Federal Register / Vol. 86, No. 168 / Thursday, September 2, 2021 / Notices 49393 

61 Id. 

62 17 CFR 240.17Ad–22(e)(7). 

63 Id. 

64 17 CFR 240.17Ad–22(e)(21). 

65 Id. 

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

2 17 CFR 240.19b–4. 

repo trades into central clearing, the 

proposals in the Advance Notice would 

help to decrease the settlement and 

operational risk present when such 

trades are conducted outside of central 

clearing. The Sponsored GC Service 

would thereby contribute to the stability 

of the tri-party repo market. 

Furthermore, the Sponsored GC Service 

would enable FICC to centralize and 

control the liquidation of a greater 

number of tri-party repo transactions in 

the event of a member default, which in 

turn, would help protect the tri-party 

repo market against the destabilizing 

risk of a large-scale exit by institutional 

firms from the U.S. financial market in 

a stress scenario. Accordingly, the 

Commission believes that the proposed 

Sponsored GC Service would promote 

safety and soundness in the tri-party 

repo market, consistent with Section 

805(b) of the Act.61

Additionally, the Commission also 

believes that FICC’s proposal to change 

the CCLF allocation methodology is 

consistent with the principle of 

promoting robust risk management. As 

described above in Section II.C., FICC’s 

proposal to change the CCLF allocation 

methodology would not impact FICC’s 

current methodology for determining 

the total amount of the CCLF. As a 

result, FICC would retain its current 

level of liquid resources. FICC’s 

proposal would only change the 

allocation of CCLF obligations among 

FICC’s members. As described above in 

this Section III.A.1., FICC’s proposed 

CCLF allocation methodology would 

result in a CCLF obligation for each 

member that better corresponds to the 

actual liquidity risk each member’s 

trading activity presents to FICC. 

Accordingly, the Commission believes 

FICC’s proposed CCLF allocation 

methodology would promote robust risk 

management because it would better 

align the costs for a member to 

participate in FICC with the level of risk 

the member’s trading activity presents 

to FICC, while still maintaining the 

same overall level of liquidity resources 

at FICC. 

B. Consistency With Rule 17Ad–22(e)(7) 

Rule 17Ad–22(e)(7) under the 

Exchange Act requires a covered 

clearing agency to establish, implement, 

maintain, and enforce written policies 

and procedures reasonably designed to 

effectively measure, monitor, and 

manage the liquidity risk that arises in 

or is borne by the covered clearing 

agency.62 As described above in Section 

I.C.3., FICC proposes to change the 

Rules to allow netting, for CCLF 

allocation purposes, of offsetting 

positions in a Sponsoring Member’s 

omnibus account and netting account. 

FICC’s proposal would not impact 

FICC’s current methodology for 

determining the total amount of the 

CCLF as a liquidity resource. As 

discussed above in Section III.A.1., FICC 

proposes to change the Rules regarding 

CCLF allocation to ensure that a 

Sponsoring Member’s CCLF obligation 

aligns more closely with the actual 

liquidity risk its trading activity 

presents to FICC. As a result, FICC’s 

proposed CCLF allocation methodology 

represents more efficient liquidity risk 

management than the current 

methodology. Accordingly, the 

Commission believes that FICC’s 

proposed CCLF allocation methodology 

is consistent with Rule 17Ad–22(e)(7).63

C. Consistency With Rule 17Ad– 

22(e)(21) 

Rule 17Ad–22(e)(21) under the 

Exchange Act requires a covered 

clearing agency to establish, implement, 

maintain, and enforce written policies 

and procedures reasonably designed to 

be efficient and effective in meeting the 

requirements of its participants and the 

markets it serves, including the clearing 

agency’s clearing and settlement 

arrangements and the scope of products 

cleared or settled.64 As described above 

in Section I.B., FICC’s current 

Sponsored Service does not 

accommodate the trading of tri-party 

repos. FICC proposes to expand the 

Sponsored Service to allow tri-party 

repo trading to meet the needs of market 

participants that currently transact triparty term repos outside of central 

clearing because they are not 

operationally equipped to perform the 

collateral management and other 

functions associated with term DVP 

repos. By expanding the Sponsored 

Service to facilitate tri-party repo 

trading, FICC seeks to provide a viable 

option for its members to transact term 

tri-party repos in central clearing. 

Sponsored GC Trades would settle in a 

manner similar to the way Sponsoring 

Members and Sponsored Members 

currently settle tri-party repos with each 

other outside of central clearing, thereby 

making it more operationally efficient 

for the parties to transact term repos 

with each other using FICC as the CCP. 

The Commission believes that the 

proposed Sponsored GC Service is 

consistent with Rule 17Ad–22(e)(21) 65

because it is responsive to the requests 

from FICC’s members for the ability to 

trade centrally cleared term tri-party 

repos in a manner that is efficient and 

effective in meeting the operational 

requirements of FICC’s members. 

IV. Conclusion 

It is therefore noticed, pursuant to 

Section 806(e)(1)(I) of the Clearing 

Supervision Act, that the Commission 

does not object to Advance Notice (SR– 

FICC–2021–801) and that FICC is 

authorized to implement the proposed 

change as of the date of this notice or 

the date of an order by the Commission 

approving Proposed Rule Change SR– 

FICC–2021–003, whichever is later. 

By the Commission. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2021–18950 Filed 9–1–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92795; File Nos. SR–NYSE– 

2021–14, SR–NYSEAMER–2021–10, SR– 

NYSEArca–2021–13, SR–NYSECHX–2021– 

03, SR–NYSENAT–2021–04] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC, NYSE 

American LLC, NYSE Arca, Inc., NYSE 

Chicago, Inc., and NYSE National, Inc.; 

Notice of Designation of a Longer 

Period for Commission Action on 

Proceedings To Determine Whether To 

Approve or Disapprove Proposed Rule 

Changes To Amend the Schedule of 

Wireless Connectivity Fees and 

Charges To Add Circuits for 

Connectivity Into and Out of the Data 

Center in Mahwah, New Jersey 

August 27, 2021. 

On February 12, 2021, New York 

Stock Exchange LLC, NYSE American 

LLC, NYSE Arca, Inc., NYSE Chicago, 

Inc., and NYSE National, Inc. 

(collectively, the ‘‘Exchanges’’) each 

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 (1) add circuits for 

connectivity into and out of the data 

center in Mahwah, New Jersey 

(‘‘Mahwah Data Center’’); (2) add 

services available to customers of the 

Mahwah Data Center that are not 

colocation Users; and (3) change the 

name of the Fee Schedule to ‘‘Mahwah 

Wireless, Circuits, and Non-Colocation 

Connectivity Fee Schedule.’’ The 


lotter on DSK11XQN23PROD with NOTICES1
49394 Federal Register / Vol. 86, No. 168 / Thursday, September 2, 2021 / Notices 

3See Securities Exchange Act Release Nos. 91217 

(February 26, 2021), 86 FR 12715 (March 4, 2021) 

(SR–NYSE–2021–14); 91218 (February 26, 2021), 86 

FR 12744 (March 4, 2021) (SR–NYSEAMER–2021– 

10); 91216 (February 26, 2021), 86 FR 12735 (March 

4, 2021) (SR–NYSEArca–2021–13); 91219 (February 

26, 2021), 86 FR 12724 (March 4, 2021) (SR– 

NYSECHX–2021–03); and 91215 (February 26, 

2021), 86 FR 12752 (March 4, 2021) (SR– 

NYSENAT–2021–04) (collectively, the ‘‘Notices’’). 

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

5See Securities Exchange Act Release No. 91490 

(April 7, 2021), 86 FR 19313 (April 13, 2021). The 

Commission designated June 2, 2021, as the date by 

which it should approve, disapprove, or institute 

proceedings to determine whether to approve or 

disapprove the proposed rule changes. 

6See Securities Exchange Act Release No. 92033 

(May 26, 2021), 86 FR 29601 (June 2, 2021). 

7Comments received on the Notices are available 

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

www.sec.gov/comments/sr-nyse-2021-14/ 

srnyse202114.htm. 

8 15 U.S.C. 78s(b)(2). 

9See Notices, supra note 3. 

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4The MAP rules consist of Rules 1011 through 

1019, which reside under the Rule 1000 Series 

(Member Application and Associated Person 

Registration). 

5See Securities Exchange Act Release No. 90635 

(December 10, 2020), 85 FR 81540 (December 16, 

2020) (Order Approving File No. SR–FINRA–2020– 

011, as Modified by Amendment No. 1) (‘‘SEC 

Order’’). See also Regulatory Notice 21–09 (March 

2021) (announcing September 1, 2021, as the 

effective date of the amendments to the MAP rules, 

and different effective dates of the amendments to 

other FINRA rules to address brokers with a 

significant history of misconduct). 

6FINRA is separately developing comprehensive 

changes to the MAP rules in connection with the 

retrospective review of this rule set, which will also 

require conforming amendments to the 

standardized forms. See Regulatory Notice 18–23 

(July 2018) (requesting comment on a proposal 

regarding the MAP rules). 

7See Rule 1017(b)(2). 

proposed rule changes were published 

for comment in the Federal Register on 

March 4, 2021.3 On April 7, 2021, 

pursuant to Section 19(b)(2) of the Act,4

the Commission designated a longer 

period within which to either approve 

the proposed rule changes, disapprove 

the proposed rule changes, or institute 

proceedings to determine whether to 

approve or disapprove the proposed 

rule changes.5 On May 26, 2021, the 

Commission instituted proceedings to 

determine whether to approve or 

disapprove the proposed rule changes.6

The Commission has received comment 

letters on the proposed rule changes.7

Section 19(b)(2) of the Act 8 provides 

that, after initiating proceedings, the 

Commission shall issue an order 

approving or disapproving the proposed 

rule change not later than 180 days after 

the date of publication of notice of filing 

of the proposed rule change. The 

Commission may extend the period for 

issuing an order approving or 

disapproving the proposed rule change, 

however, by not more than 60 days if 

the Commission determines that a 

longer period is appropriate and 

publishes the reasons for such 

determination. The proposed rule 

changes were published for notice and 

comment in the Federal Register on 

March 4, 2021.9 August 31, 2021 is 180 

days from that date, and October 30, 

2021 is 240 days from that date. 

The Commission finds it appropriate 

to designate a longer period within 

which to issue an order approving or 

disapproving the proposed rule changes 

so that it has sufficient time to consider 

the proposed rule changes, the issues 

raised in the comment letter that has 

been submitted in connection therewith, 

and the Exchanges’ response to the 

comment letter. Accordingly, the 

Commission, pursuant to Section 

19(b)(2) of the Act,10 designates October 

30, 2021 as the date by which the 

Commission should either approve or 

disapprove the proposed rule changes 

(File Nos. SR–NYSE–2021–14, SR– 

NYSEAMER–2021–10, SR–NYSEArca– 

2021–13, SR–NYSECHX–2021–03, SR– 

NYSENAT–2021–04). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2021–18946 Filed 9–1–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92793; File No. SR-FINRA– 

2021–020] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Form CMA 

(Continuing Membership Application 

Form) 

August 27, 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 

20, 2021, 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 (1) amend 

Form CMA (Continuing Membership 

Application Form) required under Rule 

1017 (Application for Approval of 

Change in Ownership, Control, or 

Business Operations) to conform to 

amendments to the Membership 

Application Program (‘‘MAP’’) rules 4 as 

described in File No. SR–FINRA–2020– 

011, which become effective on 

September 1, 2021; 5 and (2) make nonsubstantive and technical changes to 

Form CMA.6 The proposed rule change 

does not make any changes to the text 

of FINRA rules. 

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 

Background 

The MAP rules require an applicant 

for continuing membership to file an 

application that includes a Form CMA.7

Form CMA is organized into sections 

that align with the standards for 

admission set forth in Rule 1014(a) 

(Standards for Admission). Each section 

begins with a description of the 

applicable standard in Rule 1014(a), 

followed by a series of questions related 

to that standard that are intended to 

help the applicant provide the 

responses needed to demonstrate that it 


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