Federal Register / Vol. 87, No. 129 / Thursday, July 7, 2022 / Notices 40567 

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)(2). 

5 17 CFR 240.19b–4(f)(4). 

6Capitalized terms used herein and not otherwise 

defined shall have the meaning assigned to such 

terms in the Rules, available at http://dtcc.com/∼/ 

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

7 I&RS Data is data and information relating to 

I&RS Eligible Products. Section 1.(a) of Rule 57, 

supra note 6. An ‘‘I&RS Eligible Product’’ means 

insurance products, retirement or other benefit 

plans or programs that are identified by NSCC as 

eligible for processing through its I&RS. See 

Definition of I&RS Eligible Product, Rule 1 and 

Section 1.(d) of Rule 3, id. 

assessment rules. The staff estimates 

that drafting the required organizational 

chart requires one hour and establishing 

a system for complying with the risk 

assessment rules requires three hours. 

Based on the reduction in the number 

of filers in recent years, the staff 

estimates there will be zero new 

respondents, and thus, a corresponding 

estimated burden of zero hours for new 

respondents. Thus, the total compliance 

burden per year is approximately 5,640 

burden hours (2,350 hours + 3,290 

hours). 

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 will 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 

in writing within 60 days of this 

publication by September 6, 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, 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 30, 2022. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2022–14392 Filed 7–6–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95188; File No. SR–NSCC– 

2022–008] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Decommission the 

Insurance Profile Service, Adjust Fees 

for Insurance Information Exchange 

Service and Make Certain Other 

Corrections in the Rules 

June 30, 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 June 23, 

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) of the Act 3 and 

subparagraphs (f)(2) 4 and (f)(4) 5 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 

(a) The proposed rule change of NSCC 

is annexed [sic] hereto as Exhibit 5 and 

consists of modifications to Rule 57 and 

Addendum A of NSCC’s Rules & 

Procedures (‘‘Rules’’) in order to (i) 

decommission the Insurance Profile 

service, (ii) adjust the fees for the 

Insurance Information Exchange service 

(‘‘IIEX’’) to (a) provide for fees for 

product data that is being moved from 

Insurance Profile to IIEX and (b) adjust 

certain fees for service providers and 

(iii) make certain other corrections to 

the Rules, as described below.6

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 

NSCC is proposing to move the 

processing of certain product data that 

is currently being processed through 

Insurance Profile to IIEX and 

decommission Insurance Profile. 

Following the proposed changes, 

product data that is currently being 

processed through Insurance Profile will 

be processed through IIEX. The fees for 

the use of IIEX for processing of such 

product data will be moved to IIEX in 

Addendum A of the Rules but will 

remain the same as the fees currently 

charged for the processing of such 

product data through Insurance Profile. 

NSCC is also proposing to remove fees 

for service providers using IIEX for 

policy data and proposing to add fees 

for service providers using IIEX for 

product data. 

Finally, NSCC is proposing to correct 

incorrect references to ‘‘IPS’’ and ‘‘IPS 

Data’’ in the Rules. 

The proposed changes would not 

have a substantial impact on I&RS 

Members (as defined below). I&RS 

Members would use IIEX rather than 

Insurance Profile to process product 

data, but the fees for processing such 

product data would not change. 

Following the proposed changes, service 

providers would be charged for 

processing product data using IIEX but 

would not be charged for processing 

policy data through IIEX. 

(a) Background 

Insurance and Retirement Processing 

Services (‘‘I&RS’’) provides for 

transmission of I&RS Data,7 including 

annuity and life insurance policy 

applications and premiums, licensing 

and appointments, fees and expenses, 

commission payments, reporting of 

client positions and valuations, asset 

pricing, financial activity reporting and 

annuity customer account transfers. 

Entities that use I&RS services include 


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8Carriers disclose commissions that are paid to 

producers for sales of particular products. The 

commissions are disclosed in commission 

schedules that list the particular products and 

commissions that are associated with the products. 

9See Securities Exchange Act Release No. 80404 

(April 7, 2017), 82 FR 17916 (April 13, 2017) (SR– 

NSCC–2017–003) (‘‘Insurance Profile Filing’’). See 

also Rule 57, Section 10, supra note 6. 

10See Securities Exchange Act Release No. 90092 

(October 5, 2020), 85 FR 64182 (October 9, 2020) 

(SR–NSCC–2020–017) (‘‘IIEX Filing’’). See also Rule 

57, Section 11, supra note 6. 

11 Id. 

12 Id. 

13 Id. 

14See Section IV.H.2.j of Addendum A of the 

Rules and Rule 57, Section 11, supra note 6. 

15See IIEX Filing, supra note 10. 

(i) insurance companies that are 

Insurance Carrier/Retirement Services 

Members (‘‘Carriers’’); and (ii) Carriers’ 

intermediaries, such as broker-dealers, 

banks and insurance agencies, that are 

Members, Mutual Fund/Insurance 

Services Members and Data Services 

Only Members that distribute 

participating Carriers’ insurance 

products (collectively, ‘‘Distributors,’’ 

and, together with ‘‘Carriers,’’ 

collectively referred to herein as ‘‘I&RS 

Members’’). The aim of I&RS is to 

automate and provide seamless end-toend communication between Carriers, 

Distributors and their service providers 

for the sale, processing and money 

settlement of insurance and annuity 

products nationwide. 

I&RS Data can be categorized 

generally into three types of data: 

product data, policy data and producer 

data. Product data is general public data 

relating to products that are being 

issued by Carriers, such as fees and 

expenses for specific policies and 

commission schedule data 8 relating to 

the products. Policy data is data relating 

to specific insurance and annuity 

policies that have been issued to clients 

based on those products, such as the 

names and identifying information of 

the parties to the contract (i.e., owner, 

insured, beneficiary), policy value, 

certain features of the policies that were 

issued, the names of the licensed agents 

that are authorized to sell such policies 

(i.e., the ‘‘producers’’) and the type of 

policy (e.g., annuity, life insurance 

policy, etc.). Producer data is 

information relating to the producers 

that are authorized to sell the products 

such as which producers have been 

appointed to sell particular products 

and where the producers are licensed to 

sell the products. 

(b) Insurance Profile/IIEX 

Insurance Profile was launched in 

2017 to enable annuities Distributors to 

access fee, expense and commission 

schedule data (‘‘Fee Data’’) from Carriers 

which is product data.9 The service is a 

data repository that allows I&RS 

Members to access and exchange Fee 

Data. 

IIEX was launched in 2020 to enable 

I&RS Members and service providers to 

access and exchange I&RS Data.10 IIEX 

is also a data repository but was built on 

a different platform than Insurance 

Profile and was not limited to 

processing Fee Data.11 In addition, IIEX 

was built to be accessible by an 

Application Programming Interface 

(‘‘API’’) specifically for use with IIEX 

and is available to service providers.12

Although the Rules provide that IIEX is 

available to transmit, view and retrieve 

I&RS Data, currently IIEX has been used 

only to process I&RS Data that is policy 

data. 

NSCC would like to use the IIEX 

platform to process the Fee Data that is 

currently being processed through 

Insurance Profile because it is 

inefficient to continue to have two data 

repositories. IIEX is a newer platform 

that is API-enabled. NSCC believes that 

consolidating the data repository 

services onto one platform will be more 

efficient because I&RS Members will 

only need to sign into one platform 

rather than two. Using IIEX alone rather 

than continuing to use Insurance Profile 

would create a better user experience, 

take advantage of newer and better 

technology, such as the API-enabled 

platform and updated user interfaces 

that enhance the user experience by, 

among other things, offering a singleentry point into upgraded, standardized 

data screens and client flexibility in 

determining level of authorization to 

access. In addition, IIEX has been 

designed to include an architecture 

modernization by developing reusable 

components to be used across I&RS 

applications. Discontinuing Insurance 

Profile would also eliminate 

unnecessary regression and other 

system testing that is required if 

Insurance Profile maintained as a 

separate platform. 

Once the Fee Data is processed 

through IIEX, the Insurance Profile 

platform would no longer be used to 

process data. Therefore, NSCC is 

proposing to decommission Insurance 

Profile. NSCC would process all Fee 

Data on the IIEX platform beginning on 

June 30, 2022. NSCC would not change 

the fees that it is currently charging 

I&RS Members to access and exchange 

the Fee Data through Insurance Profile 

once such data is moved to the IIEX 

platform. NSCC would provide updates 

to I&RS Members on the timing of the 

proposed changes by Important Notice. 

(c) IIEX and Service Providers 

IIEX was developed to allow service 

providers that were authorized by I&RS 

Members to access IIEX through APIs.13

Addendum A provides a fee schedule 

for service providers that use IIEX and 

Rule 57 provides that service providers 

that gain access to IIEX will be required 

to enter into an agreement which will 

include an agreement to pay the fees set 

forth in the Rules.14 Since the inception 

of IIEX, however, no services providers 

have agreed to sign up for IIEX and pay 

the fees. NSCC would like to encourage 

service providers to access IIEX because 

NSCC believes that when service 

providers use this IIEX, more I&RS 

Members would also use the service as 

counterparties to those service 

providers. Therefore, NSCC is proposing 

to remove the fees for service providers 

to use IIEX for transmitting policy data 

that is currently processed through IIEX. 

Currently, the Fee Data that is 

accessible through Insurance Profile is 

only available to I&RS Members and not 

to service providers. NSCC would like 

to also provide service providers with 

access to IIEX to process this Fee Data 

as well. Product data is more general 

than policy data, which is limited to 

specific clients, and NSCC believes that 

service providers would be more likely 

to pay for the use of IIEX for such 

product data. Therefore, NSCC is 

proposing to require that service 

providers that use IIEX for product data 

pay the current fees for such service, 

including for the Fee Data that will be 

moved from Insurance Profile to be 

processed through IIEX. 

(d) IIEX Product Data 

NSCC is proposing to identify the 

different categories for policy data and 

product data in the fee schedule in 

Addendum A of the Rules. Fees for 

processing the Fee Data, which is being 

moved from Insurance Profile to be 

processed through IIEX, would be 

placed under the product data category 

and fees for processing the existing 

policy data that is currently being 

processed through IIEX would be placed 

under the policy data category. 

(e) I&RS and I&RS Data 

In the IIEX Filing, NSCC also 

amended the Rules to change the name 

of I&RS from Insurance and Retirement 

Processing Services to Insurance & 

Retirement Services in order to reflect 

the conventional use of the name of the 

service.15 To reflect the name change, 

NSCC also changed defined terms 

relating to the service from ‘‘IPS’’ to 

‘‘I&RS’’ and from ‘‘IPS Data’’ to ‘‘I&RS 


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16 Id. 

17See Section 2.(f) of Rule 58, supra note 6. 

18 15 U.S.C. 78q–1(b)(3)(F) and (D). 

19 17 CFR 240.17Ad–22(e)(21). 

20 15 U.S.C. 78q–1(b)(3)(F). 

21 Id. 

22 Id. 

23 Id. 

24 15 U.S.C. 78q–1(b)(3)(D). 

Data’’.16 Rule 58 still contains an 

incorrect use of the defined terms IPS 

and IPS Data.17 Therefore, NSCC is 

proposing to correct the use of the 

defined terms ‘‘IPS’’ and ‘‘IPS Data’’ in 

Rule 58 to ‘‘I&RS’’ and ‘‘I&RS Data’’, 

respectively. 

(f) Proposed Rule Changes 

(1) Remove Insurance Profile 

NSCC is proposing to remove 

Insurance Profile from Section 10 of 

Rule 57 and remove references to the 

fees for Insurance Profile from Section 

IV.H.2.i of Addendum A. NSCC would 

renumber Section 11 of Rule 57 and 

Section IV.H.2.j of Addendum A to 

reflect the deletion of Section 10 of Rule 

57 and Section IV.H.2.i of Addendum A. 

(2) Adjust Fees for IIEX 

NSCC is proposing to move the fees 

for processing Fee Data currently in 

Insurance Profile to IIEX in proposed 

Section IV.H.2.i of Addendum A. NSCC 

would also add different categories of 

data in proposed Section IV.H.2.i of 

Addendum A with separate fees for 

policy data which would include the 

current IIEX fees, and product data 

which would include the fees currently 

in Insurance Profile with respect to Fee 

Data that would be moved to IIEX. With 

respect to the product data, NSCC 

would also add service providers to the 

list of entities that would have access in 

the proposed Section IV.H.2.i of 

Addendum A. 

To reflect that NSCC would stop 

charging fees for service providers to 

access policy data, as described above, 

but provide fees for service providers to 

access product data, NSCC would 

change proposed Section 10 of Rule 57 

to provide that the agreements with the 

service providers will include an 

agreement to pay the fees set forth in the 

Rules for product data for which service 

providers are required to pay a fee as set 

forth in the Rules. NSCC would also 

remove the fees for policy data for 

service providers in new proposed 

Section IV.H.2.i of Addendum A. 

(3) Correct Defined Terms 

NSCC is proposing to correct two 

references of ‘‘IPS Data’’ to ‘‘I&RS Data’’ 

and one reference of ‘‘IPS’’ to ‘‘I&RS’’ in 

Section 2.(f) of Rule 58 to reflect the 

correct defined terms. 

(g) Expected Member/NSCC Impact 

The proposed changes would not 

have a substantial impact on I&RS 

Members. I&RS Members would use 

IIEX rather than Insurance Profile to 

process product data. IIEX would 

include the IIEX API which is not 

currently available for Insurance Profile. 

The fees for processing such product 

data would not change. Following the 

changes, service providers would be 

charged the same fees as I&RS Members 

for processing product data using IIEX 

but would not be charged for processing 

policy data through IIEX. 

The changes to use the correct terms 

‘‘I&RS’’ and ‘‘I&RS Data’’ would have no 

impact on the I&RS Members except to 

enhance clarity and transparency of the 

Rules. 

(h) Implementation Timeline 

NSCC would implement the removal 

of the fees for service providers for 

policy data in IIEX and the corrections 

to the defined terms in Rule 58 upon 

filing of the proposed rule changes. 

NSCC would implement the removal 

of Insurance Profile and movement of 

the fees from Insurance Profile to IIEX 

on June 30, 2022. As proposed, a legend 

would be added to Rule 57 and 

Addendum A stating there are changes 

that became effective upon filing with 

the Commission but have not yet been 

implemented. The proposed legend also 

would include June 30, 2022, as the date 

on which such changes would be 

implemented and the file number of this 

proposal, and state that, once this 

proposal is implemented, the legend 

would automatically be removed from 

Rule 57 and Addendum A. 

2. Statutory Basis 

NSCC believes that the proposal is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a registered 

clearing agency. In particular, NSCC 

believes that the proposed rule changes 

are consistent with Sections 

17A(b)(3)(F) and (D) of the Act 18 and 

Rule 17Ad–22(e)(21) promulgated under 

the Act.19

Section 17A(b)(3)(F) of the Act,20

requires, in part, that the Rules be 

designed to promote the prompt and 

accurate clearance and settlement of 

securities transactions. The proposed 

changes to move the Fee Data from 

Insurance Profile to IIEX is consistent 

with this provision because such 

changes would enhance the ability of 

NSCC Members to access such data by 

using a more effective and user-friendly 

platform and by having access to APIs. 

In addition, NSCC believes that 

consolidating the data repository 

services onto one platform will be more 

efficient because I&RS Members will 

only need to sign into one platform 

rather than two. Also, removing the fees 

for service providers to access policy 

data and providing access to service 

providers for product data is expected to 

incentivize the use of IIEX by service 

providers which would have the effect 

of increasing the use by I&RS Members 

that are counterparties to the service 

providers. Providing a more efficient 

and streamlined process with respect to 

accessing such Fee Data and 

incentivizing the use of IIEX by service 

providers would promote the prompt 

and accurate clearance and settlement of 

securities transactions by NSCC, 

consistent with Section 17A(b)(3)(F) of 

the Act.21

Removing Insurance Profile from the 

Rules, adding the categories for policy 

data and product data and correcting the 

defined terms ‘‘IPS’’ and ‘‘IPS Data’’ to 

‘‘I&RS’’ and ‘‘I&RS Data’’, respectively, 

are also consistent with 17A(b)(3)(F) of 

the Act.22 Each of the proposed changes 

would enhance clarity and transparency 

for participants with respect to services 

offered by NSCC allowing I&RS 

Members to have a better understanding 

of the Rules relating to I&RS. Having 

clear and accurate Rules would help 

I&RS Members to better understand 

their rights and obligations regarding 

NSCC’s services. NSCC believes that 

when I&RS Members better understand 

their rights and obligations regarding 

NSCC’s services, they can act in 

accordance with the Rules. NSCC 

believes that better enabling I&RS 

Members to comply with the Rules 

would promote the prompt and accurate 

clearance and settlement of securities 

transactions by NSCC consistent with 

Section 17A(b)(3)(F) of the Act.23

Section 17A(b)(3)(D) of the Act 24

requires that the Rules provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

participants. NSCC believes that the 

proposed rule change to remove the fees 

for service providers to access policy 

data and to provide access to service 

providers to product data, and to add 

fees for such access, are consistent with 

this provision of the Act. NSCC believes 

the removal of fees for policy data 

would incentivize use of I&RS by 

services providers for policy data, 

which is not currently being utilized by 

service providers, and encourage use by 

I&RS Members. NSCC also believes that 

service providers are more likely access 

product data and to pay for such 


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25See Insurance Profile Filing, supra note 9. 

26 15 U.S.C. 78q–1(b)(3)(D). 

27 17 CFR 240.17Ad–22(e)(21). 28 Id. 

29 15 U.S.C. 78s(b)(3)(A). 

30 17 CFR 240.19b–4(f). 

product data, which is more general 

than policy data and could be used by 

service providers across multiple I&RS 

Member counterparties. 

NSCC believes the proposed changes 

to the fees are equitable because they 

would apply uniformly to all service 

providers that utilize the services and 

would not impact the fees being paid by 

I&RS Members. NSCC believes the 

proposed changes are reasonable 

because the fees that would be charged 

to service providers for product data 

would be the same fees that are being 

charged to I&RS Members that access 

such product data through I&RS, which 

are designed to align with the cost of 

delivering the feature.25 NSCC believes 

that removing fees for access to policy 

data is reasonable because it would 

incentivize the use of I&RS by service 

providers for such policy data which 

would be beneficial to the I&RS 

Members that are counterparties of such 

service providers. Therefore, by 

establishing fees that align with the cost 

of delivery of this feature and allocating 

those fees equitably among the 

subscribing users, including service 

providers, the proposed rule change 

would provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its participants 

consistent with the requirements of 

Section 17A(b)(3)(D) of the Act.26

In addition, the proposed rule change 

is designed to comply with Rule 17Ad– 

22(e)(21) promulgated under the Act.27

Rule 17Ad–22(e)(21) under the Act 

requires NSCC to, inter alia, establish, 

implement, maintain and enforce 

written policies and procedures 

reasonably designed to be efficient and 

effective in meeting the requirements of 

its participants and the markets it 

serves. The proposed rule change would 

enhance the ability of I&RS Members to 

access Fee Data by removing the 

Insurance Profile platform and 

providing a more efficient and 

streamlined platform with access to an 

API specifically for IIEX. In addition, 

removing the fees for service providers 

to access policy data and providing 

access to service providers for product 

data would incentivize the use of IIEX 

by service providers which NSCC 

believes will have the effect of 

increasing the use by I&RS Members 

that are counterparties to the service 

providers. Therefore, by establishing a 

more efficient and effective process for 

I&RS Members and their service 

providers to process I&RS Data, NSCC 

believes that the proposed changes are 

consistent with the requirements of Rule 

17Ad–22(e)(21), promulgated under the 

Act.28

(B) Clearing Agency’s Statement on 

Burden on Competition 

NSCC does not believe that the 

proposed rule changes would have an 

impact on competition. The proposed 

changes would merely facilitate I&RS 

Members access to Fee Data through the 

IIEX platform rather than the Insurance 

Profile platform. The fees for I&RS 

Members to access such information 

would not change. NSCC also does not 

believe that the removal of fees for 

service providers for policy information 

would burden competition because 

service providers are not currently using 

the service or paying fees. NSCC 

believes that removing the fees for 

service providers to access policy data 

and providing that service providers 

may have access to product data by 

paying the same fees as I&RS Members 

may promote competition by 

incentivizing service providers to use 

IIEX which NSCC believes would result 

in more I&RS Members using IIEX. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

NSCC has not received or solicited 

any written comments relating to this 

proposal. If any written comments are 

received by NSCC, they will be publicly 

filed as an Exhibit 2 to this filing, as 

required by Form 19b–4 and the General 

Instructions thereto. 

Persons submitting comments are 

cautioned that, according to Section IV 

(Solicitation of Comments) of the 

Exhibit 1A in the General Instructions to 

Form 19b–4, the Commission does not 

edit personal identifying information 

from comment submissions. 

Commenters should submit only 

information that they wish to make 

available publicly, including their 

name, email address, and any other 

identifying information. 

All prospective commenters should 

follow the Commission’s instructions on 

how to submit comments, available at 

https://www.sec.gov/regulatory-actions/ 

how-to-submit-comments. General 

questions regarding the rule filing 

process or logistical questions regarding 

this filing should be directed to the 

Main Office of the Commission’s 

Division of Trading and Markets at 

tradingandmarkets@sec.gov or 202– 

551–5777. 

NSCC reserves the right not to 

respond to any comments received. 

III. Date of Effectiveness of the 

Proposed Rule Change, and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A) 29 of the Act and paragraph 

(f) 30 of Rule 19b–4 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 formv(http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NSCC–2022–008 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–NSCC–2022–008. 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 


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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). 

4See CTA/CQ Approval Order and UTP Approval 

Order, infra note 10. 

5The ADF is a display-only facility operated by 

FINRA that provides FINRA members with a 

mechanism to display quotations and report overthe-counter (‘‘OTC’’) transactions in NMS stocks. 

6The TRFs provide FINRA members with a 

mechanism to report OTC transactions in NMS 

stocks. There are currently three active TRFs: (1) 

FINRA/Nasdaq TRF Carteret, (2) FINRA/Nasdaq 

TRF Chicago and (3) FINRA/NYSE TRF. While each 

TRF is operated by an affiliate of a registered 

national securities exchange, each TRF is a FINRA 

facility and subject to FINRA’s oversight. 

7Currently, there are two SIPs that are 

responsible for collecting, consolidating and 

disseminating quotation and transaction 

information in NMS stocks that is collected 

pursuant to the following three NMS plans: (1) the 

Joint Self-Regulatory Organization Plan Governing 

the Collection, Consolidation and Dissemination of 

Quotation and Transaction Information for NasdaqListed Securities Traded on Exchanges on an 

Unlisted Trading Privileges Basis (the ‘‘UTP Plan’’), 

(2) the Second Restatement of the CTA Plan (the 

‘‘CTA Plan’’), and (3) the Restated CQ Plan (the ‘‘CQ 

Plan’’ and, collectively with the UTP Plan and the 

CTA Plan, the ‘‘SIP Plans’’). FINRA and the national 

securities exchanges are participants of the SIP 

Plans (collectively, the ‘‘Participants’’). 

8Rule 6120(a) also requires members to promptly 

notify FINRA whenever they have knowledge of 

any matter related to an NMS stock or the issuer 

thereof that has not been adequately disclosed to 

Continued 

filing also will be available for 

inspection and copying at the principal 

office of NSCC and on DTCC’s website 

(https://dtcc.com/legal/sec-rulefilings.aspx). All comments received 

will be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–NSCC– 

2022–008 and should be submitted on 

or before July 28, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2022–14396 Filed 7–6–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95191; File No. SR–FINRA– 

2022–016] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend FINRA Rule 

6120 (Trading Halts) To Conform to 

Recent Amendments to the SIP Plans 

and To Make Technical and Clarifying 

Changes to the Rule 

June 30, 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 June 22, 

2022, the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

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 amend FINRA 

Rule 6120 (Trading Halts) to conform to 

recent amendments to the NMS plans 

governing the collection, consolidation 

and dissemination of quotation and 

transaction information for NMS stocks 

and to make technical and clarifying 

changes to the rule.4

The text of the proposed rule change 

is available on FINRA’s website at 

http://www.finra.org, at the principal 

office of FINRA 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, 

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 

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 

Background 

FINRA Rule 6120 provides FINRA 

with the authority to halt trading 

otherwise than on an exchange in NMS 

stocks under the circumstances 

specified in Rule 6120(a) and pursuant 

to the procedures set forth in Rule 

6120(b). Rule 6120(a)(1) provides that 

FINRA shall halt trading otherwise than 

on an exchange in any NMS stock 

whenever any market that has the 

authority to call a regulatory halt in the 

security imposes a trading halt, or 

suspends a listing, to: (a) permit 

dissemination of material news; (b) 

obtain information from the issuer 

relating to material news; (c) obtain 

information relating to the issuer’s 

ability to meet listing qualification 

requirements; or (d) obtain any other 

information that is necessary to protect 

investors and the public interest. 

In addition, Rule 6120(a)(2) provides 

that FINRA shall halt trading otherwise 

than on an exchange in any NMS stock 

when extraordinary market activity in 

the security is occurring, such as the 

execution of a series of transactions for 

a significant dollar value at prices 

substantially unrelated to the current 

market for the security, as measured by 

the national best bid or offer. To halt 

trading under this provision, FINRA 

must determine that such extraordinary 

market activity is likely to have a 

material effect on the market for the 

security and either (i) FINRA 

determines that such extraordinary 

market activity is caused by the misuse 

or malfunction of an electronic 

quotation, communication, reporting, or 

execution system operated by, or linked 

to, FINRA, or (ii) after consultation with 

a national securities exchange trading 

the security, FINRA determines that 

such extraordinary market activity is 

caused by the misuse or malfunction of 

an electronic quotation, communication, 

reporting, or execution system operated 

by, or linked to, such other national 

securities exchange. Rule 6120(a)(3) 

addresses FINRA’s authority to close its 

quotation display and trade reporting 

facilities for NMS stocks under specified 

circumstances. Specifically, Rule 

6120(a)(3) provides that FINRA shall 

close the Alternative Display Facility 

(‘‘ADF’’) 5 or any Trade Reporting 

Facility (‘‘TRF’’) 6 to quotation or trade 

reporting activity, as applicable, 

whenever the ADF or TRF is unable to 

transmit real-time trade reporting 

information to the applicable Securities 

Information Processor (SIP’’).7 If the 

ADF or any TRF closes pursuant to this 

provision, members are not prohibited 

from trading through other markets for 

which trading is not halted.8


khammond on DSKJM1Z7X2PROD with NOTICES