[Federal Register Volume 79, Number 96 (Monday, May 19, 2014)]
[Notices]
[Pages 28794-28796]
[FR Doc No: 2014-11439]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72159; File No. SR-NYSEARCA-2014-54]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Deleting NYSE Arca
Equities Rule 9.1(b) To Harmonize NYSE Arca's Rules With the Rules of
Other Self-Regulatory Organizations Concerning Office Space Sharing

May 13, 2014.
    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 May 1, 2014, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') 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.
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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 delete NYSE Arca Equities Rule 9.1(b) to
harmonize NYSE Arca's rules with the rules of other self-regulatory
organizations (``SROs'') concerning office space sharing. The text of
the proposed rule change is available on the Exchange's Web site 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 delete NYSE Arca Equities Rule 9.1(b) to
harmonize NYSE Arca's rules with the rules of other SROs concerning
office space sharing.
Background
    On July 30, 2007, the Financial Industry Regulatory Authority
Inc.'s (``FINRA'') predecessors, the National Association of Securities
Dealers, Inc. (``NASD''), and NYSE Regulation, Inc. (``NYSER''),
consolidated their member firm regulation operations into a combined
organization, FINRA. Pursuant to Rule 17d-2 under the Act, New York
Stock Exchange, LLC (``NYSE''), NYSER and FINRA entered into an
agreement (the ``Agreement'') to reduce regulatory duplication for
their members by allocating to FINRA certain regulatory
responsibilities for NYSE rules and rule interpretations (``FINRA
Incorporated NYSE Rules''). NYSE MKT LLC (``NYSE MKT'') became a party
to the Agreement effective December 15, 2008.
    As part of its effort to reduce regulatory duplication and relieve
firms that are members of FINRA, NYSE and NYSE MKT of conflicting or
unnecessary regulatory burdens, FINRA is now engaged in the process of
reviewing and amending the NASD and FINRA Incorporated NYSE Rules in
order to create a consolidated FINRA rulebook.\4\ FINRA recently
harmonized NASD and FINRA Incorporated NYSE Rules and interpretations
concerning supervision.\5\ FINRA's supervisory rule changes will become
effective on December 1, 2014.\6\
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    \4\ FINRA's rulebook currently has three sets of rules: (1) NASD
Rules, (2) FINRA Incorporated NYSE Rules, and (3) consolidated FINRA
Rules. The FINRA Incorporated NYSE Rules apply only to those members
of FINRA that are also members of the NYSE (``Dual Members''), while
the consolidated FINRA Rules apply to all FINRA members. For more
information about the FINRA rulebook consolidation process, see
FINRA Information Notice, March 12, 2008.
    \5\ See Securities Exchange Act Release No. 71179 (December 23,
2013), 78 FR 79542 (December 30, 2013) (SR-FINRA-2013-025).
    \6\ See FINRA Regulatory Notice 14-10.
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    As part of this filing, FINRA deleted Incorporated NYSE Rule 343
and its interpretation. These provisions set forth certain pre-approval
requirements for space sharing.\7\ As part of the harmonization
process, FINRA determined that a pre-approval process was no longer
necessary and instead NASD's notice filing model would be utilized.
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    \7\ NYSE Rule 343(a) provides that, unless otherwise permitted
by the NYSE, an office or foreign incorporated branch of a member or
member organization may not be occupied jointly with any other
broker or dealer, investment advisor, or other person who conducts a
securities or commodities business with the public. Certain types of
office space arrangements that were deemed permissible are described
in the rule. NYSE Rule 343(b) provides that members and member
organizations may share office space with any person who is not a
broker or dealer, an investment advisor, or who does not conduct a
securities or commodities business with the public. NYSE Rule 343(c)
also provides that, unless otherwise permitted by the NYSE, the main
office of every member organization must remain open for business on
every full business day during the trading hours on the NYSE.
Supplementary Material 343.10 provides additional guidance relating
to office space arrangements. The related NYSE Rule 343
Interpretation provides additional guidance relating to space
sharing.
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    FINRA also recently amended the Uniform Branch Office Registration
Form (``Form BR''), which is used by firms to register their branch
offices with participating SROs and states via the Central Registration
Depository.\8\ Among other things, the amendments to Form BR eliminated
Section 6, which incorporated space sharing arrangement questions
relating to NYSE Rule 343. As such, FINRA accelerated the effective
date for the deletion of Incorporated NYSE Rule 343 and the related
interpretations to April 7, 2014, to correspond to the effective date
of the revised Form BR.\9\ Thus, there are no longer any pre-approval
requirements

for FINRA members that are also members of NYSE.
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    \8\ See Securities Exchange Act Release No. 71626 (February 27,
2014), 79 FR 12547 (March 5, 2014) (SR-FINRA-2013-051).
    \9\ See FINRA Regulatory Notice 14-11.
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Proposed Rule Change
    As a result of the changes to Form BR, there is no longer a
mechanism to collect the information used for the space sharing pre-
approval process under NYSE Rule 343. As such, NYSE has eliminated NYSE
Rule 343 and its interpretations, and NYSE MKT also has eliminated NYSE
MKT Rule 343--Equities, which is substantially the same as NYSE Rule
343.\10\ To harmonize its office space sharing requirements with other
SROs, NYSE Arca similarly proposes to delete NYSE Arca Equities Rule
9.1(b), which requires prior and continuing approval of the Exchange
for certain space sharing arrangements.\11\ The Exchange notes that any
office-sharing arrangements of ETP Holders that engage in a public
business would be required to be disclosed on Form BR.
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    \10\ See Securities Exchange Act Release Nos. 71989 (April 22,
2014) (SR-NYSE-2014-21) and 71988 (April 22, 2014) (SR-NYSEMKT-2014-
34).
    \11\ NYSE Arca Equities Rule 9.1(b) provides that ETP Holders
may not occupy joint quarters with anyone other than another ETP
Holder without the prior and continuing approval of the Exchange.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\12\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\13\ in particular, because it
is designed to promote just and equitable principles of trade and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system. Specifically, the Exchange
believes that the proposed rule change supports the objectives of the
Act by providing greater harmonization between NYSE Arca rules and
NYSE, NYSE MKT, and FINRA rules of similar purpose, resulting in less
burdensome and more efficient regulatory compliance. In particular,
deleting NYSE Arca Rule 9.1(b) would promote just and equitable
principles of trade by harmonizing the Exchange's rules with the rules
of the NYSE, NYSE MKT, and FINRA and with Form BR, which is used by the
Securities and Exchange Commission (``Commission''), SROs, and states.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not intended to address competitive issues but rather to achieve
greater consistency between NYSE Arca's rules concerning office space
sharing with other SROs.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the
proposed rule change.

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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    \14\ 15 U.S.C. 78s(b)(3)(A)(iii). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the 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.
    \15\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\17\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative upon filing. The Commission believes that waiving
the 30-day operative delay is consistent with the protection of
investors and the public interest, as it will harmonize the Exchange's
rules with the rules of the NYSE, NYSE MKT, and FINRA and with Form BR,
thus helping to eliminate confusion regarding broker reporting
obligations.\18\ Therefore, the Commission designates the proposed rule
change to be operative upon filing.
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    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-4(f)(6)(iii).
    \18\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule'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) \19\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \19\ 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_ADDRESS>Please include
File Number SR-NYSEARCA-2014-54 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-NYSEARCA-2014-54. 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 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 Web site 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 will also be available
for inspection and copying at the NYSE's principal office and on its
Internet Web site at www.nyse.com. 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-NYSEARCA-2014-54 and should be submitted on or before
June 9, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-11439 Filed 5-16-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 52 (Friday, March 16, 2012)]
[Notices]
[Page 15750]
[FR Doc No: 2012-6431]

=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

[ER-FRL-9002-1]

Environmental Impacts Statements; Notice of Availability

    Responsible Agency: Office of Federal Activities, General
Information<PHONE_NUMBER> or http://www.epa.gov/compliance/nepa/.

Weekly receipt of Environmental Impact Statements Filed 03/05/2012
through 03/09/2012 pursuant to 40 CFR 1506.9.

Notice

    Section 309(a) of the Clean Air Act requires that EPA make public
its comments on EISs issued by other Federal agencies. EPA's comment
letters on EISs are available at: http://www.epa.gov/compliance/nepa/eisdata.html.

EIS No. 20120062, Draft EIS, NPS, CO, Grand Ditch Breach Restoration,
To Restore the Natural Hydrological Processes, Ecological Services and
Wilderness Character of the Area in the Upper Kawuneeche Valley, Rocky
Mountain National Park, Grand County, CO, Comment Period Ends: 05/25/
2012, Contact: Ben Bobowski<PHONE_NUMBER>.
EIS No. 20120063, Final EIS, USFS, OR, Wallowa-Whitman National Forest
Travel Management Plan, Designate Roads Trails and Areas for Motor
Vehicle User, Baker, Grant, Umatilla, Union and Wallowa Counties, OR,
Review Period Ends: 04/16/2012, Contact: Cindy Christensen 541-962-
8501.
EIS No. 20120064, Final EIS, USFS, MT, Cabin Gulch Vegetation Treatment
Project, Restore Fire-Adapted Ecosystems, Existing and Desired
Conditions, Townsend Ranger District, Helena National Forest,
Broadwater County, MT, Review Period Ends: 04/16/2012, Contact: Sharon
Scott<PHONE_NUMBER>.
EIS No. 20120065, Final EIS, BLM, UT, Uinta Basin Natural Gas
Development Project, To Develop Oil and Natural Gas Resources within
the Monument Butte-Red Wash and West Tavaputs Exploration and
Developments Area, Applications for Permit of Drill and Right-of-Way
Grants, Uintah and Duchesne Counties, UT, Review Period Ends: 04/16/
2012, Contact: Stephanie Howard<PHONE_NUMBER>.
EIS No. 20120066, Draft EIS, USFWS, WA, Malheur National Wildlife
Refuge Comprehensive Conservation Plan, Implementation, Harney County,
WA, Comment Period Ends: 05/04/2012, Contact: Tim Bodeen<PHONE_NUMBER>.
EIS No. 20120067, Final EIS, BIA, NV, K Road Moapa Solar Facility,
Construction and Operation of a 350MW Solar Generation Facility,
Approval of Right-of-Way Applications, Clark County, NV, Review Period
Ends: 04/16/2012, Contact: Amy Heuslein<PHONE_NUMBER>.
EIS No. 20120068, Final EIS, USCG, 00, Programmatic--Ballast Water
Discharge Standard, Rulemaking for Standards for Living Organisms in
Ships, U.S. Waters, Review Period Ends: 04/16/2012, Contact: Greg
Kirkbride<PHONE_NUMBER>.

Amended Notices

EIS No. 20120017, Draft EIS, FHWA, NY, Tappan Zee Hudson River Crossing
Project, To Provide an Improved Hudson River Crossing between Rockland
and Westchester Counties, Funding, USACE Section 10 and 404 Permits,
Rockland and Westchester Counties, NY, Comment Period Ends: 03/30/2012,
Contact: Jonathan D. McDade<PHONE_NUMBER>; Revision to FR Notice
Published 01/27/2012; Extending Comment Period from 03/15/2012 to 3/30/
2012.

    Dated: March 13, 2012.
Aimee Hessert,
Deputy Director, NEPA Compliance Division, Office of Federal
Activities.
[FR Doc. 2012-6431 Filed 3-15-12; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 86, Number 171 (Wednesday, September 8, 2021)]
[Notices]
[Pages 50394-50400]
[FR Doc No: 2021-19295]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92845; File No. SR-NYSE-2021-48]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Delete the Order Audit Trail System Rules in the Rule 7400 Series

September 1, 2021.
    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 August 30, 2021, New York Stock Exchange LLC (``NYSE'' 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 from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 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 delete the Order Audit Trail System
(``OATS'') rules in the Rule 7400 Series as these Rules provide for the
collection of information that is duplicative of the data collection
requirements of the CAT. Further, the Financial Industry Regulatory
Authority (``FINRA'') has determined to eliminate its OATS rules. 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 these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Rule 613 of Regulation NMS requires national securities exchanges
and FINRA to create, implement, and maintain a consolidated audit trail
to capture customer and order event information for orders in NMS
Securities and OTC Equity Securities, across all markets, from the time
of order inception through routing, cancellation, modification, or
execution in a single consolidated data source. The Participants filed
the Plan to comply with Rule 613 of Regulation NMS under the Act. The
Plan was published for comment in the Federal Register on May 17,
2016,\3\ and approved by the Commission, as modified, on November 15,
2016.\4\
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    \3\ See Securities Exchange Act Release No. 77724 (April 27,
2016), 81 FR 30614 (May 17, 2016).
    \4\ See Securities Exchange Act Release No. 79318 (November 15,
2016), 81 FR 84696 (November 23, 2016) (``Order Approving the
National Market System Plan Governing the Consolidated Audit Trail)
(``Approval Order'').
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    On August 14, 2020, FINRA filed with the Commission a proposed rule
change to delete the OATS rules once Industry Members are effectively
reporting to the CAT (the ``OATS Retirement Filing'').\5\ On October
29, 2020, FINRA filed Amendment No. 1 to the proposed rule change
(``Amendment No. 1'') and a response to the comments that were
submitted on the original filing (``Response to Comments'').\6\ On
November 30, 2020, the Commission approved the proposed rule change, as
modified by Amendment No. 1, on an accelerated basis.\7\ On June 17,
2021, FINRA filed a proposed rule change setting forth the basis for
its determination that the accuracy and reliability of the CAT meet the
standards approved by the Commission in the OATS Retirement Filing for
purposes of eliminating the OATS rules.\8\ The FINRA proposal stated
that FINRA would retire OATS effective September 1, 2021.
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    \5\ See Securities Exchange Act Release No. 89679 (August 26,
2020), 85 FR 54461 (September 1, 2020) (Notice of Filing of File No.
SR-FINRA-2020-024).
    \6\ See Letter from Lisa C. Horrigan, Associate General Counsel,
FINRA, to Vanessa Countryman, Secretary, Commission, dated October
29, 2020.
    \7\ See Securities Exchange Act Release No. 90535 (November 30,
2020), 85 FR 78395 (December 4, 2020) (Notice of Filing of Amendment
No. 1 and Order Granting Accelerated Approval of SR-FINRA-2020-024).
    \8\ See Securities Exchange Act Release No. 92239 (June 23,
2021), 86 FR 34293 (June 29, 2021) (SR-FINRA-2021-017) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to the Retirement of FINRA's Order Audit Trail System).
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    After conducting an analysis of its rules in accordance with the
CAT NMS Plan, the Exchange has determined that the information
collected pursuant to the OATS rules is intended to be collected by
CAT. Further, the Exchange believes that the Rule 7400 Series will no
longer be necessary and proposes to delete such rules from the
Exchange's rulebook unless FINRA decides not to retire OATS as
scheduled in which case member organizations will still be required to
report to OATS. Discussed below is a description of the duplicative
rule requirements as well as the timeline for eliminating the
duplicative rules followed by a discussion on the OATS Retirement
Filing that formed the basis for retiring OATS.
Duplicative OATS Requirements
    The Rule 7400 Series consists of Rules 7410 through 7470 and sets
forth the recording and reporting requirements of the OATS Rules. The
OATS Rules require all Exchange member organizations and associated
persons to record in electronic form and report to FINRA, on a daily
basis, certain information with respect to orders originated, received,
transmitted, modified, canceled, or executed by members in all NMS
stocks, as that term is defined in Rule 600(b)(47) of Regulation
NMS,\9\ traded on the Exchange, including NYSE-listed securities. The
Exchange relies on the information reported to OATS either to conduct
surveillance or to facilitate surveillance conducted by FINRA pursuant
to a regulatory services agreement (``RSA''). This information is used
by Exchange and FINRA staff to conduct surveillance and investigations
of member firms for violations of Exchange and FINRA rules and federal
securities laws. The Exchange believes it is appropriate to retire OATS
because the requirements of the Rule 7400 Series are duplicative of
information available in the CAT and thus will no longer be necessary
now that the CAT is operational.
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    \9\ 17 CFR 242.600(B)(47).

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Timeline for Elimination of Duplicative Rules
    The CAT NMS Plan states that the elimination of rules that are
duplicative of the requirements of the CAT and the retirement of the
related systems should be effective at such time as CAT Data meets
minimum standards of accuracy and reliability.\10\ As discussed in more
detail in the OATS Retirement Filing, FINRA believes that OATS may be
retired effective September 1, 2021 given the error rate thresholds
have been met, and FINRA has determined that its usage of the CAT Data
has not revealed material issues that have not been corrected and
further confirmed that the CAT includes all data necessary to allow
FINRA to continue to meet its surveillance obligations.
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    \10\ Appendix C of CAT NMS Plan, Approval Order at 85010.
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OATS Retirement Filing
    In the OATS Retirement Filing, FINRA proposed to eliminate the OATS
rules once Industry Members are effectively reporting to the CAT and
the CAT's accuracy and reliability meet certain standards.
Specifically, FINRA proposed that before OATS could be retired, the CAT
generally must achieve a sustained error rate for Industry Member
reporting in five categories for a period of at least 180 days of 5% or
lower on a pre-correction basis, and 2% or lower on a post-correction
basis (measured at T+5). In addition to the maximum error rates and
matching thresholds, FINRA's use of CAT Data must confirm that (i)
there are no material issues that have not been corrected, (ii) the CAT
includes all data necessary to allow FINRA to continue to meet its
surveillance obligations, and (iii) the Plan Processor is sufficiently
meeting its obligations under the CAT NMS Plan relating to the
reporting and linkage of Phase 2a Industry Member Data.
    In the OATS Retirement Filing, FINRA explained that its review of
CAT Data and error rates would be based on data and linkages in the
initial phase of reporting (or ``Phase 2a''), which replicate the data
in OATS today and thus are most relevant for OATS retirement purposes.
Phase 2a Data includes all events and scenarios covered by OATS and
applies only to equities. FINRA did not consider options order events
or Phase 2c data and validations, which are not in OATS today, for
purposes of OATS retirement.
    As described below, FINRA has determined that the CAT meets the
accuracy and reliability standards approved by the Commission in the
OATS Retirement Filing.
(1) Maximum Error Rates
    As discussed in the OATS Retirement Filing, FINRA believes that
relevant error rates are the primary, but not the sole, metric by which
to determine the CAT's accuracy and reliability and will serve as the
baseline requirement needed before OATS can be retired. FINRA proposed
that, before OATS could be retired, the CAT would generally need to
achieve a sustained error rate for Industry Member reporting in five
categories for a period of at least 180 days of 5% or lower, measured
on a pre-correction or as-submitted basis, and 2% or lower on a post-
correction basis (measured at T+5).\11\ FINRA proposed to average the
error rates across the period, rather than require a 5% pre-correction
and 2% post-correction maximum each day for 180 consecutive days. FINRA
also proposed to measure the error rates in the aggregate, rather than
on a firm-by-firm basis. Finally, FINRA proposed to measure the error
rates separately for each of the five categories, rather than evaluate
all categories in the aggregate. As noted above, FINRA's assessment of
the error rates for Industry Member reporting is based solely on Phase
2a CAT reporting for equity events since options orders are not
included in OATS today.
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    \11\ As clarified in the OATS Retirement Filing, although FINRA
does not believe that post-correction errors need to be de minimis
before OATS can be retired, FINRA was not suggesting, with the
proposal, that 2% would meet the ultimate objective of de minimis
error rates for CAT. See CAT NMS Plan, Appendix C, note 102 (error
rates after reprocessing of error corrections are ultimately
expected to be de minimis for the CAT). See also Approval Order.
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    As discussed in the OATS Retirement Filing, FINRA measured the
error rates in each of the five categories discussed below during the
period from October 26, 2020 through April 26, 2021 (the ``applicable
period''). FINRA commenced this period on October 26, 2020, which was
the date that Industry Members were required to begin correcting all
errors for inter-firm linkages and exchange/TRF/ORF match validations.
As discussed in the Response to Comments, although the production
environment for inter-firm linkage and exchange/TRF/ORF match
validations was open for testing as of September 28, 2020, FINRA did
not believe it would be appropriate for the 180-day period to commence
prior to the October 26, 2020 compliance date.\12\
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    \12\ See FINRA's Response to Comments, supra note 7.
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    Rejection Rates and Data Validations. As described in the OATS
Retirement Filing, the Plan Processor must perform certain basic data
validations,\13\ and if a record does not pass these basic data
validations, it must be rejected and returned to the CAT Reporter to be
corrected and resubmitted. FINRA proposed that over the 180-day period,
aggregate rejection rates must be no more than 5% pre-correction or 2%
post-correction across all Industry Member Reporters. FINRA has
determined that, over the applicable period, aggregate rejection rates
across all Industry Member Reporters were 0.03% pre-correction and
0.01% post-correction.
---------------------------------------------------------------------------

    \13\ Appendix D of the CAT NMS Plan, Section 7.2, for example,
requires that certain file validations (e.g., file transmission and
receipt are in the correct formats, confirmation of a valid SRO-
Assigned Market Participant Identifier, etc.), and syntax and
context checks (e.g., format checks, data type checks, consistency
checks, etc.) be performed on all submitted records.
---------------------------------------------------------------------------

    Intra-Firm Linkages. As described in the OATS Retirement Filing,
the Plan Processor must be able to link all related order events from
all CAT Reporters involved in the lifecycle of an order. At a minimum,
this requirement includes the creation of an order lifecycle between
all order events handled within an individual CAT Reporter, including
orders routed to internal desks or departments with different functions
(e.g., an internal ATS). FINRA proposed that aggregate intra-firm
linkage rates across all Industry Member Reporters must be at least 95%
pre-correction and 98% post-correction. FINRA has determined that, over
the applicable period, aggregate intra-firm linkage rates across all
Industry Member Reporters were 99.97% pre-correction and 99.99% post-
correction.
    Inter-Firm Linkages. As described in the OATS Retirement Filing,
the Plan Processor must be able to create the lifecycle between orders
routed between broker-dealers. FINRA proposed that at least a 95% pre-
correction and 98% post-correction aggregate match rate be achieved for
orders routed between two Industry Member Reporters. FINRA has
determined that during the applicable period there was a 99.08% pre-
correction and 99.84% post-correction aggregate match rate for orders
routed between two Industry Member Reporters.
    Order Linkage Rates. As described in the OATS Retirement Filing, in
addition to creating linkages within and between broker-dealers, the
Plan Processor must be able to create lifecycles to link various pieces
of related orders. For example, the Plan requires linkages of

order information to create an order lifecycle from origination or
receipt to cancellation or execution. This category essentially
combines all of the order-related linkages to capture an overall
snapshot of order linkages in the CAT.\14\ FINRA proposed that there be
at least a 95% pre-correction and 98% post-correction rate for order
linkages that are required in Phase 2a. FINRA has determined that
during the applicable period there was a 99.66% pre-correction and
99.93% post-correction rate for order linkages required in Phase
2a.\15\
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    \14\ See FINRA's Response to Comments, supra note 7.
    \15\ FINRA noted that in Phase 2a, linkage is required between
the representative street side order and the order being represented
when the representative order was originated specifically to
represent a single order (received either from a customer or another
broker-dealer) and there is: (1) An existing direct electronic link
in the firm's system between the order being represented and the
representative order, and (2) any resulting executions are
immediately and automatically applied to the represented order in
the firm's system. As set forth in the OATS Retirement Filing, while
such linkages are not required in OATS, FINRA believes that it is
appropriate to evaluate them for purposes of retiring OATS because
they represent a significant enhancement to the data currently
available in OATS and will enhance the quality of the equity audit
trail. However, FINRA also explained in the Response to Comments
that if all other proposed criteria have been met, FINRA would not
anticipate delaying OATS retirement based on Phase 2a representative
order linkage error rates alone. In evaluating whether the standards
for OATS retirement have been met, FINRA determined that the error
rates for the Phase 2a representative order linkages did not have a
significant negative impact on the overall error rates for order
linkages. Accordingly, FINRA did not need to separately evaluate or
exclude Phase 2a representative order linkage rates in measuring the
error rates over the applicable period. For example, if the intra-
firm linkage error rate had been above 5% over the applicable
period, FINRA would have evaluated whether the error rate was the
result of unlinked representative orders to create an apples-to-
apples comparison to OATS.
---------------------------------------------------------------------------

    Exchange and TRF/ORF Match Rates. As described in the OATS
Retirement Filing, an order lifecycle must be created to link orders
routed from broker-dealers to exchanges and executed orders and trade
reports. FINRA proposed at least a 95% precorrection and 98% post-
correction aggregate match rate across all equity exchanges \16\ for
orders routed from Industry Members to an exchange and, for over-the-
counter executions, the same match rate for orders linked to trade
reports. FINRA determined that, during the applicable period, there was
a 99.51% pre-correction and 99.87% post-correction aggregate match rate
across all equity exchanges for orders routed from Industry Members to
an exchange and, for over-the-counter executions, there was a 99.34%
pre-correction and 99.53% post-correction rate for orders linked to
trade reports submitted to the FINRA Trade Reporting Facilities and OTC
Reporting Facility.
---------------------------------------------------------------------------

    \16\ See Amendment No. 1.
---------------------------------------------------------------------------

    As set forth above, the error rates for Industry Member reporting
over the applicable period were well below the maximum rates
established in the OATS Retirement Filing. FINRA also noted that the
overall post-correction error rate for Phase 2a Industry Member
reporting of 1.01% is comparable to the current overall OATS post-
correction error rate, which generally is at or slightly below 1%.
Therefore, FINRA has determined that, based on the error rates for
Industry Member reporting, the CAT Data meets the accuracy and
reliability baseline standards required for OATS retirement.
(2) FINRA's Use of CAT Data
    In the OATS Retirement Filing, FINRA stated that while error rates
are a key standardized measure in determining whether OATS retirement
is appropriate, FINRA's use of the data in the CAT also must confirm
that (i) there are no material issues that have not been corrected
(e.g., delays in the processing of data, issues with query functions,
etc.), (ii) the CAT includes all data necessary to allow FINRA to
continue to meet its surveillance obligations, and (iii) the Plan
Processor is sufficiently meeting its obligations under the CAT NMS
Plan relating to the reporting and linkage of Phase 2a Data.
    In the OATS Retirement Filing, FINRA stated that it has been
planning for OATS retirement for several years and the necessary
development work has been underway for some time. FINRA also has been
analyzing and testing production CAT Data for purposes of transitioning
its automated equity surveillance patterns since the commencement of
Phase 2a Industry Member reporting in June 2020 and through subsequent
CAT milestone releases. For example, in addition to quantitative
reviews, such as the error rate statistics discussed above, FINRA has
conducted a series of qualitative reviews of Industry Member CAT Data.
Such reviews include, among other things, comparing the count and
distribution of Industry Member event reporting through CAT versus OATS
(e.g., new order and execution events, and data elements such as buy/
sell/sell short codes), and reviewing results of examinations, alert
reviews, and investigations relating to the timeliness and accuracy of
Industry Member reporting. Based on such qualitative data reviews,
FINRA has concluded that Industry Member CAT Data, in the aggregate, is
a sufficient replacement for OATS for purposes of FINRA's surveillance
program.
    As discussed in the OATS Retirement Filing, today, FINRA's
surveillance patterns rely on the cross-market data model (``CMDM''),
which comprises linked OATS data, equity exchange data feeds from each
of the exchanges with which FINRA has entered into a RSA, and
transactions reported to FINRA's equity trade reporting facilities. The
CMDM will be retired and replaced by a newly created surveillance data
mart, the Pattern Optimized Datamart (``POD''), which incorporates both
equities and options data. At that point, FINRA's patterns will rely on
CAT Data in POD, i.e., Plan Participant and Industry Member data
reported in CAT format and linked by CAT.\17\ FINRA notes that the Plan
Participants transitioned to reporting via the CAT technical
specification as of April 26, 2021, and full Plan Participant equities
reporting and linkage validations in accordance with the CAT
specification commenced on June 1, 2021.\18\ Successful completion of
the transition to the CAT specification for Plan Participants is a
prerequisite for FINRA to retire the CMDM and leverage CAT Data and
linkages in POD for its surveillance patterns. As of the date of this
filing, FINRA has completed all planned activities on schedule,
including substantially completing the process of integrating CAT Data
into POD and successfully running large amounts of production CAT Data
for the month of May through POD.\19\ FINRA anticipates completing
additional activities before the proposed OATS retirement date,
including, e.g., planned user acceptance testing.\20\
---------------------------------------------------------------------------

    \17\ FINRA's Response to Comments noted this dependency, stating
that the process of transitioning FINRA's surveillance patterns to
CAT Data necessarily includes, among other things, ingestion of all
Industry Member and Plan Participant data and linkages in CAT
format. See Response to Comments, supra note 7, at 4. The Response
to Comments further noted that the Plan Participants would be
reporting to CAT via another mechanism until April 2021.
    \18\ For example, according to the CAT Reporting Technical
Specification for Plan Participants (version 4.0.0-r4 dated April
20, 2021), additional linkage error feedback for off-exchange trade
reports was effective as of June 1, 2021. The Technical
Specifications can be found on the CAT NMS Plan website at
www.catnmsplan.com/sites/default/files/2021-04/04.20.2021-CAT-ReportingTechnical-Specifications-for-Participants-4.0.0-r4.pdf.
    \19\ FINRA notes that additional POD releases are scheduled;
however, these releases introduce minor enhancements to POD, as
opposed to significant changes that would impact the way data is
ingested or processed in POD.
    \20\ FINRA notes that user acceptance testing is the final stage
of any software development life cycle and enables actual users to
test the system to confirm that it is able to carry out the required
tasks it was designed to address in real-world situations.

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

    As discussed in the OATS Retirement Filing, FINRA has performed
broad analysis of its equity surveillance patterns and has determined
that all of the data required to support the transition is available in
CAT. By mapping OATS data to Industry Member CAT Data in POD, FINRA has
confirmed that CAT Data has equivalent analogs to all data elements in
OATS. In that regard, FINRA notes that, as a Plan Participant, FINRA
has been involved in CAT development efforts to ensure that the scope
and features of Industry Member data and processed output are
sufficient for FINRA's surveillance program. These efforts include, for
example, developing and updating the Industry Member Technical
Specifications and Reporting Scenarios, conducting OATS-CAT gap
analyses and validating that all such gaps have been properly
addressed, and performing OATS-to-CAT field-level mappings.
    With respect to Plan Participant data, FINRA notes in the OATS
Retirement Filing that the test environment for Plan Participant
reporting in accordance with the CAT specification opened on February
15, 2021.\21\ Plan Participant equity reporting in accordance with the
CAT specification in the test environment had a very high compliance
rate for data ingestion and validation, and compliance in the
production environment is comparable. In addition, starting on April
26, 2021, CAT began linking copies of Industry Member and Plan
Participant data reported via the CAT specification in a test
environment, and at that point, FINRA began its evaluation of the
quality of these linkages. Based on this review and evaluation, in the
OATS Retirement Filing, FINRA stated that it believes that the linkages
between Plan Participant data and Industry Member data in CAT are
comparable to the linkages between RSA exchange data and OATS data in
the CMDM today.\22\ FINRA CAT and the Plan Participants have now met
the necessary criteria for a full cutover from the RSA specification to
the CAT specification, including, e.g., achieving comparable data
ingestion validation and inter-venue linkage rates (within a variance
of under one percent) between RSA and CAT specification submissions.
Accordingly, the Operating Committee approved the cutover from the RSA
specification to the CAT specification as the official source of Plan
Participant data as of June 1, 2021, and today, all Industry Member and
Plan Participant equities data reported via the CAT specification is
linked in the CAT production environment.
---------------------------------------------------------------------------

    \21\ See, e.g., CAT Q1 2021 Quarterly Progress Report dated
April 30, 2021, available at www.catnmsplan.com/sites/default/files/2021-05/CAT-Q1-2021-QPR.pdf.
    \22\ FINRA notes that the CAT uses the same code in both the
test and production environments. Thus, FINRA believes that linkages
in the test environment are reliable indicators of linkages in the
production environment.
---------------------------------------------------------------------------

    As discussed in the OATS Retirement Filing, FINRA continues to
evaluate CAT Data quality, and in particular, linkages between Industry
Member and Plan Participant data, and to test its surveillance patterns
to run on CAT Data in POD. In that regard, FINRA notes that it has
followed established and time-tested processes and protocols throughout
the development process to ensure that its patterns will perform as
expected and produce the necessary output using CAT Data following the
retirement of OATS. For example, FINRA's Software Development Lifecycle
(``SDLC'') procedures govern systems design, changes, testing and
controls. The SDLC procedures are an essential component of FINRA's
operations and have been developed to serve FINRA's unique regulatory
needs and structure. Additionally, consistent with SEC Regulation SCI,
FINRA procedures include a plan of coordination and communication with
regulatory staff. By relying on these established processes and
protocols, FINRA has confidence that the CAT Data and linkages are
reliable and sufficient to run FINRA's surveillance patterns.
    Based on these results, as well as the results of its quantitative
and qualitative reviews of CAT Data and successful efforts integrating
CAT Data into POD, in the OATS Retirement Filing, FINRA stated that it
believes that the complete portfolio of equity surveillance patterns
will be capable of consuming CAT Data and achieving comparable (or
better) output results.
    Thus, FINRA proposes to retire OATS in accordance with the schedule
set forth herein. FINRA will run its surveillance patterns for review
periods through the end of the second quarter of 2021 using OATS data
and begin using--and be fully reliant on--CAT Data for its surveillance
patterns for review periods beginning in the third quarter of 2021.
Following the retirement of OATS, FINRA expects to maintain the current
established cadence of its monthly, quarterly and semi-annual
surveillance patterns. In addition, FINRA's analytics platforms will
have access to CAT Data as soon as such data is made available to
regulators. Thus, outside of regularly scheduled surveillance pattern
runs, FINRA can perform expedited analytics, as required by market
events.
    As discussed in the OATS Retirement Filing, FINRA is finalizing the
development and certification of its surveillance patterns to run on
CAT Data on a rolling basis and, in accordance with its existing SDLC
procedures, will run a month's worth of data and compare the output
before certifying each pattern. For those equity patterns that will be
subject to certification after OATS retirement, FINRA anticipates that
there would be sufficient time to identify and remediate any issues
prior to running the patterns in accordance with the current
established cadence. FINRA does not anticipate significant issues
arising from additional scheduled POD releases or in the final stages
of its pattern development and certification efforts.
    As discussed in the OATS Retirement Filing, on an ongoing basis
following the retirement of OATS, FINRA will conduct regular reviews to
ensure confidence in the completeness and accuracy of Industry Member
reporting, along with the ability to remediate any issues in a timely
manner. Among other things, FINRA has a robust mechanism for detecting
data issues, determining which issues are material for purposes of its
surveillance program, and requesting resubmission and/or reprocessing
of data, as necessary. FINRA also (1) performs a suite of data quality
checks against data sourced from CAT to POD and against data processed
by POD for use in surveillance patterns; (2) oversees a robust
surveillance and examination compliance program that evaluates Industry
Member reporting timeliness, data quality, and other issues and trends;
(3) reviews CAT compliance program alerts using a rapid remediation
process and formal reviews, as necessary; and (4) reviews Industry
Member self-reporting and error correction trends. FINRA believes that
these practices are sufficient for identification and timely resolution
of Industry Member reporting and data issues after OATS has been
retired.
    Specifically, with regard to the additional standards approved in
the OATS Retirement Filing, through its use of CAT Data to date, as
described above, FINRA believes that these standards have been
satisfied. With respect to the first factor, FINRA does not believe
that there are any material issues that have not been corrected (or
could not be corrected in the course of operation of CAT, as approved
by the Operating

Committee) \23\ that would impact FINRA's ability to incorporate and
use CAT Data in FINRA's surveillance program. For example, the Plan
requires that raw unprocessed data that has been ingested by the Plan
Processor must be available to Participant regulatory staff and the SEC
prior to 12:00 p.m. Eastern Time on T+1, and access to all iterations
of processed data must be available to Participant regulatory staff and
the SEC between 12:00 p.m. Eastern Time on T+1 and T+5.\24\ The Plan
Processor also must ensure that regulators have access to corrected and
linked order data by 8:00 a.m. Eastern Time on T+5.\25\ Additionally,
after ingestion by the Central Repository, the raw unprocessed data
must be transformed into a format appropriate for data querying and
regulatory output.\26\ The user-defined direct queries and bulk
extracts must provide authorized users with the ability to retrieve CAT
Data via a query tool or language that allows users to query all
available attributes and data sources.\27\ FINRA's use of the CAT Data
has not uncovered any processing delays or other material issues
impacting the availability of, and FINRA's access to, the data.
---------------------------------------------------------------------------

    \23\ FINRA notes that FINRA CAT tracks known issues relating to
Industry Member and Plan Participant reporting. See, e.g.,
catnmsplan.com/CAT-Transaction-Known-Issues-List. FINRA regularly
reviews and analyzes FINRA CAT's list of current and resolved issues
and does not believe that any of these issues would impact its
ability to incorporate and use CAT Data in its surveillance program.
    \24\ See CAT NMS Plan, Appendix D, Section 6.2.
    \25\ See CAT NMS Plan, Appendix C, Section A.2(a).
    \26\ See CAT NMS Plan, Appendix C, Section A.1(b).
    \27\ See CAT NMS Plan, Section 6.10(c).
---------------------------------------------------------------------------

    With respect to the second factor, FINRA stated in the OATS
Retirement Filing that it believes that the CAT includes all data
necessary for FINRA to meet its surveillance obligations after the
retirement of OATS. FINRA must ensure that the CAT, as the single
source of order and trade data, can enable FINRA to conduct accurate
and effective market surveillance in accordance with its regulatory
obligations.\28\ As noted above, Phase 2a Data includes all events and
scenarios covered by OATS and is the most relevant for OATS retirement
purposes. FINRA Rule 7440 describes the OATS requirements for recording
information, which includes information related to the receipt or
origination of orders, order transmittal, and order modifications,
cancellations and executions. Large Industry Members and Small Industry
Members that currently are reporting to OATS were required to submit
data to the CAT for these same events and scenarios commencing in Phase
2a. FINRA's testing, analysis and use of the CAT Data (including
integration into POD), as described above, has confirmed that the CAT
includes all data necessary for FINRA to meet its surveillance
obligations and that CAT is a reliable substitute for OATS. In
addition, based on its qualitative data reviews, FINRA has concluded
that Industry Member CAT Data, in the aggregate, is a sufficient
replacement for OATS for purposes of FINRA's surveillance program.
---------------------------------------------------------------------------

    \28\ As discussed in the OATS Retirement Filing, OATS was
originally proposed to fulfill one of the undertakings contained in
an order issued by the Commission relating to the settlement of an
enforcement action against FINRA (f/k/a National Association of
Securities Dealers, Inc. (``NASD'')) for failure to adequately
enforce its rules. See Securities Exchange Act Release No. 39729
(March 6, 1998), 63 FR 12559 (March 13, 1998) (Order Approving File
No SR-NASD-97- 56) (``OATS Approval Order''); see also Securities
Exchange Act Release No. 37538 (August 8, 1996); Administrative
Proceeding File No. 3-9056 (``SEC Order''). In the OATS Approval
Order, the Commission concluded that OATS satisfied the conditions
of the SEC Order and was consistent with the Exchange Act. See 63 FR
12559, 12566-67. FINRA believes that it will continue to be in
compliance with the requirements of the SEC Order once the OATS
Rules are deleted.
---------------------------------------------------------------------------

    With respect to the third factor, FINRA stated in the OATS
Retirement Filing that it believes that the Plan Processor is
sufficiently meeting its obligations under the CAT NMS Plan relating to
the reporting and linkage of Phase 2a Data. As detailed in the
Implementation Plan and Quarterly Progress Reports submitted by the
Plan Participants, the Plan Processor has met its targeted completion
dates for the milestones for Phase 2a, including, for example,
production Go-Live for Equities 2a file submission and data integrity
validation (Large Industry Members and Small OATS Reporters) on June
22, 2020; Production Go-Live for Equities 2a Intrafirm Linkage
validations on July 27, 2020; and production go-live for firm-to-firm
linkage validations for equities (Large Industry Members and Small OATS
Reporters) and exchange and TRF/ORF linkage validations for equities
(Large Industry Members and Small OATS Reporters) on October 26,
2020.\29\
---------------------------------------------------------------------------

    \29\ The Implementation Plan and Quarterly Progress Reports are
available at www.catnmsplan.com/implementation-plan.
---------------------------------------------------------------------------

    Based on the foregoing, FINRA has determined that the CAT meets the
accuracy and reliability standards approved by the Commission in the
OATS Retirement Filing for purposes of eliminating the OATS Rules.
FINRA has determined to retire OATS and remove the OATS rules from its
rulebook effective September 1, 2021. Firms must continue to report to
OATS all order events that occur on or prior to August 31, 2021.
Reports submitted to OATS for order events that occur after August 31,
2021 will be rejected. In other words, August 31, 2021 will be the last
``OATS Business Day,'' as defined under FINRA Rule 7450(b)(3), for
which OATS will accept order events and perform routine processing
(including incorporation of corrections and repairs of rejections)
occurring within the normal OATS timeframe for such activities. OATS
will continue to accept reports for order events that occur on or prior
to August 31, 2021 (including, but not limited to, late and corrected
reports for such order events) through September 16, 2021. Firms must
ensure that their OATS reporting is accurate and complete for all order
events that occur on or prior to August 31, 2021.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\30\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\31\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and 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.
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78f(b).
    \31\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In particular, the Exchange believes that the proposed rule change
is consistent with Section C.9 of Appendix C to the Plan, which
requires each Participant to ``file with the SEC the relevant rule
change filing to eliminate or modify its duplicative rules within six
(6) months of the SEC's approval of the CAT NMS Plan.'' \32\ The Plan
notes that ``the elimination of such rules and the retirement of such
systems [will] be effective at such time as CAT Data meets minimum
standards of accuracy and reliability.'' \33\ Accordingly, the Exchange
believes the proposed rule change implements, supports, interprets or
clarifies the provisions of the Plan, and is designed to assist the
Exchange and its member organizations in meeting regulatory obligations
pursuant to, and milestones established by, the Plan. In approving the
Plan, the SEC

noted that it ``is necessary and appropriate in the public interest,
for the protection of investors and the maintenance of fair and orderly
markets, to remove impediments to, and perfect the mechanism of a
national market system, or is otherwise in furtherance of the purposes
of the Act.'' \34\ To the extent that this proposal implements,
interprets or clarifies the Plan and applies specific requirements to
member organizations, the Exchange believes that this proposal furthers
the objectives of the Plan, as identified by the SEC, and is therefore
consistent with the Act.
---------------------------------------------------------------------------

    \32\ Appendix C of CAT NMS Plan, Approval Order at 85010.
    \33\ Id.
    \34\ Approval Order at 84697.
---------------------------------------------------------------------------

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 implement
provisions of the CAT NMS Plan, and is designed to assist the Exchange
in meeting its regulatory obligations pursuant to the Plan.

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 \35\ and Rule 19b-4(f)(6) thereunder.\36\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \37\ and Rule 19b-
4(f)(6)(iii) thereunder.\38\ The Exchange states that the proposed rule
change would not significantly affect the protection of investors or
the public interest because it seeks to delete the Exchange's OATS
rules to be consistent with FINRA's announcement to retire its OATS
rules effective September 1, 2021. The Exchange further believes that
the proposed rule change would not impose any significant burden on
competition because the proposed rule change is not designed to address
any competitive issue but rather implement provisions of the CAT NMS
Plan, and is designed to assist the Exchange in meeting its regulatory
obligations pursuant to the Plan.
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    \35\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \36\ 17 CFR 240.19b-4(f)(6).
    \37\ 15 U.S.C. 78s(b)(3)(A).
    \38\ 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) \39\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\40\ 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 proposal
may become operative by September 1, 2021, the date that FINRA has
announced that it will retire OATS and delete the OATS rules from its
rulebook, unless FINRA decides not to retire OATS as scheduled. If
FINRA decides not to retire OATS as scheduled, member organizations
will still be required to report to OATS. As discussed above, the
Exchange believes that the OATS reporting requirements in the Rule 7400
Series are duplicative of information available in the CAT and will no
longer be necessary now that the CAT is operational. In addition,
August 31, 2021, will be the last ``OATS Business Day,'' as defined
under FINRA Rule 7450(b)(3), for which OATS will accept order events
and perform routine processing, and reports submitted to OATS for order
events that occur after August 31, 2021, will be rejected. The
Commission believes that it is consistent with the protection of
investors and the public interest for the Exchange to delete its OATS
reporting rules at the same time that FINRA retires OATS. Accordingly,
the Commission hereby waives the 30-day operative delay and designates
the proposal operative on September 1, 2021.\41\
---------------------------------------------------------------------------

    \39\ 17 CFR 240.19b-4(f)(6).
    \40\ 17 CFR 240.19b-4(f)(6)(iii).
    \41\ For purposed only of waiving the 30-day operative delay,
the Commission 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 this 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSE-2021-48 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-NYSE-2021-48. 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. 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-NYSE-2021-48, and should be
submitted on or before September 29, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\42\
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    \42\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-19295 Filed 9-7-21; 8:45 am]
BILLING CODE 8011-01-P