Notice2022-23581
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .01 of NYSE Arca Rule 2.1210
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 31, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 209 (Monday, October 31, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 209 (Monday, October 31, 2022)]
[Notices]
[Pages 65629-65631]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-23581]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96151; File No. SR-NYSEARCA-2022-69]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Commentary
.01 of NYSE Arca Rule 2.1210
October 25, 2022.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on October 11, 2022, NYSE Arca, Inc. (``NYSE Arca'' 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 Commentary .01 of NYSE Arca Rule
2.1210 to add text inadvertently omitted when the rule was adopted. 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 to amend Commentary .01 of NYSE Arca Rule
2.1210 (Registration Requirements) to add text inadvertently omitted
when the rule was adopted.
Proposed Rule Change
In 2018, the Exchange adopted Rule 2.1210 regarding registration
requirements and related Commentary.\4\ Rule 2.1210 provides that each
person engaged in the investment banking or securities business of an
ETP Holder, OTP Holder or OTP Firm must register with the Exchange as a
representative or principal in each category of registration
appropriate to his or her functions and responsibilities as specified
in Rule 2.1220 (Registration Categories), unless exempt from
registration pursuant to Rule 2.1230 (Associated Persons Exempt from
Registration). Rule 2.1210 also provides that such person is not
qualified to function in any registered capacity other than that for
which the person is registered, unless otherwise stated in the rules.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 84389 (October 10,
2018), 83 FR 52272 (October 16, 2018) (SR-NYSEArca-2018-71) (Notice
of Filing and Immediate Effectiveness of Amendments to Rules
Regarding Qualification, Registration and Continuing Education
Applicable to Equity Trading Permit Holders, Options Trading Permit
Holders or OTP Firms).
---------------------------------------------------------------------------
Rule 2.1210, Commentary .01, provides for permissive registrations,
and was adopted in order for the Exchange to harmonize its rules with
the rules of the Financial Regulatory Authority, Inc. (``FINRA'').\5\
The rule permits any associated person to obtain and maintain any
registration permitted by an ETP Holder, OTP Holder or OTP Firm. As
adopted, the first sentence of Commentary .01 provides as follows:
---------------------------------------------------------------------------
\5\ See id., 83 FR at 52275.
An ETP Holder, OTP Holder or OTP Firm may make application for
or maintain the registration as a representative or principal of any
associated person of an ETP Holder, OTP Holder or OTP Firm and any
individual engaged in the securities business of a foreign
securities affiliate or subsidiary of the ETP Holder, OTP Holder or
---------------------------------------------------------------------------
OTP Firm.
[[Page 65630]]
The Exchange inadvertently omitted the words ``investment banking
or'' immediately before ``securities business''. The omitted text
mirrors the language of FINRA Rule 1210.02 and Commentary .01 of the
version of Rule 2.1210 adopted by the Exchange's affiliates New York
Stock Exchange, Inc., and NYSE American LLC.\6\ As proposed, the first
sentence of Commentary .01 of Rule 2.1210 would read as follows (new
text italicized):
---------------------------------------------------------------------------
\6\ See FINRA Rule 1210.02; NYSE Rule 1210, Commentary .01; NYSE
American Rule 1210, Commentary .01.
An ETP Holder, OTP Holder or OTP Firm may make application for
or maintain the registration as a representative or principal of any
associated person of an ETP Holder, OTP Holder or OTP Firm and any
individual engaged in the investment banking or securities business
of a foreign securities affiliate or subsidiary of the ETP Holder,
---------------------------------------------------------------------------
OTP Holder or OTP Firm.
The Exchange does not propose any additional changes to the text of
Rule 2.1210.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\7\ in general, and
furthers the objectives of Section 6(b)(5),\8\ in particular, because
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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change 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 conforming change would add
clarity, transparency and consistency to the Exchange's registration
rules. The Exchange believes that market participants would benefit
from the increased clarity, thereby reducing potential confusion.
Similarly, the Exchange believes that the proposed changes would also
make the Exchange's registration rules more consistent with the rules
of its affiliates, thereby 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 rather is concerned
solely with amending the registration rules to make a conforming change
to add text inadvertently omitted when the rules were adopted.
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)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
Because the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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 19b4(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 so that the proposed
rule change may become operative immediately upon filing. The
Commission believes that because this rule change better harmonizes the
exchange's rules with those of FINRA, waiver of the 30-day operative
delay for this proposed rule change is consistent with the protection
of investors and the public interest. Accordingly, the Commission
hereby waives the 30-day operative delay and designates the proposed
rule change operative upon filing.\13\
---------------------------------------------------------------------------
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\14\ 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#f587809990d8969a9898909b8186b5869096db929a83"><span class="__cf_email__" data-cfemail="2153544d440c424e4c4c444f5552615244420f464e57">[email protected]</span></a>. Please include
File Number SR-NYSEARCA-2022-69 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-NYSEARCA-2022-69. 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
[[Page 65631]]
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-
NYSEARCA-2022-69 and should be submitted on or before November 21,
2022.
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-23581 Filed 10-28-22; 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 October 31, 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.