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Federal Register / Vol. 86, No. 171 / Wednesday, September 8, 2021 / Notices
2021021 and should be submitted on or before September 29, 2021.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.23
J. Matthew DeLesDernier, Assistant Secretary.
FR Doc. 202119291 Filed 9721; 8:45 am BILLING CODE 801101P

A. Self-Regulatory Organizations Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
SECURITIES AND EXCHANGE
COMMISSION
Release No. 3492845; File No. SRNYSE
202148

Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Delete the Order Audit Trail System Rules in the Rule 7400 Series September 1, 2021.

Pursuant to Section 19b1 of the Securities Exchange Act of 1934
Act,1 and Rule 19b4 thereunder,2
notice is hereby given that on August 30, 2021, New York Stock Exchange LLC NYSE 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 from interested persons.

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I. Self-Regulatory Organizations Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to delete the Order Audit Trail System OATS
rules in the Rule 7400 Series as these Rules provide for the collection of information that is duplicative of the data collection requirements of the CAT.
Further, the Financial Industry Regulatory Authority FINRA has determined to eliminate its OATS rules.
The proposed rule change is available on the Exchanges website at www.nyse.com, at the principal office of the Exchange, and at the Commissions Public Reference Room.
II. Self-Regulatory Organizations 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, 23 17

CFR 200.303a12.
U.S.C. 78sb1.
2 17 CFR 240.19b4.
1 15

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and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below.
The self-regulatory organization has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements.

1. Purpose Rule 613 of Regulation NMS requires national securities exchanges and FINRA to create, implement, and maintain a consolidated audit trail to capture customer and order event information for orders in NMS
Securities and OTC Equity Securities, across all markets, from the time of order inception through routing, cancellation, modification, or execution in a single consolidated data source.
The Participants filed the Plan to comply with Rule 613 of Regulation NMS under the Act. The Plan was published for comment in the Federal Register on May 17, 2016,3 and approved by the Commission, as modified, on November 15, 2016.4
On August 14, 2020, FINRA filed with the Commission a proposed rule change to delete the OATS rules once Industry Members are effectively reporting to the CAT the OATS Retirement Filing.5
On October 29, 2020, FINRA filed Amendment No. 1 to the proposed rule change Amendment No. 1 and a response to the comments that were submitted on the original filing Response to Comments.6 On November 30, 2020, the Commission approved the proposed rule change, as modified by Amendment No. 1, on an accelerated basis.7 On June 17, 2021, FINRA filed a proposed rule change setting forth the basis for its determination that the accuracy and reliability of the CAT meet the 3 See Securities Exchange Act Release No. 77724
April 27, 2016, 81 FR 30614 May 17, 2016.
4 See Securities Exchange Act Release No. 79318
November 15, 2016, 81 FR 84696 November 23, 2016 Order Approving the National Market System Plan Governing the Consolidated Audit Trail Approval Order.
5 See Securities Exchange Act Release No. 89679
August 26, 2020, 85 FR 54461 September 1, 2020
Notice of Filing of File No. SRFINRA2020024.
6 See Letter from Lisa C. Horrigan, Associate General Counsel, FINRA, to Vanessa Countryman, Secretary, Commission, dated October 29, 2020.
7 See Securities Exchange Act Release No. 90535
November 30, 2020, 85 FR 78395 December 4, 2020 Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of SR
FINRA2020024.

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standards approved by the Commission in the OATS Retirement Filing for purposes of eliminating the OATS
rules.8 The FINRA proposal stated that FINRA would retire OATS effective September 1, 2021.
After conducting an analysis of its rules in accordance with the CAT NMS
Plan, the Exchange has determined that the information collected pursuant to the OATS rules is intended to be collected by CAT. Further, the Exchange believes that the Rule 7400 Series will no longer be necessary and proposes to delete such rules from the Exchanges rulebook unless FINRA decides not to retire OATS as scheduled in which case member organizations will still be required to report to OATS. Discussed below is a description of the duplicative rule requirements as well as the timeline for eliminating the duplicative rules followed by a discussion on the OATS Retirement Filing that formed the basis for retiring OATS.
Duplicative OATS Requirements The Rule 7400 Series consists of Rules 7410 through 7470 and sets forth the recording and reporting requirements of the OATS Rules. The OATS Rules require all Exchange member organizations and associated persons to record in electronic form and report to FINRA, on a daily basis, certain information with respect to orders originated, received, transmitted, modified, canceled, or executed by members in all NMS stocks, as that term is defined in Rule 600b47 of Regulation NMS,9 traded on the Exchange, including NYSE-listed securities. The Exchange relies on the information reported to OATS either to conduct surveillance or to facilitate surveillance conducted by FINRA
pursuant to a regulatory services agreement RSA. This information is used by Exchange and FINRA staff to conduct surveillance and investigations of member firms for violations of Exchange and FINRA rules and federal securities laws. The Exchange believes it is appropriate to retire OATS because the requirements of the Rule 7400 Series are duplicative of information available in the CAT and thus will no longer be necessary now that the CAT is operational.
8 See Securities Exchange Act Release No. 92239
June 23, 2021, 86 FR 34293 June 29, 2021 SR
FINRA2021017 Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Retirement of FINRAs Order Audit Trail System.
9 17 CFR 242.600B47.

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