Federal Register / Vol. 86, No. 180 / Tuesday, September 21, 2021 / Notices 52505 

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. 73553 

(November 6, 2014), 79 FR 67491 (November 13, 

2014) (Notice of Amendment No. 1 and Order 

Granting Accelerated Approval to a Proposed Rule 

Change, as Modified by Amendment No. 1, To 

Establish the NYSE Best Quote and Trades Data 

Feed). 

5See Securities Exchange Act Release Nos. 59290 

(January 23, 2009), 74 FR 5707 (January 30, 2009) 

(SR–NYSE–2009–05); and 59606 (March 19, 2009), 

74 FR 13293 (March 26, 2009) (SR–NYSE–2009–04). 

6See Securities Exchange Act Release No. 62181 

(May 26, 2010), 75 FR 31488 (June 3, 2010) (SR– 

NYSE–2010–30). 

7See Securities Exchange Act Release Nos. 59289 

(January 23, 2009), 74 FR 5711 (January 30, 2009) 

(SR–NYSEArca–2009–06); and 59598 (March 18, 

2009), 74 FR 12919 (March 25, 2009) (SR– 

NYSEArca–2009–05). 

8See Securities Exchange Act Release No. 62188 

(May 27, 2010), 75 FR 31484 (June 3, 2010) (SR– 

NYSEArca–2010–23). 

2021) required by 44 U.S.C. 3506(c)(2). 

That request elicited no comments. 

Information Collection Request (ICR) 

Title: Gross Earnings Report. 

OMB Control Number: 3220–0132. 

Form(s) submitted: BA–11, BA–11 

(internet). 

Type of request: Extension without 

change of a currently approved 

collection. 

Affected public: Private Sector; 

Businesses or other for-profits. 

Abstract: Section 7(c)(2) of the 

Railroad Retirement Act requires a 

financial interchange between the 

OASDHI trust funds and the railroad 

retirement account. The collection 

obtains gross earnings of railway 

employees on a 1% basis. The 

information is used to determine the 

amount which would place the OASDHI 

trust funds in the position they would 

have been if railroad service had been 

covered by the Social Security and FIC 

Acts. 

Changes proposed: The RRB proposes 

no changes to Form BA–11. 

The burden estimate for the ICR is as 

follows: 

Form number Annual 

responses 

Time 

(minutes) 

Burden 

(hours) 

BA–11 CD–ROM ......................................................................................................................... 0 30 0 

BA–11 File Transfer Protocol ...................................................................................................... 11 300 55 

BA–11 Secure Email ................................................................................................................... 0 30 0 

BA–11 (Internet)—Positive .......................................................................................................... 424 30 77 

BA–11 (Internet)—Negative ......................................................................................................... 154 15 106 

Total ...................................................................................................................................... 589 ........................ 238 

Additional Information or Comments: 

Copies of the forms and supporting 

documents can be obtained from 

Kennisha Tucker at (312) 469–2591 or 

Kennisha.Tucker@rrb.gov. Comments 

regarding the information collection 

should be addressed to Brian Foster, 

Railroad Retirement Board, 844 North 

Rush Street, Chicago, Illinois, 60611– 

1275 or Brian.Foster@rrb.gov. 

Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice to www.reginfo.gov/public/do/ 

PRAMain. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. 

Brian Foster, 

Clearance Officer. 

[FR Doc. 2021–20420 Filed 9–20–21; 8:45 am] 

BILLING CODE 7905–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–93000; File No. SR–NYSE– 

2021–51] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Content of the NYSE Best Quote & 

Trades 

September 15, 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 3, 2021, New York Stock 

Exchange LLC (‘‘NYSE’’ 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 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 to amend the 

content of the NYSE Best Quote & 

Trades (‘‘NYSE BQT’’) data feed to 

identify the current day consolidated 

high and low prices. 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to enhance 

the content of NYSE BQT to identify the 

current day consolidated high and low 

price for all listed equity securities. 

The NYSE BQT4 data feed provides a 

unified view of best bid and offer 

(‘‘BBO’’) and last sale information for 

the Exchange and its affiliates, NYSE 

Arca, Inc. (‘‘NYSE Arca’’), NYSE 

American LLC (‘‘NYSE American’’), 

NYSE National, Inc. (‘‘NYSE National’’) 

and NYSE Chicago, Inc. (‘‘NYSE 

Chicago’’) and consists of data elements 

from ten existing market data feeds: 

NYSE Trades,5 NYSE BBO,6 NYSE Arca 

Trades,7 NYSE Arca BBO,8 NYSE 


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52506 Federal Register / Vol. 86, No. 180 / Tuesday, September 21, 2021 / Notices 

9See Securities Exchange Act Release No. 62187 

(May 27, 2010), 75 FR 31500 (June 3, 2010) (SR– 

NYSEAmex–2010–35). 

10See Securities Exchange Act Release No. 62187 

(May 27, 2010), 75 FR 31500 (June 3, 2010) (SR– 

NYSEAmex–2010–35). 

11See Securities Exchange Act Release No. 83350 

(May 31, 2018), 83 FR 26332 (June 6, 2018) (SR– 

NYSENAT–2018–09). 

12See Securities Exchange Act Release No. 83350 

(May 31, 2018), 83 FR 26332 (June 6, 2018) (SR– 

NYSENAT–2018–09). 

13See Securities Exchange Act Release No. 87389 

(October 23, 2019), 84 FR 57904 (October 29, 2019) 

(SR–NYSECHX–2019–15). 

14See Securities Exchange Act Release No. 87389 

(October 23, 2019), 84 FR 57904 (October 29, 2019) 

(SR–NYSECHX–2019–15). 

15See Securities Exchange Act No. 92301 (June 

30, 2021), 86 FR 35845 (July 7, 2021) (SR– 

CboeBYX–2021–014). 

[16] [The Commission notes that its order 

approving the exchange’s proposal to offer the 

NYSE BQT feed states that the Commission believes 

that ‘‘a data feed offered by an exchange that 

contains that exchange’s own market data 

(including a feed that also contains data from other 

exchanges) is a ‘material aspect of the operation of 

the facilities of the self-regulatory organization,’ and 

that therefore, such a data product and any related 

fees are subject to the rule filing process of Section 

19(b) of the Act.’’ Securities Exchange Act Release 

No. 73554 (Nov. 6, 2014), 79 FR 67491, 67494 (Nov. 

13, 2014) (SR–NYSE–2014–40).] 

17These other data feeds are offered pursuant to 

pre-existing and already effective rules filed with 

the Commission; those rules will not be altered by 

this filing. 

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

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

20 15 U.S.C. 78k–1. 

21 17 CFR 242.603. 

American Trades,9 NYSE American 

BBO,10 NYSE National Trades,11 NYSE 

National BBO,12 NYSE Chicago 

Trades,13 and NYSE Chicago BBO.14

NYSE BBO, NYSE Arca BBO, NYSE 

American BBO, NYSE National BBO 

and NYSE Chicago BBO are existing 

data feeds that distribute on a real-time 

basis the same BBO information that 

NYSE, NYSE Arca, NYSE American, 

NYSE National and NYSE Chicago, 

respectively, report under the 

Consolidated Quotation (‘‘CQ’’) Plan for 

inclusion in the CQ Plan’s consolidated 

quotation information data stream. 

NYSE Trades, NYSE Arca Trades, NYSE 

American Trades, NYSE National 

Trades and NYSE Chicago Trades are 

existing data feeds that distribute on a 

real-time basis the same last sale 

information that NYSE, NYSE Arca, 

NYSE American, NYSE National and 

NYSE Chicago, respectively, report 

under the Consolidated Tape 

Association (‘‘CTA’’) Plan for inclusion 

in the CTA Plan’s consolidated data 

streams. Among other things, NYSE 

BQT also includes consolidated volume 

for all listed equity securities regardless 

of where the transaction was executed. 

Now, in addition to the information 

currently provided in NYSE BQT, the 

Exchange proposes to include the 

current day consolidated high and low 

price for all listed equity securities as 

obtained directly from the securities 

information processors (‘‘SIPs’’). The 

consolidated high and low price for all 

equity securities would be disseminated 

via NYSE BQT after the Consolidated 

Tape Association (‘‘CTA’’) and Unlisted 

Trading Privileges (‘‘UTP’’) Plan SIP 

delay period, which is currently 15 

minutes. Such information would 

provide NYSE BQT users with a static 

benchmark against which to compare 

price movements shown on NYSE BQT 

using high and low prices in the 

consolidated market. The Exchange’s 

proposal is in response to requests by 

subscribers using NYSE BQT, and also 

to recent changes by a competitor 

exchange to its end of day messages.15

The NYSE BQT data feed is offered in 

a capacity similar to that of a vendor.[16]

The Exchange, NYSE Arca, NYSE 

American, NYSE National and NYSE 

Chicago are the exclusive distributors of 

the 10 BBO and Trades feeds 17 from 

which certain data elements is taken to 

create the NYSE BQT. By contrast, the 

Exchange would not be the exclusive 

distributor of the aggregated and 

consolidated information that composes 

the NYSE BQT data feed. Other vendors 

would be able, if they chose, to create 

a data feed with the same information 

included in NYSE BQT, and to 

distribute it to clients with no greater 

latency than the Exchange would be 

able to distribute NYSE BQT. 

The Exchange proposes that this 

change become operative on October 18, 

2021. The Exchange is not proposing 

any change to the fees for NYSE BQT as 

a result of this modification. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) 18 of the Act (‘‘Act’’), in 

general, and furthers the objectives of 

Section 6(b)(5) 19 of the Act, in 

particular, in that 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, and it is not designed to 

permit unfair discrimination among 

customers, brokers, or dealers. This 

proposal is in keeping with those 

principles in that it promotes increased 

transparency through the dissemination 

of the NYSE BQT market data feed to 

those interested in receiving it. The 

NYSE BQT data feed is a product that 

relies on the Exchange’s receipt of 

underlying data, which is available to 

all market participants, before it can 

aggregate and consolidate information to 

create the NYSE BQT; this is a process 

that a vendor could also perform. 

Accordingly, the Exchange is not the 

only distributor of the NYSE BQT data 

feed. 

The Exchange also believes that the 

proposed rule change is consistent with 

Section 11(A) of the Act 20 in that it 

supports (1) fair competition among 

brokers and dealers, among exchange 

markets, and between exchange markets 

and markets other than exchange 

markets and (2) the availability to 

brokers, dealers, and investors of 

information with respect to quotations 

for and transactions in securities. 

Furthermore, the Exchange believes 

that the proposed rule change is 

consistent with Rule 603 of Regulation 

NMS,21 which provides that any 

national securities exchange that 

distributes information with respect to 

quotations for or transactions in an NMS 

stock do so on terms that are not 

unreasonably discriminatory. In 

adopting Regulation NMS, the 

Commission granted self-regulatory 

organizations and broker dealers 

increased authority and flexibility to 

offer new and unique market data to 

consumers of such data. It was believed 

that this authority would expand the 

amount of data available to users and 

consumers of such data and also spur 

innovation and competition for the 

provision of market data. 

The proposed rule change is designed 

to promote just and equitable principles 

of trade and remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system by identifying the consolidated 

high and low price for all listed equity 

securities as obtained directly from the 

SIPs. Such information would provide 

NYSE BQT users with a static 

benchmark against which to compare 

price movements shown on NYSE BQT 

using high and low prices in the 

consolidated market. Therefore, the 

consolidated high and low price for 

listed equity securities would provide 

meaningful information to investors. 

The Exchange also believes this 

proposal is consistent with Section 

6(b)(5) of the Act because it protects 

investors and the public interest and 

promotes just and equitable principles 

of trade by providing investors with 

new options for receiving such 


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Federal Register / Vol. 86, No. 180 / Tuesday, September 21, 2021 / Notices 52507 

22See, note 15, supra. 

23 15 U.S.C. 78f(b)(8). 

24See, note 15, supra. 

25See CTA Consolidated Volume Display Policy 

with FAQ at https://www.ctaplan.com/publicdocs/ 

ctaplan/notifications/traderupdate/CTA%20

Consolidated%20Volume%20Policy%20FAQ.pdf. 

26 15 U.S.C. 78s(b)(3)(A)(iii). 

27 17 CFR 240.19b–4(f)(6). 

28 15 U.S.C. 78s(b)(3)(A)(iii). 

29 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of 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 fulfilled this requirement. 30 15 U.S.C. 78s(b)(2)(B). 

information. As noted above, another 

exchange currently provides 

consolidated high and low price 

information in their competing market 

data products.22 Therefore, the 

Exchange believes the proposed rule 

change removes impediments to and 

perfects the mechanism of a free and 

open market and a national market 

system, and, in general, protects 

investors and the public interest as it 

would provide an additional avenue for 

investors to receive this information 

from a competing product. 

In addition, this proposal would not 

permit unfair discrimination because 

NYSE BQT will continue to be available 

to all of the Exchange’s customers 

through SFTI and market data vendors 

on an equivalent basis. In addition, any 

customer that wished to continue to be 

able to purchase one or more of the 

individual underlying data feeds would 

be able to do so. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

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

the Act,23 the Exchange does not believe 

that the proposed rule change will 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

The Exchange believes that the 

proposed rule change will enhance 

competition because it would enable the 

Exchange to include the consolidated 

high and low price as part of NYSE 

BQT, thereby enabling it to better 

compete with similar market data 

products offered by another exchange 

that includes such information.24 As 

noted above, the Exchange already 

offers NYSE BQT and this proposed rule 

change simply amends the content of 

the current market data product to 

include the consolidated high and low 

price for all listed equity securities. The 

Exchange is not the exclusive 

distributor of the consolidated high and 

low price information that would 

compose the amended NYSE BQT data 

feed. Vendors would be able, if they 

chose, to create a data feed with the 

same information as NYSE BQT and 

distribute it to their clients on a levelplaying field with respect to latency and 

cost as compared to the Exchange’s 

product. Specifically, a competing 

vendor could receive the consolidated 

high and low price from the SIPs and 

include that information as part of their 

market data products to be disseminated 

to customers pursuant to the same terms 

and policies as the Exchange.25

The Exchange believes the proposal 

will have no impact on intramarket 

competition as the proposal is not 

targeted at, or expected to be limited in 

its applicability to, any particular 

segment of market participants and no 

segment of retail investors, the general 

investing public, or any other market 

participant is expected to benefit more 

than any other. Therefore, the Exchange 

believes the inclusion of the 

consolidated high and low price in 

NYSE BQT would not impose any 

burden on competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

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 Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 26 and Rule 

19b–4(f)(6) thereunder.27 Because the 

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 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 28 and Rule 

19b–4(f)(6)(iii) thereunder.29

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) 30 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– 

NYSE–2021–51 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–NYSE–2021–51. 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 


lotter on DSK11XQN23PROD with NOTICES1
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 


lotter on DSK11XQN23PROD with NOTICES1