Notice2023-25012
Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules 10.9521 and 10.9522 To Correct Obsolete References to a FINRA Department
Primary source
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Published
November 14, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 218 (Tuesday, November 14, 2023)</title>
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[Federal Register Volume 88, Number 218 (Tuesday, November 14, 2023)]
[Notices]
[Pages 78073-78075]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-25012]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98877; File No. SR-NYSENAT-2023-24]
Self-Regulatory Organizations; NYSE National, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rules 10.9521 and 10.9522 To Correct Obsolete References to a FINRA
Department
November 7, 2023.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 26, 2023, NYSE National, Inc. (``NYSE National'' 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 to amend Rules 10.9521 (Purposes and
Definitions) and 10.9522 (Initiation of Eligibility Proceeding; Member
Regulation Consideration) to correct an obsolete reference to a
department of the Financial Industry Regulatory Authority, Inc.
(``FINRA''). 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 Rules 10.9521 (Purposes and
Definitions) and 10.9522 (Initiation of Eligibility Proceeding; Member
Regulation Consideration) to correct an obsolete reference to a FINRA
department.
Background and Proposed Rule Change
In 2018, NYSE National adopted disciplinary rules that are, with
certain exceptions, substantially the same as the disciplinary rules of
its affiliate NYSE American LLC, which are in turn substantially
similar to the FINRA Rule 8000 Series and Rule 9000 Series, and which
set forth rules for conducting investigations and enforcement
actions.\3\
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\3\ See Securities Exchange Act Release Nos. 83289 (May 17,
2018), 83 FR 23968, 23976 (May 23, 2018) (SR-NYSENAT-2018-02)
(Notice of Filing of Amendment No. 1 and Order Granting Accelerated
Approval of a Proposed Rule Change, as Amended by Amendment No. 1,
To Support the Re-Launch of NYSE National, Inc. on the Pillar
Trading Platform).
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In adopting disciplinary rules modeled on FINRA's rules, NYSE
National adopted procedures set forth in the Rule 10.9520 Series for an
Associated Person to become or remain associated with an ETP Holder
notwithstanding the existence of a statutory disqualification as
defined in Section 3(a)(39) of the Act, and for a current ETP Holder or
Associated Person to obtain relief from the eligibility or
qualification requirements of the Exchange's Rules, which the rule
refers to as ``eligibility proceedings.'' Rule 10.9521 sets forth
certain definitions relating to eligibility proceedings. Rule
10.9521(b)(1) defines the term ``Application'' to mean
[[Page 78074]]
FINRA's Form MC-400 for Associated Persons or Form MC-400A for ETP
Holders filed with FINRA's Department of Registration and Disclosure
(abbreviated as ``RAD'' in the Exchange's rules). Rule 10.9522, which
governs initiation of an eligibility proceeding by the Exchange,
contains references to RAD in subdivisions (b)(1), (c) and (e)(3)(A).
In 2020, FINRA changed RAD's name to ``Credentialing, Registration,
Education and Disclosure'' (abbreviated as ``CRED'' in FINRA's rules)
and amended, among others, FINRA Rules 9521 and 9522 to reflect the
name change.\4\ The Exchange proposes to conform the references in the
Exchange's rules. To effectuate this change, the Exchange would retain
the reference to ``FINRA's Department'' in Rule 10.9521(b)(1) and
change the capital ``D'' in department to lowercase. The Exchange would
also replace ``Registration and Disclosure (`RAD')'' in Rule
10.9521(a)(1) [sic] with ``Credentialing, Registration, Education and
Disclosure (`CRED')''. The Exchange would also replace ``RAD'' with
``CRED'' in Rules 10.9522(b)(1) (one reference), (c) (two references)
and (e)(3)(A) (one reference).
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\4\ See Securities Exchange Act Release No. 90344 (November 4,
2020), 85 FR 71695 (November 10, 2020) (SR-FINRA-2020-039) (Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend FINRA Rules To Reflect Name Changes to Two FINRA Departments:
The Office of Dispute Resolution and the Department of Registration
and Disclosure).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(5) of the Exchange Act,\5\ 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)(5).
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The Exchange believes that the proposed change to Rules 10.9521 and
10.9522 to update and replace obsolete references to a FINRA department
would increase the clarity and transparency of the Exchange's rules and
remove impediments to and perfect the mechanism of a free and open
market by ensuring that persons subject to the Exchange's jurisdiction,
regulators, and the investing public could more easily navigate and
understand the Exchange rules. The Exchange further believes that the
proposed change would not be inconsistent with the public interest and
the protection of investors because investors will not be harmed and in
fact would benefit from increased clarity, thereby reducing potential
confusion.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\6\ the Exchange
believes that the proposed rule change would not 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 deleting and
replacing obsolete references in its 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.
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\6\ 15 U.S.C. 78f(b)(8).
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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. 78(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
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 waving the 30-day operative delay is
consistent with the protection of investors and the public interest,
because it will allow the Exchange to correct obsolete references to a
FINRA department in its rule text. Accordingly, the Commission
designates the proposed rule change to be operative upon filing.\13\
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\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 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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#5b292e373e76383436363e352f281b283e38753c342d"><span class="__cf_email__" data-cfemail="1b696e777e36787476767e756f685b687e78357c746d">[email protected]</span></a>. Please include
file number SR-NYSENAT-2023-24 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-NYSENAT-2023-24. 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
[[Page 78075]]
post all comments on the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://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 a.m. and 3 p.m. Copies of the
filing also will be available for inspection and copying at the
principal office of the Exchange. Do not include personal identifiable
information in submissions; you should submit only information that you
wish to make available publicly. We may redact in part or withhold
entirely from publication submitted material that is obscene or subject
to copyright protection. All submissions should refer to file number
SR-NYSENAT-2023-24 and should be submitted on or before December 5,
2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-25012 Filed 11-13-23; 8:45 am]
BILLING CODE 8011-01-P
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