Federal Register / Vol. 87, No. 17 / Wednesday, January 26, 2022 / Notices 4075 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f)(6). 

19 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. 93688 

(December 1, 2021), 86 FR 69319. Comments 

received on the proposal are available on the 

Commission’s website at: https://www.sec.gov/ 

comments/sr-cboebzx-2021-078/ 

srcboebzx2021078.htm. 

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

component of Rule 3110(c), the 

proposed rule change is intended to 

provide firms a temporary regulatory 

option to conduct inspections of offices 

and locations remotely during the 

second half of calendar year 2022. This 

temporary proposed supplementary 

material does not relieve firms from 

meeting the core regulatory obligation to 

establish and maintain a system to 

supervise the activities of each 

associated person that is reasonably 

designed to achieve compliance with 

applicable securities laws and 

regulations, and with applicable FINRA 

rules that directly serve investor 

protection. In a time when faced with 

ongoing challenges resulting from the 

COVID–19 pandemic and the emergence 

of new variants, FINRA believes that the 

proposed rule change provides sensibly 

tailored relief that will afford firms the 

ability to assess when and how to 

implement their work re-entry plans as 

measured against the health and safety 

of their personnel, while continuing to 

serve and promote the protection of 

investors and the public interest. 

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 potential 

economic impacts of Rule 3110.17 as 

described in File No. SR–FINRA–2020– 

040 continue to have applicability to the 

proposed rule change herein. The 

proposed rule change would extend the 

temporary relief to include calendar 

year 2022 inspection obligations 

through December 31, 2022 within the 

scope of the supplementary material 

without making substantive changes to 

the other aspects of the provision. 

FINRA believes that the proposed 

temporary extension would afford firms 

the time needed to determine when and 

how to effectively and safely implement 

their work re-entry plans, which must 

take into account multiple factors, 

including local health and safety 

conditions, without diminishing 

investor protection. 

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 17 and Rule 19b– 

4(f)(6) thereunder.18

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–2022–001 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–2022–001. 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 such 

filing also will be available for 

inspection and copying at the principal 

office of FINRA. 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–FINRA– 

2022–001 and should be submitted on 

or before February 16, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01467 Filed 1–25–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94010; File No. SRCboeBZX–2021–078] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change To Introduce a New Data 

Product To Be Known as the Short 

Volume Report 

January 20, 2022. 

On November 17, 2021, Cboe BZX 

Exchange, Inc. (‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘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 Exchange Rule 11.22(f) 

to introduce a new data product to be 

known as the Short Volume Report. The 

proposed rule change was published in 

the Federal Register on December 7, 

2021.3

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 


khammond on DSKJM1Z7X2PROD with NOTICES
4076 Federal Register / Vol. 87, No. 17 / Wednesday, January 26, 2022 / Notices 

5 Id. 

6 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3The full text of the proposed rule change and 

the exhibits filed by FINRA (collectively referred to 

as the ‘‘Proposal’’) are available at: https://

www.finra.org/sites/default/files/2021-05/sr-finra2021-010.pdf. 

4See Exchange Act Release No. 91937 (May 19, 

2021), 86 FR 28167 (‘‘Notice’’). 

5Comments received on the Notice are available 

at: https://www.sec.gov/comments/sr-finra-2021- 

010/srfinra2021010.htm. 

6See Extension No. 1, available at: https://

www.finra.org/sites/default/files/2021-06/SRFINRA-2021-010-extension1.pdf. 

7See Amendment No. 1 to the proposed rule 

change, dated August 9, 2021 (‘‘Amendment No. 

1’’). The full text of Amendment No. 1 is available 

on the Commission’s website at: https://

www.sec.gov/comments/sr-finra-2021-010/ 

srfinra2021010-9147461-247526.pdf. 

8See Notice of Filing of Amendment No. 1 and 

Order Instituting Proceedings to Determine Whether 

to Approve or Disapprove a Proposed Rule Change, 

as Modified by Amendment No. 1, to Amend the 

Requirements for Covered Agency Transactions 

under FINRA Rule 4210 (Margin Requirements) as 

Approved Pursuant to SR–FINRA–2015–036, 

Exchange Act Release No. 92713 (Aug. 20, 2021), 

86 FR 47655 (Aug. 26, 2021). 

9Comments received on the OIP are available on 

the Commission’s website at: https://www.sec.gov/ 

comments/sr-finra-2021-010/srfinra2021010.htm. 

10See Letter to Vanessa Countryman, Secretary, 

Commission, from Adam Arkel, Associate General 

Counsel, Office of General Counsel, FINRA (Sep. 

16, 2021) (‘‘FINRA Letter’’), available at: https://

www.sec.gov/comments/sr-finra-2021-010/ 

srfinra2021010-9244962-250787.pdf. 

11See Extension No. 2, available at https://

www.finra.org/sites/default/files/2021-10/sr-finra2021-010-extension2.pdf. 

12Covered Agency Transactions are: (1) To Be 

Announced (‘‘TBA’’) transactions, inclusive of 

adjustable rate mortgage (‘‘ARM’’) transactions; (2) 

Specified Pool Transactions; and (3) transactions in 

Collateralized Mortgage Obligations (‘‘CMOs’’), 

issued in conformity with a program of an agency 

or Government-Sponsored Enterprise (‘‘GSE’’), with 

forward settlement dates transactions’’). The 

proposed rule change would re-designate the 

current definition of Covered Agency Transactions, 

as set forth in paragraph (e)(2)(H)(i)c., as paragraph 

(e)(2)(H)(i)b., without any change. See Exhibit 5 to 

the Proposal. See also Notice, 86 FR 28161–62. 

13See Exchange Act Release No. 78081 (June 15, 

2016), 81 FR 40364 (June 21, 2016) (Notice of Filing 

of Amendment No. 3 and Order Granting 

Accelerated Approval to a Proposed Rule Change to 

Amend FINRA Rule 4210 (Margin Requirements) to 

Establish Margin Requirements for the TBA Market, 

as Modified by Amendment Nos. 1, 2, and 3; File 

No. SR–FINRA–2015–036) (approving SR–FINRA– 

2015–036, referred to as the ‘‘2016 Approval 

Order’’). The rule text as approved in the 2016 

Approval Order is referred to in this order as the 

‘‘current rule’’ or ‘‘original rulemaking.’’ The 

proposed rule change, as described in Section II.A. 

and B., is excerpted, in part, from the Notice, which 

was substantially prepared by FINRA. 

14The term ‘‘exempt account’’ is defined under 

FINRA Rule 4210(a)(13). Broadly, an exempt 

account means a FINRA member, non-FINRA 

member registered broker-dealer, account that is a 

‘‘designated account’’ under FINRA Rule 4210(a)(4) 

(specifically, a bank as defined under Exchange Act 

Section 3(a)(6), a savings association as defined 

under Section 3(b) of the Federal Deposit Insurance 

Act, the deposits of which are insured by the 

Federal Deposit Insurance Corporation, an 

insurance company as defined under Section 

2(a)(17) of the Investment Company Act, an 

investment company registered with the 

Commission under the Investment Company Act, a 

state or political subdivision thereof, or a pension 

plan or profit sharing plan subject to the Employee 

Retirement Income Security Act or of an agency of 

the United States or of a state or political 

subdivision thereof), and any person that has a net 

worth of at least $45 million and financial assets of 

at least $40 million for purposes of paragraphs 

(e)(2)(F), (e)(2)(G) and (e)(2)(H) of the rule, as set 

forth under paragraph (a)(13)(B)(i) of FINRA Rule 

4210, and meets specified conditions as set forth 

under paragraph (a)(13)(B)(ii). See Notice, 86 FR 

28163, n.18. 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding, or as to which the 

self-regulatory organization consents, 

the Commission will either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is January 21, 

2022. The Commission is extending this 

45-day time period. 

The Commission finds it appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change. 

Accordingly, the Commission, pursuant 

to Section 19(b)(2) of the Act,5

designates March 7, 2022 as the date by 

which the Commission shall either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

(File No. SR-CboeBZX–2021–078). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01458 Filed 1–25–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94013; File No. SR–FINRA– 

2021–010] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Granting 

Approval of a Proposed Rule Change, 

as Modified by Amendment No. 1, To 

Amend the Requirements for Covered 

Agency Transactions Under FINRA 

Rule 4210 (Margin Requirements) as 

Approved Pursuant to SR–FINRA– 

2015–036 

January 20, 2022. 

I. Introduction 

On May 7, 2021, the Financial 

Industry Regulatory Authority, Inc. 

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

Exchange Commission (‘‘Commission’’ 

or ‘‘SEC’’), 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 the requirements for 

covered agency transactions under 

FINRA Rule 4210.3 The proposed rule 

change was published for comment in 

the Federal Register on May 25, 2021.4

The Commission received comments in 

response to the Notice.5 On June 30, 

2021, FINRA extended 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 August 23, 2021.6 On 

August 9, 2021, FINRA responded to the 

comments and submitted Amendment 

No. 1 to the proposed rule change.7 The 

Commission subsequently issued an 

Order Instituting Proceedings (‘‘OIP’’) to 

determine whether to approve or 

disapprove the proposed rule change, as 

modified by Amendment No. 1.8 The 

Commission received additional 

comment letters in response to the OIP.9

On September 16, 2021, FINRA 

responded to these additional comment 

letters.10 On October 26, 2021, FINRA 

extended the time period in which the 

Commission must approve or 

disapprove the proposed rule change to 

January 20, 2022.11 This order approves 

the proposed rule change, as modified 

by Amendment No. 1. 

II. Description of the Proposed Rule 

Change 

A. Summary of Proposed Amendments 

FINRA has proposed revisions to the 

Covered Agency Transaction 12

requirements as approved pursuant to 

SR–FINRA–2015–036.13 Broadly, 

FINRA has proposed: 

• To eliminate the two percent 

maintenance margin requirement that 

applies to non-exempt 14 accounts 

pursuant to paragraph (e)(2)(H)(ii)e. 

under FINRA Rule 4210. This would 

eliminate the need for members to 

distinguish exempt account customers 

from other customers (‘‘non-exempt 

accounts’’) for purposes of Covered 

Agency Transaction margin. As such, 

without regard to a counterparty’s 

exempt or non-exempt account status, 

members would collect margin for each 

counterparty’s excess mark to market 

loss, as discussed in further detail 


khammond on DSKJM1Z7X2PROD with NOTICES