77384 Federal Register / Vol. 88, No. 216 / Thursday, November 9, 2023 / Notices 

8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its 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. 

9 15 U.S.C. 78s(b)(2)(B). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4 17 CFR 240.15b9–1. 

5See Securities Exchange Act Release No. 98202 

(August 23, 2023), 88 FR 61850 (September 7, 

2023). 

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

of the Act and Rule 19b–4(f)(6) 8

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 9 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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

NYSEAMER–2023–52 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–2023–52. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–NYSEAMER–2023–52 and should 

be submitted on or before November 30, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–24757 Filed 11–8–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98850; File No. SR–FINRA– 

2023–014] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Establish a ShortForm Membership Application Process 

and Partial Fee Waiver for Certain 

Firms Applying Due to Amended 

Exchange Act Rule 15b9–1 

November 3, 2023. 

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

Securities Exchange Act of 1934 

(‘‘Exchange Act’’),1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on October 30, 2023, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) filed with the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by FINRA. FINRA has designated the 

proposed rule change as constituting a 

‘‘non-controversial’’ rule change under 

paragraph (f)(6) of Rule 19b–4 under the 

Act,3 which renders the proposal 

effective upon receipt of this filing by 

the Commission. 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 

FINRA is proposing to adopt (1) 

FINRA Interpretive Material 1013–3 

(‘‘IM–1013–3’’) that would set forth a 

short-form membership application 

process for firms that apply for FINRA 

membership due to the amendments to 

Exchange Act Rule 15b9–1,4 adopted by 

the Commission on August 23, 2023; 5

and (2) FINRA Interpretive Material 

Section 4(e) of Schedule A to the FINRA 

By-Laws (‘‘IM-Section 4(e)’’) that would 

provide a partial waiver of the new 

membership application fee to those 

firms that are eligible to apply for 

FINRA membership pursuant to 

proposed IM–1013–3. Proposed IM– 

1013–3 and IM-Section 4(e) would be 

available only to SEC-registered nonFINRA member firms that apply for 

FINRA membership due to the 

Commission’s Exchange Act Rule 15b9– 

1 amendments and, as of August 23, 

2023, have been a member of a national 

securities exchange with which FINRA 

has had a regulatory service agreement 

(‘‘RSA’’) for the 12-month period prior 

to August 23, 2023 (‘‘Eligible Firms’’). 

The text of the proposed rule change 

is available on FINRA’s website at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 


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6See supra note 5. 

7 17 CFR 240.15b9–1. 

8FINRA is currently the only registered national 

securities association. 

9A firm seeking new FINRA membership must 

also, among other requirements, provide FINRA 

with the documents and information outlined in 

Rule 1013(a)(1)(B) through (R). 

10See generally Rule 1014(a). 

11Pursuant to FINRA Rule 1015 (Review by 

National Adjudicatory Council), an applicant may 

file a written request for review of FINRA’s decision 

with the National Adjudicatory Council. 

12While FINRA typically has 180 days after a 

firm submits a new membership application to 

issue a decision, absent any factors that might 

prompt a request for additional information or for 

a full membership application, FINRA anticipates 

that it can process most applications for Eligible 

Firms and issue a decision in line with, or in many 

cases more quickly than, FINRA’s current FastTrack Review process timeframe for eligible 

applications. Under the Fast-Track Review process, 

FINRA aims to process eligible full membership 

applications within 100 days. See infra note 14. 

13FINRA already has access to most, if not all, 

documents and information that would be required 

of these Eligible Firms during the membership 

application process. For example, by virtue of the 

regulatory services FINRA provides pursuant to the 

RSAs and related Central Registration Depository 

(‘‘Web CRD®’’) agreements it has with the national 

securities exchanges of which Eligible Firms are 

members, FINRA has access to, among other 

documents and information, Forms BD, Forms U4 

for all registered persons and principals and other 

information available on Web CRD®, as well as Risk 

Assessment Reports, financial filings such as 

FOCUS Reports and Annual Reports and most 

recent Examination Reports with accompanying 

files and dispositions. 14Factors that might prompt a request for 

additional information or a full membership 

application could include, for example, whether an 

Eligible Firm’s associated person is subject to a 

statutory disqualification or there are regulatory 

gaps identified that such firm would need to 

address to come into compliance with FINRA rules. 15 If a firm is approved for FINRA membership 

and subsequently contemplates a business 

expansion to include activities beyond the scope 

underlying the new membership approval or a 

material change in business operations as that term 

is defined in paragraph (m) under FINRA Rule 1011 

(Definitions), then such firm must apply for 

approval for a change in business operations 

pursuant to FINRA Rule 1017 (Application for 

Approval of Change in Ownership, Control, or 

Business Operations) and would be subject to the 

appropriate fee pursuant to Schedule A to the 

FINRA By-Laws. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On August 23, 2023, the Commission 

adopted amendments to Exchange Act 

Rule 15b9–1 that narrowed the 

exemption from membership in a 

registered national securities association 

(‘‘Association’’) for certain SECregistered brokers or dealers that effect 

securities transactions other than on a 

national securities exchange of which 

they are a member.6 Under amended 

Exchange Act Rule 15b9–1, a broker or 

dealer that effects securities transactions 

other than on a national securities 

exchange of which it is a member is 

exempt from Association membership if 

such broker or dealer (1) is a member of 

a national securities exchange; (2) 

carries no customer accounts; and (3) 

such transactions result solely from 

orders that are routed by a national 

securities exchange of which it is a 

member to comply with order 

protection regulatory requirements, or 

are solely for the purpose of executing 

the stock leg of a stock-option order.7

Due to the amendments, certain existing 

SEC-registered brokers or dealers will 

no longer qualify for the exemption 

from Association membership and must 

become FINRA members.8 The 

Commission has announced an effective 

date of November 6, 2023, and a 

compliance date of September 6, 2024. 

Application Review Process for New 

FINRA Membership Under FINRA Rule 

1013 (New Member Application and 

Interview) and Application Filing Fee 

An entity seeking to become a new 

FINRA member firm must undergo an 

application process that typically begins 

by filing Form NMA (Application for 

New Membership) with FINRA in 

accordance with Rule 1013.9 FINRA 

Rule 1014 (Department Decision) 

provides that after considering the 

application, a membership interview, 

other information and documents 

provided by the applicant or obtained 

by FINRA, and the public interest and 

protection of investors, FINRA must 

determine whether the applicant meets 

the standards for admission.10 Under 

Rule 1014, FINRA must render a 

decision on a new membership 

application within 180 days after the 

application is filed (or such later date as 

FINRA and the applicant have agreed in 

writing).11 When the applicant submits 

Form NMA, it must also submit the 

appropriate filing fee pursuant to 

Section 4(e) of Schedule A to the FINRA 

By-Laws. As described below, FINRA is 

proposing to establish a short-form 

membership application process for 

Eligible Firms and provide for a partial 

waiver of the new membership 

application fee. 

Short-Form Membership Application 

Process 

In lieu of completing Form NMA and 

the other requirements under Rule 1013, 

including the new membership 

interview, proposed IM–1013–3 would 

allow an Eligible Firm to undergo a new 

membership application process that 

would permit completing a short-form 

application. An Eligible Firm would 

otherwise remain subject to all 

applicable FINRA rules, including the 

provisions of the FINRA Rule 1000 

Series (Membership Application and 

Associated Person Registration).12

FINRA recognizes that Eligible Firms 

have already undergone a membership 

application and review process with at 

least one national securities exchange to 

determine whether these firms were fit 

for membership. In addition, FINRA 

currently has substantial information 

about and experience with these firms 

and therefore is familiar with their 

businesses and associated risks (e.g., 

operational risks, market risk, market 

integrity risk) by virtue of the regulatory 

services FINRA provides pursuant to the 

RSAs it has with the national securities 

exchanges of which Eligible Firms are 

members.13 For example, FINRA 

already conducts exams of Eligible 

Firms pursuant to an RSA, including 

trading-related exams for most of these 

firms. FINRA also provides, among 

other regulatory services, cross-market 

surveillance, investigations and 

disciplinary services pursuant to those 

RSAs. Some of the Eligible Firms are 

also affiliates of member firms. For these 

reasons, FINRA believes an abbreviated, 

short-form membership application 

process is appropriate for the Eligible 

Firms and that, in most cases, FINRA 

can effectively determine whether an 

Eligible Firm meets the membership 

standards in Rule 1014 without 

requiring submission of a Form NMA, 

provision of additional information or 

engaging in a formal interview with the 

firm. 

Nonetheless, depending on particular 

facts and circumstances, FINRA may 

find it necessary to obtain additional 

information to evaluate an Eligible Firm 

for membership. To that end, proposed 

IM–1013–3 would provide that FINRA, 

in the public interest and for the 

protection of investors, may require an 

Eligible Firm to provide FINRA with 

additional information or documents or 

meet any other requirement pursuant to 

Rule 1013, or to apply for membership 

pursuant to the full application and 

interview process under Rule 1013.14 In 

addition, proposed IM–1013–3 would 

provide that if an Eligible Firm’s 

application for FINRA membership 

seeks to materially expand or change the 

firm’s business operations, such firm 

would be required to apply for new 

FINRA membership pursuant to the full 

application and interview process under 

Rule 1013, including completing Form 

NMA and submitting the appropriate 

application fee set forth in Section 4(e) 

of Schedule A to the FINRA By-Laws.15

Proposed IM–1013–3 would also 

require an Eligible Firm to submit the 


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16As stated above, certain factors may prompt a 

request for additional information or for a full 

membership application, which could prolong the 

time needed for FINRA to process a firm’s 

application and issue a decision. Therefore, FINRA 

would encourage firms to apply for membership 

pursuant to proposed IM–1013–3 even earlier than 

120 days before the compliance date of amended 

Exchange Act Rule 15b9–1. 

17Pursuant to Section 4(e) of Schedule A to the 

FINRA By-Laws, the fees associated with a new 

FINRA membership application can vary, including 

a one-time application fee ranging from $7,500 to 

$55,000, depending on the number of registered 

representatives associated with a firm. 

18See FINRA By-Laws, Schedule A, Section 4(e). 

19 15 U.S.C. 78o–3(b)(6). 

20 15 U.S.C. 78o–3(b)(5). 

21The Commission estimated that, as of April 

2023, there were 64 firms that were SEC-registered 

broker-dealers and exchange members but not 

FINRA members, and that such firms have forgone 

FINRA membership presumably in reliance on 

Exchange Act Rule 15b9–1. See Securities Exchange 

Act Release No. 98202 (August 23, 2023), 88 FR 

61850, 61853–54 (September 7, 2023) (Exemption 

for Certain Exchange Members; Final Rule). The 

actual number of firms that may ultimately seek 

FINRA membership due to the narrowed exemption 

may change based on several factors. For example, 

since the Commission’s estimate in April 2023, 

some firms have terminated their status as an SECregistered broker-dealer or have already become 

FINRA members. 

short-form application to FINRA at least 

120 calendar days before the amended 

Exchange Act Rule 15b9–1 compliance 

date to provide FINRA with the time to 

process a firm’s short-form membership 

application before the amended 

Exchange Act Rule 15b9–1 compliance 

date—unless FINRA, in its discretion, 

agrees to accept an application after this 

deadline but before the amended 

Exchange Act Rule 15b9–1 compliance 

date.16 As stated above, the Commission 

has announced a compliance date of 

September 6, 2024. 

Partial Membership Application Fee 

Waiver 

As stated above, the fee for an 

application for new membership, 

submitted through Form NMA, is 

typically subject to the fee structure set 

forth under Section 4(e) of Schedule A 

to the FINRA By-Laws.17 FINRA is 

proposing a partial waiver of the new 

membership application fee for a shortform application submitted pursuant to 

proposed IM–1013–3. Proposed IMSection 4(e) would assess one-half the 

applicable membership application fee 

set forth in Section 4(e) of Schedule A 

to the FINRA By-Laws. FINRA believes 

a partial fee waiver is appropriate with 

respect to the review of a short-form 

application submitted by an Eligible 

Firm because, as stated above, FINRA 

has substantial information about and 

experience with these firms and is 

familiar with their business and 

associated risks by virtue of the 

regulatory services FINRA provides 

pursuant to RSAs with the national 

securities exchanges of which the 

Eligible Firms are members. As such, 

FINRA will not need to obtain the same 

amount of information from an Eligible 

Firm that applies with the short-form 

application or dedicate the same 

resources to evaluate such an 

application as it would in other cases. 

However, as stated above, if FINRA 

determines that an Eligible Firm must 

undergo the full application and 

interview process pursuant to Rule 

1013, such firm shall be assessed the 

full membership application fee set 

forth in Section 4(e) of Schedule A to 

the FINRA By-Laws.18

FINRA has filed the proposed rule 

change for immediate effectiveness. 

FINRA will announce the 

implementation date of the proposed 

rule change in a Regulatory Notice. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,19 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest, and must not be 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. FINRA 

believes the proposed rule change 

would facilitate efficient and expedited 

processing of membership applications 

from the Eligible Firms, while 

maintaining investor protection by 

ensuring that these firms meet the 

applicable standards for FINRA 

membership. As stated above, the 

Eligible Firms have already undergone a 

membership application and review 

process with at least one national 

securities exchange to determine 

whether these firms were fit for 

membership. In addition, FINRA has 

substantial information about and 

experience with these firms and 

therefore is familiar with their 

businesses and associated risks (e.g., 

operational risks, market risk, market 

integrity risk) by virtue of the regulatory 

services FINRA provides pursuant to the 

RSAs it has with the national securities 

exchanges of which Eligible Firms are 

members. FINRA also retains the ability 

to request additional documents or 

information from an Eligible Firm or to 

require a firm to undergo the full 

application and interview process 

pursuant to Rule 1013, which further 

protects investors and the public 

interest. 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(5) of the Act,20 which 

requires, among other things, that 

FINRA rules provide for the equitable 

allocation of reasonable dues, fees and 

other charges among members and 

issuers and other persons using any 

facility or system that FINRA operates 

or controls. FINRA believes that the 

proposed partial waiver of the 

membership application fee, which 

would be available to all Eligible Firms 

that qualify to apply for new FINRA 

membership pursuant to proposed IM– 

1013–3, is consistent with an equitable 

allocation of reasonable fees. FINRA 

believes the proposed partial fee waiver 

reflects an equitable allocation of 

reasonable fees considering the 

streamlined review process 

contemplated in the short-form 

membership application process. As 

discussed above, to facilitate this 

streamlined membership application 

process, FINRA is able to leverage the 

substantial information about and 

experience with these firms gained by 

virtue of the regulatory services FINRA 

provides pursuant to RSAs with the 

national securities exchanges of which 

these firms are members. As such, 

FINRA would not need to obtain the 

same amount of information from an 

Eligible Firm applicant that it would 

from a non-Eligible Firm applicant. 

Moreover, the review process would 

also be streamlined for an Eligible Firm 

applicant relative to a non-Eligible Firm 

applicant. Thus, it is equitable to apply 

the fee waiver only to the Eligible Firms. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Economic Impact Assessment 

(a) Regulatory Need 

As discussed above, as a result of 

amendments to Exchange Act Rule 

15b9–1, certain SEC-registered brokers 

or dealers that effect securities 

transactions other than on a national 

securities exchange of which they are a 

member will no longer qualify for an 

exemption from Association 

membership. FINRA understands that as 

a result, approximately 62 firms may 

seek to become FINRA members by the 

compliance date of amended Exchange 

Act Rule 15b9–1.21 FINRA further 

understands that most, if not all, of 

these firms meet the standards for 


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22The full membership application process may 

be required in some cases. See supra note 14. 

23The average amount waived is anticipated to be 

$6,840 and ranges from $3,750 to $15,000. 

24 15 U.S.C. 78s(b)(3)(A). 

25 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its 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. FINRA has 

satisfied this requirement. 

26 17 CFR 240.19b–4(f)(6). 

27 17 CFR 240.19b–4(f)(6)(iii). 

Eligible Firms as defined above. FINRA 

can, in most cases, effectively determine 

whether an Eligible Firm meets the 

membership standards in Rule 1014 

without requiring submission of a Form 

NMA or subjecting such a firm to the 

other application and interview 

requirements of Rule 1013.22

The proposed rule change to 

implement the short-form membership 

application process would allow FINRA 

to review membership applications from 

Eligible Firms efficiently while 

maintaining investor protection. The 

partial membership application fee 

waiver is aligned with the proposed 

short-form membership application 

process and the related streamlined 

review process. 

(b) Economic Baseline 

The economic baseline for the 

proposed rule change includes the full 

application and interview process 

provided in Rule 1013, the membership 

application fee set forth in Section 4(e) 

of Schedule A to the FINRA By-Laws, 

and the recent amendments to Exchange 

Act Rule 15b9–1. FINRA understands 

that approximately 62 firms may seek to 

become FINRA members by the 

compliance date for amended Exchange 

Act Rule 15b9–1. 

(c) Economic Impacts 

i. Anticipated Benefits 

Eligible Firms that successfully 

become FINRA members through the 

short-form membership application 

process would benefit from financial 

and non-financial cost savings given 

that these firms would not be required 

to provide documents and other 

information that are required under the 

full application and interview process. 

Eligible Firms would also receive a 

financial benefit from paying only onehalf of the membership application fee. 

Becoming FINRA members more 

quickly would also resolve earlier any 

uncertainty firms may have about being 

able to join FINRA by the Commission’s 

compliance date for its amendments to 

Exchange Act Rule 15b9–1. 

ii. Anticipated Costs 

Relative to the baseline, FINRA 

anticipates little or no additional risks 

to market integrity or investors. FINRA 

will obtain additional information or 

documents or require a firm to go 

through the regular NMA process if 

such is in the public interest and for the 

protection of investors. A firm that seeks 

to materially expand or change its 

business operations when applying 

would be required to apply for FINRA 

membership pursuant to all 

requirements under Rule 1013. A firm 

that is approved for FINRA membership 

and subsequently contemplates a 

business expansion to include activities 

beyond the scope underlying the new 

membership approval or a material 

change in business operations would be 

required to apply for approval for a 

change in business operations pursuant 

to Rule 1017 and be subject to the 

appropriate fee pursuant to Schedule A 

to the FINRA By-Laws. 

iii. Anticipated Competitive Effects 

Relative to the baseline in which 

Eligible Firms would go through the full 

application and interview process and 

pay the full membership application fee, 

FINRA anticipates minimal competitive 

effects, if any. A streamlined 

membership application process for 

Eligible Firms would provide them 

certainty that they will be able to 

continue their business in compliance 

with amended Exchange Act Rule 15b9– 

1. Such certainty would mitigate any 

concerns regarding their ability to 

compete in the security markets without 

interruption. 

In addition, Eligible Firms that 

successfully become FINRA members 

through the short-form membership 

application process would retain the 

resources that they would have 

otherwise spent on the full application 

and interview process and would pay 

only one-half of the membership 

application fee. These firms may use 

these resources for operational or 

investment purposes. Regarding the 

membership application fee, however, 

FINRA anticipates that the median 

amount waived would be $6,250.23

FINRA does not believe that this 

amount would significantly impact an 

Eligible Firm’s business. Similarly, with 

respect to firms that seek FINRA 

membership but do not meet the 

proposed definition of ‘‘Eligible Firm’’ 

and therefore are not able to avail 

themselves of the short-form 

membership application and partial fee 

waiver, FINRA does not anticipate that 

the existence of the proposal would 

deter such firms from applying for 

FINRA membership or place them at a 

significant disadvantage relative to 

Eligible Firms. Thus, FINRA expects 

that the effect of the proposed rule 

change on industry structure and 

competition would be insignificant. 

(d) Alternatives Considered 

FINRA considered charging the full 

membership application fee for Eligible 

Firms. However, FINRA believes a 

partial membership application fee 

waiver is appropriate because, as stated 

above, FINRA would not need to obtain 

the same amount of information from an 

Eligible Firm applicant or dedicate the 

same resources to evaluate such 

applicant as it would for a typical new 

applicant because FINRA is able to 

leverage the substantial information 

about and experience with these firms 

gained by virtue of the regulatory 

services FINRA provides pursuant to the 

RSAs with the national securities 

exchanges of which the Eligible Firms 

are members. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, it has become effective 

pursuant to Section 19(b)(3)(A) of the 

Act 24 and Rule 19b–4(f)(6) 25

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 26 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),27 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. FINRA has asked the 

Commission to waive the 30-day 

operative delay so that the proposed 

rule change may become operative upon 

filing. FINRA proposes to make the 

proposed rule change operative on the 


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28For purposes 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). 29 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Regulatory Notice 16–39 (October 2016); see 

also Securities Exchange Act Release No. 79116 

(October 18, 2016), 81 FR 73167 (October 24, 2016) 

(Order Granting Accelerated Approval of File No. 

SR–FINRA–2016–027). 

date of filing to allow Eligible Firms to 

apply for FINRA membership pursuant 

to proposed IM–1013–3 beginning on, or 

as close as possible to, the November 6, 

2023 effective date of amended 

Exchange Act Rule 15b9–1. FINRA 

stated that while under the proposed 

rule change Eligible Firms must apply 

for membership at least 120 days before 

the September 6, 2024 compliance date 

of amended Exchange Act Rule 15b9–1, 

some firms have already inquired about 

beginning the application process. For 

those firms that wish to apply close to 

the effective date, this will also provide 

FINRA with additional time to process 

such Eligible Firms’ applications and 

provide more certainty that they will be 

able to continue their business in 

compliance with amended Exchange 

Act Rule 15b9–1. For these reasons, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest. Therefore, the 

Commission hereby waives the 

operative delay and designates the 

proposal operative upon filing.28

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

FINRA–2023–014 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–FINRA–2023–014. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of 

FINRA. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–FINRA–2023–014 and should be 

submitted on or before November 30, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–24759 Filed 11–8–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98859; File No. SR–FINRA– 

2023–015] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of a 

Proposed Rule Change Relating to 

Dissemination of Information on 

Individual Transactions in U.S. 

Treasury Securities and Related Fees 

November 3, 2023. 

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 November 

2, 2023, the Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by FINRA. 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 

FINRA is proposing to (1) amend 

FINRA Rules 6710 and 6750 to provide 

that FINRA will disseminate 

information on individual transactions 

in U.S. Treasury Securities that are Onthe-Run Nominal Coupons reported to 

FINRA’s Trade Reporting and 

Compliance Engine (‘‘TRACE’’) on an 

end-of-day basis with specified 

dissemination caps for large trades, and 

(2) amend FINRA Rule 7730 to include 

U.S. Treasury Securities within the 

existing fee structure for end-of-day and 

historic TRACE data. 

The text of the proposed rule change 

is available on FINRA’s website at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA 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 

On July 10, 2017,3 FINRA members 

began reporting information on 

transactions in U.S. Treasury 


ddrumheller on DSK120RN23PROD with NOTICES1