51698 Federal Register / Vol. 86, No. 177 / Thursday, September 16, 2021 / Notices 

13 15 U.S.C. 78o–4(b)(2)(C). 

14 15 U.S.C. 78o–4(b)(2)(L)(iv). 

15 Id. 

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

17 17 CFR 240.19b–4(f)(6). 

18 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. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Section 15B(b)(2)(C) of the Act 

requires that MSRB rules be designed 

not to impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act.13 The MSRB 

believes that the proposed rule change 

will not impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

Exchange Act. The goal of the proposed 

rule change is to provide temporary 

relief to grant additional time for 

municipal advisors to meet certain 

obligations under MSRB rules during 

the exigent circumstances of the 

COVID–19 pandemic but would not 

alter their underlying obligations under 

MSRB rules. Not only does the proposed 

rule change not burden competition, but 

as set forth below, it may result in a 

benefit to competition. 

Additionally, Section 15B(b)(2)(L)(iv) 

of the Exchange Act, requires that MSRB 

rules not impose a regulatory burden on 

small municipal advisors that is not 

necessary or appropriate in the public 

interest and for the protection of 

investors, municipal entities, and 

obligated persons, provided that there is 

robust protection of investors against 

fraud.14 The MSRB believes that the 

proposed rule change is consistent with 

Section 15B(b)(2)(L)(iv) of the Exchange 

Act 15 in that, while the proposed rule 

change to extend the date by which 

individuals have to pass the Series 54 

examination will affect all municipal 

advisors, including small municipal 

advisors, there is no new regulatory 

burden that results. Small municipal 

advisors typically have fewer associated 

persons and, as a result, their resources 

may be more limited during the 

pandemic and the benefits of the 

proposed rule change may provide 

smaller municipal advisors a greater 

benefit given their limited resources. In 

addition, the MSRB believes that 

extending the compliance date by 

approximately 21⁄2 weeks may serve to 

benefit small municipal advisors by 

providing greater opportunity for 

individuals to prepare for, take and pass 

the Series 54 examination and for 

municipal advisors to meet their 

compliance obligation to have at least 

one person properly qualified by 

passing the Series 54 examination by 

the compliance date. 

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 on 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) of the Act 16 and Rule 19b– 

4(f)(6) 17 thereunder. 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. 

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– 

MSRB–2021–05 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–MSRB–2021–05. 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 MSRB. 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–MSRB–2021–05 and should 

be submitted on or before October 7, 

2021. 

For the Commission, pursuant to delegated 

authority.18

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–19973 Filed 9–15–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92936; File No. 

SR–NYSEArca–2021–78] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the NYSE Arca 

Equities Fees and Charges 

September 10, 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 

September 1, 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, II, and III below, which Items 

have been prepared by the selfregulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

Federal Register / Vol. 86, No. 177 / Thursday, September 16, 2021 / Notices 51699 

4All references to ETP Holders in connection 

with this proposed fee change include Market 

Makers. 

5ADV means average daily volume. See Fee 

Schedule, Section I. Definitions. 

6US CADV means the United States consolidated 

average daily volume of transactions reported to a 

securities information processor (‘‘SIP’’). 

Transactions that are not reported to a SIP are not 

included in the US CADV. See Fee Schedule, 

Section I. Definitions. 

7See Securities Exchange Act Release No. 84103 

(September 12, 2018), 83 FR 47216 (September 8, 

2018) (SR–NYSEArca–2018–66). 

8See Securities Exchange Act Release No. 88833 

(May 7, 2020), 85 FR 28676 (May 13, 2020) 

(SR–NYSEArca–2020–39). 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(4) and (5). 11 15 U.S.C. 78f(b)(8). 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

NYSE Arca Equities Fees and Charges 

(‘‘Fee Schedule’’) to eliminate the Step 

Up Tier 3 and Step Up Tier 5 pricing 

tiers. The Exchange proposes to 

implement the fee changes effective 

September 1, 2021. 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

Fee Schedule to eliminate the Step Up 

Tier 3 and Step Up Tier 5 pricing tiers. 

The Exchange proposes to implement 

the fee changes effective September 1, 

2021. 

Currently, to qualify for the Step Up 

Tier 3 credit, an ETP Holder 4 must 

execute providing ADV 5 per month of 

0.15% or more, but less than 0.20% of 

the US CADV 6 and directly execute 

providing ADV that is an increase of no 

less than 0.075% of US CADV for that 

month over the ETP Holder’s providing 

ADV in May 2018.7 If an ETP Holder 

meets the Step Up Tier 3 requirement, 

such ETP Holder is eligible to earn a 

credit of $0.0025 per share for orders 

that provide displayed liquidity in Tape 

A and Tape C securities, and a credit of 

$0.0022 per share for orders that 

provide displayed liquidity in Tape B 

securities. 

Additionally, to qualify for the Step 

Up Tier 5 credits, an ETP Holder must 

execute providing ADV per month that 

is at least 0.20% of US CADV and 

execute providing ADV per month as a 

percentage of US CADV that is at least 

two times more than that ETP Holder’s 

providing ADV in April 2020 as a 

percentage of US CADV.8 If an ETP 

Holder meets the Step Up Tier 5 

requirement, such ETP Holder is eligible 

to earn a credit of $0.0032 per share for 

orders that provide liquidity in Tape A, 

Tape B and Tape C securities. 

The Exchange proposes to eliminate 

both the Step Up Tier 3 and Step Up 

Tier 5 pricing tiers and remove each 

pricing tier from the Fee Schedule 

because the pricing tiers have been 

underutilized by ETP Holders. The 

Exchange has observed that not a single 

ETP Holder has qualified for either of 

the pricing tiers proposed for 

elimination in the last six months. Since 

both the Step Up Tier 3 and Step Up 

Tier 5 pricing tiers have not been 

effective in accomplishing their 

intended purpose, which is to incent 

ETP Holders to increase their liquidity 

adding activity on the Exchange, the 

Exchange has determined to eliminate 

each of these pricing tiers from the Fee 

Schedule. 

With the proposed elimination of Step 

Up Tier 3 and Step Up Tier 5, the 

Exchange proposes to rename current 

Step Up Tier 4 as Step Up Tier 3. 

The proposed changes are not 

otherwise intended to address any other 

issues, and the Exchange is not aware of 

any significant problems that market 

participants would have in complying 

with the proposed changes. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,9 in general, and 

furthers the objectives of Sections 

6(b)(4) and(5) of the Act,10 in particular, 

because it provides for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members, 

issuers and other persons using its 

facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

The Exchange believes that the 

proposed rule change to eliminate the 

Step Up Tier 3 and Step Up Tier 5 

pricing tiers is reasonable because each 

of the pricing tiers that are the subject 

of this proposed rule change have been 

underutilized and have not incentivized 

ETP Holders to bring liquidity and 

increase trading on the Exchange. No 

ETP Holder has availed itself of either 

of the pricing tiers in the last six 

months. The Exchange does not 

anticipate any ETP Holder in the near 

future to qualify for either of the tiers 

that are the subject of this proposed rule 

change. The Exchange believes it is 

reasonable to eliminate requirements 

and credits, and even entire pricing 

tiers, when such incentives become 

underutilized. The Exchange believes 

eliminating underutilized incentive 

programs would also simplify the Fee 

Schedule. The Exchange further 

believes that removing reference to the 

pricing tiers that the Exchange proposes 

to eliminate from the Fee Schedule 

would also add clarity to the Fee 

Schedule. The Exchange believes that 

eliminating requirements and credits, 

and even entire pricing tiers, from the 

Fee Schedule when such incentives 

become ineffective is equitable and not 

unfairly discriminatory because the 

requirements, and credits, and even 

entire pricing tiers, would be eliminated 

in their entirety and would no longer be 

available to any ETP Holder. All ETP 

Holders would continue to be subject to 

the same fee structure, and access to the 

Exchange’s market would continue to be 

offered on fair and nondiscriminatory 

terms. The Exchange also believes that 

the proposed change would protect 

investors and the public interest 

because the deletion of underutilized 

pricing tiers would make the Fee 

Schedule more accessible and 

transparent and facilitate market 

participants’ understanding of the fees 

charged for services currently offered by 

the Exchange. 

For the foregoing reasons, the 

Exchange believes that the proposal is 

consistent with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,11 the Exchange believes that the 

proposed rule change would not impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Intramarket Competition. The 

Exchange’s proposal to eliminate 

requirements and credits, and pricing 

tiers in their entirety, will not place any 

51700 Federal Register / Vol. 86, No. 177 / Thursday, September 16, 2021 / Notices 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(2). 14 15 U.S.C. 78s(b)(2)(B). 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 92139 (June 9, 

2021), 86 FR 31774 (June 15, 2021) (‘‘Notice). 

Comments on the proposed rule change can be 

found at: https://www.sec.gov/comments/sr-finra2021-014/srfinra2021014.htm. 

undue burden on intramarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act given that not a 

single ETP Holder has qualified for the 

credits under either of the pricing tiers 

that are the subject of this proposed rule 

change for the last six months. To the 

extent the proposed rule change places 

a burden on competition, any such 

burden would be outweighed by the fact 

that none of the pricing tiers proposed 

for deletion have served their intended 

purpose of incentivizing ETP Holders to 

more broadly participate on the 

Exchange. Moreover, ETP Holders can 

choose to trade on other venues to the 

extent they believe that the credits 

provided are too low or the qualification 

criteria are not attractive. 

Intermarket Competition. The 

Exchange believes the proposed rule 

change does not impose any burden on 

intermarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange operates in a highly 

competitive market in which market 

participants can readily choose to send 

their orders to other exchanges and offexchange venues if they deem fee levels 

at those other venues to be more 

favorable. Market share statistics 

provide ample evidence that price 

competition between exchanges is 

fierce, with liquidity and market share 

moving freely from one execution venue 

to another in reaction to pricing 

changes. In such an environment, the 

Exchange must continually adjust its 

fees and rebates to remain competitive 

with other exchanges and with offexchange venues. Because competitors 

are free to modify their own fees and 

credits in response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

does not believe this proposed fee 

change would impose any burden on 

intermarket competition. 

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 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 12 of the Act and 

subparagraph (f)(2) of Rule 19b–4 13

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 14 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSEArca–2021–78 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–2021–78. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–NYSEArca–2021–78, and 

should be submitted on or before 

October 7, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–19971 Filed 9–15–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92932; File No. SR–FINRA– 

2021–014] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Granting 

Approval of a Proposed Rule Change 

Relating to Members’ Filing 

Requirements Under FINRA Rule 6432 

(Compliance With the Information 

Requirements of SEA Rule 15c2–11) 

September 10, 2021. 

I. Introduction 

On June 9, 2021, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’), 

pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (‘‘Act’’ 

or ‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend member firms’ filing 

requirements under FINRA Rule 6432 

(Compliance with the Information 

Requirements of SEA Rule 15c2–11). 

The proposed rule change was 

published for comment in the Federal 

Register on June 15, 2021.3 The 

Commission received one comment 

letter regarding the proposed rule