Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices 51415 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 90088 

(October 5, 2020), 85 FR 64186 (October 9, 2020) 

(SR–NYSEArca–2020–85) (‘‘SR–NYSEArca–2020– 

85’’). 

5The Exchange may submit a separate rule filing 

to extend the expiration date of the proposed 

extension beyond December 31, 2021 if the 

Exchange requires additional temporary relief from 

the rule requirements identified in SR–NYSEArca– 

2020–85. The amended NYSE Arca rules will revert 

back to their original state at the conclusion of the 

temporary relief period and any extension thereof. 

6See Securities Exchange Act Release No. 85639 

(April 12, 2019), 84 FR 16346 (April 18, 2019) (SR– 

NYSEArca–2019–15) (‘‘2019 Notice’’). 

7See NYSE Arca Equities RB–19–060 & NYSE 

Arca Options RB–19–02 (April 26, 2019). 

8See 2019 Notice, 84 FR at 16365 & 16373–4. 

9See Securities Exchange Act Release No. 89737 

(September 2, 2020), 85 FR 55712 (September 9, 

2020) (SR–FINRA–2020–027) (‘‘SR–FINRA–2020– 

027’’). 

10See note 3, supra. 

11See Securities Exchange Act Release No. 90619 

(December 9, 2020), 85 FR 81250 (December 15, 

2020) (SR–FINRA–2020–042). 

12See Securities Exchange Act Release No. 90820 

(December 30, 2020), 86 FR 647 (January 6, 2021) 

(SR– NYSEArca–2020–116). 

13See Securities Exchange Act Release No. 91495 

(April 7, 2021), 86 FR 19306 (April 13, 2021) (SR– 

FINRA–2021–006). 

14See Securities Exchange Act Release No. 91633 

(April 22, 2021), 86 FR 22474 (April 28, 2021) (SR– 

NYSEArca–2021–27). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92909; File No. SR– 

NYSEARCA–2021–76] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Extending the Expiration 

Date of the Temporary Amendments to 

Rules 9261 and 9830 

September 9, 2021. 

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 August 

27, 2021, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ 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 self-regulatory 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 extending the 

expiration date of the temporary 

amendments to Rules 10.9261 and 

10.9830 as set forth in SR–NYSEArca– 

2020–85 from August 31, 2021, to 

December 31, 2021, in conformity with 

recent changes by the Financial Industry 

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

The proposed rule change would not 

make any changes to the text of NYSE 

Arca Rules 10.9261 and 10.9830. 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 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 extending the 

expiration date of the temporary 

amendments as set forth in SR– 

NYSEArca–2020–85 4 to Rules 10.9261 

(Evidence and Procedure in Hearing) 

and 10.9830 (Hearing) from August 31, 

2021, to December 31, 2021, to 

harmonize with recent changes by 

FINRA to extend the expiration date of 

the temporary amendments to its Rules 

9261 and 9830. SR–NYSEArca–2020–85 

temporarily granted to the Chief or 

Deputy Chief Hearing Officer the 

authority to order that hearings be 

conducted by video conference if 

warranted by public health risks posed 

by in-person hearings during the 

ongoing COVID–19 pandemic. The 

proposed rule change would not make 

any changes to the text of Exchange 

Rules 10.9261 and 10.9830.5

Background 

In 2019, NYSE Arca adopted 

disciplinary rules based on the text of 

the Rule 8000 and Rule 9000 Series of 

its affiliate NYSE American LLC 

(‘‘NYSE American’’), with certain 

changes. The NYSE American 

disciplinary rules are, in turn, 

substantially the same as the Rule 8000 

Series and Rule 9000 Series of FINRA 

and the New York Stock Exchange 

LLC.6 The NYSE Arca disciplinary rules 

were implemented on May 27, 2019.7

In adopting disciplinary rules 

modeled on FINRA’s rules, NYSE Arca 

adopted the hearing and evidentiary 

processes set forth in Rule 10.9261 and 

in Rule 10.9830 for hearings in matters 

involving temporary and permanent 

cease and desist orders under the Rule 

10.9800 Series. As adopted, the text of 

Rule 10.9261 and Rule 10.9830 are 

substantially the same as the FINRA 

rules with certain modifications.8

In response to the COVID–19 global 

health crisis and the corresponding 

need to restrict in-person activities, on 

August 31, 2020, FINRA filed with the 

Commission a proposed rule change for 

immediate effectiveness, SR–FINRA– 

2020–027, which allowed FINRA’s 

Office of Hearing Officers (‘‘OHO’’) to 

conduct hearings, on a temporary basis, 

by video conference, if warranted by the 

current COVID–19-related public health 

risks posed by an in-person hearing. 

Among the rules FINRA amended were 

Rules 9261 and 9830.9

Given that FINRA and OHO 

administers disciplinary hearings on the 

Exchange’s behalf, and that the public 

health concerns addressed by FINRA’s 

amendments apply equally to Exchange 

disciplinary hearings, on September 23, 

2020, the Exchange filed to temporarily 

amend Rule 10.9261 and Rule 10.9830 

to permit FINRA to conduct virtual 

hearings on its behalf.10 In December 

2020, FINRA filed a proposed rule 

change, SR–FINRA–2020–042, to extend 

the expiration date of the temporary 

amendments in SR–FINRA–2020–027 

from December 31, 2020, to April 30, 

2021.11 On December 22, 2020, the 

Exchange similarly filed to extend the 

temporary amendments to Rule 10.9261 

and Rule 10.9830 to April 30, 2021.12

On April 1, 2021, FINRA filed a 

proposed rule change, SR–FINRA– 

2021–006, to extend the expiration date 

of the temporary rule amendments to, 

among other rules, FINRA Rule 9261 

and 9830 from April 30, 2021, to August 

31, 2021.13 On April 20, 2021, the 

Exchange filed to extend the temporary 

amendments to Rule 10.9261 and Rule 

10.9830 to August 31, 2021, after which 

the temporary amendments will expire 

absent another proposed rule change 

filing by the Exchange.14

As outlined in detail below, while 

there are signs of improvement, based 

on FINRA’s assessment of current 

COVID–19 conditions and the lack of a 

clear timeframe for a sustained and 

widespread abatement of COVID–19- 

related health concerns and 


khammond on DSKJM1Z7X2PROD with NOTICES
51416 Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices 

15See Securities Exchange Act Release No. 92685 

(August 17, 2021), 86 FR 47169 (August 23, 2021) 

(SR–FINRA–2021–019) (‘‘SR–FINRA–2021–019’’). 

16See id. 

17See SR–FINRA–2020–027, 85 FR at 55715, n. 

28; SR–FINRA–2021–019, 86 FR at 47170, n. 13. 

18 15 U.S.C. 78f(b). 

19 15 U.S.C. 78f(b)(5). 

20 15 U.S.C. 78f(b)(7) & 78f(d). 21 15 U.S.C. 78f(b)(7) & 78f(d). 

corresponding restrictions, FINRA 

determined that there is a continued 

need for temporary relief for several 

months beyond August 31, 2021. On 

August 13, 2021, FINRA accordingly 

filed to extend the expiration date of the 

temporary rule amendments to, among 

other rules, FINRA Rule 9261 and 9830 

from August 31, 2021, to December 31, 

2021.15

Proposed Rule Change 

Consistent with FINRA’s recent 

proposal, the Exchange proposes to 

extend the expiration date of the 

temporary rule amendments to NYSE 

Arca Rules 10.9261 and 10.9830 as set 

forth in SR–NYSEArca–2020–85 from 

August 31, 2021, to December 31, 2021. 

As set forth in SR–FINRA 2021–019, 

while there are signs of improvement, 

much uncertainty remains for the 

coming months. The emergence of the 

Delta variant, dissimilar vaccination 

rates throughout the United States, and 

the uptick in transmissions in many 

locations indicate that COVID–19 

remains an active and real public health 

concern. Based on FINRA’s assessment 

of current COVID–19 conditions and the 

lack of a clear timeframe for a sustained 

and widespread abatement of COVID– 

19-related health concerns and 

corresponding restrictions, FINRA has 

determined that there is a continued 

need for this temporary relief for several 

months beyond August 31, 2021.16

FINRA accordingly proposed to extend 

the expiration date of the temporary rule 

amendments from August 31, 2021, to 

December 31, 2021. 

The Exchange proposes to similarly 

extend the expiration date of the 

temporary rule amendments to NYSE 

Arca Rules 10.9261 and 10.9830 as set 

forth in SR–NYSEArca–2020–85 from 

August 31, 2021, to December 31, 2021. 

The Exchange agrees with FINRA that 

much uncertainty remains for the 

coming months and that, based on the 

lack of a clear timeframe for a sustained 

and widespread abatement of COVID– 

19-related health concerns and 

corresponding restrictions as set forth in 

SR–FINRA–2021–019, there is a 

continued need for temporary relief for 

several months beyond August 31, 2021. 

The proposed change would permit 

OHO to continue to assess, based on 

critical COVID–19 data and criteria and 

the guidance of health and security 

consultants, whether an in-person 

hearing would compromise the health 

and safety of the hearing participants 

such that the hearing should proceed by 

video conference. As noted in SR– 

FINRA–2021–019, in deciding whether 

to schedule a hearing by video 

conference, OHO may consider a variety 

of other factors in addition to COVID– 

19 trends. In SR–FINRA–2020–027, 

FINRA provided a non-exhaustive list of 

other factors OHO may take into 

consideration, including a hearing 

participant’s individual health concerns 

and access to the connectivity and 

technology necessary to participate in a 

video conference hearing.17 The 

Exchange believes that this is a 

reasonable procedure to continue to 

follow for hearings under Rules 9261 

and 9830 chaired by a FINRA employee. 

As noted below, the Exchange 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 

after the date of the filing, so the 

Exchange can implement the proposed 

rule change immediately. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Act,18 in general, and furthers the 

objectives of Section 6(b)(5),19 in 

particular, because it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, 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. Additionally, the 

Exchange believes the proposed rule 

change is designed to provide a fair 

procedure for the disciplining of 

members and persons associated with 

members, consistent with Sections 

6(b)(7) and 6(d) of the Act.20

The Exchange believes that the 

proposed rule change supports the 

objectives of the Act by providing 

greater harmonization between 

Exchange rules and FINRA rules of 

similar purpose, resulting in less 

burdensome and more efficient 

regulatory compliance. As such, the 

proposed rule change will foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities and will 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system. 

The proposed rule change, which 

extends the expiration date of the 

temporary amendments to Exchange 

rules consistent with FINRA’s extension 

to its Rules 9261 and 9830 for four 

months as set forth in SR–FINRA–2021– 

019, will permit the Exchange to 

continue to effectively conduct hearings 

during the COVID–19 pandemic. As 

noted above and in SR–FINRA–2021– 

019, given the current and frequently 

changing COVID–19 conditions and the 

uncertainty around when those 

conditions will see meaningful, 

widespread and sustained 

improvement, without this relief 

allowing OHO to proceed by video 

conference, some or all hearings may 

have to be postponed. The ability to 

conduct hearings by video conference 

will permit the adjudicatory functions 

of the Exchange’s disciplinary rules to 

continue unabated, thereby avoiding 

protracted delays. The Exchange 

believes that this is especially important 

in matters where temporary and 

permanent cease and desist orders are 

sought because the proposed rule 

change would enable those hearings to 

continue to proceed without delay, 

thereby enabling the Exchange to 

continue to take immediate action to 

stop significant, ongoing customer 

harm, to the benefit of the investing 

public. 

As set forth in detail in the SR– 

NYSEArca–2020–85, the temporary 

relief to permit hearings to be conducted 

via video conference maintains fair 

process and will continue to provide 

fair process consistent with Sections 

6(b)(7) and 6(d) of the Act 21 while 

striking an appropriate balance between 

providing fair process and enabling the 

Exchange to fulfill its statutory 

obligations to protect investors and 

maintain fair and orderly markets while 

avoiding the COVID–19-related public 

health risks for hearing participants. 

The Exchange notes that this proposal, 

like, like SR–NYSEArca–2020–85, 

provides only temporary relief. As 

proposed, the changes would be in 

place through August 31, 2021. As 

noted in SR–NYSEArca–2020–85 and 

above, the amended rules will revert 

back to their original state at the 

conclusion of the temporary relief 

period and, if applicable, any extension 

thereof. 

Accordingly, the proposed rule 

change extending this temporary relief 

is in the public interest and consistent 

with the Act’s purpose. 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices 51417 

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

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

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

the Commission written notice of its intent to file 

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. 

24 17 CFR 240.19b–4(f)(6). 

25 17 CFR 240.19b–4(f)(6)(iii). 

26See supra Item II. 27See FINRA Filing, 86 FR at 47171 (noting the 

same in granting FINRA’s request to waive the 30- 

day operative delay so that SR–FINRA–2021–019 

would become operative immediately upon filing). 28See supra note 4. 29See supra note 5. As noted above, the Exchange 

states that if it requires temporary relief from the 

rule requirements identified in this proposal 

beyond December 31, 2021, it may submit a 

separate rule filing to extend the effectiveness of the 

temporary relief under these rules. 30For 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). 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed temporary rule change 

will impose any burden on competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act. 

The proposed rule change is not 

intended to address competitive issues 

but is rather intended solely to provide 

continued temporary relief given the 

impacts of the COVID–19 pandemic and 

the related health and safety risks of 

conducting in-person activities. The 

Exchange believes that the proposed 

rule change will prevent unnecessary 

impediments to critical adjudicatory 

processes and its ability to fulfill its 

statutory obligations to protect investors 

and maintain fair and orderly markets 

that would otherwise result if the 

temporary amendments were to expire 

on August 31, 2021. 

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 

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)(iii) of the Act 22 and 

subparagraph (f)(6) of Rule 19b–4 

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. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange has indicated that 

the proposed rule change to extend the 

expiration date will continue to prevent 

unnecessary impediments to its 

operations, including its critical 

adjudicatory processes, and its ability to 

fulfill its statutory obligations to protect 

investors and maintain fair and orderly 

markets that would otherwise result if 

the temporary amendments were to 

expire on August 31, 2021.26

Importantly, extending the relief 

provided in SR–NYSEArca–2020–85 

immediately upon filing and without a 

30-day operative delay will allow the 

Exchange to continue critical 

adjudicatory and review processes in a 

reasonable and fair manner and meet its 

critical investor protection goals, while 

also following best practices with 

respect to the health and safety of 

hearing participants.27 The Commission 

also notes that this proposal extends 

without change the temporary relief 

previously provided by SR–NYSEArca– 

2020–85.28 As proposed, the changes 

would be in place through December 31, 

2021 and the amended rules will revert 

back to their original state at the 

conclusion of the temporary relief 

period and, if applicable, any extension 

thereof.29 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.30

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– 

NYSEArca–2021–76 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–NYSEArca–2021–76. 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; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NYSEArca–2021–76 and should be 

submitted on or before October 6, 2021. 


khammond on DSKJM1Z7X2PROD with NOTICES
51418 Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices 

31 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 90085 

(October 2, 2020), 85 FR 63603 (October 8, 2020) 

(SR–NYSEAMER–2020–69) (‘‘SR–NYSEAMER– 

2020–69’’). 5The Exchange may submit a separate rule filing 

to extend the expiration date of the proposed 

extension beyond December 31, 2021 if the 

Exchange requires additional temporary relief from 

the rule requirements identified in NYSEAMER– 

SR–2020–69. The amended NYSE American rules 

will revert back to their original state at the 

conclusion of the temporary relief period and any 

extension thereof. 

6See Securities Exchange Act Release No. 77241 

(February 26, 2016), 81 FR 11311 (March 3, 2016) 

(SR–NYSEMKT–2016–30) (‘‘2016 Notice’’). 

7See NYSE MKT Information Memorandum 16– 

02 (March 14, 2016). 

8See 2016 Notice, 18 FR at 11327 & 11332. 

9See Securities Exchange Act Release No. 89737 

(September 2, 2020), 85 FR 55712 (September 9, 

2020) (SR–FINRA–2020–027) (‘‘SR–FINRA–2020– 

027’’). 

10See note 4, supra. 

11See Securities Exchange Act Release No. 90619 

(December 9, 2020), 85 FR 81250 (December 15, 

2020) (SR–FINRA–2020–042). 

12See Securities Exchange Act Release No. 90823 

(December 30, 2020), 86 FR 650 (January 6, 2021) 

(SR–NYSEAMER–2020–88). 

13See Securities Exchange Act Release No. 91495 

(April 7, 2021), 86 FR 19306 (April 13, 2021) (SR– 

FINRA–2021–006). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–19854 Filed 9–14–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92910; File No. SR– 

NYSEAMER–2021–37] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Extending the Expiration 

Date of the Temporary Amendments to 

Rules 9261 and 9830 

September 9, 2021. 

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 August 

27, 2021, NYSE American LLC (‘‘NYSE 

American’’ 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 self-regulatory 

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 extending the 

expiration date of the temporary 

amendments to Rules 9261 and 9830 as 

set forth in SR–NYSEAMER–2020–69 

from August 31, 2021, to December 31, 

2021, in conformity with recent changes 

by the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’). The 

proposed rule change would not make 

any changes to the text of NYSE 

American Rules 9261 and 9830. 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 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 extending the 

expiration date of the temporary 

amendments as set forth in SR– 

NYSEAMER–2020–69 4 to Rules 9261 

(Evidence and Procedure in Hearing) 

and 9830 (Hearing) from August 31, 

2021, to December 31, 2021 to 

harmonize with recent changes by 

FINRA to extend the expiration date of 

the temporary amendments to its Rules 

9261 and 9830. SR–NYSEAMER–2020– 

69 temporarily granted to the Chief or 

Deputy Chief Hearing Officer the 

authority to order that hearings be 

conducted by video conference if 

warranted by public health risks posed 

by in-person hearings during the 

ongoing COVID–19 pandemic. The 

proposed rule change would not make 

any changes to the text of Exchange 

Rules 9261 and 9830.5

Background 

In 2016, NYSE American (then known 

as NYSE MKT LLC) adopted 

disciplinary rules that are, with certain 

exceptions, substantially the same as the 

Rule 8000 Series and Rule 9000 Series 

of FINRA and its affiliate the New York 

Stock Exchange LLC (‘‘NYSE’’), and 

which set forth rules for conducting 

investigations and enforcement actions.6

The NYSE American disciplinary rules 

were implemented on April 15, 2016.7

In adopting disciplinary rules 

modeled on FINRA’s rules, NYSE 

American adopted the hearing and 

evidentiary processes set forth in Rule 

9261 and in Rule 9830 for hearings in 

matters involving temporary and 

permanent cease and desist orders 

under the Rule 9800 Series. As adopted, 

the text of Rule 9261 and Rule 9830 are 

substantially the same as the FINRA 

rules with certain modifications.8

In response to the COVID–19 global 

health crisis and the corresponding 

need to restrict in-person activities, on 

August 31, 2020, FINRA filed with the 

Commission a proposed rule change for 

immediate effectiveness, SR–FINRA– 

2020–027, which allowed FINRA’s 

Office of Hearing Officers (‘‘OHO’’) to 

conduct hearings, on a temporary basis, 

by video conference, if warranted by the 

current COVID–19-related public health 

risks posed by an in-person hearing. 

Among the rules FINRA amended were 

Rules 9261 and 9830.9

Given that FINRA and OHO 

administers disciplinary hearings on the 

Exchange’s behalf, and that the public 

health concerns addressed by FINRA’s 

amendments apply equally to Exchange 

disciplinary hearings, on September 15, 

2020, the Exchange filed to temporarily 

amend Rule 9261 and Rule 9830 to 

permit FINRA to conduct virtual 

hearings on its behalf.10 In December 

2020, FINRA filed a proposed rule 

change, SR–FINRA–2020–042, to extend 

the expiration date of the temporary 

amendments in SR–FINRA–2020–027 

from December 31, 2020, to April 30, 

2021.11 On December 22, 2020, the 

Exchange similarly filed to extend the 

temporary amendments to Rule 9261 

and Rule 9830 to April 30, 2021.12 On 

April 1, 2021, FINRA filed a proposed 

rule change, SR–FINRA–2021–006, to 

extend the expiration date of the 

temporary rule amendments to, among 

other rules, FINRA Rule 9261 and 9830 

from April 30, 2021, to August 31, 

2021.13 On April 20, 2021, the Exchange 

filed to extend the temporary 

amendments to Rule 9261 and Rule 

9830 to August 31, 2021, after which the 

temporary amendments will expire 


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