[Federal Register Volume 87, Number 106 (Thursday, June 2, 2022)]
[Notices]
[Pages 33542-33548]
[FR Doc No: 2022-11789]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94987; File No. SR-NYSECHX-2022-08]

Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Order Granting Accelerated Approval of a Proposed Rule
Change To Adopt Rules 10.9216(b) and 10.9217 in Connection With a
Companion Filing To Adopt Investigation, Disciplinary, Sanction, and
Other Procedural Rules Modeled on the Rules of Its Affiliates

May 26, 2022.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on May 13, 2022, the NYSE Chicago, Inc. (``NYSE Chicago''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II 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 and approving the proposal
on an accelerated basis.
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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, in connection with a companion filing to
adopt investigation, disciplinary, sanction, and other procedural rules
modeled on the rules of its affiliates, to (1) adopt new Rules
10.9216(b) and 10.9217 governing minor rule violations and fines; (2)
add additional rules to the Exchange's list of current minor rule
violations that would be transposed to proposed Rule 10.9217; and (3)
move the Recommended Fine Schedule for minor rule violations from the
Fee Schedule to proposed Rule 10.9217 and make certain amendments and
corrections. The proposed 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 III 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
    In connection with a companion filing to adopt investigation,
disciplinary, sanction, and other procedural rules modeled on the rules
of its affiliates,\4\ the Exchange proposes to (1) adopt new Rules
10.9216(b) and 10.9217 governing minor rule violations and fines; (2)
add additional rules to the Exchange's list of current minor rule
violations that would be transposed to proposed Rule 10.9217; and (3)
move the Recommended Fine Schedule for minor rule violations from the
Fee Schedule to proposed Rule 10.9217and make certain amendments and
corrections.
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    \4\ See SR-NYSECHX-2022-10.
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Background
    Beginning in 2013, each of the Exchange's affiliates have adopted
rules relating to investigation, discipline, sanction, and other
procedural rules based on the rules of the Financial Industry
Regulatory Authority (``FINRA'').\5\ To facilitate rule harmonization
among the Exchange's affiliates, the Exchange has separately proposed
the NYSE Chicago Rule 10.8000 and 10.9000 Series based on the text of
the NYSE Arca Rule 10.8000 and Rule 10.9000 Series, with certain
changes, as described in its companion filing. In connection with
adoption of the proposed NYSE Chicago Rule 10.8000 and 10.9000
Series,\6\ the Exchange proposes to adopt NYSE Arca rules related to
issuance of minor rule fines that would replace the Exchanges current
Article 12, Rule 8 which sets forth the Exchange's Minor Rules
Violation Plan (``MRVP'').\7\
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    \5\ In 2013, the Commission approved the New York Stock Exchange
LLC's (``NYSE'') adoption of FINRA's disciplinary rules. See
Securities Exchange Act Release No. 69045 (March 5, 2013), 78 FR
15394 (March 11, 2013) (SR-NYSE-2013-02). In 2016, NYSE American LLC
(``NYSE American'') adopted its Rule 8000 and Rule 9000 Series based
on the NYSE and FINRA Rule 8000 and Rule 9000 Series. See Securities
Exchange Act Release Nos. 77241 (February 26, 2016), 81 FR 11311
(March 3, 2016) (SR-NYSEMKT-2016-30). In 2018, the Commission
approved NYSE National, Inc.'s (``NYSE National'') adoption of the
NYSE National Rule 10.8000 and Rule 10.9000 Series based on the NYSE
American and FINRA Rule 8000 and Rule 9000 Series. See Securities
Exchange Act Release No. 83289 (May 17, 2018), 83 FR 23968 (May 23,
2018) (SR-NYSENat-2018-02). In 2019, NYSE Arca, Inc. (``NYSE Arca'')
adopted the NYSE Arca Rule 10.8000 and 10.9000 Series based on the
NYSE American Rule 8000 and Rule 9000 Series. See Securities
Exchange Act Release No. 85639 (April 12, 2019), 84 FR 16346 (April
18, 2019) (SR-NYSEArca-2019-15).
    \6\ See note 4, supra.
    \7\ The Exchange adopted its current MRVP in 1996. See
Securities Exchange Act Release No. 37255 (May 30, 1996), 61 FR
28918 (June 6, 1996) (SR-CHX-95-25) (Order). The original procedure
authorizing the Exchange, in lieu of commencing disciplinary
proceeding, to impose a fine, not to exceed $2,500, on any member,
member organization, associated person or registered or
nonregistered employee of a member or member organization for any
violation of an Exchange rule which the Exchange determines to be
minor in nature was contained in as Article 12, Rule 9, now Article
12, Rule 8. The recommended dollar amounts for the first, second,
third and subsequent violations, as calculated on a twelve-month
rolling basis, of a rule designated as a minor rule violation was
contained in a separate Recommended Fine Schedule in the Fee
Schedule. See id., 61 FR at 28918-19 & n. 10.
    In 2011, the Exchange increased the maximum fine pursuant to the
MRVP from $2,500 to $5,000 and also increased the recommended fines
from $100/$500/$1,000 for 1st, 2nd and 3rd tier fines, respectively,
to $250/$750/$1,500. The Exchange also recommended fines of $500/
$1,000/$2,500 for other, more serious trading rule violations (i.e.,
ones involving the potential for customer harm), as well as
violations of the obligation to establish, maintain and enforce
written supervisory procedures, and to provide information to the
Exchange in connection with regulatory inquiries or other matters.
Recommended fines of $1,000/$2,500/$5,000 were reserved for Trading
Ahead violations. The Exchange also expanded the rolling time period
in which violations would result in escalation to the next highest
tier from 12 to 24 months. See Securities Exchange Act Release No.
64370 (April 29, 2011), 76 FR 25727, 25727 (May 5, 2011) (SR-CHX-
2011-07) (Notice); Securities Exchange Act Release 64686 (June 16,
2011), 76 FR 36596 (June 22, 2011) (SR-CHX-2011-07) (Order). See
also text accompanying note 20, infra.
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    Under current Article 12, Rule 8, in lieu of commencing a
``disciplinary proceeding'' as that term is used in Article 12 of the
Exchange Rules, the Exchange may, subject to the requirements set forth
in this Rule, impose a censure or fine, not to exceed

$5,000,\8\ on any Participant, Associated Person, or registered or non-
registered employee of a Participant, for any violation of a rule of
the Exchange, which violation the Exchange shall have determined is
minor in nature.\9\ For failures to comply with the Consolidated Audit
Trail Compliance Rule requirements of the Rule 6.6800 Series, the
Exchange may impose a minor rule violation fine of up to $2,500. For
more serious violations, other disciplinary action may be sought.
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    \8\ Proposed Rule 10.9217 would retain the Exchange's maximum
$5,000 fine for minor rule violations under current Article 12, Rule
8. While proposed Rule 10.9217 would allow the Exchange to
administer fines up to $5,000, the Exchange is only seeking relief
from the reporting requirements of paragraph (c)(1) of Rule 19d-1
for fines administered under proposed Rule 10.9217 that do not
exceed $2,500.
    \9\ As set forth in Article 12, Rule 8(f), the Exchange is not
required to impose a censure or fine with respect to the violation
of any rule or policy included in any such listing and the Exchange
shall be free, whenever it determines that any violation is not
minor in nature, to proceed under other provisions of Article 12
rather than under Article 12, Rule 8.
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    Any censure or fine imposed pursuant to Article 12, Rule 8 and not
contested shall not be publicly reported, except as may be required by
Rule 19d-1 under the Exchange Act, and as may be required by any other
regulatory authority. Any censure or fine that is contested may be
publicly reported to the same extent that Exchange disciplinary
proceedings may be publicly reported. Any fine imposed pursuant to
Article 12, Rule 8 that (1) does not exceed $2,500 and (2) is not
contested, shall be reported by the Exchange to the Securities and
Exchange Commission (the ``Commission'') on a periodic, rather than a
current, basis, except as may otherwise be required by Exchange Act
Rule 19d-1 and by any other regulatory authority. Under Article 12,
Rule 8(b), the Chief Enforcement Counsel or Chief Regulatory Officer
(``CRO'') have the authority to impose a fine pursuant to the rule.
    Under Article 12, Rule 8(c), in any action taken by the Exchange
pursuant to the rule, the person against whom a censure or fine is
imposed shall be served as provided in Article 12, Rule 1(c) with a
written statement, signed by an Exchange officer setting forth (1) the
rule(s) or policy(ies) alleged to have been violated; (2) the act or
omission constituting each violation; (3) the sanctions imposed for
each violation; (4) the date on which such action is taken; and (5) the
date on which such determination becomes final and such fine, if any,
becomes due and payable to the Exchange, or on which such action must
be contested as provided in paragraph (e) of Article 12, Rule 8, such
date to be not less than 15 days after the date of service of the
written statement. Pursuant to Article 12, Rule 8(d), if the person
fined pursuant to the rule pays the fine, such payment is deemed a
waiver of any right to a disciplinary proceeding under Article 12 and
any right to review or appeal. Commentary .01 to Article 12, Rule 8
provides that, with respect to subsection (d), a failure to pay a fine
imposed Article 12, Rule 8 by the time it is due, without timely
contesting the action upon which such fine was based pursuant to
Article 12, Rule 8(e), shall be deemed a waiver by the person against
whom the fine is imposed of such person's right to a disciplinary
proceeding under Article 12 and any right to review or appeal.
    Under Article 12, Rule 8(e), any person censured or fined pursuant
to the rule may contest such censure or fine by filing with the
Secretary a written response meeting the requirements of an Answer as
provided in Article 12, Rule 4(b) no later than the date by which such
determination must be contested. The Secretary may deny the answer if
such answer is untimely or the answer fails to meet the standards of
Article 12, Rule 4(b). If the Secretary denies the answer without leave
to amend and refile, the sanction imposed by the Exchange pursuant to
Article 12, Rule 8(b) shall become final and the censure shall be
imposed and/or fine become due and payable. Unless denied by the
Secretary, an answer filed by respondent is deemed accepted, at which
point the matter shall become a ``Disciplinary Proceeding'' subject to
the provisions of Article 12 applicable to disciplinary proceedings.
    Pursuant to Article 12, Rule 8(f), the Exchange must prepare and
announce to its Participants from time to time a listing of the
Exchange rules and policies as to which the Exchange may impose
censures or fines as provided in this Rule that must also indicate the
specific or recommended dollar amount that may be imposed as a fine
hereunder with respect to any violation of such rule or policy, or may
indicate the minimum and maximum dollar amount that may be imposed by
the Exchange with respect to any such violation. In applying the
current Recommended Fine Schedule set forth in the Fee Schedule, the
Exchange considers a violation as having occurred at the time that the
underlying conduct of the Participant occurred. Nothing in Article 12,
Rule 8 requires the Exchange to impose a censure or fine pursuant to
the Rule with respect to the violation of any rule or policy included
in any such listing and the Exchange shall be free, whenever it
determines that any violation is not minor in nature, to proceed under
other provisions of Article 12 rather than under Rule 8. Under Article
12, Rule 8(g), any fine assessed under Rule 8 cannot be deemed to
satisfy any damages or liability incurred from the violation.
    Article 12, Rule 8(h) sets forth the Exchange rules and policies
that are subject to the MRVP.
Proposed Rule Change
    The Exchange proposes to adopt new Rules 10.9216(b) and 10.9217
based on NYSE Arca Rules 10.9216(b) and 10.9217. The Exchange would
retain the text of the Exchange's currently applicable list of minor
rule violations in proposed Rule 10.9217 and make certain corrections
and additions, as described below. In addition, the Exchange would move
the Recommended Fine Schedule for minor rule violations from the Fee
Schedule to proposed Rule 10.9217 and make certain amendments and
corrections. The Exchange proposes to add Rules 10.9216(b) and 10.9217
to Rule 10 governing disciplinary proceedings, other hearings and
appeals that will house the proposed Rule 10.8000 and 10.9000 Series
based on the text of the NYSE Arca Rule 10.8000 and Rule 10.9000 Series
that is the subject of the Exchange's companion immediately effective
filing.
Proposed Rule 10.9216(b)
    Subsection (b) of proposed Rule 10.9216 (Acceptance, Waiver, and
Consent; Procedure for Imposition of Fines for Minor Violation(s) of
Rules) would set forth the procedure for the imposition of fine for
minor rule violations under the Exchange's new disciplinary rules based
on NYSE Arca Rule 10.9216(b).\10\ Proposed Rule 10.9216(b)(1) would
provide that, notwithstanding Rule 10.9211,\11\ the Exchange may,
subject to the

requirements set forth in paragraphs (b)(2) through (b)(4), impose a
fine in accordance with the fine amounts and fine levels set forth in
proposed Rule 10.9217 and/or a censure on any Participant,\12\
Participant Firm or covered person \13\ with respect to any rule listed
in Rule 10.9217. If Enforcement has reason to believe a violation has
occurred and if the Participant, Participant Firm or covered person
does not dispute the violation, Enforcement may prepare and request
that the Participant, Participant Firm or covered person execute a
minor rule violation letter accepting a finding of violation,
consenting to the imposition of sanctions, and agreeing to waive such
Participant's, Participant Firm's or covered person's right to a
hearing before a Hearing Panel or, if applicable, an Extended Hearing
Panel,\14\ and any right of review by the Exchange Board of Directors
(``Board''), the Commission, and the courts, or to otherwise challenge
the validity of the letter, if the letter is accepted. The letter would
describe the act or practice engaged in or omitted, the rule,
regulation, or statutory provision violated, and the sanction or
sanctions to be imposed. Unless the letter states otherwise, the
effective date of any sanction(s) imposed would be a date to be
determined by Regulatory Staff.\15\
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    \10\ Proposed subsection (a) would establish the procedures by
which a Participant, Participant Firm or covered person, prior to
the issuance of a complaint, could execute a letter of acceptance,
waiver, and consent accepting a finding of violation, consenting to
the imposition of sanctions and waiving the right to a hearing or
appeal. Proposed Rule 10.9216(a) would be adopted as part of the
Exchange's companion filing. See note 4, supra.
    \11\ Proposed Rule 10.9211 (Authorization of Complaint) would be
adopted as part of the Exchange's companion filing and would permit
Enforcement to request the authorization from the Chief Regulatory
Officer (``CRO'') to issue a complaint against any Participant,
Participant Firm and covered persons of a Participant or Participant
Firm, thereby commencing a disciplinary proceeding.
    \12\ The term ``Participant'' is defined in Article 1, Rule 1(s)
to mean, among other things, any Participant Firm that holds a valid
Trading Permit and that a Participant shall be considered a
``member'' of the Exchange for purposes of the Act. If a Participant
is not a natural person, the Participant may also be referred to as
a Participant Firm, but unless the context requires otherwise, the
term Participant shall refer to an individual Participant and/or a
Participant Firm. For the avoidance of doubt, this rule filing and
the proposed disciplinary rules will use the phrase Participant and/
or Participant Firm.
    \13\ ``Covered person'' would be defined in proposed Rule
10.9120(g) in the companion filing as an Associated Person as
defined in Article 1, Rule 1(d) and any other person subject to the
jurisdiction of the Exchange.
    \14\ ``Hearing Panel'' and ``Extended Hearing Panel'' would be
defined in proposed Rule 10.9120(s) and (p), respectively, in the
companion filing. The term ``Hearing Panel'' would mean an
Adjudicator that is constituted under proposed Rule 10.9231 to
conduct a disciplinary proceeding governed by the proposed Rule
10.9200 Series, that is constituted under the proposed Rule 10.9520
Series or the proposed Rule 10.9550 Series to conduct a proceeding,
or that is constituted under the Rule 10.9800 Series to conduct a
temporary cease and desist proceeding. The term ``Extended Hearing
Panel'' would mean an Adjudicator that is constituted under proposed
Rule 10.9231(c) to conduct a disciplinary proceeding that is
classified as an ``Extended Hearing'' and is governed by the
proposed Rule 10.9200 Series.
    \15\ ``Regulatory Staff'' would be defined in proposed Rule
10.9120(x) in the companion filing as (1) any officer or employee
reporting, directly or indirectly, to the CRO of the Exchange; and
(2) FINRA staff acting on behalf of the Exchange in connection with
the proposed Rule 10.8000 Series and Rule 10.9000 Series.
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    Proposed Rule 10.9216(b)(2)(A)(i) would provide that if a
Participant, Participant Firm or covered person submits an executed
minor rule violation letter, the submission of such a letter by the
Participant, Participant Firm or covered person also waives any right
to claim bias or prejudgment of the CRO, the Board, Counsel to the
Board, or any Director, in connection with such person's or body's
participation in discussions regarding the terms and conditions of the
minor rule violation letter or other consideration of the minor rule
violation letter, including acceptance or rejection of such minor rule
violation letter.
    Proposed Rule 10.9216(b)(2)(A)(ii) would provide that if a
Participant, Participant Firm or covered person submits an executed
minor rule violation letter, by the submission such Participant,
Participant Firm or covered person also waives any right to claim that
a person violated the ex parte prohibitions of proposed Rule 10.9143 or
the separation of functions prohibitions of proposed Rule 10.9144, in
connection with such person's or body's participation in discussions
regarding the terms and conditions of the minor rule violation letter
or other consideration of the minor rule violation letter, including
acceptance or rejection of such minor rule violation letter.\16\
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    \16\ Rule 10.9143 (Ex Parte Communications) would prohibit
certain ex parte communications. Proposed 10.9144 (Separation of
Functions) would establish separation of functions and provide for
waivers.
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    Proposed Rule 10.9216(b)(2)(B) would provide that if a minor rule
violation letter is rejected, the Participant, Participant Firm or
covered person would be bound by the waivers made under proposed
paragraphs (b)(1) and (b)(2)(A) for conduct by persons or bodies
occurring during the period beginning on the date the minor rule
violation letter was executed and submitted and ending upon the
rejection of the minor rule violation letter.
    Proposed Rule 10.9216(b)(3) would provide that if the Participant,
Participant Firm or covered person executes the minor rule violation
letter, it would be submitted to the CRO. The CRO, on behalf of the SRO
Board, may accept or reject such letter.
    Proposed Rule 10.9216(b)(4) would provide that if the letter is
accepted by the CRO, it would be deemed final and that any fine imposed
pursuant to the proposed Rule and not contested would not be publicly
reported, except as may be required by Rule 19d-61 under the Act, and
as may be required by any other regulatory authority.
    Proposed Rule 10.9216(b)(4) would further provide that if the
letter is rejected by the CRO, the Exchange may take any other
appropriate disciplinary action with respect to the alleged violation
or violations. Subsection (b)(4) would also provide that if the letter
is rejected, the Participant, Participant Firm or covered person would
not be prejudiced by the execution of the minor rule violation letter
under proposed paragraph (b)(1) and that the letter may not be
introduced into evidence in connection with the determination of the
issues set forth in any complaint or in any other proceeding.
    As noted above, proposed Rule 10.9216(b) is substantially the same
as NYSE Arca Rule 10.9216(b).
Proposed Rule 10.9217
    The Exchange also proposes to adopt Rule 10.9217 based on NYSE Arca
Rule 10.9217, which would be titled ``Violations Appropriate for
Disposition Under Rule 10.9216(b)''.
    Proposed Rule 10.9217(a) would provide that any Participant,
Participant Firm or covered person may be subject to a fine, not to
exceed $5,000,\17\ under Rule 10.9216(b) with respect to any rules
listed below and that the fine amounts and fine levels set forth below
would apply to the fines imposed.
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    \17\ See note 8, supra.
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    Proposed Rule 10.9217(b) would provide that Regulatory Staff
designated by the Exchange would have the authority to impose a fine
pursuant to the proposed Rule.
    Proposed Rule 10.9217(c) would provide that any person or
organization found in violation of a minor rule would not be required
to report such violation on SEC Form BD or Form U-4 if the sanction
imposed consists of a fine not exceeding $2,500 and the sanctioned
person or organization has not sought an adjudication, including a
hearing, or otherwise exhausted the administrative remedies available
with respect to the matter. Subsection (c) would further provide that
any fine imposed in excess of $2,500 would be subject to current rather
than quarterly reporting to the Commission pursuant to Rule 19d-1 under
the Act.
    Proposed Rule 10.9217(d) would provide that nothing in the proposed
Rule would require the Exchange to impose a fine for a violation of any
rule under this Minor Rule Plan and that if the Exchange determines
that any violation is not minor in nature, the

Exchange may, at its discretion, proceed under the proposed Rule
10.9000 Series rather than under proposed Rule 10.9217.
    The next section would be titled ``List of Rule Violations and
Fines Applicable Thereto'' and would provide that any Participant,
Participant Firm or covered person may be subject to a fine under
proposed Rule 10.9216(b) with respect to any rules listed below.
    Proposed Rule 10.9217(e) would be titled ``Exchange Rules and
Policies subject to a Minor Rule Violation'' and would set forth the
list of rules under which a Participant, Participant Firm or covered
person may be subject to a fine under a minor rule violation letter as
described in proposed Rule 10.9216(b). The Exchange would retain the
list of rules currently set forth in Article 12, Rule 8(h) under the
existing headings for ``Reporting and Record Retention Violations'' and
``Minor Trading Rule Violations'' with the following additions and
changes.
    First, the Exchange would add subsection (b) of Article 6, Rule 2
(Registration and Approval of Participant Personnel) to proposed Rule
10.9217(e)(13).
    Article 6, Rule 2 currently sets forth certain employee
registration, approval and other exchange requirements. Specifically,
Article 6, Rule 2(a) governs registration of representatives, as
defined in Article 6, Rule 14(b)(1), with the Exchange and is currently
eligible for a minor rule fine under Article 12, Rule 8(h). Article 6,
Rule 2(b) provides for the registration of principals, as defined in
Article 6, Rule 14(a)(1). The Exchange proposes that the registration
requirements of principals set forth in Article 6, Rule 2(b) be
eligible for a minor rule fine. The proposed change would be consistent
with the practice on the Exchange's affiliates whose comparable rule
requiring the registration of principals is eligible for a minor rule
fine.\18\
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    \18\ See, e.g., NYSE National Rules 2.2(c) (Obligations of ETP
Holders and the Exchange) and 10.9217(f). The entirety of NYSE
National Rule 2.2 is eligible for minor rule treatment; registration
of principals under NYSE Nationals' rules is governed by subsection
(c).
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    Second, the Exchange would add subsections (a) and (b) of Article
6, Rule 5 (Supervision of Representatives and Branch and Resident
Offices) to proposed Rule 10.9217(e)(14). As discussed below, the
Exchange's current minor rule incorrectly references Article 6, Rule
5(b) for violations relating to written supervisory procedures. The
correct reference should be to Article 6, Rule 5(c), which the Exchange
proposes to retain as proposed Rule 10.9217(e)(15).
    Article 6, Rule 5(a) (Adherence to Law) provides that no
Participant shall engage in conduct in violation of the Act, as
amended, rules or regulations thereunder, the Bylaws or the Rules of
the Exchange, or any written interpretation thereof and that every
Participant is responsible for reasonably supervising its associated
persons to prevent such violations. The requirement to reasonably
supervise individuals to ensure compliance with applicable laws, rules
and regulations, is currently eligible for minor rule fines in the
rules of the Exchange's affiliate NYSE Arca.\19\
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    \19\ See NYSE Arca Rule 11.18(a) (Supervision) and
10.9217(g)(8).
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    Article 6, Rule 5(b) (Designation of persons with supervisory
authority) provides that each Participant Firm must designate a
principal executive officer, general partner or managing partner to
hold overall authority and responsibility for the firm's internal
supervision and compliance with securities laws and regulations. This
designated supervisor may formally delegate his or her supervisory
duties and authority to other persons within the firm. The Rule further
provides that Participants must maintain, for a period of not less than
six years (the first two years in an easily accessible place), records
of the names of all persons who are designated as supervisory personnel
and the dates for which those designations are effective. In the
absence of such designation by a Participant Firm, the Firm's General
Partner(s), President, Chief Executive Officer or other principal
executive officer shall be deemed to be responsible for a Firm's
internal supervision and compliance function. In addition, each
Participant Firm shall designate and specifically identify to the
Exchange on Schedule A of Form BD one or more principals to serve as a
Chief Compliance Officer. The requirement in Article 6, Rule 5(b) to
designate and specifically identify persons with supervisory
responsibility is currently eligible for minor rule fines in the rules
of the Exchange's affiliate NYSE Arca.\20\ The Exchange accordingly
proposes to permit minor rule fines for violations of Article 6, Rule
5(b).
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    \20\ See NYSE Arca Rule 11.18(b)(2) & (4) (Supervision) and
10.9217(g)(8).
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    As noted, Article 12, Rule 8(h)(1)(N) of the Exchange's current
minor rule plan makes failure to establish, maintain and enforce
written supervisory procedures under Article 6, Rule 5(b) eligible for
a minor rule fine. However, as described above Article 6, Rule 5(b)
relates to the designation of persons with supervisory authority and
not written supervisory procedures, which is governed by Article 6,
Rule 5(c). In 2011, Article 12, Rule 8 was amended to include, among
other things, new reporting and recordkeeping provisions, which
included ``written supervisory procedures (Article 6, Rule 5(b)).''
\21\ At the time, Article 6, Rule 5(b) was titled ``Written supervisory
procedures'' and contained the text of current subsection (c). In 2013,
the Exchange filed to amend Article 6, Rule 5. As part of that filing,
subsection (a), which was titled ``Designation of persons with
supervisory authority,'' became new subsection (b), and old subsection
(b), which was titled ``Written supervisory procedures,'' became
current subsection (c).\22\ The Exchange did not, however, update
Article 12, Rule 8 to reflect that Article 6, Rule 5(b) had become
Article 6, Rule 5(c). The Exchange proposes to make that correction in
the text of proposed Rule 10.9217(e)(15). The Exchange notes that the
requirement to establish, maintain and enforce written procedures is
also currently eligible for minor rule fines in the rules of the
Exchange's affiliate NYSE Arca.\23\
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    \21\ See Securities Exchange Act Release No. 64370 (April 29,
2011), 76 FR 25727, 25727 (May 5, 2011) (SR-CHX-2011-07) (Notice);
Securities Exchange Act Release 64686 (June 16, 2011), 76 FR 36596
(June 22, 2011) (SR-CHX-2011-07) (Order). See generally note 7,
supra.
    \22\ See Securities Exchange Act Release No. 70597 (October 2,
2013), 78 FR 62728, 62732 (October 22, 2013) (SR-CHX-2013-14)
(Notice of Filing and Immediate Effectiveness of Proposed Rule
Change).
    \23\ See NYSE Arca Rule 11.18(c) (Supervision) and
10.9217(g)(8).
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    Finally, the Exchange proposes a new subsection (f) titled
``Recommended Fine Schedule'' that would reproduce the current
Recommended Fine Schedule from the Fee Schedule with the following
changes and corrections. The Recommended Fine Schedule in the Fee
Schedule would be deleted:
     The Exchange would add a new sub-heading titled
``Reporting and Record Retention Violations'' \24\ that would set forth
the corresponding fines for first, second and third and subsequent
violations for the rules set forth under the heading ``Reporting and
Record Retention Violations'' in proposed Rule 10.9217(e).
---------------------------------------------------------------------------

    \24\ Immediately before the new sub-heading, the Exchange would
include the following text based on NYSE Arca Rule 10.9217: ``These
fines are intended to apply to minor violations. For more serious
violations, other disciplinary action may be sought.''
---------------------------------------------------------------------------

     The first 12 entries as well as entries 16 through 23
would be reproduced without change from the

current Recommended Fine Schedule in the Fee Schedule.
     Item 13 would be ``Registration and Approval of
Participant Personnel (Article 6, Rule 2(a) & (b))''. The proposed
first, second and third level fines for violations of Article 6, Rule
2(b) of $250 for the first violation, $750 for the second violation and
$1,500 for the third and subsequent violations would be the same as
those in the Exchange's current Recommended Fine Schedule in the Fee
Schedule for violations of Article 6, Rule 2(a).
     Items 14 and 15--``Failure to Comply with Supervision
Requirements (Article 6, Rule 5(a) & (b))'' and ``Written Supervisory
Procedures (Article 6, Rule 5(c)),'' respectively--would be added to
proposed Rule 10.9271(f) consistent with the changes to proposed Rule
10.9217(e)(14) and (15) described above. The proposed first, second and
third level fines for violations of Article 6, Rule 5(a) and (b) in
proposed Rule 10.9217(e)(14) and Article 6, Rule 5(c) in proposed Rule
10.9217(e)(15) would be $500 for the first violation, $1,000 for the
second violation and $2,500 for the third and subsequent violations.
These fine levels would be the same as the current fines in the
Recommended Fine Schedule in the Fee Schedule for violations of Article
6, Rule 5(b).
     Finally, item 24 would be ``Consolidated Audit Compliance
Rule (Rule 6.6800 Series).'' The corresponding fine ``Up to $2,500.00''
would be transposed from current Article 12, Rule 8 to new footnote **
following ``Rule 6.6800 Series.'' \25\ The Exchange would also add the
current text from Article 12, Rule 8(a) providing that ``For failures
to comply with the Consolidated Audit Trail Compliance Rule
requirements of the Rule 6.6800 Series, the Exchange may impose a minor
rule violation fine of up to $2,500. For more serious violations, other
disciplinary action may be sought'' to new footnote **.
---------------------------------------------------------------------------

    \25\ In 2020, the Exchange added the Consolidated Audit Trail
(``CAT'') industry member compliance rules to the list of minor rule
violations in Article 12, Rule 8 and the corresponding fine up to
$2,500. At the time, the Exchange inadvertently did not amend the
Recommended Fine Schedule in the Fee Schedule. See Securities
Exchange Act Release No. 89410 (July 28, 2020), 85 FR 46741 (August
3, 2020) (SR-CHX-2020-21).
---------------------------------------------------------------------------

     The Exchange would add a new second sub-heading titled
``Minor Trading Rule Violations'' that would set forth the
corresponding fines for first, second and third and subsequent
violations for the 11 rules set forth under the heading ``Minor Trading
Rule Violations'' in proposed Rule 10.9217(e), with the following
changes and corrections:
    [cir] The entry for ``Failure to clear the Matching System (Article
20, Rule 7)'' and corresponding fines would not be included. This rule
was deleted from Article 12, Rule 8 8(h)(2)(F) in 2019 as part of the
transition of trading on the Exchange to the Pillar trading platform
but the Exchange inadvertently failed to update the Recommended Fine
Schedule in the Fee Schedule.\26\
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    \26\ See Securities Exchange Act Release No. 87264 (October 9,
2019), 84 FR 55345, 55349 (October 16, 2019) (SR-CHX-2019-08).
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    [cir] The Exchange would include ``Short Sales (Rule 7.16)'' as
item 10. Rule 7.16 was added to Article 12, Rule 8 in 2019 as part of
the transition of trading on the Exchange to the Pillar trading
platform but the Exchange inadvertently failed to update the
Recommended Fine Schedule in the Fee Schedule.\27\ The proposed first,
second and third level fines for violations of Rule 7.16 of $500 for
the first violation, $1,000 for the second violation and $2,500 for the
third and subsequent violations are the same as those in NYSE Arca Rule
10.9217(i)(1)1. for violations of NYSE Arca Rule 7.16-E.\28\
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    \27\ See id.
    \28\ See NYSE Arca Rule 7.16-E (Short Sales) & 10.9217(i)(1)1.
---------------------------------------------------------------------------

    [cir] Finally, the Exchange would include ``Failure to comply with
Authorized Trader requirements (Rule 7.30)'' as item 11. Rule 7.30 was
also added to Article 12, Rule 8 as part of the transition to Pillar in
2019 but the Exchange inadvertently failed to update the Recommended
Fine Schedule in the Fee Schedule.\29\ The proposed first, second and
third level fines for violations of Rule 7.30 of $1,000 for the first
violation, $2,500 for the second violation and $3,500 for the third and
subsequent violations are the same as those in NYSE Arca Rule
10.9217(i)(1)5. for violations of NYSE Arca Rule 7.30-E.\30\
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    \29\ See Securities Exchange Act Release No. 87264 (October 9,
2019), 84 FR 55345, 55349 (October 16, 2019) (SR-CHX-2019-08).
    \30\ See NYSE Arca Rule 7.30-E (Authorized Traders) &
10.9217(i)(1)5.
---------------------------------------------------------------------------

    As noted, proposed subsection (a) of proposed Rule 10.9217 is
substantially the same as NYSE Arca Rule 10.9217(a) except for changes
reflecting the Exchange's membership. The Exchange proposes that a fine
thereunder would not exceed $5,000 (the amount reflected in current
Article 12, Rule 8).\31\
---------------------------------------------------------------------------

    \31\ See note 8, supra.
---------------------------------------------------------------------------

    Proposed subsections (b), (c) and (d) are also substantially the
same as NYSE Arca Rule 10.9217(b), (c) and (d) with the only changes
reflecting the Exchange's membership.
    Unlike current Article 12, Rule 8(e) described above, proposed Rule
10.9216(b) and Rule 10.9217 would not permit a Respondent to contest a
minor rule violation letter. Rather, as proposed, if the Respondent
rejects the minor rule violation letter, then a complaint must be filed
under proposed Rule 10.9211, and the minor rule violation letter may
not be introduced into evidence.\32\ The Exchange believes the proposed
rule is appropriate because it will harmonize the Exchange's minor rule
violation process with its affiliates' rules.
---------------------------------------------------------------------------

    \32\ See proposed Rule 10.9216(b)(4).
---------------------------------------------------------------------------

2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the
Act,\33\ in general, and furthers the objectives of Section 6(b)(5) of
the Act,\34\ in particular, 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.
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78f(b).
    \34\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Minor rule fines provide a meaningful sanction for minor or
technical violations of rules. The Exchange believes that the proposed
rule change will strengthen the Exchange's ability to carry out its
oversight and enforcement responsibilities in cases where full
disciplinary proceedings are unwarranted in view of the minor nature of
the particular violation. Specifically, the proposed rule change is
designed to prevent fraudulent and manipulative acts and practices
because it will provide the Exchange the ability to issue a minor rule
fine for violations of its rules governing reporting, record retention
and trading in situations where either a cautionary action letter or a
more formal disciplinary action may not be warranted or appropriate.
    As noted, the Exchange would retain its list of minor rule
violations with certain technical and conforming amendments, while
adopting its affiliates' process for imposing minor rule violation
fines.\35\ In addition, as set forth in the Exchange's companion filing
and herein, the Exchange believes that adding certain rules to its list
of eligible minor rule violations based on

the rules of its affiliate will strengthen the Exchange's ability to
carry out its oversight and enforcement responsibilities in cases where
full disciplinary proceedings are unwarranted in view of the minor
nature of the particular violation.
---------------------------------------------------------------------------

    \35\ See NYSE Arca Rule 10.9216(b), NYSE Rule 9216(b), & NYSE
American Rule 9216(b). See also generally FINRA Rule 9216(b).
---------------------------------------------------------------------------

    Specifically, the proposed additions are designed to prevent
fraudulent and manipulative acts and practices because it will provide
the Exchange the ability to issue a minor rule fine for violations of
its rules governing general registration and supervision requirements
in situations where a more formal disciplinary action may not be
warranted or appropriate. As provided for in proposed Rule 10.9217(d),
nothing in proposed Rule 10.9217 would require the Exchange to impose a
minor rule fine for a violation of any eligible rule and that if the
Exchange determines that any violation is not minor in nature, the
Exchange may, at its discretion, proceed with formal disciplinary
action rather than under proposed Rule 10.9217.
    The Exchange also believes that adding rules based on the rules of
its affiliate to its list of eligible minor rule violations would
promote fairness and consistency in the marketplace by permitting the
Exchange to issue a minor rule fine for violations of substantially
similar rules that are eligible for minor rule treatment on the
Exchange's affiliate, thereby harmonizing minor rule plan fines across
affiliated exchanges for the same conduct. As noted above, Article 6,
Rule 2(b), 5(a) and 5(b) are substantially similar to NYSE National and
NYSE Arca rules of similar purpose, which are each separately eligible
for a minor rule fine under the respective market's version of proposed
Rule 10.9217.\36\
---------------------------------------------------------------------------

    \36\ See text accompanying notes 18-23, supra.
---------------------------------------------------------------------------

    Further, the Exchange believes that the proposed additions to its
list of rules eligible for minor rule fines based on the rules of its
affiliate are consistent with Section 6(b)(6) of the Act,\37\ which
provides that members and persons associated with members shall be
appropriately disciplined for violation of the provisions of the rules
of the exchange, by expulsion, suspension, limitation of activities,
functions, and operations, fine, censure, being suspended or barred
from being associated with a member, or any other fitting sanction. As
noted, the proposed rule change would provide the Exchange ability to
sanction minor or technical violations pursuant to the Exchange's rules
and would increase the amounts of fines in order for the Exchange to
better deter violative activity and to harmonize its rules with that of
its affiliates.
---------------------------------------------------------------------------

    \37\ 15 U.S.C. 78f(b)(6).
---------------------------------------------------------------------------

    The Exchange believes that moving the Recommended Fine Schedule for
minor rule violations from the Fee Schedule to proposed Rule 10.9217
and removing it from the Fee Schedule would add clarity and
transparency to the Exchange's rules by reflecting the recommended
fines for minor rule violations in the same place in the Exchange's
rules. Similarly, updating the Recommended Fine Schedule to delete
obsolete rules and add recommended fines for rules that were added to
the list of minor rules but inadvertently omitted from the Recommended
Fine Schedule would also add clarity and transparency to the Exchange's
rules. The Exchange believes that adding such clarifying language would
also be consistent with the public interest and the protection of
investors because investors will not be harmed and in fact would
benefit from increased transparency, thereby reducing potential
confusion.
    Further, the Exchange believes that adding recommended fines for
Rule 7.16 and Rule 7.30 that were inadvertently omitted from the
current Recommended Fine Schedule based on the fines for the same rules
set forth in the rules of its affiliate would promote fairness and
consistency in the marketplace by permitting the Exchange to issue a
minor rule fine for violations of substantially similar rules that are
eligible for minor rule treatment on the Exchange's affiliate, thereby
harmonizing minor rule plan fines across affiliated exchanges for the
same conduct. As noted above, the proposed first, second and third
level fines for violations of Rule 7.16 are the same as those in NYSE
Arca Rule 10.9217(i)(1)1. for violations of NYSE Arca Rule 7.16-E, and
the proposed first, second and third level fines for violations of Rule
7.30 are the same as those in NYSE Arca Rule 10.9217(i)(1)5. for
violations of NYSE Arca Rule 7.30-E.\38\
---------------------------------------------------------------------------

    \38\ See notes 27-29, supra.
---------------------------------------------------------------------------

    Finally, the Exchange also believes that the proposed changes are
designed to provide a fair procedure for the disciplining of members
and persons associated with members consistent with Sections 6(b)(7)
and 6(d) of the Act.\39\ Proposed Rules 10.9216(b) and 10.9217 would
not preclude a Participant, Participant Firm or covered person from
rejecting an alleged violation and receiving a hearing on the matter
with the same procedural rights through a litigated disciplinary
proceeding.
---------------------------------------------------------------------------

    \39\ 15 U.S.C. 78f(b)(7) & 78f(d).
---------------------------------------------------------------------------

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 change is not
designed to address any competitive issue but rather to update the
Exchange's rules to strengthen the Exchange's ability to carry out its
oversight and enforcement functions and deter potential violative
conduct and to harmonize its rules with the rules of its affiliate.

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. 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-NYSECHX-2022-08 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-2022-08. 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-NYSECHX-2022-08 and should be submitted
on or before June 23, 2022.

IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change

    The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\40\ In
particular, the Commission finds that the proposed rule change is
consistent with Section 6(b)(5) of the Act,\41\ which requires that the
rules of an exchange be designed to promote just and equitable
principles of trade, to remove impediments and to perfect the mechanism
of a free and open market and a national market system, and, in
general, to protect investors and the public interest. The Commission
also believes that the proposal is consistent with Sections 6(b)(1) and
6(b)(6) of the Act \42\ which require that the rules of an exchange
enforce compliance with, and provide appropriate discipline for,
violations of Commission and Exchange rules. Finally, the Commission
finds that the proposal is consistent with the public interest, the
protection of investors, or otherwise in furtherance of the purposes of
the Act, as required by Rule 19d-1(c)(2) under the Act,\43\ which
governs minor rule violation plans.
---------------------------------------------------------------------------

    \40\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \41\ 15 U.S.C. 78f(b)(5).
    \42\ 15 U.S.C. 78f(b)(1) and 78f(b)(6).
    \43\ 17 CFR 240.19d-1(c)(2).
---------------------------------------------------------------------------

    The Commission believes that Rules 10.9216(b) and 10.9217, which
are based on the rules of an affiliate exchange, are an effective way
to discipline a member for a minor violation of a rule. The Commission
also believes that the proposed addition of certain rules to the
Exchange's list of current minor rule violations provides a reasonable
means of addressing violations that do not rise to the level of
requiring formal disciplinary proceedings, while providing greater
flexibility in handling certain violations. In addition, the Commission
believes that the Exchange's proposal to move the Recommended Fine
Schedule for minor rule violations from the Fee Schedule to proposed
Rule 10.9217 and make certain amendments and corrections are consistent
with the Act because these changes will add clarity to the Exchange's
rules.
    In approving the propose rule change, the Commission in no way
minimizes the importance of compliance with the Exchange's rules and
all other rules subject to fines under Rules 10.9216(b) and 10.9217.
The Commission believes that a violation of any self-regulatory
organization's rules, as well as Commission rules, is a serious matter.
However, Rules 10.9216(b) and 10.9217 provide a reasonable means of
addressing rule violations that may not rise to the level of requiring
formal disciplinary proceedings, while providing greater flexibility in
handling certain violations. The Commission expects that the Exchange
will continue to conduct surveillance with due diligence and make a
determination based on its findings, on a case-by-case basis, whether a
fine of more or less than the recommended amount is appropriate for a
violation under Rules 10.9216(b) and 10.9217 or whether a violation
requires formal disciplinary action.
    For the same reasons as discussed above, the Commission finds good
cause, pursuant to Section 19(b)(2) of the Act,\44\ for approving the
proposed rule change prior to the thirtieth day after the date of
publication of the notice of the filing thereof in the Federal
Register.\45\ The proposal will assist the Exchange in preventing
fraudulent and manipulative practices by allowing the Exchange to
adequately enforce compliance with, and provide appropriate discipline
for, violations of Exchange rules. Moreover, the proposed changes
raises no new or novel issues. Accordingly, the Commission believes
that a full notice-and-comment period is not necessary before approving
the proposal.
---------------------------------------------------------------------------

    \44\ 15 U.S.C. 78s(b)(2).
    \45\ As stated above, the Commission notes that the proposed
rule change was submitted in connection with an immediately
effective companion filing, SR-NYSECHX-2022-10, adopting
investigation, disciplinary, sanction and other procedural rules
modeled on the rules of the Exchange's affiliates. See supra note 4
and accompanying text. In SR-NYSECHX-2022-10, the Exchange states
that it intends to announce by Information Memorandum with at least
30 days advance notice the operative date of the rules proposed in
SR-NYSECHX-2022-10, which also includes proposed Rules 10.9216(b)
and 10.9217. Thus, proposed Rules 10.9216(b) and 10.9217 will be
operative at the same time as all the rules proposed in SR-NYSECHX-
2022-10.
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\46\ and Rule 19d-1(c)(2) thereunder,\47\ that the proposed rule change
(SR-NYSECHX-2022-08) be, and hereby is, approved on an accelerated
basis.
---------------------------------------------------------------------------

    \46\ 15 U.S.C. 78s(b)(2).
    \47\ 17 CFR 240.19d-1(c)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\48\
---------------------------------------------------------------------------

    \48\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-11789 Filed 6-1-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 37 (Friday, February 26, 2021)]
[Notices]
[Page 11785]
[FR Doc No: 2021-03977]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

[Docket No. USCG-2020-0671]

Collection of Information Under Review by Office of Management
and Budget; OMB Control Number 1625-0031

AGENCY: Coast Guard, DHS.

ACTION: Thirty-day notice requesting comments.

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

SUMMARY: In compliance with the Paperwork Reduction Act of 1995 the
U.S. Coast Guard is forwarding an Information Collection Request (ICR),
abstracted below, to the Office of Management and Budget (OMB), Office
of Information and Regulatory Affairs (OIRA), requesting an extension
of its approval for the following collection of information: 1625-0031,
Plan Approval and Records for Electrical Engineering Regulations;
without change. Our ICR describes the information we seek to collect
from the public. Review and comments by OIRA ensure we only impose
paperwork burdens commensurate with our performance of duties.

DATES: You may submit comments to the Coast Guard and OIRA on or before
March 29, 2021.

ADDRESSES: Comments to the Coast Guard should be submitted using the
Federal eRulemaking Portal at https://www.regulations.gov. Search for
docket number [USCG-2020-0671]. Written comments and recommendations to
OIRA for the proposed information collection should be sent within 30
days of publication of this notice to https://www.reginfo.gov/public/do/PRAMain. Find this particular information collection by selecting
``Currently under 30-day Review--Open for Public Comments'' or by using
the search function.
    A copy of the ICR is available through the docket on the internet
at https://www.regulations.gov. Additionally, copies are available
from: Commandant (CG-6P), ATTN: Paperwork Reduction Act Manager, U.S.
Coast Guard, 2703 Martin Luther King Jr. Ave. SE, Stop 7710,
Washington, DC 20593-7710.

FOR FURTHER INFORMATION CONTACT: A.L. Craig, Office of Privacy
Management, telephone<PHONE_NUMBER>, or fax<PHONE_NUMBER>, for questions
on these documents.

SUPPLEMENTARY INFORMATION:

Public Participation and Request for Comments

    This notice relies on the authority of the Paperwork Reduction Act
of 1995; 44 U.S.C. chapter 35, as amended. An ICR is an application to
OIRA seeking the approval, extension, or renewal of a Coast Guard
collection of information (Collection). The ICR contains information
describing the Collection's purpose, the Collection's likely burden on
the affected public, an explanation of the necessity of the Collection,
and other important information describing the Collection. There is one
ICR for each Collection. The Coast Guard invites comments on whether
this ICR should be granted based on the Collection being necessary for
the proper performance of Departmental functions. In particular, the
Coast Guard would appreciate comments addressing: (1) The practical
utility of the Collection; (2) the accuracy of the estimated burden of
the Collection; (3) ways to enhance the quality, utility, and clarity
of information subject to the Collection; and (4) ways to minimize the
burden of the Collection on respondents, including the use of automated
collection techniques or other forms of information technology. These
comments will help OIRA determine whether to approve the ICR referred
to in this Notice.
    We encourage you to respond to this request by submitting comments
and related materials. Comments to Coast Guard or OIRA must contain the
OMB Control Number of the ICR. They must also contain the docket number
of this request, [USCG-2020-0671], and must be received by March 29,
2021.

Submitting Comments

    We encourage you to submit comments through the Federal eRulemaking
Portal at https://www.regulations.gov. If your material cannot be
submitted using https://www.regulations.gov, contact the person in the
FOR FURTHER INFORMATION CONTACT section of this document for alternate
instructions. Documents mentioned in this notice, and all public
comments, are in our online docket at https://www.regulations.gov and
can be viewed by following that website's instructions. Additionally,
if you go to the online docket and sign up for email alerts, you will
be notified when comments are posted.
    We accept anonymous comments. All comments to the Coast Guard will
be posted without change to https://www.regulations.gov and will
include any personal information you have provided. For more about
privacy and submissions to the Coast Guard in response to this
document, see DHS's eRulemaking System of Records notice (85 FR 14226,
March 11, 2020). For more about privacy and submissions to OIRA in
response to this document, see the https://www.reginfo.gov, comment-
submission web page. OIRA posts its decisions on ICRs online at https://www.reginfo.gov/public/do/PRAMain after the comment period for each
ICR. An OMB Notice of Action on each ICR will become available via a
hyperlink in the OMB Control Number: 1625-0031.

Previous Request for Comments

    This request provides a 30-day comment period required by OIRA. The
Coast Guard published the 60-day notice (85 FR 81939, December 17,
2020) required by 44 U.S.C. 3506(c)(2). That notice elicited no
comments. Accordingly, no changes have been made to the Collection.

Information Collection Request

    Title: Plan Approval and Records for Electrical Engineering
Regulations--Title 46 CFR Subchapter J.
    OMB Control Number: 1625-0031.
    Summary: The information is needed to ensure compliance with our
rules on electrical engineering for the design and construction of
U.S.-flag commercial vessels.
    Need: Title 46 U.S.C. 3306 and 3703 authorize the Coast Guard to
establish rules to promote the safety of life and property in
commercial vessels. The electrical engineering rules appear at 46 CFR
subchapter J (parts 110 through 113).
    Forms: None.
    Respondents: Owners, operators, shipyards, designers, and
manufacturers of vessels.
    Frequency: On occasion.
    Hour Burden Estimate: The estimated burden has increased from 6,524
hours to 6,536 hours a year due to an estimated increase in the annual
number of responses.

    Authority: The Paperwork Reduction Act of 1995; 44 U.S.C.
chapter 35, as amended.

    Dated: February 19, 2021.
Kathleen Claffie,
Chief, Office of Privacy Management, U.S. Coast Guard.
[FR Doc. 2021-03977 Filed 2-25-21; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register: May 21, 2009 (Volume 74, Number 97)]
[Notices]
[Page 23915-23916]
[DOCID:fr21my09-138]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59919; File No. SR-BX-2009-025]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing of Proposed Rule Change To Retroactively Amend the Fee Schedule
To Clarify and Correct References to the Volume Discount Given to
Market Makers

May 14, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 8, 2009, NASDAQ OMX BX, Inc. (the ``Exchange'') filed with the
Securities and Exchange Commission (``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.
---------------------------------------------------------------------------

    \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 purpose of the proposed rule change is to amend the Fee
Schedule of the Boston Options Exchange Group, LLC (``BOX'') on a
retroactive basis to clarify and correct references relating to the
volume discount (``Volume Discount'') given to Market Makers. The text
of the proposed rule change is available from the principal office of
the Exchange, at the Commission's Public Reference Room and also on the
Exchange's Internet Web site at http://nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/.

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
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend on a retroactive basis Section 3
(Market Maker Trading Fees) of the BOX Fee Schedule.\3\ BOX applies a
Volume Discount to the fees charged to BOX Market Makers who engage in
particularly active trading volume on BOX. The proposed changes will
clarify and correct the Fee Schedule to reflect that trading volume in
options classes included within the Liquidity Make or Take Pricing
Structure (``Make or Take''), as set forth in Section 7 of the BOX Fee
Schedule, is excluded when determining a Market Maker's Volume
Discount.\4\ The text explicitly stating this was inadvertently removed
from the BOX Fee Schedule in a prior filing, SR-BSE-2007-52.\5\
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    \3\ The BOX Fee Schedule can be found on the BOX Web site at
http://www.bostonoptions.com.
    \4\ Make or Take volume is excluded when determining a Market
Maker's monthly trading volume for purposes of the Volume Discount
and is not eligible to have a Volume Discount applied to it.
    \5\ See Securities Exchange Act Release No. 56948 (December 12,
2007), 72 FR 72426 (December 20, 2007) (SR-BSE-2007-52).
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    The Exchange requests that the current proposed changes be made
effective retroactive to November 30, 2007, which is the date of filing
and effectiveness of SR-BSE-2007-52. The Exchange believes that the
proposed changes will eliminate any gap in the treatment of Make or
Take volume when calculating the Volume Discount and is consistent with
previous Commission action on similar matters pertaining to the
allocation of exchange member fees and dues.\6\ Additionally, the
Exchange

believes that the inadvertent elimination of the language in question
from the BOX Fee Schedule did not alter BOX Market Makers'
understanding that Make or Take volume was excluded from the
calculation of the Volume Discount.\7\
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    \6\ See Securities Exchange Act Release No. 55549 (March 28,
2007), 72 FR 16837 (April 5, 2007) (SR-CHX-2007-02) (Order Granting
Accelerated Approval of a Proposed Rule Change To Amend the CHX Fee
Schedule on a Retroactive Basis To Clarify the Application of a
Credit Against Specialist Fixed Fees). The approval order stated
that the rule change clarified the application of a specialist fixed
fee credit that the exchange was offering as an incentive for
specialists and would reconcile the discrepancy between the manner
in which the exchange intended to apply the credit and the
description of the credit in a prior proposal. The order also stated
that approval would clarify ambiguity about the application of the
specialist fixed fee credit. The Commission believed that
accelerated approval would provide clarity without delay. See also
Securities Exchange Act Release No. 57347 (February 19, 2008), 73 FR
10080 (February 25, 2008) (SR-NASDAQ-2007-100) (Order Approving
Proposed Rule Change to Nasdaq Rule 7033 To Modify the Fees Charged
for the Mutual Fund Quotation Service and To Correct Certain Errors
in the Rule Manual). The Commission approved a Nasdaq proposal
seeking retroactive approval for the implementation of previously
approved Mutual Fund Quotation Service (``MFQS'') fees which Nasdaq
failed to transfer from the NASD rule to the corresponding Nasdaq
rule when Nasdaq commenced operations as a national securities
exchange, more than one and one half year earlier, on August 1,
2006. The Commission stated that such approval was appropriate as it
corrected an omission in Nasdaq's rules. See also Securities
Exchange Act Release No. 56240 (August 13, 2007), 72 FR 46527
(August 20, 2007) (SR-ISE-2007-49) (Order Approving Proposed Rule
Change Relating to Fee Changes on a Retroactive Basis). The
Commission stated that application of the amendments to ISE's
Schedule of Fees on a retroactive basis, to a point in time
approximately six months prior, were appropriate and aligned revenue
collected from members with license costs charged to ISE.
    \7\ See BOX Information Circular entitled ``Amended BOX Fee
Schedule--Expansion of ``Make or Take'' and Elimination of Minimum
Activity Charger (MAC)'' that was distributed to Participants on
November 28, 2007 which stated that the establishment of the Make or
Take Credit set forth in the then proposed rule filing SR-BSE-2007-
52 would not impact Volume Discounts. Specifically, the BOX
Information Circular stated: ``Current discounts based upon average
daily volumes (ADV) of over 25,000 and 50,000 contracts will be
maintained.''
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\8\ in general, and Section
6(b)(4) of the Act,\9\ in particular, in that it is designed to provide
for the equitable allocation of reasonable dues, fees, and other
charges among its members and issuers and other persons using its
facilities. The proposed changes will result in clarification of the
fees charged for trading activity on BOX. The Exchange believes that
retroactive approval of the proposed rule change will clarify the BOX
Fee Schedule and eliminate any concern of inequitable allocation of
fees as between the Market Makers and other Options Participants during
the retroactive period.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
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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
result in any burden on competition that is 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

    The Exchange has neither solicited nor received comments on the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    A. By order approve such proposed rule change, or
    B. Institute proceedings to determine whether the proposed rule
change should be 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 (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-BX-2009-025 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-BX-2009-025. This file
number should be included on the subject line if e-mail 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 Web site (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 inspection and
copying in the Commission's Public Reference Room, 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. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-BX-
2009-025 and should be submitted on or before June 11, 2009.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-11810 Filed 5-20-09; 8:45 am]

BILLING CODE 8010-01-P