86708 Federal Register / Vol. 88, No. 239 / Thursday, December 14, 2023 / Notices 

19 15 U.S.C. 78s(b)(3)(A)(ii). 

20 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. 68678 

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

(SR–NYSE–2013–02) (‘‘2013 Notice’’); Release No. 

69045 (March 5, 2013), 78 FR 15394 (March 11, 

2013) (SR–NYSE–2013–02) (‘‘2013 Approval 

Order’’). 

5See NYSE Information Memorandum 13–8 (May 

24, 2013). 

6See 2013 Approval Order, 78 FR at 15394, n. 7 

& 15400; 2013 Notice, 78 FR at 5228 & 5234. 

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)(ii) of the Act.19

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: (i) necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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– 

Phlx–2023–53 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–Phlx–2023–53. 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–Phlx–2023–53 and should be 

submitted on or before January 4, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–27402 Filed 12–13–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99120; File No. SR–NYSE– 

2023–47] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Harmonize 

Rules 9261 and 9830 

December 8, 2023. 

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 November 

27, 2023, New York Stock Exchange 

LLC (‘‘NYSE’’ 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 harmonize 

Rules 9261 and 9830 with recent 

changes by the Financial Industry 

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

that allow for video conference hearings 

under specified conditions. 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 to harmonize 

Rules 9261 (Evidence and Procedure in 

Hearing) and 9830 (Hearing) with recent 

changes by FINRA to its Rules 9261 and 

9830 that allow for video conference 

hearings under specified conditions. 

Background 

In 2013, the NYSE adopted 

disciplinary rules modeled on the 

FINRA Rule 8000 Series and Rule 9000 

Series, and which set forth rules for 

conducting investigations and 

enforcement actions.4 The NYSE 

disciplinary rules were implemented on 

July 1, 2013.5

In adopting disciplinary rules 

modeled on FINRA’s rules, the NYSE 

adopted the hearing and evidentiary 

processes set forth in Rule 9261 and also 

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 also identical 

to FINRA’s counterpart rule, except for 

conforming and technical amendments.6

In 2020, given the spread of COVID– 

19 and its effect on FINRA’s 

adjudicatory functions nationwide, 

FINRA filed a temporary rule change to 

grant FINRA’s Office of Hearing Officers 


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7See Securities Exchange Act Release Nos. 83289 

(September 2, 2020), 85 FR 55712 (September 9, 

2020) (SR–FINRA–2020–027). FINRA also proposed 

to temporarily amend FINRA Rules 1015 and 9524. 

FINRA Rule 1015 governs the process by which an 

applicant for new or continuing membership can 

appeal a decision rendered by FINRA’s Department 

of Member Supervision under FINRA Rule 1014 or 

1017 and request a hearing which would be 

conducted by a subcommittee of the NAC. See id. 

The Exchange has not adopted FINRA Rule 1015. 

FINRA Rule 9524 governs the process by which a 

statutorily disqualified member firm or associated 

person can appeal the Department’s 

recommendation to deny a firm or sponsoring firm’s 

application to the NAC. See id. Under the 

Exchange’s version of Rule 9524, if the Chief 

Regulatory Officer rejects the application, the 

member organization or applicant may request a 

review by the Exchange Board of Directors. This 

differs from FINRA’s process, which provides for a 

hearing before the NAC and further consideration 

by the FINRA Board of Directors. 

8See 85 FR at 55713. 

9See id. 

10FINRA’s OHO administers all aspects of 

Exchange adjudications, including assigning 

hearing officers to serve as NYSE hearing officers. 

A hearing officer from OHO will, among other 

things, preside over the disciplinary hearing, select 

and chair the hearing panel, and prepare and issue 

written decisions. The Chief or Deputy Hearing 

Officer for all Exchange disciplinary hearings are 

currently drawn from OHO and are all FINRA 

employees. The Exchange believes that OHO will 

utilize the same video conference protocol and 

processes for Exchange matters under the RSA as 

it proposes for FINRA matters. 

11See Securities Exchange Act Release No. 90024 

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

2020) (SR–NYSE–2020–76) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

to Harmonize Rules 9261 and 9830 with Recent 

Changes by the Financial Industry Regulatory 

Authority, Inc.). 

12See Securities Exchange Act Release No. 90619 

(December 9, 2020), 85 FR 81250 (December 15, 

2020) (SR–FINRA–2020–042); Securities Exchange 

Act Release No. 91495 (April 7, 2021), 86 FR 19306 

(April 13, 2021) (SR–FINRA–2021–006); Securities 

Exchange Act Release No. 92685 (August 17, 2021), 

86 FR 47169 (August 23, 2021) (SR–FINRA–2021– 

019); Securities Exchange Act Release No. 93758 

(December 13, 2021), 86 FR 71695 (December 17, 

2021) (SR–FINRA–2021–31); Securities Exchange 

Act Release No. 94430 (March 16, 2022), 87 FR 

16262 (March 22, 2022) (SR–FINRA–2022–004); 

Securities Exchange Act Release No. 95281 (July 14, 

2022), 87 FR 43335 (July 20, 2022) (SR–FINRA– 

2022–018); Securities Exchange Act Release No. 

96107 (October 19, 2022), 87 FR 64526 (October 25, 

2022) (SR–FINRA–2022–029); and Securities 

Exchange Act Release No. 96746 (January 25, 2023), 

88 FR 6346 (January 31, 2023) (SR–FINRA–2023– 

001). 

13See Securities Exchange Act Release No. 90821 

(December 30, 2020), 86 FR 644 (January 6, 2021) 

(NYSE–2020–107); Securities Exchange Act Release 

No. 91629 (April 22, 2021), 86 FR 22505 (April 28, 

2021) (NYSE–2021–27); Securities Exchange Act 

Release No. 92907 (September 9, 2021), 86 FR 

51421 (September 15, 2021) (NYSE–2021–47); 

Securities Exchange Act Release No. 93920 (January 

6, 2022), 87 FR 1794 (January 1, 2022) (NYSE– 

2021–78); Securities Exchange Act Release No. 

94666 (April 11, 2022), 87 FR 22607 (April 15, 

2022) (NYSE–2022–17); Securities Exchange Act 

Release No. 95473 (August 11, 2022), 87 FR 50648 

(August 17, 2022) (NYSE–2022–35); Securities 

Exchange Act Release No. 96259 (November 8, 

2022), 87 FR 68544 (November 15, 2022) (NYSE– 

2022–50); and Securities Exchange Act Release No. 

96803 (February 3, 2023), 88 FR 8487 (February 9, 

2023) (NYSE–2023–10). 

14See Securities Exchange Act Release No. 96803 

(February 3, 2023), 88 FR 8487 (February 9, 2023) 

(NYSE–2023–10) (extending the expiration date of 

the temporary rule amendments to, among other 

rules, FINRA Rules 9261 and 9830 from January 31, 

2023 to April 30, 2023). The temporary 

amendments expired on April 30, 2023, because the 

Exchange did not file another proposed rule change 

again extending the temporary amendments beyond 

that date. See id. at 8488. 

15See Securities Exchange Act Release Nos. 

98029 (August 4, 2023), 88 FR 51879 (August 4, 

2023) (SR–FINRA–2023–008) (Order Approving a 

Proposed Rule Change To Amend FINRA Rules 

1015, 9261, 9341, 9524, 9830 and Funding Portal 

Rule 900 (Code of Procedure) To Permit Hearings 

Under Those Rules To Be Conducted by Video 

Conference) (‘‘FINRA Approval Order’’). 

16See FINRA Approval Order, 88 FR at 51880. 

17See id. 

18See id. 

19See id. 

20See id. 

21As used herein, ‘‘evidentiary hearings’’ refers to 

hearings conducted before OHO under Rules 9261 

and 9830. See id., 88 FR at 51880, n. 25. 

22See id. at 51881. 

(‘‘OHO’’) and the National Adjudicatory 

Council (‘‘NAC’’) the authority to 

conduct certain hearings by video 

conference if warranted by the current 

COVID–19-related public health risks 

posed by in-person hearings. Among the 

rules FINRA amended were FINRA 

Rules 9261 and 9830.7

In its filing, FINRA represented that 

its protocol for conducting hearings by 

video conference would ensure that 

such hearings maintain a fair process for 

the parties by, among other things, 

FINRA’s use of a high quality, secure 

and user-friendly video conferencing 

service and provision of thorough 

instructions, training and technical 

support to all hearing participants.8

According to FINRA, the changes were 

a reasonable interim solution to allow 

FINRA’s critical adjudicatory processes 

to continue to function while protecting 

the health and safety of hearing 

participants.9

Given that FINRA and OHO 

administer disciplinary hearings on the 

Exchange’s behalf pursuant to a 

regulatory services agreement 

(‘‘RSA’’),10 and that the public health 

concerns addressed by FINRA’s 

amendments applied equally to the 

Exchange’s disciplinary hearings, in 

2020 the Exchange also temporarily 

amended its disciplinary rules to allow 

virtual hearings.11 Both FINRA 12 and 

the Exchange 13 extended the temporary 

relief several times due to the 

continuing public health risks and 

logistical challenges related to COVID– 

19, including whether hearing 

participants could safely travel and 

abide by state or local quarantine 

requirements. The Exchange’s 

temporary amendments to Rules 9261 

and 9830 expired on April 30, 2023.14

Recently, the Commission approved 

FINRA’s proposal to make the 

temporary amendments regarding video 

conference hearings permanent, with 

some modifications, to permit the use of 

video conferences for reasons beyond 

COVID–19.15 Specifically, FINRA 

amended, among other rules, FINRA 

Rules 9261 and 9830 to extend OHO’s 

authority to order hearings by video 

conference to other similar situations in 

which proceeding in person could 

endanger the health or safety of the 

participant or alternatively would be 

impracticable (e.g., an uncommon 

situation or extraordinary circumstances 

such as a natural disaster or terrorist 

attack that caused travel to be cancelled 

for an extended period of time).16 As 

approved, OHO has discretion to 

determine whether the circumstances 

for a video hearing have been met and 

can act quickly if a future unexpected 

event impairs their ability to conduct inperson hearings safely.17 In addition, 

OHO also has authority to order 

hearings to occur by video conference 

based on a motion, which was not 

permitted under the previous temporary 

amendments to FINRA Rules 9261 and 

9830.18

As the FINRA Approval Order noted, 

FINRA represented that it will utilize 

the same protocols for conducting video 

conference hearings as those employed 

under the temporary amendments, 

including using a high quality, secure, 

user-friendly video conferencing service 

and providing thorough instructions, 

training, and technical support to all 

hearing participants.19 In addition, the 

FINRA Approval Order noted that, 

according to FINRA, the parties could 

file a joint motion requesting the 

hearing to occur, in whole or in part, by 

video conference based on a showing of 

good cause. In-person hearings, 

however, would remain the default 

method for conducting hearings.20

Further, as noted in the FINRA 

Approval Order, given the nature of 

evidentiary hearings,21 which often 

occur over multiple days and generally 

include numerous documents in 

evidence and witness testimony, 

motions for a hearing by video 

conference would need to be joined by 

all parties, and even joint motions could 

be denied if the adjudicator determines 

that good cause has not been shown.22

According to FINRA, OHO would have 

reasonable discretion based on a joint 

motion of the parties to exercise its 

authority to determine whether a 


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23See id. 

24See text accompanying note 16, supra. 

25See FINRA Approval Order, 88 FR at 51880. 

26See id. 

27See text accompanying notes 8 & 19, supra. 

28See FINRA Approval Order, 88 FR at 51882. 

29See id. 

30See Exchange Act Release No. 97403 (May 4, 

2023), 88 FR 28645 (May 4, 2023) (File No. SR– 

FINRA–2023–008) (Notice of Filing of a Proposed 

Rule Change To Amend FINRA Rules 1015, 9261, 

9341, 9524, 9830 and Funding Portal Rule 900 

(Code of Procedure) To Permit Hearings Under 

Those Rules To Be Conducted by Video 

Conference). 

31See id. 

32 15 U.S.C. 78f(b). 

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

34 15 U.S.C. 78f(b)(7) & 78f(d). 

hearing should occur by video 

conference under the proposed rule 

change.23 Moreover, in deciding 

whether to schedule a hearing by video 

conference, OHO could consider and 

balance a variety of factors including, 

for example and without limitation, a 

hearing participant’s individual health 

concerns and access to the connectivity 

and technology necessary to participate 

in a video conference hearing. 

Additionally, as noted above, OHO may 

consider whether a situation is 

uncommon or there are extraordinary 

circumstances.24

Finally, the FINRA Approval Order 

noted that for approximately two and a 

half years, while the temporary 

amendments were in effect, OHO 

successfully conducted numerous 

hearings by video conference using 

Zoom, a system which was vetted by 

FINRA’s information technology staff.25

FINRA stated that this use of video 

conference technology has been an 

effective and efficient alternative to inperson hearings.26

As discussed below, the Exchange 

proposes to delete the temporary rule 

text in Rule 9261 and Rule 9830 

permitting video conferences that 

expired earlier this year and replace it 

with rule text based on FINRA’s 

recently approved amendments to its 

Rules 9261 and 9830 permitting video 

conference hearings under specified 

conditions. 

Proposed Rule Change 

NYSE Rule 9261(b) provides that if a 

disciplinary hearing is held, a party 

shall be entitled to be heard in-person, 

by counsel, or by the party’s 

representative. Similarly, NYSE Rule 

9830 outlines the requirements for 

hearings for temporary and permanent 

cease and desist orders. NYSE Rule 

9830(a), however, does not specify that 

a party shall be entitled to be heard inperson, by counsel, or by the party’s 

representative. Consistent with FINRA’s 

temporary amendment to FINRA Rules 

9261 and 9830 that expired earlier this 

year, both NYSE rules temporarily 

granted the Chief or Deputy Chief 

Hearing Officer temporary authority to 

order, upon consideration of COVID–19- 

related public health risks presented by 

an in-person hearing, that a hearing 

under those rules be conducted by video 

conference. 

The Exchange proposes to delete the 

temporary amendments to Rules 9261 

and 9830 and conform these rules to 

FINRA Rules 9261 and 9830 as recently 

amended. The Exchange would add text 

to the rules permitting the Chief or 

Deputy Chief Hearing Officer to order 

the hearing to be conducted in whole or 

in part by video conference consistent 

with the FINRA Approval Order either 

based upon an assessment that 

proceeding in person may endanger the 

health or safety of the participants or 

would be impracticable or upon 

consideration of a joint motion of the 

parties for good cause shown. As noted, 

FINRA has adopted a detailed and 

thorough protocol to ensure that 

hearings conducted by video conference 

will maintain a fair process for the 

parties.27 Moreover, the proposed rule 

change would modernize existing 

procedures and allow parties who 

jointly prefer video conference to 

potentially save travel costs and time. 

As proposed, the use of video 

conferences would be limited and 

controlled, and in-person hearings 

would continue to be the default 

method for conducting hearings.28

Furthermore, the proposed rule includes 

procedural safeguards to ensure 

fairness, such as the requirement that 

for evidentiary hearings that any 

motions be joined by all parties and 

show good cause.29 The Exchange 

believes that this is a reasonable 

procedure to follow in hearings under 

Rules 9261 and 9830 chaired by a 

FINRA employee. 

To effectuate these changes, the 

Exchange proposes to add the following 

deletions (bracketed) and additions 

(italicized) to Rule 9261(b): 

If a hearing is held, a Party shall be entitled 

to be heard in person, by counsel, or by the 

Party’s representative. [Upon consideration 

of the current public health risks presented 

by an in-person hearing, the Chief Hearing 

Officer or Deputy Chief Hearing Officer may, 

on a temporary basis, determine that the 

hearing shall be conducted, in whole or in 

part, by video conference.]Upon a 

determination that proceeding in person may 

endanger the health or safety of the 

participants or would be impracticable, or 

upon consideration of a joint motion of the 

Parties for good cause shown, the Chief 

Hearing Officer or Deputy Chief Hearing 

Officer may, in the exercise of reasonable 

discretion, order the hearing to be conducted, 

in whole or in part, by video conference. 

The proposed text is identical to the 

language adopted by FINRA.30

Similarly, the Exchange proposes the 

following deletions and additions to 

Rule 9830(a): 

The hearing shall be held not later than 15 

days after service of the notice and filing 

initiating the temporary cease and desist 

proceeding, unless otherwise extended by the 

Chief Hearing Officer or Deputy Chief 

Hearing Officer for good cause shown. If a 

Hearing Officer or Hearing Panelist is recused 

or disqualified, the hearing shall be held not 

later than five days after a replacement 

Hearing Officer or Hearing Panelist is 

appointed. [Upon consideration of the 

current public health risks presented by an 

in-person hearing, the Chief Hearing Officer 

or Deputy Chief Hearing Officer may, on a 

temporary basis, determine that the hearing 

shall be conducted, in whole or in part, by 

video conference.]Upon a determination that 

proceeding in person may endanger the 

health or safety of the participants or would 

be impracticable, or upon consideration of a 

joint motion of the Parties for good cause 

shown, the Chief Hearing Officer or Deputy 

Chief Hearing Officer may, in the exercise of 

reasonable discretion, order the hearing to be 

conducted, in whole or in part, by video 

conference. 

Once again, the proposed language is 

identical to the language adopted by 

FINRA.31

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Act,32 in general, and furthers the 

objectives of Section 6(b)(5),33 in 

particular, because it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, to remove 

impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. Additionally, the 

Exchange believes the proposed rule 

change is designed to provide a fair 

procedure for the disciplining of 

members and persons associated with 

members, consistent with Sections 

6(b)(7) and 6(d) of the Act.34

The Exchange believes that the 

proposed rule changes support the 

objectives of the Act by harmonizing 

Exchange rules modeled on FINRA’s 

rules, resulting in less burdensome and 

more efficient regulatory compliance. 

As previously noted, the additional text 

proposed for Rule 9261 and Rule 9830 

is identical to the text in the counterpart 


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35See FINRA Approval Order, 88 FR at 51880. 

36See id. at 51881 & n. 36. 

37 15 U.S.C. 78f(b)(7) and 78f(d). 

38 15 U.S.C. 78s(b)(3)(A)(iii). 

39 17 CFR 240.19b–4(f)(6). 

40Rule 19b–4(f)(6)(iii) 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. 

41 17 CFR 240.19b–4(f)(6). 

42 17 CFR 240.19b–4(f)(6)(iii). 

43 15 U.S.C. 78s(b)(2)(B). 

FINRA rules. As such, the proposed rule 

change would facilitate rule 

harmonization among self-regulatory 

organizations with respect to the 

conduct of video conference hearings, 

thereby fostering cooperation and 

coordination with persons engaged in 

facilitating transactions in securities and 

will remove impediments to and perfect 

the mechanism of a free and open 

market and a national market system. 

The Exchange believes that the 

proposed rule change protects investors 

and the public interest by permitting the 

use of broadly available technology to 

allow hearings to proceed by video 

conference under certain circumstances. 

The Exchange’s disciplinary 

proceedings serve a critical role in 

providing investor protection and 

maintaining fair and orderly markets by, 

for example, sanctioning misconduct 

and preventing further customer harm 

by members and associated persons. 

The proposed rule change would 

encourage the prompt resolution of 

these cases while preserving fair 

process. The Exchange believes that this 

is especially important in matters where 

temporary and permanent cease and 

desist orders are sought because the 

proposed rule change would enable 

those hearings to proceed without delay, 

thereby enabling the Exchange to take 

immediate action to stop significant, 

ongoing customer harm, to the benefit of 

the investing public. 

The proposed rule change promotes 

efficiency by permitting hearings to 

occur by video conference in situations 

where the hearings would otherwise be 

postponed for an uncertain period of 

time. Moreover, as noted, FINRA will 

utilize the same protocols for 

conducting video conference hearings as 

those employed under the temporary 

amendments, including using a high 

quality, secure, user-friendly video 

conferencing service and providing 

thorough instructions, training, and 

technical support to all hearing 

participants.35 In addition, the Chief or 

Deputy Chief Hearing Officer may take 

into consideration, among other things, 

a hearing participant’s individual health 

concerns and access to the connectivity 

and technology necessary to participate 

in a video conference hearing.36

For the same reasons, the Exchange 

believes that the proposed changes are 

designed to provide a fair procedure for 

the disciplining of members and 

persons associated with members, 

consistent with Sections 6(b)(7) and 6(d) 

of the Act.37 The Exchange believes that 

the proposed rule change provides a fair 

procedure by allowing hearings to 

proceed by video conference not only 

due to public health or safety reasons 

but also at a party or the parties’ request 

for reasons particular to them. The Chief 

or Deputy Chief Hearing Officer could 

allow a hearing to proceed by video 

conference in the exercise of reasonable 

discretion and subject to procedural 

safeguards that ensure fairness, 

including the requirement that any 

motions be joined by all parties and 

show good cause. Overall, the proposed 

rule change represents a significant step 

toward modernizing disciplinary 

process procedures in a manner that 

preserves in-person hearings but allows 

for the use of video conference 

technology under certain circumstances. 

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 is rather 

intended solely to create permanent 

rules that would allow video conference 

hearings if OHO determines that 

proceeding in person may endanger the 

health or safety of the participants or 

would be impracticable, or where both 

parties prefer doing so and show good 

cause, thereby providing greater 

harmonization with approved FINRA 

rules. 

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 38 and Rule 

19b–4(f)(6) thereunder.39 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.40

A proposed rule change filed under 

Rule 19b–4(f)(6) 41 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),42 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. 

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) 43 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– 

NYSE–2023–47 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–2023–47. 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 


lotter on DSK11XQN23PROD with NOTICES1
86712 Federal Register / Vol. 88, No. 239 / Thursday, December 14, 2023 / Notices 

44 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed 

pricing changes on September 29, 2023 with an 

effective date of October 1, 2023 (SR–NASDAQ– 

2023–039). On November 15, 2023, the Exchange 

withdrew SR–NASDAQ–2023–039 and replaced 

with SR–NASDAQ–2023–047. The instant filing 

replaces SR–NASDAQ–2023–047, which was 

withdrawn on November 29, 2023. 

4The Exchange offers customers the opportunity 

to co-locate their servers and equipment within the 

Exchange’s primary data center, located in Carteret, 

New Jersey. 

5See Securities Exchange Act Release No. 61488 

(February 3, 2010), 75 FR 6748 (February 10, 2010) 

(SR–NASDAQ–2010–019). 

6NYSE provides a similar service for a $3,000 

initial charge plus a $400 monthly charge. See 

https://www.nyse.com/publicdocs/Wireless_

Connectivity_Fees_and_Charges.pdf. 

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–NYSE–2023–47 and should 

be submitted on or before January 4, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.44

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–27398 Filed 12–13–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99126; File No. SR– 

NASDAQ–2023–052] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Its 

GPS Antenna Fees at General 8, 

Section 1 

December 8, 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 

29, 2023, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III, below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

Exchange’s GPS antenna fees at General 

8, Section 1, as described further below. 

The text of the proposed rule change is 

available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, 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 

Exchange 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 

Exchange 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 3

The Exchange offers a GPS antenna, 

which allows co-location customers 4 to 

synchronize their time recording 

systems to the U.S. Government’s Global 

Positioning System (‘‘GPS’’) network 

time (the ‘‘Service’’). The Exchange 

proposes to modify its monthly fees for 

the Service at General 8, Section 1(d). 

GPS network time is the atomic time 

scale implemented by the atomic clocks 

in the GPS ground control stations and 

GPS satellites. Each GPS satellite 

contains multiple atomic clocks that 

contribute precise time data to the GPS 

signals. GPS receivers decode these 

signals, synchronizing the receivers to 

the atomic clocks. A GPS antenna serves 

as a time signal receiver and feeds a 

primary clock device the GPS network 

time using precise time data. Firms can 

use the precise time data provided by 

the GPS antenna to time-stamp 

transactional information. 

Time synchronization services are 

well established in the U.S. and utilized 

in many areas of the U.S. economy and 

infrastructure. The Service is not novel 

to the securities markets, or to the 

Exchange. 

The Exchange offers connectivity to a 

GPS antenna via two options, over 

shared infrastructure or a dedicated 

antenna. If a firm wishes to connect via 

a dedicated connection, it must supply 

the antenna hardware. 

The Exchange currently charges a 

monthly fee of $200 for the Service, 

which applies to both the shared 

infrastructure option and the dedicated 

antenna option. The Exchange proposes 

to increase the monthly fee to $600 for 

the Service, which would apply to both 

the shared infrastructure option and the 

dedicated antenna option. As such, the 

Exchange proposes to amend its fee 

schedule at General 8, Section 1(d) to 

reflect the increased monthly fee for the 

GPS antenna. The Exchange has not 

raised such price since the monthly fee 

of $200 was adopted in 2010.5 In 

addition, the Exchange charges a higher 

monthly fee of $350 for crossconnections to approved 

telecommunication carriers in the data 

center and for inter-cabinet connections 

to other co-location customers in the 

data center, despite the fact that the 

Service not only provides connectivity 

(like the cross-connections), but also 

provides data (i.e., the network time) to 

co-location customers. 

In addition, the Exchange’s fee 

schedule at General 8, Section 1(d) 

currently states that the installation fee 

for the GPS antenna is installation 

specific. The Exchange proposes to add 

specific installation amounts for the 

Service within the fee schedule, 

providing greater transparency to 

market participants. Specifically, the 

Exchange proposes to charge an 

installation fee of $900 for connectivity 

to a GPS antenna over shared 

infrastructure and $1,500 for 

connectivity to a GPS antenna over a 

dedicated antenna.6 The difference in 

installation costs reflects the differing 

levels of complexity. For the dedicated 

antenna option, installation involves 

installing an antenna on the roof 


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