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Notice2026-21571

Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Harmonize NYSE Rule 3220 With Certain Changes by FINRA

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Published
October 22, 2026

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 91 Issue 203 (Thursday, October 22, 2026)</title>
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[Federal Register Volume 91, Number 203 (Thursday, October 22, 2026)]
[Notices]
[Pages 66748-66752]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-21571]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106691; File No. SR-NYSE-2026-51]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Harmonize NYSE Rule 3220 With Certain Changes by FINRA

October 19, 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 October 9, 2026, New York Stock Exchange LLC (``NYSE'' 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 Exchange. 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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[[Page 66749]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to harmonize NYSE Rule 3220 (Influencing or 
Rewarding Employees of Others) with certain changes by the Financial 
Industry Regulatory Authority, Inc. (``FINRA'') to FINRA Rule 3220 to, 
among other things, increase the gift limit from $100 to $300. 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.

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
    This proposed rule change is based on a filing recently submitted 
by FINRA, and approved by the Commission, to amend FINRA Rule 3220 
(Influencing or Rewarding Employees of Others), and is intended to 
harmonize the Exchange's rules with those of FINRA so as to promote 
uniform standards across the securities industry.\4\
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    \4\ See Securities Exchange Act Release No. 104830 (February 12, 
2026), 91 FR 7570 (February 18, 2026) (SR-FINRA-2025-003) (Order 
Approving a Proposed Rule Change, as Modified by Amendment No. 1, To 
Amend FINRA Rule 3220 (Influencing or Rewarding Employees of 
Others)) (``FINRA Rule Change'').
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    The Exchange proposes to harmonize NYSE Rule 3220 (Influencing or 
Rewarding Employees of Others) with certain changes by FINRA to FINRA 
Rule 3220 to increase the gift limit from $100 to $300. Additionally, 
unlike FINRA Rule 3220, current NYSE Rule 3220 does not include 
provisions covering: supervision and recordkeeping; gifts incidental to 
business entertainment; valuation of gifts; aggregation of gifts; 
personal gifts; bereavement gifts; de minimis gifts and promotional or 
commemorative items; donations due to federally declared major 
disasters; or gifts to a member or member organization's associated 
persons or individual retail customers. To further harmonize its rules 
with FINRA, the Exchange proposes to adopt these provisions in proposed 
Supplementary Material .01 through .09 to NYSE Rule 3220 that is 
substantially similar to Supplementary Material .01 through .09 to 
FINRA Rule 3220 adopted in the FINRA Rule Change.
    Pursuant to Rule 17d-2 under the Act,\5\ the Exchange and FINRA 
have entered into an agreement to allocate regulatory responsibility 
for common rules (the ``17d-2 Agreement''). The 17d-2 Agreement covers 
common members \6\ of the Exchange and FINRA and allocates to FINRA 
regulatory responsibility, with respect to common members, for the 
following: (i) examination of common members of the Exchange and FINRA 
for compliance with certain federal securities laws, rules and 
regulations and rules of the Exchange that the Exchange has certified 
as identical or substantially similar to FINRA rules; (ii) 
investigation of common members of the Exchange and FINRA for 
violations of certain federal securities laws, rules or regulations, or 
Exchange rules that the Exchange has certified as identical or 
substantially similar to a FINRA rule; and (iii) enforcement of 
compliance by common members with certain federal securities laws, 
rules and regulations, and the rules of the Exchange that the Exchange 
has certified as identical or substantially similar to FINRA rules.\7\
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    \5\ 17 CFR 240.17d-2.
    \6\ The 17d-2 Agreement defines ``common members'' to mean 
broker-dealers that maintain memberships in more than one self-
regulatory organization. See infra note 6.
    \7\ See Securities Exchange Act Release No. 56148 (July 26, 
2007), 72 FR 42146 (August 1, 2007) (approving File No. 4-544). The 
17d-2 Agreement includes a certification by NYSE that states that 
the requirements contained in certain Exchange rules are identical 
to, or substantially similar to, certain FINRA rules that have been 
identified as comparable.
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    NYSE Rule 3220 is based on FINRA Rule 3220.\8\ NYSE Rule 3220(a) 
states that no member, member organization, or person associated with a 
member organization, shall, directly or indirectly, give or permit to 
be given anything of value, including gratuities, in excess of one 
hundred dollars per individual per year to any person, principal, 
proprietor, employee, agent to representative of another person where 
such payment or gratuity is in relation to the business of the employer 
of the recipient of the payment or gratuity. NYSE Rule 3220(b) provides 
for certain exceptions from the requirements enumerated in Rule 
3220(a). Finally, NYSE Rule 3220(c) requires a member or member 
organization to maintain a record of payments or gratuities of any 
amount for a specified period of time.
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    \8\ See Securities Exchange Act Release No. 59965 (May 21, 
2009), 74 FR 25783 (May 29, 2009) (SR-NYSE-2009-25).
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    The Exchange believes that harmonizing NYSE Rule 3220 with FINRA 
Rule 3220 will help to avoid confusion among Exchange members and 
member organizations that are also members of FINRA. The proposed 
changes to NYSE Rule 3220 are also designed to enable the Exchange to 
incorporate the entirety of NYSE Rule 3220 in the 17d-2 Agreement, 
further reducing duplicative regulation of members and member 
organizations that are also members of FINRA. For the avoidance of 
doubt, NYSE Rule 3220 would equally apply to Exchange-only members and 
member organizations as the Exchange believes it appropriately protects 
against improprieties, such as conflicts of interest, that might arise 
when a member or member organization or person associated with a member 
organization gives items of value to an employee of another person, 
such as an institutional customer, vendor or counterparty with the hope 
of strengthening the relationship with the customer.
    As amended, like FINRA Rule 3220(a), paragraph (a) of NYSE Rule 
3220 would prohibit gifts in excess of $300 per individual per year 
where the gift or gratuity is in relation to the business of the 
employer of the recipient.
    Additionally, the Exchange proposes to adopt Supplementary Material 
.01 through .09 to NYSE Rule 3220 to codify the provisions within FINRA 
Supplementary Materials 3220.01 through 3220.09. More specifically, 
proposed Supplementary Material .01 through .09 to NYSE Rule 3220, like 
FINRA Supplementary Materials 3220.01 through 3220.09, would codify the 
FINRA Supplementary Materials to Rule 3220 related to gifts incidental 
to business entertainment, valuation of gifts, aggregation of gifts, 
personal gifts, bereavement gifts, de minimis gifts and promotional or 
commemorative items, donations due to federally declared major 
disasters, supervision and recordkeeping, and gifts to a Member's or 
Member Organization's associated persons or individual retail 
customers.
    Proposed Supplementary Material .01 (Gifts Incidental to Business 
Entertainment) would state that a gift given during the course of a 
business entertainment event is subject to Rule 3220 unless it is 
consistent with the

[[Page 66750]]

requirements of proposed Supplementary Material .04 (Personal Gifts) or 
.06 (De Minimis Gifts and Promotional or Commemorative Items) which is 
substantially similar to FINRA Rule 3220 Supplementary Material .04 and 
.06. For the purpose of the $300 limit, the cost of the business 
entertainment event itself would not be included in the value of the 
gift.
    Proposed Supplementary Material .02 (Valuation of Gifts) would 
require members and member organizations to value gifts (other than 
tickets for sporting or other events) at cost, exclusive of tax and 
delivery charges, and would require members and member organizations to 
value tickets for sporting or other events at the higher of cost or 
face value. If gifts are given to multiple recipients, members and 
member organizations must record the names of each recipient and 
calculate and record the value of the gift on a pro-rata, per-recipient 
basis, for purposes of ensuring compliance with the $300 limit in Rule 
3220(a). FINRA Rule 3220 at Supplementary Material .02 requires Members 
to value gifts (other than tickets for sporting or other events) at 
cost rather than at the higher of cost or market value reduces 
complexity and subjectivity because market value can be difficult and 
burdensome to determine, while distinguishing tickets for sporting or 
other events accounts for the fact that such tickets are commonly 
purchased on secondary markets at costs that differ from face value.
    Proposed Supplementary Material .03 (Aggregation of Gifts) would 
require members and member organizations to aggregate all gifts given 
by the member, member organization and each person associated with a 
member organization to a particular recipient over the course of the 
year for purposes of ensuring compliance with the $300 limit in Rule 
3220(a), and would require each member and member organization to state 
in its procedures whether it is aggregating all gifts given by the 
member, member organization and each person associated with a member 
organization on a calendar year, fiscal year, or on a rolling basis 
beginning with the first gift to any particular recipient. The 
aggregation requirement would not apply to personal gifts under 
proposed Supplementary Material .04 or to gifts of de minimis value or 
promotional or commemorative items under proposed Supplementary 
Material .06 as they are already not subject to the gift limit. This 
proposed provision, which is substantially similar to FINRA Rule 
3220(a), would help ensure that persons who give multiple gifts in a 
year to the same recipient do not circumvent the gift limit.
    Proposed Supplementary Material .04 (Personal Gifts) would state 
that gifts that are given for infrequent life events (e.g., a wedding 
gift or a congratulatory gift for the birth of a child) are not subject 
to the restrictions in Rule 3220(a) or the recordkeeping requirements 
in Rule 3220(c), provided the gifts are customary and reasonable, 
personal in nature, and not in relation to the business of the employer 
of the recipient. In determining whether a gift is ``personal in nature 
and not in relation to the business of the employer of the recipient,'' 
members or member organization should consider a number of factors, 
including the nature of any pre-existing personal or family 
relationship between the person giving the gift and the recipient and 
whether the associated person paid for the gift. When the member or 
member organization bears the cost of the gift, either directly or by 
reimbursing an associated person, the Exchange will presume that such 
gift is not personal in nature and instead is in relation to the 
business of the employer of the recipient. This provision is 
substantially similar to FINRA Rule 3220 at Supplementary Material .04.
    Proposed Supplementary Material .05 (Bereavement Gifts) separates 
bereavement gifts from personal gifts. Proposed Supplementary Material 
.05 would state that bereavement gifts that are customary and 
reasonable are not considered to be in relation to the business of the 
employer of the recipient and, therefore, are not subject to the 
restrictions in Rule 3220(a) or the recordkeeping requirements in Rule 
3220(c). This provision is substantially similar to FINRA Rule 3220 at 
Supplementary Material .05.
    Proposed Supplementary Material .06 (De Minimis Gifts and 
Promotional or Commemorative Items), at paragraph (a), would state that 
gifts of a de minimis value (e.g., pens, notepads, or modest desk 
ornaments) or promotional items of nominal value that display the 
member's or member organization's logo (e.g., umbrellas, tote bags, or 
shirts) are not subject to the restrictions in Rule 3220(a) or the 
recordkeeping requirements in Rule 3220(c), provided that the value of 
the gift or promotional item is substantially below the $300 limit. 
Proposed Supplementary Material .06(b) would state that customary and 
reasonable solely decorative items commemorating a business transaction 
are not subject to the restrictions in Rule 3220(a) or the 
recordkeeping requirements in Rule 3220(c). These provisions are 
substantially similar to FINRA Rule 3220 at Supplementary Material .06.
    Proposed Supplementary Material .07 (Donations Due to Federally 
Declared Major Disasters) would state that donations by a member, 
member organization, or person associated with a member organization to 
any person, principal, proprietor, employee, agent or representative of 
another person to provide assistance to the individual for losses 
sustained in a natural event that the President has declared to be a 
major disaster, such as a wildfire, hurricane, tornado, earthquake, or 
flood, are not considered ``in relation to the business of the employer 
of the recipient'' for purposes of Rule 3220(a) and are not subject to 
the restrictions in Rule 3220(a) or the recordkeeping requirements of 
Rule 3220(c). This provision is substantially similar to FINRA Rule 
3220 at Supplementary Material .07 which recognizes that the nature of 
such disasters is unpredictable and catastrophic.
    Proposed Supplementary Material .08 (Supervision and Recordkeeping) 
would state that Rule 3110 requires member organizations to have a 
supervisory system reasonably designed to achieve compliance with 
applicable securities laws and regulations and Exchange rules, 
including Rule 3220. To meet these standards, member organizations 
would be required to have systems and procedures reasonably designed to 
ensure that payments and gratuities in relation to the business of the 
employer of the recipient given by the member organization or persons 
associated with a member organization to employees of another person 
are (a) reported to the member organization; (b) reviewed for 
compliance with Rule 3220; and (c) maintained in the member 
organization's records. Such procedures must be reasonably designed to 
ensure that an associated person who is giving a payment or gratuity is 
not responsible for determining whether such payment or gratuity is in 
relation to the business of the recipient's employer. Member 
organizations are not required to maintain records of gifts that are 
consistent with the requirements of proposed Supplementary Material .04 
through .07 of Rule 3220. Requiring a person other than the associated 
person giving the gift to assess the nature of the gift is intended to 
encourage objectivity in making such determinations, consistent with 
existing FINRA guidance.
    Proposed Supplementary Material .09 (Gifts to a Member 
Organization's Associated Persons or Individual Retail Customers) would 
state that Rule 3220 does not apply to gifts from a member

[[Page 66751]]

organization to its own associated persons, or to gifts from a member 
organization or person associated with a member organization to 
individual retail customers. The Exchange believes that proposed 
Supplementary Material .09 would clarify, and improve awareness and 
understanding of, the scope of Rule 3220, consistent with FINRA Rule 
3220 at Supplementary Material .09.
    The Exchange notes that, although the FINRA Rule Change provides 
authority for FINRA to grant exemptive relief to FINRA Rule 3220, the 
Exchange's proposed rule change would not harmonize or align with FINRA 
through the inclusion of a corresponding provision.\9\ The Exchange 
notes that, historically, it has not always aligned with FINRA with 
respect to providing exemptive relief to member organizations and in 
fact, has provided exemptive relief in very limited circumstances to 
member organizations, as illustrated in NYSE Rule 9610.
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    \9\ The FINRA Rule Change included a new section within Rule 
3220, which authorizes FINRA staff, pursuant to the FINRA Rule 9600 
series, to conditionally or unconditionally grant an exemption from 
any provision of Rule 3220 for good cause shown, taking into account 
all relevant factors and provided that such exemption is consistent 
with the purposes of FINRA Rule 3220, the protection of investors, 
and the public interest. See FINRA Rule 3220(d).
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    The Exchange believes the proposed rule change would promote 
efficiency without reducing protection for investors and the public 
interest. The proposed changes to NYSE Rule 3220 to conform to the 
rules of FINRA improve transparency, awareness, and understanding of 
NYSE Rule 3220's requirements. The Exchange believes these proposed 
changes would also help facilitate compliance with NYSE Rule 3220 and 
would provide regulatory certainty to members and member organizations.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of 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.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change will further 
these requirements by providing greater harmonization between Exchange 
and FINRA rules of similar purpose, resulting in greater uniformity and 
less burdensome and more efficient regulatory compliance. As such, the 
proposed rule change would foster cooperation and coordination with 
persons engaged in facilitating transactions in securities and would 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system in accordance with Section 6(b)(5) 
of the Act.\12\
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    \12\ Id.
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    As noted above, the proposed rule change to amend current NYSE Rule 
3220 is designed to conform the Exchange's Rule to the comparable FINRA 
rule. The Exchange also notes the changes proposed herein align NYSE 
Rule 3220 with a recent filing submitted by FINRA and approved by the 
Commission.\13\
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    \13\ See supra note 4.
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    As described above, the Exchange believes the proposed change to 
amend current Exchange Rule 3220 to conform to FINRA Rule 3220 is 
consistent with the Act because it is intended to harmonize the 
Exchange Rule with the comparable FINRA rule and will promote uniform 
standards across the securities industry. The Exchange also believes 
the proposed change to adopt Supplementary Material .01 through .09 to 
Exchange Rule 3220 is consistent with the Act because it is a 
conforming change to adopt the provisions within FINRA Supplementary 
Materials 3220.01 through 3220.09. The Exchange further believes that 
these changes will help to reduce and avoid potential confusion among 
members, member organizations, and persons associated with member 
organizations of the Exchange that are also members of FINRA by 
harmonizing Exchange Rule 3220 with FINRA Rule 3220. The proposed rule 
change is designed to enable the Exchange to incorporate Exchange Rule 
3220 into the 17d-2 Agreement, further reducing duplicative regulation 
of members, member organizations, and persons associated with member 
organizations that are also members of FINRA. For the avoidance of 
doubt, Exchange Rule 3220 would equally apply to Exchange-only members 
and member organizations as the Exchange believes it appropriately 
protects against improprieties that might arise when substantial gifts 
or monetary payments are given to certain persons.
    The Exchange believes the proposed rule change would promote 
efficiency without reducing protection for investors and the public 
interest. The proposed changes to Exchange Rule 3220 to conform to the 
rules of FINRA improve transparency, awareness, and understanding of 
the Exchange Rule's requirements. The Exchange believes these proposed 
changes would also help facilitate compliance with NYSE Rule 3220.

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 designed to address any competitive issues but rather to provide 
greater harmonization among Exchange and FINRA rules of similar 
purpose, resulting in less burdensome and more efficient regulatory 
compliance for common members and facilitating FINRA's performance of 
its regulatory functions under the 17d-2 Agreement. As such, the 
Exchange does not believe that the proposed rule change will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act.

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 \14\ and Rule 19b-4(f)(6) thereunder.\15\ 
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.
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    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6).

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[[Page 66752]]

    A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\17\ 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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    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-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) \18\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \18\ 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#a3d1d6cfc68ec0cccecec6cdd7d0e3d0c6c08dc4ccd5"><span class="__cf_email__" data-cfemail="5c2e293039713f3331313932282f1c2f393f723b332a">[email&#160;protected]</span></a>. Please include 
file number SR-NYSE-2026-51 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-NYSE-2026-51. 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-NYSE-2026-51 and should be submitted on 
or before November 12, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-21571 Filed 10-21-26; 8:45 am]
BILLING CODE 8011-01-P


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