Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a New Rule 9.21-O, Delete Current Rules 9.21-O through 9.25-O, and Amend Rule 10.9551, 36149-36151 [2019-15874]
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Federal Register / Vol. 84, No. 144 / Friday, July 26, 2019 / Notices
disadvantage upon any category of
Exchange Applicant or Member.
Moreover, the Exchange does not expect
that its proposal will have an adverse
impact on competition among
exchanges for members; to the contrary,
the Exchange hopes that by clarifying,
reorganizing, and streamlining its
membership rules, and by making the
Exchange’s membership process less
burdensome for Applicants and
Members, the Exchange will improve its
competitive standing relative to other
exchanges.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 39 and
subparagraph (f)(6) of Rule 19b–4
thereunder.40
At any time within 60 days of the
filing of the 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
to determine whether the proposed rule
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:
jbell on DSK3GLQ082PROD with NOTICES
39 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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.
40 17
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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–
BX–2019–022 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–BX–2019–022. 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–BX–2019–022, and should
be submitted on or before August 16,
2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.41
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–15871 Filed 7–25–19; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86423; File No. SR–
NYSEARCA–2019–50]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Adopt a New Rule
9.21–O, Delete Current Rules 9.21–O
through 9.25–O, and Amend Rule
10.9551
July 22, 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 July 9,
2019, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 (1) adopt a
new Rule 9.21–O (Communications
with the Public) based on NYSE
American Rule 991, (2) delete current
Rules 9.21–O through 9.25–O, and (3)
amend Rule 10.9551 to add references to
proposed Rule 9.21–O. 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.
BILLING CODE 8011–01–P
PO 00000
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
41 17
CFR 200.30–3(a)(12).
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Federal Register / Vol. 84, No. 144 / Friday, July 26, 2019 / Notices
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 (1) adopt a
new Rule 9.21–O (Communications
with the Public) based on NYSE
American Rule 991 (Options
Communications), (2) delete Rules 9.21–
O through 9.25–O, and (3) amend Rule
10.9551 to add references to proposed
Rule 9.21–O.
jbell on DSK3GLQ082PROD with NOTICES
Background and Proposed Rule Filing
The Exchange recently adopted a new
set of rules governing investigations,
discipline of ETP Holders, OTP Holders,
OTP Firms, and covered persons,
sanctions, cease and desist authority,
and other procedural rules modeled on
the rules of the Exchange’s affiliates,
New York Stock Exchange LLC
(‘‘NYSE’’) and NYSE American LLC
(‘‘NYSE American’’), as well as those of
the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’).4 The new
disciplinary rules became effective on
May 27, 2019.5
In that filing, the Exchange adopted
Rule 10.9551 (Failure to Comply with
Public Communication Standards),
which permits the Exchange’s
regulatory staff to issue a written notice
requiring an ETP Holder, OTP Holder or
OTP Firm to file communications with
FINRA’s Advertising Regulation
Department at least 10 days prior to use
if the staff determined that the ETP
Holder had departed from the standards
of Rule 9.21–E (Communications with
the Public) and ‘‘any applicable options
rule.’’ 6 As the filing noted, the
Exchange did not have a rule
comparable to Rule 9.21–E for the
options market and undertook to submit
a rule filing to adopt a new Rule 9.21–
O based on NYSE American Rule 991
and to amend Rule 10.9551.7
The Exchange accordingly proposes to
adopt a new Rule 9.21–O titled
‘‘Communications with the Public.’’
Except for references to OTP Firm and
OTP Holder, proposed Rule 9.21–O is
substantially the same as NYSE
American Rule 991, which was in turn
4 See Securities Exchange Act Release No. 34–
85639 (April 12, 2019), 84 FR 16346 (April 18,
2019) (SR–NYSEARCA–2019–15) (Notice)
(‘‘Disciplinary Rules Adoption’’).
5 See NYSE Arca Options Regulatory Bulletin 19–
02 (April 26, 2019), available at https://
www.nyse.com/publicdocs/nyse/markets/nyse-arca/
rule-interpretations/2019/Regulatory%20Bulletin
%20re%20Arca%20Disciplinary%20Rules.%20
revised%2004.25.19%20V2.pdf.
6 See Disciplinary Rules Adoption, 84 FR at
16370.
7 See id., at n. 62.
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17:54 Jul 25, 2019
Jkt 247001
based on FINRA Rule 2220.8 The
Exchange proposes to delete its current
Rules 9.21–O through 9.25–O governing
communications with the public as
obsolete.
The Exchange proposes nonsubstantive conforming changes in Rule
10.9551(a) and (d) to replace the phrase
‘‘and any applicable options rule’’
following ‘‘Pursuant to Rule 9.21–
E(c)(5)(B)’’ with ‘‘Rule 9.21–O(c)(2).’’
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,9
in general, and furthers the objectives of
Section 6(b)(5) of the Act,10 in
particular, in that 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, and to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system.
The proposed changes will provide
greater harmonization among SROs
resulting in less burdensome and more
efficient regulatory compliance for
common members of the Exchange, the
Exchange’s affiliates, and FINRA. As
previously noted, the proposed rule text
is substantially the same as NYSE
American Rule 991, which was in turn
modeled on FINRA rules. As such, the
proposed rule change would foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities and would
remove impediments to and perfect the
mechanism of a free and open market
and a national market system. The
Exchange further believes that adopting
NYSE American’s rule governing
options communications with the
public will provide its permit holders
with a clearer, consistent, and more
comprehensive regulatory scheme by
harmonizing the Exchange’s rule
concerning options communications
with NYSE American’s rule and the
FINRA rule in the same subject matter.
The proposed rule change would
continue to ensure a uniform regulatory
approach and would reduce any
potential risks or inefficiencies in rules.
The Exchange further notes that the
changes proposed herein are neither
novel nor controversial and are modeled
on existing FINRA rules.
8 See Securities Exchange Act Release No. 61499
(February 4, 2010), 75 FR 6738 (February 10, 2010)
(SR–NYSEAmex–2010–04); Securities Exchange
Act Release No. 82402 (December 26, 2017), 83 FR
179 (January 2, 2018) (SR–NYSEAmex–2017–39).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
The Exchange also believes that the
proposal to use the terms ‘‘OTP Firm’’
and ‘‘OTP Holder’’ instead of ‘‘ATP
Holder’’ would remove impediments to,
and perfect the mechanisms of, a free
and open market and a national market
system and, in general, protect investors
and the public interest because the
proposed change would reflect the
Exchange’s membership and
terminology used in the Exchange’s
rulebook, thereby reducing any
potential ambiguity and providing
clarify to the Exchange’s rules. The
proposed use of the terms ‘‘OTP Firm’’
and ‘‘OTP Holder’’ would be consistent
with the NYSE American term ‘‘ATP
Holder.’’
The Exchange believes that deleting
the Exchange’s current options
communications with the public as
obsolete would remove impediments to
and perfect the mechanism of a free and
open market and a national market
system and, in general, protect investors
and the public interest because it would
eliminate rules that are now obsolete or
that do not have any substantive
content. Eliminating obsolete rules
would reduce potential confusion and
add transparency and clarity to the
Exchange’s rules, thereby ensuring that
members, regulators, and the public can
more easily navigate and understand the
Exchange’s rulebook.
Finally, the Exchange believes that
the proposed conforming changes to
Rule 10.9551(a) would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system by
ensuring that market participants can
more easily navigate, understand and
comply with its rules, thereby reducing
potential investor or market participant
confusion.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not designed to
address any competitive issues. Rather,
the proposed change is designed to
further harmonize the Exchange’s rule
regarding options communications with
the comparable rule of the Exchange’s
affiliate NYSE American and to make
conforming changes to the Exchange’s
disciplinary rules.
E:\FR\FM\26JYN1.SGM
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Federal Register / Vol. 84, No. 144 / Friday, July 26, 2019 / Notices
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 11 and Rule
19b–4(f)(6) thereunder.12 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.
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
jbell on DSK3GLQ082PROD with NOTICES
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:
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–NYSEARCA–2019–50. 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–NYSEARCA–2019–50 and
should be submitted on or before
August 16, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Jill M. Peterson,
Assistant Secretary.
Electronic Comments
[FR Doc. 2019–15874 Filed 7–25–19; 8:45 am]
• 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–
NYSEARCA–2019–50 on the subject
line.
BILLING CODE 8011–01–P
11 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
13 15 U.S.C. 78s(b)(2)(B).
12 17
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14 17
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PO 00000
CFR 200.30–3(a)(12).
Frm 00103
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36151
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86422]
Order Granting Application by: Nasdaq
BX, Inc., Nasdaq GEMX, LLC, Nasdaq
ISE, LLC, Nasdaq MRX, LLC, and
Nasdaq Phlx LLC for Exemption
Pursuant to Section 36(a) of the
Exchange Act From the Rule Filing
Requirements of Section 19(b) of the
Exchange Act With Respect to Certain
Rules Incorporated by Reference
July 22, 2019.
Nasdaq BX, Inc. (‘‘BX’’), Nasdaq
GEMX, LLC (‘‘GEMX’’), Nasdaq ISE,
LLC (‘‘ISE’’), Nasdaq MRX, LLC
(‘‘MRX’’), and Nasdaq Phlx LLC
(‘‘Phlx’’) (each the ‘‘Exchange’’ and
collectively, the ‘‘Exchanges’’) have
filed with the Securities and Exchange
Commission (‘‘Commission’’) an
application for an exemption under
Section 36(a)(1) of the Securities
Exchange Act of 1934 (‘‘Exchange
Act’’) 1 from the rule filing requirements
of Section 19(b) of the Exchange Act 2
with respect to certain rules of the
Nasdaq Stock Market, LLC (‘‘Nasdaq’’) 3
that the Exchanges seek to incorporate
by reference.4 Section 36 of the
Exchange Act authorizes the
Commission to conditionally or
unconditionally exempt any person,
security, or transaction, or any class
thereof, from any provision of the
Exchange Act or rule thereunder, if
necessary or appropriate in the public
interest and consistent with the
protection of investors.
The Exchanges each filed a proposed
rule change under Section 19(b) of the
Exchange Act to delete their existing
registration, qualification, and
continuing education rules 5 and
incorporate by reference Nasdaq’s
General 4 rules (‘‘Nasdaq Registration
and Continuing Education Rules’’), as
such rules may be in effect from time to
time. The proposed rule changes would
1 15
U.S.C. 78mm(a)(1).
U.S.C. 78s(b).
3 Nasdaq is an affiliate of the Exchanges.
4 See Letter from Angela Dunn, Senior Associate
General Counsel, Nasdaq Inc., to Vanessa
Countryman, Acting Secretary, Commission, dated
April 30, 2019 (‘‘Exemptive Request’’).
5 See Securities Exchange Act Release Nos. 85726
(April 26, 2019) (SR–BX–2019–010), 85737 (April
26, 2019) (SR–GEMX–2019–05), 85728 (April 26,
2019) (SR–ISE–2019–12), 85730 (April 26, 2019)
(SR–MRX–2019–09), and 85761 (May 2, 2019) (SR–
Phlx–2019–18). Although the proposed rule
changes were filed pursuant to Section
19(b)(3)(A)(iii) of the Exchange Act, and thereby
became effective upon filing with the Commission,
the Exchanges stipulated in their proposals that the
incorporation by reference would not be operative
until such time as the Commission grants this
exemptive request.
2 15
E:\FR\FM\26JYN1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 144 (Friday, July 26, 2019)]
[Notices]
[Pages 36149-36151]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15874]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86423; File No. SR-NYSEARCA-2019-50]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Adopt a New Rule
9.21-O, Delete Current Rules 9.21-O through 9.25-O, and Amend Rule
10.9551
July 22, 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 July 9, 2019, NYSE Arca, Inc. (``NYSE Arca'' 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.
---------------------------------------------------------------------------
\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 (1) adopt a new Rule 9.21-O
(Communications with the Public) based on NYSE American Rule 991, (2)
delete current Rules 9.21-O through 9.25-O, and (3) amend Rule 10.9551
to add references to proposed Rule 9.21-O. 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.
[[Page 36150]]
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 (1) adopt a new Rule 9.21-O
(Communications with the Public) based on NYSE American Rule 991
(Options Communications), (2) delete Rules 9.21-O through 9.25-O, and
(3) amend Rule 10.9551 to add references to proposed Rule 9.21-O.
Background and Proposed Rule Filing
The Exchange recently adopted a new set of rules governing
investigations, discipline of ETP Holders, OTP Holders, OTP Firms, and
covered persons, sanctions, cease and desist authority, and other
procedural rules modeled on the rules of the Exchange's affiliates, New
York Stock Exchange LLC (``NYSE'') and NYSE American LLC (``NYSE
American''), as well as those of the Financial Industry Regulatory
Authority, Inc. (``FINRA'').\4\ The new disciplinary rules became
effective on May 27, 2019.\5\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 34-85639 (April 12,
2019), 84 FR 16346 (April 18, 2019) (SR-NYSEARCA-2019-15) (Notice)
(``Disciplinary Rules Adoption'').
\5\ See NYSE Arca Options Regulatory Bulletin 19-02 (April 26,
2019), available at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/rule-interpretations/2019/Regulatory%20Bulletin%20re%20Arca%20Disciplinary%20Rules.%20revised%2004.25.19%20V2.pdf.
---------------------------------------------------------------------------
In that filing, the Exchange adopted Rule 10.9551 (Failure to
Comply with Public Communication Standards), which permits the
Exchange's regulatory staff to issue a written notice requiring an ETP
Holder, OTP Holder or OTP Firm to file communications with FINRA's
Advertising Regulation Department at least 10 days prior to use if the
staff determined that the ETP Holder had departed from the standards of
Rule 9.21-E (Communications with the Public) and ``any applicable
options rule.'' \6\ As the filing noted, the Exchange did not have a
rule comparable to Rule 9.21-E for the options market and undertook to
submit a rule filing to adopt a new Rule 9.21-O based on NYSE American
Rule 991 and to amend Rule 10.9551.\7\
---------------------------------------------------------------------------
\6\ See Disciplinary Rules Adoption, 84 FR at 16370.
\7\ See id., at n. 62.
---------------------------------------------------------------------------
The Exchange accordingly proposes to adopt a new Rule 9.21-O titled
``Communications with the Public.'' Except for references to OTP Firm
and OTP Holder, proposed Rule 9.21-O is substantially the same as NYSE
American Rule 991, which was in turn based on FINRA Rule 2220.\8\ The
Exchange proposes to delete its current Rules 9.21-O through 9.25-O
governing communications with the public as obsolete.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 61499 (February 4,
2010), 75 FR 6738 (February 10, 2010) (SR-NYSEAmex-2010-04);
Securities Exchange Act Release No. 82402 (December 26, 2017), 83 FR
179 (January 2, 2018) (SR-NYSEAmex-2017-39).
---------------------------------------------------------------------------
The Exchange proposes non-substantive conforming changes in Rule
10.9551(a) and (d) to replace the phrase ``and any applicable options
rule'' following ``Pursuant to Rule 9.21-E(c)(5)(B)'' with ``Rule 9.21-
O(c)(2).''
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\9\ in general, and furthers the objectives of Section 6(b)(5) of
the Act,\10\ in particular, in that 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, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The proposed changes will provide greater harmonization among SROs
resulting in less burdensome and more efficient regulatory compliance
for common members of the Exchange, the Exchange's affiliates, and
FINRA. As previously noted, the proposed rule text is substantially the
same as NYSE American Rule 991, which was in turn modeled on FINRA
rules. As such, the proposed rule change would foster cooperation and
coordination with persons engaged in facilitating transactions in
securities and would remove impediments to and perfect the mechanism of
a free and open market and a national market system. The Exchange
further believes that adopting NYSE American's rule governing options
communications with the public will provide its permit holders with a
clearer, consistent, and more comprehensive regulatory scheme by
harmonizing the Exchange's rule concerning options communications with
NYSE American's rule and the FINRA rule in the same subject matter. The
proposed rule change would continue to ensure a uniform regulatory
approach and would reduce any potential risks or inefficiencies in
rules. The Exchange further notes that the changes proposed herein are
neither novel nor controversial and are modeled on existing FINRA
rules.
The Exchange also believes that the proposal to use the terms ``OTP
Firm'' and ``OTP Holder'' instead of ``ATP Holder'' would remove
impediments to, and perfect the mechanisms of, a free and open market
and a national market system and, in general, protect investors and the
public interest because the proposed change would reflect the
Exchange's membership and terminology used in the Exchange's rulebook,
thereby reducing any potential ambiguity and providing clarify to the
Exchange's rules. The proposed use of the terms ``OTP Firm'' and ``OTP
Holder'' would be consistent with the NYSE American term ``ATP
Holder.''
The Exchange believes that deleting the Exchange's current options
communications with the public as obsolete would remove impediments to
and perfect the mechanism of a free and open market and a national
market system and, in general, protect investors and the public
interest because it would eliminate rules that are now obsolete or that
do not have any substantive content. Eliminating obsolete rules would
reduce potential confusion and add transparency and clarity to the
Exchange's rules, thereby ensuring that members, regulators, and the
public can more easily navigate and understand the Exchange's rulebook.
Finally, the Exchange believes that the proposed conforming changes
to Rule 10.9551(a) would remove impediments to and perfect the
mechanism of a free and open market and a national market system by
ensuring that market participants can more easily navigate, understand
and comply with its rules, thereby reducing potential investor or
market participant confusion.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not designed to address any competitive issues. Rather, the proposed
change is designed to further harmonize the Exchange's rule regarding
options communications with the comparable rule of the Exchange's
affiliate NYSE American and to make conforming changes to the
Exchange's disciplinary rules.
[[Page 36151]]
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 \11\ and Rule 19b-4(f)(6) thereunder.\12\
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.
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6).
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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) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\13\ 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 [email protected]. Please include
File Number SR-NYSEARCA-2019-50 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-NYSEARCA-2019-50. 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-NYSEARCA-2019-50 and
should be submitted on or before August 16, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-15874 Filed 7-25-19; 8:45 am]
BILLING CODE 8011-01-P
