Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.31E Relating to the Minimum Trade Size Modifier, 6188-6190 [2019-03218]
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Federal Register / Vol. 84, No. 38 / Tuesday, February 26, 2019 / Notices
Act if such exemption is necessary or
appropriate in the public interest and
consistent with the protection of
investors and the purposes fairly
intended by the policy and provisions of
the Act. Section 12(d)(1)(J) of the Act
provides that the Commission may
exempt any person, security, or
transaction, or any class or classes of
persons, securities, or transactions, from
any provision of section 12(d)(1) if the
exemption is consistent with the public
interest and the protection of investors.
Section 17(b) of the Act authorizes the
Commission to grant an order
permitting a transaction otherwise
prohibited by section 17(a) if it finds
that (a) the terms of the proposed
transaction are fair and reasonable and
do not involve overreaching on the part
of any person concerned; (b) the
proposed transaction is consistent with
the policies of each registered
investment company involved; and (c)
the proposed transaction is consistent
with the general purposes of the Act.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Eduardo A. Aleman,
Deputy Secretary.
BILLING CODE 8011–01–P
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.
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85168; File No. SR–
NYSEAMER–2019–01]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 7.31E
Relating to the Minimum Trade Size
Modifier
February 20, 2019.
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 February
11, 2019, NYSE American LLC (the
‘‘Exchange’’ or ‘‘NYSE American’’) filed
with the Securities and Exchange
Commission (the ‘‘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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
16:24 Feb 25, 2019
The Exchange proposes to amend
Rule 7.31E relating to the Minimum
Trade Size Modifier. 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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2019–03312 Filed 2–25–19; 8:45 am]
VerDate Sep<11>2014
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Jkt 247001
The Exchange proposes to amend
Rule 7.31E relating to the Minimum
Trade Size (‘‘MTS’’) Modifier.
The MTS Modifier is currently
available for Limit IOC Orders,4
Midpoint-Liquidity (‘‘MPL’’) Orders,5
Tracking Orders,6 Non-Displayed
Primary Pegged Orders,7 and
Discretionary Pegged Orders.8 As such,
the MTS Modifier is currently available
only for orders that are not displayed
and do not route. On arrival, Limit IOC
4 See Rule 7.31E(b)(2)(A). In sum, a Limit Order
designated IOC is to be traded in whole or in part
on the Exchange as soon as such order is received,
and the quantity not so traded is cancelled. Id.
5 See Rule 7.31E(d)(3). In sum, an MPL Order is
a ‘‘Limit Order that is not displayed and does not
route, with a working price at the midpoint of the
PBBO.’’ Id.
6 See Rule 7.31E(d)(4). In sum, a Tracking Order
is an order to buy (sell) with a limit price that is
not displayed, does not route, must be entered in
round lots and designated Day, and will trade only
with an order to sell (buy) that is eligible to route.
7 See Rule 7.31E(h)(2). In sum, a Non-Displayed
Pegged Order is a Pegged Order to buy (sell) with
a working price that is pegged to the PBB (PBO),
with no offset allowed. All Pegged Orders are not
displayed and do not route. See Rule 7.31E(h).
8 See Rule 7.31E(h)(3). In sum, a Discretionary
Pegged Order is a Pegged Order to buy (sell) that
upon entry to the Exchange is assigned a working
price equal to the lower (higher) of the midpoint of
the PBBO (‘‘Midpoint Price’’) or the limit price of
the order. All Pegged Orders are not displayed and
do not route. See Rule 7.31E(h).
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Orders, MPL Orders, Non-Displayed
Primary Pegged Orders, and
Discretionary Pegged Orders with an
MTS Modifier will trade against contraside orders in the Exchange Book that in
the aggregate or individually, meet the
MTS.9 Once resting, MPL Orders,
Tracking Orders, Non-Displayed
Primary Pegged Orders, and
Discretionary Pegged Orders with an
MTS Modifier function similarly: If a
contra-side order does not meet the
MTS, the incoming order will not trade
with and may trade through the resting
order with the MTS Modifier. In
addition, MPL Orders, Tracking Orders,
Non-Displayed Primary Pegged Orders,
and Discretionary Pegged Orders with
an MTS Modifier will be cancelled if
such orders are traded in part or
reduced in size and the remaining
quantity is less than the MTS.
First, the Exchange proposes to
amend its rules to make MTS Modifier
functionality available for an additional
non-displayed order that does not route,
i.e., Non-Displayed Limit Orders.10 This
proposed change is based on the rules
of both the Nasdaq Stock Market LLC
(‘‘Nasdaq’’) and Investors Exchange LLC
(‘‘IEX’’), which both offer minimum
trade size functionality for orders that
are not displayed and that do not
route.11
Second, the Exchange proposes to
allow ETP Holder to elect that Limit IOC
Orders with an MTS Modifier trade on
arrival against contra-side orders in the
Exchange Book that individually meet
such order’s MTS. Rule 7.31E(i)(3)(B)
requires an ETP Holder to specify
whether an order with an MTS Modifier
would trade on arrival against contraside orders in the Exchange Book that in
the aggregate or individually meet such
order’s MTS. Currently, an ETP Holder
cannot elect that a Limit IOC Order with
an MTS Modifier trade only with
9 Tracking Orders, including Tracking Orders
with an MTS Modifier, are passive orders that do
not trade on arrival.
10 See Rule 7.31E(d)(2). In sum, a Non-Displayed
Limit Order is a Limit Order that is not displayed
and does not route. Id. The Exchange understands
that its affiliated exchanges, the New York Stock
Exchange, Inc. (‘‘NYSE’’), NYSE National, Inc.
(‘‘NYSE National’’), and NYSE Arca, Inc. (‘‘NYSE
Arca’’, together with the Exchange, NYSE National
and NYSE, the ‘‘Affiliate SROs’’) have either filed
or intend to file similar proposes rule changes with
the Commission to extend the availability of their
respective MTS Modifiers to Non-Displayed Limit
Orders. See SR–NYSE–2019–01 (filed for immediate
effectiveness on January 28, 2019) and SR–
NYSEArca–2019–03 (filed for immediate
effectiveness on January 28, 2019).
11 See Nasdaq Rule 4703(e) (Nasdaq’s ‘‘Minimum
Quantity Order’’ may not be displayed and will be
rejected if it includes an instruction to route) and
IEX Rule 11.190(b)(11)(A) (IEX’s ‘‘Minimum
Quantity Order’’ or ‘‘MQTY’’ is a non-displayed,
non-routable order’’).
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Federal Register / Vol. 84, No. 38 / Tuesday, February 26, 2019 / Notices
individual order(s) in the Exchange
Book that each meets such order’s MTS.
The Exchange proposes to remove this
restriction from Rule 7.31E(i)(3)(B)(ii).
*
*
*
*
*
Because of the technology changes
associated with this proposed rule
change, the Exchange will announce the
implementation date of this proposed
rule change by Trader Update. The
Exchange anticipates that the
implementation date will be in the
second quarter of 2019.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),12 in general, and furthers the
objectives of Section 6(b)(5),13 in
particular, because 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.
The Exchange believes that the
proposal to expand the availability of
the Exchange’s existing MTS Modifier to
an additional non-displayed, nonroutable order, e.g., Non-Displayed
Limit Orders, would 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, because the proposed
rule change is based on similar
minimum trade size functionality on
Nasdaq and IEX, which both similarly
make minimum trade size functionality
available to non-displayed, non-routable
orders.14
The Exchange also believes that the
proposal to allow ETP Holder to elect
that Limit IOC Orders with an MTS
Modifier trade on arrival against contraside orders in the Exchange Book that
individually meet such order’s MTS
would 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,
because the proposed rule change
would provide ETP Holders greater
control over the execution of their Limit
IOC Orders. The Exchange did not
previously support functionality that
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
14 See supra note 11.
permitted Limit IOC Orders with an
MTS Modifier to trade against
individual orders that each meet such
order’s MTS. The Exchange has since
made the necessary technology changes
and, therefore, proposes to remove this
restriction from Rule 7.31E(i)(3)(B)(ii) as
it is no longer necessary. Furthermore,
the Exchange’s affiliates, NYSE and
NYSE Arca recently filed proposed rule
changes with the Commission to modify
their respective MTS Modifiers to align
with that of NYSE American and allow
orders with an MTS Modifier to execute
against individual orders that each meet
the incoming order’s MTS and the
NYSE and NYSE Arca proposals did not
include a similar restriction on Limit
IOC Orders.15 The Exchange notes that
similar minimum trade size
functionality on Nasdaq and IEX does
not prohibit Limit IOC Orders with an
MTS Modifier from being able to
execute only against individual orders
that meet the order’s MTS.
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
Exchange believes that the proposed
rule change is designed to increase
competition by making available on the
Exchange functionality that is already
available on Nasdaq and IEX. The
Exchange also believes that the
proposed rule change would promote
competition by providing market
participants with an additional venue to
which to route non-displayed, nonroutable orders with an MTS Modifier.
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)(iii) of the Act 16 and Rule
19b–4(f)(6) thereunder.17 Because the
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
12 15
15 See
13 15
16 15
VerDate Sep<11>2014
16:24 Feb 25, 2019
supra note 10.
U.S.C. 78s(b)(3)(A)(iii).
17 17 CFR 240.19b–4(f)(6).
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6189
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.18
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) 19 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEAMER–2019–01 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–NYSEAMER–2019–01. 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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
18 17 CFR 240.19b–4(f)(6). In addition, Rule 19b4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its 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.
19 15 U.S.C. 78s(b)(2)(B).
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Federal Register / Vol. 84, No. 38 / Tuesday, February 26, 2019 / Notices
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–NYSEAMER–2019–01 and
should be submitted on or before March
19, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–03218 Filed 2–25–19; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Data Collection Available for Public
Comments
FOR FURTHER INFORMATION CONTACT:
Joseph Eitel, Director, Office of
Personnel Security, joseph.eitel@
sba.gov, 303–844–7750, or Curtis B.
Rich, Management Analyst, 202–205–
7030, curtis.rich@sba.gov.
SUPPLEMENTARY INFORMATION: Small
Business Administration SBA Form 912
is used to collect information needed to
make character determinations with
respect to applicants for monetary loan
assistance or applicants for participation
in SBA programs. The information
collected is used as the basis for
conducting name checks at national
Federal Bureau of Investigation (FBI)
and local levels.
Solicitation of Public Comments
SBA is requesting comments on (a)
Whether the collection of information is
necessary for the agency to properly
perform its functions; (b) whether the
burden estimates are accurate; (c)
whether there are ways to minimize the
burden, including through the use of
automated techniques or other forms of
information technology; and (d) whether
there are ways to enhance the quality,
utility, and clarity of the information.
Summary of Information Collection
Title: Statement of Personal History.
Description of Respondents:
Applicants participating in SBA
programs.
Form Number: SBA Form 912.
Total Estimated Annual Responses:
142,000.
Total Estimated Annual Hour Burden:
35,500.
Curtis Rich,
Management Analyst.
60-Day notice and request for
comments.
ACTION:
[FR Doc. 2019–03230 Filed 2–25–19; 8:45 am]
BILLING CODE 8025–01–P
The Small Business
Administration (SBA) intends to request
approval, from the Office of
Management and Budget (OMB) for the
collection of information described
below. The Paperwork Reduction Act
(PRA) requires federal agencies to
publish a notice in the Federal Register
concerning each proposed collection of
information before submission to OMB,
and to allow 60 days for public
comment in response to the notice. This
notice complies with that requirement.
DATES: Submit comments on or before
April 29, 2019.
ADDRESSES: Send all comments to
Joseph Eitel, Director, Office of
Personnel Security, Small Business
Administration, 721 19th Street, Room
392, Denver, CO 80202.
SUMMARY:
20 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
16:24 Feb 25, 2019
Jkt 247001
SMALL BUSINESS ADMINISTRATION
Data Collection Available for Public
Comments
60-Day notice and request for
comments.
Submit comments on or before
April 29, 2019.
ADDRESSES: Send all comments to
Jermanne Perry, Management Analyst,
Office of Surety Guarantee, Small
Business Administration, 409 3rd Street,
6th Floor, Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT:
Jermanne Perry, Management Analyst,
Office of Surety Guarantee,
Jermanne.perry@sba.gov 202–401–8275,
or Curtis B. Rich, Management Analyst,
202–205–7030, curtis.rich@sba.gov.
SUPPLEMENTARY INFORMATION: Small
Business Administration (SBA) Surety
Bond Guarantee Program was created to
encourage surety companies to provide
bonding for small contractors. The
information collected on this form from
small businesses and surety companies
will be used to evaluate the eligibility of
applicants for contracts up to $250,000.
DATES:
Solicitation of Public Comments
SBA is requesting comments on (a)
Whether the collection of information is
necessary for the agency to properly
perform its functions; (b) whether the
burden estimates are accurate; (c)
whether there are ways to minimize the
burden, including through the use of
automated techniques or other forms of
information technology; and (d) whether
there are ways to enhance the quality,
utility, and clarity of the information.
Summary of Information Collection
Title: Quick Bond Guarantee
Application and Agreement.
Description of Respondents: Surety
Companies.
Form Number: SBA Form 990A.
Total Estimated Annual Responses:
21,046.
Total Estimated Annual Hour Burden:
3,065.
Curtis Rich,
Management Analyst.
[FR Doc. 2019–03229 Filed 2–25–19; 8:45 am]
BILLING CODE 8025–01–P
ACTION:
The Small Business
Administration (SBA) intends to request
approval, from the Office of
Management and Budget (OMB) for the
collection of information described
below. The Paperwork Reduction Act
(PRA) requires federal agencies to
publish a notice in the Federal Register
concerning each proposed collection of
information before submission to OMB,
and to allow 60 days for public
comment in response to the notice. This
notice complies with that requirement.
SUMMARY:
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SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA–2019–0005]
Agreement on Social Security Between
the United States and Iceland; Entry
Into Force
Social Security Administration.
Notice.
AGENCY:
ACTION:
We are giving notice that an
agreement coordinating the United
States (U.S.) and Icelandic social
security programs will go into force
effective on March 1, 2019. The
SUMMARY:
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]]>Agencies
[Federal Register Volume 84, Number 38 (Tuesday, February 26, 2019)]
[Notices]
[Pages 6188-6190]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03218]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85168; File No. SR-NYSEAMER-2019-01]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 7.31E Relating to the Minimum Trade Size Modifier
February 20, 2019.
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 February 11, 2019, NYSE American LLC (the ``Exchange'' or
``NYSE American'') filed with the Securities and Exchange Commission
(the ``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 7.31E relating to the Minimum
Trade Size Modifier. 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 to amend Rule 7.31E relating to the Minimum
Trade Size (``MTS'') Modifier.
The MTS Modifier is currently available for Limit IOC Orders,\4\
Midpoint-Liquidity (``MPL'') Orders,\5\ Tracking Orders,\6\ Non-
Displayed Primary Pegged Orders,\7\ and Discretionary Pegged Orders.\8\
As such, the MTS Modifier is currently available only for orders that
are not displayed and do not route. On arrival, Limit IOC Orders, MPL
Orders, Non-Displayed Primary Pegged Orders, and Discretionary Pegged
Orders with an MTS Modifier will trade against contra-side orders in
the Exchange Book that in the aggregate or individually, meet the
MTS.\9\ Once resting, MPL Orders, Tracking Orders, Non-Displayed
Primary Pegged Orders, and Discretionary Pegged Orders with an MTS
Modifier function similarly: If a contra-side order does not meet the
MTS, the incoming order will not trade with and may trade through the
resting order with the MTS Modifier. In addition, MPL Orders, Tracking
Orders, Non-Displayed Primary Pegged Orders, and Discretionary Pegged
Orders with an MTS Modifier will be cancelled if such orders are traded
in part or reduced in size and the remaining quantity is less than the
MTS.
---------------------------------------------------------------------------
\4\ See Rule 7.31E(b)(2)(A). In sum, a Limit Order designated
IOC is to be traded in whole or in part on the Exchange as soon as
such order is received, and the quantity not so traded is cancelled.
Id.
\5\ See Rule 7.31E(d)(3). In sum, an MPL Order is a ``Limit
Order that is not displayed and does not route, with a working price
at the midpoint of the PBBO.'' Id.
\6\ See Rule 7.31E(d)(4). In sum, a Tracking Order is an order
to buy (sell) with a limit price that is not displayed, does not
route, must be entered in round lots and designated Day, and will
trade only with an order to sell (buy) that is eligible to route.
\7\ See Rule 7.31E(h)(2). In sum, a Non-Displayed Pegged Order
is a Pegged Order to buy (sell) with a working price that is pegged
to the PBB (PBO), with no offset allowed. All Pegged Orders are not
displayed and do not route. See Rule 7.31E(h).
\8\ See Rule 7.31E(h)(3). In sum, a Discretionary Pegged Order
is a Pegged Order to buy (sell) that upon entry to the Exchange is
assigned a working price equal to the lower (higher) of the midpoint
of the PBBO (``Midpoint Price'') or the limit price of the order.
All Pegged Orders are not displayed and do not route. See Rule
7.31E(h).
\9\ Tracking Orders, including Tracking Orders with an MTS
Modifier, are passive orders that do not trade on arrival.
---------------------------------------------------------------------------
First, the Exchange proposes to amend its rules to make MTS
Modifier functionality available for an additional non-displayed order
that does not route, i.e., Non-Displayed Limit Orders.\10\ This
proposed change is based on the rules of both the Nasdaq Stock Market
LLC (``Nasdaq'') and Investors Exchange LLC (``IEX''), which both offer
minimum trade size functionality for orders that are not displayed and
that do not route.\11\
---------------------------------------------------------------------------
\10\ See Rule 7.31E(d)(2). In sum, a Non-Displayed Limit Order
is a Limit Order that is not displayed and does not route. Id. The
Exchange understands that its affiliated exchanges, the New York
Stock Exchange, Inc. (``NYSE''), NYSE National, Inc. (``NYSE
National''), and NYSE Arca, Inc. (``NYSE Arca'', together with the
Exchange, NYSE National and NYSE, the ``Affiliate SROs'') have
either filed or intend to file similar proposes rule changes with
the Commission to extend the availability of their respective MTS
Modifiers to Non-Displayed Limit Orders. See SR-NYSE-2019-01 (filed
for immediate effectiveness on January 28, 2019) and SR-NYSEArca-
2019-03 (filed for immediate effectiveness on January 28, 2019).
\11\ See Nasdaq Rule 4703(e) (Nasdaq's ``Minimum Quantity
Order'' may not be displayed and will be rejected if it includes an
instruction to route) and IEX Rule 11.190(b)(11)(A) (IEX's ``Minimum
Quantity Order'' or ``MQTY'' is a non-displayed, non-routable
order'').
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Second, the Exchange proposes to allow ETP Holder to elect that
Limit IOC Orders with an MTS Modifier trade on arrival against contra-
side orders in the Exchange Book that individually meet such order's
MTS. Rule 7.31E(i)(3)(B) requires an ETP Holder to specify whether an
order with an MTS Modifier would trade on arrival against contra-side
orders in the Exchange Book that in the aggregate or individually meet
such order's MTS. Currently, an ETP Holder cannot elect that a Limit
IOC Order with an MTS Modifier trade only with
[[Page 6189]]
individual order(s) in the Exchange Book that each meets such order's
MTS. The Exchange proposes to remove this restriction from Rule
7.31E(i)(3)(B)(ii).
* * * * *
Because of the technology changes associated with this proposed
rule change, the Exchange will announce the implementation date of this
proposed rule change by Trader Update. The Exchange anticipates that
the implementation date will be in the second quarter of 2019.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\12\ in general, and
furthers the objectives of Section 6(b)(5),\13\ in particular, because
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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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposal to expand the availability
of the Exchange's existing MTS Modifier to an additional non-displayed,
non-routable order, e.g., Non-Displayed Limit Orders, would 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, because the proposed rule change is based on
similar minimum trade size functionality on Nasdaq and IEX, which both
similarly make minimum trade size functionality available to non-
displayed, non-routable orders.\14\
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\14\ See supra note 11.
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The Exchange also believes that the proposal to allow ETP Holder to
elect that Limit IOC Orders with an MTS Modifier trade on arrival
against contra-side orders in the Exchange Book that individually meet
such order's MTS would 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, because the
proposed rule change would provide ETP Holders greater control over the
execution of their Limit IOC Orders. The Exchange did not previously
support functionality that permitted Limit IOC Orders with an MTS
Modifier to trade against individual orders that each meet such order's
MTS. The Exchange has since made the necessary technology changes and,
therefore, proposes to remove this restriction from Rule
7.31E(i)(3)(B)(ii) as it is no longer necessary. Furthermore, the
Exchange's affiliates, NYSE and NYSE Arca recently filed proposed rule
changes with the Commission to modify their respective MTS Modifiers to
align with that of NYSE American and allow orders with an MTS Modifier
to execute against individual orders that each meet the incoming
order's MTS and the NYSE and NYSE Arca proposals did not include a
similar restriction on Limit IOC Orders.\15\ The Exchange notes that
similar minimum trade size functionality on Nasdaq and IEX does not
prohibit Limit IOC Orders with an MTS Modifier from being able to
execute only against individual orders that meet the order's MTS.
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\15\ See supra note 10.
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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 Exchange believes that
the proposed rule change is designed to increase competition by making
available on the Exchange functionality that is already available on
Nasdaq and IEX. The Exchange also believes that the proposed rule
change would promote competition by providing market participants with
an additional venue to which to route non-displayed, non-routable
orders with an MTS Modifier.
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)(iii) of the Act \16\ and Rule 19b-4(f)(6) thereunder.\17\
Because the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\18\
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\16\ 15 U.S.C. 78s(b)(3)(A)(iii).
\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its 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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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) \19\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\19\ 15 U.S.C. 78s(b)(2)(B).
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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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEAMER-2019-01 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-NYSEAMER-2019-01. 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 (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements
[[Page 6190]]
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-NYSEAMER-2019-01 and should be submitted
on or before March 19, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-03218 Filed 2-25-19; 8:45 am]
BILLING CODE 8011-01-P
