1468 Federal Register / Vol. 87, No. 7 / Tuesday, January 11, 2022 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The CRD system 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 selfregulatory 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. 

5The Exchange originally adopted fees for use of 

the CRD system in 2008 and amended those fees in 

2013. 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). While the Exchange lists these fees in its 

Price List, it does not collect or retain these fees. 

6See Securities Exchange Act Release No. 90176 

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

(SR–FINRA–2020–032). 

7The 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 5, supra. 

Participants that are also FINRA members are 

charged CRD system fees according to Section 4 of 

Schedule A to the FINRA By-Laws. 

8See Section 4(b)(1) of Schedule A to the FINRA 

By-Laws effective on January 2, 2022. This fee is 

assessed when a Non-FINRA Participant submits an 

initial Uniform Application for Securities Industry 

Regulation or Transfer (known as a ‘‘Form U4’’) 

filed by a member in the CRD system to register an 

individual. 

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

10 15 U.S.C. 78f(b)(4) & (5). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–93907; File No. SR– 

NYSECHX–2021–18] 

Self-Regulatory Organizations; NYSE 

Chicago, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Its Schedule of 

Fees and Rebates With Respect to a 

Regulatory Fee Related to the Central 

Registration Depository 

January 5, 2022. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b-4 thereunder,3

notice is hereby given that, on December 

22, 2021 the 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 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 amend its 

Schedule of Fees and Rebates (the ‘‘Fee 

Schedule’’) with respect to a regulatory 

fee related to the Central Registration 

Depository (‘‘CRD system’’), which is 

collected by the Financial Industry 

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

The Exchange proposes to implement 

the fee change on January 2, 2022. 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

Price List with respect to a regulatory 

fee collected by FINRA for use of the 

CRD system.4 The Exchange proposes to 

implement the fee change on January 2, 

2022. 

FINRA collects and retains certain 

regulatory fees via the CRD system for 

the registration of associated persons of 

Participants that are not FINRA 

members (‘‘Non-FINRA Participants’’).5

The CRD system 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. 

FINRA recently amended one of the 

fees assessed for use of the CRD 

system.6 Accordingly, the Exchange 

proposes to amend the Price List to 

mirror the fee assessed by FINRA, 

which will be implemented 

concurrently with the amended FINRA 

fee on January 2, 2022.7 Specifically, the 

Exchange proposes to amend the Price 

List to modify the fee charged to NonFINRA Participants for each initial Form 

U4 filed for the registration of a 

representative or principal from $100 to 

$125.8

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. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,9 in general, and 

furthers the objectives of Sections 

6(b)(4) and 6(b)(5),10 in particular, 

because it provides for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members, 

issuers, and other persons using its 

facilities and does not unfairly 

discriminate between customers, 

issuers, brokers, or dealers. 

The Exchange believes that the 

proposed fee change is reasonable 

because the fee will be identical to that 

adopted by FINRA as of January 2, 2022 

for use of the CRD system to submit a 

Form U4. 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 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 to 

the CRD system, and the proposed 

change will result in the same 

regulatory fee being charged to all 

Participants required to report 

information to the CRD system 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 2, 

2022, as is proposed by the Exchange. 

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 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 87, No. 7 / Tuesday, January 11, 2022 / Notices 1469 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(2). 

13 15 U.S.C. 78s(b)(2)(B). 14 17 CFR 200.30–3(a)(12). 

of the purposes of the Act. Specifically, 

the Exchange believes that the proposed 

change will reflect the fee that will be 

assessed by FINRA for Form U4 filings 

as of January 2, 2022 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. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 11 of the Act and 

subparagraph (f)(2) of Rule 19b–4 12

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 13 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSECHX–2021–18 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–2021–18. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

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

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

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

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–NYSECHX–2021–18 and 

should be submitted on or before 

February 1, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–00268 Filed 1–10–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–517, OMB Control No. 

3235–0575] 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Extension: 

Regulation AC 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the previously approved 

collection of information provided for in 

Regulation Analyst Certification 

(‘‘Regulation AC’’) (17 CFR 242.500– 

505), under the Securities Exchange Act 

of 1934 (15 U.S.C. 78a et seq.). 

Regulation AC requires that research 

reports published, circulated, or 

provided by a broker or dealer or 

covered person contain a statement 

attesting that the views expressed in 

each research report accurately reflect 

the analyst’s personal views and 

whether or not the research analyst 

received or will receive any 

compensation in connection with the 

views or recommendations expressed in 

the research report. Regulation AC also 

requires broker-dealers to, on a quarterly 

basis, make, keep, and maintain records 

of research analyst statements regarding 

whether the views expressed in public 

appearances accurately reflected the 

analyst’s personal views, and whether 

any part of the analyst’s compensation 

is related to the specific 

recommendations or views expressed in 

the public appearance. Regulation AC 

also requires that research prepared by 

foreign persons be presented to U.S. 

persons pursuant to Securities Exchange 

Act Rule 15a–6 and that broker-dealers 

notify associated persons if they would 

be covered by the regulation. Regulation 

AC excludes the news media from its 

coverage. 

The collections of information under 

Regulation AC are necessary to provide 

investors with information with which 

to determine the value of the research 

available to them. It is important for an 

investor to know whether an analyst 

may be biased with respect to securities 

or issuers that are the subject of a 

research report. Further, in evaluating a 

research report, it is reasonable for an 

investor to want to know about an 

analyst’s compensation. Without the 

information collection, the purposes of 

Regulation AC could not be met. This 

regulation does not involve the 

collection of confidential information. 

The Commission estimates that 

Regulation AC imposes an aggregate 

annual time burden of approximately 

40,806 hours. The Commission 

estimates that the total annual internal 

cost of compliance for the 40,806 hours 

is approximately $20,923,582. 


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