
[Federal Register Volume 88, Number 218 (Tuesday, November 14, 2023)]
[Notices]
[Pages 78075-78077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25011]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-98875; File No. SR-NYSECHX-2023-20]


Self-Regulatory Organizations; NYSE Chicago, 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, the NYSE Chicago, Inc. (``NYSE Chicago'' 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 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 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 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.

[[Page 78076]]

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 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 2022, NYSE Chicago adopted disciplinary rules that are, with 
certain exceptions, substantially the same as the disciplinary rules of 
its affiliate NYSE Arca, Inc., 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\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 95020 (June 1, 
2022), 87 FR 35034 (June 8, 2022) (SR-NYSECHX-2022-10) (Notice of 
Filing of and Immediate Effectiveness of Proposed Rule Change To 
Adopt Investigation, Disciplinary, Sanction, and Other Procedural 
Rules Modeled on the Rules of the Exchange's Affiliates).
---------------------------------------------------------------------------

    In adopting disciplinary rules modeled on FINRA's rules, NYSE 
Chicago adopted procedures set forth in the Rule 10.9520 Series for a 
covered person to become or remain associated with a Participant or 
Participant Firm notwithstanding the existence of a statutory 
disqualification as defined in Section 3(a)(39) of the Act, and for a 
current Participant, Participant Firm or covered 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 FINRA's Form MC-400 for covered persons or Form 
MC-400A for Participants or Participant Firms 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 
replace ``Registration and Disclosure (`RAD')'' in Rule 10.9521(b)(1) 
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).
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

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

    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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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

[[Page 78077]]

designates the proposed rule change to be 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 also has considered the proposed rule'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 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

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-NYSECHX-2023-20 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-NYSECHX-2023-20. 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 (https://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 
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-NYSECHX-2023-20 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\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-25011 Filed 11-13-23; 8:45 am]
BILLING CODE 8011-01-P


