34736 Federal Register / Vol. 87, No. 109 / Tuesday, June 7, 2022 / Notices 

107See FINRA Response Letter, at 6. 

108 Id.; see also Paragraph 4 of NYSE Rule 

Interpretation 409T(a)/06. 

109See FINRA Response Letter, at 7. 

110 Id. 

111For example, NYSE Rule 409T(b) and 

Supplementary Material .10 to NYSE Rule 409T 

allow for the suppression of trade confirmations, 

and NYSE Rule 409T(g) provides that members 

organizations carrying margin accounts for 

customers should send duplicate copies of monthly 

statements of guaranteed accounts to the respective 

guarantors unless the guarantors have specifically 

declared in writing that they do not want such 

statements sent to them. Because the delivery 

requirements of confirmations are governed by 

Exchange Act Rule 10b–10 (Confirmation of 

Transactions) and FINRA Rule 2232 (Customer 

Confirmations), and the general requirements of 

proposed Supplementary Material .02 cover 

duplicate delivery issues, FINRA is not 

incorporating these provisions into Supplementary 

Material .02. Moreover, NYSE Rule 409T(e)(1) 

requires a legend on account statements notifying 

customers that this member organization’s financial 

statements are available for inspection upon 

request. Because Exchange Act Rule 17a–5(c) 

(Reports to be Made by Certain Brokers and Dealers) 

and FINRA Rule 2261 (Disclosure of Financial 

Condition) contain similar provisions, FINRA is not 

incorporating these provisions. Additionally, 

Supplementary Material .01(7) to NYSE Rule 409T 

states that upon the written instructions of a 

customer and with the written approval of a 

member or supervisor of a member organization, a 

member organization may, under certain 

circumstances, hold mail for a customer who will 

not be at his usual address for the period of his 

absence, and NYSE Rule Interpretation 409T(b)/01 

provides guidelines for holding confirmations, 

statements, and broker-dealer financial statements 

for foreign customers. FINRA members’ obligations 

concerning these activities are addressed in FINRA 

Rule 3150 (Holding of Customer Mail) and, thus, 

FINRA would not incorporate these provisions. 

NYSE Rule Interpretation 409T(a)/03 addresses the 

allocation of responsibilities when using third 

parties to prepare and transmit account to 

customers statements. These arrangements are 

addressed in FINRA Rule 4311 (Carrying 

Agreements) and other FINRA guidance, and, thus, 

would also not be incorporated. See Notice, 86 FR 

at 55646. 

112For example, NYSE Rule 409T.10(1) through 

(6) provide exceptions to the requirements of NYSE 

Rule 409T(b) for persons having powers of attorney. 

As described above, proposed Supplementary 

Material .02 would provide a narrower exception 

for court-appointed fiduciaries. FINRA is therefore 

not incorporating these NYSE terms into 

Supplementary Material .02. See Notice, 86 FR at 

55646. 

113See Notice, 86 FR at 55646. 

114 15 U.S.C. 78s(b)(2). 

115 17 CFR 200.30–3(a)(12). 

FINRA stated that proposed 

Supplementary Material .08 is not 

intended to alter the substantive terms 

or existing guidance pertaining to the 

current NYSE requirements governing 

the use of summary statements.107

Accordingly, proposed Supplementary 

Material .08 would not impact how 

firms currently comply with the 

supplemental obligations.108 FINRA 

also stated that its description of 

proposed Supplementary Material .08 in 

the Notice does not change the proposed 

requirements of that supplementary 

material.109 Accordingly, FINRA stated 

that similar to NYSE Rule Interpretation 

409T(a)/06, under proposed 

Supplementary Material .08, a ‘‘clearing 

firm’’ must be a party to a written 

agreement with each other person 

jointly providing its respective customer 

account statements.110

Proposed Supplementary Material .08 

would establish summary statement 

disclosure requirements for all FINRA 

members (rather than just NYSE 

members). These summary statement 

disclosure requirements (e.g., that the 

summary statement is provided for the 

customer’s convenience, does not 

replace other statements, identifies 

where assets are held, and which 

entities are SIPC members) would 

protect investors by clarifying key 

information about the investors’ assets 

to help them evaluate their investments. 

Accordingly, for the reasons set forth 

above, the Commission finds that 

proposed Supplementary Material .08 is 

designed to protect investors and is in 

the public interest. 

I. Proposed Deletion of NYSE Rule 409T 

and NYSE Rule Interpretation 409T 

FINRA stated that the proposed rule 

change would delete the NYSE 

Provisions in their entirety on the basis 

that they are duplicative of other 

existing rules,111 are outdated,112 or the 

underlying concepts in these provisions 

will have been included in the proposed 

Supplementary Materials to Rule 

2231.113 As discussed more fully above, 

the Commission finds that maintaining 

two versions of substantially similar 

rules could cause confusion and 

undermine firm compliance with their 

obligations regarding providing account 

statements to their customers, which 

could erode investor protections. For 

the reasons set forth above, the 

Commission finds that the proposed 

deletion of the NYSE Provisions is 

designed to protect investors and is in 

the public interest. 

IV. Conclusion 

It is therefore ordered pursuant to 

Section 19(b)(2) of the Exchange Act 114

that the proposed rule change (SR– 

FINRA–2021–024), as modified by 

Amendment No. 1, be, and hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.115

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–12169 Filed 6–6–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–447, OMB Control No. 

3235–0504] 

Proposed Collection; Comment 

Request; Extension: Rule 19b–4(e) and 

Form 19b–4(e) 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street, NE, Washington, DC 

20549–2736. 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the existing collection of information 

provided for in Rule 19b–4(e) (17 CFR 

240.19b–4(e)) under the Securities 

Exchange Act of 1934 (15 U.S.C. 78a et 

seq.) (the ‘‘Act’’). The Commission plans 

to submit this existing collection of 

information to the Office of 

Management and Budget (‘‘OMB’’) for 

extension and approval. 

Rule 19b–4(e) permits a selfregulatory organization (‘‘SRO’’) to list 

and trade a new derivative securities 

product without submitting a proposed 

rule change pursuant to Section 19(b) of 

the Act (15 U.S.C. 78s(b)), so long as 

such product meets the criteria of Rule 

19b–4(e) under the Act. However, in 

order for the Commission to maintain an 

accurate record of all new derivative 

securities products traded on the SROs, 

Rule 19b–4(e) requires an SRO to file a 

summary form, Form 19b–4(e), to notify 

the Commission when the SRO begins 

trading a new derivative securities 

product that is not required to be 

submitted as a proposed rule change to 

the Commission. Form 19b–4(e) should 

be submitted within five business days 

after an SRO begins trading a new 

derivative securities product that is not 

required to be submitted as a proposed 

rule change. In addition, Rule 19b–4(e) 

requires an SRO to maintain, on-site, a 

copy of Form 19b–4(e) for a prescribed 

period of time. 

This collection of information is 

designed to allow the Commission to 

maintain an accurate record of all new 

derivative securities products traded on 

the SROs that are not deemed to be 

proposed rule changes and to determine 

whether an SRO has properly availed 

itself of the permission granted by Rule 

19b–4(e). The Commission reviews SRO 

compliance with Rule 19b–4(e) through 

its routine inspections of the SROs. 

The respondents to the collection of 

information are SROs (as defined by the 

Act), all of which are national securities 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 109 / Tuesday, June 7, 2022 / Notices 34737 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5Capitalized terms not defined herein are defined 

in the Rules, available at https://dtcc.com/∼/media/ 

Files/Downloads/legal/rules/nscc_rules.pdf. 

6See Rule 5, Section 2, supra note 5, which 

requires that a Limited Member appoint a 

representative that is duly authorized in the name 

and on behalf of the Limited Member to sign all 

instruments, correct errors and to perform such 

other duties as may be required under the Rules and 

the Procedures and to transact all business requisite 

in connection with the operations of NSCC. 

7See Rule 2, supra note 5, which describes 

various NSCC membership types. 

8 Id. 

9See Addendum D of the Rules, supra note 5. 

10See Addendum D of the Rules, supra note 5. 

exchanges. As of April 8, 2022 there 

were 24 entities registered as national 

securities exchanges with the 

Commission. The Commission receives 

an average total of 2,331 responses per 

year, which corresponds to an estimated 

annual hour burden of approximately 

2,331 hours (2,331 responses × 1 hour 

per response). At an average hourly cost 

of $72, the aggregate related internal 

cost of compliance for Rule 19b–4(e) is 

approximately $167,832 per year (2,331 

burden hours multiplied by $72/hour). 

Compliance with Rule 19b–4(e) is 

mandatory. Information received in 

response to Rule 19b–4(e) shall not be 

kept confidential; the information 

collected is public information. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimate of the burden of the collection 

of information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

by August 8, 2022. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

Please direct your written comments 

to: David Bottom, Acting Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o John 

Pezzullo, 100 F Street NE Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. 

Dated: June 1, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–12158 Filed 6–6–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95021; File No. SR–NSCC– 

2022–007] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Revise the Voluntary 

Termination Provisions of the NSCC 

Rules for Limited Members 

June 1, 2022. 

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 May 27, 

2022, National Securities Clearing 

Corporation (‘‘NSCC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II and III 

below, which Items have been prepared 

by the clearing agency. NSCC filed the 

proposed rule change pursuant to 

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

subparagraph (f)(6) 4 of Rule 19b–4 

thereunder. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change of NSCC 

consists of modifications to NSCC’s 

Rules & Procedures (the ‘‘Rules’’) 5 to 

revise the voluntary termination 

provisions of the Rules in order to 

provide that a Limited Member may be 

deemed to have voluntarily terminated 

its membership if NSCC is unable to 

contact the Limited Member’s 

authorized representatives, and the 

Limited Member has not used NSCC’s 

services for at least 6 months. The 

proposed changes are described in 

greater detail below. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, the 

clearing agency 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 

clearing agency has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

The proposed rule change consists of 

modifications to the voluntary 

termination provisions of the Rules in 

order to provide that a Limited Member 

may be deemed to have voluntarily 

terminated its membership if NSCC is 

unable to contact an authorized 

representative of the Limited Member, 

as designated by the participant 

pursuant to Rule 5,6 and there has been 

no activity in the account by the 

participant for at least 6 months. The 

proposed changes are described in 

greater detail below. 

(i) NSCC Membership Types/Limited 

Members 

NSCC has several types of 

membership with different access levels 

to services.7 Generally, such 

membership types can be categorized 

into ‘‘Members’’ which are full-service 

participants that have access to NSCC’s 

central counterparty services and 

‘‘Limited Members’’ whose access to 

services is limited to certain services by 

membership type specified by NSCC.8

The services available for Limited 

Members are ‘‘non-guaranteed’’ 

services—meaning that NSCC does not 

act as a central counterparty or 

guarantee payments for transactions 

conducted through these services.9 If a 

Limited Member using non-guaranteed 

services fails to pay for a transaction at 

settlement, NSCC does not guarantee the 

payment and may reverse in whole or in 

part any credit previously given to the 

contra side.10 As a result, NSCC bears 

less risk for payments relating to nonguaranteed services than it does for 

payments relating to its guaranteed 

services. 

(ii) NSCC Termination Provisions 

NSCC has several Rules relating to the 

termination of a Limited Member’s 

membership. Those Rules include 


jspears on DSK121TN23PROD with NOTICES1