[Federal Register Volume 86, Number 3 (Wednesday, January 6, 2021)]
[Notices]
[Pages 653-657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29215]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90824; File No. SR-FINRA-2020-031]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of Amendment No. 1 and Order
Instituting Proceedings To Determine Whether To Approve or Disapprove a
Proposed Rule Change, as Modified by Amendment No. 1, To Adopt Proposed
Rule 6439 (Requirements for Member Inter-Dealer Quotation Systems) and
Rescind the Rules Related to the OTC Bulletin Board Service
December 30, 2020.
I. Introduction
On September 24, 2020, the Financial Industry Regulatory Authority,
Inc. (``FINRA'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to rescind the rules related to
the OTC Bulletin Board Service and cease its operation and to adopt new
requirements for member inter-dealer quotation systems that disseminate
quotations in equity securities traded over-the-counter (``OTC''). The
proposed rule change was published for comment in the Federal Register
on October 7, 2020.\3\ On November 4, 2020, pursuant to Section
19(b)(2) of the Act,\4\ the Commission designated a longer period
within which to approve the proposed rule change, disapprove the
proposed rule change, or institute proceedings to determine whether to
disapprove the proposed rule change.\5\ On December 21, 2020, FINRA
filed Amendment No. 1 to the proposed rule change.\6\ The Commission is
publishing this notice and order to solicit comments on the proposed
rule change, as modified by Amendment No. 1, from interested persons
and to institute proceedings pursuant to Section 19(b)(2)(B) of the Act
\7\ to determine whether to approve or disapprove the proposed rule
change, as modified by Amendment No. 1.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Exchange Act Release No. 90067 (October 1, 2020), 85 FR
63314 (``Notice''). Comments on the proposed rule change can be
found at: https://www.sec.gov/comments/sr-finra-2020-031/srfinra2020031.htm.
\4\ 15 U.S.C. 78s(b)(2).
\5\ See Exchange Act Release No. 90335 (November 4, 2020). The
Commission designated January 5, 2021 as the date by which the
Commission shall approve or disapprove, or institute proceedings to
determine whether to approve or disapprove, the proposed rule
change.
\6\ Amendment No. 1 is a partial amendment in which FINRA
included a representation that it will not cease operation of the
OTCBB until the enhanced regulatory requirements under Rule 6439
(except for certain provisions related to order-level information
reports that also relate to information required for the
Consolidated Audit Trail) become effective. See infra note 41.
Amendment No. 1 may be found at: https://www.sec.gov/comments/sr-finra-2020-031/srfinra2020031.htm.
\7\ 15 U.S.C. 78s(b)(2)(B).
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II. Summary of the Proposal, as Modified by Amendment No. 1
As further described below, FINRA proposes to (i) rescind FINRA's
rules governing the OTC Bulletin Board Service (``OTCBB'') and cease
its operation; and (ii) adopt new Rule 6439 (Requirements for Member
Inter-Dealer Quotation Systems) to expand the obligations of member
interdealer quotation systems (``IDQSs'') \8\ that disseminate
quotation updates on a real-time basis in OTC Equity Securities.\9\
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\8\ FINRA Rule 6420(c) defines ``inter-dealer quotation system''
as ``any system of general circulation to brokers or dealers which
regularly disseminates quotations of identified brokers or
dealers.'' This definition tracks the Commission's definition of the
same term in Exchange Act Rule 15c2-11, 17 CFR 240.15c2-11.
\9\ The term ``OTC Equity Security'' is defined in FINRA Rule
6420(f) as any equity security that is not an ``NMS stock'' as that
term is defined in Rule 600(b)(47) of Regulation NMS; provided,
however, that the term ``OTC Equity Security'' shall not include any
Restricted Equity Security. The term ``Restricted Equity Security''
is further defined in FINRA Rule 6420(k) to mean any equity security
that meets the definition of ``restricted security'' as contained in
Rule 144(a)(3) under the Securities Act of 1933.
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A. Rescission of Rules Governing the OTCBB
The OTCBB is a FINRA-operated IDQS available for use by broker-
dealers to publish quotations in eligible OTC Equity Securities.\10\
FINRA has operated the OTCBB since 1990.\11\ FINRA states that, due to
technological advancements since 1990 and the increase in alternative
electronic venues with more extensive functionality than the OTCBB, the
level of quotation activity occurring on the OTCBB has continued to
decline over the past several years and is now nonexistent.\12\ FINRA
represents that, as of the date that it filed the proposed rule change,
the OTCBB does not display or widely disseminate quotation information
on any OTC Equity Security.\13\
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\10\ See Notice, supra note 3, at 63315.
\11\ See id.
\12\ See id.
\13\ See id.
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FINRA states that it does not believe that continued operation of
the OTCBB serves any benefit to investors or the marketplace and that
ceasing operation of the OTCBB would eliminate potential
[[Page 654]]
investor confusion regarding the availability of quotation information
for OTC Equity Securities.\14\ In addition, FINRA notes that it does
not believe that the OTCBB, in its current state, furthers the goals
and objectives of Section 17B of the Act and, therefore, does not meet
the characteristics of a system described in Section 17B of the Act
regarding the widespread dissemination of reliable and accurate
quotation information with respect to ``penny stocks.'' \15\
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\14\ See id. at 63318. For example, FINRA states that where
investors look to feeds that solely disseminate OTCBB data for
quotation information on a particular OTC Equity Security, investors
mistakenly may conclude that there are no current quotations in the
security (when, in fact, there may be numerous quotations available
elsewhere--i.e., on member-operated IDQSs). See id.
\15\ Section 17B of the Act mandates, among other things, that
the Commission facilitate the widespread dissemination of quotation
information for penny stocks through automated quotation systems
operated by registered securities associations. See 15 U.S.C 78q-
2(b). Under Exchange Act Rule 3a51-1, ``penny stock'' is a non-NMS
stock that among other things, does not include securities that have
a price of five dollars or more as determined either on a per
transaction basis or, in the absence of a transaction, on the basis
of the inside bid quotation for the security displayed on an
automated quotation system that has the characteristics set forth in
Section 17B(b)(2) of the Act or any other system that is designated
by the Commission. See 17 CFR 240.3a51-1.
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As a result, FINRA proposes to rescind the FINRA Rule 6500 Series,
which governs the operation of the OTCBB. Among other things, the FINRA
Rule 6500 Series contains provisions regarding the securities eligible
to be quoted on the OTCBB (FINRA Rule 6530), market maker obligations
on the OTCBB (FINRA Rule 6540), and transaction reporting (FINRA Rule
6550). FINRA also proposes to rescind FINRA Rule 7720, which sets forth
the fees applicable to a broker-dealer that displays quotations or
trading interest in the OTCBB, and to amend FINRA Rule 9217 (Violations
Appropriate for Disposition Under Plan Pursuant to SEA Rule 19d-
1(c)(2)) to remove reference to FINRA Rule 6550 (Transaction
Reporting). While these proposed changes to the FINRA rulebook would
cause the operation of the OTCBB to terminate when effective, in
Amendment No. 1, FINRA states that it would not cease operation of the
OTCBB until proposed Rule 6439 (except for proposed Rule
6439(d)(1)(B)), discussed below, is effective.\16\
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\16\ See Amendment No. 1, supra note 6.
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B. Proposed Rule 6439 (Requirements for Member Inter-Dealer Quotation
Systems)
FINRA states that all quotation activity in OTC Equity Securities
now occurs on member-operated IDQSs, rather than the OTCBB.\17\ FINRA
proposes, in conjunction with the cessation of the OTCBB, to adopt new
requirements for member IDQSs that provide quotations in OTC Equity
Securities in order to ensure that they have minimum standards in
place.\18\ FINRA states that it believes that the proposed requirements
would complement the existing framework governing the form and content
of quotations \19\ and are consistent with the goals and objectives of
Section 17B of the Act regarding the facilitation of widespread
dissemination of reliable and accurate quotation information in penny
stocks.\20\
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\17\ See Notice, supra note 3 at 63320.
\18\ Id. at 63316.
\19\ FINRA currently has in place rules that govern the activity
of member firms when they engage in quoting OTC Equity Securities.
Specifically, the FINRA Rule 6400 Series (Quoting and Trading in OTC
Equity Securities), among other things, provides a regulatory
framework that governs the form and content of OTC Equity
Securities' quotations, and the FINRA Rule 5200 Series sets forth
rules of general applicability that govern quoting and trading
practices in this market sector (hereinafter, the FINRA Rule Series
6400 and 5200 are collectively referred to as the ``FINRA Quotation
Governance Rules''). See Notice, supra note 3, at 63314-15. Rather
than governing the activity of member firms, like the FINRA
Quotation Governance Rules, proposed Rule 6439 would provide
quotation governance standards for member IDQSs on or through which
quotations are displayed.
\20\ See supra note 15.
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Proposed Rule 6439 would apply to member IDQSs (whether or not such
member is also an alternative trading system (``ATS'')) that permits
quotation updates on a real-time basis in OTC Equity Securities. Under
proposed Rule 6439(a), member IDQSs must establish, maintain and
enforce written policies and procedures relating to the collection and
dissemination of quotation information in OTC Equity Securities on or
through their systems. Such written policies and procedures must be
reasonably designed to ensure that quotations received and disseminated
are informative, reliable, accurate, firm, and treated in a not
unfairly discriminatory manner, including by establishing non-
discretionary standards under which quotations are prioritized and
displayed.\21\ Member IDQSs must also prominently disclose these
written policies and procedures, along with any material updates,
modifications and revisions thereto, to subscribers within five
business days following the date of establishment of a policy or
procedure or implementation of a material change, as well as provide
them to prospective subscribers upon request.\22\
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\21\ For example, FINRA states that a member IDQS would be
required to address in its procedures its methodology for ranking
quotations, including at a minimum, addressing factors such as price
(including any applicable quote access fee), size, time, capacity
and type of quotation (such as unpriced quotes and bid/offer wanted
quotations). The member IDQS also would be required to include any
other factors relevant to the ranking and display of quotations
(e.g., reserve sizes, quotation updates, treatment of closed
quotations, and quotation information imported from other systems).
See Notice, supra note 3, at 63316.
\22\ FINRA states that a member that is an IDQS at the time of
the effective date of this proposed rule change would be required to
prominently disclose the required information to its subscribers
upon the effective date of the proposed rule change and, thereafter,
within five business days of the implementation of any material
update, modification or revision thereto. See id., at n.16.
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Under proposed Rule 6439(b), each member IDQS must establish non-
discriminatory written standards for granting access to quoting and
trading in OTC Equity Securities on its systems that do not
unreasonably prohibit or limit any person with respect to access to
services offered by such member IDQS.\23\ As with the requirements
under proposed Rule 6439(a), member IDQSs would be required to
prominently disclose these written standards relating to fair access,
and any material updates, modifications and revisions thereto, to their
subscribers within five business days following the date of
establishment of written standards or implementation of a material
change, as well as provide them to prospective subscribers upon
request.\24\ In addition, member IDQSs would be required to make and
keep records of all grants of access and all denials or limitations of
access. Such records must include, for all subscribers, the reasons for
granting access, and, for all denials or limitations of access, the
reasons for denying or limiting such access.\25\
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\23\ FINRA states that this proposed requirement is consistent
with the ``fair access'' requirements of Regulation ATS but would
apply to quoting and trading in all OTC Equity Securities on the
member IDQS, regardless of the percentage of average daily volume
that such member IDQS had in the security. See 17 CFR 242.301(b)(5).
FINRA states that while certain member IDQSs may already be subject
to the similar volume-based fair access requirements under
Regulation ATS, proposed Rule 6439 would ensure the application of
fair access requirements to all member IDQSs. See Notice, supra note
3, at 63316.
\24\ See id. at 63316-17. See also supra note 22.
\25\ See proposed Rule 6439(b).
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Proposed Rules 6439(c) and (d) would apply only to member IDQSs
that do not automatically execute all orders presented for execution
against displayed quotations for which a member subscriber has an
obligation under FINRA Rule 5220 (Offers at Stated Prices) \26\ (such a
system is
[[Page 655]]
hereafter referred to as a ``non-auto-executing member IDQS''). Under
proposed Rule 6439(c), non-auto-executing member IDQSs must establish,
maintain and enforce written policies and procedures that are
reasonably designed to address instances of unresponsiveness to orders
in an OTC Equity Security. At a minimum, these policies and procedures
must specify an efficient process for: (i) Monitoring subscriber
unresponsiveness; (ii) subscribers to submit complaints to the non-
auto-executing member IDQS regarding potential instances of order
unresponsiveness; (iii) documenting the subscriber's rationale for
unresponsiveness; and (iv) determining specified steps when an instance
of, or repeated, order unresponsiveness may have occurred.\27\
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\26\ FINRA Rule 5220 and its associated Supplementary Material
set forth members' firm quote obligations. Specifically, FINRA Rule
5220 provides that no member shall make an offer to buy from or sell
to any person any security at a stated price unless such member is
prepared to purchase or sell, as the case may be, at such price and
under such conditions as are stated at the time of such offer to buy
or sell.
\27\ See Notice, supra note 3, at 63317.
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Under proposed Rule 6439(d), non-auto-executing member IDQSs must
report to FINRA, in a form and manner prescribed by FINRA,\28\ certain
aggregate and order-level information in OTC Equity Securities.
Specifically, proposed Rule 6439(d) would require a non-auto-executing
member IDQS to report to FINRA on a monthly basis the following
aggregated information, categorized by FINRA member subscriber market
participant identifier (MPID) across all symbols quoted by the MPID
during the previous calendar month: (i) Total number of marketable
orders presented for execution against the MPID's quotation; \29\ (ii)
average execution (full or partial) time for marketable orders
presented against the MPID's quotation based on the time an order is
presented; (iii) total number of full or partial executions based on
the time a marketable order is presented that are within the following
execution timeframes: < 5 seconds; >= 5 and < 10 seconds; >= 10 and <
20 seconds; and >= 20 seconds; (iv) total number of marketable orders
presented against the MPID's quotation that did not receive a full or
partial execution; and (v) average response time of the highest 10% and
highest 50% of the MPID's response times for marketable orders (for
full or partial executions).\30\
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\28\ FINRA states that following Commission approval, FINRA
would announce in a Regulatory Notice details about the required
manner and timing of the submission of this information to FINRA.
See Notice, supra note 3, at 63317, n.27.
\29\ FINRA states that in this context, a ``marketable order''
refers to a message presented against a market maker's quote that is
priced to be immediately executable. See id., n.29.
\30\ See proposed Rule 6439(d)(1)(A).
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Proposed Rule 6439(d) would require non-auto-executing member IDQSs
to provide to FINRA the following order-level information for each
order presented against an MPID's quotation during the previous
calendar month: (i) Buy/sell; (ii) security symbol; (iii) price; (iv)
size; (v) All or None indicator (yes or no); (vi) order entry firm
MPID; (vii) order receipt time; (viii) time in force; (ix) response
time; (x) order response (e.g., execute, reject cancel, etc.); (xi)
executed quantity; (xii) system-generated order number (if any); and
(xiii) position in queue for quote (e.g., IL1, IL2).\31\ However, to
the extent that the above order-level information is or becomes
reportable under the Consolidated Audit Trail (``CAT'') pursuant to
FINRA Rule 6830 (Industry Member Data Reporting), non-auto-executing
member IDQSs would not be required to report this order-level
information under proposed Rule 6439(d).\32\
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\31\ See proposed Rule 6439(d)(1)(B).
\32\ See proposed Rule 6439(d)(2). If such information is
reportable to the CAT pursuant to FINRA Rule 6830, this information
will be available to FINRA. Thus, separate reporting pursuant to
proposed FINRA Rule 6439(d) would be duplicative.
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Proposed Rule 6439(e) would require each member IDQS to make
available to customers on its website (or its affiliate distributor's
website) a written description of each OTC Equity Security order- or
quotation-related data product offered by such member IDQS and related
pricing information, including fees, rebates, discounts and cross-
product pricing incentives. Member IDQSs would be required to keep the
relevant website page(s) accurate and up-to-date with respect to the
required data product descriptions and pricing information and to make
such information available at least two business days in advance of
offering a data product.\33\ Proposed Rule 6439(e) would specify that a
member IDQS is not precluded from negotiating lower fees with
customers, provided that the member IDQS discloses on such website
page(s) the circumstances under which it may do so.
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\33\ See proposed Rule 6439(e).
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Finally, under proposed Rule 6439(f), a member IDQS must provide
FINRA with prompt notification when it reasonably becomes aware of any
systems disruption that is not de minimis that degrades, limits, or
otherwise impacts the member IDQS's functionality with respect to
trading or the dissemination of market data.\34\ Such notification must
include, on a reasonable best efforts basis, a brief description of the
event, its impact, and the member IDQS's resolution efforts.\35\ FINRA
states that to comply with this requirement, a member IDQS that is an
SCI ATS, as defined in Rule 1000 of Regulation SCI, could provide FINRA
with the same information (or a duplicate copy of any notification)
submitted to the Commission as required under Regulation SCI Rule
1002(b) \36\ promptly after filing the notification with the
Commission.\37\ FINRA states that if a member IDQS is not an SCI ATS,
it could comply with this requirement by providing FINRA prompt
notification when it reasonably becomes aware of any such systems
disruption, and by providing periodic updates on the event and its
resolution.\38\ Such notifications would include, on a reasonable best
efforts basis, a brief description of the event, its impact, and
resolution efforts.\39\
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\34\ FINRA would announce in a Regulatory Notice the methods and
process by which members may provide systems disruption
notifications to FINRA. See Notice, supra note 3, at 63318.
\35\ See proposed Rule 6439(f).
\36\ 17 CFR 242.1002(b).
\37\ See Notice, supra note 3, at 63318.
\38\ See id.
\39\ See id.
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FINRA states that if the proposed rule change is approved by the
Commission, FINRA will announce in a Regulatory Notice the effective
date(s) of the proposed rule change, which may be phased in but will be
no later than 365 days following Commission approval.\40\ The effective
date for rescinding the rules related to the OTCBB will not occur until
proposed Rule 6439 (except for Rule 6439(d)(1)(B)) is effective.\41\
FINRA also states that it will examine for compliance by member IDQSs
with proposed Rule 6439, including by reviewing the adequacy of member
IDQSs' written policies and procedures and written fair access
standards required under the proposal, conducting a targeted exam of
impacted member IDQSs after the initial effectiveness of the rule, and
incorporating a Rule 6439
[[Page 656]]
review as part of the regular exam program for impacted member
firms.\42\
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\40\ See Notice, supra note 3, at 63319.
\41\ See Amendment No. 1, supra note 6. FINRA states that
proposed Rule 6439, with one exception related to the reporting to
FINRA of order-level information, will become effective at the same
time as, or prior to, the rescission of the OTCBB rules. FINRA
states that paragraph (d)(1)(B) of proposed Rule 6439 (requiring
reporting of specified order-level information) may be phased in at
a later date within the 365-day timeframe to allow FINRA to better
coordinate with the timeline for reporting information in OTC Equity
Securities to the CAT under FINRA Rule 6830 (Industry Member Data
Reporting). See id.
\42\ See Notice, supra note 3, at 63316, n.17.
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III. Proceedings To Determine Whether To Approve or Disapprove SR-
FINRA-2020-031, as Modified by Amendment No. 1, and Grounds for
Disapproval Under Consideration
The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \43\ to determine whether the proposed rule
change, as modified by Amendment No. 1, should be approved or
disapproved. Institution of such proceedings is appropriate at this
time in view of the legal and policy issues raised by the proposal.
Institution of proceedings does not indicate that the Commission has
reached any conclusions with respect to any of the issues involved.
Rather, as described below, the Commission seeks and encourages
interested persons to provide comments on the proposed rule change to
inform the Commission's analysis of whether to approve or disapprove
the proposal.
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\43\ 15 U.S.C. 78s(b)(2)(B).
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Pursuant to Section 19(b)(2)(B) of the Act,\44\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of the proposal's consistency with the Act, and, in
particular, with Section 15A(b)(6) of the Act, which requires, among
other things, that the rules of a national securities association be
``designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade,'' and ``to protect
investors and the public interest,'' \45\ and Section 15A(b)(11) of the
Act, which requires that the rules of a national securities association
include provisions governing the form and content of quotations
relating to securities sold otherwise than on a national securities
exchange which may be distributed or published by any member or person
associated with a member, and the persons to whom such quotations may
be supplied, and that such rules ``be designed to produce fair and
informative quotations, to prevent fictitious or misleading quotations,
and to promote orderly procedures for collecting, distributing, and
publishing quotations.'' \46\
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\44\ Id.
\45\ 15 U.S.C. 78o-3(b)(6).
\46\ 15 U.S.C. 78o-3(b)(11).
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As discussed above, FINRA is proposing to rescind FINRA's rules
governing the OTCBB and cease its operation and adopt new Rule to
expand the obligations of Member IDQSs that disseminate quotation
updates on a real-time basis in OTC Equity Securities. The Commission
has received three comment letters regarding the proposed rule
change,\47\ and a response to comments from FINRA.\48\ In addition, on
December 21, 2020, FINRA filed partial Amendment No. 1, which states
that FINRA would not cease operation of the OTCBB until proposed Rule
6439 (except for proposed Rule 6439(d)(1)(B)) is effective.\49\ FINRA
further states that paragraph (d)(1)(B) of proposed Rule 6439
(requiring reporting of specified order-level information) may be
phased in at a later date within the 365-day timeframe to allow FINRA
to better coordinate with the timeline for reporting information in OTC
Equity Securities to the CAT under FINRA Rule 6830 (Industry Member
Data Reporting).\50\ Given the filing of this recent amendment, and the
comment letters received and the response from FINRA, the Commission is
seeking additional public comment on the proposed rule change in order
to determine whether it is consistent with the requirements of Sections
15A(b)(6) and 15A(b)(11) of the Act.
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\47\ See Letters from Christopher Bok, Chief Compliance Officer,
OTC Link, LLC, dated October 28, 2020; Kimberly Unger, CEO and
Executive Director, The Security Traders Association of New York,
Inc., dated October 28, 2020; and Sherry J. Sandler, Global OTC,
dated November 9, 2020.
\48\ See Letter from Racquel Russell, Associate General Counsel,
FINRA, dated November 20, 2020.
\49\ See supra note 6.
\50\ See id. See also supra notes 31-32 and accompanying text.
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The Commission notes that, under the Commission's Rules of
Practice, the ``burden to demonstrate that a proposed rule change is
consistent with the Act and the rules and regulations thereunder. . .is
on the self-regulatory organization [`SRO'] that proposed the rule
change.'' \51\ The description of a proposed rule change, its purpose
and operation, its effect, and a legal analysis of its consistency with
applicable requirements must all be sufficiently detailed and specific
to support an affirmative Commission finding,\52\ and any failure of an
SRO to provide this information may result in the Commission not having
sufficient basis to make an affirmative finding that a proposed rule
change is consistent with the Act and the applicable rule and
regulations.\53\
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\51\ Rule 700(b)(3), Commission Rules of Practice, 17 CFR
201.700(b)(3).
\52\ See id.
\53\ See id.
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IV. Procedure: Request for Written Comments
The Commission requests that interested persons provide written
submissions of their views, data, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposed rule
change, as modified by Amendment No. 1, is consistent with Sections
15A(b)(6) and 15A(b)(11) of the Act or any other provision of the Act,
or the rules and regulations thereunder. Although there do not appear
to be any issues relevant to approval or disapproval that would be
facilitated by an oral presentation of views, data, and arguments, the
Commission will consider, pursuant to Rule 19b-4, any request for an
opportunity to make an oral presentation.\54\
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\54\ Section 19(b)(2) of the Act, as amended by the Securities
Act Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the
Commission flexibility to determine what type of proceeding--either
oral or notice and opportunity for written comments--is appropriate
for consideration of a particular proposal by a self-regulatory
organization. See Securities Act Amendments of 1975, Senate Comm. on
Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st
Sess. 30 (1975).
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Interested persons are invited to submit written data, views, and
arguments regarding whether the proposed rule change, as modified by
Amendment No. 1, should be approved or disapproved by January 27, 2021.
Any person who wishes to file a rebuttal to any other person's
submission must file that rebuttal by February 10, 2021.
The Commission asks that commenters address the sufficiency of
FINRA's statements in support of the proposal, which are set forth in
the Notice and in Amendment No. 1,\55\ in addition to any other
comments they may wish to submit about the proposed rule change.
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\55\ See supra notes 3 and 6.
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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-FINRA-2020-031 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.
[[Page 657]]
All submissions should refer to File Number SR-FINRA-2020-031. 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 FINRA. 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-FNRA-2020-031 and should be submitted on
or before January 27, 2021. Rebuttal comments should be submitted by
February 10, 2021.
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\56\ 17 CFR 200.30-3(a)(12) and 17 CFR 200.30-3(a)(57).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\56\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-29215 Filed 1-5-21; 8:45 am]
BILLING CODE 8011-01-P