant shall not terminate this Agreement as to the remaining
Participants. This Agreement will only terminate following notice to
the Commission, in writing, by the then Participants that they intend
to terminate the Agreement and the expiration of the applicable notice
period. Such notice shall be given at least six months prior to the
intended date of termination, provided that in the event a notice of
cancellation is received from a Participant that, assuming the
effectiveness thereof, would result in there being just one remaining
member of the Council, notice to the Commission of termination of this
Agreement shall be given promptly upon the receipt of such notice of
cancellation, which termination shall be effective upon the
effectiveness of the cancellation that triggered the notice of
termination to the Commission.
XVI. No Participant nor the Council nor any of their respective
directors, governors, officers, employees or representatives shall be
liable to any other Participant in this Agreement for any liability,
loss or damage resulting from or claimed to have resulted from any
delays, inaccuracies, errors or omissions with respect to the provision
of Regulatory Responsibility as provided hereby or for the failure to
provide any such Responsibility, except with respect to such liability,
loss or damages as shall have been suffered by one or more of the
Participants and caused by the willful misconduct of one or more of the
other participants or their respective directors, governors, officers,
employees or representatives. No warranties, express or implied, are
made by any or all of the Participants or the Council with respect to
any Regulatory Responsibility to be performed by each of them
hereunder.
XVII. Pursuant to Section 17(d)(1)(A) of the Securities Exchange
Act of 1934 and Rule 17d-2 promulgated pursuant thereto, the
Participants join in requesting the Securities and Exchange Commission,
upon its approval of this Agreement or any part thereof, to relieve
those Participants which are from time to time participants in this
Agreement which are not the DOEA as to a Common Member of any and all
Regulatory Responsibility with respect to the matters allocated to the
DOEA.
[[Page 64289]]
EXHIBIT A
RULES ENFORCED UNDER 17d-2 AGREEMENT
Pursuant to Section II of the Agreement by and among Cboe BZX
Exchange, Inc. (``BZX''), BOX Exchange, LLC (``BOX''), Cboe Exchange,
Inc. (``Cboe''), Cboe C2 Exchange, Inc. (``C2''), Nasdaq ISE, LLC
(``ISE''), Financial Industry Regulatory Authority, Inc. (``FINRA''),
Miami International Securities Exchange, LLC (``MIAX''), The Nasdaq
Stock Market LLC (``Nasdaq''), Nasdaq BX, Inc. (``BX''), NYSE American
LLC (``NYSE American''), NYSE Arca, Inc. (``NYSE ARCA''), Nasdaq PHLX
LLC (``PHLX''), Nasdaq GEMX, LLC (``GEMX''), Cboe EDGX Exchange, Inc.
(``EDGX''), Nasdaq MRX, LLC (``MRX''), MIAX PEARL, LLC (``MIAX PEARL'')
[and], MIAX Emerald, LLC (``MIAX Emerald'') and MEMX LLC (``MEMX'')
pursuant to Rule 17d-2 under the Securities Exchange Act of 1934 dated
[January 2, 2019]September 20, 2022 (the ``Agreement''), a revised list
of the current Common Rules of each Participant, as compared to those
of FINRA, applicable to the conduct of accounts for Covered Securities
is set forth in this Exhibit A.
Opening of Accounts
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NYSE American..................... Rules 411, 921 and 1101.
BZX............................... Rule 26.2.
BOX............................... Rule 4020.
Cboe.............................. Rule [9.7]9.1.
C2 *.............................. Cboe Rule [9.7]9.1.
EDGX.............................. Rule 26.2.
ISE............................... [Rule 608] Options 10, Section 6.
FINRA............................. Rules 2360(b)(16) and 2352.
MEMX.............................. Rule 26.2.
MIAX.............................. Rule 1307.
MIAX PEARL........................ Rule 1307.
MIAX Emerald...................... Rule 1307.
GEMX.............................. [Rule 608] Options 10, Section 6.
MRX............................... [Rule 608] Options 10, Section 6.
PHLX.............................. [Rule 1024(b) and (c)]Options 10,
Section 6.\1\
NYSE ARCA......................... [Options] Rules 9.2-O(a) [and], 9.18-
O(b) [and], [Equities Rules] 9.18-
E(b) and 8.4-E
BX................................ [Chapter XI, Section 7]Options 10,
Section 6.
Nasdaq............................ [Chapter XI, Section 7]Options 10,
Section 6.
------------------------------------------------------------------------
Supervision
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rules 411, 922 and 1104.
BZX............................... Rule 26.3.
BOX............................... Rule 4030.
Cboe.............................. Rule [9.8]9.2.\2\
C2 *.............................. Cboe Rule [9.8]9.2.\2\
EDGX.............................. Rule 26.3.
ISE............................... [Rule 609]Options 10, Section 7.
FINRA............................. Rules 2360(b)(20), 2360(b)(17)(B),
2360(b)(16)(E), 2355 and 2358.
MEMX.............................. Rule 26.3.
MIAX.............................. Rule 1308.
MIAX PEARL........................ Rule 1308.
MIAX Emerald...................... Rule 1308.
GEMX.............................. [Rule 609]Options 10, Section 7.
MRX............................... [Rule 609]Options 10, Section 7.
PHLX.............................. [Rule 1025]Options 10, Section 7.
NYSE ARCA......................... [Options] Rules 9.2-O(b) [and], 9.18-
O (d)(2)(G) and [Equities Rule] 8.7-
E.
BX................................ [Chapter XI, Section 8]Options 10,
Section 7.
Nasdaq............................ [Chapter XI, Section 8]Options 10,
Section 7.
------------------------------------------------------------------------
\1\ FINRA shall not have any Regulatory Responsibility regarding foreign
currency option requirements specified in any of the PHLX rules in
this Exhibit A.
\2\ FINRA shall not have any Regulatory Responsibility regarding receipt
of written reports by April 1 of each year pursuant to Cboe Rule
9.8(g).
Suitability
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rules 923 and 1102.
BZX............................... Rule 26.4.
BOX............................... Rule 4040.
Cboe.............................. Rule [9.9]9.3.
C2 *.............................. Cboe Rule [9.9]9.3.
EDGX.............................. Rule 26.4.
ISE............................... [Rule 610]Options 10, Section 8.
FINRA............................. Rule 2360(b)(19) and 2353.
MEMX.............................. Rule 26.4.
MIAX.............................. Rule 1309.
MIAX PEARL........................ Rule 1309.
MIAX Emerald...................... Rule 1309.
[[Page 64290]]
GEMX.............................. [Rule 610]Options 10, Section 8.
MRX............................... [Rule 610]Options 10, Section 8.
PHLX.............................. [Rule 1026]Options 10, Section 8.
NYSE ARCA......................... [Options] Rules 9.18-O(c) [and],
[Equities Rules] 9.18-E(c) and 8.5-
E.
BX................................ [Chapter XI, Section 9]Options 10,
Section 8.
Nasdaq............................ [Chapter XI, Section 9]Options 10,
Section 8.
------------------------------------------------------------------------
Discretionary Accounts
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rules 421, 924 and 1103.
BZX............................... Rule 26.5 3.
BOX............................... Rule 4050.
Cboe.............................. Rule [9.10]9.4.
C2 *.............................. Cboe Rule [9.10]9.4.
EDGX.............................. Rule 26.5 3.
ISE............................... [Rule 611]Options 10, Section 9.
FINRA............................. Rules 2360(b)(18) and 2354.
MEMX.............................. Rule 26.5 3.
MIAX.............................. Rule 1310.
MIAX PEARL........................ Rule 1310.
MIAX Emerald...................... Rule 1310.
GEMX.............................. [Rule 611]Options 10, Section 9.
MRX............................... [Rule 611]Options 10, Section 9.
PHLX.............................. [Rule 1027]Options 10, Section 9.
NYSE ARCA......................... [Options ]Rules 9.18-O(e) [and],
[Equities Rules] 9.18-E(e) and 8.6-
E.
BX................................ [Chapter XI, Section 10]Options 10,
Section 9.
Nasdaq............................ [Chapter XI, Section 10]Options 10,
Section 9.
------------------------------------------------------------------------
3 FINRA shall not have any Regulatory Responsibility to enforce this
rule as to time and price discretion in institutional accounts.
Customer Communications (Advertising)
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rules 8.9E, 991 and 1106.
BZX............................... Rule 26.16.
BOX............................... Rule 4170.
Cboe.............................. Rule [9.21]9.15.
C2 *.............................. Cboe Rule [9.21]9.15.
EDGX.............................. Rule 26.16.
ISE............................... [Rule 623]Options 10, Section 20.
FINRA............................. Rules 2220 and 2357.
MEMX.............................. Rule 26.16.
MIAX.............................. Rule 1322.
MIAX PEARL........................ Rule 1322.
MIAX Emerald...................... Rule 1322.
GEMX.............................. [Rule 623]Options 10, Section 20.
MRX............................... [Rule 623]Options 10, Section 20.
PHLX.............................. [Rule 1049]Options 10, Section 20.
NYSE ARCA......................... [Options] Rules 9.21-O(a), 9.21-
O(b), 9.28-O and 9.28-E.
BX................................ [Chapter XI, Section 22]Options 10,
Section 20.
Nasdaq............................ [Chapter XI, Section 22]Options 10,
Section 20.
------------------------------------------------------------------------
Customer Complaints
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rules 8.8E, 932 and 1105.
BZX............................... Rule 26.17.
BOX............................... Rule 4190.
Cboe.............................. Rule [9.23]9.17.
C2 *.............................. Cboe Rule [9.23]9.17.
EDGX.............................. Rule 26.17.
ISE............................... [Rule 625]Options 10, Section 22.
FINRA............................. FINRA Rules 2360(b)(17)(A) and 2356.
MEMX.............................. Rule 26.17.
MIAX.............................. Rule 1324.
MIAX PEARL........................ Rule 1324.
[[Page 64291]]
MIAX Emerald...................... Rule 1324.
GEMX.............................. [Rule 625]Options 10, Section 22.
MRX............................... [Rule 625]Options 10, Section 22.
PHLX.............................. [Rule 1028]Options 10, Section 22.
NYSE ARCA......................... [Options] Rules 9.18-O(I) [and],
[Equities Rules] 9.18-E(l) and 8.8-
E.
BX................................ [Chapter XI, Section 24]Options 10,
Section 22.
Nasdaq............................ [Chapter XI, Section 24]Options 10,
Section 22.
------------------------------------------------------------------------
Customer Statements
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rules 419 and 930.
BZX............................... Rule 26.7.
BOX............................... Rule 4070.
Cboe.............................. Rule [9.12]9.6.
C2 *.............................. Cboe Rule [9.12]9.6.
EDGX.............................. Rule 26.7.
ISE............................... [Rule 613]Options 10, Section 11.
FINRA............................. Rule 2360(b)(15).
MEMX.............................. Rule 26.7.
MIAX.............................. Rule 1312.
MIAX PEARL........................ Rule 1312.
MIAX Emerald...................... Rule 1312.
GEMX.............................. [Rule 613]Options 10, Section 11.
MRX............................... [Rule 613]Options 10, Section 11.
PHLX.............................. [Rule 1032]Options 10, Section 11.
NYSE ARCA......................... [Options] Rules 9.18-O(j) and
[Equities Rule] 9.18-E(j).
BX................................ [Chapter XI, Section 12]Options 10,
Section 11.
Nasdaq............................ [Chapter XI, Section 12]Options 10,
Section 11.
------------------------------------------------------------------------
Confirmations
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rule 925.
BZX............................... Rule 26.6.
BOX............................... Rule 4060.
Cboe.............................. Rule [9.11]9.5.
C2 *.............................. Cboe Rule [9.11]9.5.
EDGX.............................. Rule 26.6.
ISE............................... [Rule 612]Options 10, Section 10.
FINRA............................. Rule 2360(b)(12).
MEMX.............................. Rule 26.6.
MIAX.............................. Rule 1311.
MIAX PEARL........................ Rule 1311.
MIAX Emerald...................... Rule 1311.
GEMX.............................. [Rule 612]Options 10, Section 10.
MRX............................... [Rule 612]Options 10, Section 10.
PHLX.............................. [Rule 1028]Options 10, Section 10.
NYSE ARCA......................... [Options] Rules 9.18-O(f) and
[Equities Rule] 9.18-E(f).
BX................................ [Chapter XI, Section 11]Options 10,
Section 10.
Nasdaq............................ [Chapter XI, Section 11]Options 10,
Section 10.
------------------------------------------------------------------------
Allocation of Exercise Assignment Notices
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rule 981.
BZX............................... Rule 23.2.
BOX............................... Rule 9010.
Cboe.............................. Rule [11.2]6.21.
C2 *.............................. Cboe Rule [11.2]6.21.
EDGX.............................. Rule 23.2.
ISE............................... [Rule 1101]Options 6B, Section 2.
FINRA............................. Rule 2360(b)(23)(C).
MEMX.............................. Rule 23.2.
MIAX.............................. Rule 701.
MIAX PEARL........................ Rule 701.
[[Page 64292]]
MIAX Emerald...................... Rule 701.
GEMX.............................. [Rule 1101]Options 6B, Section 2.
MRX............................... [Rule 1101]Options 6B, Section 2.
PHLX.............................. [Rule 1043]Options 6B, Section 2.
NYSE ARCA......................... [Options] Rule 6.25-O(a).
BX................................ [Chapter VIII, Section 2]Options 6B,
Section 2.
Nasdaq............................ [Chapter VIII, Section 2]Options 6B,
Section 2.
------------------------------------------------------------------------
Disclosure Documents
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rules 921 and 926.
BZX............................... Rule 26.10.
BOX............................... Rule 4100.
Cboe.............................. Rule [9.15]9.9.
C2 *.............................. Cboe Rule [9.15]9.9.
EDGX.............................. Rule 26.10.
ISE............................... [Rule 616]Options 10, Section 13.
FINRA............................. Rule 2360(b)(11).
MEMX.............................. Rule 26.10.
MIAX.............................. Rule 1315.
MIAX PEARL........................ Rule 1315.
MIAX Emerald...................... Rule 1315.
GEMX.............................. [Rule 616]Options 10, Section 13.
MRX............................... [Rule 616]Options 10, Section 13.
PHLX.............................. [Rule 102(b)(v), 1029]Options 10,
Section 13.
NYSE ARCA......................... [Options] Rules 9.18-O(g) and
[Equities Rule] 9.18-E(g).
BX................................ [Chapter XI, Section 15]Options 10,
Section 13.
Nasdaq............................ [Chapter XI, Section 15]Options 10,
Section 13.
------------------------------------------------------------------------
Branch Offices of Member Organizations
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rule 922 4.
BOX............................... Rule 4010(b).
Cboe.............................. Rule [9.6]3.40.
C2 *.............................. Cboe Rule [9.6]3.40.
ISE............................... [Rule 607]Options 10, Section 5.
FINRA............................. Rules 2360(b)(20)(B) and 2355.
MIAX.............................. Rule 1306.
MIAX PEARL........................ Rule 1306.
MIAX Emerald...................... Rule 1306.
GEMX.............................. [Rule 607]Options 10, Section 5.
MRX............................... [Rule 607]Options 10, Section 5.
PHLX.............................. N/A.
NYSE ARCA......................... [Options] Rules 9.18-O(m) and
[Equities Rule] 9.18-E(m).
BX................................ [Chapter XI, Section 6]Options 10,
Section 5.
Nasdaq............................ [Chapter XI, Section 6]Options 10,
Section 5.
------------------------------------------------------------------------
4 FINRA shall only have Regulatory Responsibility for the first
paragraph and shall not have any Regulatory Responsibility regarding
the requirements for debt options.
Prohibition Against Guarantees
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rule 390.
BZX............................... Rule 26.13.
BOX............................... Rule 4130.
Cboe.............................. Rule [9.18]9.12.
C2 *.............................. Cboe Rule [9.18]9.12.
EDGX.............................. Rule 26.13.
ISE............................... [Rule 619]Options 10, Section 16.
FINRA............................. Rule 2150(b).
MEMX.............................. Rule 26.13.
MIAX.............................. Rule 1318.
MIAX PEARL........................ Rule 1318.
MIAX Emerald...................... Rule 1318.
[[Page 64293]]
GEMX.............................. [Rule 619]Options 10, Section 16.
MRX............................... [Rule 619]Options 10, Section 16.
PHLX.............................. [Rule 777]General 9, Section 54(b).
NYSE ARCA......................... [Options] Rules 9.1-O(e), [Equities
Rules] 9.1-E(e) and 9.2150-E(b).
BX................................ [Chapter XI, Sections 18 and
19]Options 10, Section 16.
Nasdaq............................ [Chapter XI, Sections 18 and
19]Options 10, Section 16.
------------------------------------------------------------------------
Sharing in Accounts
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rule 390.
BZX............................... Rule 26.14 5.
BOX............................... Rule 4140.
Cboe.............................. Rule [9.18(b)]9.12(b).
C2 *.............................. Cboe Rule [9.18(b)]9.12(b).
EDGX.............................. Rule 26.14 5.
ISE............................... [Rule 620]Options 10, Section 17 6.
FINRA............................. Rule 2150(c).
MEMX.............................. Rule 26.14 5.
MIAX.............................. Rule 1319.
MIAX PEARL........................ Rule 1319.
MIAX Emerald...................... Rule 1319.
GEMX.............................. [Rule 620]Options 10, Section 17 6.
MRX............................... [Rule 620]Options 10, Section 17 6.
PHLX.............................. N/A.
NYSE ARCA......................... [Options] Rules 9.1-O(f) and
[Equities Rule] 9.2150-E(c).
BX................................ [Chapter XI, Section 19]Options 10,
Section 17 6.
Nasdaq............................ [Chapter XI, Section 19]Options 10,
Section 17 6.
------------------------------------------------------------------------
5 FINRA shall not have any Regulatory Responsibility regarding MEMX's,
BZX's, and EDGX's requirements to the extent such rules do not contain
an exemption addressing immediate family.
6 FINRA shall not have any Regulatory Responsibility regarding Nasdaq's,
BX's, ISE's, GEMX's and MRX's requirements to the extent its rule does
not permit sharing in the profits and losses of an account upon prior
written consent from the customer, or contain an exemption addressing
immediate family.
Registration of ROP
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rules 920 and 2.1220(a)(7)(A).
BZX............................... Rule 17.2(g)(1), (2), (6) and (7).
BOX............................... Rule 2020(c)(1).
Cboe.............................. Rule [9.2]3.36.
C2 *.............................. Cboe Rule [9.2]3.36.
EDGX.............................. Rule 17.2(g)(1), (2), (6) and (7).
ISE............................... [Rule 601]Options 10, Section 2.
FINRA............................. Rule 1220(a)(8).
MEMX.............................. Rule 17.2(g)(1), (2), (6) and (7).
MIAX.............................. Rule 1301.
MIAX PEARL........................ Rule 1301.
MIAX Emerald...................... Rule 1301.
GEMX.............................. [Rule 601]Options 10, Section 2.
MRX............................... [Rule 601]Options 10, Section 2.
PHLX.............................. [Rule 1024(a)(i)]Options 10, Section
2.
NYSE ARCA......................... [Options] Rules 9.26-O, [Equities
Rule] 9.26-E and 2.1220(a)(7)(A).
BX................................ [Chapter XI, Section 2 and Chapter
II, Section 2(g)]Options 10,
Section 2.
Nasdaq............................ [Chapter XI, Section 2 and Chapter
II, Section 2(g)]Options 10,
Section 2.
------------------------------------------------------------------------
Certification OF Registered Personnel
------------------------------------------------------------------------
------------------------------------------------------------------------
NYSE American..................... Rules 920 and 1220(b).
BZX............................... Rule 2.5 Interpretation .01(c) and
11.4(e).
BOX............................... IM-2040-3.
Cboe.............................. Rule [9.3]3.37.
C2 *.............................. Cboe Rule [9.3]3.37.
EDGX.............................. Rule 2.5 Interpretation .01(c) and
11.4(e).
ISE............................... [Rule 602]Options 10, Section 3.
FINRA............................. Rule 1220(b) and FINRA By-Laws
Article V Sections 2 and 3.
[[Page 64294]]
MEMX.............................. Rule 2.5 Interpretation .01(c) and
11.4(e).
MIAX.............................. Rule 1302.
MIAX PEARL........................ Rule 1302.
MIAX Emerald...................... Rule 1302.
GEMX.............................. [Rule 602]Options 10, Section 3.
MRX............................... [Rule 602]Options 10, Section 3.
PHLX.............................. [Rule 1024]Options 10, Section 6.
NYSE ARCA......................... [Options] Rules 9.27-O(a), [Equities
Rule] 9.27-E(a) and 2.1220(b).
BX................................ [Chapter XI, Section 2 and Chapter
II, Section 2(h)]Options 10,
Section 3.
Nasdaq............................ [Chapter XI, Section 2 and Chapter
II, Section 2(h)]Options 10,
Section 3.
------------------------------------------------------------------------
* Cboe Options rule incorporated by reference into C2 Rulebook.
V. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. 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#e092958c85cd838f8d8d858e9493a0938583ce878f96"><span class="__cf_email__" data-cfemail="4735322b226a24282a2a222933340734222469202831">[email protected]</span></a>. Please include
File Number S7-966 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 S7-966. 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 plan that are filed with the
Commission, and all written communications relating to the proposed
plan 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 plan also will be available for inspection and
copying at the principal offices of BZX, BOX, C2, ISE, FINRA, MIAX,
Nasdaq, BX, NYSE American, NYSE Arca, PHLX, GEMX, EDGX, MRX, MIAX
PEARL, MIAX Emerald, and MEMX. 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 S7-966
and should be submitted on or before November 14, 2022.
V. Discussion
The Commission continues to believe that the proposed plan is an
achievement in cooperation among the SRO participants. The Plan, as
amended, will reduce unnecessary regulatory duplication by allocating
to the designated SRO the responsibility for certain options-related
sales practice matters that would otherwise be performed by multiple
SROs. The plan promotes efficiency by reducing costs to firms that are
members of more than one of the SRO participants. In addition, because
the SRO participants coordinate their regulatory functions in
accordance with the plan, the plan promotes, and will continue to
promote, investor protection.
Under paragraph (c) of Rule 17d-2, the Commission may, after
appropriate notice and comment, declare a plan, or any part of a plan,
effective. In this instance, the Commission believes that appropriate
notice and comment can take place after the proposed amendment is
effective. The primary purpose of the amendment is to add MEMX as a
Participant and to reflect the name changes of certain Participating
Organizations. By declaring it effective today, the amended Plan can
become effective and be implemented without undue delay. The Commission
notes that the prior version of this plan immediately prior to this
proposed amendment was published for comment and the Commission did not
receive any comments thereon.\26\ Furthermore, the Commission does not
believe that the amendment to the plan raises any new regulatory issues
that the Commission has not previously considered.
---------------------------------------------------------------------------
\26\ See Securities Exchange Act Release No. 85106 (February 12,
2019), 84 FR 4554 (February 15, 2019).
---------------------------------------------------------------------------
VI. Conclusion
This order gives effect to the amended Plan submitted to the
Commission that is contained in File No. S7-966.
It is therefore ordered, pursuant to Section 17(d) of the Act, that
the Plan, as amended, filed with the Commission pursuant to Rule 17d-2
on September 20, 2022, is hereby approved and declared effective.
It is further ordered that those SRO participants that are not the
DOEA as to a particular common member are relieved of those regulatory
responsibilities allocated to the common member's DOEA under the
amended Plan to the extent of such allocation.
---------------------------------------------------------------------------
\27\ 17 CFR 200.30-3(a)(34).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-22988 Filed 10-21-22; 8:45 am]
BILLING CODE 8011-01-P
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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.