Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices 641 

10See Rule 5935. 

11See Securities Exchange Act Release No. 88408 

(March 18, 2020), 85 FR 16705 (March 24, 2020) 

(NYSE–2020–16). 12 15 U.S.C. 78s(b)(3)(A)(ii). 

13 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

of paying listing fees to both the 

Exchange and the predecessor foreign 

regulated exchange imposes a financial 

burden and acts as a disincentive to 

transferring. Additionally, the Exchange 

has implemented similar waivers for 

companies that switch their listing 

markets for its non-convertible bonds 

from the New York Stock Exchange or 

NYSE America.10 Moreover, similar 

waivers exist on other exchanges.11

The Proposal Is an Equitable Allocation 

of Fees 

The Exchange believes that the waiver 

of the application and annual fees for 

listing non-convertible bonds listings in 

conjunction with their voluntary 

delisting from a foreign regulated 

exchange is not inequitable as it expects 

it will be available to a small number of 

issuers and is being implemented solely 

to relieve these issuers of the burden of 

duplicative payments to two exchanges. 

The Proposal Is Not Unfairly 

Discriminatory 

The Exchange believes that the 

proposal is not unfairly discriminatory, 

because the proposed waivers are solely 

intended to avoid duplication of costs 

for issuers transferring their listings 

from foreign regulated exchanges and 

does not provide them with any benefit 

that would place them in a more 

favorable position than other listed 

companies. Finally, the Exchange 

believes that it is subject to significant 

competitive forces, as described below 

in the Exchange’s statement regarding 

the burden on competition. 

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. 

Intramarket Competition 

The Exchange does not believe that its 

proposals will place any applicant at a 

competitive disadvantage. To the 

contrary, the proposed waiver will 

ensure that applicants who transfer their 

listings from a foreign exchange are not 

placed at a disadvantage versus other 

applicants. The proposed waivers will 

be available to all similarly situated 

applicants on the same basis. The 

Exchange does not believe that the 

proposed amended fees will have any 

meaningful effect on the competition 

among issuers listed on the Exchange. 

Moreover, applicants are free to list on 

other venues to the extent they believe 

that the waiver is not attractive. 

Intermarket Competition 

The Exchange operates in a highly 

competitive market in which issuers can 

readily choose to list new securities on 

other exchanges and transfer listings to 

other exchanges if they deem fee levels 

at those other venues to be more 

favorable. Because competitors are free 

to modify their own fees in response, 

and because issuers may change their 

chosen listing venue, the Exchange does 

not believe its proposed fee change 

imposes any burden on intermarket 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 12 and paragraph (f) of Rule 

19b–4 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. 

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 rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2020–097 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–NASDAQ–2020–097. 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–NASDAQ–2020–097 and 

should be submitted on or before 

January 27, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–29221 Filed 1–5–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90833; File No. SR– 

NYSEAMER–2020–87] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Modify the NYSE American 

Options Fee Schedule 

December 30, 2020. 

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 December 

29, 2020, NYSE American LLC (‘‘NYSE 


jbell on DSKJLSW7X2PROD with NOTICES
642 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices 

4See Securities Exchange Act Release Nos. 88595 

(April 8, 2020), 85 FR 20737 (April 14, 2020) (SR– 

NYSEAMER–2020–25) (waiving Floor-based fixed 

fees); 88840 (May 8, 2020), 85 FR 28992 (May 14, 

2020) (SR–NYSEAMER–2020–37) (extending April 

2020 fee changes through May 2020); and 89049 

(June 11, 2020), 85 FR 36649 (June 17, 2020) (SR– 

NYSEAMER–2020–44) (extending April and May 

fee changes through June 2020). See also Fee 

Schedule, Section III. Monthly Trading Permit, 

Rights, Floor Access and Premium Product Fees, 

and IV. Monthly Floor Communication, 

Connectivity, Equipment and Booth or Podia Fees. 

5See Securities Exchange Act Release Nos. 89241 

(July 7, 2020), 85 FR 42034 (July 13, 2020) (SR– 

NYSEAMER–2020–47); 89482 (August 5, 2020), 85 

FR 48577 (August 11, 2020) (SR–NYSEAMER– 

2020–55); 89692 (August 27, 2020), 85 FR 54611 

(September 2, 2020) (SR–NYSEAMER–2020–65); 

90185 (October 14, 2020), 85 FR 66675 (October 20, 

2020) (SR–NYSEAMER–2020–75). See also Fee 

Schedule, Section III., Monthly Trading Permit, 

Rights, Floor Access and Premium Product Fees, 

and IV. Monthly Floor Communication, 

Connectivity, Equipment and Booth or Podia Fees. 

6See proposed Fee Schedule, Section III., 

Monthly Trading Permit, Rights, Floor Access and 

Premium Product Fees, and IV. Monthly Floor 

Communication, Connectivity, Equipment and 

Booth or Podia Fees. 

7See id. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(4) and (5). 

10See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 

(S7–10–04) (‘‘Reg NMS Adopting Release’’). 

11The OCC publishes options and futures volume 

in a variety of formats, including daily and monthly 

volume by exchange, available here: https://

www.theocc.com/market-data/volume/default.jsp. 

12Based on OCC data, see id., the Exchange’s 

market share in equity-based options increased 

slightly from 8.06% for the month of November 

2019 to 9.09% for the month of November 2020. 

American’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to modify the 

NYSE American Options Fee Schedule 

(‘‘Fee Schedule’’) to extend the waiver 

of certain Floor-based fixed fees. The 

Exchange proposes to implement the fee 

change effective January 1, 2021. 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 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 purpose of this filing is to modify 

the Fee Schedule to extend the waiver 

of certain Floor-based fixed fees for 

market participants that have been 

unable to resume their Floor operations 

to a certain capacity level, as discussed 

below. The Exchange proposes to 

implement the fee change effective 

January 1, 2021. 

On March 18, 2020, the Exchange 

announced that it would temporarily 

close the Trading Floor, effective 

Monday, March 23, 2020, as a 

precautionary measure to prevent the 

potential spread of COVID–19. 

Following the temporary closure of the 

Trading Floor, the Exchange waived 

certain Floor-based fixed fees for April, 

May and June 2020.4 Although the 

Trading Floor partially reopened on 

May 26, 2020 and Floor-based open 

outcry activity is supported, certain 

participants have been unable to resume 

pre-Floor closure levels of operations. 

As a result, the Exchange extended the 

fee waiver through December 2020, but 

only for Floor Broker firms that were 

unable to operate at more than 50% of 

their March 2020 on-Floor staffing 

levels and for Market Maker firms that 

have vacant or ‘‘unmanned’’ Podia for 

the entire month due to COVID–19 

related considerations (the ‘‘Qualifying 

Firms’’).5 Because the Trading Floor 

will continue to operate with reduced 

capacity, the Exchange proposes to 

extend the fee waiver for Qualifying 

Firms through the earlier of the first full 

month of a full reopening of the Trading 

Floor facilities to Floor personnel or 

March 2021.6

Specifically, as with the prior fee 

waivers, the proposed fee waiver covers 

the following fixed fees for Qualifying 

Firms, which relate directly to Floor 

operations, are charged only to Floor 

participants and do not apply to 

participants that conduct business offFloor: 

• Floor Access Fee; 

• Floor Broker Handheld 

• Transport Charges 

• Floor Market Maker Podia; 

• Booth Premises; and 

• Wire Services.7

The proposed fee change is designed 

to reduce monthly costs for all 

Qualifying Firms whose operations 

continue to be disrupted even though 

the Trading Floor has partially 

reopened. In reducing this monthly 

financial burden, the proposed change 

would allow Qualifying Firms that had 

Floor operations in March 2020 to 

reallocate funds to assist with the cost 

of shifting and maintaining their prior 

fully-staffed on-Floor operations to offFloor and recoup losses as a result of the 

partial reopening. The Exchange 

believes that all Qualifying Firms would 

benefit from this proposed fee change. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,8 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,9 in particular, 

because it provides for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members, 

issuers and other persons using its 

facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

The Exchange operates in a highly 

competitive market. The Commission 

has repeatedly expressed its preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In Regulation NMS, the 

Commission highlighted the importance 

of market forces in determining prices 

and SRO revenues and, also, recognized 

that current regulation of the market 

system ‘‘has been remarkably successful 

in promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 10

There are currently 16 registered 

options exchanges competing for order 

flow. Based on publicly-available 

information, and excluding index-based 

options, no single exchange has more 

than 16% of the market share of 

executed volume of multiply-listed 

equity and ETF options trades.11

Therefore, currently no exchange 

possesses significant pricing power in 

the execution of multiply-listed equity & 

ETF options order flow. More 

specifically, in November 2020, the 

Exchange had less than 10% market 

share of executed volume of multiplylisted equity and ETF options trades.12


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Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices 643 

13See Reg NMS Adopting Release, supra note 10, 

at 37499. 

14See supra note 11. 

15Based on OCC data, supra note 12, the 

Exchange’s market share in equity-based options 

was 8.06% for the month of November 2019 and 

9.09% for the month of November 2020. 

16 15 U.S.C. 78s(b)(3)(A). 

17 17 CFR 240.19b–4(f)(2). 

18 15 U.S.C. 78s(b)(2)(B). 

This proposed fee change is 

reasonable, equitable, and not unfairly 

discriminatory because it would reduce 

monthly costs for all Qualifying Firms 

whose operations have been disrupted 

despite the fact that the Trading Floor 

has partially reopened because of the 

social distancing requirements and/or 

other health concerns related to 

resuming operation on the Floor. In 

reducing this monthly financial burden, 

the proposed change would allow 

Qualifying Firms that had Floor 

operations in March 2020 to reallocate 

funds to assist with the cost of shifting 

and maintaining their prior fully-staffed 

on-Floor operations to off-Floor and 

recoup losses as a result of the partial 

reopening of the Floor. The Exchange 

believes that all Qualifying Firms would 

benefit from this proposed fee change. 

The Exchange believes the proposed 

rule change is an equitable allocation of 

its fees and credits as it merely 

continues the previous fee waiver for 

Qualifying Firms, which affects fees 

charged only to Floor participants and 

does not apply to participants that 

conduct business off-Floor. The 

Exchange believes it is an equitable 

allocation of fees and credits to extend 

the fee waiver for Qualifying Firms 

because such firms have either no more 

than half of their Floor staff (as 

measured by either the March 2020 or 

Exchange-approved) levels or have 

vacant podia—and this reduction in 

staffing levels on the Floor impacts the 

speed, volume and efficiency with 

which these firms can operate, which is 

to their financial detriment. 

The Exchange believes that the 

proposal is not unfairly discriminatory 

because the proposed continuation of 

the fee waiver would affect all similarlysituated market participants on an equal 

and non-discriminatory basis. 

Finally, the Exchange believes that it 

is subject to significant competitive 

forces, as described below in the 

Exchange’s statement regarding the 

burden on competition. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act, the Exchange does not believe 

that the proposed rule change would 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

The Exchange believes that the 

proposed changes would encourage the 

continued participation of Qualifying 

Firms, thereby promoting market depth, 

price discovery and transparency and 

would enhance order execution 

opportunities for all market 

participants. As a result, the Exchange 

believes that the proposed change 

furthers the Commission’s goal in 

adopting Regulation NMS of fostering 

integrated competition among orders, 

which promotes ‘‘more efficient pricing 

of individual stocks for all types of 

orders, large and small.’’ 13

Intramarket Competition. The 

proposed change, which continues the 

fee waiver for all Qualifying Firms, is 

designed to reduce monthly costs for 

those Floor participants whose 

operations continue to be impacted, 

even though the Trading Floor has 

partially reopened. In reducing this 

monthly financial burden, the proposed 

change would allow Qualifying Firms 

that had Floor operations in March 2020 

to reallocate funds to assist with the cost 

of shifting and maintaining their 

previously on-Floor operations to offFloor. The Exchange believes that the 

proposed waiver of fees for Qualifying 

Firms would not impose a disparate 

burden on competition among market 

participants on the Exchange because 

off-Floor market participants are not 

subject to these Floor-based fixed fees. 

In addition, Floor-based firms that are 

not subject to the extent of staffing 

shortfalls as are Qualifying Firms, i.e., 

such firms have more than 50% of their 

March 2020—or Exchange-approved— 

staffing levels on the Floor and/or have 

no vacant Podia during the month, do 

not face the same operational disruption 

and potential financial impact during 

the partial reopening of the Floor. 

Intermarket Competition. The 

Exchange operates in a highly 

competitive market in which market 

participants can readily favor one of the 

16 competing option exchanges if they 

deem fee levels at a venue to be 

excessive. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges and to attract order flow to 

the Exchange. Based on publiclyavailable information, and excluding 

index-based options, no single exchange 

currently has more than 16% of the 

market share of executed volume of 

multiply-listed equity and ETF options 

trades.14 Therefore, currently no 

exchange possesses significant pricing 

power in the execution of multiplylisted equity & ETF options order flow. 

More specifically, in November 2020, 

the Exchange had less than 10% market 

share of executed volume of multiplylisted equity and ETF options trades.15

The Exchange believes that the 

proposed rule change reflects this 

competitive environment because it 

waives fees for Qualifying Firms and is 

designed to reduce monthly costs for 

Floor participants whose operations 

continue to be disrupted even though 

the Trading Floor has partially 

reopened. In reducing this monthly 

financial burden, the proposed change 

would allow affected participants to 

reallocate funds to assist with the cost 

of shifting and maintaining their prior 

fully-staffed on-Floor operations to offFloor. 

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 foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 16 of the Act and 

subparagraph (f)(2) of Rule 19b–4 17

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 18 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

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 rule-comments@

sec.gov. Please include File Number SR– 


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644 Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Notices 

19 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 90024 

(September 28, 2020), 85 FR 62353 (October 2, 

2020) (SR–NYSE–2020–76) (‘‘SR–NYSE–2020–76’’). 

5The Exchange may submit a separate rule filing 

to extend the expiration date of the proposed 

extension beyond April 30, 2021 if the Exchange 

requires additional temporary relief from the rule 

requirements identified in NYSE–SR–2020–76. The 

amended NYSE rules will revert back to their 

original state at the conclusion of the temporary 

relief period and any extension thereof. 

6See Securities Exchange Act Release No. 68678 

(January 16, 2013), 78 FR 5213 (January 24, 2013) 

(SR–NYSE–2013–02) (‘‘2013 Notice’’), 69045 

(March 5, 2013), 78 FR 15394 (March 11, 2013) (SR– 

NYSE–2013–02) (‘‘2013 Approval Order’’), and 

69963 (July 10, 2013), 78 FR 42573 (July 16, 2013) 

(SR–NYSE–2013–49). 

7See NYSE Information Memorandum 13–8 (May 

24, 2013). 

NYSEAMER–2020–87 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–NYSEAMER–2020–87. 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–NYSEAMER–2020–87 and 

should be submitted on or before 

January 27, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–29222 Filed 1–5–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90821; File No. SR–NYSE– 

2020–107] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Extending the 

Expiration Date of the Temporary 

Amendments to Rules 9261 and 9830 

as Set Forth in SR–NYSE–2020–76 

From December 31, 2020, to April 30, 

2021 

December 30, 2020. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (‘‘Act’’ 

or ‘‘Exchange Act’’) 2 and Rule 19b–4 

thereunder,3 notice is hereby given that 

on December 22, 2020, 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 Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes extending the 

expiration date of the temporary 

amendments to Rules 9261 and 9830 as 

set forth in SR–NYSE–2020–76 from 

December 31, 2020, to April 30, 2021, in 

conformity with recent changes by the 

Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’). The 

proposed rule change would not make 

any changes to the text of NYSE Rules 

9261 and 9830. The proposed rule 

change is available on the Exchange’s 

website at www.nyse.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes extending the 

expiration date of the temporary 

amendments in SR–NYSE–2020–76 4 to 

Rules 9261 (Evidence and Procedure in 

Hearing) and 9830 (Hearing) from 

December 31, 2020, to April 30, 2021 to 

harmonize with recent changes by 

FINRA to extend the expiration date of 

the temporary amendments to its Rules 

9261 and 9830. SR–NYSE–2020–76 

temporarily granted to the Chief or 

Deputy Chief Hearing Officer the 

authority to order that hearings be 

conducted by video conference if 

warranted by public health risks posed 

by in-person hearings during the 

ongoing COVID–19 pandemic. The 

proposed rule change would not make 

any changes to the text of Exchange 

Rules 9261 and 9830.5

Background 

In 2013, the NYSE adopted 

disciplinary rules that are, with certain 

exceptions, substantially the same as the 

FINRA Rule 8000 Series and Rule 9000 

Series, and which set forth rules for 

conducting investigations and 

enforcement actions.6 The NYSE 

disciplinary rules were implemented on 

July 1, 2013.7

In adopting disciplinary rules 

modeled on FINRA’s rules, the NYSE 

adopted the hearing and evidentiary 

processes set forth in Rule 9261 and in 

Rule 9830 for hearings in matters 

involving temporary and permanent 

cease and desist orders under the Rule 

9800 Series. As adopted, the text of Rule 

9261 is identical to the counterpart 

FINRA rule. Rule 9830 is substantially 


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