Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 90131 

59 15 U.S.C. 78s(b)(3)(A)(ii). 

60 17 CFR 240.19b–4(f)(2). 

61 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). 

4The term ‘‘hearing’’ means the hearing on the 

merits of an arbitration under Rule 13600. See Rule 

13100(o). 

5See Rule 13606(a)(1). Recordings made pursuant 

to Rule 13606(a)(1) are provided to parties free of 

charge. 

19(b)(3)(A)(ii) of the Act 59 and Rule 

19b–4(f)(2) 60 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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

Phlx–2024–50 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–2024–50. 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–2024–50 and should be 

submitted on or before December 5, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.61

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–26409 Filed 11–13–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101561; File No. SR– 

FINRA–2024–018] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend FINRA Rule 

13606 (Record of Proceedings) To 

Provide Customers Access to a Copy 

of the Official Record of an 

Expungement Hearing 

November 7, 2024. 

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 

1, 2024, 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, II, and III 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 amend Rule 

13606 of the Code of Arbitration 

Procedure for Industry Disputes 

(‘‘Industry Code’’) to provide that the 

Director (‘‘Director’’) of FINRA Dispute 

Resolution Services (‘‘DRS’’) will 

provide a copy of the official record of 

an expungement hearing held pursuant 

to Rule 13805, and any transcription if 

the recording is transcribed, to any 

customers, upon request, who attend 

and participate in the expungement 

hearing, or who provide their position 

on the expungement request in writing. 

The proposed rule change would also 

amend Rule 12606 of the Code of 

Arbitration Procedure for Customer 

Disputes (‘‘Customer Code’’ and 

together with the Industry Code, 

‘‘Codes’’) and Rule 13606 to remove 

references to ‘‘tape’’ as a form of media 

that is used to record arbitration 

proceedings in the DRS arbitration 

forum. 

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 

Rule 13606 provides that the Director 

of DRS will make a tape, digital, or other 

recording of every hearing 4 and the 

Director will provide a copy of the 

recording to any party upon request.5 In 

addition, Rule 13606 provides that the 

panel may order the parties to provide 


ddrumheller on DSK120RN23PROD with NOTICES1
90132 Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 

6See Rule 13606(a)(2). Under the Codes, the term 

‘‘panel’’ means the arbitration panel, whether it 

consists of one or more arbitrators. See Rules 

12100(u) and 13100(s). Unless otherwise specified, 

this rule filing uses the term ‘‘panel’’ to mean either 

a panel or single arbitrator. 

7See Rule 13606(a)(2). The panel will determine 

which party or parties must pay the cost of making 

the transcription and copies. Id. 

8See Rule 13606(a)(3). 

9See Rule 13606(b)(1). 

10See supra note 9. 

11See Rule 13606(b)(1) and (2). 

12See Securities Exchange Act Release No. 97294 

(April 12, 2023), 88 FR 24282 (April 19, 2023) 

(Order Approving File No. SR–FINRA–2022–024). 

See also Regulatory Notice 23–12 (August 2023), 

https://www.finra.org/rules-guidance/notices/23-12. 

13See Rule 13805(b)(1)(B)(ii). 

14See Rule 13805(c)(3)(A). 

15See Rule 13805(c)(5)(A) through (D). 

16See Rule 13805(c)(3)(A). 

17See proposed Rule 13606(c). 

18See Rule 13805(c)(3)(A) and (B). 

19See Rule 13805(c)(3)(A). FINRA notes that the 

recent amendments to Rule 13805 also provide a 

mechanism for state securities regulators to attend 

and participate in expungement hearings in 

straight-in requests. See Rule 13805(c)(6). FINRA is 

not proposing to amend Rule 13606 to provide state 

securities regulators with a copy of the official 

record of an expungement hearing held pursuant to 

Rule 13805, or any transcription if the recording is 

transcribed, because state securities regulators can 

seek access to such records or transcriptions 

pursuant to their separate authority. 

20See proposed Rules 12606(a)(1) and (b)(1) and 

13606(a)(1) and (b)(1). 

21The proposed rule change would apply to all 

members, including members that are funding 

portals or have elected to be treated as capital 

acquisition brokers (‘‘CABs’’), given that the 

funding portal and CAB rule sets incorporate the 

impacted FINRA rules by reference. 

22 15 U.S.C. 78o–3(b)(6). 

a transcription of the recording.6 If the 

panel orders a transcription of the 

recording, then copies of the 

transcription must be provided to each 

arbitrator, served on each party, and 

filed with the Director of DRS.7 The 

recording made by the Director is the 

official record of the hearing, even if it 

is transcribed.8

Rule 13606 also provides that any 

party may make a stenographic record of 

a hearing.9 If a party makes a 

stenographic record, then the panel may 

determine in advance that the 

stenographic record will be the official 

record of the hearing,10 and if the panel 

makes that determination, then the 

Director will not make a recording of the 

hearing and a copy of the stenographic 

record must be provided to each 

arbitrator, served on each other party, 

and filed with the Director.11

Effective October 16, 2023, FINRA 

amended the Codes to modify the 

process relating to the expungement of 

customer dispute information.12 As part 

of these amendments, FINRA revised 

Rule 13805 relating to a request to 

expunge customer dispute information 

filed by an associated person separate 

from a customer arbitration (‘‘straight-in 

request’’), to make clear that any 

customer whose customer arbitration, 

civil litigation or customer complaint is 

a subject of the straight-in request must 

be provided with access to all 

documents relevant to the expungement 

request that are filed in the straight-in 

request.13 In addition, Rule 13805 

makes clear that customers are entitled 

to attend and participate in all aspects 

of the prehearing conferences and 

expungement hearing.14

If a customer chooses to attend and 

participate in the expungement hearing, 

the customer or the customer’s 

representative must be allowed to: (1) 

introduce evidence; (2) testify and call 

witnesses to testify; (3) state objections 

to evidence and cross-examine the party 

requesting expungement and any other 

witnesses called by the party requesting 

expungement; and (4) present opening 

and closing arguments if any party is 

permitted to do so.15 Customers may 

also provide their position on the 

expungement request in writing.16 The 

amendments do not, however, discuss 

the ability of customers to obtain a copy 

of the official record of the 

expungement hearing which is required 

to be made under Rule 13606. The 

amendments also do not discuss the 

ability of customers to obtain a copy of 

any transcription of the recording, if the 

panel orders the parties to provide a 

transcription under Rule 13606. 

If a customer attends and participates 

in an expungement hearing, or provides 

their position on the expungement 

request in writing, FINRA believes that 

the customer should also be able to 

obtain a copy of the official record of the 

hearing, and any transcription if the 

recording is transcribed. Allowing 

customers to obtain a copy of the official 

record or any transcription could 

provide such customers with greater 

assurance that the panel has considered 

all issues raised and enhance their 

understanding of the panel’s decision, 

which may increase confidence in the 

expungement process. 

Accordingly, FINRA is proposing to 

add new paragraph (c) to Rule 13606 to 

provide that the Director will provide a 

copy of the official record of an 

expungement hearing held pursuant to 

Rule 13805, and any transcription if the 

recording is transcribed, to any 

customers, upon request, who attend 

and participate in the expungement 

hearing, or who provide their position 

on the expungement request in 

writing.17 Although a non-party to the 

straight-in request, a customer may 

determine to attend and participate in 

the expungement hearing in person, by 

video conference, by telephone or by 

submitting their position on the 

expungement request in writing.18 Like 

parties to the proceeding, customers 

who attend or participate in 

expungement hearings have an interest 

in the hearing, and should be able to 

obtain a copy of the official record of the 

hearing and any transcription if the 

recording is transcribed. In addition, 

FINRA believes the proposed rule 

change is contemplated by the recent 

amendments to Rule 13805 which make 

clear that customers, although nonparties, can attend and participate in all 

aspects of expungement hearings under 

Rule 13805.19

FINRA is also proposing amendments 

to Rules 12606 and 13606 of the Codes 

to remove references to ‘‘tape.’’ 20 With 

the accessibility and convenience of 

advanced technology, tape recordings 

are no longer used to record hearings in 

the DRS arbitration forum. Thus, the 

proposed rule change would update the 

Codes to more accurately reflect the 

current practice of making digital or 

other recordings to record hearings in 

the DRS arbitration forum.21

FINRA has filed the proposed rule 

change for immediate effectiveness. The 

implementation date will be 30 days 

after the date of filing. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,22 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. 

FINRA believes that the proposed rule 

change will protect investors and the 

public interest because it will allow 

customers who determine to attend and 

participate in expungement hearings, or 

provide their position in writing, under 

Rule 13805, to obtain a copy of the 

official record of the hearing, and any 

transcription if the recording is 

transcribed, upon request. Although a 

non-party to the straight-in request, a 

customer may determine to attend and 

participate in the expungement hearing 

or submit their position on the 

expungement request in writing 

pursuant to Rule 13805(c)(3)(A). Thus, 

customers who attend and participate in 

the hearing, like the parties to the 

proceeding, have an interest in the 

proceeding and should be able to obtain 

a copy of the official record of the 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 90133 

23 15 U.S.C. 78s(b)(3)(A). 

24 17 CFR 240.19b–4(f)(6). 

25 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 100666 

(Aug. 7, 2024), 89 FR 65957 (‘‘Notice’’). 

4 15 U.S.C. 78s(b)(2). 

5See Securities Exchange Act Release No. 101157 

(Sept. 24, 2024), 89 FR 79678 (Sept. 30, 2024) 

(designating November 11, 2024, as the date by 

which the Commission shall either approve, 

disapprove, or institute proceedings to determine 

whether to disapprove the proposed rule change). 

hearing, and any transcription if the 

recording is transcribed. 

In addition, the proposed rule change 

will protect investors and the public 

interest by updating the Codes to more 

accurately reflect DRS’ current practice 

of making digital or other recordings to 

record hearings in the DRS arbitration 

forum. 

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. The 

proposed rule change would allow 

customers who attend and participate in 

expungement hearings, or provide their 

position in writing, under Rule 13805, 

to obtain a copy of the official record of 

the hearing that is required to be made 

under Rule 13606. The proposed rule 

change provides to non-party customers 

the potential benefits of having a copy 

of the official record that are currently 

available to parties to the dispute. These 

benefits may include greater assurance 

that arbitrators have considered all 

issues raised and enhance their 

understanding of the decision, which 

may increase confidence in the 

expungement process. FINRA does not 

anticipate an impact on its member 

firms or their associated persons. 

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 from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 23 and Rule 19b– 

4(f)(6) thereunder.24

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

FINRA–2024–018 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–2024–018. 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 such 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–2024–018 and 

should be submitted on or before 

December 5, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–26420 Filed 11–13–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101573; File No. SR– 

NYSEAMER–2024–45] 

Self-Regulatory Organizations; NYSE 

American LLC; Order Instituting 

Proceedings To Determine Whether To 

Approve or Disapprove a Proposed 

Rule Change To Amend Exchange 

Rule 915 To Permit the Listing and 

Trading of Options on the Bitwise 

Ethereum ETF, the Grayscale 

Ethereum Trust, the Grayscale 

Ethereum Mini Trust, and Any Trust 

That Holds Ether 

November 8, 2024. 

I. Introduction 

On July 23, 2024, NYSE American 

LLC (‘‘NYSE American’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’ or 

‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend Exchange Rule 915 to permit the 

listing and trading of options on the 

Bitwise Ethereum ETF, the Grayscale 

Ethereum Trust (ETH), the Grayscale 

Ethereum Mini Trust, and any trust that 

holds ether. The proposed rule change 

was published for comment in the 

Federal Register on August 13, 2024.3

The Commission has received no 

comments regarding the proposal. 

On September 24, 2024, pursuant to 

Section 19(b)(2) of the Exchange Act,4

the Commission designated a longer 

period within which to approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether to 

disapprove the proposed rule change.5

This order institutes proceedings under 


ddrumheller on DSK120RN23PROD with NOTICES1