Federal Register / Vol. 86, No. 177 / Thursday, September 16, 2021 / Notices 51705 

1 15 U.S.C. 78mm(a)(1). 

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

3See Letter from Angela S. Dunn, Principal 

Associate General Counsel, Nasdaq, to J. Matthew 

DeLesDernier, Assistant Secretary, Commission, 

dated June 14, 2021 (‘‘Exemptive Request’’). 

4See Securities Exchange Act Release Nos. 92242 

(June 23, 2021), 86 FR 34286 (June 29, 2021) (SR– 

NASDAQ–2021–051); 92243 (June 23, 2021), 86 FR 

34288 (June 29, 2021) (SR–BX–2021–029). Although 

the proposed rule changes were filed pursuant to 

Section 19(b)(3)(A) of the Exchange Act, and 

thereby became immediately effective upon filing 

with the Commission, the Exchanges stipulated in 

the proposed rule changes that the proposals would 

not be operative until the Commission grants this 

Exemptive Request. 

5 17 CFR 240.0–12. 

6See Exemptive Request, supra note 3, at 2. 

7See id. 

8See id. at 2, n.7. The Exchanges also state that 

they are not ‘‘cherry picking’’ because the 

Exchanges would be incorporating the entire FINRA 

Rule 5250, and the definition of ‘‘affiliate’’ is 

explicitly cross-referenced within FINRA Rule 

5250. See id. 

9See id. at 2–3. The Exchanges represent that 

they will provide such notice via a posting on the 

same website location where the Exchanges post 

their own rule filings pursuant to Rule 19b–4(1) 

within the time frame required by such rule. See id. 

at 3, n.8. The website posting will include a link 

to the location on FINRA’s website where the 

applicable proposed rule change is posted. See id. 

10See id. at 3. 

11See id. 

12See id. at 2. 

13See, e.g., Securities Exchange Act Release Nos. 

83296 (May 21, 2018), 83 FR 24362 (May 25, 2018) 

(order granting NYSE National, Inc.’s exemptive 

request relating to rules of FINRA incorporated by 

reference); 83040 (April 12, 2018), 83 FR 17198 

(April 18, 2018) (order granting MIAX PEARL, 

LLC’s exemptive request relating to rules of the 

Miami International Securities Exchange, LLC 

incorporated by reference); 76998 (January 29, 

2016), 81 FR 6066, 6083–84 (February 4, 2016) 

(order granting application for registration as a 

national securities exchange of ISE Mercury, LLC 

and exemptive request relating to rules of certain 

self-regulatory organizations (‘‘SROs’’) (including 

FINRA) incorporated by reference); 61534 (February 

18, 2010), 75 FR 8760 (February 25, 2010) (order 

granting BATS Exchange, Inc.’s exemptive request 

relating to rules incorporated by reference by the 

BATS Exchange Options Market rules) (‘‘BATS 

Options Market Order’’); 61152 (December 10, 

2009), 74 FR 66699, 66709–10 (December 16, 2009) 

(order granting application for registration as a 

national securities exchange of C2 Options 

Exchange, Incorporated and exemptive request 

relating to rules of the Chicago Board Options 

Exchange, Incorporated, incorporated by reference). 

14See 17 CFR 240.0–12 and Securities Exchange 

Act Release No. 39624 (February 5, 1998), 63 FR 

8101 (February 18, 1998) (Commission Procedures 

for Filing Applications for Orders for Exemptive 

Relief Pursuant to Section 36 of the Exchange Act; 

Final Rule). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92934] 

Order Granting Application by The 

Nasdaq Stock Market LLC and Nasdaq 

BX, Inc. for an Exemption Pursuant to 

Section 36(a) of the Exchange Act 

From the Rule Filing Requirements of 

Section 19(b) of the Exchange Act With 

Respect to Certain Rules Incorporated 

by Reference 

September 10, 2021. 

The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’) and Nasdaq BX, Inc. (‘‘BX’’ 

and together with Nasdaq, the 

‘‘Exchanges’’) have filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) an application for an 

exemption under Section 36(a)(1) of the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’) 1 from the rule filing 

requirements of Section 19(b) of the 

Exchange Act 2 with respect to certain 

rules of the Financial Industry 

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

that the Exchanges seek to incorporate 

by reference.3 Section 36 of the 

Exchange Act, subject to certain 

limitations, authorizes the Commission 

to conditionally or unconditionally 

exempt any person, security, or 

transaction, or any class thereof, from 

any provision of the Exchange Act or 

rule thereunder, if necessary or 

appropriate in the public interest and 

consistent with the protection of 

investors. 

The Exchanges filed proposed rule 

changes under Section 19(b) of the 

Exchange Act to amend General 9, 

Section 18 (Payments for Market 

Making) of their respective rulebooks to 

incorporate by reference FINRA 5250 

(Payments for Market Making).4 Because 

FINRA Rule 5250 references the 

definition of ‘‘affiliate’’ in FINRA Rule 

5121, the proposed rule changes also 

would incorporate by reference the 

definition of ‘‘affiliate’’ and related 

definitions within FINRA Rule 5121. As 

such, the Exchanges’ members and 

persons associated with a member 

would be required to comply with 

FINRA Rule 5250 and the definition of 

‘‘affiliate’’ and related definitions within 

FINRA Rule 5121 as though such rules 

are part of the Exchanges’ rulebooks. 

The Exchanges have requested, 

pursuant to Rule 0–12 under the 

Exchange Act,5 that the Commission 

grant the Exchanges an exemption from 

the rule filing requirements of Section 

19(b) of the Exchange Act for changes to 

the Exchanges’ rules that are effected 

solely by virtue of a change to FINRA 

Rule 5250 or to the definition of 

‘‘affiliate’’ and related definitions within 

FINRA Rule 5121, which are 

incorporated by reference.6 Specifically, 

the Exchanges request that they be 

permitted to incorporate by reference 

changes made to FINRA Rule 5250 and 

the definition of ‘‘affiliate’’ and related 

definitions within FINRA Rule 5121 

that are cross-referenced in General 9, 

Section 18 of their respective rulebooks 

without the need for the Exchanges to 

file separately the same proposed rule 

changes pursuant to Section 19(b) of the 

Act.7

The Exchanges represent that FINRA 

Rule 5250 and the definition of 

‘‘affiliate’’ and related definitions within 

FINRA Rule 5121 are regulatory rules 

and not trading rules.8 The Exchanges 

represent that, as a condition to the 

requested exemption from Section 19(b) 

of the Exchange Act, the Exchanges will 

provide written notice to their 

applicants, members, and associated 

persons whenever FINRA proposes a 

change to a cross-referenced rule.9 The 

Exchanges state that such notice will 

alert their applicants, members, and 

associated persons to the proposed 

FINRA rule change and give them an 

opportunity to comment on the 

proposal.10 The Exchanges further 

represent that they will inform 

applicants, members, and associated 

persons in writing when the 

Commission approves any such 

proposed rule changes.11

According to the Exchanges, this 

exemption is necessary and appropriate 

because it would result in the 

Exchanges’ General 9, Section 18 being 

consistent with the relevant crossreferenced FINRA rules at all times, 

thus ensuring consistent regulation of 

joint members of the Exchanges and 

FINRA with respect to payments for 

market making.12

The Commission has issued 

exemptions similar to the Exchanges’ 

request.13 In granting similar 

exemptions, the Commission stated that 

it would consider similar future 

exemption requests, provided that: 

• An SRO wishing to incorporate 

rules of another SRO by reference has 

submitted a written request for an order 

exempting it from the requirement in 

Section 19(b) of the Exchange Act to file 

proposed rule changes relating to the 

rules incorporated by reference, has 

identified the applicable originating 

SRO(s), together with the rules it wants 

to incorporate by reference, and 

otherwise has complied with the 

procedural requirements set forth in the 

Commission’s release governing 

procedures for requesting exemptive 

orders pursuant to Rule 0–12 under the 

Exchange Act; 14

• The incorporating SRO has 

requested incorporation of categories of 

rules (rather than individual rules 

within a category) that are not trading 

rules (e.g., the SRO has requested 

incorporation of rules such as margin, 

suitability, or arbitration); and 

• The incorporating SRO has 

reasonable procedures in place to 

51706 Federal Register / Vol. 86, No. 177 / Thursday, September 16, 2021 / Notices 

15See BATS Options Market Order, supra note 13 

(citing Securities Exchange Act Release No. 49260 

(February 17, 2004), 69 FR 8500 (February 24, 2004) 

(order granting exemptive request relating to rules 

incorporated by reference by several SROs) (‘‘2004 

Order’’)). 

16See BATS Options Market Order, supra note 

13, 75 FR at 8761; see also 2004 Order, supra note 

15, 69 FR at 8502. 

17 15 U.S.C. 78mm. 

18 17 CFR 200.30–3(a)(76). 

provide written notice to its members 

each time a change is proposed to the 

incorporated rules of another SRO.15

The Commission believes that the 

Exchanges have satisfied each of these 

conditions. The Commission also 

believes that granting the Exchanges an 

exemption from the rule filing 

requirements under Section 19(b) of the 

Exchange Act will promote efficient use 

of the Commission’s and the Exchanges’ 

resources by avoiding duplicative rule 

filings based on simultaneous changes 

to identical rule text sought by more 

than one SRO.16 The Commission 

therefore finds it appropriate in the 

public interest and consistent with the 

protection of investors to exempt the 

Exchanges from the rule filing 

requirements under Section 19(b) of the 

Exchange Act with respect to the abovedescribed FINRA rules they have 

incorporated by reference. This 

exemption is conditioned upon the 

Exchanges promptly providing written 

notice to their applicants, members, and 

associated persons whenever FINRA 

changes a rule that the Exchanges have 

incorporated by reference. 

Accordingly, it is ordered, pursuant to 

Section 36 of the Exchange Act,17 that 

the Exchanges are exempt from the rule 

filing requirements of Section 19(b) of 

the Exchange Act solely with respect to 

changes to the rules identified in the 

Exemptive Request, provided that the 

Exchanges promptly provide written 

notice to their applicants, members, and 

associated persons whenever FINRA 

proposes to change a rule that the 

Exchanges have incorporated by 

reference. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–19970 Filed 9–15–21; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #17149 and #17150; 

NEW YORK Disaster Number NY–00209] 

Presidential Declaration Amendment of 

a Major Disaster for Public Assistance 

Only for the State of New York 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 2. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of New York (FEMA–4615– 

DR), dated 09/05/2021. 

Incident: Remnants of Hurricane Ida. 

Incident Period: 09/01/2021 through 

09/03/2021. 

DATES: Issued on 09/12/2021. 

Physical Loan Application Deadline 

Date: 11/04/2021. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 06/06/2022. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW, Suite 6050, 

Washington, DC 20416, (202) 205–6734. 

SUPPLEMENTARY INFORMATION: The notice 

of the President’s major disaster 

declaration for Private Non-Profit 

organizations in the State of New York, 

dated 09/05/2021, is hereby amended to 

include the following areas as adversely 

affected by the disaster. 

Primary Counties: Suffolk, Sullivan. 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

James Rivera, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2021–20056 Filed 9–15–21; 8:45 am] 

BILLING CODE 8026–03–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #17145 and #17146; 

NEW JERSEY Disaster Number NJ–00063] 

Presidential Declaration Amendment of 

a Major Disaster for Public Assistance 

Only for the State of New Jersey 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 1. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of New Jersey (FEMA–4614– 

DR), dated 09/05/2021. 

Incident: Remnants of Hurricane Ida. 

Incident Period: 09/01/2021 through 

09/03/2021. 

DATES: Issued on 09/10/2021. 

Physical Loan Application Deadline 

Date: 11/04/2021. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 06/06/2022. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW, Suite 6050, 

Washington, DC 20416, (202) 205–6734. 

SUPPLEMENTARY INFORMATION: The notice 

of the President’s major disaster 

declaration for Private Non-Profit 

organizations in the State of New Jersey, 

dated 09/05/2021, is hereby amended to 

include the following areas as adversely 

affected by the disaster. 

Primary Counties: Essex, Hudson, 

Mercer, Union. 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

Barbara Carson, 

Acting Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2021–19989 Filed 9–15–21; 8:45 am] 

BILLING CODE 8026–03–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #17167 and #17168; 

CALIFORNIA Disaster Number CA–00345] 

Presidential Declaration of a Major 

Disaster for Public Assistance Only for 

the State of California 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of California (FEMA–4619– 

DR), dated 09/12/2021. 

Incident: Caldor Fire. 

Incident Period: 08/14/2021 and 

continuing. 

DATES: Issued on 09/12/2021. 

Physical Loan Application Deadline 

Date: 11/12/2021. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 06/13/2022. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business