Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a Proposed Rule Change Regarding the Applicability and Functionality of Certain Order Types on the Exchange, 70234-70235 [2019-27454]
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70234
Federal Register / Vol. 84, No. 245 / Friday, December 20, 2019 / Notices
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–2019–046 and should
be submitted on or before January 10,
2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019–27450 Filed 12–19–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87758; File No. SR–
NYSEArca–2019–71]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Approving a
Proposed Rule Change Regarding the
Applicability and Functionality of
Certain Order Types on the Exchange
December 16, 2019.
jbell on DSKJLSW7X2PROD with NOTICES
I. Introduction
On October 22, 2019, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend its rules to clarify the
applicability and functionality of certain
order types on the Exchange. The
proposed rule change was published for
comment in the Federal Register on
November 7, 2019.3 The Commission
received no comment letters on the
proposed rule change. This order
approves the proposed rule change.
II. Description of the Proposal
The Exchange proposes to amend
Rule 6.62–O (Certain Types of Orders
Defined) to clarify the applicability and
functionality of certain order types.
Specifically, the Exchange proposes to
amend the definitions of Contingency
Orders, Working Orders, Stop Orders,
Stop Limit Orders, and All-or None
(‘‘AON’’) Orders, as set forth in Rule
6.62–O(d). The Exchange states it is not
proposing to change or alter any
obligations, rights, policies or practices.
Rather, the Exchange states that its
proposal is designed to reduce potential
investor confusion as to the
functionality and applicability of certain
order types presently available on the
Exchange.4
Proposed Changes to Order Type
Definitions
Rule 6.62–O (the ‘‘Rule’’) contains
certain definitions of options order
types available on the Exchange.
Paragraph (d) of the Rule defines
Contingency Orders or Working Orders
as orders that are ‘‘contingent upon a
condition being satisfied or an order
with a conditional or undisplayed price
and/or size.’’ The Exchange proposes to
add language regarding the handling of
such orders to state that Contingency
Orders and Working Orders are
maintained in the Working Order
Process of the Consolidated Book until
they are eligible for execution and/or
display.5 As discussed below, the
Exchange also proposes to amend the
definitions of Stop Orders, Stop Limit
Orders, and AON Orders, which are
Contingency Orders/Working Orders.
Rule 6.62–O(d)(1)–(2): Stop Orders
and Stop Limit Orders. A Stop Order is
an order that becomes a Market Order
when the market for a particular option
contract reaches a specified price.6 A
Stop Limit Order is an order that
becomes a Limit Order when the market
for a particular option contract reaches
a specified price.7 Stop Orders and Stop
Limit Orders (collectively, ‘‘Stop
Orders’’ herein unless otherwise
specified) track the price of an option
and are generally used to limit losses as
prices move up, in the case of buy
orders, or down in the case of sell
orders. In each case, the ‘‘triggering
event,’’ which converts the order type
(to a Market Order or Limit Order, as
applicable) occurs once the option
trades or is (locally) quoted at, or above
for a buy (below for a sell), the specified
stop price.8 Thus, Stop Orders to buy
(sell) may be triggered as the price of an
option rises (falls). The current rule
provides that a Stop Order to buy (sell)
will be rejected if, at the time of arrival,
the stop price is below (above) the bid
(offer).9
4 See
15 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 87443
(November 1, 2019), 84 FR 60128 (‘‘Notice’’).
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Jkt 250001
Notice, supra note 3, 84 FR at 60128.
proposed Rule 6.62–O(d).
6 See Rule 6.62–O(d)(1).
7 See Rule 6.62–O(d)(2).
8 See Rule 6.62–O(d)(1), (2).
9 Id.
5 See
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The Exchange proposes to modify the
description of Stop Orders as follows.
First, the Exchange proposes to revise
the first sentence describing each order
type (i.e., Rule 6.62–O(d)(1), (2)) to state
that the order type converts to a Market
or Limit Order, respectively—or ‘‘is
triggered’’—when the market for a
particular option contract reaches a
specified price.10 The Exchange also
proposes to modify Rule 6.62–O(d)(1),
(2) to combine into one sentence the
description of both buy and sell Stop
Orders without modifying functionality.
The current rule addresses buy and sell
Stop Orders in two sentences, and the
Exchange believes the proposed change
would make it easier to navigate.
Specifically, proposed Rule 6.62–
O(d)(1), (2) would provide that a Stop
Order (or Stop Limit Order) ‘‘to buy
(sell) is triggered’’ such that it becomes
a Market Order or Limit Order,
respectively, ‘‘when the option contract
trades at a price equal to or greater (less)
than the specified ‘stop’ price on the
Exchange or another Market Center or
when the Exchange bid (offer) is quoted
at a price equal to or greater (less) than
the stop price.’’ 11
The Exchange also proposes to
address the display and standing of each
type of Stop Order for which
information is currently contained only
in paragraph (d)(1) of Rule 6.62–O.12
Specifically, the Exchange proposes to
modify its rules to reflect that each type
of Stop Order ‘‘is not displayed and has
no standing in any Order Process in the
Consolidated Book, unless or until it is
triggered (i.e., same-side incoming
interest trades or quotes at a price equal
to or better than the stop price).’’ 13 The
Exchange additionally proposes to add
new rule text to clarify that ‘‘[a]fter the
triggering event,’’ a Stop Order (per Rule
6.62–O(d)(1)) becomes a new Market
Order, and a Stop Limit Order (per Rule
6.62–O(d)(2)) becomes a new Limit
10 See
proposed Rule 6.62–O(d)(1), (2).
proposed Rule 6.62–O(d)(1), (2). Consistent
with this proposed change to address both buy and
sell Stop Orders and Stop Limit Orders in one
sentence, the Exchange proposes to delete as
unnecessary the sentences in the current definitions
that describe the functionality for sell Stop Orders
and sell Stop Limit Orders. See id. For internal
consistency, the Exchange also proposes to replace
references to NYSE Arca with the ‘‘Exchange.’’ See
id.
12 See Rule 6.62–O(d)(1) (which provides that
‘‘Stop Orders (including Stop Limit Orders) shall
not have standing in any Order Process in the
Consolidated Book and shall not be displayed’’).
13 See proposed Rule 6.62–O(d)(1), (2). The
Exchange notes that this proposed text modifies the
existing text in paragraph (d)(1) and is new text for
paragraph (d)(2) of the Rule. See id.
11 See
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70235
Federal Register / Vol. 84, No. 245 / Friday, December 20, 2019 / Notices
jbell on DSKJLSW7X2PROD with NOTICES
Order, and each converted order is
processed accordingly.14
Finally, the Exchange proposes to
delete the last two sentences in the
description of each type of Stop Order,
which provides for the rejection of such
orders to buy (sell) if entered with a stop
price below the bid (or above the
offer).15 The Exchange states that this
language is not accurate because the
Exchange does not reject Stop Orders so
priced, but instead would execute such
orders once triggered.16 This proposed
change would reflect current Exchange
functionality.17
Rule 6.62–O(d)(4): AON Orders. An
AON Order is a Market or Limit Order
that is to be executed in its entirety or
not at all.18 The Exchange proposes to
make clear that an AON Order that does
not execute on arrival will not be
displayed or routed to another Market
Center (i.e., AON Orders may only be
executed on the Exchange) and would
have no standing in any Order Process
in the Consolidated Book.19 Further, the
Exchange proposes to clarify that AON
Orders are not eligible to execute against
incoming interest but rather may
execute solely against interest resting in
the Consolidated Book when sufficient
size is available.20 Finally, the Exchange
proposes to specify that the System
monitors the Consolidated Book for
AON Order execution opportunities.21
Rule 6.76A–O: Order Execution.
Current Rule 6.76A–O(b)(1)(A) provides
that ‘‘[a]n incoming marketable bid or
offer shall be matched against orders
within the Working Order Process in the
order of their ranking, at the price of the
displayed portion (or in the case of an
All-or-None Order, or at the limit price),
for the total amount of option contracts
available at that price or for the size of
the incoming bid or offer, whichever is
smaller.’’ 22 The Exchange proposes to
add ‘‘of Reserve Orders’’ to make clear
that reference to ‘‘the price of the
displayed portion’’ refers to such
orders.23 In addition, the Exchange
proposes to amend and reorganize the
language regarding AON Orders to
provide that incoming interest is
14 See proposed Rule 6.62–O(d)(1), (2). See also
Rule 6.62–O(a), (b) (defining Market Order and
Limit Order, respectively).
15 See proposed Rule 6.62–O(d)(1), (2).
16 See Notice, supra note 3, 84 FR at 60129.
17 See id.
18 See Rule 6.62–O(d)(4).
19 See proposed Rule 6.62–O(d)(4). See also Rule
6.76–O(a)(2)(C) (providing that AON Orders within
the Working Order Process are ‘‘ranked based on
the specified limit price and the time of order
entry’’).
20 See proposed Rule 6.62–O(d)(4).
21 See id.
22 See Rule 6.76A–O(b)(1)(A).
23 See proposed Rule 6.76A–O(b)(1)(A).
VerDate Sep<11>2014
18:30 Dec 19, 2019
Jkt 250001
‘‘matched against orders within the
Working Order Process in the order of
their ranking, at the price of the
displayed portion of Reserve Orders, or
at the limit price of AON Orders, for the
total amount of option contracts
available at that price or for the size of
the incoming bid or offer, whichever is
smaller.’’ 24
III. Discussion and Commission’s
Findings
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act 25 and the rules and regulations
thereunder applicable to a national
securities exchange.26 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,27 which requires,
among other things, that the rules of a
national securities exchange be
designed to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating 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, and not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Commission notes that the
Exchange represents it is not proposing
to change or alter any obligations, rights,
policies or practices. The Commission
notes that the proposal would delete
inaccurate language regarding Stop
Orders and clarify the descriptions
regarding the functionality of
Contingency Orders, Working Orders,
Stop Orders, and AON Orders. In
addition, the proposal would make
organizational and non-substantive
changes to the rule text. The
Commission believes this should add
transparency and clarity to the
Exchange’s rules, without altering
current functionality, to the benefit of
investors, market participants, and the
public in general.
For the reasons discussed above, the
Commission believes that the proposed
rule change is consistent with the Act.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,28 that the
24 See
id.
25 15 U.S.C. 78(f).
26 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
27 15 U.S.C. 78f(b)(5).
28 15 U.S.C. 78s(b)(2).
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
proposed rule change (SR–NYSEArca–
2019–71) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.29
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019–27454 Filed 12–19–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87765; File No. SR–CBOE–
2019–117]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating To Amend Rule
5.72 To Eliminate the Requirement
That Leg Prices Be Submitted Prior to
the Time a Complex FLEX Order is
Represented in an Open Outcry FLEX
Auction
December 16, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
6, 2019, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 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
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to amend
Rule 5.72. The text of the proposed rule
change is provided below.
(additions are italics; deletions are
[bracketed])
*
*
*
*
*
Rules of Cboe Exchange, Inc.
*
*
*
*
*
Rule 5.72. FLEX Trading
(a) No change.
29 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)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
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]]>Agencies
[Federal Register Volume 84, Number 245 (Friday, December 20, 2019)]
[Notices]
[Pages 70234-70235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27454]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87758; File No. SR-NYSEArca-2019-71]
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a
Proposed Rule Change Regarding the Applicability and Functionality of
Certain Order Types on the Exchange
December 16, 2019.
I. Introduction
On October 22, 2019, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission'') pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend its rules to clarify the applicability
and functionality of certain order types on the Exchange. The proposed
rule change was published for comment in the Federal Register on
November 7, 2019.\3\ The Commission received no comment letters on the
proposed rule change. This order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 87443 (November 1,
2019), 84 FR 60128 (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange proposes to amend Rule 6.62-O (Certain Types of Orders
Defined) to clarify the applicability and functionality of certain
order types. Specifically, the Exchange proposes to amend the
definitions of Contingency Orders, Working Orders, Stop Orders, Stop
Limit Orders, and All-or None (``AON'') Orders, as set forth in Rule
6.62-O(d). The Exchange states it is not proposing to change or alter
any obligations, rights, policies or practices. Rather, the Exchange
states that its proposal is designed to reduce potential investor
confusion as to the functionality and applicability of certain order
types presently available on the Exchange.\4\
---------------------------------------------------------------------------
\4\ See Notice, supra note 3, 84 FR at 60128.
---------------------------------------------------------------------------
Proposed Changes to Order Type Definitions
Rule 6.62-O (the ``Rule'') contains certain definitions of options
order types available on the Exchange. Paragraph (d) of the Rule
defines Contingency Orders or Working Orders as orders that are
``contingent upon a condition being satisfied or an order with a
conditional or undisplayed price and/or size.'' The Exchange proposes
to add language regarding the handling of such orders to state that
Contingency Orders and Working Orders are maintained in the Working
Order Process of the Consolidated Book until they are eligible for
execution and/or display.\5\ As discussed below, the Exchange also
proposes to amend the definitions of Stop Orders, Stop Limit Orders,
and AON Orders, which are Contingency Orders/Working Orders.
---------------------------------------------------------------------------
\5\ See proposed Rule 6.62-O(d).
---------------------------------------------------------------------------
Rule 6.62-O(d)(1)-(2): Stop Orders and Stop Limit Orders. A Stop
Order is an order that becomes a Market Order when the market for a
particular option contract reaches a specified price.\6\ A Stop Limit
Order is an order that becomes a Limit Order when the market for a
particular option contract reaches a specified price.\7\ Stop Orders
and Stop Limit Orders (collectively, ``Stop Orders'' herein unless
otherwise specified) track the price of an option and are generally
used to limit losses as prices move up, in the case of buy orders, or
down in the case of sell orders. In each case, the ``triggering
event,'' which converts the order type (to a Market Order or Limit
Order, as applicable) occurs once the option trades or is (locally)
quoted at, or above for a buy (below for a sell), the specified stop
price.\8\ Thus, Stop Orders to buy (sell) may be triggered as the price
of an option rises (falls). The current rule provides that a Stop Order
to buy (sell) will be rejected if, at the time of arrival, the stop
price is below (above) the bid (offer).\9\
---------------------------------------------------------------------------
\6\ See Rule 6.62-O(d)(1).
\7\ See Rule 6.62-O(d)(2).
\8\ See Rule 6.62-O(d)(1), (2).
\9\ Id.
---------------------------------------------------------------------------
The Exchange proposes to modify the description of Stop Orders as
follows. First, the Exchange proposes to revise the first sentence
describing each order type (i.e., Rule 6.62-O(d)(1), (2)) to state that
the order type converts to a Market or Limit Order, respectively--or
``is triggered''--when the market for a particular option contract
reaches a specified price.\10\ The Exchange also proposes to modify
Rule 6.62-O(d)(1), (2) to combine into one sentence the description of
both buy and sell Stop Orders without modifying functionality. The
current rule addresses buy and sell Stop Orders in two sentences, and
the Exchange believes the proposed change would make it easier to
navigate. Specifically, proposed Rule 6.62-O(d)(1), (2) would provide
that a Stop Order (or Stop Limit Order) ``to buy (sell) is triggered''
such that it becomes a Market Order or Limit Order, respectively,
``when the option contract trades at a price equal to or greater (less)
than the specified `stop' price on the Exchange or another Market
Center or when the Exchange bid (offer) is quoted at a price equal to
or greater (less) than the stop price.'' \11\
---------------------------------------------------------------------------
\10\ See proposed Rule 6.62-O(d)(1), (2).
\11\ See proposed Rule 6.62-O(d)(1), (2). Consistent with this
proposed change to address both buy and sell Stop Orders and Stop
Limit Orders in one sentence, the Exchange proposes to delete as
unnecessary the sentences in the current definitions that describe
the functionality for sell Stop Orders and sell Stop Limit Orders.
See id. For internal consistency, the Exchange also proposes to
replace references to NYSE Arca with the ``Exchange.'' See id.
---------------------------------------------------------------------------
The Exchange also proposes to address the display and standing of
each type of Stop Order for which information is currently contained
only in paragraph (d)(1) of Rule 6.62-O.\12\ Specifically, the Exchange
proposes to modify its rules to reflect that each type of Stop Order
``is not displayed and has no standing in any Order Process in the
Consolidated Book, unless or until it is triggered (i.e., same-side
incoming interest trades or quotes at a price equal to or better than
the stop price).'' \13\ The Exchange additionally proposes to add new
rule text to clarify that ``[a]fter the triggering event,'' a Stop
Order (per Rule 6.62-O(d)(1)) becomes a new Market Order, and a Stop
Limit Order (per Rule 6.62-O(d)(2)) becomes a new Limit
[[Page 70235]]
Order, and each converted order is processed accordingly.\14\
---------------------------------------------------------------------------
\12\ See Rule 6.62-O(d)(1) (which provides that ``Stop Orders
(including Stop Limit Orders) shall not have standing in any Order
Process in the Consolidated Book and shall not be displayed'').
\13\ See proposed Rule 6.62-O(d)(1), (2). The Exchange notes
that this proposed text modifies the existing text in paragraph
(d)(1) and is new text for paragraph (d)(2) of the Rule. See id.
\14\ See proposed Rule 6.62-O(d)(1), (2). See also Rule 6.62-
O(a), (b) (defining Market Order and Limit Order, respectively).
---------------------------------------------------------------------------
Finally, the Exchange proposes to delete the last two sentences in
the description of each type of Stop Order, which provides for the
rejection of such orders to buy (sell) if entered with a stop price
below the bid (or above the offer).\15\ The Exchange states that this
language is not accurate because the Exchange does not reject Stop
Orders so priced, but instead would execute such orders once
triggered.\16\ This proposed change would reflect current Exchange
functionality.\17\
---------------------------------------------------------------------------
\15\ See proposed Rule 6.62-O(d)(1), (2).
\16\ See Notice, supra note 3, 84 FR at 60129.
\17\ See id.
---------------------------------------------------------------------------
Rule 6.62-O(d)(4): AON Orders. An AON Order is a Market or Limit
Order that is to be executed in its entirety or not at all.\18\ The
Exchange proposes to make clear that an AON Order that does not execute
on arrival will not be displayed or routed to another Market Center
(i.e., AON Orders may only be executed on the Exchange) and would have
no standing in any Order Process in the Consolidated Book.\19\ Further,
the Exchange proposes to clarify that AON Orders are not eligible to
execute against incoming interest but rather may execute solely against
interest resting in the Consolidated Book when sufficient size is
available.\20\ Finally, the Exchange proposes to specify that the
System monitors the Consolidated Book for AON Order execution
opportunities.\21\
---------------------------------------------------------------------------
\18\ See Rule 6.62-O(d)(4).
\19\ See proposed Rule 6.62-O(d)(4). See also Rule 6.76-
O(a)(2)(C) (providing that AON Orders within the Working Order
Process are ``ranked based on the specified limit price and the time
of order entry'').
\20\ See proposed Rule 6.62-O(d)(4).
\21\ See id.
---------------------------------------------------------------------------
Rule 6.76A-O: Order Execution. Current Rule 6.76A-O(b)(1)(A)
provides that ``[a]n incoming marketable bid or offer shall be matched
against orders within the Working Order Process in the order of their
ranking, at the price of the displayed portion (or in the case of an
All-or-None Order, or at the limit price), for the total amount of
option contracts available at that price or for the size of the
incoming bid or offer, whichever is smaller.'' \22\ The Exchange
proposes to add ``of Reserve Orders'' to make clear that reference to
``the price of the displayed portion'' refers to such orders.\23\ In
addition, the Exchange proposes to amend and reorganize the language
regarding AON Orders to provide that incoming interest is ``matched
against orders within the Working Order Process in the order of their
ranking, at the price of the displayed portion of Reserve Orders, or at
the limit price of AON Orders, for the total amount of option contracts
available at that price or for the size of the incoming bid or offer,
whichever is smaller.'' \24\
---------------------------------------------------------------------------
\22\ See Rule 6.76A-O(b)(1)(A).
\23\ See proposed Rule 6.76A-O(b)(1)(A).
\24\ See id.
---------------------------------------------------------------------------
III. Discussion and Commission's Findings
After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act \25\ and the
rules and regulations thereunder applicable to a national securities
exchange.\26\ In particular, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act,\27\ which
requires, among other things, that the rules of a national securities
exchange be designed to promote just and equitable principles of trade,
to foster cooperation and coordination with persons engaged in
regulating 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,
and not be designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------
\25\ 15 U.S.C. 78(f).
\26\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\27\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission notes that the Exchange represents it is not
proposing to change or alter any obligations, rights, policies or
practices. The Commission notes that the proposal would delete
inaccurate language regarding Stop Orders and clarify the descriptions
regarding the functionality of Contingency Orders, Working Orders, Stop
Orders, and AON Orders. In addition, the proposal would make
organizational and non-substantive changes to the rule text. The
Commission believes this should add transparency and clarity to the
Exchange's rules, without altering current functionality, to the
benefit of investors, market participants, and the public in general.
For the reasons discussed above, the Commission believes that the
proposed rule change is consistent with the Act.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\28\ that the proposed rule change (SR-NYSEArca-2019-71) be, and it
hereby is, approved.
---------------------------------------------------------------------------
\28\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
---------------------------------------------------------------------------
\29\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019-27454 Filed 12-19-19; 8:45 am]
BILLING CODE 8011-01-P
