Notice2026-19639
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NYSE Arca Rule 2.1210
Primary source
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Published
September 25, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 185 (Friday, September 25, 2026)</title>
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[Federal Register Volume 91, Number 185 (Friday, September 25, 2026)]
[Notices]
[Pages 61016-61018]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19639]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106462; File No. SR-NYSEARCA-2026-96]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend NYSE Arca
Rule 2.1210
September 22, 2026.
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 September 10, 2026, 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 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 NYSE Arca Rule 2.1210 (Registration
Requirements) applicable to Equity Trading Permit (``ETP'') Holders,
Options Trading Permit (``OTP'') Holders and OTP Firms (collectively,
``Members'') \4\ to align with a recent
[[Page 61017]]
amendment by the Financial Industry Regulatory Authority, Inc.
(``FINRA''). The proposed rule change is available on the Exchange's
website at <a href="http://www.nyse.com">www.nyse.com</a> and at the principal office of the Exchange.
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\4\ Pursuant to Rule 1.1, in general, the term ``ETP Holder''
refers to a sole proprietorship, partnership, corporation, limited
liability company or other organization in good standing that has
been issued an ETP. An ETP Holder must be a registered broker or
dealer pursuant to Section 15 of the Act. Pursuant to Rule 1.1, in
general, the term ``ETP'' refers to an Equity Trading Permit issued
by the Exchange for effecting approved securities transactions on
the Exchange's Trading Facilities. Pursuant to Rule 1.1, in general,
the term ``OTP Holder'' refers to a natural person, in good
standing, who has been issued an OTP, or has been named as a
Nominee. An OTP Holder must be a registered broker or dealer
pursuant to Section 15 of the Act, or a nominee or an associated
person of a registered broker or dealer that has been approved by
the Exchange to conduct business on the Exchange's Trading
Facilities. Under the Exchange's rules, an OTP Holder has the status
as a ``member'' of the Exchange as that term is defined in Section 3
of the Act, as amended. Pursuant to Rule 1.1, in general, the term
``OTP'' refers to an Options Trading Permit issued by the Exchange
for effecting approved securities transactions on the Exchange's
Trading Facilities. Pursuant to Rule 1.1, in general, the term ``OTP
Firm'' refers to a sole proprietorship, partnership, corporation,
limited liability company or other organization in good standing who
holds an OTP or upon whom an individual OTP Holder has conferred
trading privileges on the Exchange's Trading Facilities pursuant to
and in compliance with Exchange rules. An OTP Firm must be a
registered broker or dealer pursuant to Section 15 of the Act. For
complete definitions of each of the terms above, see Rule 1.1.
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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 NYSE Arca Rule 2.1210 (Registration
Requirements). More specifically, the Exchange proposes to reduce the
waiting periods for retaking FINRA qualification examinations as
provided in Commentary .05 to NYSE Arca Rule 2.1210 (Waiting Periods
for Retaking a Failed Examination) to align with a recent amendment to
FINRA Rule 1210, Supplementary Material .06.\5\
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\5\ See Securities Exchange Act Release No. 105885 (July 13,
2026), 91 FR 43678 (July 16, 2026) (SR-FINRA-2026-014) (``FINRA Rule
Change'').
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NYSE Arca Rule 2.1210 requires each person engaged in the
investment banking or securities business of a Member to be registered
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). Pursuant to Commentary .02 to NYSE Arca Rule 2.1210
(Qualification Examinations and Waivers of Examinations), before a
person can be registered with the Exchange, he or she must pass the
appropriate qualification examinations or obtain a waiver of the
qualification examination requirement. If a person fails a
qualification examination, Commentary .05 to NYSE Arca Rule 2.1210
(Waiting Periods for Retaking a Failed Examination) sets forth the time
the person must wait before he or she can retake that qualification
examination.
For the first and second failed attempts, the person must currently
wait 30 calendar days to retake the qualification examination. A person
who fails a qualification examination three or more times in succession
within a two-year period must currently wait 180 calendar days before
he or she can retake that examination. These waiting periods apply to
the Securities Industry Essentials (``SIE'') examination and the
representative and principal examinations specified under NYSE Arca
Rule 2.1220.
FINRA amended its Rule 1210, Supplementary Material .06, to shorten
the required qualification examination retake waiting periods to 15
calendar days after the first and second failed attempts, and 60
calendar days after the third and all subsequent failed attempts that
occur within a two-year period.\6\ As described in the FINRA Rule
Change, since the current waiting periods were adopted in 1989, FINRA's
qualification program has undergone significant changes that have
shifted the principal risks that originally informed the rule. FINRA
noted in the FINRA Rule Change that today's high-volume FINRA
qualification examinations use extensive question banks that contain
thousands of questions, with each test taker receiving only a small
subset of questions per attempt, which reduces both the likelihood that
repeat test takers will depend on memorized questions from prior
attempts and the risk of content being disseminated to others.
Additionally, FINRA noted in the FINRA Rule Change that it employs data
forensics and advanced technology to identify misconduct and
compromised examination content, taking appropriate corrective action
when such incidents occur. Moreover, these enhanced detection
capabilities help to ensure that the shortened waiting periods would
not compromise FINRA's ability to conduct timely investigations into
possible cheating or other violations of examination rules of
conduct.\7\ Over the past several years, FINRA noted it has received
input from various industry channels about the burden that the current
qualification examination waiting periods place on individuals seeking
to enter the securities industry.\8\ Similar feedback regarding these
challenges was received by FINRA in response to its request for comment
on modernizing FINRA rules, guidance, and processes for the
organization and operation of member workplaces.\9\ Given this
consistent input and the changes to the qualification program described
above, FINRA determined that shortening the waiting periods would
lessen the burden on individuals while continuing to protect investors
by maintaining appropriate program integrity.
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\6\ Id.
\7\ Id.
\8\ Id.
\9\ See FINRA Regulatory Notice 25-07 (April 2025).
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At this time, NYSE Arca proposes to amend Rule 2.1210, Commentary
.05, to conform to FINRA Rule 1210, Supplementary Material .06.
Specifically, the Exchange proposes to reduce the waiting period after
the first and second failed attempts from 30 to 15 calendar days, and
to reduce the waiting period after the third and all subsequent failed
attempts within a two-year period from 180 to 60 calendar days. The
Exchange believes that conforming its rules to FINRA's amended
requirements will promote consistency and reduce potential confusion
for Members and their associated persons. Because Members and their
associated persons are also subject to FINRA's registration and
qualification requirements, maintaining uniform waiting periods across
both rule sets ensures that individuals experience a coherent and
predictable regulatory framework.
In the FINRA Rule Change, FINRA noted it would announce the
implementation date of its rule change in a Regulatory Notice. The
Exchange will likewise announce the implementation date of this
proposed rule change via a Regulatory Memo on or around the same time
as the Regulatory Notice published by FINRA.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\10\ in general, and
furthers the objectives of Section 6(b)(5),\11\ 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, by reducing
the waiting
[[Page 61018]]
periods for retaking FINRA qualification examinations to align with
FINRA Rule 1210, Supplementary Material .06. Specifically, the Exchange
believes that the proposed rule change protects investors and the
public interest by conforming the Exchange's qualification examination
waiting periods to FINRA's amended requirements, thereby promoting
consistency across the regulatory framework and reducing potential
confusion for Members and their associated persons. As described in
detail in the FINRA Rule Change, changes to the FINRA qualification
program have reduced the risks that originally informed the current
waiting periods, and the shortened periods continue to provide
sufficient time for the maintenance of examination integrity and the
investigation of potential misconduct. The proposed rule change also
fosters cooperation and coordination with persons engaged in regulating
transactions in securities by aligning the Exchange's qualification
examination requirements with those of FINRA. Further, the proposed
rule change removes impediments to and perfects the mechanism of a free
and open market by reducing unnecessary barriers to entry for
individuals seeking to register to work in the securities industry.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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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
does not impose any undue burden on competition; rather, it conforms
the Exchange's qualification examination waiting periods to FINRA's
amended requirements and does not impose any new obligations or
restrictions on Members. The proposed rule change may benefit all
Members by allowing them to more quickly make personnel decisions
regarding their associated persons' qualification examination retake
timing.
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 \12\ and Rule 19-4(f)(6) thereunder.\13\
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 19-
4(f)(6)(iii) thereunder.
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19-4(f)(6).
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A proposed rule change filed under Rule 19-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19-4(f)(6)(iii),\15\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\14\ 17 CFR 240.19-4(f)(6).
\15\ 17 CFR 240.19-4(f)(6)(iii).
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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) \16\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\16\ 15 U.S.C. 78s(b)(2)(B).
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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#d6a4a3bab3fbb5b9bbbbb3b8a2a596a5b3b5f8b1b9a0"><span class="__cf_email__" data-cfemail="5624233a337b35393b3b333822251625333578313920">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2026-96 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-2026-96. 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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing 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-NYSEARCA-2026-96 and should be submitted
on or before October 16, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-19639 Filed 9-24-26; 8:45 am]
BILLING CODE 8011-01-P
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