52508 Federal Register / Vol. 86, No. 180 / Tuesday, September 21, 2021 / Notices 

31 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). 

4The proposed rule change will automatically 

sunset on June 30, 2022. FINRA will submit a 

separate rule filing if it seeks to extend the duration 

of the temporary proposed rule beyond June 30, 

2022. 

to make available publicly. All 

submissions should refer to File 

Number SR–NYSE–2021–51 and should 

be submitted on or before October 12, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–20331 Filed 9–20–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–93002; File No. SR–FINRA– 

2021–023] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Extend the 

Effectiveness of Temporary 

Supplementary Material .17 

(Temporary Relief To Allow Remote 

Inspections for Calendar Year 2020 

and Calendar Year 2021) Under FINRA 

Rule 3110 (Supervision) 

September 15, 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 

September 14, 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, II, and 

III 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 

temporary Supplementary Material .17 

(Temporary Relief to Allow Remote 

Inspections for Calendar Year 2020 and 

Calendar Year 2021) under FINRA Rule 

3110 (Supervision) to include calendar 

year 2022 inspection obligations 

through June 30, 2022 within the scope 

of the supplementary material.4 The 

proposed extension of Rule 3110.17 is 

necessary to address the continuing 

operational challenges resulting from 

the COVID–19 pandemic many member 

firms face in planning for and timely 

conducting, during the first half of 

calendar year 2022, the on-site 

inspection component of Rule 3110(c) 

(Internal Inspections) at locations 

requiring inspection in calendar year 

2022. 

Below is the text of the proposed rule 

change. Proposed new language is in 

italics; proposed deletions are in 

brackets. 

* * * * * 

3100. SUPERVISORY RESPONSIBILITIES 

3110. Supervision 

(a) through (f) No Change. 

* * * Supplementary Material: ————— 

.01 through .16 No Change. 

.17 Temporary Relief to Allow Remote 

Inspections for Calendar Years 2020 and 

[Calendar Year] 2021, and Through June 30 

of Calendar Year 2022. 

(a) Use of Remote Inspections. Each 

member obligated to conduct an inspection 

of an office of supervisory jurisdiction, 

branch office or non-branch location in 

calendar years 2020, [and calendar year] 2021 

and 2022 pursuant to, as applicable, 

paragraphs (c)(1)(A), (B) and (C) under Rule 

3110 may, subject to the requirements of this 

Rule 3110.17, satisfy such obligation by 

conducting the applicable inspection 

remotely, without an on-site visit to the office 

or location. In accordance with Rule 3110.16, 

inspections for calendar year 2020 must be 

completed on or before March 31, 2021 and 

inspections for calendar year 2021 must be 

completed on or before December 31, 2021. 

With respect to a member’s obligation to 

conduct an inspection of an office or location 

in calendar year 2022, a member has the 

option to conduct those inspections remotely 

only through June 30, 2022. Notwithstanding 

Rule 3110.17, a member shall remain subject 

to the other requirements of Rule 3110(c). 

(b) Written Supervisory Procedures for 

Remote Inspections. Consistent with a 

member’s obligation under Rule 3110(b)(1), a 

member that elects to conduct [each of] its 

[calendar year 2020 or calendar year 2021] 

inspections remotely for any of the calendar 

years specified in this supplementary 

material must amend or supplement its 

written supervisory procedures to provide for 

remote inspections that are reasonably 

designed to assist in detecting and preventing 

violations of and achieving compliance with 

applicable securities laws and regulations, 

and with applicable FINRA rules. Reasonably 

designed procedures for conducting remote 

inspections of offices or locations should 

include, among other things: (1) A 

description of the methodology, including 

technologies permitted by the member, that 

may be used to conduct remote inspections; 

and (2) the use of other risk-based systems 

employed generally by the member firm to 

identify and prioritize for review those areas 

that pose the greatest risk of potential 

violations of applicable securities laws and 

regulations, and of applicable FINRA rules. 

(c) Effective Supervisory System. The 

requirement to conduct inspections of offices 

and locations is one part of the member’s 

overall obligation to have an effective 

supervisory system and therefore, the 

member must continue with its ongoing 

review of the activities and functions 

occurring at all offices and locations, whether 

or not the member conducts inspections 

remotely. A member’s use of a remote 

inspection of an office or location will be 

held to the same standards for review as set 

forth under Rule 3110.12. Where a member’s 

remote inspection of an office or location 

identifies any indicators of irregularities or 

misconduct (i.e., ‘‘red flags’’), the member 

may need to impose additional supervisory 

procedures for that office or location or may 

need to provide for more frequent monitoring 

of that office or location, including 

potentially a subsequent physical, on-site 

visit on an announced or unannounced basis 

when the member’s operational difficulties 

associated with COVID–19 abate, nationally 

or locally as relevant, and the challenges a 

member is facing in light of the public health 

and safety concerns make such on-site visits 

feasible using reasonable best efforts. The 

temporary relief provided by this Rule 

3110.17 does not extend to a member’s 

inspection requirements beyond [calendar 

year 2021] June 30, 2022 and such 

inspections must be conducted in 

compliance with Rule 3110(c). 

(d) Documentation Requirement. A 

member must maintain and preserve a 

centralized record for each of calendar years 

2020 and [calendar year] 2021, and for 

calendar year 2022 through June 30, 2022 

only that separately identifies: (1) All offices 

or locations that had inspections that were 

conducted remotely; and (2) any offices or 

locations for which the member determined 

to impose additional supervisory procedures 

or more frequent monitoring, as provided in 

Rule 3110.17(c). A member’s documentation 

of the results of a remote inspection for an 

office or location must identify any 

additional supervisory procedures or more 

frequent monitoring for that office or location 

that were imposed as a result of the remote 

inspection. 

* * * * * 

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 


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Federal Register / Vol. 86, No. 180 / Tuesday, September 21, 2021 / Notices 52509 

5See Securities Exchange Act Release No. 89188 

(June 30, 2020), 85 FR 40713 (July 7, 2020) (Notice 

of Filing and Immediate Effectiveness of File No. 

SR–FINRA–2020–019). 

6See Securities Exchange Act Release No. 90454 

(November 18, 2020), 85 FR 75097 (November 24, 

2020) (Notice of Filing and Immediate Effectiveness 

of File No. SR–FINRA–2020–040). 

7See The Centers for Disease Control and 

Prevention (‘‘CDC’’), What You Need to Know about 

Variants (stating, in part, that ‘‘the Delta variant 

causes more infections and spreads faster than 

earlier forms of the virus that causes COVID–19.’’), 

https://www.cdc.gov/coronavirus/2019-ncov/ 

variants/variant.html (updated September 3, 2021). 

See also CDC, The Possibility of COVID–19 Illness 

after Vaccination: Breakthrough Infections (stating, 

in part, that ‘‘COVID–19 vaccines are effective at 

preventing infection, serious illness, and death. 

Most people who get COVID–19 are unvaccinated. 

However, since vaccines are not 100% effective at 

preventing infection, some people who are fully 

vaccinated will still get COVID–19 . . . People who 

get vaccine breakthrough infections can be 

contagious.’’), https://www.cdc.gov/coronavirus/ 

2019-ncov/vaccines/effectiveness/why-measureeffectiveness/breakthrough-cases.html (updated 

August 23, 2021). 

8For example, President Joe Biden on July 29, 

2021, announced several measures to increase the 

number of people vaccinated against COVID–19 and 

to slow the spread of the Delta variant, including 

strengthening safety protocols for federal 

government employees and contractors. See https:// 

www.whitehouse.gov/briefing-room/statementsreleases/2021/07/29/fact-sheet-president-biden-toannounce-new-actions-to-get-more-americansvaccinated-and-slow-the-spread-of-the-deltavariant/. More recently, President Joe Biden on 

August 31, 2021, briefed the press on, among other 

things, the government’s response to the COVID–19 

surge, noting the government’s continuing efforts to 

help states with Delta variant outbreaks. See https:// 

www.whitehouse.gov/briefing-room/press-briefings/ 

2021/08/31/press-briefing-by-white-house-covid-19- 

response-team-and-public-health-officials-53/. 

9Even FINRA staff, with limited exceptions, 

continue to work remotely to protect their health 

and safety. As indicated in its previous filings 

concerning other pandemic-related temporary relief 

from specified FINRA rules and requirements, 

FINRA has established a COVID–19 task force to 

develop a data-driven, staged plan for FINRA staff 

to safely return to working in FINRA office 

locations and resume other in-person activities. See 

Securities Exchange Act Release No. 92685 (August 

17, 2021), 86 FR 47169, 47170 (August 23, 2021) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2021–019). 

10The CDC counts people as being ‘‘fully 

vaccinated’’ if they received two doses on different 

days (regardless of time interval) of a two-dose 

vaccine or received one dose of a single-dose 

vaccine. See CDC, COVID–19 Vaccinations in the 

United States, https://covid.cdc.gov/covid-datatracker/#vaccinations (last visited September 13, 

2021). 

11See Emily Cadman, Stephan Kahl, et al., 

Surging Delta Cases Reverse the World’s March 

Back to the Office (stating, in part, ‘‘The spread of 

the delta variant has forced many U.S. employers 

that had been hoping to get staff back to their desks 

after Labor Day to delay those plans until at least 

October—or even next year.’’), Bloomberg (August 

20, 2021), https://www.bloomberg.com/graphics/ 

2021-return-to-office/; see also Rob Stein & Selena 

Simmons-Duffin, The Delta Variant Will Drive A 

Steep Rise In U.S. COVID Deaths, A New Model 

Shows, NPR (July 22, 2021), https://www.npr.org/ 

sections/health-shots/2021/07/22/1019475669/ 

delta-variant-will-drive-a-steep-rise-in-coviddeaths-model-shows. 

12See CDC, Workplaces and Businesses, https:// 

www.cdc.gov/coronavirus/2019-ncov/community/ 

workplaces-businesses/index.html (updated 

September 8, 2021); CDC, Domestic Travel During 

COVID–19, https://www.cdc.gov/coronavirus/2019- 

ncov/travelers/travel-during-covid19.html (updated 

August 25, 2021); and CDC, When NOT to Travel: 

Avoid Spreading COVID–19, https://www.cdc.gov/ 

coronavirus/2019-ncov/travelers/when-to-delaytravel.html (updated August 20, 2021). 

13See supra note 4. 

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 COVID–19 pandemic has caused 

a host of operational disruptions to the 

securities industry and impacted 

member firms, regulators, investors and 

other stakeholders. In response to the 

pandemic, FINRA began providing 

temporary relief to member firms from 

specified FINRA rules and 

requirements, including Rule 3110. In 

June 2020, FINRA adopted Rule 3110.16 

(Temporary Extension of Time to 

Complete Office Inspections), which has 

expired by its terms, that extended the 

time by which member firms must 

complete their calendar year 2020 

inspection obligations under Rule 

3110(c) to March 31, 2021, but with the 

expectation that firms would conduct 

their inspections on-site.5 FINRA 

subsequently adopted Rule 3110.17, 

which automatically sunsets on 

December 31, 2021, to provide firms the 

option of satisfying their inspection 

obligations under Rule 3110(c) remotely 

for calendar years 2020 and 2021, 

subject to specified conditions,6 due to 

the logistical challenges of going on-site 

while public health and safety concerns 

related to COVID–19 persisted. While 

there are signs of improvement, much 

uncertainty remains. The emergence of 

the Delta variant,7 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.8

Through recent discussions with 

FINRA’s advisory committees and other 

industry representatives, FINRA 

understands that while some firms have 

taken affirmative steps to develop and 

implement phased-in office re-entry 

plans based on local conditions, there 

are many other member firms that have 

not. Those firms continue to assess the 

complexity of when and how to 

effectively and safely recall their 

employees back into offices alongside 

fashioning permanent telework 

arrangements or a hybrid workforce 

model in which some employees may 

work on-site in a commercial office 

space and other employees may work 

off-site in an alternative location (e.g., 

personal residence).9 Many member 

firms, like other employers across the 

U.S., still maintain telework 

arrangements with their employees and 

have not resumed travel schedules at 

pre-pandemic levels as travel remains a 

risk, particularly for the segment of the 

U.S. population that is not fully 

vaccinated and for their families.10

Continuing health and safety protocols 

and policies regarding the opening of 

mass transit systems and schools in 

many areas also are key factors being 

considered by firms in developing their 

plans. 

Against this setting, firms are trying to 

plan for calendar year 2022 inspections 

of their offices of supervisory 

jurisdiction, branch offices, and nonbranch locations to comply with Rule 

3110(c). The need for firms to establish 

inspection schedules for the coming 

year and ensure there is adequate, 

experienced staff available to travel and 

conduct on-site inspections within the 

context of fluid work locations presents 

a unique complexity for many firms in 

terms of planning and deploying 

resources. Even with increased 

availability of vaccines and other 

promising signs that the pandemic is 

receding in the U.S., FINRA 

understands that many firm personnel 

are still working from alternative work 

locations, and have not resumed 

traveling or are reluctant to do so at prepandemic levels amid persistent 

significant health and safety concerns.11

For unvaccinated persons in particular, 

health and safety risks in connection 

with returning to the office with other 

personnel still remain worrisome and 

travel still poses a risk of contracting 

and spreading COVID–19.12

As we are now late into the third 

quarter of calendar year 2021, FINRA 

believes extending Rule 3110.17 

through June 30, 2022 represents a 

prudent accommodation.13 The 

proposed extension would provide 

clarity to firms on regulatory 

requirements and account for the time 

needed for many firms to carefully 

assess when and how to have their 

employees safely return to their offices 

in light of vaccination coverage in the 

U.S. and transmission levels of the 

virus, including any emergent variants 

throughout the country. 

By extending Rule 3110.17 to cover 

part of calendar year 2022 inspection 

obligations through June 30, 2022 only, 

FINRA is not proposing to amend the 

other conditions of the temporary rule. 


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52510 Federal Register / Vol. 86, No. 180 / Tuesday, September 21, 2021 / Notices 

14 15 U.S.C. 78o–3(b)(6). 

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

16 17 CFR 240.19b–4(f)(6). 

The proposed amendments to Rule 

3110.17 would simply provide that for 

calendar year 2022, a member has the 

option to conduct those inspections 

remotely through June 30, 2022. The 

current conditions of the supplementary 

material for firms that elect to conduct 

remote inspections would remain 

unchanged: Such firms must amend or 

supplement their written supervisory 

procedures for remote inspections, use 

remote inspections as part of an 

effective supervisory system, and 

maintain the required documentation. 

The additional period of time would 

also enable FINRA to further monitor 

the effectiveness of remote inspections 

and their impacts—positive or 

negative—on firms’ overall supervisory 

systems in the evolving workplace. 

FINRA continues to believe this 

temporary remote inspection option is a 

reasonable alternative to provide to 

firms to fulfill their Rule 3110(c) 

obligations during the pandemic, and is 

designed to achieve the investor 

protection objectives of the inspection 

requirements under these unique 

circumstances. Firms should consider 

whether, under their particular 

operating conditions, reliance on remote 

inspections would be reasonable under 

the circumstances. For example, firms 

with offices that are open to the public 

or that are otherwise doing business as 

usual should consider whether some 

form of in-person inspections would be 

feasible and appropriately contribute to 

a supervisory system that is reasonably 

designed to achieve compliance with 

applicable securities laws and 

regulations, and with applicable FINRA 

rules. 

FINRA has filed the proposed rule 

change for immediate effectiveness. 

FINRA is proposing to make the 

proposed rule change operative on 

January 1, 2022. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,14 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. In recognition of the 

ongoing impact of COVID–19 on 

performing the on-site inspection 

component of Rule 3110(c), the 

proposed rule change is intended to 

provide firms a temporary regulatory 

option to conduct inspections of offices 

and locations remotely during the first 

half of calendar year 2022. This 

temporary proposed supplementary 

material does not relieve firms from 

meeting the core regulatory obligation to 

establish and maintain a system to 

supervise the activities of each 

associated person that is reasonably 

designed to achieve compliance with 

applicable securities laws and 

regulations, and with applicable FINRA 

rules that directly serve investor 

protection. In a time when faced with 

ongoing challenges resulting from the 

COVID–19 pandemic, FINRA believes 

that the proposed rule change provides 

sensibly tailored relief that will afford 

firms the ability to assess when and how 

to implement their work re-entry plans 

as measured against the health and 

safety of their personnel, while 

continuing to serve and promote the 

protection of 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 result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The potential 

economic impacts of Rule 3110.17 as 

described in File No. SR–FINRA–2020– 

040 continue to have applicability to the 

proposed rule change herein. The 

proposed rule change would extend the 

temporary relief to include calendar 

year 2022 inspection obligations 

through June 30, 2022 within the scope 

of the supplementary material without 

making substantive changes to the other 

aspects of the provision. FINRA believes 

that the proposed temporary extension 

would afford firms the time needed to 

determine when and how to effectively 

and safely implement their work reentry plans, which must take into 

account multiple factors, including local 

health and safety conditions, without 

diminishing investor protection. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor 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 15 and Rule 19b– 

4(f)(6) thereunder.16

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–2021–023 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–2021–023. 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 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 86, No. 180 / Tuesday, September 21, 2021 / Notices 52511 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3BX Options 4, Section 2 has an extra ‘‘as’’. BX 

Options 4, Section 3(a)(1) contains a ‘‘The’’ instead 

of ‘‘the.’’ BX Options 4, Section 3(b) uses the term 

foregoing’’ as compared to ‘‘forgoing’’ on ISE. BX 

Options 4, Section 3(h) defines the term ‘‘NMS 

stock’’ whereas ISE defines the term ‘‘NMS.’’ BX 

Options 4, Section 3(k)(1)(B) has an extra ‘‘this.’’ 

The term ‘‘such’’ within BX Options 4, Section 

4(f)(5) is lowercase. BX Options 4, Section 5(a) has 

an extra ‘‘by the Exchange.’’ BX Options 4, Section 

5(b) has a ‘‘the’’ and ISE Options 4, Section 5(b) has 

a ‘‘that.’’ Options 4, Section 5(e) has a lowercase 

‘‘rule’’ and unlike the same rule in ISE does not 

have the registered trademarks. BX Supplementary 

.01(a) to Options 4, Section 5 uses ‘‘$50’’ instead 

of ‘‘$50.00,’’ has the term ‘‘option’’ instead of 

‘‘options,’’ spells out ‘‘one hundred fifty’’ and 

incorrectly uses the term ‘‘LEAPS’’ instead of 

‘‘LEAPs.’’ BX Supplementary .01(b) to Options 4, 

Section 5 has the terms ‘‘security’’ instead of 

‘‘stock’’ and ‘‘the’’ instead of ‘‘its.’’ BX 

Supplementary .01(d) to Options 4, Section 5 uses 

the term ‘‘Strike Program’’ instead of ‘‘Strike Price 

Program;’’ uses an extra ‘‘the’’; and phrases the last 

paragraph as, ‘‘Notwithstanding the above delisting 

policy, the Exchange may grant member requests to 

add strikes and/or maintain strikes in series of 

options classes traded pursuant to the $1 Strike 

Program that are eligible for delisting.’’ The last 

paragraph of ISE Supplementary .01(d) to Options 

4, Section 5 states, ‘‘Notwithstanding the above 

delisting policy, Member requests to add strikes 

and/or maintain strikes in series of options classes 

traded pursuant to the $1 Strike Price Interval 

Program that are eligible for delisting may be 

granted.’’ These differences are non-substantive. BX 

Supplementary .02(d) to Options 4, Section 5 has 

the term ‘‘section’’ instead of ‘‘Rule.’’ BX 

Supplementary .03(e) to Options 4, Section 5 has 

rule in lowercase. BX Options 4, Section 6(a) uses 

a different phrase than ISE Options 4, Section 6(a), 

‘‘Select provisions of the OLPP’’ versus ‘‘The 

provisions set forth in this Rule.’’ This 

aforementioned difference is non-substantive. BX 

Options 4, Section 6(b)(3) uses the term ‘‘options’’ 

instead of ‘‘option.’’ BX Options 4, Section 

6(b)(ii)(1) uses the term ‘‘options’’ instead of 

‘‘option,’’ the term ‘‘Strike Program’’ instead of 

‘‘Strike Price Interval Program’’ and, ‘‘rules’’ instead 

of ‘‘Rules.’’ BX Options 4, Section 9 uses the term 

‘‘Fund Shares’’ instead of ‘‘Exchange-Traded Fund 

Shares.’’ 

4BX Options 4, Section 4(b)(5) should cite to 

‘‘Options 4, Section 3(c)’’ instead of ‘‘Options 4, 

Section 3.’’ In addition, BX Options 4, Section 

4(b)(5) has two stray commas. BX Options 4, 

Section 4(f) has an extra ‘‘in’’. BX Options 4, 

Section 4(g)(2) has an extra ‘‘of Options 4’’ and two 

stray commas. BX Options 4, Section 5(d) 

incorrectly cites to Section 3(i) instead of Section 

3(h). BX Options 4, Section 6(b) incorrectly cites to 

Section 3(i) instead of Section 3(h). BX Options 4, 

Section 6(b)(i) incorrectly cites to Supplementary 

Material .03(d) instead of Supplementary Material 

.02(d). This paragraph also uses the term ‘‘options’’ 

instead of ‘‘option.’’ Options 3, Section 6(b)(ii) 

incorrectly cites to subparagraph (a) instead of 

subparagraph (i). 

5See BX Options 4, Section 3(c)(2). BX utilizes 

citations to Options 4, Section 3(b)(1) and Options 

4, Section 3(b)(2) instead of simply citing to ‘‘this 

Rules’’ as is the case with ISE Options 4, Section 

3(c)(2). Other examples include BX Options 4, 

Section 3(c)(3) which cites to Options 4, Section 

3(b)(4), BX Options 4, Section 3(c)(4)(B)(ii) which 

cites to Options 4, Section 3(b)(5)(i). 

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–2021–023 and 

should be submitted on or before 

October 12, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–20333 Filed 9–20–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92987; File No. SR–BX– 

2021–038] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Incorporate BX 

Options 4 Rules By Reference to 

Nasdaq ISE, LLC Options 4 Rules 

September 15, 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 

September 3, 2021, Nasdaq BX, Inc. 

(‘‘BX’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III, 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 incorporate 

the BX Options 4 Rules by reference to 

Nasdaq ISE, LLC (‘‘ISE’’) Options 4 

Rules. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/bx/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 BX Options 4 Listing Rules 

provide for the options that may be 

listed and traded on BX. The Exchange 

proposes to incorporate the BX Options 

4 Rules by reference to Nasdaq ISE, LLC 

(‘‘ISE’’) Options 4 Rules. 

Currently, the BX Options 4 Rules are 

very similar to the ISE Options 4 Rules. 

The differences between the BX and ISE 

Options 4 Rules are non-substantive 

technical differences.3 Other changes 

are non-substantive word choice 

differences.4 Finally, certain rules 

utilize the phrase ‘‘this Rule’’ instead of 

a citation.5 Of note, BX Options 4, 

Section 3(h) does not list reverse 

repurchase agreements in the defined 

term ‘‘Financial Instruments’’. The 

Exchange proposes to include ‘‘reverse 

repurchase agreements’’ within the list 

of securities deemed appropriate for 

options trading on BX in order that the 

Exchange may list the same products as 

ISE may list today. Also, BX Options 4, 

Section 8(a) should include the words 

‘‘and continuity.’’ BX’s continuity rules 

utilize the LEAP term. ISE has this rule 

text within its Options 4, Section 8(a). 

The Exchange proposes to incorporate 

by reference the BX Options 4 Rules to 

ISE Options 4 Rules. To that end, BX 

proposes to replace the current BX 

Options 4 Rules with the following rule 

text: 

The rules contained in Nasdaq ISE Options 

4, as such rules may be in effect from time 

to time (the ‘‘Options 4 Rules’’), are hereby 

incorporated by reference into this BX 

Options 4, and are thus BX Rules and thereby 

applicable to BX Participants and associated 

persons. BX Participants shall comply with 

the Options 4 Rules as though such rules 

were fully set forth herein. All defined terms, 

including any variations thereof, contained 

in the Options 4 Rules shall be read to refer 

to the BX related meaning of such term. 

Solely by way of example, and not in 

limitation or in exhaustion: The defined term 

‘‘Exchange’’ in the Options 4 Rules shall be 

read to refer to BX; the defined term ‘‘Rule’’ 

in the Options 4 Rules shall be read to refer 

to the BX Rule; the defined terms 

‘‘Competitive Market Maker’’ and ‘‘Market 


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