Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change To Add Certain Rules to the List of Minor Rule Violations in Rule 9217; Delete Obsolete Rules and Increase the Maximum Fine for Minor Rule Violations, 43836-43839 [2019-18057]

Download as PDF 43836 Federal Register / Vol. 84, No. 163 / Thursday, August 22, 2019 / Notices ensuring broker-dealers producing such reports need only conduct one legal analysis to comply with both the SEC and FINRA rules.41 According to the commenter, the streamlined amendments would help facilitate broker-dealers’ use of the safe harbor which the commenter believes would generate useful fund information for investors.42 IV. Discussion and Commission Findings After careful review of the proposed rule change and the comment letter, the Commission finds that the proposal is consistent with the requirements of the Exchange Act and the rules and regulations thereunder that are applicable to a national securities association.43 Specifically, the Commission finds that the proposed rule change is consistent with Section 15A(b)(6) of the Exchange Act,44 which requires, among other things, that FINRA rules be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. Protection of Investors and the Public Interest The Commission considers FINRA’s proposed changes to the FINRA Rule 2241 quiet periods applicable to publication of covered investment fund research reports to be consistent with the language and purposes of the FAIR Act. In addition, the Commission believes that FINRA’s additional proposed change to eliminate quiet periods applicable to public appearances involving an offering of covered investment fund securities provides consistency and clarity with respects to members that produce research reports for covered investment funds. The Commission believes that the proposed rule change would clarify the applicability of FINRA Rule 2241 quiet periods to covered investment funds that are subject of a research report, as well as further the purposes of the FAIR Act which directed the SEC to extend the current safe harbor available under Securities Act Rule 139 to a covered investment fund research report. The Commission believes the extension of the safe harbor in Rule 139b should improve investors’ access to potentially useful and timely information about such covered investment funds which furthers the public interest. The consistency of standards in Rule 139b and FINRA Rule 2241 provides clarity to broker-dealers, funds and their affiliates which in turn reduces the cost of compliance. The Commission also believes that the proposed filing exclusion under FINRA Rule 2210 for covered investment fund research reports that qualify for the Rule 139b safe harbor is consistent with the FAIR Act’s intent to increase the volume and publication of research reports on covered investment funds subject to appropriate conditions. The Commission believes that this proposed rule change will improve efficiency and reduce regulatory burden without diminishing investor protection. Specifically, the consistency of standards in Rule 139b and FINRA Rule 2210 provides clarity to broker-dealers, funds and their affiliates as to which research reports constitute ‘‘covered investment fund research reports,’’ which in turn reduces the cost of compliance. In addition, FINRA retains other methods to review covered investment fund research reports, such as through examinations, targeted sweeps, or spot checks. Thus, the Commission considers proposed FINRA Rule 2210 and its consistency with the Rule 139b safe harbor as a clear and appropriate approach to furthering the purposes of the FAIR Act and is consistent with protecting investors and the public interest. Taking into consideration FINRA’s views and the commenter’s support, the Commission believes that the proposal is consistent with the Exchange Act. In particular, the Commission believes that the proposed rule change is appropriate and designed to protect investors and the public interest, consistent with Section 15(A)(b)(6) of the Exchange Act. For these reasons, the Commission finds that the proposed rule change is consistent with the Exchange Act and the rules and regulations thereunder. V. Conclusion It is therefore ordered pursuant to Section 19(b)(2) of the Exchange Act 45 that the proposal (SR–FINRA–2018– 019), be and hereby is approved. 41 Id. 42 Id. 43 In approving this rule change, the Commission has considered the rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 44 15 U.S.C. 78o–3(b)(6). VerDate Sep<11>2014 16:37 Aug 21, 2019 Jkt 247001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.46 Jill M. Peterson, Assistant Secretary. [FR Doc. 2019–18076 Filed 8–21–19; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–86696; File No. SR–NYSE– 2019–44] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change To Add Certain Rules to the List of Minor Rule Violations in Rule 9217; Delete Obsolete Rules and Increase the Maximum Fine for Minor Rule Violations August 16, 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 August 8, 2019, New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and III 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 (1) add certain rules to the list of minor rule violations in Rule 9217; (2) delete obsolete rules from Rule 9217; and (3) increase the maximum fine for minor rule violations to $5,000 in order to more closely align the Exchange’s minor rule plan with that of its affiliates. 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 46 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 45 15 PO 00000 U.S.C. 78s(b)(2). Frm 00050 Fmt 4703 Sfmt 4703 E:\FR\FM\22AUN1.SGM 22AUN1 Federal Register / Vol. 84, No. 163 / Thursday, August 22, 2019 / Notices 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 (1) add certain rules to the list of minor rule violations in Rule 9217; (2) delete obsolete rules from Rule 9217; and (3) increase the maximum fine for minor rule violations to $5,000 in order to more closely align the Exchange’s minor rule plan with that of its affiliates. Rule 9217 sets forth the list of rules under which a member organization or covered person may be subject to a fine under a minor rule violation plan as described in proposed Rule 9216(b). The Exchange proposes the following amendments to Rules 9217 and 9216(b). Proposed Rule Change The Exchange proposes to add the following new introductory paragraph to Rule 9217: Nothing in this Rule shall require the Exchange to impose a fine for a violation of any rule under this Minor Rule Plan. If the Exchange determines that any violation is not minor in nature, the Exchange may, at its discretion, proceed under the Rule 9000 Series rather than under this Rule. The language is based on NYSE Arca Rule 10.9217(d). Proposed Additions to Rule 9217 The Exchange proposes to add the following rules to the list of rules in Rule 9217 eligible for disposition pursuant to a fine under Rule 9216(b): • Rule 7.30 (Authorized Traders) • Rule 76 (‘‘Crossing’’ Orders) • Rule 103(a)(i) (Registration and Capital Requirements of DMM Units) • Rule 1210 (Registration Requirements) • Rule 3110(a) and (b)(1) (Supervision) The Exchange also proposes that all of the registration and other requirements set forth in Rule 345 be eligible for a minor rule fine. Rule 7.30 establishes requirements for member organizations relating to Authorized Traders. The rule is based on NYSE Arca, Inc.’s (‘‘NYSE Arca’’) Rule 7.30–E (Authorized Traders), VerDate Sep<11>2014 16:37 Aug 21, 2019 Jkt 247001 which is eligible for NYSE Arca’s Minor Rule Plan.3 Rule 76 is substantially similar to NYSE American LLC (‘‘NYSE American’’) Rule 934NY(a)(1) (Crossing) and NYSE Arca Rule 6.47–O(a)(1) (‘‘Crossing’’ Orders—OX), which govern manual crosses on those respective exchanges’ options trading Floors. NYSE American Rule 934NY(a)(1) is eligible for NYSE American’s Minor Rule Plan, and NYSE Arca Rule 6.47– O(a)(1) is eligible for NYSE Arca’s Minor Rule Plan.4 Rule 103(a)(1) provides that no member organization shall act as a Designated Market Maker (‘‘DMM’’) unit in any security unless such member organization is registered as a DMM unit in such security with the Exchange and unless the Exchange has approved of the member organization acting as a DMM unit and not withdrawn such approval. The rule is substantially similar to NYSE Arca Rule 7.20–E(a) (Registration of Market Makers) and NYSE National Rule 7.20 (Registration of Market Makers), which similarly require that market makers on those exchanges be registered in a security and that the registration has not been suspended or cancelled. Both NYSE Arca Rule 7.20– E(a) and NYSE National Rule 7.20 are eligible for minor rule fines.5 Similarly, Rule 1210, which was adopted in October 2018,6 sets forth the requirements for persons engaged in the investment banking or securities business of a member organization to be registered with the Exchange as a representative or principal in each category of registration appropriate to his or her functions and responsibilities as specified in Rule 1220. The Exchange proposes to add Rule 1210 to the list of minor rules in Rule 9217. The Exchange believes that having the ability to issue a minor rule fine for failing to comply with the registration requirements of Rule 1210 would be consistent with and complement the Exchange’s current 3 See Securities Exchange Act Release No. 81225 (July 27, 2017), 82 FR 36033, 36035 (August 2, 2017) (SR–NYSE–2017–35). See also NYSE Arca Rule 10.12(i)(4) (NYSE Arca Rule 7.30–E); NYSE Arca Rule 10.9217(f)(4). NYSE Arca Rule 10.12 is NYSE Arca’s legacy minor rule plan and applies only to matters for which a written statement was served under Rule 10.12 prior to May 27, 2019; thereafter, Rules 10.9216(b) and 10.9217 apply. See generally NYSE Arca Rules 10.0 (preamble) and 10.9001. 4 See NYSE American Rule 9217 (Rule 934NY); NYSE Arca Rules 10.12(h)(3) and 10.9217(e)(3). See note 4, supra. 5 See NYSE Arca Rules 10.12(i)(5) and 10.9217(f)(5); NYSE National Rule 10.9217(d). 6 See Securities Exchange Act Release No. 84336 (October 2, 2018), 83 FR 50727 (October 9, 2018) (SR–NYSE–2018–44). PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 43837 ability to issue minor rule fines for other registration violations (e.g., Rule 345). Rule 3110 is the Exchange’s supervision rule. The Exchange proposes to add subsections (a) and (b)(1) of Rule 3110, governing failure of a member organization to establish and maintain a supervisory system and failure to establish, maintain, and enforce written supervisory procedures, respectively, to Rule 9217. Failure to supervise individuals and accounts is currently eligible for minor rule fines in the rules of the Exchange’s affiliate NYSE Arca.7 Finally, Rule 345 sets forth certain employee registration, approval and other exchange requirements, including the requirements pertaining to the registration of a securities lending representative, Securities Trader or direct supervisor thereof. Currently, the only violation of Rule 345 that is eligible for a minor rule fine is failure of a member organization to have individuals responsible and qualified for the position of Securities Lending Supervisor. The Exchange proposes that all of registration and other requirements set forth in Rule 345 be eligible for a minor rule fine. The proposed change would be consistent with the practice on the Exchange’s affiliates whose comparable rule is eligible for a minor rule fine.8 Proposed Deletions From Rule 9217 The Exchange proposes to delete the following rules from Rule 9217 as obsolete: • Rule 706, which was deleted in 2014.9 • Rule 312(h), which is marked ‘‘Reserved’’ in the Exchange’s rules and was deleted in 2010.10 • Rule 382(a). Rule 382 is also marked ‘‘Reserved’’ and was deleted in 2011.11 7 See NYSE Arca Rules 11.18 (Supervision), 10.12(j)(8) and 10.9217(g)(8). 8 See, e.g., NYSE Arca Rules 2.24.03 (Registration—Employees of ETP Holders), 10.12(j)(11) and 10.9217(g)(11). See also NYSE National Rules 2.2 (Obligations of ETP Holders and the Exchange) and 10.9217(e). 9 See Securities Exchange Act Release No. 72916 (August 26, 2014), 79 FR 52094 (September 2, 2014) (SR–NYSE–2014–44). 10 See Securities Exchange Act Release No. 61557 (February 22, 2010), 75 FR 9472 (March 2, 2010) (SR–NYSE–2010–10). NYSE Rule 4110(c)(2), based on the comparable FINRA rule, incorporates Rule 312(h) in part. The Exchange is not proposing to add Rule 4110(c)(2) to Rule 9217. 11 See Securities Exchange Act Release No. 64888 (July 14, 2011), 76 FR 43368 (July 20, 2011) (SR– NYSE–2011–33). NYSE Rule 4311, based on the comparable FINRA rule, was based in part on NYSE Rule 382. The Exchange is not proposing to add Rule 4311 to Rule 9217. E:\FR\FM\22AUN1.SGM 22AUN1 43838 Federal Register / Vol. 84, No. 163 / Thursday, August 22, 2019 / Notices • Rule 791(c), which was also deleted in 2014.12 • Rules 352(b) & (c). Rule 352 is marked ‘‘Reserved’’ and was deleted in 2009.13 • Rule 392, which is also marked ‘‘Reserved’’ and was deleted in 2009.14 • Rule 410A, which was deleted in 2013.15 • Rule 445(4), which is marked ‘‘Reserved’’ and was deleted in 2009.16 Eligible Fine Amounts The maximum fine for minor rule violations under Rule 9216(b) is currently $2,500. The maximum fine under the Exchange’s legacy minor rule plan set forth in Rule 476A previously was $5,000. In adopting its current disciplinary rules in 2013, the Exchange believed it appropriate to lower the maximum fine amount to achieve harmony with the rules of the Financial Industry Regulatory Authority (‘‘FINRA’’).17 The Exchange’s affiliates NYSE American, NYSE National and NYSE Arca, however, have since harmonized their disciplinary rules with the Exchange and adopted or retained a $5,000 maximum fine for minor rule violations.18 The Exchange accordingly proposes to adopt the same maximum fine amount in order to harmonize the maximum fine level with its affiliated exchanges. The Exchange also proposes to adopt the same 24month rolling period to calculate second 12 See Release No. 72916, 79 FR at 52094. Securities Exchange Act Release No. 61158 (December 11, 2009), 75 FR 67942 (December 21, 2009) (SR–NYSE–2009–123). Rule 352 was replaced by Rule 2150. Violations of Rule 2150(b) & (c) are currently eligible for a minor rule fine under Rule 9217. 14 See Securities Exchange Act Release No. 59965 (May 21, 2009), 74 FR 25783 (May 29, 2009) (SR– NYSE–2009–25). 15 See Securities Exchange Act Release No. 68678 (January 16, 2013), 78 FR 5213 (January 24, 2013) (SR–NYSE–2013–02) (Notice) (‘‘Release No. 68678’’); see also Securities Exchange Act Release No. 69045 (March 5, 2013), 78 FR 15394 (March 11, 2013) (SR–NYSE–2013–02) (Approval Order). Rule 410A was replaced by Rule 8211. Both rules were initially retained in Rule 9217, but there is no longer any reason to retain Rule 410A in Rule 9217. 16 See Securities Exchange Act Release No. 61273 (December 31, 2009), 75 FR 1091 (January 1, 2010) (SR–NYSE–2009–134). The Exchange proposes to correct a typographical error in Rule 9217. Rule 9217 refers to Rule 3010(a). The correct reference should be to Rule 3110(a), the Exchange’s supervision rule, which was added to Rule 9217 in 2014. See Securities Exchange Act Release No. 73554 (November 6, 2014), 79 FR 67508 (November 13, 2014) (SR–NYSE–2014–56). 17 See Release No. 68678, 78 FR at 5226. 18 For instance, the maximum fine for minor rule violations under NYSE Arca’s legacy Minor Rule Plan set forth in Rule 10.12 is $5,000. NYSE Arca retained the $5,000 maximum when it adopted its new disciplinary rules. See NYSE Arca Rule 10.9217(a). See also NYSE American Rule 9217 & NYSE National Rule 10.9217. 13 See VerDate Sep<11>2014 16:37 Aug 21, 2019 Jkt 247001 and subsequent fines as that used by its affiliated exchanges. To effectuate this change, the Exchange proposes to add the following fine chart contained in Rule 476A, the Exchange’s legacy rule governing the imposition of minor rule fines, to Rule 9217: 19 Fine amount First Time Fined ........ Second Time Fined ** Subsequent Fines ** .. Fine amount First Time Fined ........ Subsequent Fines ** .. Individual $1,000 2,500 5,000 Member organization 2,500 5,000 ** Within a ‘‘rolling’’ 24-month period. As noted, rather than the 12-month rolling period in Rule 476A, the Exchange proposes a 24-month ‘‘rolling’’ period from the date of the violation in order to harmonize with its affiliates.20 In order to add clarity to the Exchange’s rules, the Exchange also proposes to add a paragraph immediately before the proposed chart based on NYSE Arca Rule 10.9217(h) that sets forth how the beginning and end of the 24-month rolling period is to be determined. Except for references that reflect the Exchange’s membership and use of the phrase ‘‘minor rule violation plan letter’’ rather than ‘‘Notice of Minor Rule Plan Fine,’’ the paragraph is substantially the same as NYSE Arca Rule 10.9217(h).21 In order to further harmonize the Exchange’s rules with those if its affiliates, and because a fine of $5,000 would exceed the maximum amount in Securities Exchange Act Rule 19d– 1(c)(2) for a minor rule plan,22 the Exchange proposes to change the titles of Rules 9216 and 9217. Specifically, the phrase ‘‘Plan Pursuant to SEA Rule 19d–1(c)(2)’’ would be replaced with ‘‘Procedure for Imposition of Fines for Minor Violation(s) of Rules’’ in the title 19 When the Exchange adopted Rule 9217 as part of its adoption of FINRA’s disciplinary rules, the Exchange retained the list of rules set forth in Rule 476A. See Release No. 69045, 78 FR at 15396. The Exchange did not retain the chart in Rule 476A because, as noted above, the maximum fine under Rule 476A previously was $5,000. 20 See NYSE Arca Rule 10.9217 (violations applied in a rolling 24-month period); NYSE American Rule 9217 (same). 21 Pursuant to the new paragraph the Exchange proposes to add to Rule 9217 based on NYSE Arca Rule 10.9217(d) discussed above, the Exchange is not required to impose a fine for a violation under its Minor Rule Plan. The Exchange may, at its discretion, bring formal disciplinary action against a member or associated person that has violated its rules. 22 17 CFR 240.19d–1(c)(2). PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 of Rule 9216. The same phrase in Rule 9217 would be replaced with ‘‘Rule 9216(b).’’ The titles of both rules would thereby be the same as the titles of NYSE Arca Rules 10.9216 and 10.9217 and NYSE National Rules 10.9216 and 10.9217, respectively. The Exchange proposes to make similar conforming changed to Rule 9216(b)(1) by removing references to SEA Rule 19d–1(c)(2) and the maximum fine level of $2,500, and by adding language specifying that the Exchange may impose a fine in accordance with the fine amounts and fine levels set forth in Rule 9217. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act,23 in general, and furthers the objectives of Section 6(b)(5),24 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. Minor rule fines provide a meaningful sanction for minor or technical violations of rules. The Exchange believes that the proposed rule change will strengthen the Exchange’s ability to carry out its oversight and enforcement responsibilities in cases where full disciplinary proceedings are unwarranted in view of the minor nature of the particular violation. Specifically, the proposed rule change is designed to prevent fraudulent and manipulative acts and practices because it will provide the Exchange the ability to issue a minor rule fine for violations of its rules governing authorized traders, crossing orders, DMM registration and capital requirements, and general registration and supervision requirements in situations where a more formal disciplinary action may not be warranted or appropriate. In addition, the Exchange believes that adding rules based on the rules of its affiliate to the Exchange’s minor rule plan and the associated fine levels would promote fairness and consistency in the marketplace by permitting the Exchange to issue a minor rule fine for violations of substantially similar rules that are eligible for minor rule treatment on the Exchange’s affiliate, thereby harmonizing minor rule plan fines 23 15 24 15 E:\FR\FM\22AUN1.SGM U.S.C. 78f(b). U.S.C. 78f(b)(5). 22AUN1 Federal Register / Vol. 84, No. 163 / Thursday, August 22, 2019 / Notices across affiliated exchanges for the same conduct. Deletion of obsolete rules from the minor rule plan would thus remove impediments to and perfect the mechanism of a free and open market by ensuring that persons subject to the Exchange’s jurisdiction, regulators, and the investing public can more easily navigate and understand the Exchange’s rulebook. Finally, in connection with the fine levels specified in the proposed rule change, adding clarifying language describing how the ‘‘rolling period’’ is determined would further the goal of transparency and add clarity to the Exchange’s rules. The Exchange believes that adding such clarifying language would also be consistent with the public interest and the protection of investors because investors will not be harmed and in fact would benefit from increased transparency, thereby reducing potential confusion. The Exchange further believes that the proposed amendments to Rule 9217 are consistent with Section 6(b)(6) of the Act,25 which provides that members and persons associated with members shall be appropriately disciplined for violation of the provisions of the rules of the exchange, by expulsion, suspension, limitation of activities, functions, and operations, fine, censure, being suspended or barred from being associated with a member, or any other fitting sanction. As noted, the proposed rule change would provide the Exchange ability to sanction minor or technical violations pursuant to the Exchange’s rules and would increase the amounts of fines in order for the Exchange to better deter violative activity. 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 proposed change is not designed to address any competitive issue but rather to update the Exchange’s rules to strengthen the Exchange’s ability to carry out its oversight and enforcement functions and deter potential violative conduct. The Exchange also believes that the proposed change to remove obsolete rules from the list of rules eligible for minor rule fines would not be inconsistent with the public interest and the protection of investors because investors will not be harmed and in fact would benefit from increased clarity 25 15 U.S.C. 78f(b)(6). VerDate Sep<11>2014 16:37 Aug 21, 2019 Jkt 247001 and transparency, thereby reducing potential confusion. 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 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: (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 rule-comments@ sec.gov. Please include File Number SR– NYSE–2019–044 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–2019–044. 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 PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 43839 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–2019–044, and should be submitted on or before September 12, 2019. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.26 Jill M. Peterson, Assistant Secretary. [FR Doc. 2019–18057 Filed 8–21–19; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–86692; File No. SR–DTC– 2019–006] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Distributions Service Guide August 16, 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 August 13, 2019, The Depository Trust Company (‘‘DTC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared by the clearing agency. DTC filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(4) thereunder.4 The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 26 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(4). 1 15 E:\FR\FM\22AUN1.SGM 22AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 84, Number 163 (Thursday, August 22, 2019)]
[Notices]
[Pages 43836-43839]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18057]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86696; File No. SR-NYSE-2019-44]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing of Proposed Rule Change To Add Certain Rules to the 
List of Minor Rule Violations in Rule 9217; Delete Obsolete Rules and 
Increase the Maximum Fine for Minor Rule Violations

August 16, 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 August 8, 2019, New York Stock Exchange LLC (``NYSE'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to (1) add certain rules to the list of minor 
rule violations in Rule 9217; (2) delete obsolete rules from Rule 9217; 
and (3) increase the maximum fine for minor rule violations to $5,000 
in order to more closely align the Exchange's minor rule plan with that 
of its affiliates. 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

[[Page 43837]]

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 (1) add certain rules to the list of minor 
rule violations in Rule 9217; (2) delete obsolete rules from Rule 9217; 
and (3) increase the maximum fine for minor rule violations to $5,000 
in order to more closely align the Exchange's minor rule plan with that 
of its affiliates.
    Rule 9217 sets forth the list of rules under which a member 
organization or covered person may be subject to a fine under a minor 
rule violation plan as described in proposed Rule 9216(b). The Exchange 
proposes the following amendments to Rules 9217 and 9216(b).
Proposed Rule Change
    The Exchange proposes to add the following new introductory 
paragraph to Rule 9217:

    Nothing in this Rule shall require the Exchange to impose a fine 
for a violation of any rule under this Minor Rule Plan. If the Exchange 
determines that any violation is not minor in nature, the Exchange may, 
at its discretion, proceed under the Rule 9000 Series rather than under 
this Rule.

    The language is based on NYSE Arca Rule 10.9217(d).
Proposed Additions to Rule 9217
    The Exchange proposes to add the following rules to the list of 
rules in Rule 9217 eligible for disposition pursuant to a fine under 
Rule 9216(b):

 Rule 7.30 (Authorized Traders)
 Rule 76 (``Crossing'' Orders)
 Rule 103(a)(i) (Registration and Capital Requirements of DMM 
Units)
 Rule 1210 (Registration Requirements)
 Rule 3110(a) and (b)(1) (Supervision)

    The Exchange also proposes that all of the registration and other 
requirements set forth in Rule 345 be eligible for a minor rule fine.
    Rule 7.30 establishes requirements for member organizations 
relating to Authorized Traders. The rule is based on NYSE Arca, Inc.'s 
(``NYSE Arca'') Rule 7.30-E (Authorized Traders), which is eligible for 
NYSE Arca's Minor Rule Plan.\3\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 81225 (July 27, 
2017), 82 FR 36033, 36035 (August 2, 2017) (SR-NYSE-2017-35). See 
also NYSE Arca Rule 10.12(i)(4) (NYSE Arca Rule 7.30-E); NYSE Arca 
Rule 10.9217(f)(4). NYSE Arca Rule 10.12 is NYSE Arca's legacy minor 
rule plan and applies only to matters for which a written statement 
was served under Rule 10.12 prior to May 27, 2019; thereafter, Rules 
10.9216(b) and 10.9217 apply. See generally NYSE Arca Rules 10.0 
(preamble) and 10.9001.
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    Rule 76 is substantially similar to NYSE American LLC (``NYSE 
American'') Rule 934NY(a)(1) (Crossing) and NYSE Arca Rule 6.47-O(a)(1) 
(``Crossing'' Orders--OX), which govern manual crosses on those 
respective exchanges' options trading Floors. NYSE American Rule 
934NY(a)(1) is eligible for NYSE American's Minor Rule Plan, and NYSE 
Arca Rule 6.47-O(a)(1) is eligible for NYSE Arca's Minor Rule Plan.\4\
---------------------------------------------------------------------------

    \4\ See NYSE American Rule 9217 (Rule 934NY); NYSE Arca Rules 
10.12(h)(3) and 10.9217(e)(3). See note 4, supra.
---------------------------------------------------------------------------

    Rule 103(a)(1) provides that no member organization shall act as a 
Designated Market Maker (``DMM'') unit in any security unless such 
member organization is registered as a DMM unit in such security with 
the Exchange and unless the Exchange has approved of the member 
organization acting as a DMM unit and not withdrawn such approval. The 
rule is substantially similar to NYSE Arca Rule 7.20-E(a) (Registration 
of Market Makers) and NYSE National Rule 7.20 (Registration of Market 
Makers), which similarly require that market makers on those exchanges 
be registered in a security and that the registration has not been 
suspended or cancelled. Both NYSE Arca Rule 7.20-E(a) and NYSE National 
Rule 7.20 are eligible for minor rule fines.\5\
---------------------------------------------------------------------------

    \5\ See NYSE Arca Rules 10.12(i)(5) and 10.9217(f)(5); NYSE 
National Rule 10.9217(d).
---------------------------------------------------------------------------

    Similarly, Rule 1210, which was adopted in October 2018,\6\ sets 
forth the requirements for persons engaged in the investment banking or 
securities business of a member organization to be registered with the 
Exchange as a representative or principal in each category of 
registration appropriate to his or her functions and responsibilities 
as specified in Rule 1220. The Exchange proposes to add Rule 1210 to 
the list of minor rules in Rule 9217. The Exchange believes that having 
the ability to issue a minor rule fine for failing to comply with the 
registration requirements of Rule 1210 would be consistent with and 
complement the Exchange's current ability to issue minor rule fines for 
other registration violations (e.g., Rule 345).
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 84336 (October 2, 
2018), 83 FR 50727 (October 9, 2018) (SR-NYSE-2018-44).
---------------------------------------------------------------------------

    Rule 3110 is the Exchange's supervision rule. The Exchange proposes 
to add subsections (a) and (b)(1) of Rule 3110, governing failure of a 
member organization to establish and maintain a supervisory system and 
failure to establish, maintain, and enforce written supervisory 
procedures, respectively, to Rule 9217. Failure to supervise 
individuals and accounts is currently eligible for minor rule fines in 
the rules of the Exchange's affiliate NYSE Arca.\7\
---------------------------------------------------------------------------

    \7\ See NYSE Arca Rules 11.18 (Supervision), 10.12(j)(8) and 
10.9217(g)(8).
---------------------------------------------------------------------------

    Finally, Rule 345 sets forth certain employee registration, 
approval and other exchange requirements, including the requirements 
pertaining to the registration of a securities lending representative, 
Securities Trader or direct supervisor thereof. Currently, the only 
violation of Rule 345 that is eligible for a minor rule fine is failure 
of a member organization to have individuals responsible and qualified 
for the position of Securities Lending Supervisor. The Exchange 
proposes that all of registration and other requirements set forth in 
Rule 345 be eligible for a minor rule fine. The proposed change would 
be consistent with the practice on the Exchange's affiliates whose 
comparable rule is eligible for a minor rule fine.\8\
---------------------------------------------------------------------------

    \8\ See, e.g., NYSE Arca Rules 2.24.03 (Registration--Employees 
of ETP Holders), 10.12(j)(11) and 10.9217(g)(11). See also NYSE 
National Rules 2.2 (Obligations of ETP Holders and the Exchange) and 
10.9217(e).
---------------------------------------------------------------------------

Proposed Deletions From Rule 9217
    The Exchange proposes to delete the following rules from Rule 9217 
as obsolete:
     Rule 706, which was deleted in 2014.\9\
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 72916 (August 26, 
2014), 79 FR 52094 (September 2, 2014) (SR-NYSE-2014-44).
---------------------------------------------------------------------------

     Rule 312(h), which is marked ``Reserved'' in the 
Exchange's rules and was deleted in 2010.\10\
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release No. 61557 (February 22, 
2010), 75 FR 9472 (March 2, 2010) (SR-NYSE-2010-10). NYSE Rule 
4110(c)(2), based on the comparable FINRA rule, incorporates Rule 
312(h) in part. The Exchange is not proposing to add Rule 4110(c)(2) 
to Rule 9217.
---------------------------------------------------------------------------

     Rule 382(a). Rule 382 is also marked ``Reserved'' and was 
deleted in 2011.\11\
---------------------------------------------------------------------------

    \11\ See Securities Exchange Act Release No. 64888 (July 14, 
2011), 76 FR 43368 (July 20, 2011) (SR-NYSE-2011-33). NYSE Rule 
4311, based on the comparable FINRA rule, was based in part on NYSE 
Rule 382. The Exchange is not proposing to add Rule 4311 to Rule 
9217.

---------------------------------------------------------------------------

[[Page 43838]]

     Rule 791(c), which was also deleted in 2014.\12\
---------------------------------------------------------------------------

    \12\ See Release No. 72916, 79 FR at 52094.
---------------------------------------------------------------------------

     Rules 352(b) & (c). Rule 352 is marked ``Reserved'' and 
was deleted in 2009.\13\
---------------------------------------------------------------------------

    \13\ See Securities Exchange Act Release No. 61158 (December 11, 
2009), 75 FR 67942 (December 21, 2009) (SR-NYSE-2009-123). Rule 352 
was replaced by Rule 2150. Violations of Rule 2150(b) & (c) are 
currently eligible for a minor rule fine under Rule 9217.
---------------------------------------------------------------------------

     Rule 392, which is also marked ``Reserved'' and was 
deleted in 2009.\14\
---------------------------------------------------------------------------

    \14\ See Securities Exchange Act Release No. 59965 (May 21, 
2009), 74 FR 25783 (May 29, 2009) (SR-NYSE-2009-25).
---------------------------------------------------------------------------

     Rule 410A, which was deleted in 2013.\15\
---------------------------------------------------------------------------

    \15\ See Securities Exchange Act Release No. 68678 (January 16, 
2013), 78 FR 5213 (January 24, 2013) (SR-NYSE-2013-02) (Notice) 
(``Release No. 68678''); see also Securities Exchange Act Release 
No. 69045 (March 5, 2013), 78 FR 15394 (March 11, 2013) (SR-NYSE-
2013-02) (Approval Order). Rule 410A was replaced by Rule 8211. Both 
rules were initially retained in Rule 9217, but there is no longer 
any reason to retain Rule 410A in Rule 9217.
---------------------------------------------------------------------------

     Rule 445(4), which is marked ``Reserved'' and was deleted 
in 2009.\16\
---------------------------------------------------------------------------

    \16\ See Securities Exchange Act Release No. 61273 (December 31, 
2009), 75 FR 1091 (January 1, 2010) (SR-NYSE-2009-134).
     The Exchange proposes to correct a typographical error in Rule 
9217. Rule 9217 refers to Rule 3010(a). The correct reference should 
be to Rule 3110(a), the Exchange's supervision rule, which was added 
to Rule 9217 in 2014. See Securities Exchange Act Release No. 73554 
(November 6, 2014), 79 FR 67508 (November 13, 2014) (SR-NYSE-2014-
56).
---------------------------------------------------------------------------

Eligible Fine Amounts
    The maximum fine for minor rule violations under Rule 9216(b) is 
currently $2,500. The maximum fine under the Exchange's legacy minor 
rule plan set forth in Rule 476A previously was $5,000. In adopting its 
current disciplinary rules in 2013, the Exchange believed it 
appropriate to lower the maximum fine amount to achieve harmony with 
the rules of the Financial Industry Regulatory Authority 
(``FINRA'').\17\ The Exchange's affiliates NYSE American, NYSE National 
and NYSE Arca, however, have since harmonized their disciplinary rules 
with the Exchange and adopted or retained a $5,000 maximum fine for 
minor rule violations.\18\ The Exchange accordingly proposes to adopt 
the same maximum fine amount in order to harmonize the maximum fine 
level with its affiliated exchanges. The Exchange also proposes to 
adopt the same 24-month rolling period to calculate second and 
subsequent fines as that used by its affiliated exchanges.
---------------------------------------------------------------------------

    \17\ See Release No. 68678, 78 FR at 5226.
    \18\ For instance, the maximum fine for minor rule violations 
under NYSE Arca's legacy Minor Rule Plan set forth in Rule 10.12 is 
$5,000. NYSE Arca retained the $5,000 maximum when it adopted its 
new disciplinary rules. See NYSE Arca Rule 10.9217(a). See also NYSE 
American Rule 9217 & NYSE National Rule 10.9217.
---------------------------------------------------------------------------

    To effectuate this change, the Exchange proposes to add the 
following fine chart contained in Rule 476A, the Exchange's legacy rule 
governing the imposition of minor rule fines, to Rule 9217: \19\
---------------------------------------------------------------------------

    \19\ When the Exchange adopted Rule 9217 as part of its adoption 
of FINRA's disciplinary rules, the Exchange retained the list of 
rules set forth in Rule 476A. See Release No. 69045, 78 FR at 15396. 
The Exchange did not retain the chart in Rule 476A because, as noted 
above, the maximum fine under Rule 476A previously was $5,000.

------------------------------------------------------------------------
                Fine amount                          Individual
------------------------------------------------------------------------
First Time Fined..........................  $1,000
Second Time Fined **......................  2,500
Subsequent Fines **.......................  5,000
------------------------------------------------------------------------
                Fine amount                      Member organization
------------------------------------------------------------------------
First Time Fined..........................  2,500
Subsequent Fines **.......................  5,000
------------------------------------------------------------------------
** Within a ``rolling'' 24-month period.

    As noted, rather than the 12-month rolling period in Rule 476A, the 
Exchange proposes a 24-month ``rolling'' period from the date of the 
violation in order to harmonize with its affiliates.\20\
---------------------------------------------------------------------------

    \20\ See NYSE Arca Rule 10.9217 (violations applied in a rolling 
24-month period); NYSE American Rule 9217 (same).
---------------------------------------------------------------------------

    In order to add clarity to the Exchange's rules, the Exchange also 
proposes to add a paragraph immediately before the proposed chart based 
on NYSE Arca Rule 10.9217(h) that sets forth how the beginning and end 
of the 24-month rolling period is to be determined. Except for 
references that reflect the Exchange's membership and use of the phrase 
``minor rule violation plan letter'' rather than ``Notice of Minor Rule 
Plan Fine,'' the paragraph is substantially the same as NYSE Arca Rule 
10.9217(h).\21\
---------------------------------------------------------------------------

    \21\ Pursuant to the new paragraph the Exchange proposes to add 
to Rule 9217 based on NYSE Arca Rule 10.9217(d) discussed above, the 
Exchange is not required to impose a fine for a violation under its 
Minor Rule Plan. The Exchange may, at its discretion, bring formal 
disciplinary action against a member or associated person that has 
violated its rules.
---------------------------------------------------------------------------

    In order to further harmonize the Exchange's rules with those if 
its affiliates, and because a fine of $5,000 would exceed the maximum 
amount in Securities Exchange Act Rule 19d-1(c)(2) for a minor rule 
plan,\22\ the Exchange proposes to change the titles of Rules 9216 and 
9217. Specifically, the phrase ``Plan Pursuant to SEA Rule 19d-
1(c)(2)'' would be replaced with ``Procedure for Imposition of Fines 
for Minor Violation(s) of Rules'' in the title of Rule 9216. The same 
phrase in Rule 9217 would be replaced with ``Rule 9216(b).'' The titles 
of both rules would thereby be the same as the titles of NYSE Arca 
Rules 10.9216 and 10.9217 and NYSE National Rules 10.9216 and 10.9217, 
respectively. The Exchange proposes to make similar conforming changed 
to Rule 9216(b)(1) by removing references to SEA Rule 19d-1(c)(2) and 
the maximum fine level of $2,500, and by adding language specifying 
that the Exchange may impose a fine in accordance with the fine amounts 
and fine levels set forth in Rule 9217.
---------------------------------------------------------------------------

    \22\ 17 CFR 240.19d-1(c)(2).
---------------------------------------------------------------------------

2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\23\ in general, and furthers the objectives of Section 
6(b)(5),\24\ 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.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78f(b).
    \24\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Minor rule fines provide a meaningful sanction for minor or 
technical violations of rules. The Exchange believes that the proposed 
rule change will strengthen the Exchange's ability to carry out its 
oversight and enforcement responsibilities in cases where full 
disciplinary proceedings are unwarranted in view of the minor nature of 
the particular violation. Specifically, the proposed rule change is 
designed to prevent fraudulent and manipulative acts and practices 
because it will provide the Exchange the ability to issue a minor rule 
fine for violations of its rules governing authorized traders, crossing 
orders, DMM registration and capital requirements, and general 
registration and supervision requirements in situations where a more 
formal disciplinary action may not be warranted or appropriate.
    In addition, the Exchange believes that adding rules based on the 
rules of its affiliate to the Exchange's minor rule plan and the 
associated fine levels would promote fairness and consistency in the 
marketplace by permitting the Exchange to issue a minor rule fine for 
violations of substantially similar rules that are eligible for minor 
rule treatment on the Exchange's affiliate, thereby harmonizing minor 
rule plan fines

[[Page 43839]]

across affiliated exchanges for the same conduct. Deletion of obsolete 
rules from the minor rule plan would thus remove impediments to and 
perfect the mechanism of a free and open market by ensuring that 
persons subject to the Exchange's jurisdiction, regulators, and the 
investing public can more easily navigate and understand the Exchange's 
rulebook.
    Finally, in connection with the fine levels specified in the 
proposed rule change, adding clarifying language describing how the 
``rolling period'' is determined would further the goal of transparency 
and add clarity to the Exchange's rules. The Exchange believes that 
adding such clarifying language would also be consistent with the 
public interest and the protection of investors because investors will 
not be harmed and in fact would benefit from increased transparency, 
thereby reducing potential confusion.
    The Exchange further believes that the proposed amendments to Rule 
9217 are consistent with Section 6(b)(6) of the Act,\25\ which provides 
that members and persons associated with members shall be appropriately 
disciplined for violation of the provisions of the rules of the 
exchange, by expulsion, suspension, limitation of activities, 
functions, and operations, fine, censure, being suspended or barred 
from being associated with a member, or any other fitting sanction. As 
noted, the proposed rule change would provide the Exchange ability to 
sanction minor or technical violations pursuant to the Exchange's rules 
and would increase the amounts of fines in order for the Exchange to 
better deter violative activity.
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78f(b)(6).
---------------------------------------------------------------------------

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 proposed change is not 
designed to address any competitive issue but rather to update the 
Exchange's rules to strengthen the Exchange's ability to carry out its 
oversight and enforcement functions and deter potential violative 
conduct.
    The Exchange also believes that the proposed change to remove 
obsolete rules from the list of rules eligible for minor rule fines 
would not be inconsistent with the public interest and the protection 
of investors because investors will not be harmed and in fact would 
benefit from increased clarity and transparency, thereby reducing 
potential confusion.

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 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:
    (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-2019-044 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-2019-044. 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-2019-044, and should be submitted 
on or before September 12, 2019.
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    \26\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\26\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-18057 Filed 8-21-19; 8:45 am]
 BILLING CODE 8011-01-P

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