Document ID: SEC-2022-0144-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE American, LLC
Posted Date: 2022-01-31T05:00Z

[Federal Register Volume 87, Number 20 (Monday, January 31, 2022)]
[Notices]
[Pages 4988-4990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01846]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94048; File No. SR-NYSEAMER-2022-01]

Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change of Non-
Substantive Conforming Changes to Rule 9120 and Rule 9560

January 25, 2022.
    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 January 10, 2022, NYSE American LLC (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 the 
Substance of the Proposed Rule Change

    The Exchange proposes non-substantive conforming changes to Rule 
9120 and Rule 9560. 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 Exchange 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 non-substantive conforming changes to Rule 
9120 (Definitions) and Rule 9560 (Expedited Suspension Proceeding) of 
the Exchange's disciplinary rules.
    In 2016, the Exchange adopted rules relating to investigation, 
discipline, sanction, and other procedural rules based on the rules of 
its affiliate New York Stock Exchange LLC and the Financial Industry 
Regulatory Authority (``FINRA'').\4\ Rule 9120 defines certain terms 
used in the Exchange's disciplinary rules, including ``Department of 
Market Regulation'' in paragraph (i) and ``Enforcement'' in paragraph 
(m). The definition of Enforcement in Rule 9120(m) includes the 
Department of Market Regulation of FINRA as defined in Rule 9120(i).
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    \4\ See Securities Exchange Act Release No. 77241 (February 26, 
2016), 81 FR 11311 (March 3, 2016) (SR-NYSEMKT-2016-30).
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    In 2018, FINRA created a unified enforcement function and 
eliminated the separate enforcement function in the Department of 
Market Regulation.\5\ In order to reflect FINRA's revised 
organizational structure, the Exchange accordingly proposes to delete 
the definition of Department of Market Regulation in Rule 9120(i) and 
mark paragraph (i) ``Reserved'' in order to maintain the Rule's 
sequencing. In addition, the Exchange proposes to delete Department of 
Market Regulation

[[Page 4989]]

of FINRA from the definition of Enforcement in Rule 9120(m). As 
proposed, Rule 9120(m) would provide that the term ``Enforcement'' 
refers to (A) any department reporting to the Chief Regulatory Officer 
(defined as ``CRO'') of the Exchange with responsibility for 
investigating or, when appropriate after compliance with the Rule 9000 
Series, imposing sanctions on a member organization or covered person 
and (B) the Department of Enforcement of FINRA.
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    \5\ See ``FINRA Announces Enforcement Structure, Senior 
Leadership Team,'' July 26, 2018, available at https://www.finra.org/media-center/news-releases/2018/finra-announces-enforcement-structure-senior-leadership-team.
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    Rule 9560 sets forth procedures for issuing suspension orders to 
immediately prohibit persons from conducting, or providing access to 
the Exchange to conduct, disruptive quoting and trading activity. Rule 
9560(c)(1) & (2), (d)(1) and (e) use the term ``Chairman of the Hearing 
Panel.'' This term is not defined in the disciplinary rules or used in 
Rule 476, the Exchange's legacy disciplinary rules. The references to 
Chairman of the Hearing Panel in Rule 9560(c)(1) & (2), (d)(1) and (e) 
are incorrect and should be replaced with ``Hearing Officer,'' defined 
in Rule 9120(r) as a FINRA employee who is an attorney appointed by the 
Chief Hearing Officer to adjudicate and fulfill various adjudicative 
responsibilities and duties as described in, among other rules, the 
Rule 9550 Series regarding expedited proceedings. The use of ``Hearing 
Officer'' would be consistent with the rules adopted by the Exchange's 
other affiliates, which use ``Hearing Officer'' in their version of 
Rule 9560.\6\
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    \6\ See NYSE Rule 9560(c)(1) & (2), (d)(1) & (e); NYSE National 
Rule 10.9560(c)(1) & (2), (d)(1) & (e).
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of 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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    In particular, the Exchange believes that the proposed non-
substantive conforming changes 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 non-substantive changes would add clarity, transparency and 
consistency to the Exchange's rules. The Exchange believes that market 
participants would benefit from the increased clarity, thereby reducing 
potential confusion and 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 is rather concerned with 
making non-substantive conforming changes to the Exchange rules.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative 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 \9\ and Rule 19b-4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 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 satisfied this requirement.
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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 the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings 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 [email protected]. Please include 
File Number SR-NYSEAMER-2022-01 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-NYSEAMER-2022-01. 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-NYSEAMER-2022-01 and

[[Page 4990]]

should be submitted on or before February 22, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-01846 Filed 1-28-22; 8:45 am]
BILLING CODE 8011-01-P