Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add Commentary .01 to Rule 7.35, 23583-23587 [2020-08936]
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Federal Register / Vol. 85, No. 82 / Tuesday, April 28, 2020 / Notices
Commission has reached any
conclusions with respect to any of the
issues involved. Rather, as described
below, the Commission seeks and
encourages interested persons to
provide comments on the proposed rule
change.
Pursuant to Section 19(b)(2)(B) of the
Act,20 the Commission is providing
notice of the grounds for disapproval
under consideration. The Commission is
instituting proceedings to allow for
additional analysis of the proposal’s
consistency with Section 6(b)(5) of the
Act, which requires, among other
things, that the rules of a national
securities exchange be ‘‘designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade,’’ and ‘‘to
protect investors and the public
interest.’’ 21
IV. Procedure: Request for Written
Comments
The Commission requests that
interested persons provide written
submissions of their views, data, and
arguments with respect to the issues
identified above, as well as any other
concerns they may have with the
proposal. In particular, the Commission
invites the written views of interested
persons concerning whether the
proposed rule change, as modified by
Amendment No. 2, is consistent with
Section 6(b)(5) or any other provision of
the Act, or the rules and regulations
thereunder. Although there do not
appear to be any issues relevant to
approval or disapproval that would be
facilitated by an oral presentation of
views, data, and arguments, the
Commission will consider, pursuant to
Rule 19b-4, any request for an
opportunity to make an oral
presentation.22
Interested persons are invited to
submit written data, views, and
arguments regarding whether the
proposed rule change, as modified by
Amendment No. 2, should be approved
or disapproved by May 19, 2020. Any
person who wishes to file a rebuttal to
any other person’s submission must file
that rebuttal by June 2, 2020.
20 Id.
21 15
U.S.C. 78f(b)(5).
19(b)(2) of the Exchange Act, as
amended by the Securities Act Amendments of
1975, Public Law 94–29 (June 4, 1975), grants the
Commission flexibility to determine what type of
proceeding—either oral or notice and opportunity
for written comments—is appropriate for
consideration of a particular proposal by a selfregulatory organization. See Securities Act
Amendments of 1975, Senate Comm. on Banking,
Housing & Urban Affairs, S. Rep. No. 75, 94th
Cong., 1st Sess. 30 (1975).
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22 Section
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The Commission asks that
commenters address the sufficiency of
the Exchange’s statements in support of
the proposal, which are set forth in
Amendment No. 2,23 in addition to any
other comments they may wish to
submit about the proposed rule change.
In this regard, the Commission seeks
commenters’ views regarding whether
the Exchange’s proposal to list and trade
Shares of the Fund, which seeks to
provide daily investment results that
correspond to the performance of an
index that measures the daily inverse
performance of a theoretical portfolio of
first- and second-month VIX Futures
Contracts, is adequately designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and to
protect investors and the public interest,
and is consistent with the maintenance
of a fair and orderly market under the
Exchange Act. In particular, the
Commission seeks commenters’ views
regarding whether the Exchange has
adequately described the potential
impact of sudden fluctuations in market
volatility on the Index and on the
Fund’s operation and performance for
the Commission to make a
determination under Section 6(b)(5) of
the Act.
Comments may be submitted by any
of the following methods:
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–CboeBZX–2020–003 and
should be submitted by May 19, 2020.
Rebuttal comments should be submitted
by June 2, 2020.
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–
CboeBZX–2020–003 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
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–CboeBZX–2020–003. 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
23 See
PO 00000
supra note 7.
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–08937 Filed 4–27–20; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–88725; File No. SR–NYSE–
2020–37]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Add
Commentary .01 to Rule 7.35
April 22, 2020.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’),2 and Rule 19b–4 thereunder,3
notice is hereby given that on April 21,
2020, New York Stock Exchange LLC
(‘‘NYSE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
24 17 CFR 200.30–3(a)(12); 17 CFR 200.30–
3(a)(57).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
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Federal Register / Vol. 85, No. 82 / Tuesday, April 28, 2020 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to add
Commentary .01 to Rule 7.35 to provide
that, for a temporary period that begins
on April 21, 2020 and ends on the
earlier of the reopening of the Trading
Floor facilities or after the Exchange
closes on May 15, 2020, for an IPO
Auction, Rule 7.35(c)(3) will not be in
effect, and the Exchange will
disseminate Auction Imbalance
Information if a security is an IPO and
has not had its IPO Auction. The
proposed rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to add
Commentary .01 to Rule 7.35 to provide
that, for a temporary period that begins
on April 21, 2020 and ends on the
earlier of the reopening of the Trading
Floor facilities or after the Exchange
closes on May 15, 2020, for an IPO
Auction, Rule 7.35(c)(3) will not be in
effect, and the Exchange will
disseminate Auction Imbalance
Information if a security is an IPO and
has not had its IPO Auction.
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Background
Since March 9, 2020, markets
worldwide have been experiencing
unprecedented market-wide declines
and volatility because of the ongoing
spread of COVID–19. Beginning on
March 16, 2020, to slow the spread of
COVID–19 through social-distancing
measures, significant limitations were
placed on large gatherings throughout
the country.
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On March 18, 2020, the CEO of the
Exchange made a determination under
Rule 7.1(c)(3) that, beginning March 23,
2020, the Trading Floor facilities located
at 11 Wall Street in New York City
would close and the Exchange would
move, on a temporary basis, to fully
electronic trading.4 Pursuant to Rule
7.1(e), the CEO notified the Board of
Directors of the Exchange of this
determination.
On March 26, 2020, the Exchange
amended Rule 7.35A to add
Commentary .02,5 which provides:
For a temporary period that begins on
March 26, 2020 and ends on the earlier of the
reopening of the Trading Floor facilities or
after the Exchange closes on May 15, 2020,
the Exchange will permit a DMM limited
entry to the Trading Floor to effect an IPO
Auction manually. For such an IPO Auction,
the Exchange will disseminate the following
Auction Imbalance Information provided by
the DMM via Trader Update: The Imbalance
Reference Price; the Paired Quantity; the
Unpaired Quantity; and the Side of the
Unpaired Quantity. The Exchange will
publish such Trader Update(s) promptly after
each publication by the DMM of a preopening indication for such security. The
Trader Update will also include the preopening indication range.
As described in the Rule 7.35A Filing,
the Exchange added this Commentary
because, while the Trading Floor is
temporarily closed, Designated Market
Makers (‘‘DMMs’’) cannot engage in any
manual actions, such as facilitating an
Auction manually or publishing preopening indications before a Core Open
or Trading Halt Auction. Commentary
.02 to Rule 7.35A permits entry to the
Trading Floor to a single employee from
the DMM member organization assigned
to such security so that this DMM can
access the Floor-based systems used to
effect an Auction manually, and
specifies the information that would be
included in a Trader Update in advance
of such IPO Auction.
On March 27, 2020, the Exchange
effected an IPO Auction pursuant to
Commentary .02 to Rule 7.35A.
On April 17, 2020, the Exchange
amended Rule 7.35A to add
Commentary .04,6 which provides:
4 The Exchange’s current rules establish how the
Exchange will function fully-electronically. The
CEO also closed the NYSE American Options
Trading Floor, which is located at the same 11 Wall
Street facilities, and the NYSE Arca Options
Trading Floor, which is located in San Francisco,
CA. See Press Release, dated March 18, 2020,
available here: https://ir.theice.com/press/pressreleases/all-categories/2020/03-18-2020-204202110.
5 See Securities Exchange Act Release No. 88488
(March 26, 2020) (SR–NYSE–2020–23), 85 FR 18286
(April 1, 2020) (Notice of filing and immediate
effectiveness of proposed rule change) (‘‘Rule 7.35A
Filing’’).
6 See Securities Exchange Act Release No. 88705
(April 21, 2020) (SR–NYSE–2020–35) (Notice of
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For a temporary period that begins on
April 17, 2020 and ends on the earlier of the
reopening of the Trading Floor facilities or
after the Exchange closes on May 15, 2020,
the Exchange will provide a DMM remote
access to Floor-based systems for the sole
purpose of effecting a manual (1) IPO
Auction, or (2) Core Open Auction in
connection with a listed company’s post-IPO
public offering. For such an IPO Auction, the
Exchange will disseminate the following
Auction Imbalance Information provided by
the DMM via Trader Update: The Imbalance
Reference Price; the Paired Quantity; the
Unpaired Quantity; and the Side of the
Unpaired Quantity. The Exchange will
publish such Trader Update(s) promptly after
each publication by the DMM of a preopening indication for such security. The
Trader Update will also include the preopening indication range.
With these amendments to Rule
7.35A, during the temporary period
while the Trading Floor is closed, a
DMM can effect a manual IPO Auction
either on the Trading Floor or remotely.
Proposed Rule Change
Rule 7.35(c)(3) provides that the
Exchange will not disseminate Auction
Imbalance Information if a security is an
IPO or Direct Listing and has not had its
IPO Auction or Direct Listing Auction.
The Exchange proposes to add
Commentary .01 to Rule 7.35 to provide
that, for a temporary period that begins
on April 21, 2020 and ends on the
earlier of the reopening of the Trading
Floor facilities or after the Exchange
closes on May 15, 2020, for an IPO
Auction, Rule 7.35(c)(3) will not be in
effect, and the Exchange will
disseminate Auction Imbalance
Information if a security is an IPO and
has not had its IPO Auction.
As noted above, during the temporary
period while the Trading Floor is
closed, pursuant to either Commentary
.02 or Commentary .04 to Rule 7.35A,
DMMs will be able to effect IPO
Auctions manually, either on the
Trading Floor or remotely. However, in
either case, Floor brokers will not be
present and therefore would not be
available to disseminate Floor-based
information about the IPO Auction to
their customers. Accordingly, for this
temporary period while the Trading
Floor is closed and there are no Floor
brokers, the Exchange believes it would
be appropriate to temporarily suspend
Rule 7.35(c)(3) relating to IPO Auctions.
The Auction Imbalance Information
that the Exchange proposes to
disseminate for an IPO Auction would
be the same information that is
disseminated in advance of a Core Open
Auction, as set forth in Rule 7.35A(e),
filing and immediate effectiveness of proposed rule
change).
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except for how the Imbalance Reference
Price would be determined. Rule
7.35A(e)(1) provides that the Exchange
begins disseminating Auction Imbalance
Information for a Core Open Auction at
8:00 a.m., and would do the same for an
IPO Auction. In addition, Rule
7.35A(e)(2) specifies the content of the
Auction Imbalance Information that is
disseminated in advance of a Core Open
Auction, which would be the same
content for an IPO Auction.7 Finally,
Rule 7.35A(e)(3) specifies the Imbalance
Reference Price, which for a Core Open
Auction is the Consolidated Last Sale
Price. The Exchange proposes that the
Imbalance Reference Price for an IPO
Auction would be the security’s offering
price, and that such Imbalance
Reference Price would be updated as
provided for in Rule 7.35A(e)(3)(A)—
(C).8
To effect this change, the Exchange
proposes to add Commentary .01 to Rule
7.35, which would provide:
For a temporary period that begins on
April 21, 2020 and ends on the earlier of the
reopening of the Trading Floor facilities or
after the Exchange closes on May 15, 2020,
for an IPO Auction, paragraph (c)(3) of this
Rule will not be in effect, and the Exchange
will disseminate Auction Imbalance
Information if a security is an IPO and has
not had its IPO Auction. Such Auction
Imbalance Information will be disseminated
in the same manner that Auction Imbalance
Information is disseminated for a Core Open
Auction, as set forth in Rule 7.35A(e)(1)—(3),
except that references to the term
‘‘Consolidated Last Sale Price’’ in Rule
7.35A(e)(3) and subparagraphs (A)—(C) of
that Rule will be replaced with the term ‘‘the
security’s offering price.’’
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Disseminating such Auction
Imbalance Information via the
proprietary data feeds obviates the need
to publish the Trader Updates described
in Commentary .02 and Commentary .04
to Rule 7.35A, as described above.9
Under these specific circumstances,
when Floor brokers are absent and
unavailable to relay Floor-based
information about an IPO Auction to
their customers, Auction Imbalance
Information would provide more
granular information in advance of an
7 For Core Open Auctions, the Exchange
disseminates Total Imbalance, Side of Total
Imbalance, Paired Quantity, and Continuous Book
Clearing Price, as these terms are defined in Rule
7.35(a)(4).
8 As provided for in Rule 7.35A(e)(3), the
Imbalance Reference Price changes if a pre-opening
indication has been published for such Auction.
9 For example, as provided for in Rule 7.35A(d),
a pre-opening indication is published via both the
securities information processor and proprietary
data feeds. Accordingly, pre-opening indications for
an IPO Auction would be included in the Auction
Imbalance Information that would be disseminated
via the proprietary data feeds pursuant to this
proposed rule change.
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IPO Auction as compared to the Trader
Updates. Specifically, as noted above,
the Auction Imbalance Information
disseminated via the proprietary data
feeds would begin being published at
8:00 a.m. ET, would be published every
second, and would include Total
Imbalance, Side of Total Imbalance,
Paired Quantity, and Continuous Book
Clearing Price information. By contrast,
a Trader Update as provided for in
Commentaries .02 or .04 to Rule 7.35A
would be disseminated on a more
limited basis, and only if the DMM were
to publish a pre-opening indication.
Accordingly, the Exchange proposes to
amend those Commentaries to delete the
following text:
For such an IPO Auction, the Exchange
will disseminate the following Auction
Imbalance Information provided by the DMM
via Trader Update: The Imbalance Reference
Price; the Paired Quantity; the Unpaired
Quantity; and the Side of the Unpaired
Quantity. The Exchange will publish such
Trader Update(s) promptly after each
publication by the DMM of a pre-opening
indication for such security. The Trader
Update will also include the pre-opening
indication range.
The Exchange has tested the ability to
disseminate such Auction Imbalance
Information on the day of an IPO
Auction. In addition, because such
Auction Imbalance is already
disseminated on a daily basis in
connection with Core Open Auctions,
the Exchange believes that member
organizations that subscribe to such
proprietary data feeds would be able to
receive, read, and respond to Auction
Imbalance Information for an IPO
Auction without needing to make any
changes. Accordingly, the Exchange
would be able to implement the
proposed rule change immediately upon
effectiveness of this filing.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Act,10 in general, and furthers the
objectives of Section 6(b)(5) of the Act,11
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.
As a result of uncertainty related to
the ongoing spread of COVID–19, the
U.S. equities markets are experiencing
10 15
11 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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23585
unprecedented market volatility. In
addition, social-distancing measures
have been implemented throughout the
country, including in New York City, to
reduce the spread of COVID–19.
Directly related to such socialdistancing measures, the CEO of the
Exchange made a determination under
Rule 7.1(c)(3) that beginning March 23,
2020, the Trading Floor facilities located
at 11 Wall Street in New York City
would close and the Exchange would
move, on a temporary basis, to fully
electronic trading.
The Exchange believes that the
proposed rule change would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system because,
during the temporary period while the
Trading Floor is closed and Floor
brokers are not present, it would
promote fair and orderly IPO Auctions
for the Exchange to disseminate Auction
Imbalance Information on the same
terms that such information is
disseminated for a Core Open Auction.
Specifically, during the period when the
Trading Floor is temporarily closed,
Floor brokers are not available to
disseminate Floor-based information
about the IPO Auction to their
customers. Under these specific
circumstances, the Exchange believes
that the Auction Imbalance Information
would provide more granular
information in advance of an IPO
Auction as compared to the Trader
Updates described in Commentaries .02
and .04 to Rule 7.35A. As described
above, the Auction Imbalance
Information disseminated via the
proprietary data feeds would begin
being published at 8:00 a.m. ET, would
be published every second, and would
include Total Imbalance, Side of Total
Imbalance, Paired Quantity, and
Continuous Book Clearing Price
information. By contrast, a Trader
Update as provided for in Commentaries
.02 or .04 to Rule 7.35A would be
disseminated on a more limited basis,
and only if the DMM were to publish a
pre-opening indication. The Exchange
therefore believes that proposed rule
change would therefore promote
transparency in advance of an IPO
Auction while the Trading Floor is
closed.
The Exchange believes that, by clearly
stating that this relief will be in effect
through the earlier of the reopening of
the Trading Floor facilities or the close
of the Exchange on May 15, 2020,
market participants will have advance
notice that the Exchange would
disseminate Auction Imbalance
Information for an IPO Auction that may
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be effected manually by the DMM
during this period.
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 but
rather is designed to ensure fair and
orderly IPO Auctions by providing that
the Exchange would disseminate
Auction Imbalance Information for such
auctions via its proprietary data feeds
during a temporary period when the
Exchange Trading Floor has been closed
in response to social-distancing
measures designed to reduce the spread
of the COVID–19 virus.
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 12 and Rule
19b–4(f)(6) thereunder.13 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
for 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 14 and Rule 19b–4(f)(6)
thereunder.15
A proposed rule change filed under
Rule 19b–4(f)(6) 16 normally does not
become operative for 30 days after the
date of the filing. However, pursuant to
12 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
14 15 U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
16 17 CFR 240.19b–4(f)(6).
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13 17
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Rule 19b–4(f)(6)(iii),17 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposed rule change may become
operative immediately. During this
temporary period when the Exchange
Trading Floor is closed, the Exchange
would disseminate Auction Imbalance
Information for IPO Auctions via
proprietary data feeds. Because Floor
brokers are not available to disseminate
Floor-based information about an IPO
Auction to their customers during this
period, the Exchange believes that the
Auction Imbalance Information would
provide more granular information in
advance of an IPO Auction as compared
to the Trader Updates described in
Commentaries .02 and .04 to Rule
7.35A. The Exchange represents that an
IPO is scheduled to price on the
Exchange on April 22, 2020, and that
the Exchange has tested the relevant
technology and is able to implement
this proposed rule change immediately.
The Commission believes that the
Auction Imbalance Information
disseminated pursuant to this proposed
rule change could provide more detailed
information with greater frequency in
advance of an IPO Auction as compared
to the current Trader Updates. Further,
the Commission notes that the Exchange
has tested this technology, and that the
proposal is a temporary measure
designed to respond to current,
unprecedented market conditions. For
these reasons, the Commission believes
that waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.18
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
change should be approved or
disapproved.
17 17
CFR 240.19b–4(f)(6)(iii).
purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
18 For
PO 00000
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IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSE–2020–37 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–2020–37. 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–2020–37, and
should be submitted on or before May
19, 2020.
19 17
E:\FR\FM\28APN1.SGM
CFR 200.30–3(a)(12), (59).
28APN1
23587
Federal Register / Vol. 85, No. 82 / Tuesday, April 28, 2020 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–08936 Filed 4–27–20; 8:45 am]
BILLING CODE 8011–01–P
SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA–2020–0020]
Agency Information Collection
Activities: Comment Request
The Social Security Administration
(SSA) publishes a list of information
collection packages requiring clearance
by the Office of Management and
Budget (OMB) in compliance with
Public Law 104–13, the Paperwork
Reduction Act of 1995, effective October
1, 1995. This notice includes revisions
of OMB-approved information
collections.
SSA is soliciting comments on the
accuracy of the agency’s burden
estimate; the need for the information;
its practical utility; ways to enhance its
quality, utility, and clarity; and ways to
minimize burden on respondents,
including the use of automated
collection techniques or other forms of
information technology. Mail, email, or
fax your comments and
recommendations on the information
collection(s) to the OMB Desk Officer
and SSA Reports Clearance Officer at
the following addresses or fax numbers.
(OMB), Office of Management and
Budget, Attn: Desk Officer for SSA,
Fax: 202–395–6974, Email address:
OIRA_Submission@omb.eop.gov.
(SSA), Social Security Administration,
OLCA, Attn: Reports Clearance
Director, 3100 West High Rise, 6401
Security Blvd., Baltimore, MD 21235,
Fax: 410–966–2830, Email address:
OR.Reports.Clearance@ssa.gov.
Or you may submit your comments
online through www.regulations.gov,
referencing Docket ID Number [SSA–
2020–0020].
SSA submitted the information
collections below to OMB for clearance.
Your comments regarding these
information collections would be most
useful if OMB and SSA receive them 30
days from the date of this publication.
To be sure we consider your comments,
we must receive them no later than May
28, 2020. Individuals can obtain copies
of the OMB clearance packages by
writing to OR.Reports.Clearance@
ssa.gov.
1. Agreement to Sell Property—20
CFR 416.1240–1245—0960–0127.
Individuals or couples who are
otherwise eligible for Supplemental
Security Income (SSI) payments, but
whose resources exceed the allowable
limit, may receive conditional payments
if they agree to dispose of the excess
non-liquid resources and make
repayments. SSA uses Form SSA–8060–
U3 to document this agreement, and to
ensure the individuals understand their
obligations. Respondents are applicants
for, and recipients of, SSI payments who
will be disposing of excess non-liquid
resources.
Type of Request: Revision of an OMBapproved information collection.
Modality of
completion
Number of
respondents
Frequency
of response
Average
burden per
response
(minutes)
Estimated
total annual
burden
(hours)
Average
theoretical
hourly cost
amount
(dollars) *
Average
wait time in
field office
(minutes) **
Total annual
opportunity
cost
(dollars) ***
SSA–8060–U3 .............
20,000
1
10
3,333
$22.50 *
24 **
$75,533 ***
* We based this figures on average U.S. citizen’s hourly salary, as reported by Bureau of Labor Statistics data.
** We based this figure on the average FY 2020 wait times for field offices, based on SSA’s current management information data.
*** This figure does not represent actual costs that SSA is imposing on recipients of Social Security payments to complete this application;
rather, these are theoretical opportunity costs for the additional time respondents will spend to complete the application. There is no actual
charge to respondents to complete the application.
2. Requests for Self-Employment
Information, Employee Information, and
Employer Information—20 CFR
422.120—0960–0508. When SSA cannot
identify Form W–2 wage data for an
individual, we place the data in an
earnings suspense file and contact the
individual (and certain instances the
jbell on DSKJLSW7X2PROD with NOTICES
Modality of
completion
Number of
respondents
employer) to obtain the correct
information. If the respondent furnishes
the name and Social Security Number
(SSN) information that agrees with
SSA’s records, or provides information
that resolves the discrepancy, SSA adds
the reported earnings to the
respondent’s Social Security record. We
Average
burden per
response
(minutes)
Frequency
of response
Estimated
total annual
burden
(hours)
use Forms SSA–L2765, SSA–L3365, and
SSA–L4002 for this purpose. The
respondents are self-employed
individuals and employees whose name
and SSN information do not agree with
their employer’s and SSA’s records.
Type of Request: Revision of an OMB
approved information collection.
Average
theoretical
hourly cost
amount
(dollars) *
Average
wait time in
field office
(minutes) **
Total annual
opportunity
cost
(dollars) ***
SSA–L2765 ..................
SSA–L3365 ..................
SSA–L4002 ..................
12,321
179,749
121,679
1
1
1
10
10
10
2,054
29,958
20,280
$22.50 *
22.50 *
22.50 *
24 **
24 **
24 **
$46,755 ***
674,595 ***
456,840 ***
Totals ....................
313,749
........................
........................
52,292
........................
........................
1,178,190 ***
* We based this figures on average U.S. citizen’s hourly salary, as reported by Bureau of Labor Statistics data.
** We based this figure on the average FY 2020 wait times for field offices, based on SSA’s current management information data.
*** This figure does not represent actual costs that SSA is imposing on recipients of Social Security payments to complete this application;
rather, these are theoretical opportunity costs for the additional time respondents will spend to complete the application. There is no actual
charge to respondents to complete the application.
3. Supported Employment
Demonstration (SED)—0960–0806.
VerDate Sep<11>2014
18:43 Apr 27, 2020
Jkt 250001
Sponsored by SSA, the SED builds on
the success of the intervention designed
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
for the Mental Health Treatment Study
(MHTS) previously funded by SSA. The
E:\FR\FM\28APN1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 82 (Tuesday, April 28, 2020)]
[Notices]
[Pages 23583-23587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08936]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88725; File No. SR-NYSE-2020-37]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Add Commentary .01 to Rule 7.35
April 22, 2020.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on April 21, 2020, New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
[[Page 23584]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to add Commentary .01 to Rule 7.35 to provide
that, for a temporary period that begins on April 21, 2020 and ends on
the earlier of the reopening of the Trading Floor facilities or after
the Exchange closes on May 15, 2020, for an IPO Auction, Rule
7.35(c)(3) will not be in effect, and the Exchange will disseminate
Auction Imbalance Information if a security is an IPO and has not had
its IPO Auction. The proposed rule change is available on the
Exchange's website at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to add Commentary .01 to Rule 7.35 to provide
that, for a temporary period that begins on April 21, 2020 and ends on
the earlier of the reopening of the Trading Floor facilities or after
the Exchange closes on May 15, 2020, for an IPO Auction, Rule
7.35(c)(3) will not be in effect, and the Exchange will disseminate
Auction Imbalance Information if a security is an IPO and has not had
its IPO Auction.
Background
Since March 9, 2020, markets worldwide have been experiencing
unprecedented market-wide declines and volatility because of the
ongoing spread of COVID-19. Beginning on March 16, 2020, to slow the
spread of COVID-19 through social-distancing measures, significant
limitations were placed on large gatherings throughout the country.
On March 18, 2020, the CEO of the Exchange made a determination
under Rule 7.1(c)(3) that, beginning March 23, 2020, the Trading Floor
facilities located at 11 Wall Street in New York City would close and
the Exchange would move, on a temporary basis, to fully electronic
trading.\4\ Pursuant to Rule 7.1(e), the CEO notified the Board of
Directors of the Exchange of this determination.
---------------------------------------------------------------------------
\4\ The Exchange's current rules establish how the Exchange will
function fully-electronically. The CEO also closed the NYSE American
Options Trading Floor, which is located at the same 11 Wall Street
facilities, and the NYSE Arca Options Trading Floor, which is
located in San Francisco, CA. See Press Release, dated March 18,
2020, available here: https://ir.theice.com/press/press-releases/all-categories/2020/03-18-2020-204202110.
---------------------------------------------------------------------------
On March 26, 2020, the Exchange amended Rule 7.35A to add
Commentary .02,\5\ which provides:
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 88488 (March 26,
2020) (SR-NYSE-2020-23), 85 FR 18286 (April 1, 2020) (Notice of
filing and immediate effectiveness of proposed rule change) (``Rule
7.35A Filing'').
For a temporary period that begins on March 26, 2020 and ends on
the earlier of the reopening of the Trading Floor facilities or
after the Exchange closes on May 15, 2020, the Exchange will permit
a DMM limited entry to the Trading Floor to effect an IPO Auction
manually. For such an IPO Auction, the Exchange will disseminate the
following Auction Imbalance Information provided by the DMM via
Trader Update: The Imbalance Reference Price; the Paired Quantity;
the Unpaired Quantity; and the Side of the Unpaired Quantity. The
Exchange will publish such Trader Update(s) promptly after each
publication by the DMM of a pre-opening indication for such
security. The Trader Update will also include the pre-opening
---------------------------------------------------------------------------
indication range.
As described in the Rule 7.35A Filing, the Exchange added this
Commentary because, while the Trading Floor is temporarily closed,
Designated Market Makers (``DMMs'') cannot engage in any manual
actions, such as facilitating an Auction manually or publishing pre-
opening indications before a Core Open or Trading Halt Auction.
Commentary .02 to Rule 7.35A permits entry to the Trading Floor to a
single employee from the DMM member organization assigned to such
security so that this DMM can access the Floor-based systems used to
effect an Auction manually, and specifies the information that would be
included in a Trader Update in advance of such IPO Auction.
On March 27, 2020, the Exchange effected an IPO Auction pursuant to
Commentary .02 to Rule 7.35A.
On April 17, 2020, the Exchange amended Rule 7.35A to add
Commentary .04,\6\ which provides:
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 88705 (April 21,
2020) (SR-NYSE-2020-35) (Notice of filing and immediate
effectiveness of proposed rule change).
For a temporary period that begins on April 17, 2020 and ends on
the earlier of the reopening of the Trading Floor facilities or
after the Exchange closes on May 15, 2020, the Exchange will provide
a DMM remote access to Floor-based systems for the sole purpose of
effecting a manual (1) IPO Auction, or (2) Core Open Auction in
connection with a listed company's post-IPO public offering. For
such an IPO Auction, the Exchange will disseminate the following
Auction Imbalance Information provided by the DMM via Trader Update:
The Imbalance Reference Price; the Paired Quantity; the Unpaired
Quantity; and the Side of the Unpaired Quantity. The Exchange will
publish such Trader Update(s) promptly after each publication by the
DMM of a pre-opening indication for such security. The Trader Update
---------------------------------------------------------------------------
will also include the pre-opening indication range.
With these amendments to Rule 7.35A, during the temporary period
while the Trading Floor is closed, a DMM can effect a manual IPO
Auction either on the Trading Floor or remotely.
Proposed Rule Change
Rule 7.35(c)(3) provides that the Exchange will not disseminate
Auction Imbalance Information if a security is an IPO or Direct Listing
and has not had its IPO Auction or Direct Listing Auction. The Exchange
proposes to add Commentary .01 to Rule 7.35 to provide that, for a
temporary period that begins on April 21, 2020 and ends on the earlier
of the reopening of the Trading Floor facilities or after the Exchange
closes on May 15, 2020, for an IPO Auction, Rule 7.35(c)(3) will not be
in effect, and the Exchange will disseminate Auction Imbalance
Information if a security is an IPO and has not had its IPO Auction.
As noted above, during the temporary period while the Trading Floor
is closed, pursuant to either Commentary .02 or Commentary .04 to Rule
7.35A, DMMs will be able to effect IPO Auctions manually, either on the
Trading Floor or remotely. However, in either case, Floor brokers will
not be present and therefore would not be available to disseminate
Floor-based information about the IPO Auction to their customers.
Accordingly, for this temporary period while the Trading Floor is
closed and there are no Floor brokers, the Exchange believes it would
be appropriate to temporarily suspend Rule 7.35(c)(3) relating to IPO
Auctions.
The Auction Imbalance Information that the Exchange proposes to
disseminate for an IPO Auction would be the same information that is
disseminated in advance of a Core Open Auction, as set forth in Rule
7.35A(e),
[[Page 23585]]
except for how the Imbalance Reference Price would be determined. Rule
7.35A(e)(1) provides that the Exchange begins disseminating Auction
Imbalance Information for a Core Open Auction at 8:00 a.m., and would
do the same for an IPO Auction. In addition, Rule 7.35A(e)(2) specifies
the content of the Auction Imbalance Information that is disseminated
in advance of a Core Open Auction, which would be the same content for
an IPO Auction.\7\ Finally, Rule 7.35A(e)(3) specifies the Imbalance
Reference Price, which for a Core Open Auction is the Consolidated Last
Sale Price. The Exchange proposes that the Imbalance Reference Price
for an IPO Auction would be the security's offering price, and that
such Imbalance Reference Price would be updated as provided for in Rule
7.35A(e)(3)(A)--(C).\8\
---------------------------------------------------------------------------
\7\ For Core Open Auctions, the Exchange disseminates Total
Imbalance, Side of Total Imbalance, Paired Quantity, and Continuous
Book Clearing Price, as these terms are defined in Rule 7.35(a)(4).
\8\ As provided for in Rule 7.35A(e)(3), the Imbalance Reference
Price changes if a pre-opening indication has been published for
such Auction.
---------------------------------------------------------------------------
To effect this change, the Exchange proposes to add Commentary .01
to Rule 7.35, which would provide:
For a temporary period that begins on April 21, 2020 and ends on
the earlier of the reopening of the Trading Floor facilities or
after the Exchange closes on May 15, 2020, for an IPO Auction,
paragraph (c)(3) of this Rule will not be in effect, and the
Exchange will disseminate Auction Imbalance Information if a
security is an IPO and has not had its IPO Auction. Such Auction
Imbalance Information will be disseminated in the same manner that
Auction Imbalance Information is disseminated for a Core Open
Auction, as set forth in Rule 7.35A(e)(1)--(3), except that
references to the term ``Consolidated Last Sale Price'' in Rule
7.35A(e)(3) and subparagraphs (A)--(C) of that Rule will be replaced
with the term ``the security's offering price.''
Disseminating such Auction Imbalance Information via the
proprietary data feeds obviates the need to publish the Trader Updates
described in Commentary .02 and Commentary .04 to Rule 7.35A, as
described above.\9\ Under these specific circumstances, when Floor
brokers are absent and unavailable to relay Floor-based information
about an IPO Auction to their customers, Auction Imbalance Information
would provide more granular information in advance of an IPO Auction as
compared to the Trader Updates. Specifically, as noted above, the
Auction Imbalance Information disseminated via the proprietary data
feeds would begin being published at 8:00 a.m. ET, would be published
every second, and would include Total Imbalance, Side of Total
Imbalance, Paired Quantity, and Continuous Book Clearing Price
information. By contrast, a Trader Update as provided for in
Commentaries .02 or .04 to Rule 7.35A would be disseminated on a more
limited basis, and only if the DMM were to publish a pre-opening
indication. Accordingly, the Exchange proposes to amend those
Commentaries to delete the following text:
---------------------------------------------------------------------------
\9\ For example, as provided for in Rule 7.35A(d), a pre-opening
indication is published via both the securities information
processor and proprietary data feeds. Accordingly, pre-opening
indications for an IPO Auction would be included in the Auction
Imbalance Information that would be disseminated via the proprietary
data feeds pursuant to this proposed rule change.
For such an IPO Auction, the Exchange will disseminate the
following Auction Imbalance Information provided by the DMM via
Trader Update: The Imbalance Reference Price; the Paired Quantity;
the Unpaired Quantity; and the Side of the Unpaired Quantity. The
Exchange will publish such Trader Update(s) promptly after each
publication by the DMM of a pre-opening indication for such
security. The Trader Update will also include the pre-opening
---------------------------------------------------------------------------
indication range.
The Exchange has tested the ability to disseminate such Auction
Imbalance Information on the day of an IPO Auction. In addition,
because such Auction Imbalance is already disseminated on a daily basis
in connection with Core Open Auctions, the Exchange believes that
member organizations that subscribe to such proprietary data feeds
would be able to receive, read, and respond to Auction Imbalance
Information for an IPO Auction without needing to make any changes.
Accordingly, the Exchange would be able to implement the proposed rule
change immediately upon effectiveness of this filing.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\10\ in general, and furthers the objectives of Section 6(b)(5) of
the Act,\11\ 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
As a result of uncertainty related to the ongoing spread of COVID-
19, the U.S. equities markets are experiencing unprecedented market
volatility. In addition, social-distancing measures have been
implemented throughout the country, including in New York City, to
reduce the spread of COVID-19. Directly related to such social-
distancing measures, the CEO of the Exchange made a determination under
Rule 7.1(c)(3) that beginning March 23, 2020, the Trading Floor
facilities located at 11 Wall Street in New York City would close and
the Exchange would move, on a temporary basis, to fully electronic
trading.
The Exchange believes that the proposed rule change would remove
impediments to and perfect the mechanism of a free and open market and
a national market system because, during the temporary period while the
Trading Floor is closed and Floor brokers are not present, it would
promote fair and orderly IPO Auctions for the Exchange to disseminate
Auction Imbalance Information on the same terms that such information
is disseminated for a Core Open Auction. Specifically, during the
period when the Trading Floor is temporarily closed, Floor brokers are
not available to disseminate Floor-based information about the IPO
Auction to their customers. Under these specific circumstances, the
Exchange believes that the Auction Imbalance Information would provide
more granular information in advance of an IPO Auction as compared to
the Trader Updates described in Commentaries .02 and .04 to Rule 7.35A.
As described above, the Auction Imbalance Information disseminated via
the proprietary data feeds would begin being published at 8:00 a.m. ET,
would be published every second, and would include Total Imbalance,
Side of Total Imbalance, Paired Quantity, and Continuous Book Clearing
Price information. By contrast, a Trader Update as provided for in
Commentaries .02 or .04 to Rule 7.35A would be disseminated on a more
limited basis, and only if the DMM were to publish a pre-opening
indication. The Exchange therefore believes that proposed rule change
would therefore promote transparency in advance of an IPO Auction while
the Trading Floor is closed.
The Exchange believes that, by clearly stating that this relief
will be in effect through the earlier of the reopening of the Trading
Floor facilities or the close of the Exchange on May 15, 2020, market
participants will have advance notice that the Exchange would
disseminate Auction Imbalance Information for an IPO Auction that may
[[Page 23586]]
be effected manually by the DMM during this period.
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 but rather is designed
to ensure fair and orderly IPO Auctions by providing that the Exchange
would disseminate Auction Imbalance Information for such auctions via
its proprietary data feeds during a temporary period when the Exchange
Trading Floor has been closed in response to social-distancing measures
designed to reduce the spread of the COVID-19 virus.
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 \12\ and Rule 19b-4(f)(6) thereunder.\13\
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 for 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 \14\ and Rule 19b-
4(f)(6) thereunder.\15\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally
does not become operative for 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\17\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become operative immediately. During this temporary
period when the Exchange Trading Floor is closed, the Exchange would
disseminate Auction Imbalance Information for IPO Auctions via
proprietary data feeds. Because Floor brokers are not available to
disseminate Floor-based information about an IPO Auction to their
customers during this period, the Exchange believes that the Auction
Imbalance Information would provide more granular information in
advance of an IPO Auction as compared to the Trader Updates described
in Commentaries .02 and .04 to Rule 7.35A. The Exchange represents that
an IPO is scheduled to price on the Exchange on April 22, 2020, and
that the Exchange has tested the relevant technology and is able to
implement this proposed rule change immediately. The Commission
believes that the Auction Imbalance Information disseminated pursuant
to this proposed rule change could provide more detailed information
with greater frequency in advance of an IPO Auction as compared to the
current Trader Updates. Further, the Commission notes that the Exchange
has tested this technology, and that the proposal is a temporary
measure designed to respond to current, unprecedented market
conditions. For these reasons, the Commission believes that waiver of
the 30-day operative delay is consistent with the protection of
investors and the public interest. Accordingly, the Commission hereby
waives the 30-day operative delay and designates the proposal operative
upon filing.\18\
---------------------------------------------------------------------------
\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6)(iii).
\18\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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 change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NYSE-2020-37 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-2020-37. 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-2020-37, and should be submitted on
or before May 19, 2020.
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\19\ 17 CFR 200.30-3(a)(12), (59).
[[Page 23587]]
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-08936 Filed 4-27-20; 8:45 am]
BILLING CODE 8011-01-P
