Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices 16265 

26See SR–FINRA–2020–015, 85 FR at 31833; see 

also SR–FINRA–2020–027, 85 FR at 55712. 

27Any such proposed rule change to make an 

amended rule permanent would require notice and 

comment, as well as Commission approval, before 

becoming effective. See supra note 8. 

28For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule change’s impact on efficiency, 

competition, and capital formation. See 15 U.S.C. 

78c(f). 

29 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). 

conclusion of the temporary relief 

period unless, if applicable, there is any 

extension thereof,26 or, as FINRA notes 

in this filing, it proposes to make any 

amended rule permanent in connection 

with a separate proposed rule change 

filing.27 For these reasons, the 

Commission believes that waiver of the 

30-day operative delay for this proposal 

is consistent with the protection of 

investors and the public interest. 

Accordingly, the Commission hereby 

waives the 30-day operative delay and 

designates the proposal operative upon 

filing.28

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–2022–004 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–FINRA–2022–004. 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 (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– 

2022–004 and should be submitted on 

or before April 12, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–05981 Filed 3–21–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94428; File No. SR–FINRA– 

2022–005] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Extend the Pilot 

Period Related to FINRA Rule 6121.02 

(Market-Wide Circuit Breakers in NMS 

Stocks) 

March 16, 2022. 

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 March 10, 

2022, 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 and 

II 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 extend the 

pilot period related to FINRA Rule 

6121.02 (Market-wide Circuit Breakers 

in NMS Stocks) to the close of business 

on April 18, 2022. 

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 

FINRA proposes to extend the pilot 

related to the market-wide circuit 

breaker in Rule 6121.02 to the close of 

business on April 18, 2022. 

Background 

The Market-Wide Circuit Breaker 

(‘‘MWCB’’) rules, including FINRA Rule 

6121.02, provide an important, 

automatic mechanism that is invoked to 

promote stability and investor 

confidence during periods of significant 

stress when cash equities securities 

experience extreme market-wide 

declines. The MWCB rules are designed 

to slow the effects of extreme price 

declines through coordinated trading 

halts across both cash equity and equity 

options securities markets. 


lotter on DSK11XQN23PROD with NOTICES1
16266 Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices 

4See Securities Exchange Act Release No. 67090 

(May 31, 2012), 77 FR 33531 (June 6, 2012) (SR– 

BATS–2011–038; SR–BYX–2011–025; SR–BX– 

2011–068; SR–CBOE–2011–087; SR–C2–2011–024; 

SR–CHX–2011–30; SR–EDGA–2011–31; SR–EDGX– 

2011–30; SR–FINRA–2011–054; SR–ISE–2011–61; 

SR–NASDAQ–2011–131; SR–NSX–2011–11; SR– 

NYSE–2011–48; SR–NYSEAmex–2011–73; SR– 

NYSEArca–2011–68; SR–Phlx–2011–129) (‘‘Pilot 

Rules Approval Order’’). 

5The rules of the equity options exchanges 

similarly provide for a halt in trading if the cash 

equity exchanges invoke a MWCB Halt. See, e.g., 

NYSE Arca Rule 6.65–O(d)(4). 6See Securities Exchange Act Release No. 67091 

(May 31, 2012), 77 FR 33498 (June 6, 2012) (the 

‘‘Limit Up-Limit Down Release’’). The LULD Plan 

provides a mechanism to address extraordinary 

market volatility in individual securities. 

7See Securities Exchange Act Release Nos. 67090 

(May 31, 2012), 77 FR 33531 (June 6, 2012) (Order 

Approving File No. SR–FINRA–2011–054); and 

68778 (January 31, 2013), 78 FR 8668 (February 6, 

2013) (Notice of Filing and Immediate Effectiveness 

of File No. SR–FINRA–2013–011) (Proposed Rule 

Change to Delay the Operative Date of FINRA Rule 

6121.02). 

8See Securities Exchange Act Release No. 85623 

(April 11, 2019), 84 FR 16086 (April 17, 2019) 

(Order Approving the Eighteenth Amendment to 

the National Market System Plan To Address 

Extraordinary Market Volatility). 

9See Securities Exchange Act Release No. 85547 

(April 8, 2019), 84 FR 14981 (April 12, 2019) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2019–010). 

10See Securities Exchange Act Release No. 87078 

(September 24, 2019), 84 FR 51669 (September 30, 

2019) (Notice of Filing and Immediate Effectiveness 

of File No. SR–FINRA–2019–023). 

11See Securities Exchange Act Release No. 90160 

(October 13, 2020), 85 FR 67072 (October 21, 2020) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2020–033). 

12See Securities Exchange Act Release No. 93300 

(October 13, 2021), 86 FR 57867 (October 19, 2021) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2021–027). 

13See https://www.cmegroup.com/content/dam/ 

cmegroup/market-regulation/rule-filings/2020/9/20- 

392_1.pdf; https://www.cmegroup.com/content/ 

dam/cmegroup/market-regulation/rule-filings/2020/ 

9/20-392_2.pdf. 

14See Report of the Market-Wide Circuit Breaker 

(‘‘MWCB’’) Working Group Regarding the March 

2020 MWCB Events, submitted March 31, 2021 (the 

‘‘Study’’), available at https://www.nyse.com/ 

publicdocs/nyse/markets/nyse/Report_of_the_

Market-Wide_Circuit_Breaker_Working_Group.pdf. 

The cash equities rules governing 

MWCBs were first adopted in 1988 and, 

in 2012, FINRA and all U.S. cash equity 

exchanges amended their cash equities 

uniform rules on a pilot basis (the ‘‘Pilot 

Rules,’’ i.e., for FINRA, Rule 6121.02).4

The Pilot Rules currently provide for 

trading halts in all cash equity securities 

during a severe market decline as 

measured by a single-day decline in the 

S&P 500 Index (‘‘SPX’’).5 Under the 

Pilot Rules, a market-wide trading halt 

will be triggered if SPX declines in price 

by specified percentages from the prior 

day’s closing price of that index. The 

triggers are set at three circuit breaker 

thresholds: 7% (Level 1), 13% (Level 2), 

and 20% (Level 3). A market decline 

that triggers a Level 1 or Level 2 halt 

after 9:30 a.m. and before 3:25 p.m. 

would halt market-wide trading for 15 

minutes, while a similar market decline 

at or after 3:25 p.m. would not halt 

market-wide trading. (Level 1 and Level 

2 halts may occur only once a day.) A 

market decline that triggers a Level 3 

halt at any time during the trading day 

would halt market-wide trading for the 

remainder of the trading day. 

The Commission approved the Pilot 

Rules, the term of which was to 

coincide with the pilot period for the 

Plan to Address Extraordinary Market 

Volatility Pursuant to Rule 608 of 

Regulation NMS (the ‘‘LULD Plan’’),6

including any extensions to the pilot 

period for the LULD Plan.7 In April 

2019, the Commission approved an 

amendment to the LULD Plan for it to 

operate on a permanent, rather than 

pilot, basis.8 In conjunction with the 

proposal to make the LULD Plan 

permanent, FINRA amended Rule 

6121.02 to untie Rule 6121.02’s 

effectiveness from that of the LULD Plan 

and to extend Rule 6121.02’s 

effectiveness to the close of business on 

October 18, 2019.9 FINRA subsequently 

amended Rule 6121.02 to extend Rule 

6121.02’s effectiveness for an additional 

year to the close of business on October 

18, 2020,10 then until the close of 

business on October 18, 2021.11 Most 

recently, FINRA extended the pilot until 

the close of business on March 18, 

2022.12

FINRA now proposes to amend Rule 

6121.02 to extend the pilot to the close 

of business on April 18, 2022. This 

filing does not propose any substantive 

or additional changes to Rule 6121.02. 

The MWCB Task Force and the March 

2020 MWCB Events 

In late 2019, Commission staff 

requested the formation of a MWCB 

Task Force (‘‘Task Force’’) to evaluate 

the operation and design of the MWCB 

mechanism. The Task Force included 

representatives from the SROs, the 

Commission, CME, the Commodity 

Futures Trading Commission (‘‘CFTC’’) 

and the securities industry, and 

conducted several organizational 

meetings in December 2019 and January 

2020. 

In Spring 2020, the MWCB 

mechanism proved itself to be an 

effective tool for protecting markets 

through turbulent times. In March 2020, 

at the outset of the worldwide COVID– 

19 pandemic, U.S. equities markets 

experienced four MWCB Level 1 halts, 

on March 9, 12, 16, and 18, 2020. In 

each instance, the markets halted as 

intended upon a 7% drop in the S&P 

500 Index, and resumed as intended 15 

minutes later. 

In response to these events, in the 

Spring and Summer of 2020, the Task 

Force held ten meetings that were 

attended by Commission staff, with the 

goal of performing an expedited review 

of the March 2020 halts and identifying 

any areas where the MWCB mechanism 

had not worked properly. Given the risk 

of unintended consequences, the Task 

Force did not recommend changes that 

were not rooted in a noted deficiency. 

The Task Force recommended creating 

a process for a backup reference price in 

the event that SPX were to become 

unavailable, and enhancing functional 

MWCB testing. The Task Force also 

asked CME to consider modifying its 

rules to enter into a limit-down state in 

the futures pre-market after a 7% 

decline instead of 5%. CME made the 

requested change, which became 

effective on October 12, 2020.13

The MWCB Working Group’s Study 

On September 17, 2020, the Director 

of the Commission’s Division of Trading 

and Markets asked the SROs to conduct 

a more complete study of the design and 

operation of the Pilot Rules and the 

LULD Plan during the period of 

volatility in the Spring of 2020. 

In response to the request, the SROs 

created a MWCB ‘‘Working Group’’ 

composed of SRO representatives and 

industry advisers that included 

members of the advisory committees to 

both the LULD Plan and the NMS Plans 

governing the collection, consolidation, 

and dissemination of last-sale 

transaction reports and quotations in 

NMS Stocks. The Working Group met 

regularly from September 2020 through 

March 2021 to consider the 

Commission’s request, review data, and 

compile its study. The Working Group’s 

efforts in this respect incorporated and 

built on the work of an MWCB Task 

Force. 

The Working Group submitted its 

study to the Commission on March 31, 

2021 (the ‘‘Study’’).14 In addition to a 

timeline of the MWCB events in March 

2020, the Study includes a summary of 

the analysis and recommendations of 

the MWCB Task Force; an evaluation of 

the operation of the Pilot Rules during 

the March 2020 events; an evaluation of 

the design of the current MWCB system; 

and the Working Group’s conclusions 

and recommendations. 

In the Study, the Working Group 

concluded: (1) The MWCB mechanism 

set out in the Pilot Rules worked as 

intended during the March 2020 events; 

(2) the MWCB halts triggered in March 

2020 appear to have had the intended 

effect of calming volatility in the 

market, without causing harm; (3) the 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices 16267 

15See the Study, supra note 14, at 46. 

16See Securities Exchange Act Release No. 92428 

(July 16, 2021), 86 FR 38776 (July 22, 2021) (Notice 

of Filing File No. SR–NYSE–2021–40). 

17See Securities Exchange Act Release No. 

92785A (August 27, 2021), 86 FR 50202 (September 

7, 2021) (Notice of Designation of a Longer Period 

for Commission Action on File No. SR–NYSE– 

2021–40). 

18See Securities Exchange Act Release No. 93212 

(September 30, 2021), 86 FR 55066 (October 5, 

2021) (Order Instituting Proceedings to Determine 

Whether to Approve or Disapprove File No. SR– 

NYSE–2021–40). 

19See Securities Exchange Act Release No. 93933 

(January 7, 2022), 87 FR 2189 (January 13, 2022) 

(Notice of Designation of a Longer Period for 

Commission Action on Proceedings to Determine 

Whether to Approve or Disapprove File No. SR– 

NYSE–2021–40). 

20 15 U.S.C. 78o–3(b). 

21 15 U.S.C. 78o–3(b)(6). 

22 15 U.S.C. 78s(b)(3)(A)(iii). 

23 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4 requires a self-regulatory organization to give the 

Commission written notice of its intent to file a 

proposed rule change under that subsection at least 

five business days prior to the date of filing, or such 

shorter time as designated by the Commission. 

FINRA has fulfilled this requirement. 

24 17 CFR 240.19b–4(f)(6). 

25 17 CFR 240.19b–4(f)(6)(iii). 

design of the MWCB mechanism with 

respect to reference value (SPX), trigger 

levels (7%/13%/20%), and halt times 

(15 minutes) is appropriate; (4) the 

change implemented in Amendment 10 

to the Plan to Address Extraordinary 

Market Volatility (the ‘‘Limit Up/Limit 

Down Plan’’ or ‘‘LULD Plan’’) did not 

likely have any negative impact on 

MWCB functionality; and (5) no changes 

should be made to the mechanism to 

prevent the market from halting shortly 

after the opening of regular trading 

hours at 9:30 a.m. 

In light of the foregoing conclusions, 

the Working Group also made several 

recommendations, including that the 

Pilot Rules should be permanent 

without any changes.15

Proposal To Extend the Operation of the 

Pilot Rules Pending the Commission’s 

Consideration of the NYSE’s Filing To 

Make the Pilot Rules Permanent 

On July 16, 2021, the NYSE proposed 

a rule change to make the Pilot Rules 

permanent, consistent with the Working 

Group’s recommendations.16 On August 

27, 2021, the Commission extended its 

time to consider the NYSE’s proposed 

rule change to October 20, 2021.17 On 

September 30, 2021, the Commission 

instituted proceedings to determine 

whether to approve or disapprove the 

NYSE’s proposed rule change.18 On 

January 7, 2022, the Commission 

extended its time to act on the 

proceedings to determine whether to 

approve or disapprove the NYSE’s 

proposed rule change to March 19, 

2022.19 FINRA now proposes to extend 

the expiration date of FINRA Rule 

6121.02 to the end of business on April 

18, 2022 to provide additional time to 

permit FINRA to prepare a proposed 

rule change to make the market-wide 

circuit breaker pilot under Rule 6121.02 

permanent if the Commission approves 

the NYSE’s proposed rule change to 

make the Pilot Rules permanent. 

FINRA has filed the proposed rule 

change for immediate effectiveness and 

has requested that the SEC waive the 

requirement that the proposed rule 

change not become operative for 30 days 

from the date of filing, so that FINRA 

can implement the proposed rule 

change immediately. 

2. Statutory Basis 

FINRA believes that its proposal is 

consistent with Section 15A(b) of the 

Act,20 in general, and furthers the 

objectives of Section 15A(b)(6) of the 

Act,21 in particular, in that it is designed 

to promote just and equitable principles 

of trade, 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. The 

market-wide circuit breaker mechanism 

under Rule 6121.02 is an important, 

automatic mechanism that is invoked to 

promote stability and investor 

confidence during a period of 

significant stress when securities 

markets experience extreme broad-based 

declines. Extending the market-wide 

circuit breaker pilot under Rule 6121.02 

for an additional month would ensure 

the continued, uninterrupted operation 

of a consistent mechanism to halt 

trading across the U.S. markets while 

FINRA prepares a proposed rule change 

to make the market-wide circuit breaker 

pilot under Rule 6121.02 permanent if 

the Commission approves the NYSE’s 

proposed rule change to make the Pilot 

Rules permanent. 

FINRA also believes that the proposed 

rule change promotes just and equitable 

principles of trade in that it promotes 

transparency and uniformity across 

markets concerning when and how to 

halt trading in all stocks as a result of 

extraordinary market volatility. Based 

on the foregoing, FINRA believes the 

benefits to market participants under 

Rule 6121.02 should continue on a pilot 

basis because they will promote fair and 

orderly markets and protect 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 impose any 

burden on competition not necessary or 

appropriate in furtherance of the 

purposes of the Act because the 

proposal would ensure the continued, 

uninterrupted operation of a consistent 

mechanism to halt trading across the 

U.S. markets while FINRA prepares a 

proposed rule change to make the 

market-wide circuit breaker pilot under 

Rule 6121.02 permanent if the 

Commission approves the NYSE’s 

proposed rule change to make the Pilot 

Rules permanent. 

Further, FINRA understands that 

other SROs will file proposals to extend 

their rules regarding the market-wide 

circuit breaker pilot. Thus, the proposed 

rule change will help to ensure 

consistency across market centers 

without implicating any competitive 

issues. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or 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 22 and Rule 19b– 

4(f)(6)(iii) thereunder.23

A proposed rule change filed under 

Rule 19b–4(f)(6) 24 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),25 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. FINRA asked that the 

Commission waive the 30 day operative 

delay so that the proposal may become 

operative immediately upon filing. 

Extending the Pilot Rules’ effectiveness 

to the close of business on April 18, 

2022 will extend the protections 

provided by the Pilot Rules, which 

would otherwise expire in less than 30 

days. Waiver of the operative delay 

would therefore permit uninterrupted 

continuation of the MWCB pilot while 

the Commission reviews the NYSE’s 

proposed rule change to make the Pilot 

Rules permanent. Therefore, the 

Commission hereby waives the 30-day 


lotter on DSK11XQN23PROD with NOTICES1
16268 Federal Register / Vol. 87, No. 55 / Tuesday, March 22, 2022 / Notices 

26For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

27 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5Exchange Rules define a Member to mean any 

registered broker or dealer that has been admitted 

to membership in the Exchange. See Exchange Rule 

1.5(p). 

6See FINRA Rule 1210 (Registration 

Requirements) and 1240 (Continuing Education 

Requirements). 

7See Securities Exchange Act Release No. 34– 

93097 (September 21, 2021), 86 FR 53358 

(September 27, 2021) (Order Approving File No. 

SR–FINRA–2021–015) (the ‘‘Approval Order’’). 

operative delay and designates the 

proposed rule change as operative upon 

filing.26

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–2022–005 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–2022–005. 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. 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– 

2022–005 and should be submitted on 

or before April 12, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–05975 Filed 3–21–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94429; File No. SR–MEMX– 

2022–05] 

Self-Regulatory Organizations; MEMX 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change Related to Continuing 

Education Requirements 

March 16, 2022. 

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 March 10, 

2022, MEMX LLC (‘‘MEMX’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 3 and 

Rule 19b–4(f)(6) thereunder.4 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 is filing with the 

Commission a proposed rule change to 

amend Exchange Rule 2.5 (Restrictions). 

The proposed rule change is based on 

recent changes to continuing education 

requirements made by the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’), including a change to 

require that the Regulatory Element of 

continuing education be completed 

annually rather than every three years 

and to provide a path through 

continuing education for individuals to 

maintain their qualification following 

the termination of a registration. The 

text of the proposed rule change is 

provided in Exhibit 5. 

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 

Background 

The Exchange sets forth certain 

continuing education (‘‘CE’’) 

requirements for its ‘‘Members,’’ 5

including requirements to participate in 

the Regulatory Element of training, 

which are generally based on certain 

FINRA Rules.6 The Regulatory Element 

of CE is administered to industry 

participants by FINRA and focuses on 

regulatory requirements and industry 

standards. The Exchange has codified 

its general registration requirements 

under Interpretation and Policy .01 to 

Exchange Rule 2.5 (‘‘Rule 2.5.01’’) and 

its CE program, including 

implementation of the Regulatory 

Element under Interpretation and Policy 

.02 to Exchange Rule 2.5 (‘‘Rule 

2.5.02’’). The Exchange seeks to amend 

its rules to more closely mirror FINRA 

Rules, as amended.7 Consistent with 

this goal, the Exchange also seeks to 


lotter on DSK11XQN23PROD with NOTICES1