Self-Regulatory Organizations; New York Stock Exchange LLC; Order Granting Approval of a Proposed Rule Change of New Rules Providing for the Registration and Obligations of Non-DMM Market Makers, 24909-24911 [2021-09775]
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Federal Register / Vol. 86, No. 88 / Monday, May 10, 2021 / Notices
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Scheduled Time, Web Call Joined Time,
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Web Call Join Status, Number Of
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24909
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Joshua J. Hofer,
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[FR Doc. 2021–09755 Filed 5–7–21; 8:45 am]
BILLING CODE 7710–12–P
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91769; File No. SR–NYSE–
2021–08]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Granting Approval of a Proposed Rule
Change of New Rules Providing for the
Registration and Obligations of NonDMM Market Makers
May 4, 2021.
I. Introduction
On March 12, 2021, New York Stock
Exchange, Inc. (‘‘NYSE’’ or ‘‘Exchange’’)
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Federal Register / Vol. 86, No. 88 / Monday, May 10, 2021 / Notices
filed with the Securities and Exchange
Commission (‘‘Commission’’) pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 proposed new rules
providing for the registration and
obligations of Non-DMM Market
Makers. The proposed rule change was
published for comment in the Federal
Register on March 25, 2021.3 The
Commission has received no comments
on the proposed rule change. The
Commission is approving the proposed
rule change.
II. Description of the Proposed Rule
Change
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The Exchange proposes rules
governing Non-DMM Market Makers
who would be electronic, off-floor
market makers.4 Non-DMM Market
Makers would comprise a new category
of market participants on the Exchange
and would have responsibilities
different than those of Designated
Market Makers (‘‘DMMs’’) and
Supplemental Liquidity Providers
(‘‘SLPs’’).
Non-DMM Market Makers are not
intended to replace DMMs or SLPs on
the Exchange and would not assume
any of the responsibilities already
assigned to DMMs or SLPs pursuant to
Exchange Rules (for example, NonDMM Market Makers would not perform
any trading floor functions such as those
assigned to DMMs). Instead, under the
proposed rules, for all securities that
trade on the Exchange, a member
organization may register as a NonDMM Market Maker and be subject to
obligations similar to those of Market
Makers on NYSE Arca, Inc. (‘‘NYSE
Arca’’) and NYSE American LLC
(‘‘NYSE American’’) to, among other
things, maintain continuous, two-sided
trading interest in the securities in
which they are registered as a NonDMM Market Maker (‘‘Two-Sided
Obligation’’) and adhere to certain
pricing obligations.
The Exchange proposes the following
rules, based on NYSE Arca and NYSE
American rules of the same number
with non-substantive changes, to govern
the registration and obligations of NonDMM Market Makers on the NYSE:
• Proposed Rule 1.1(p) (definition of
Market Maker Authorized Trader);
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 91377
(March 19, 2021), 86 FR 15974 (March 25, 2021)
(‘‘Notice’’).
4 A ‘‘Non-DMM Market Maker’’ would be defined
as a member organization that acts as a Non-DMM
Market Maker pursuant to Rule 7P. See Notice, id.
at 15974.
2 17
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• Proposed Rule 1.1(t) (definition of
Non-DMM Market Maker);
• Proposed Rule 7.20 (Registration of
Non-DMM Market Makers);
• Proposed Rule 7.21 (Obligations of
Market Maker Authorized Traders);
• Proposed Rule 7.22 (Registration of
Non-DMM Market Makers in a
Security); and
• Proposed Rule 7.23 (Obligations of
Non-DMM Market Makers).
These proposed rules would be
applicable only to Non-DMM Market
Makers. They would not apply to DMMs
or SLPs, who would continue to be
governed by existing Exchange rules
applicable to those market participants.5
same registration requirements as
Market Makers on NYSE Arca and
NYSE American. The Exchange
proposes to require member
organizations interested in acting as
Non-DMM Market Makers to submit an
application to the Exchange. Proposed
Rule 7.20 would also set forth the
criteria the Exchange may consider in
determining whether to approve or
disapprove a prospective Non-DMM
Market Maker’s application and specify
how a Non-DMM Market Maker’s
registration may be suspended,
terminated, or withdrawn.
Proposed Rule Changes
The Exchange proposes to add Rule
7.21 and title it ‘‘Obligations of Market
Maker Authorized Traders.’’ Proposed
Rule 7.21 would provide that Market
Maker Authorized Traders (‘‘MMATs’’)
are permitted to enter orders only for
the account of the Non-DMM Market
Maker for which they are registered. In
addition, the proposed rule would
specify the registration requirements for
MMATs and the procedures for
suspension and withdrawal of
registration of MMATs. Specifically, the
proposed rule would provide that a
Non-DMM Market Maker must submit
an application to the Exchange to
register an associated person as an
MMAT. An MMAT must meet certain
requirements, and a Non-DMM Market
Maker must ensure that its MMATs are
qualified to perform market making
activities. Proposed Rule 7.21 also
provides that the Exchange may
suspend or withdraw an MMAT’s
registration.
Rule 1.1
Rule 1.1 sets forth definitions of terms
that are used throughout the Exchange
rules. The Exchange proposes to add the
following definitions to the rule:
• The Exchange proposes to amend
current Rule 1.1(p) to set forth the
definition of ‘‘Market Maker Authorized
Trader’’ or ‘‘MMAT.’’ A ‘‘Market Maker
Authorized Trader’’ or ‘‘MMAT’’ would
be defined as an Authorized Trader (as
defined in Rule 1.1(a)) who performs
market making activities pursuant to
Rule 7P on behalf of a Non-DMM
Market Maker.
• The Exchange proposes to amend
current Rule 1.1(t) to set forth the
definition of ‘‘Non-DMM Market
Maker.’’ A ‘‘Non-DMM Market Maker’’
would be defined as a member
organization that acts as a Non-DMM
Market Maker pursuant to Rule 7P.
Accordingly, for purposes of Exchange
rules, the term ‘‘Non-DMM Market
Maker’’ does not include DMMs or
SLPs.
Rule 7P, Section 2
The Exchange proposes to amend
Section 2 under Rule 7P, which is
currently designated as ‘‘Reserved,’’ and
rename it ‘‘Non-DMM Market Makers.’’
The Exchange proposes that the rules
set forth in this section would apply
only to the proposed new group of NonDMM Market Makers and would not be
applicable to DMMs or SLPs.
Rule 7.20
The Exchange proposes to add Rule
7.20 and title it ‘‘Registration of NonDMM Market Makers.’’ Proposed Rule
7.20 would set forth the requirements
for member organizations to apply for
registration as Non-DMM Market
Makers. The Exchange proposes that its
Non-DMM Market Makers have the
5 See, e.g., NYSE Rules 98, 103, 103B, 104, and
107B.
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Rule 7.21
Rule 7.22
The Exchange proposes to add Rule
7.22 and title it ‘‘Registration of NonDMM Market Makers in a Security.’’
Proposed Rule 7.22 would set forth the
process for Non-DMM Market Makers to
become registered in a security and the
factors the Exchange may consider in
approving such registration. Non-DMM
Market Makers may submit a request to
the Exchange to be registered in a
security, and the Exchange will evaluate
whether to approve such registration,
taking into consideration factors
including the Non-DMM Market
Maker’s financial resources, experience
in making markets, operational
capability, and the character of the
market for the security. Non-DMM
Market Makers will generally be
permitted to register in securities in
which a DMM and/or SLP is also
registered, subject to the Exchange’s
evaluation of the character of the market
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Federal Register / Vol. 86, No. 88 / Monday, May 10, 2021 / Notices
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for a given security.6 Finally, the
proposed rule would also describe both
termination of a Non-DMM Market
Maker’s registration in a security by the
Exchange and voluntary termination by
a Non-DMM Market Maker.
Rule 7.23
The Exchange proposes to add Rule
7.23 and title it ‘‘Obligations of NonDMM Market Makers.’’ Proposed Rule
7.23 would set forth the obligation of
Non-DMM Market Makers to engage in
a course of dealings for their own
account to assist in the maintenance,
insofar as reasonably practicable, of fair
and orderly markets on the Exchange.
The proposed rule would delineate the
specific responsibilities and duties of
Non-DMM Market Makers, including
the Two-Sided Obligation applicable to
securities in which the Non-DMM
Market Maker is registered and the
requirement that the interest satisfying
the Two-Sided Obligation be not more
than the Designated Percentage (as
defined in Proposed Rule 7.23) away
from the National Best Bid or Offer
(‘‘NBBO’’). Proposed Rule 7.23 also
provides that Non-DMM Market Makers
will be subject to certain minimum
capital requirements and sets forth the
circumstances under which a Non-DMM
Market Maker could be subject to
disciplinary action or suspension or
revocation of registration by the
Exchange for failure to comply with the
course of dealings obligations set forth
in this proposed rule.
Specifically, with respect to the TwoSided Obligation, proposed Rule
7.23(a)(1)(A) provides that Non-DMM
Market Makers would be required to
maintain displayed interest identified as
interest meeting the Two-Sided
Obligation on a continuous basis during
Core Trading Hours for those securities
in which the Non-DMM Market Maker
is registered. Proposed Rule
7.23(a)(1)(B) provides that interest
satisfying a Non-DMM Market Maker’s
Two-Sided Obligation must not be more
than the Designated Percentage away
from the then current NBBO, or if there
is no NBBO, not more than the
Designated Percentage away from the
last reported sale for that security. With
respect to minimum capital
requirements, proposed Rule 7.23(a)(2)
provides that Non-DMM Market Makers
would be required to maintain adequate
minimum capital in accordance with
Rule 15c3–1 under the Act.
6 Orders entered by Non-DMM Market Makers
will be allocated in accordance with Rules 7.36 and
7.37 and be treated as a Book Participant. NonDMM Market Makers will not be eligible to
participate in the allocation process as a DMM
Participant.
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Jkt 253001
III. Discussion and Commission
Findings
After careful consideration, the
Commission finds that the Exchange’s
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to national securities
exchanges. In particular, the
Commission finds that the Exchange’s
proposed rule change is consistent with
Section 6(b)(5) of the Act,7 which
requires that the rules of an exchange be
designed, among other things, 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.8
As described above, the Exchange
proposes to adopt rules for the
registration and obligations of NonDMM Market Makers that are
substantially comparable to NYSE Arca
and NYSE American rules. The
Exchange stated that the proposed rules
are designed to enable market makers
that are registered on the Exchange’s
affiliated markets to become registered
on the Exchange as Non-DMM Market
Makers by meeting the same registration
requirements and by agreeing to be
subject to the same obligations.9 The
Exchange represented that the proposed
Non-DMM Market Makers are not
intended to supplant existing DMMs or
SLPs or their roles on the Exchange and
Non-DMM Market Makers would not
assume any of the responsibilities
already assigned to DMMs or SLPs
pursuant to Exchange Rules.10
According to the Exchange, the
proposed rules are intended to provide
for a new category of market maker that
the Exchange believes will promote
competition on the Exchange by
enhancing the range and diversity of
market making activity on the Exchange.
Further, the Exchange stated that the
proposal would promote competition by
encouraging additional displayed
liquidity. The Exchange also stated that
the proposal would facilitate price
7 17
U.S.C. 78f(b)(5).
approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
9 See Notice, supra note 3 at 15976.
10 While the proposed obligations for Non-DMM
Market Makers are less stringent than those for
DMMs and SLPs, the proposed rules would not
affect the existing roles or obligations of DMMs and
SLPs.
8 In
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24911
discovery and promote market quality
on the Exchange.11
The Commission believes that
introducing a new category of market
maker—Non-DMM Market Makers—
could promote competition on the
Exchange. Further the Commission
believes that the introduction of NonDMM Market Makers on the Exchange
and their obligations to the market as
required under NYSE Rule 7.23 could
provide additional, supplemental
liquidity to the market and could
enhance price discovery.
Based on the foregoing, the
Commission therefore finds that the
proposed rule change is consistent with
the Act.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change (SR–NYSE–2021–
08) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–09775 Filed 5–7–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91757; File No. SR–C2–
2021–008]
Self-Regulatory Organizations; Cboe
C2 Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Adopt a Fee Schedule
To Establish Fees for Industry
Members Related to the National
Market System Plan Governing the
Consolidated Audit Trail
May 4, 2021.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 21,
2021, Cboe C2 Exchange, Inc.
(‘‘Exchange’’ or ‘‘C2’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
11 See
id.
U.S.C. 78s(b)(2).
13 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
12 15
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]]>Agencies
[Federal Register Volume 86, Number 88 (Monday, May 10, 2021)]
[Notices]
[Pages 24909-24911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09775]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91769; File No. SR-NYSE-2021-08]
Self-Regulatory Organizations; New York Stock Exchange LLC; Order
Granting Approval of a Proposed Rule Change of New Rules Providing for
the Registration and Obligations of Non-DMM Market Makers
May 4, 2021.
I. Introduction
On March 12, 2021, New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'')
[[Page 24910]]
filed with the Securities and Exchange Commission (``Commission'')
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ proposed new rules
providing for the registration and obligations of Non-DMM Market
Makers. The proposed rule change was published for comment in the
Federal Register on March 25, 2021.\3\ The Commission has received no
comments on the proposed rule change. The Commission is approving the
proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 91377 (March 19,
2021), 86 FR 15974 (March 25, 2021) (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposed Rule Change
The Exchange proposes rules governing Non-DMM Market Makers who
would be electronic, off-floor market makers.\4\ Non-DMM Market Makers
would comprise a new category of market participants on the Exchange
and would have responsibilities different than those of Designated
Market Makers (``DMMs'') and Supplemental Liquidity Providers
(``SLPs'').
---------------------------------------------------------------------------
\4\ A ``Non-DMM Market Maker'' would be defined as a member
organization that acts as a Non-DMM Market Maker pursuant to Rule
7P. See Notice, id. at 15974.
---------------------------------------------------------------------------
Non-DMM Market Makers are not intended to replace DMMs or SLPs on
the Exchange and would not assume any of the responsibilities already
assigned to DMMs or SLPs pursuant to Exchange Rules (for example, Non-
DMM Market Makers would not perform any trading floor functions such as
those assigned to DMMs). Instead, under the proposed rules, for all
securities that trade on the Exchange, a member organization may
register as a Non-DMM Market Maker and be subject to obligations
similar to those of Market Makers on NYSE Arca, Inc. (``NYSE Arca'')
and NYSE American LLC (``NYSE American'') to, among other things,
maintain continuous, two-sided trading interest in the securities in
which they are registered as a Non-DMM Market Maker (``Two-Sided
Obligation'') and adhere to certain pricing obligations.
The Exchange proposes the following rules, based on NYSE Arca and
NYSE American rules of the same number with non-substantive changes, to
govern the registration and obligations of Non-DMM Market Makers on the
NYSE:
Proposed Rule 1.1(p) (definition of Market Maker
Authorized Trader);
Proposed Rule 1.1(t) (definition of Non-DMM Market Maker);
Proposed Rule 7.20 (Registration of Non-DMM Market
Makers);
Proposed Rule 7.21 (Obligations of Market Maker Authorized
Traders);
Proposed Rule 7.22 (Registration of Non-DMM Market Makers
in a Security); and
Proposed Rule 7.23 (Obligations of Non-DMM Market Makers).
These proposed rules would be applicable only to Non-DMM Market
Makers. They would not apply to DMMs or SLPs, who would continue to be
governed by existing Exchange rules applicable to those market
participants.\5\
---------------------------------------------------------------------------
\5\ See, e.g., NYSE Rules 98, 103, 103B, 104, and 107B.
---------------------------------------------------------------------------
Proposed Rule Changes
Rule 1.1
Rule 1.1 sets forth definitions of terms that are used throughout
the Exchange rules. The Exchange proposes to add the following
definitions to the rule:
The Exchange proposes to amend current Rule 1.1(p) to set
forth the definition of ``Market Maker Authorized Trader'' or ``MMAT.''
A ``Market Maker Authorized Trader'' or ``MMAT'' would be defined as an
Authorized Trader (as defined in Rule 1.1(a)) who performs market
making activities pursuant to Rule 7P on behalf of a Non-DMM Market
Maker.
The Exchange proposes to amend current Rule 1.1(t) to set
forth the definition of ``Non-DMM Market Maker.'' A ``Non-DMM Market
Maker'' would be defined as a member organization that acts as a Non-
DMM Market Maker pursuant to Rule 7P. Accordingly, for purposes of
Exchange rules, the term ``Non-DMM Market Maker'' does not include DMMs
or SLPs.
Rule 7P, Section 2
The Exchange proposes to amend Section 2 under Rule 7P, which is
currently designated as ``Reserved,'' and rename it ``Non-DMM Market
Makers.'' The Exchange proposes that the rules set forth in this
section would apply only to the proposed new group of Non-DMM Market
Makers and would not be applicable to DMMs or SLPs.
Rule 7.20
The Exchange proposes to add Rule 7.20 and title it ``Registration
of Non-DMM Market Makers.'' Proposed Rule 7.20 would set forth the
requirements for member organizations to apply for registration as Non-
DMM Market Makers. The Exchange proposes that its Non-DMM Market Makers
have the same registration requirements as Market Makers on NYSE Arca
and NYSE American. The Exchange proposes to require member
organizations interested in acting as Non-DMM Market Makers to submit
an application to the Exchange. Proposed Rule 7.20 would also set forth
the criteria the Exchange may consider in determining whether to
approve or disapprove a prospective Non-DMM Market Maker's application
and specify how a Non-DMM Market Maker's registration may be suspended,
terminated, or withdrawn.
Rule 7.21
The Exchange proposes to add Rule 7.21 and title it ``Obligations
of Market Maker Authorized Traders.'' Proposed Rule 7.21 would provide
that Market Maker Authorized Traders (``MMATs'') are permitted to enter
orders only for the account of the Non-DMM Market Maker for which they
are registered. In addition, the proposed rule would specify the
registration requirements for MMATs and the procedures for suspension
and withdrawal of registration of MMATs. Specifically, the proposed
rule would provide that a Non-DMM Market Maker must submit an
application to the Exchange to register an associated person as an
MMAT. An MMAT must meet certain requirements, and a Non-DMM Market
Maker must ensure that its MMATs are qualified to perform market making
activities. Proposed Rule 7.21 also provides that the Exchange may
suspend or withdraw an MMAT's registration.
Rule 7.22
The Exchange proposes to add Rule 7.22 and title it ``Registration
of Non-DMM Market Makers in a Security.'' Proposed Rule 7.22 would set
forth the process for Non-DMM Market Makers to become registered in a
security and the factors the Exchange may consider in approving such
registration. Non-DMM Market Makers may submit a request to the
Exchange to be registered in a security, and the Exchange will evaluate
whether to approve such registration, taking into consideration factors
including the Non-DMM Market Maker's financial resources, experience in
making markets, operational capability, and the character of the market
for the security. Non-DMM Market Makers will generally be permitted to
register in securities in which a DMM and/or SLP is also registered,
subject to the Exchange's evaluation of the character of the market
[[Page 24911]]
for a given security.\6\ Finally, the proposed rule would also describe
both termination of a Non-DMM Market Maker's registration in a security
by the Exchange and voluntary termination by a Non-DMM Market Maker.
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\6\ Orders entered by Non-DMM Market Makers will be allocated in
accordance with Rules 7.36 and 7.37 and be treated as a Book
Participant. Non-DMM Market Makers will not be eligible to
participate in the allocation process as a DMM Participant.
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Rule 7.23
The Exchange proposes to add Rule 7.23 and title it ``Obligations
of Non-DMM Market Makers.'' Proposed Rule 7.23 would set forth the
obligation of Non-DMM Market Makers to engage in a course of dealings
for their own account to assist in the maintenance, insofar as
reasonably practicable, of fair and orderly markets on the Exchange.
The proposed rule would delineate the specific responsibilities and
duties of Non-DMM Market Makers, including the Two-Sided Obligation
applicable to securities in which the Non-DMM Market Maker is
registered and the requirement that the interest satisfying the Two-
Sided Obligation be not more than the Designated Percentage (as defined
in Proposed Rule 7.23) away from the National Best Bid or Offer
(``NBBO''). Proposed Rule 7.23 also provides that Non-DMM Market Makers
will be subject to certain minimum capital requirements and sets forth
the circumstances under which a Non-DMM Market Maker could be subject
to disciplinary action or suspension or revocation of registration by
the Exchange for failure to comply with the course of dealings
obligations set forth in this proposed rule.
Specifically, with respect to the Two-Sided Obligation, proposed
Rule 7.23(a)(1)(A) provides that Non-DMM Market Makers would be
required to maintain displayed interest identified as interest meeting
the Two-Sided Obligation on a continuous basis during Core Trading
Hours for those securities in which the Non-DMM Market Maker is
registered. Proposed Rule 7.23(a)(1)(B) provides that interest
satisfying a Non-DMM Market Maker's Two-Sided Obligation must not be
more than the Designated Percentage away from the then current NBBO, or
if there is no NBBO, not more than the Designated Percentage away from
the last reported sale for that security. With respect to minimum
capital requirements, proposed Rule 7.23(a)(2) provides that Non-DMM
Market Makers would be required to maintain adequate minimum capital in
accordance with Rule 15c3-1 under the Act.
III. Discussion and Commission Findings
After careful consideration, the Commission finds that the
Exchange's proposed rule change is consistent with the requirements of
the Act and the rules and regulations thereunder applicable to national
securities exchanges. In particular, the Commission finds that the
Exchange's proposed rule change is consistent with Section 6(b)(5) of
the Act,\7\ which requires that the rules of an exchange be designed,
among other things, 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.\8\
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\7\ 17 U.S.C. 78f(b)(5).
\8\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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As described above, the Exchange proposes to adopt rules for the
registration and obligations of Non-DMM Market Makers that are
substantially comparable to NYSE Arca and NYSE American rules. The
Exchange stated that the proposed rules are designed to enable market
makers that are registered on the Exchange's affiliated markets to
become registered on the Exchange as Non-DMM Market Makers by meeting
the same registration requirements and by agreeing to be subject to the
same obligations.\9\ The Exchange represented that the proposed Non-DMM
Market Makers are not intended to supplant existing DMMs or SLPs or
their roles on the Exchange and Non-DMM Market Makers would not assume
any of the responsibilities already assigned to DMMs or SLPs pursuant
to Exchange Rules.\10\ According to the Exchange, the proposed rules
are intended to provide for a new category of market maker that the
Exchange believes will promote competition on the Exchange by enhancing
the range and diversity of market making activity on the Exchange.
Further, the Exchange stated that the proposal would promote
competition by encouraging additional displayed liquidity. The Exchange
also stated that the proposal would facilitate price discovery and
promote market quality on the Exchange.\11\
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\9\ See Notice, supra note 3 at 15976.
\10\ While the proposed obligations for Non-DMM Market Makers
are less stringent than those for DMMs and SLPs, the proposed rules
would not affect the existing roles or obligations of DMMs and SLPs.
\11\ See id.
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The Commission believes that introducing a new category of market
maker--Non-DMM Market Makers--could promote competition on the
Exchange. Further the Commission believes that the introduction of Non-
DMM Market Makers on the Exchange and their obligations to the market
as required under NYSE Rule 7.23 could provide additional, supplemental
liquidity to the market and could enhance price discovery.
Based on the foregoing, the Commission therefore finds that the
proposed rule change is consistent with the Act.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\12\ that the proposed rule change (SR-NYSE-2021-08) be, and hereby
is, approved.
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\12\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-09775 Filed 5-7-21; 8:45 am]
BILLING CODE 8011-01-P
