Federal Register / Vol. 86, No. 165 / Monday, August 30, 2021 / Notices 48455 

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

2 17 CFR 240.19b–4. 

3Nasdaq Rule 1050 (subsequently renumbered as 

General 9, Section 51) originally referred to NASD 

Rule 1120, Continuing Education Requirements. 

See Securities Exchange Act Release Nos. 58069 

(June 30, 3008), 73 FR 39360 (July 9, 2008) (SR– 

NASDAQ–2008–054) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

Regarding Technical and Conforming Changes to 

Nasdaq Rules); and 87778 (December 17, 2019), 84 

FR 70590 (December 23, 2019) (SR–NASDAQ– 

2019–098) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change To Relocate 

Rules From Its Current Rulebook Into Its New 

Rulebook Shell) (renumbering Nasdaq Rule 1050 as 

General 9, Section 51). The SEC approved the 

adoption of NASD Rule 1120 (Continuing 

Education Requirements) as new FINRA Rule 1250 

(Continuing Education Requirements) subject to 

certain amendments, effective on October 17, 2011. 

See Securities Exchange Act Release No. 64687 

(June 16, 2011); 76 FR 36586 (June 22, 2011) (SR– 

FINRA–2011–013) (Notice of Filing of Amendment 

No. 1 and Order Granting Accelerated Approval of 

a Proposed Rule Change, as Modified by 

Amendment No. 1, Establishing a Registration 

Category, Qualification Examination and 

Continuing Education Requirements for Certain 

Operations Personnel, and Adopt FINRA Rule 1250 

(Continuing Education Requirements) in the 

Consolidated FINRA Rulebook). See also note 5 

below. 

4FINRA Rule 1250 was renumbered as FINRA 

Rule 1240. See note 5 below. 

5See Securities Exchange Act Release No. 81098 

(July 7, 2017), 82 FR 32419 (July 13, 2017) (SR– 

FINRA–2017–007) (Order Approving Proposed Rule 

Change To Adopt Consolidated Registration Rules, 

Restructure the Representative-Level Qualification 

Examination Program, Allow Permissive 

Registration, Establish Exam Waiver Process for 

Persons Working for Financial Services Affiliate of 

Member, and Amend the Continuing Education 

Requirements). 

6 Id. 

7See Securities Exchange Act Release No. 84386 

(October 9, 2018), 83 FR 51988 (October 15, 2018) 

(SR–NASDAQ–2018–078) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

To Amend, Reorganize and Enhance Its 

Membership, Registration and Qualification Rules). 

8See note 5 above. 

9See note 7 above. 

10See note 3 above. 

11See notes 4 and 5 above. 

12See note 5 above. 

Seal; Filing Acceptance Date: August 24, 

2021; Filing Authority: 39 U.S.C. 3642, 

39 CFR 3040.130 through 3040.135, and 

39 CFR 3035.105; Public Representative: 

Kenneth R. Moeller; Comments Due: 

September 1, 2021. 

This Notice will be published in the 

Federal Register. 

Erica A. Barker, 

Secretary. 

[FR Doc. 2021–18624 Filed 8–27–21; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92738; File No. SR– 

NASDAQ–2021–064] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

General 9, Section 51, Research 

Analysts 

August 24, 2021. 

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 August 

12, 2021, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) 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 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 

General 9, Section 51, Research 

Analysts. 

The Exchange also proposes to amend 

General 9, Section 10, 

Recommendations to Customers 

(Suitability). 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, 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 

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 

General 9, Section 51, Research 

Analysts. Specifically, the Exchange 

proposes to (1) remove references to 

FINRA Rules 1120 3 and 1250;4 and (2) 

add references to FINRA Rules 1240 and 

1220(a)(6), (a)(14) and (b)(6). 

The Exchange also proposes to amend 

General 9, Section 10, 

Recommendations to Customers 

(Suitability). 

General 9, Section 51 

By way of background, FINRA 

previously deleted in their entirety the 

NASD Rule 1000 Series relating to 

registration of Principals and 

Representatives and adopted rules 

relating to qualification and registration 

requirements in the Consolidated 

FINRA Rulebook.5 In that rule change, 

FINRA Rule 1250 was renumbered to 

FINRA Rule 1240.6 FINRA Rule 1240 

describes continuing education 

requirements applicable to registered 

persons and consists of a Regulatory 

Element and a Firm Element. 

Nasdaq subsequently filed a rule 

change 7 to amend, reorganize and 

enhance certain of its corresponding 

membership, registration and 

qualification requirements rules in part 

in response to the FINRA Rule 

Changes,8 and also in order to facilitate 

the adoption of similar membership, 

registration and qualification rules by 

Nasdaq’s affiliated exchanges. In that 

rule change, Nasdaq amended its Rule 

1050 (now General 9, Section 51) to 

remove references to NASD Rules 2711, 

1050, 1022 and 1120 and it replaced 

those references with FINRA Rules 

1120, 1250, and 2241.9 The reference to 

FINRA Rule 1120 was in error because, 

at that time, FINRA Rule 1120 did not 

exist. NASD Rule 1120 was adopted as 

FINRA Rule 1250.10 Also, the references 

to FINRA Rule 1250 were in error 

because FINRA Rule 1250 was 

renumbered as FINRA Rule 1240.11 Of 

note, NASD Rules 1050 (Registration of 

Research Analysts) and 1022 (Categories 

of Principal Registrations) were 

superseded by the FINRA Rule 1200 

Series but this was not reflected within 

SR–FINRA–2018–078 [sic].12

At this time, Nasdaq proposes to 

remove the incorrect references to 

FINRA Rules 1120 and 1250 as such 

rules do not exist. The Exchange 

proposes to update the reference to 

FINRA Rule 1250 with a reference to 

current FINRA Rule 1240. The Exchange 

also proposes to add references to 

FINRA Rules 1220(a)(6), (a)(14), and 

(b)(6), because they correspond to 

previous NASD Rules 1050 and 1022. 

These changes would reflect the current 

FINRA rules relating to research 

analysts. 

The Exchange proposes to amend 

General 9, Section 10, 

Recommendations to Customers 


khammond on DSKJM1Z7X2PROD with NOTICES
48456 Federal Register / Vol. 86, No. 165 / Monday, August 30, 2021 / Notices 

13See Securities Exchange Act Release No. 64984 

(June 28, 2011), 76 FR 46870 (August 3, 2011) (SR– 

FINRA–2011–035) (Notice of Filing of Proposed 

Rule Change To Adopt FINRA Rules 2210 

(Communications With the Public), 2212 (Use of 

Investment Companies Rankings in Retail 

Communications), 2213 (Requirements for the Use 

of Bond Mutual Fund Volatility Ratings), 2214 

(Requirements for the Use of Investment Analysis 

Tools), 2215 (Communications With the Public 

Regarding Security Futures), and 2216 

(Communications With the Public About 

Collateralized Mortgage Obligations (CMOs)) in the 

Consolidated FINRA Rulebook). 

14 15 U.S.C. 78f(b). 

15 15 U.S.C. 78f(b)(5). 

16 15 U.S.C. 78s(b)(3)(A). 

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

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied this requirement. 18 17 CFR 200.30–3(a)(12). 

(Suitability), to update a citation within 

subparagraph (b)(3) to NASD Rule IM– 

2210–6. In 2011, FINRA replaced NASD 

IM–2210–6 with FINRA Rule 2214.13

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,14 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,15

in particular, in that it is designed to 

promote just and equitable principles of 

trade and to protect investors and the 

public interest. The Exchange’s proposal 

to remove inaccurate FINRA rule 

references from General 9, Section 51 

and replace them with references to 

current FINRA rules that apply to 

research analysts and [sic] is consistent 

with the Act. The Exchange’s proposal 

will align Nasdaq’s rule to FINRA rules. 

The Exchange’s proposal to amend 

General 9, Section 10, 

Recommendations to Customers 

(Suitability), to update a citation within 

subparagraph (b)(3) to NASD Rule IM– 

2210–6 is consistent with the Act. 

Replacing NASD IM–2210–6 with 

FINRA Rule 2214 will bring greater 

transparency to the correct FINRA rule. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed amendments do not impose an 

undue burden on competition as the 

proposal will amend the Exchange’s 

General 9, Section 51 to remove 

inaccurate FINRA rule references and 

replace them with references to current 

FINRA Rules that apply to research 

analysts. 

The Exchange’s proposal to amend 

General 9, Section 10, 

Recommendations to Customers 

(Suitability), to update a citation within 

subparagraph (b)(3) to NASD Rule IM– 

2210–6 does not impose an undue 

burden on competition. Replacing 

NASD IM–2210–6 with FINRA Rule 

2214 will bring greater transparency to 

the correct FINRA rule. 

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 16 and Rule 19b– 

4(f)(6) thereunder.17

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– 

NASDAQ–2021–064 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–NASDAQ–2021–064. 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–NASDAQ–2021–064 and 

should be submitted on or before 

September 20, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2021–18553 Filed 8–27–21; 8:45 am] 

BILLING CODE 8011–01–P 


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