Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add, for a Temporary Period That Begins on June 17, 2020, Commentary .06 to Rule 7.35A; Commentary .03 to Rule 7.35B; Supplementary Material .20 to Rule 76; and an Amendment to Supplementary Material .30 to Rule 36 To Support the Partial Return of Designated Market Makers to the Trading Floor, 37712-37715 [2020-13437]

Download as PDF 37712 Federal Register / Vol. 85, No. 121 / Tuesday, June 23, 2020 / Notices should be submitted on or before July 14, 2020. the Commission’s Public Reference Room. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.22 J. Matthew DeLesDernier, Assistant Secretary. 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. [FR Doc. 2020–13436 Filed 6–22–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–89086; File No. SR–NYSE– 2020–52] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add, for a Temporary Period That Begins on June 17, 2020, Commentary .06 to Rule 7.35A; Commentary .03 to Rule 7.35B; Supplementary Material .20 to Rule 76; and an Amendment to Supplementary Material .30 to Rule 36 To Support the Partial Return of Designated Market Makers to the Trading Floor June 17, 2020. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that on June 16, 2020, New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) 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 self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. jbell on DSKJLSW7X2PROD with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to add, for a temporary period that begins on June 17, 2020, and ends on the earlier of a full reopening of the Trading Floor facilities to DMMs or after the Exchange closes on June 30, 2020, (1) Commentary .06 to Rule 7.35A; (2) Commentary .03 to Rule 7.35B; (3) Supplementary Material .20 to Rule 76; and (4) an amendment to Supplementary Material .30 to Rule 36. The proposed rule change is available on the Exchange’s website at www.nyse.com, at the principal office of the Exchange, and at 22 17 CFR 200.30–3(a)(12). U.S.C.78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 17:17 Jun 22, 2020 Jkt 250001 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 add, for a temporary period that begins on June 17, 2020, and ends on the earlier of a full reopening of the Trading Floor facilities to DMMs or after the Exchange closes on June 30, 2020, (1) Commentary .06 to Rule 7.35A; (2) Commentary .03 to Rule 7.35B; (3) Supplementary Material .20 to Rule 76; and (4) an amendment to Supplementary Material .30 to Rule 36. This temporary rule relief will support the partial return of Designated Market Makers (‘‘DMMs’’) to the Trading Floor. Background 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 On May 14, 2020, the CEO of the Exchange made a determination under Rule 7.1(c) to reopen the Trading Floor on a limited basis on May 26, 2020 to a subset of Floor brokers, subject to safety measures designed to prevent the spread of the COVID–19 virus.5 On June 15, 2020, the CEO of the Exchange made a determination under Rule 7.1(c) to begin the second phase of the Trading Floor reopening by allowing DMMs to return 4 See Press Release, dated March 18, 2020, available here: https://ir.theice.com/press/newsdetails/2020/New-York-Stock-Exchange-to-MoveTemporarily-to-Fully-Electronic-Trading/ default.aspx. 5 See Securities Exchange Act Release No. 88933 (May 22, 2020) (SR–NYSE2020–47) (Notice of filing and immediate effectiveness of proposed rule change). PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 to on June 17, 2020, subject to safety measures designed to prevent the spread of COVID–19.6 With this partial reopening of the Trading Floor to DMMs, each DMM unit may choose to return a limited number of staff to the Trading Floor. A DMM unit that chooses to return staff to the Trading Floor would be able to facilitate Core Open, Trading Halt, and Closing Auctions manually in all of the DMM unit’s assigned securities, and the Exchange would no longer automatically run an Exchangefacilitated Auction for the securities assigned to that DMM unit.7 DMM units that choose to return to the Trading Floor would be provided an opportunity to facilitate Auctions in each of their assigned securities electronically, and manually facilitate any Auctions that were not facilitated electronically. To accommodate health-focused considerations and social distancing, DMMs would be precluded from accepting verbal bids and offers from Floor brokers during this phase of the reopening. The temporary relief described in Commentaries to Rules 7.35, 7.35A, 7.35B, and 7.35C would continue to be available during the second phase of the partial reopening of the Trading Floor to support not only DMM units that have chosen not to return to the Trading Floor, but also to support DMM units that would be returning to the Trading Floor with only a subset of staff. Proposed Rule Change To support DMM units that choose to return to the Trading Floor with reduced staff, the Exchange proposes additional temporary rule relief that would be in effect beginning on June 17, 2020, and ends on the earlier of a full reopening of the Trading Floor facilities to DMMs or after the Exchange closes on June 30, 2020. First, as noted above, if a DMM unit chooses to return to the Trading Floor, that DMM unit would be expected to manually facilitate any Auctions in its assigned securities that it was not able to facilitate electronically, including publishing pre-opening indications pursuant to Rule 7.35A(d).8 However, 6 See Trader Update, dated June 15, 2020, available here: https://www.nyse.com/traderupdate/history#110000272018. 7 Unless and until a DMM unit chooses to return staff to the Trading Floor, the Exchange will continue to automatically facilitate any Auctions assigned to that remote-based DMM unit that were not electronically-facilitated by that DMM unit. The Exchange will publish a daily list on its website of those securities that will be ineligible for manual auctions conducted from the Floor. 8 Rule 7.35A(d) sets forth the requirements relating to pre-opening indications, which a DMM E:\FR\FM\23JNN1.SGM 23JNN1 Federal Register / Vol. 85, No. 121 / Tuesday, June 23, 2020 / Notices because such DMM units would have reduced staff on the Trading Floor, the Exchange proposes that for this temporary period, the Applicable Price Range used to determine whether to publish a pre-opening indication would be widened to 10% for securities with an Indication Reference Price higher than $3.00 and $0.30 for securities with an Indication Reference Price equal to or lower than $3.00. The Exchange further proposes to temporarily suspend the Applicable Price Range currently specified in Rules 7.35A(d)(3)(A) and (B). The Exchange believes that this proposed rule change would promote fair and orderly auctions during this temporary period because it would reduce potential burdens on the subset of DMM staff available to facilitate Auctions manually, while at the same time preserving pre-opening indications for securities with significant price movement. To effect this change, the Exchange proposes to add Commentary .06 to Rule 7.35A as follows: For a temporary period that begins on June 17, 2020 and ends on the earlier of a full reopening of the Trading Floor facilities to DMMs or after the Exchange closes on June 30, 2020, the Applicable Price Range specified in paragraphs (d)(3)(A) and (B) of this Rule is suspended and the Applicable Price Range will be 10% for securities with an Indication Reference Price higher than $3.00 and $0.30 for securities with an Indication Reference Price equal to or lower than $3.00. jbell on DSKJLSW7X2PROD with NOTICES Second, because DMMs would be precluded from accepting verbal bids and offers from Floor brokers during this temporary period while the Trading Floor is open to only a subset of staff from DMM units that choose to return to the Trading Floor, the Exchange proposes to add temporary rules specifying that Floor Broker Interest 9 will publish before a security opens or reopens if the Core Open or Trading Halt Auction Price is anticipated to be a change of more than the ‘‘Applicable Price Range,’’ as specified in Rule 7.35A(d)(2), from a specified ‘‘Indication Reference Price,’’ as specified in Rule 7.35A(d)(2). Under Rule 7.35A(d)(3)(A), the Applicable Price Range is 5% for securities with an Indication Reference Price over $3.00 and $0.15 for securities with an Indication Reference Price equal to or lower than $3.00. If as of 9:00 a.m., the E-mini S&P 500 Futures are +/- 2% from the prior day’s closing price of the E-mini S&P 500 Futures, when reopening trading following a market-wide trading halt under Rule 7.12, or if the Exchange determined that it is necessary or appropriate for the maintenance of a fair and orderly market, the Applicable Price Range for determining whether to publish a pre-opening indication will be 10% for securities with an Indication Reference Price over $3.00 and $0.15 for securities with an Indication Reference Price equal to or lower than $3.00. See Rule 7.35A(d)(3)(B). 9 For purposes of Auctions under the Rule 7.35 Series, the term ‘‘Floor Broker Interest’’ means orders represented orally by a Floor broker at the VerDate Sep<11>2014 17:17 Jun 22, 2020 Jkt 250001 would not be available for Closing Auctions and ‘‘crossing’’ orders pursuant to Rule 76, including the Cross Function specified in Supplementary Material .10 to Rule 76, would not be available to Floor brokers. To effect this change, the Exchange proposes to add Commentary .03 to Rule 7.35B as follows: For a temporary period that begins on June 17, 2020 and ends on the earlier of a full reopening of the Trading Floor facilities to DMMs or after the Exchange closes on June 30, 2020, Floor Broker Interest will not be eligible to participate in the Closing Auction. The Exchange also proposes to add Supplementary Material .20 to Rule 76 as follows: For a temporary period that begins on June 17, 2020 and ends on the earlier of a full reopening of the Trading Floor facilities to DMMs or after the Exchange closes on June 30, 2020, the availability of ‘‘crossing’’’ orders as described in this Rule, including the Cross Function as specified in Supplementary Material .10 to this Rule, will be suspended. Third, although a DMM unit may choose to return to the Trading Floor beginning on June, 17, 2020, such DMM units may have implemented, and continue to follow, remote working arrangements to halt the spread of the COVID–19. Specifically, as part of their business continuity plans, DMM units have instituted remote working arrangements for their off-Floor offices, thereby limiting or eliminating the availability of persons in DMMs’ offFloor offices ordinarily reachable using the land-based telephone lines located in the DMM units’ post locations on the Trading Floor.10 To provide DMMs with flexibility to communicate with staff of the DMM unit that are not assigned to the Trading Floor, but who are temporarily working remotely, the Exchange proposes to permit DMMs to use telephones installed at the DMM unit trading post to communicate with DMM unit personnel working in locations other than the off-Floor offices of the DMM unit. This temporary rule relief would be subject to the DMM unit providing the telephone numbers of point of sale. See Rule 7.35(a)(9). Floor Broker Interest that has been electronically accepted by the DMM is eligible to participate in the Closing Auction. See Rule 7.35B(a)(1). 10 Rule 36.30 provides that, with the approval of the Exchange, a DMM unit may maintain a telephone line at its stock trading post location to the off-Floor offices of the DMM unit, the unit’s clearing firm, or to persons providing non-trading related services. Such telephone connection shall not be used for the purpose of transmitting to the Floor orders for the purchase or sale of securities. Communications by DMM staff on the Trading Floor are governed by Rule 98. PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 37713 such off-Floor personnel to the Exchange in advance. To effect this change, the Exchange proposes a new paragraph to Supplementary Material .30 to Rule 36 as follows: For a temporary period that begins on June 17, 2020 and ends on the earlier of the full reopening of the Trading Floor facilities to DMMs or after the Exchange closes on June 30, 2020, a DMM unit may maintain a telephone line at its trading post location to communicate with DMM unit personnel working in locations other than the off-Floor offices of the DMM unit, provided that the telephone numbers of such persons are provided to the Exchange in advance. The Exchange would be able to implement the proposed rule change immediately upon effectiveness of this proposed rule change. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act,11 in general, and furthers the objectives of Section 6(b)(5) of the Act,12 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. To reduce the spread of COVID–19, 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. On May 14, 2020, the CEO of the Exchange made a determination under Rule 7.1(c)(3) that, beginning May 26, 2020, the Trading Floor would be partially reopened to allow a subset of Floor brokers to return to the Trading Floor. And on June 15, 2020, the CEO of the Exchange made a determination under Rule 7.1(c)(3) that, beginning June 17, 2020, the Trading Floor would be partially reopened to allow a subset of DMMs to return to the Trading Floor. 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 they are designed to support the return of DMMs to the Trading Floor, who would be operating with reduced staff. The Exchange believes that the 11 15 12 15 E:\FR\FM\23JNN1.SGM U.S.C. 78f(b). U.S.C. 78f(b)(5). 23JNN1 jbell on DSKJLSW7X2PROD with NOTICES 37714 Federal Register / Vol. 85, No. 121 / Tuesday, June 23, 2020 / Notices proposed rule change to add Commentary .06 to Rule 7.35A would promote fair and orderly markets because it would widen the Applicable Price Range for pre-opening indications during the temporary period when the Trading Floor has been reopened to a subset of DMMs. This proposed rule change will reduce potential burdens on the subset of DMM staff available to facilitate Auctions manually, while at the same time preserving pre-opening indications for securities with significant price movement. The Exchange notes that it has the authority to implement the proposed Applicable Price Range under Rule 7.35A(d)(3)(B) if the Exchange determined that it is necessary or appropriate for the maintenance of a fair and orderly market. The Exchange believes it would promote transparency to specify that such widened Applicable Price Range would be in effect during this temporary period, instead of implementing the widened Applicable Price Range on a day-to-day basis under Rule 7.35A(d)(3)(B). The Exchange further believes that proposed Commentary .03 to Rule 7.35B and Supplementary Material .20 to Rule 76 would remove impediments to and perfect the mechanism of a free and open market and a national market system because they would promote transparency that Floor Broker Interest, as defined in Rule 7.35(a)(9), and crossing orders, as defined in Rule 76, would not be available to Floor brokers during the temporary period when the DMMs who choose to return to the Trading Floor are operating with reduced staff. Finally, the Exchange believes that the proposed amendment to Rule 36 would remove impediments to and perfect the mechanism of a free and open market and a national market system by continuing to facilitate permitted communications between DMMs and their off-Floor personnel notwithstanding the remote working arrangements implemented by DMM units for their off-Floor offices. The Exchange believes that DMMs using the telephone lines at their trading posts to communicate with off-Floor personnel working remotely would ensure continuity in DMM operations and enable DMMs to communicate with DMM staff in order to conduct their regular business and facilitate fair and orderly markets in DMM securities. The Exchange further believes that without the requested relief, DMMs could be compromised in their ability to conduct their regular course of business on the Trading Floor, which would adversely impact the market generally and VerDate Sep<11>2014 17:17 Jun 22, 2020 Jkt 250001 investor confidence. In particular, any inability for DMMs to communicate with personnel from their off-Floor offices permitted under Rule 98 regardless of where such off-Floor personnel may be located during the pandemic, could compromise DMM units’ ability to meet their obligations, particularly if a DMM unit experiences issues with connectivity or its algorithms. In addition, the proposed temporary rule would require DMM units to provide the telephone numbers of the permitted contacts working remotely. This additional safeguard would provide the Exchange with information that may be important to determining whether DMM units are only communicating with personnel from their off-Floor offices in a manner permitted under Rule 98. The Exchange believes that, by clearly stating that this relief would be in effect through the earlier of a full reopening of the Trading Floor facilities to DMMs or the close of the Exchange on June 30, 2020, market participants would have advance notice of the temporary period during which these proposed rule changes would be in effect. 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. These proposed rule changes are not designed to address any competitive issues but rather to support the partial reopening of the Trading Floor to DMM units that choose to return to the Trading Floor with reduced staff for a temporary period that begins on June 17, 2020 and ends on the earlier of a full reopening of the Trading Floor facilities to DMMs or after the Exchange closes on June 30, 2020. 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 13 and Rule 19b–4(f)(6) thereunder.14 Because the 13 15 14 17 PO 00000 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). Frm 00093 Fmt 4703 Sfmt 4703 foregoing proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act 15 and subparagraph (f)(6) of Rule 19b–4 thereunder.16 A proposed rule change filed under Rule 19b–4(f)(6) 17 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),18 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 proposal may become operative immediately upon filing. The Exchange has represented that, during this partial reopening of the Trading Floor to DMMs, each DMM unit may choose to return only a limited number of staff to the Trading Floor. The Exchange believes that the proposed rule change to widen temporarily the Applicable Price Range specified in Rules 7.35A(d)(3)(A) and (B) the would promote fair and orderly auctions during this period because it would reduce potential burdens on the subset of DMM staff available to facilitate Auctions manually, while at the same time preserving pre-opening indications for securities with significant price movement.19 The Exchange has also represented that, to halt the spread of the COVID–19, many such DMM units, as part of their business continuity plans, have instituted remote working arrangements for their off-Floor offices, thereby limiting or eliminating the availability of persons in DMMs’ off-Floor offices 15 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its 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 Commission has waived this requirement. 17 17 CFR 240.19b–4(f)(6). 18 17 CFR 240.19b–4(f)(6)(iii). 19 The Exchange has stated that it has the authority to implement the proposed Applicable Price Range under Rule 7.35A(d)(3)(B) if the Exchange determined that it is necessary or appropriate for the maintenance of a fair and orderly market. The Exchange believes it would promote transparency to specify in its rules that such widened Applicable Price Range would be in effect during this temporary period, instead of implementing the widened Applicable Price Range on a day-to-day basis under Rule 7.35A(d)(3)(B). 16 17 E:\FR\FM\23JNN1.SGM 23JNN1 jbell on DSKJLSW7X2PROD with NOTICES Federal Register / Vol. 85, No. 121 / Tuesday, June 23, 2020 / Notices ordinarily reachable using the landbased telephone lines located in the DMM units’ post locations on the Trading Floor. The Exchange believes that allowing DMMs to use the telephone lines at their trading posts to communicate with off-Floor personnel working remotely would ensure continuity in DMM operations and enable DMMs to communicate with DMM staff in order to conduct their regular business and facilitate fair and orderly markets in DMM securities. The Exchange has also represented that, to accommodate health-focused considerations and social distancing, DMMs would be precluded from accepting verbal bids and offers from Floor brokers during this phase of the reopening, which would effectively bar Floor Broker Interest from participating in Closing Auctions under Rule 7.35B or engaging in the crossing orders under Rule 76; the Exchange believes that noting this effect in its rules would promote transparency. The Exchange believes that waiving the operative delay for the proposed rule changes would be consistent with the protection of investors and the public interest because DMM units may choose to return to the Trading Floor with reduced staff beginning on June 17, 2020, and at least one DMM unit has notified the Exchange that they will be present on the Trading Floor on that day. The Exchange believes that a waiver of the operative delay would provide it with the ability to implement the rule changes immediately to support the second phase of the reopening of the Trading Floor to reduced staff of the DMM units. The Commission notes that the proposed rule changes appear to be designed to address a limited, partial reopening scenario where, due to health and social distancing considerations, only a subset of DMM staff would be allowed on the Trading Floor (while many of their off-Floor personnel would continue working remotely), and DMMs would be precluded from accepting verbal bids and offers from Floor Brokers. The Commission also notes that the proposal is a temporary measure designed to respond to current, unprecedented market and health conditions, and would end on the earlier of a full reopening of the Trading Floor facilities to DMMs or after the Exchange closes on June 30, 2020. 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 VerDate Sep<11>2014 17:17 Jun 22, 2020 Jkt 250001 designates the proposal operative upon filing.20 At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) 21 of the Act 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 rule-comments@ sec.gov. Please include File Number SR– NYSE–2020–52 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–2020–52. 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, 20 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). 21 15 U.S.C. 78s(b)(2)(B). PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 37715 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–2020–52 and should be submitted on or before July 14, 2020. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.22 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–13437 Filed 6–22–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–89081; File No. SR–C2– 2020–007] Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 6.4 To Conform the Rule to Section 3.1 of the Plan for the Purpose of Developing and Implementing Procedures Designed To Facilitate the Listing and Trading of Standardized Options and Add New Rule 6.4(c) June 17, 2020. 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 June 11, 2020, Cboe C2 Exchange, Inc. (the ‘‘Exchange’’ or ‘‘C2’’) 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 ‘‘non-controversial’’ 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. 22 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 E:\FR\FM\23JNN1.SGM 23JNN1

Agencies

[Federal Register Volume 85, Number 121 (Tuesday, June 23, 2020)]
[Notices]
[Pages 37712-37715]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13437]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89086; File No. SR-NYSE-2020-52]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Add, for a Temporary Period That Begins on June 17, 2020, Commentary 
.06 to Rule 7.35A; Commentary .03 to Rule 7.35B; Supplementary Material 
.20 to Rule 76; and an Amendment to Supplementary Material .30 to Rule 
36 To Support the Partial Return of Designated Market Makers to the 
Trading Floor

June 17, 2020.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that on June 16, 2020, New York Stock Exchange LLC (``NYSE'' or 
the ``Exchange'') 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 self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 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 add, for a temporary period that begins on 
June 17, 2020, and ends on the earlier of a full reopening of the 
Trading Floor facilities to DMMs or after the Exchange closes on June 
30, 2020, (1) Commentary .06 to Rule 7.35A; (2) Commentary .03 to Rule 
7.35B; (3) Supplementary Material .20 to Rule 76; and (4) an amendment 
to Supplementary Material .30 to Rule 36. 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to add, for a temporary period that begins on 
June 17, 2020, and ends on the earlier of a full reopening of the 
Trading Floor facilities to DMMs or after the Exchange closes on June 
30, 2020, (1) Commentary .06 to Rule 7.35A; (2) Commentary .03 to Rule 
7.35B; (3) Supplementary Material .20 to Rule 76; and (4) an amendment 
to Supplementary Material .30 to Rule 36. This temporary rule relief 
will support the partial return of Designated Market Makers (``DMMs'') 
to the Trading Floor.

Background

    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\ On May 14, 2020, the CEO of the Exchange made a 
determination under Rule 7.1(c) to reopen the Trading Floor on a 
limited basis on May 26, 2020 to a subset of Floor brokers, subject to 
safety measures designed to prevent the spread of the COVID-19 
virus.\5\ On June 15, 2020, the CEO of the Exchange made a 
determination under Rule 7.1(c) to begin the second phase of the 
Trading Floor reopening by allowing DMMs to return to on June 17, 2020, 
subject to safety measures designed to prevent the spread of COVID-
19.\6\
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    \4\ See Press Release, dated March 18, 2020, available here: 
https://ir.theice.com/press/news-details/2020/New-York-Stock-Exchange-to-Move-Temporarily-to-Fully-Electronic-Trading/default.aspx.
    \5\ See Securities Exchange Act Release No. 88933 (May 22, 2020) 
(SR-NYSE2020-47) (Notice of filing and immediate effectiveness of 
proposed rule change).
    \6\ See Trader Update, dated June 15, 2020, available here: 
https://www.nyse.com/trader-update/history#110000272018.
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    With this partial reopening of the Trading Floor to DMMs, each DMM 
unit may choose to return a limited number of staff to the Trading 
Floor. A DMM unit that chooses to return staff to the Trading Floor 
would be able to facilitate Core Open, Trading Halt, and Closing 
Auctions manually in all of the DMM unit's assigned securities, and the 
Exchange would no longer automatically run an Exchange-facilitated 
Auction for the securities assigned to that DMM unit.\7\ DMM units that 
choose to return to the Trading Floor would be provided an opportunity 
to facilitate Auctions in each of their assigned securities 
electronically, and manually facilitate any Auctions that were not 
facilitated electronically. To accommodate health-focused 
considerations and social distancing, DMMs would be precluded from 
accepting verbal bids and offers from Floor brokers during this phase 
of the reopening.
---------------------------------------------------------------------------

    \7\ Unless and until a DMM unit chooses to return staff to the 
Trading Floor, the Exchange will continue to automatically 
facilitate any Auctions assigned to that remote-based DMM unit that 
were not electronically-facilitated by that DMM unit. The Exchange 
will publish a daily list on its website of those securities that 
will be ineligible for manual auctions conducted from the Floor.
---------------------------------------------------------------------------

    The temporary relief described in Commentaries to Rules 7.35, 
7.35A, 7.35B, and 7.35C would continue to be available during the 
second phase of the partial reopening of the Trading Floor to support 
not only DMM units that have chosen not to return to the Trading Floor, 
but also to support DMM units that would be returning to the Trading 
Floor with only a subset of staff.
Proposed Rule Change
    To support DMM units that choose to return to the Trading Floor 
with reduced staff, the Exchange proposes additional temporary rule 
relief that would be in effect beginning on June 17, 2020, and ends on 
the earlier of a full reopening of the Trading Floor facilities to DMMs 
or after the Exchange closes on June 30, 2020.
    First, as noted above, if a DMM unit chooses to return to the 
Trading Floor, that DMM unit would be expected to manually facilitate 
any Auctions in its assigned securities that it was not able to 
facilitate electronically, including publishing pre-opening indications 
pursuant to Rule 7.35A(d).\8\ However,

[[Page 37713]]

because such DMM units would have reduced staff on the Trading Floor, 
the Exchange proposes that for this temporary period, the Applicable 
Price Range used to determine whether to publish a pre-opening 
indication would be widened to 10% for securities with an Indication 
Reference Price higher than $3.00 and $0.30 for securities with an 
Indication Reference Price equal to or lower than $3.00. The Exchange 
further proposes to temporarily suspend the Applicable Price Range 
currently specified in Rules 7.35A(d)(3)(A) and (B). The Exchange 
believes that this proposed rule change would promote fair and orderly 
auctions during this temporary period because it would reduce potential 
burdens on the subset of DMM staff available to facilitate Auctions 
manually, while at the same time preserving pre-opening indications for 
securities with significant price movement.
---------------------------------------------------------------------------

    \8\ Rule 7.35A(d) sets forth the requirements relating to pre-
opening indications, which a DMM will publish before a security 
opens or reopens if the Core Open or Trading Halt Auction Price is 
anticipated to be a change of more than the ``Applicable Price 
Range,'' as specified in Rule 7.35A(d)(2), from a specified 
``Indication Reference Price,'' as specified in Rule 7.35A(d)(2). 
Under Rule 7.35A(d)(3)(A), the Applicable Price Range is 5% for 
securities with an Indication Reference Price over $3.00 and $0.15 
for securities with an Indication Reference Price equal to or lower 
than $3.00. If as of 9:00 a.m., the E-mini S&P 500 Futures are +/- 
2% from the prior day's closing price of the E-mini S&P 500 Futures, 
when reopening trading following a market-wide trading halt under 
Rule 7.12, or if the Exchange determined that it is necessary or 
appropriate for the maintenance of a fair and orderly market, the 
Applicable Price Range for determining whether to publish a pre-
opening indication will be 10% for securities with an Indication 
Reference Price over $3.00 and $0.15 for securities with an 
Indication Reference Price equal to or lower than $3.00. See Rule 
7.35A(d)(3)(B).
---------------------------------------------------------------------------

    To effect this change, the Exchange proposes to add Commentary .06 
to Rule 7.35A as follows:

    For a temporary period that begins on June 17, 2020 and ends on 
the earlier of a full reopening of the Trading Floor facilities to 
DMMs or after the Exchange closes on June 30, 2020, the Applicable 
Price Range specified in paragraphs (d)(3)(A) and (B) of this Rule 
is suspended and the Applicable Price Range will be 10% for 
securities with an Indication Reference Price higher than $3.00 and 
$0.30 for securities with an Indication Reference Price equal to or 
lower than $3.00.

    Second, because DMMs would be precluded from accepting verbal bids 
and offers from Floor brokers during this temporary period while the 
Trading Floor is open to only a subset of staff from DMM units that 
choose to return to the Trading Floor, the Exchange proposes to add 
temporary rules specifying that Floor Broker Interest \9\ would not be 
available for Closing Auctions and ``crossing'' orders pursuant to Rule 
76, including the Cross Function specified in Supplementary Material 
.10 to Rule 76, would not be available to Floor brokers.
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    \9\ For purposes of Auctions under the Rule 7.35 Series, the 
term ``Floor Broker Interest'' means orders represented orally by a 
Floor broker at the point of sale. See Rule 7.35(a)(9). Floor Broker 
Interest that has been electronically accepted by the DMM is 
eligible to participate in the Closing Auction. See Rule 
7.35B(a)(1).
---------------------------------------------------------------------------

    To effect this change, the Exchange proposes to add Commentary .03 
to Rule 7.35B as follows:

    For a temporary period that begins on June 17, 2020 and ends on 
the earlier of a full reopening of the Trading Floor facilities to 
DMMs or after the Exchange closes on June 30, 2020, Floor Broker 
Interest will not be eligible to participate in the Closing Auction.

    The Exchange also proposes to add Supplementary Material .20 to 
Rule 76 as follows:

    For a temporary period that begins on June 17, 2020 and ends on 
the earlier of a full reopening of the Trading Floor facilities to 
DMMs or after the Exchange closes on June 30, 2020, the availability 
of ``crossing''' orders as described in this Rule, including the 
Cross Function as specified in Supplementary Material .10 to this 
Rule, will be suspended.

    Third, although a DMM unit may choose to return to the Trading 
Floor beginning on June, 17, 2020, such DMM units may have implemented, 
and continue to follow, remote working arrangements to halt the spread 
of the COVID-19. Specifically, as part of their business continuity 
plans, DMM units have instituted remote working arrangements for their 
off-Floor offices, thereby limiting or eliminating the availability of 
persons in DMMs' off-Floor offices ordinarily reachable using the land-
based telephone lines located in the DMM units' post locations on the 
Trading Floor.\10\ To provide DMMs with flexibility to communicate with 
staff of the DMM unit that are not assigned to the Trading Floor, but 
who are temporarily working remotely, the Exchange proposes to permit 
DMMs to use telephones installed at the DMM unit trading post to 
communicate with DMM unit personnel working in locations other than the 
off-Floor offices of the DMM unit. This temporary rule relief would be 
subject to the DMM unit providing the telephone numbers of such off-
Floor personnel to the Exchange in advance.
---------------------------------------------------------------------------

    \10\ Rule 36.30 provides that, with the approval of the 
Exchange, a DMM unit may maintain a telephone line at its stock 
trading post location to the off-Floor offices of the DMM unit, the 
unit's clearing firm, or to persons providing non-trading related 
services. Such telephone connection shall not be used for the 
purpose of transmitting to the Floor orders for the purchase or sale 
of securities. Communications by DMM staff on the Trading Floor are 
governed by Rule 98.
---------------------------------------------------------------------------

    To effect this change, the Exchange proposes a new paragraph to 
Supplementary Material .30 to Rule 36 as follows:

    For a temporary period that begins on June 17, 2020 and ends on 
the earlier of the full reopening of the Trading Floor facilities to 
DMMs or after the Exchange closes on June 30, 2020, a DMM unit may 
maintain a telephone line at its trading post location to 
communicate with DMM unit personnel working in locations other than 
the off-Floor offices of the DMM unit, provided that the telephone 
numbers of such persons are provided to the Exchange in advance.

    The Exchange would be able to implement the proposed rule change 
immediately upon effectiveness of this proposed rule change.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\11\ in general, and furthers the objectives of Section 6(b)(5) of 
the Act,\12\ 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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    To reduce the spread of COVID-19, 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. On May 14, 2020, the CEO of the Exchange made a 
determination under Rule 7.1(c)(3) that, beginning May 26, 2020, the 
Trading Floor would be partially reopened to allow a subset of Floor 
brokers to return to the Trading Floor. And on June 15, 2020, the CEO 
of the Exchange made a determination under Rule 7.1(c)(3) that, 
beginning June 17, 2020, the Trading Floor would be partially reopened 
to allow a subset of DMMs to return to the Trading Floor.
    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 they are designed to support the 
return of DMMs to the Trading Floor, who would be operating with 
reduced staff. The Exchange believes that the

[[Page 37714]]

proposed rule change to add Commentary .06 to Rule 7.35A would promote 
fair and orderly markets because it would widen the Applicable Price 
Range for pre-opening indications during the temporary period when the 
Trading Floor has been reopened to a subset of DMMs. This proposed rule 
change will reduce potential burdens on the subset of DMM staff 
available to facilitate Auctions manually, while at the same time 
preserving pre-opening indications for securities with significant 
price movement. The Exchange notes that it has the authority to 
implement the proposed Applicable Price Range under Rule 7.35A(d)(3)(B) 
if the Exchange determined that it is necessary or appropriate for the 
maintenance of a fair and orderly market. The Exchange believes it 
would promote transparency to specify that such widened Applicable 
Price Range would be in effect during this temporary period, instead of 
implementing the widened Applicable Price Range on a day-to-day basis 
under Rule 7.35A(d)(3)(B).
    The Exchange further believes that proposed Commentary .03 to Rule 
7.35B and Supplementary Material .20 to Rule 76 would remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system because they would promote transparency that 
Floor Broker Interest, as defined in Rule 7.35(a)(9), and crossing 
orders, as defined in Rule 76, would not be available to Floor brokers 
during the temporary period when the DMMs who choose to return to the 
Trading Floor are operating with reduced staff.
    Finally, the Exchange believes that the proposed amendment to Rule 
36 would remove impediments to and perfect the mechanism of a free and 
open market and a national market system by continuing to facilitate 
permitted communications between DMMs and their off-Floor personnel 
notwithstanding the remote working arrangements implemented by DMM 
units for their off-Floor offices. The Exchange believes that DMMs 
using the telephone lines at their trading posts to communicate with 
off-Floor personnel working remotely would ensure continuity in DMM 
operations and enable DMMs to communicate with DMM staff in order to 
conduct their regular business and facilitate fair and orderly markets 
in DMM securities. The Exchange further believes that without the 
requested relief, DMMs could be compromised in their ability to conduct 
their regular course of business on the Trading Floor, which would 
adversely impact the market generally and investor confidence. In 
particular, any inability for DMMs to communicate with personnel from 
their off-Floor offices permitted under Rule 98 regardless of where 
such off-Floor personnel may be located during the pandemic, could 
compromise DMM units' ability to meet their obligations, particularly 
if a DMM unit experiences issues with connectivity or its algorithms.
    In addition, the proposed temporary rule would require DMM units to 
provide the telephone numbers of the permitted contacts working 
remotely. This additional safeguard would provide the Exchange with 
information that may be important to determining whether DMM units are 
only communicating with personnel from their off-Floor offices in a 
manner permitted under Rule 98.
    The Exchange believes that, by clearly stating that this relief 
would be in effect through the earlier of a full reopening of the 
Trading Floor facilities to DMMs or the close of the Exchange on June 
30, 2020, market participants would have advance notice of the 
temporary period during which these proposed rule changes would be in 
effect.

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. These proposed rule changes 
are not designed to address any competitive issues but rather to 
support the partial reopening of the Trading Floor to DMM units that 
choose to return to the Trading Floor with reduced staff for a 
temporary period that begins on June 17, 2020 and ends on the earlier 
of a full reopening of the Trading Floor facilities to DMMs or after 
the Exchange closes on June 30, 2020.

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 \13\ and Rule 19b-4(f)(6) thereunder.\14\ 
Because the foregoing proposed rule change does not (i) significantly 
affect the protection of investors or the public interest; (ii) impose 
any significant burden on competition; and (iii) become operative for 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, it has become effective pursuant to 
Section 19(b)(3)(A)(iii) of the Act \15\ and subparagraph (f)(6) of 
Rule 19b-4 thereunder.\16\
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    \13\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its 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 Commission has waived this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\18\ 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 proposal 
may become operative immediately upon filing.
---------------------------------------------------------------------------

    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The Exchange has represented that, during this partial reopening of 
the Trading Floor to DMMs, each DMM unit may choose to return only a 
limited number of staff to the Trading Floor. The Exchange believes 
that the proposed rule change to widen temporarily the Applicable Price 
Range specified in Rules 7.35A(d)(3)(A) and (B) the would promote fair 
and orderly auctions during this period because it would reduce 
potential burdens on the subset of DMM staff available to facilitate 
Auctions manually, while at the same time preserving pre-opening 
indications for securities with significant price movement.\19\ The 
Exchange has also represented that, to halt the spread of the COVID-19, 
many such DMM units, as part of their business continuity plans, have 
instituted remote working arrangements for their off-Floor offices, 
thereby limiting or eliminating the availability of persons in DMMs' 
off-Floor offices

[[Page 37715]]

ordinarily reachable using the land-based telephone lines located in 
the DMM units' post locations on the Trading Floor. The Exchange 
believes that allowing DMMs to use the telephone lines at their trading 
posts to communicate with off-Floor personnel working remotely would 
ensure continuity in DMM operations and enable DMMs to communicate with 
DMM staff in order to conduct their regular business and facilitate 
fair and orderly markets in DMM securities. The Exchange has also 
represented that, to accommodate health-focused considerations and 
social distancing, DMMs would be precluded from accepting verbal bids 
and offers from Floor brokers during this phase of the reopening, which 
would effectively bar Floor Broker Interest from participating in 
Closing Auctions under Rule 7.35B or engaging in the crossing orders 
under Rule 76; the Exchange believes that noting this effect in its 
rules would promote transparency. The Exchange believes that waiving 
the operative delay for the proposed rule changes would be consistent 
with the protection of investors and the public interest because DMM 
units may choose to return to the Trading Floor with reduced staff 
beginning on June 17, 2020, and at least one DMM unit has notified the 
Exchange that they will be present on the Trading Floor on that day. 
The Exchange believes that a waiver of the operative delay would 
provide it with the ability to implement the rule changes immediately 
to support the second phase of the reopening of the Trading Floor to 
reduced staff of the DMM units.
---------------------------------------------------------------------------

    \19\ The Exchange has stated that it has the authority to 
implement the proposed Applicable Price Range under Rule 
7.35A(d)(3)(B) if the Exchange determined that it is necessary or 
appropriate for the maintenance of a fair and orderly market. The 
Exchange believes it would promote transparency to specify in its 
rules that such widened Applicable Price Range would be in effect 
during this temporary period, instead of implementing the widened 
Applicable Price Range on a day-to-day basis under Rule 
7.35A(d)(3)(B).
---------------------------------------------------------------------------

    The Commission notes that the proposed rule changes appear to be 
designed to address a limited, partial reopening scenario where, due to 
health and social distancing considerations, only a subset of DMM staff 
would be allowed on the Trading Floor (while many of their off-Floor 
personnel would continue working remotely), and DMMs would be precluded 
from accepting verbal bids and offers from Floor Brokers. The 
Commission also notes that the proposal is a temporary measure designed 
to respond to current, unprecedented market and health conditions, and 
would end on the earlier of a full reopening of the Trading Floor 
facilities to DMMs or after the Exchange closes on June 30, 2020. 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.\20\
---------------------------------------------------------------------------

    \20\ 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 such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \21\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \21\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-2020-52 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-2020-52. 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-2020-52 and should be submitted on 
or before July 14, 2020.
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    \22\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-13437 Filed 6-22-20; 8:45 am]
BILLING CODE 8011-01-P
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