Document ID: SEC-2022-0565-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Financial Industry Regulatory Authority, Inc.
Posted Date: 2022-04-19T04:00Z

[Federal Register Volume 87, Number 75 (Tuesday, April 19, 2022)]
[Notices]
[Page 23287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-08334]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 94724/April 14, 2022]

Securities Exchange Act of 1934; Order Granting Petition for 
Review and Scheduling Filing of Statements; In the Matter of Financial 
Industry Regulatory Authority, Inc. Regarding an Order Granting the 
Approval of Proposed Rule Change, as Modified by Amendment No. 1, To 
Amend the Requirements for Covered Agency Transactions Under FINRA Rule 
4210 (Margin Requirements) as Approved Pursuant to SR-FINRA-2015-036

    This matter comes before the Securities and Exchange Commission 
(``Commission'') on petition to review the approval, pursuant to 
delegated authority, of the Financial Industry Regulatory Authority, 
Inc. (``FINRA'') proposed rule change to amend the requirements for 
covered agency transactions under FINRA Rule 4210.
    On May 19, 2021, the Commission issued a notice of filing of the 
proposed rule change with the Commission pursuant to Section 19(b)(1) 
of the Securities Exchange Act of 1934 (``Exchange Act'') \1\ and Rule 
19b-4 \2\ thereunder.\3\ On June 30, 2021, FINRA extended the time 
period in which the Commission needed to approve the proposed rule 
change, disapprove the proposed rule change, or institute proceedings 
to determine whether to approve or disapprove the proposed rule change 
to August 23, 2021.\4\ On August 9, 2021, FINRA submitted Amendment No. 
1 to the proposed rule change. On August 20, 2021, the Commission 
issued a notice of filing of Amendment No. 1 to the proposed rule 
change, and proceedings were instituted under Section 19(b)(2)(B) of 
the Exchange Act \5\ to determine whether to approve or disapprove the 
proposed rule change.\6\ On October 26, 2021, FINRA extended the time 
period in which the Commission needed to approve or disapprove the 
proposed rule change to January 20, 2022.\7\ On January 20, 2022, after 
consideration of the record for the proposed rule change, as modified 
by Amendment No. 1, the Division, pursuant to delegated authority,\8\ 
issued an order approving the proposed rule change, as modified by 
Amendment No. 1 (``Approval Order'').\9\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Exchange Act Release No. 91937 (May 19, 2021), 86 FR 
28161 (May 25, 2021) (SR-FINRA-2021-010).
    \4\ See letter from Adam Arkel, Associate General Counsel, 
Office of General Counsel, FINRA, to Sheila Swartz, Division of 
Trading and Markets (``Division''), Commission (June 30, 2021).
    \5\ 15 U.S.C. 78s(b)(2)(B).
    \6\ See Exchange Act Release No. 92713 (Aug. 20, 2021), 86 FR 
47665 (Aug. 26, 2021) (SR-FINRA-2021-010).
    \7\ See letter from Adam Arkel, Associate General Counsel, 
Office of General Counsel, FINRA, to Sheila Swartz, Division, 
Commission (Oct. 26, 2021).
    \8\ 17 CFR 200.30-3(a)(12).
    \9\ See Exchange Act Release No. 94013 (Jan. 20, 2022), 87 FR 
4076 (Jan. 26, 2021) (SR-FINRA-2021-010).
---------------------------------------------------------------------------

    Pursuant to Rule 430 of the Commission's Rules of Practice,\10\ on 
January 27, 2022 the Bond Dealers of America (``BDA'') and Brean 
Capital, LLC (``Brean Capital'') filed a notice of intention to 
petition for review of the Approval Order, and on February 3, 2022 BDA 
and Brean Capital filed a petition for review of the Approval Order. 
Pursuant to Rule 431(e) of the Commission's Rules of Practice,\11\ the 
Approval Order is stayed by the filing with the Commission of a notice 
of intention to petition for review.
---------------------------------------------------------------------------

    \10\ 17 CFR 201.430.
    \11\ 17 CFR 201.431(e).
---------------------------------------------------------------------------

    Pursuant to Rule 431 of the Commission's Rules of Practice,\12\ the 
petition for review of the Approval Order is granted. Further, the 
Commission hereby establishes that any party to the action or other 
person may file a written statement in support of or in opposition to 
the Approval Order on or before May 10, 2022.
---------------------------------------------------------------------------

    \12\ 17 CFR 201.431.
---------------------------------------------------------------------------

    For the reasons stated above, it is hereby:
    Ordered that the petition of BDA and Brean Capital for review of 
the Division's action to approve the proposed rule change, as modified 
by Amendment No. 1, by delegated authority be granted; and
    It is further ordered that any party or other person may file a 
statement in support of or in opposition to the action made pursuant to 
delegated authority on or before May 10, 2022.
    It is further ordered that the January 20, 2022 order approving the 
proposed rule change, as modified by Amendment No. 1 (File No. SR-
FINRA-2021-010), shall remain stayed pending further action by the 
Commission.

    By the Commission.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-08334 Filed 4-18-22; 8:45 am]
BILLING CODE 8011-01-P