Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Notices 3479 

20 15 U.S.C. 78s(b)(3)(A). 

21 17 CFR 240.19b–4(f). 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Moreover, purchase of Historical Depth 

Data is optional. 

Finally, the Exchange believes the 

proposed rule change does not impose 

any burden on intermarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act. 

As previously discussed, similar 

products are offered by Nasdaq and 

NYSE. Moreover, the Commission has 

repeatedly expressed its preference for 

competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. Specifically, 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.’’ The 

fact that this market is competitive has 

also long been recognized by the courts. 

In NetCoalition v. Securities and 

Exchange Commission, the D.C. Circuit 

stated as follows: ‘‘[n]o one disputes 

that competition for order flow is 

‘fierce.’ . . . As the SEC explained, ‘[i]n 

the U.S. national market system, buyers 

and sellers of securities, and the brokerdealers that act as their order-routing 

agents, have a wide range of choices of 

where to route orders for execution’; 

[and] ‘no exchange can afford to take its 

market share percentages for granted’ 

because ‘no exchange possesses a 

monopoly, regulatory or otherwise, in 

the execution of order flow from broker 

dealers’. . . .’’. Accordingly, the 

Exchange does not believe its proposal 

imposes any burden on intermarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

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 20 and paragraph (f) of Rule 

19b–4 21 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 will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

CboeEDGX–2024–004 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–CboeEDGX–2024–004. 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–CboeEDGX–2024–004 and should be 

submitted on or before February 8, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–00923 Filed 1–17–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99338; File No. SR– 

NYSECHX–2023–25] 

Self-Regulatory Organizations; NYSE 

Chicago, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Its Schedule of 

Fees and Rebates 

January 12, 2024. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

29, 2023, NYSE Chicago, Inc. (‘‘NYSE 

Chicago’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, 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 its 

Schedule of Fees and Rebates (the ‘‘Fee 

Schedule’’) with respect to the system 

processing fee for the Central 

Registration Depository (‘‘CRD’’ or ‘‘CRD 

system’’) collected by the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’). The Exchange proposes to 

implement the fee change on January 2, 

2024. 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. 


khammond on DSKJM1Z7X2PROD with NOTICES
3480 Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Notices 

3CRD is the central licensing and registration 

system for the U.S. securities industry. The CRD 

system enables individuals and firms seeking 

registration with multiple states and self-regulatory 

organizations to do so by submitting a single form, 

fingerprint card, and a combined payment of fees 

to FINRA. Through the CRD system, FINRA 

maintains the qualification, employment, and 

disciplinary histories of registered associated 

persons of broker-dealers. 

4The Exchange originally adopted fees for use of 

the CRD system in in 2008 and amended those fees 

in 2013, 2022 and 2023. See Securities Exchange 

Act Release Nos. 57587 (March 31, 2008), 73 FR 

18598 (April 4, 2008) (SR–CHX–2007–21); 68647 

(January 14, 2013), 78 FR 4506 (January 22, 2013) 

(SR–CHX–2013–01); 93907 (January 5, 2022), 87 FR 

1468 (January 11, 2022) (SR–NYSECHX–2021–18); 

and 96683 (January 17, 2023), 88 FR 4065 (January 

23, 2013) (SR–NYSECHX–2023–01). While the 

Exchange lists these fees in its Fee Schedule, it does 

not collect or retain these fees. 

5See Securities Exchange Act Release No. 90176 

(October 14, 2020), 85 FR 66592 (October 20, 2020) 

(SR–FINRA–2020–032). 

6The Exchange notes that it has only adopted the 

CRD system fees charged by FINRA to Non-FINRA 

Participants when such fees are applicable. In this 

regard, certain FINRA CRD system fees and 

requirements are specific to FINRA members, but 

do not apply to NYSE Chicago-only Participants. 

Non-FINRA Participants have been charged CRD 

system fees since 2008. See note 4, supra. 

Participants that are also FINRA members are 

charged CRD system fees according to Section 4 of 

Schedule A to the FINRA By-Laws. 

7See Section (4)(b)(7) of Schedule A to the FINRA 

By-laws. 

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

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

10 15 U.S.C. 78f(b)(5). 11See 15 U.S.C. 78f(b)(8). 

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 

The Exchange proposes to amend the 

Fee Schedule with respect to the system 

processing fee for use of CRD collected 

by FINRA.3 The Exchange proposes to 

implement the fee changes effective 

January 2, 2024. 

FINRA collects and retains certain 

regulatory fees via CRD for the 

registration of associated persons of 

Exchange Participants that are not 

FINRA members (‘‘Non-FINRA 

Participants’’).4 CRD fees are user-based, 

and there is no distinction in the cost 

incurred by FINRA if the user is a 

FINRA member or a Non-FINRA 

Participant. 

In 2020, FINRA amended certain fees 

assessed for use of the CRD system for 

implementation between 2022 and 

2024.5 The Exchange accordingly 

proposes to amend the Fee Schedule to 

mirror the fees assessed by FINRA, 

which will be implemented 

concurrently with the amended FINRA 

fee as of January 2024.6 Specifically, the 

Exchange proposes to amend the Fee 

Schedule to modify the system 

processing fee charged to Participants 

that are not FINRA Members for each 

registered representative and principal 

from $45 to $70.7

The Exchange notes that the proposed 

change is not otherwise intended to 

address any other issues surrounding 

regulatory fees, and the Exchange is not 

aware of any problems that Participants 

would have in complying with the 

proposed change. 

1. 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 section 

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

it is designed to provide for the 

equitable allocation of reasonable dues, 

fees, and other charges. The Exchange 

also believes that the proposed rule 

change is consistent with section 6(b)(5) 

of the Act,10 in that it is designed to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

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 and is not designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes that the 

proposed fee change is reasonable 

because the fee will be identical to that 

adopted by FINRA as of January 2024 

for use of the CRD system to submit an 

initial or amended Form U4, Form U5 

or Form BD that includes the initial 

reporting, amendment, or certification 

of one or more disclosure events or 

proceedings and the posting to CRD 

each set of fingerprints submitted 

electronically to FINRA. The costs of 

operating and improving the CRD 

system are similarly borne by FINRA 

when a Non-FINRA Participant uses the 

CRD system; accordingly, the fees 

collected for such use should, as 

proposed by the Exchange, mirror the 

fees assessed to FINRA members. In 

addition, as FINRA noted in amending 

its fees, it believes that its proposed 

pricing structure is reasonable and 

correlates fees with the components that 

drive its regulatory costs to the extent 

feasible. The Exchange further believes 

that the change is reasonable because it 

will provide greater specificity 

regarding the CRD system fees that are 

applicable to Non-FINRA Participants. 

All similarly situated Participants are 

subject to the same fee structure, and 

every Participant must use the CRD 

system for registration and disclosure. 

Accordingly, the Exchange believes that 

the fees collected for such use should 

likewise increase in lockstep with the 

fees assessed to FINRA members, as 

proposed by the Exchange. 

The Exchange also believes that the 

proposed fee change provides for the 

equitable allocation of reasonable fees 

and other charges, and does not unfairly 

discriminate between customers, 

issuers, brokers, and dealers. The fee 

applies equally to all individuals and 

firms required to report information the 

CRD system, and the proposed change 

will result in the same regulatory fees 

being charged to all Participants 

required to report information to CRD 

and for services performed by FINRA 

regardless of whether such Participants 

are FINRA members. Accordingly, the 

Exchange believes that the fee collected 

for such use should increase in lockstep 

with the fee adopted by FINRA as of 

January 2024, as proposed by the 

Exchange. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

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

the Act,11 the Exchange believes that the 

proposed rule change would not impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Specifically, 

the Exchange believes that the proposed 

change will reflect fees that will be 

assessed by FINRA as of January 2024 

and will thus result in the same 

regulatory fees being charged to all 

Participants required to report 

information to the CRD system and for 

services performed by FINRA, 

regardless of whether or not such 

Participants are FINRA members. 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Notices 3481 

12 15 U.S.C. 78s(b)(3)(A)(ii). 

13 17 CFR 240.19b–4(f)(2). 

14 17 CFR 200.30–3(a)(12). 

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

2See 17 CFR 240.19b–4. 

3See Exchange Act Release No. 98703 (Oct. 6, 

2023), 88 FR 71051 (Oct. 13, 2023) (File No. SR– 

FINRA–2023–013) (‘‘Notice’’). 

4The comment letters are available at https://

www.sec.gov/comments/sr-finra-2023-013/ 

srfinra2023013.htm. 

5See letter from Kristine Vo, Assistant General 

Counsel, FINRA, to Lourdes Gonzalez, Assistant 

Chief Counsel, Division of Trading and Markets, 

Commission, dated November 9, 2023. This letter 

is available at https://www.finra.org/sites/default/ 

files/2023-11/SR-FINRA-2023-013- 

ExtensionNo1.pdf. 

6See letter from Kristine Vo, Assistant General 

Counsel, Office of General Counsel, FINRA, to 

Vanessa Countryman, Secretary, Commission, dated 

January 8, 2024 (‘‘FINRA Response’’). 

7See FINRA Rules 12208, 13208, and 14106. 

8Notice at 71051. 

9 Id. 

10 Id. at 71051–52. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

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 12 and Rule 

19b–4(f)(2) 13 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 

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– 

NYSECHX–2023–25 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–NYSECHX–2023–25. 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 

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–NYSECHX–2023–25 and should be 

submitted on or before February 8, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–00919 Filed 1–17–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99335; File No. SR–FINRA– 

2023–013] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Approving a 

Proposed Rule Change To Amend the 

FINRA Codes of Arbitration Procedure 

and Code of Mediation Procedure To 

Revise and Restate the Qualifications 

for Representatives in Arbitrations and 

Mediations 

January 11, 2024. 

I. Introduction 

On October 5, 2023, the Financial 

Industry Regulatory Authority, Inc. 

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

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend the FINRA Code of Arbitration 

Procedure for Customer Disputes 

(‘‘Customer Code’’), the Code of 

Arbitration Procedure for Industry 

Disputes (‘‘Industry Code’’), and the 

Code of Mediation Procedure 

(‘‘Mediation Code’’) (collectively, the 

‘‘Codes’’), to revise and restate the 

qualifications for representatives in 

arbitrations and mediations in the forum 

administered by FINRA Dispute 

Resolution Services (‘‘DRS’’). 

The proposed rule change was 

published for public comment in the 

Federal Register on October 13, 2023.3

The public comment period closed on 

November 3, 2023. The Commission 

received comment letters related to this 

filing.4 On November 9, 2023, FINRA 

consented to an extension of the time 

period in which the Commission must 

approve the proposed rule change, 

disapprove the proposed rule change, or 

institute proceedings to determine 

whether to approve or disapprove the 

proposed rule change to January 11, 

2024.5 On January 8, 2024, FINRA 

responded to the comment letters 

received in response to the Notice.6 This 

order approves the proposed rule 

change. 

II. Description of the Proposed Rule 

Change 

A. Background 

The Codes currently permit parties to 

arbitrations and mediations in the DRS 

forum to represent themselves, to be 

represented by an attorney at law in 

good standing, or to be represented by 

a non-attorney representative (‘‘NAR’’).7

Some NARs receive compensation in 

connection with their representation of 

parties (‘‘compensated NARs’’).8 Other 

NARs assist parties with their cases 

without compensation 

(‘‘uncompensated NARs’’).9 In addition, 

although the practice is not specifically 

addressed by the Codes, law students 

sometimes represent parties while 

practicing under the supervision of an 

attorney through securities arbitration 

clinics (‘‘SACs’’).10


khammond on DSKJM1Z7X2PROD with NOTICES