Document ID: SEC-2022-0865-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Chicago, Inc.
Posted Date: 2022-06-30T04:00Z

[Federal Register Volume 87, Number 125 (Thursday, June 30, 2022)]
[Notices]
[Pages 39137-39139]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13963]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95157; File No. SR-NYSECHX-2022-13]

Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change for Certain 
Non-Substantive Clarifying Changes to Article 7, Rule 12

June 24, 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 21, 2022, the NYSE Chicago, Inc. (``NYSE Chicago'' or the 
``Exchange'') 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 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\ 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 certain non-substantive clarifying changes to 
Article 7, Rule 12. 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 certain non-substantive clarifying changes to 
Article 7, Rule 12 (Failure to Pay Fees).
    The Exchange recently adopted rules relating to investigation, 
discipline, sanction, and other procedural rules based on the rules 
based on the text of the NYSE Arca Rule 10.8000 and Rule 10.9000 
Series, with certain changes.\3\ In connection with the adoption of 
these new disciplinary rules, the Exchange made certain changes to 
Article 7, Rule 12, which previously governed the non-payment of any 
debt for Trading Permit fees, fines, transaction fees, or other sums 
owing the Exchange or its subsidiaries, to reflect that failure to pay 
any fine, sanction or cost levied in connection with a disciplinary 
action would be governed by Rule 10.8320 (Payment of Fines, Other 
Monetary Sanctions, or Costs; Summary Action for Failure to Pay). 
Specifically, the Exchange added the following text to Article 7, Rule 
12:
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    \3\ See Securities Exchange Act Release No. 95020 (June 1, 
2022), 87 FR 35034 (June 8, 2022) (SR-NYSECHX-2022-10) (``Release 
No. 95020'').

    Notwithstanding the foregoing, any failure to pay any fine, 
sanction or cost levied in connection with a disciplinary action 
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shall be governed by Rule 10.8320.

    For the avoidance of doubt, and to clarify the application of 
Article 7, Rule 12 and Rule 10.8320, the Exchange proposes to amend the 
above sentence in Article 7, Rule 12 as follows (proposed changes are 
italicized):

    Notwithstanding the foregoing, any failure to pay any fine, 
sanction or cost levied in connection with a disciplinary action 
initiated under Article 12 for which a decision was issued on or 
after [insert date] shall be governed by Rule 10.8320. For

[[Page 39138]]

disciplinary decisions issued prior to such date, Article 7, Rule 12 
shall apply.\4\
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    \4\ On June 3, 2022, the Exchange announced that the new 
disciplinary rules will be effective on July 5, 2022. See Release 
No. 95020, 87 FR at 35041; NYSE Chicago RM-22-02 (June 3, 2022). 
Once the new disciplinary rules are effective, the Exchange will 
replace ``insert date'' where it appears in the new disciplinary 
rules, including as proposed in Article 7, Rule 12, with that date.

    The proposed change is consistent with Rule 10.8320(d), which 
provides that the Exchange may exercise the summary authority set forth 
in Rules 10.8320(b) and (c) with respect to non-payment of a fine, 
monetary sanction, or cost assessed in a disciplinary action initiated 
under Article 12 for which a decision was issued on or after the 
effective date of the new disciplinary rules.
    The Exchange believes that the proposed change would add clarity, 
transparency and consistency to the Exchange's rules.

2. Statutory Basis

    The proposed rule change is consistent with Section 6(b) of the 
Act,\5\ in general, and furthers the objectives of Section 6(b)(5) of 
the Act,\6\ in particular, in that 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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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    In particular, the Exchange believes that the proposed non-
substantive clarifying 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 clarifying changes to the Exchange rules. Since 
the proposal does not substantively modify system functionality or 
processes on the Exchange, the proposed changes will not impose any 
burden on competition.

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) of the Act \7\ and Rule 19b-4(f)(6) \8\ thereunder. 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 for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate, it has become effective pursuant to Section 
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) \10\ thereunder.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
    \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 the Exchange to give the Commission written notice of the 
Exchange's 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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    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 19b-4(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 to allow the 
proposed changes to be effective at the same time as the announced date 
of the new disciplinary rules. The Commission notes that the proposed 
changes to Article 12, Rule 7, clarify and make the rule consistent 
with the transition from the old to the new disciplinary rules recently 
adopted by the Exchange and do not raise any new or novel issues.\13\ 
Therefore, the Commission believes that waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. Accordingly, the Commission designates the proposed rule 
change to be operative upon filing.\14\
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ See supra note 4 and accompanying text.
    \14\ For purposes only of waiving the 30-day operative delay, 
the Commission also has considered the proposed rule'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 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. If the Commission 
takes such action, the Commission will 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-NYSECHX-2022-13 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-2022-13. 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

[[Page 39139]]

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-2022-13 and should be submitted on or before July 21, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12), (59).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-13963 Filed 6-29-22; 8:45 am]
BILLING CODE 8011-01-P