Document ID: SEC-2022-1414-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Chicago, Inc.
Posted Date: 2022-10-31T04:00Z

[Federal Register Volume 87, Number 209 (Monday, October 31, 2022)]
[Notices]
[Pages 65626-65628]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-23580]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96150; File No. SR-NYSECHX-2022-23]

Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Commentary .01 of Article 6, Rule 13

October 25, 2022.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that, on October 11, 2022, the NYSE Chicago, Inc. (``NYSE Chicago'' or 
the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I 
and II 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Commentary .01 of Article 6, Rule 13 
to add text inadvertently omitted when the rule was adopted. 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 amend Commentary .01 of Article 6, Rule 13

[[Page 65627]]

(Registration Requirements) to add text inadvertently omitted when the 
rule was adopted.
Proposed Rule Change
    In 2018, the Exchange adopted Article 6, Rule 13 regarding 
registration requirements and related Commentary.\4\ Article 6, Rule 13 
provides that each person engaged in the investment banking or 
securities business of a Participant must register with the Exchange as 
a representative or principal in each category of registration 
appropriate to his or her functions and responsibilities as specified 
in Article 6, Rule 14 (Registration Categories), unless exempt from 
registration pursuant to Article 6, Rule 15 (Associated Persons Exempt 
from Registration). Article 6, Rule 13 also provides that such person 
is not qualified to function in any registered capacity other than that 
for which the person is registered, unless otherwise stated in the 
rules.
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    \4\ See Securities Exchange Act Release No. 84896 (December 20, 
2018), 83 FR 67376 (December 28, 2018) (SR-CHX-2018-07) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Regarding 
Qualification, Registration and Continuing Education Requirements 
Applicable to Participants).
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    Commentary .01 to Article 6, Rule 13 provides for permissive 
registrations, and was adopted in order for the Exchange to harmonize 
its rules with the rules of the Financial Regulatory Authority, Inc. 
(``FINRA'').\5\ The rule permits any associated person to obtain and 
maintain any registration permitted by a Participant. As adopted, the 
first sentence of Commentary .01 provides as follows:
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    \5\ See id., 83 FR at 67377.

    A Participant may make application for or maintain the 
registration as a representative or principal of any associated 
person of a Participant and any individual engaged in the securities 
business of a foreign securities affiliate or subsidiary of the 
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Participant.

    The Exchange inadvertently omitted the words ``investment banking 
or'' immediately before ``securities business''. The omitted text 
mirrors the language of FINRA Rule 1210.02 and Commentary .01 of Rule 
2.1210 adopted by the Exchange's affiliates New York Stock Exchange, 
Inc., and NYSE American LLC.\6\ As proposed, the first sentence of 
Commentary .01 of Article 6, Rule 13 would read as follows (new text 
italicized):
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    \6\ See FINRA Rule 1210.02; NYSE Rule 1210, Commentary .01; NYSE 
American Rule 1210, Commentary .01.

    A Participant may make application for or maintain the 
registration as a representative or principal of any associated 
person of a Participant and any individual engaged in the investment 
banking or securities business of a foreign securities affiliate or 
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subsidiary of the Participant.

    The Exchange does not propose any additional changes to the text of 
Article 6, Rule 13.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (the ``Act''),\7\ in general, and 
furthers the objectives of Section 6(b)(5),\8\ in particular, because 
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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change would remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system and, in general, protect investors and the 
public interest because the proposed conforming change would add 
clarity, transparency and consistency to the Exchange's registration 
rules. The Exchange believes that market participants would benefit 
from the increased clarity, thereby reducing potential confusion. 
Similarly, the Exchange believes that the proposed changes would also 
make the Exchange's registration rules more consistent with the rules 
of its affiliates, thereby ensuring that persons subject to the 
Exchange's jurisdiction, regulators, and the investing public can more 
easily navigate and understand the Exchange's rules.

B. Self-Regulatory Organization's Statement on Burden on Competition

    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 proposed rule change is 
not intended to address competitive issues but rather is concerned 
solely with amending the registration rules to make a conforming change 
to add text inadvertently omitted when the rules were adopted.

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 \9\ and Rule 19b-4(f)(6) thereunder.\10\ 
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) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\12\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposed 
rule change may become operative immediately upon filing. The 
Commission believes that because this rule change better harmonizes the 
exchange's rules with those of FINRA, waiver of the 30-day operative 
delay for this proposed rule change is consistent with the protection 
of investors and the public interest. Accordingly, the Commission 
hereby waives the 30-day operative delay and designates the proposed 
rule change operative upon filing.\13\
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule change's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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

[[Page 65628]]

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.
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    \14\ 15 U.S.C. 78s(b)(2)(B).
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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 [email protected]. Please include 
File Number SR-NYSECHX-2022-23 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-NYSECHX-2022-23. 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-NYSECHX-2022-23 and should be submitted 
on or before November 21, 2022.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-23580 Filed 10-28-22; 8:45 am]
BILLING CODE 8011-01-P