8011-01p
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93907; File No. SR-NYSECHX-2021-18]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change to Amend Its Schedule of Fees and Rebates with
Respect to a Regulatory Fee Related to the Central Registration Depository
January 5, 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 December 22, 2021 the
NYSE Chicago, Inc. (“NYSE Chicago” or the “Exchange”) filed with the Securities and
Exchange Commission (the “Commission”) the proposed rule change as described in
Items I, II, and III 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.
I.

Self-Regulatory Organization’s Statement of the Terms of Substance of the
Proposed Rule Change
The Exchange proposes to amend its Schedule of Fees and Rebates (the “Fee

Schedule”) with respect to a regulatory fee related to the Central Registration Depository
(“CRD system”), which is collected by the Financial Industry Regulatory Authority, Inc.
(“FINRA”). The Exchange proposes to implement the fee change on January 2, 2022.
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

15 U.S.C. 78s(b)(1).

15 U.S.C. 78a.

17 CFR 240.19b-4.

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 to amend the Price List with respect to a regulatory fee
collected by FINRA for use of the CRD system.4 The Exchange proposes to implement
the fee change on January 2, 2022.
FINRA collects and retains certain regulatory fees via the CRD system for the
registration of associated persons of Participants that are not FINRA members (“NonFINRA Participants”).5 The CRD system fees are user-based, and there is no distinction
in the cost incurred by FINRA if the user is a FINRA member or a Non-FINRA
Participant.
FINRA recently amended one of the fees assessed for use of the CRD system.6
Accordingly, the Exchange proposes to amend the Price List to mirror the fee assessed by

The CRD system is the central licensing and registration system for the U.S.
securities industry. The CRD system enables individuals and firms seeking
registration with multiple states and self-regulatory organizations to do so by
submitting a single form, fingerprint card, and a combined payment of fees to
FINRA. Through the CRD system, FINRA maintains the qualification,
employment, and disciplinary histories of registered associated persons of brokerdealers.

The Exchange originally adopted fees for use of the CRD system in 2008 and
amended those fees in 2013. See Securities Exchange Act Release Nos. 57587
(March 31, 2008), 73 FR 18598 (April 4, 2008) (SR-CHX-2007-21); 68647
(January 14, 2013), 78 FR 4506 (January 22, 2013) (SR-CHX-2013-01). While
the Exchange lists these fees in its Price List, it does not collect or retain these
fees.

See Securities Exchange Act Release No. 90176 (October 14, 2020), 85 FR 66592
(October 20, 2020) (SR-FINRA-2020-032).

FINRA, which will be implemented concurrently with the amended FINRA fee on
January 2, 2022.7 Specifically, the Exchange proposes to amend the Price List to modify
the fee charged to Non-FINRA Participants for each initial Form U4 filed for the
registration of a representative or principal from $100 to $125.8
The Exchange notes that the proposed change is not otherwise intended to address
any other issues surrounding regulatory fees, and the Exchange is not aware of any
problems that Participants would have in complying with the proposed change.
2.

Statutory Basis

The Exchange believes that the proposed rule change is consistent with Section
6(b) of the Act,9 in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5),10
in particular, because it provides for the equitable allocation of reasonable dues, fees, and
other charges among its members, issuers, and other persons using its facilities and does
not unfairly discriminate between customers, issuers, brokers, or dealers.
The Exchange believes that the proposed fee change is reasonable because the fee
will be identical to that adopted by FINRA as of January 2, 2022 for use of the CRD
system to submit a Form U4. The costs of operating and improving the CRD system are
similarly borne by FINRA when a Non-FINRA Participant uses the CRD system;
accordingly, the fees collected for such use should, as proposed by the Exchange, mirror

The Exchange notes that it has only adopted the CRD system fees charged by
FINRA to Non-FINRA Participants when such fees are applicable. In this regard,
certain FINRA CRD system fees and requirements are specific to FINRA
members, but do not apply to NYSE Chicago-only Participants. Non-FINRA
Participants have been charged CRD system fees since 2008. See note 5, supra.
Participants that are also FINRA members are charged CRD system fees
according to Section 4 of Schedule A to the FINRA By-Laws.

See Section 4(b)(1) of Schedule A to the FINRA By-Laws effective on January 2,
2022. This fee is assessed when a Non-FINRA Participant submits an initial
Uniform Application for Securities Industry Regulation or Transfer (known as a
“Form U4”) filed by a member in the CRD system to register an individual.

15 U.S.C. 78f(b).

15 U.S.C. 78f(b)(4) & (5).

the fees assessed to FINRA members. In addition, as FINRA noted in amending its fees,
it believes that its proposed pricing structure is reasonable and correlates fees with the
components that drive its regulatory costs to the extent feasible.
The Exchange also believes that the proposed fee change provides for the
equitable allocation of reasonable fees and other charges, and does not unfairly
discriminate between customers, issuers, brokers, and dealers. The fee applies equally to
all individuals and firms required to report information to the CRD system, and the
proposed change will result in the same regulatory fee being charged to all Participants
required to report information to the CRD system and for services performed by FINRA
regardless of whether such Participants are FINRA members. Accordingly, the Exchange
believes that the fee collected for such use should increase in lockstep with the fee
adopted by FINRA as of January 2, 2022, as is proposed by the Exchange.
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. Specifically, the Exchange believes that the proposed change will reflect the
fee that will be assessed by FINRA for Form U4 filings as of January 2, 2022 and will
thus result in the same regulatory fees being charged to all Participants required to report
information to the CRD system and for services performed by FINRA, regardless of
whether or not such Participants are FINRA members.
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 foregoing rule change is effective upon filing pursuant to Section

19(b)(3)(A)11 of the Act and subparagraph (f)(2) of Rule 19b-412 thereunder, because it
establishes a due, fee, or other charge imposed by the Exchange.
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)13 of the Act 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 e-mail to rule-comments@sec.gov. Please include File Number SRNYSECHX-2021-18 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-2021-18. This file

number should be included on the subject line if e-mail is used. To help the Commission

15 U.S.C. 78s(b)(3)(A).

17 CFR 240.19b-4(f)(2).

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

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-NYSECHX-2021-18 and should be submitted on or before [insert date
21 days from publication in the Federal Register].
For the Commission, by the Division of Trading and Markets, pursuant to
delegated authority.14

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-00268 Filed: 1/10/2022 8:45 am; Publication Date: 1/11/2022]

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