Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change To Amend Rule 123D, 26462-26464 [2019-11799]
Download as PDF
26462
Federal Register / Vol. 84, No. 109 / Thursday, June 6, 2019 / Notices
discussions with Commission staff have
revealed complexities about the
operations of Legacy NMS Stock ATSs
including, among other things, matching
functionalities, means of order entry,
order interaction and execution
procedures, conditional order processes,
segmentation of orders, and
counterparty selection protocols. The
Commission staff needs additional time
to review novel and complex issues
such as these, which Commission staff
has discussed with Ustocktrade.
Extending the initial Form ATS–N
Commission review period for an
additional 120 calendar days will
provide Commission staff an
opportunity to continue its review of the
initial Form ATS–N disclosures and
discussions with Ustocktrade.
In the conversations between
Ustocktrade and Commission staff about
the initial Form ATS–N disclosures and
the ATS operations, Commission staff
and Ustocktrade have discussed a
potential amendment to update
Ustocktrade’s disclosures regarding the
complexities of its operations.
Extending the review period will enable
the NMS Stock ATS to amend its
disclosures, if appropriate, and allow
Commission staff to conduct a thorough
review of amendments to the initial
disclosures provided on the initial Form
ATS–N.
For the reasons given above, the
Commission is extending the review
period of the initial Form ATS–N
submitted by Ustocktrade. Accordingly,
pursuant to Rule 304(a)(1)(iv)(B),
October 6, 2019 is the date by which the
Commission may declare the initial
Form ATS–N submitted by Ustocktrade
ineffective.
By the Commission.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–11827 Filed 6–5–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86005; File No. 013–00117]
khammond on DSKBBV9HB2PROD with NOTICES
Initial Form ATS–N Filing; Notice of
Extension of Commission Review
Period
June 3, 2019.
On February 11, 2019, MS POOL
ATS–4 filed an initial Form ATS–N
(‘‘Form ATS–N’’) with the Securities
and Exchange Commission
(‘‘Commission’’). Pursuant to Rule 304
under the Securities and Exchange Act
of 1934 (‘‘Act’’), the Commission may,
after notice and an opportunity for
VerDate Sep<11>2014
16:11 Jun 05, 2019
Jkt 247001
hearing, declare an initial Form ATS–N
ineffective no later than 120 days from
the date of filing with the Commission,
or, if applicable, the extended review
period. June 11, 2019 is 120 calendar
days from the date of filing. Pursuant to
Rule 304(a)(1)(iv)(B), the Commission
may extend the initial Form ATS–N
review period for up to an additional
120 calendar days if the initial Form
ATS–N is unusually lengthy or raises
novel or complex issues that require
additional time for review.
MS POOL ATS–4 was operating
pursuant to an initial operation report
on Form ATS on file with the
Commission as of January 7, 2019.1 MS
POOL ATS–4 filed an initial Form ATS–
N on February 11, 2019. During the
initial 120 calendar day review period,
the Commission staff has been
reviewing the disclosures on MS POOL
ATS–4’s initial Form ATS–N. In
addition, the staff has been engaged in
ongoing discussions with MS POOL
ATS–4 about its disclosures and manner
of operations, as well as the
requirements of Form ATS–N, to
facilitate complete and comprehensible
disclosures that reflect the complexities
of those operations.
Form ATS–N requires NMS Stock
ATSs to file with the Commission, and
disclose to the public for the first time,
certain information, including
descriptions by the NMS Stock ATSs of
their fees, the trading activities by their
broker-dealer operators and their
affiliates in the NMS Stock ATSs, their
use of market data, their written
standards for granting access to trading
on the NMS Stock ATSs, and their
written safeguards and procedures for
protecting their subscribers’ confidential
trading information required by revised
Rule 301(b)(10) of Regulation ATS. The
initial Form ATS–N disclosures and
discussions with Commission staff have
revealed complexities about the
operations of Legacy NMS Stock ATSs
including, among other things, matching
functionalities, means of order entry,
order interaction and execution
procedures, conditional order processes,
segmentation of orders, and
counterparty selection protocols. The
Commission staff needs additional time
to review novel and complex issues
such as these, which Commission staff
has discussed with MS POOL ATS–4.
Extending the initial Form ATS–N
Commission review period for an
additional 120 calendar days will
provide Commission staff an
1 An NMS Stock ATS (as defined in Rule 300(k)
of Regulation ATS) that was operating pursuant to
an initial operation report on Form ATS on file with
the Commission as of January 7, 2019 is a ‘‘Legacy
NMS Stock ATS.’’ 17 CFR 242.301(b)(2)(viii).
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
opportunity to continue its review of the
initial Form ATS–N disclosures and
discussions with MS POOL ATS–4.
In the conversations between MS
POOL ATS–4 and Commission staff
about the initial Form ATS–N
disclosures and the ATS operations,
Commission staff and MS POOL ATS–
4 have discussed a potential amendment
to update MS POOL ATS–4’s
disclosures regarding the complexities
of its operations. Extending the review
period will enable the NMS Stock ATS
to amend its disclosures, if appropriate,
and allow Commission staff to conduct
a thorough review of amendments to the
initial disclosures provided on the
initial Form ATS–N.
For the reasons given above, the
Commission is extending the review
period of the initial Form ATS–N
submitted by MS POOL ATS–4.
Accordingly, pursuant to Rule
304(a)(1)(iv)(B), October 9, 2019 is the
date by which the Commission may
declare the initial Form ATS–N
submitted by MS POOL ATS–4
ineffective.
By the Commission.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–11871 Filed 6–5–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85990; File No. SR–NYSE–
2019–32]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change To
Amend Rule 123D
May 31, 2019
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 May 24,
2019, 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 Exchange. 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
Rule 123D to permit the Exchange to
1 15
2 17
E:\FR\FM\06JNN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
06JNN1
Federal Register / Vol. 84, No. 109 / Thursday, June 6, 2019 / Notices
declare a regulatory halt in a security
that traded in the over-the-counter
market prior to the initial pricing on the
Exchange. 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rule 123D to permit the Exchange to
declare a regulatory halt in a security
that traded in the over-the-counter
market prior to the initial pricing on the
Exchange.
khammond on DSKBBV9HB2PROD with NOTICES
Proposed Rule Change
Current Rule 123D(d) permits the
Exchange to declare a regulatory halt in
a security that is the subject of an initial
pricing on the Exchange of a security
that has not been listed on a national
securities exchange or traded in the
over-the-counter market pursuant to
FINRA Form 211 (the ‘‘OTC market’’)
immediately prior to the initial pricing.
Accordingly, the Exchange has authority
to declare a regulatory halt for any
initial listing that is not a transfer from
either another national securities
exchange or the OTC market. Regulatory
halts under the rule terminate when the
DMM opens the security.
The Exchange proposes to delete the
clause ‘‘or traded in the over-thecounter market pursuant to FINRA Form
211’’ before ‘‘immediately prior to the
initial pricing.’’ The proposed
amendment would thus enable the
Exchange to declare a regulatory halt for
a security that is having its initial listing
on the Exchange that was traded in the
OTC market immediately prior to its
initial pricing on the Exchange.
The Exchange believes that it would
be consistent with the protection of
VerDate Sep<11>2014
16:11 Jun 05, 2019
Jkt 247001
investors and the public interest for the
Exchange, as a primary listing exchange,
to have to authority to declare a
regulatory halt for security that was
previously traded in the OTC market
prior to its initial pricing on the
Exchange. An OTC market security that
will be listed on a primary listing
exchange will be removed from the OTC
trading list on the day prior to its initial
pricing on the Exchange. However, on
the day of its initial listing, such
security can trade on an unlisted trading
permit (‘‘UTP’’) basis before the first
transaction on the primary listing
exchange. The Exchange believes that
permitting the Exchange to declare a
regulatory halt in such securities before
trading on the Exchange begins would
avoid potential price disparities or
anomalies that may occur during any
UTP trading before the first transaction
on the primary listing exchange. More
specifically, the Exchange believes that
quoting and trading in the pre-market of
an OTC transfer can be erratic and
investors may be harmed if their
securities trade during this period. The
Exchange believes that the proposed
limited authority to declare a regulatory
halt in the hours prior to the OTC
transfer pricing on the Exchange would
mitigate any potential price disparities
and contribute to a fair and orderly
market once the security opens on the
Exchange. The Exchange believes that
such authority would be consistent with
the protection of investors and the
public interest.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,3 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,4 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices,
promote just and equitable principles of
trade, remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and protect investors and the
public interest.
The Exchange believes that the
proposed amendment to Rule 123D to
provide authority to declare a regulatory
halt in a security that is an OTC transfer
would remove impediments to and
perfect the mechanism of a free and
open market and a national market
system by providing the Exchange with
authority to halt trading across all
markets for a security that has traded in
the OTC market and not previously
listed on the Exchange, but for which a
3 15
4 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00067
Fmt 4703
Sfmt 4703
26463
regulatory halt would promote fair and
orderly markets. The Exchange believes
that permitting the Exchange to declare
a regulatory halt in such securities
before trading on the Exchange begins
would avoid potential price disparities
or anomalies that may occur during any
UTP trading before the first transaction
on the primary listing exchange. More
specifically, the Exchange believes that
quoting and trading in the pre-market of
an OTC transfer can be erratic and
investors may be harmed if their
securities trade during this period. The
Exchange therefore believes that having
the authority to declare a regulatory halt
for a security that is the subject of an
OTC transfer is consistent with the
protection of investors and the public
interest and would promote fair and
orderly markets by helping to protect
against volatility in pricing before the
initial transaction on the primary listing
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. The
Exchange believes that the benefit to
investors to halt trading in a security
that transfers from an OTC market to a
primary listing exchange outweighs any
burden on competition that may result
from a regulatory halt in such security
before the initial listing on the primary
listing exchange. The proposed rule
change is consistent with existing
authority for the Exchange to declare a
regulatory halt in trading of a security
before the initial pricing on the
Exchange and would extend that
authority to a transfer from the OTC
market.
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
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
E:\FR\FM\06JNN1.SGM
06JNN1
26464
Federal Register / Vol. 84, No. 109 / Thursday, June 6, 2019 / Notices
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be 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:
• 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–
NYSE–2019–32 on the subject line.
khammond on DSKBBV9HB2PROD with NOTICES
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–NYSE–2019–32. 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
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–NYSE–2019–32, and
16:11 Jun 05, 2019
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.5
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–11799 Filed 6–5–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86006; File No. 013–00139]
Electronic Comments
VerDate Sep<11>2014
should be submitted on or before June
27, 2019.
Jkt 247001
Initial Form ATS–N Filing; Notice of
Extension of Commission Review
Period
June 3, 2019.
On February 13, 2019, MS RPOOL
ATS–6 filed an initial Form ATS–N
(‘‘Form ATS–N’’) with the Securities
and Exchange Commission
(‘‘Commission’’). Pursuant to Rule 304
under the Securities and Exchange Act
of 1934 (‘‘Act’’), the Commission may,
after notice and an opportunity for
hearing, declare an initial Form ATS–N
ineffective no later than 120 days from
the date of filing with the Commission,
or, if applicable, the extended review
period. June 13, 2019 is 120 calendar
days from the date of filing. Pursuant to
Rule 304(a)(1)(iv)(B), the Commission
may extend the initial Form ATS–N
review period for up to an additional
120 calendar days if the initial Form
ATS–N is unusually lengthy or raises
novel or complex issues that require
additional time for review.
MS RPOOL ATS–6 was operating
pursuant to an initial operation report
on Form ATS on file with the
Commission as of January 7, 2019.1 MS
RPOOL ATS–6 filed an initial Form
ATS–N on February 13, 2019. During
the initial 120 calendar day review
period, the Commission staff has been
reviewing the disclosures on MS
RPOOL ATS–6’s initial Form ATS–N. In
addition, the staff has been engaged in
ongoing discussions with MS RPOOL
ATS–6 about its disclosures and manner
of operations, as well as the
requirements of Form ATS–N, to
facilitate complete and comprehensible
disclosures that reflect the complexities
of those operations.
Form ATS–N requires NMS Stock
ATSs to file with the Commission, and
5 17
CFR 200.30–3(a)(12).
NMS Stock ATS (as defined in Rule 300(k)
of Regulation ATS) that was operating pursuant to
an initial operation report on Form ATS on file with
the Commission as of January 7, 2019 is a ‘‘Legacy
NMS Stock ATS.’’ 17 CFR 242.301(b)(2)(viii).
1 An
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
disclose to the public for the first time,
certain information, including
descriptions by the NMS Stock ATSs of
their fees, the trading activities by their
broker-dealer operators and their
affiliates in the NMS Stock ATSs, their
use of market data, their written
standards for granting access to trading
on the NMS Stock ATSs, and their
written safeguards and procedures for
protecting their subscribers’ confidential
trading information required by revised
Rule 301(b)(10) of Regulation ATS. The
initial Form ATS–N disclosures and
discussions with Commission staff have
revealed complexities about the
operations of Legacy NMS Stock ATSs
including, among other things, matching
functionalities, means of order entry,
order interaction and execution
procedures, conditional order processes,
segmentation of orders, and
counterparty selection protocols. The
Commission staff needs additional time
to review novel and complex issues
such as these, which Commission staff
has discussed with MS RPOOL ATS–6.
Extending the initial Form ATS–N
Commission review period for an
additional 120 calendar days will
provide Commission staff an
opportunity to continue its review of the
initial Form ATS–N disclosures and
discussions with MS RPOOL ATS–6.
In the conversations between MS
RPOOL ATS–6 and Commission staff
about the initial Form ATS–N
disclosures and the ATS operations,
Commission staff and MS RPOOL ATS–
6 have discussed a potential amendment
to update MS RPOOL ATS–6’s
disclosures regarding the complexities
of its operations. Extending the review
period will enable the NMS Stock ATS
to amend its disclosures, if appropriate,
and allow Commission staff to conduct
a thorough review of amendments to the
initial disclosures provided on the
initial Form ATS–N.
For the reasons given above, the
Commission is extending the review
period of the initial Form ATS–N
submitted by MS RPOOL ATS–6.
Accordingly, pursuant to Rule
304(a)(1)(iv)(B), October 11, 2019 is the
date by which the Commission may
declare the initial Form ATS–N
submitted by MS RPOOL ATS–6
ineffective.
By the Commission.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–11872 Filed 6–5–19; 8:45 am]
BILLING CODE 8011–01–P
E:\FR\FM\06JNN1.SGM
06JNN1
Agencies
[Federal Register Volume 84, Number 109 (Thursday, June 6, 2019)]
[Notices]
[Pages 26462-26464]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11799]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85990; File No. SR-NYSE-2019-32]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing of Proposed Rule Change To Amend Rule 123D
May 31, 2019
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 May 24, 2019, 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 Exchange. 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\ 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 123D to permit the Exchange to
[[Page 26463]]
declare a regulatory halt in a security that traded in the over-the-
counter market prior to the initial pricing on the Exchange. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 123D to permit the Exchange to
declare a regulatory halt in a security that traded in the over-the-
counter market prior to the initial pricing on the Exchange.
Proposed Rule Change
Current Rule 123D(d) permits the Exchange to declare a regulatory
halt in a security that is the subject of an initial pricing on the
Exchange of a security that has not been listed on a national
securities exchange or traded in the over-the-counter market pursuant
to FINRA Form 211 (the ``OTC market'') immediately prior to the initial
pricing. Accordingly, the Exchange has authority to declare a
regulatory halt for any initial listing that is not a transfer from
either another national securities exchange or the OTC market.
Regulatory halts under the rule terminate when the DMM opens the
security.
The Exchange proposes to delete the clause ``or traded in the over-
the-counter market pursuant to FINRA Form 211'' before ``immediately
prior to the initial pricing.'' The proposed amendment would thus
enable the Exchange to declare a regulatory halt for a security that is
having its initial listing on the Exchange that was traded in the OTC
market immediately prior to its initial pricing on the Exchange.
The Exchange believes that it would be consistent with the
protection of investors and the public interest for the Exchange, as a
primary listing exchange, to have to authority to declare a regulatory
halt for security that was previously traded in the OTC market prior to
its initial pricing on the Exchange. An OTC market security that will
be listed on a primary listing exchange will be removed from the OTC
trading list on the day prior to its initial pricing on the Exchange.
However, on the day of its initial listing, such security can trade on
an unlisted trading permit (``UTP'') basis before the first transaction
on the primary listing exchange. The Exchange believes that permitting
the Exchange to declare a regulatory halt in such securities before
trading on the Exchange begins would avoid potential price disparities
or anomalies that may occur during any UTP trading before the first
transaction on the primary listing exchange. More specifically, the
Exchange believes that quoting and trading in the pre-market of an OTC
transfer can be erratic and investors may be harmed if their securities
trade during this period. The Exchange believes that the proposed
limited authority to declare a regulatory halt in the hours prior to
the OTC transfer pricing on the Exchange would mitigate any potential
price disparities and contribute to a fair and orderly market once the
security opens on the Exchange. The Exchange believes that such
authority would be consistent with the protection of investors and the
public interest.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\3\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\4\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
promote just and equitable principles of trade, remove impediments to
and perfect the mechanism of a free and open market and a national
market system, and protect investors and the public interest.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed amendment to Rule 123D to
provide authority to declare a regulatory halt in a security that is an
OTC transfer would remove impediments to and perfect the mechanism of a
free and open market and a national market system by providing the
Exchange with authority to halt trading across all markets for a
security that has traded in the OTC market and not previously listed on
the Exchange, but for which a regulatory halt would promote fair and
orderly markets. The Exchange believes that permitting the Exchange to
declare a regulatory halt in such securities before trading on the
Exchange begins would avoid potential price disparities or anomalies
that may occur during any UTP trading before the first transaction on
the primary listing exchange. More specifically, the Exchange believes
that quoting and trading in the pre-market of an OTC transfer can be
erratic and investors may be harmed if their securities trade during
this period. The Exchange therefore believes that having the authority
to declare a regulatory halt for a security that is the subject of an
OTC transfer is consistent with the protection of investors and the
public interest and would promote fair and orderly markets by helping
to protect against volatility in pricing before the initial transaction
on the primary listing 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. The Exchange believes that
the benefit to investors to halt trading in a security that transfers
from an OTC market to a primary listing exchange outweighs any burden
on competition that may result from a regulatory halt in such security
before the initial listing on the primary listing exchange. The
proposed rule change is consistent with existing authority for the
Exchange to declare a regulatory halt in trading of a security before
the initial pricing on the Exchange and would extend that authority to
a transfer from the OTC market.
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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
[[Page 26464]]
(A) By order approve or disapprove the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be 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 [email protected]. Please include
File Number SR-NYSE-2019-32 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-NYSE-2019-32. 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 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-NYSE-2019-32, and should be submitted on
or before June 27, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-11799 Filed 6-5-19; 8:45 am]
BILLING CODE 8011-01-P