[Federal Register Volume 87, Number 209 (Monday, October 31, 2022)]
[Notices]
[Pages 65624-65626]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-23578]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96149; File No. SR-NYSENAT-2022-23]


Self-Regulatory Organizations; NYSE National, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule To Amend Commentary 
.01 of NYSE National 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 National, Inc. (``NYSE National'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the

[[Page 65625]]

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\ 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 Commentary .01 of NYSE National 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 
www.nyse.com, 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 National 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 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.
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    \4\ See Securities Exchange Act Release No. 84350 (October 3, 
2018), 83 FR 51030 (October 10, 2018) (SR-NYSENat-2018-21) (Notice 
of Filing and Immediate Effectiveness of Amendments to Rules 
Regarding Qualification, Registration and Continuing Education 
Applicable to Equity Trading Permit Holders).
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    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. As adopted, the first sentence 
of Commentary .01 provides as follows:
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    \5\ See id., 83 FR at 51033.

    An ETP Holder may make application for or maintain the 
registration as a representative or principal of any associated 
person of an ETP Holder and any individual engaged in the securities 
business of a foreign securities affiliate or subsidiary of the ETP 
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Holder.

    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:
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    \6\ See FINRA Rule 1210.02; NYSE Rule 1210, Commentary .01; NYSE 
American Rule 1210, Commentary .01.

    An ETP Holder may make application for or maintain the 
registration as a representative or principal of any associated 
person of an ETP Holder and any individual engaged in the investment 
banking or securities business of a foreign securities affiliate or 
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subsidiary of the ETP Holder.

    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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    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

[[Page 65626]]

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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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6).
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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 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\
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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 has considered the proposed rule change'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 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.
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    \14\ 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

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSENAT-2022-23 on the subject line.

Paper Comments

     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-2022-23. 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 (http://www.sec.gov/rules/sro.shtml). 
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 10:00 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-NYSENAT-2022-23 and should be submitted 
on or before November 21, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-23578 Filed 10-28-22; 8:45 am]
BILLING CODE 8011-01-P


