Document ID: SEC-2020-0161-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE National, Inc.
Posted Date: 2020-02-05T05:00Z

[Federal Register Volume 85, Number 24 (Wednesday, February 5, 2020)]
[Notices]
[Pages 6651-6653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02192]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88098; File No. SR-NYSENAT-2020-02]

Self-Regulatory Organizations; NYSE National, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change to Certain 
Grammatical or Non-Substantive Changes to the NYSE National Rule 
10.8000 and Rule 10.9000

January 30, 2020.
    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 January 22, 2020, NYSE National, Inc. (``NYSE National'' or the 
``Exchange'') 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 the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes certain grammatical or non-substantive 
changes to the NYSE National Rule 10.8000 and Rule 10.9000 Series to 
conform to the Rule 10.8000 and Rule 10.9000 Series of the Exchange's 
affiliate NYSE Arca, Inc. (``NYSE Arca''). 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

[[Page 6652]]

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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes certain grammatical or non-substantive 
changes to the NYSE National Rule 10.8000 (Investigations and 
Sanctions) and Rule 10.9000 (Code of Procedure) Series to conform to 
the Rule 10.8000 and Rule 10.9000 Series of the Exchange's affiliate 
NYSE Arca. The proposed rule change will further harmonize the 
Exchange's disciplinary rules with the rules of the Exchange's 
affiliates.
Proposed Rule Change
    In 2018, the Exchange adopted the Rule 10.8000 and Rule 10.9000 
Series, which set forth the Exchange's rules relating to investigation, 
discipline, sanction, and other procedural rules. Rule 10 was modeled 
on the rules of the Exchange's affiliate NYSE American, Inc., which in 
turn was modeled on the rules of the Financial Industry Regulatory 
Authority, Inc. (``FINRA'').\3\ In 2019, the Exchange's affiliate NYSE 
Arca adopted the Rule 10.8000 and Rule 10.9000 Series.\4\ As part of 
that filing, NYSE Arca incorporated certain grammatical or other non-
substantive changes that the Exchange proposes to adopt in order to 
further harmonize the Exchange's disciplinary rules with the rules of 
its affiliates.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 83289 (May 17, 
2018), 83 FR 23968 (May 23, 2018) (SR-NYSENat-2018-02).
    \4\ See Securities Exchange Act Release No. 85639 (April 12, 
2019), 84 FR 16346 (April 18, 2019) (SR-NYSEArca-2019-15). As part 
of that filing, NYSE Arca incorporated certain grammatical or other 
non-substantive changes that had been earlier made to the Exchange's 
disciplinary rules. See id., 84 FR at 16346, n. 4.
---------------------------------------------------------------------------

    Specifically, the Exchange proposes the following changes:
     Rule 10.8211 (Automated Submission of Trading Data 
Requested by the Exchange) sets forth the procedures for electronic 
blue sheets. In subsection (a), the Exchange proposes to delete the 
``s'' following ``transaction'' and add the phrase ``or transactions'' 
and to replace ``is'' with ``are'' in order to conform to NYSE Arca 
Rule 10.8211(a).
     Rule 10.8313 (Release of Disciplinary Complaints, 
Decisions and Other Information) provides, in part, for the Exchange to 
publish all final disciplinary decisions issued under the Rule 10.9000 
Series, other than minor rule violations, on its website. In Rule 
10.8313(a)(3), the Exchange proposes to add ``and'' between ``10.9558'' 
and ``10.9560.'' In subsection (c)(1), the Exchange proposes to add 
``information that contains'' prior to ``confidential customer 
information.'' Both changes would conform to NYSE Arca Rule 
10.8313(a)(3) and (c)(1).
     Rule 10.8320 (Payment of Fines, Other Monetary Sanctions, 
or Costs; Summary Action for Failure to Pay) governs payment of fines 
and other monetary sanctions or costs by ETP \5\ Holders. In order to 
conform to NYSE Arca Rule 10.8320(b), Rule 10.8320(b) would be amended 
to add an apostrophe after ``days'' and the phrase ``from membership'' 
following ``expel.''
---------------------------------------------------------------------------

    \5\ The term ``ETP'' refers to an Equity Trading Permit issued 
by the Exchange for effecting approved securities transactions on 
the Exchange. An ``ETP Holder'' means the Exchange-approved holder 
of an ETP. See Rules 1.1(h) and (i).
---------------------------------------------------------------------------

     Rule 10.9110 (Application) sets forth the types of 
proceedings to which the Rule 10.9000 Series applies. In order to 
conform to NYSE Arca Rule 10.9110(a), the Exchange would add the 
following sentence to the end of the subsection: ``No member of the 
Board of Directors or non-Regulatory Staff may interfere with or 
attempt to influence the process or resolution of any pending 
investigation or disciplinary proceeding.''
     Rule 10.9120 (Definitions) sets forth the definitions 
applicable to the Rule 10.9000 Series. Under the definition of 
``Interested Staff'' in Rule 10.9120(B)(iii), the Exchange would add 
parentheses around the ``s'' in ``supervises'' to conform to NYSE Arca 
Rule 10.9120(B)(iii).
     Rule 10.9310 governs review by the Exchange's board of 
directors. In order to conform with NYSE Arca Rule 10.9310(a)(B)(i) and 
(ii), Rule 10.9310(a)(B)(i) and (ii) would both be amended to define 
the term ``affiliate'' as used therein. Specifically, the phrase ``of 
the Exchange as such term is defined in Rule 12b-2 under the Exchange 
Act'' would be added before ``affiliate'' in both subsections and the 
phrases ``ETP Holder that is an'' and ``Exchange ETP Holder that is 
an'' before ``affiliate'' in subsections (a)(i) and (a)(ii), 
respectively, would be deleted. Further, in order to conform to NYSE 
Arca Rule 10.9310(b), the Exchange would add ``Securities'' before, and 
``of 1934'' after, ``Exchange Act'' in the last sentence.
     Rule 10.9524 (Exchange Board of Directors Consideration) 
governs requests for review by the applicant to the Exchange board of 
directors. To conform with NYSE Arca Rule 10.9524, the Exchange would 
add ``Securities'' before, and ``of 1934'' after, ``Exchange Act'' in 
the last sentence.
     Rule 10.9559 (Hearing Procedures for Expedited Proceedings 
Under the Rule 10.9550 Series) sets forth uniform hearing procedures 
for all expedited proceedings under the Rule 10.9550 Series. In order 
to conform to NYSE Arca Rule 10.9559, the Exchange proposes the 
following changes to Rule 10.9559:
    [cir] Replacing the incorrect reference to Rule 10.9552 with Rule 
10.9551 in subsection (c)(1);
    [cir] adding two references to Rule 10.9551 in subsection (d)(2);
    [cir] deleting ``the'' before ``Hearing Officer'' in the next to 
last sentence of Rule 10.9559(e);
    [cir] replacing the incorrect reference to Rule 10.9552 with Rule 
10.9551 in Rule 10.9559(g)(4); and
    [cir] adding a reference to Rule 10.9551 in Rule 10.9559(o)(3).
     Finally, Rule 10.9560 (Expedited Suspension Proceeding) 
sets forth procedures for expedited suspension hearings. In order to 
conform to NYSE Arca Rule 10.9560, the Exchange proposes the following 
changes to Rule 10.9560:
    [cir] Adding ``or Panelist'' after ``Hearing Officer'' in three 
places in subsection (b)(2); and
    [cir] adding ``or Panelist'' after ``Hearing Officer'' in two 
places in subsection (c)(1).
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (the ``Act''),\6\ in general, and 
furthers the objectives of Section 6(b)(5),\7\ 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change would remove

[[Page 6653]]

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 grammatical or non-
substantive changes would add clarity, transparency and consistency to 
the Exchange's disciplinary 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 disciplinary rules more 
consistent with the rules of NYSE Arca, 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 disciplinary rules to make conforming 
grammatical or non-substantive changes based on the disciplinary rules 
of the Exchange's affiliate NYSE Arca.

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 \8\ and Rule 19b-4(f)(6) thereunder.\9\ 
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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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) \10\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSENAT-2020-02 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-NYSENAT-2020-02. 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 offices 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-NYSENAT-2020-02, and should be submitted 
on or before February 26, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-02192 Filed 2-4-20; 8:45 am]
 BILLING CODE 8011-01-P