Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Temporary Period for Specified Commentaries to Rules 7.35, 7.35A, 7.35B, and 7.35C and Temporary Rule Relief in Rule 36.30, 25902-25905 [2021-09886]
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Federal Register / Vol. 86, No. 89 / Tuesday, May 11, 2021 / Notices
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[FR Doc. 2021–09754 Filed 5–10–21; 8:45 am]
BILLING CODE P
Paper records, computers, and
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17:13 May 10, 2021
Jkt 253001
[Release No. 34–91778; File No. SR–NYSE–
2021–29]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Extend the
Temporary Period for Specified
Commentaries to Rules 7.35, 7.35A,
7.35B, and 7.35C and Temporary Rule
Relief in Rule 36.30
May 5, 2021.
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 April 26,
2021, 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, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend the
temporary period for specified
Commentaries to Rules 7.35, 7.35A,
7.35B, and 7.35C and temporary rule
relief in Rule 36.30, to end on the earlier
of a full reopening of the Trading Floor
facilities to DMMs or after the Exchange
closes on August 31, 2021. 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
ADMINISTRATIVE, TECHNICAL, AND PHYSICAL
SAFEGUARDS:
VerDate Sep<11>2014
SECURITIES AND EXCHANGE
COMMISSION
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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 86, No. 89 / Tuesday, May 11, 2021 / Notices
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 extend the
temporary period for specified
Commentaries to Rules 7.35, 7.35A,
7.35B, and 7.35C and temporary rule
relief to Rule 36.30, to end on the earlier
of a full reopening of the Trading Floor
facilities to DMMs or after the Exchange
closes on August 31, 2021. The current
temporary period that these Rules are in
effect ends on the earlier of a full
reopening of the Trading Floor facilities
to DMMs or after the Exchange closes on
April 30, 2021.
Background
To slow the spread of COVID–19
through social-distancing measures, 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)(3) 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
COVID–19.5 On June 15, 2020, the CEO
of the Exchange made a determination
under Rule 7.1(c)(3) to begin the second
phase of the Trading Floor reopening by
allowing DMMs to return on June 17,
2020, subject to safety measures
designed to prevent the spread of
COVID–19.6 Consistent with these
safety measures, both DMMs and Floor
broker firms continue to operate with
reduced staff on the Trading Floor.
Proposed Rule Change
The Exchange has modified its rules
to add Commentaries to Rules 7.35,
4 Pursuant to Rule 7.1(e), the CEO notified the
Board of Directors of the Exchange of this
determination. The Exchange’s current rules
establish how the Exchange will function fullyelectronically. 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/2020/03-18-2020204202110.
5 See Securities Exchange Act Release No. 88933
(May 22, 2020), 85 FR 32059 (May 28, 2020) (SR–
NYSE–2020–47) (Notice of filing and immediate
effectiveness of proposed rule change).
6 See Securities Exchange Act Release No. 89086
(June 17, 2020) (SR–NYSE–2020–52) (Notice of
filing and immediate effectiveness of proposed rule
change).
VerDate Sep<11>2014
17:13 May 10, 2021
Jkt 253001
7.35A, 7.35B, and 7.35C and rule relief
in Rule 36.30 7 that are in effect until the
earlier of a full reopening of the Trading
Floor facilities to DMMs or after the
Exchange closes on April 30, 2021.8
The first and second phases of the
reopening of the Trading Floor are
7 See Securities Exchange Act Release Nos. 88413
(March 18, 2020), 85 FR 16713 (March 24, 2020)
(SR–NYSE–2020–19) (amending Rule 7.35C to add
Commentary .01); 88444 (March 20, 2020), 85 FR
17141 (March 26, 2020) (SR–NYSE–2020–22)
(amending Rules 7.35A to add Commentary .01,
7.35B to add Commentary .01, and 7.35C to add
Commentary .02); 88488 (March 26, 2020), 85 FR
18286 (April 1, 2020) (SR–NYSE–2020–23)
(amending Rule 7.35A to add Commentary .02);
88546 (April 2, 2020), 85 FR 19782 (April 8, 2020)
(SR–NYSE–2020–28) (amending Rule 7.35A to add
Commentary .03); 88562 (April 3, 2020), 85 FR
20002 (April 9, 2020) (SR–NYSE–2020–29)
(amending Rule 7.35C to add Commentary .03);
88705 (April 21, 2020), 85 FR 23413 (April 27,
2020) (SR–NYSE–2020–35) (amending Rule 7.35A
to add Commentary .04); 88725 (April 22, 2020), 85
FR 23583 (April 28, 2020) (SR–NYSE–2020–37)
(amending Rule 7.35 to add Commentary .01);
88950 (May 26, 2020), 85 FR 33252 (June 1, 2020)
(SR–NYSE–2020–48) (amending Rule 7.35A to add
Commentary .05); 89059 (June 12, 2020), 85 FR
36911 (June 18, 2020) (SR–NYSE–2020–50)
(amending Rule 7.35C to add Commentary .04);
89086 (June 17, 2020), 85 FR 37712 (SR–NYSE–
2020–52) (amending Rules 7.35A to add
Commentary .06, 7.35B to add Commentary .03, 76
to add Supplementary Material 20, and
Supplementary Material .30 to Rule 36); 89925
(September 18, 2020) (SR–NYSE–2020–75)
(amending Rule 7.35 to add Commentary .02); and
90810 (December 29, 2020), 86 FR 335 (January 5,
2021) (SR–NYSE–2020–109) (amending Rule 7.35A
to add Commentary .07).
8 See Securities Exchange Act Release No. 90795
(December 23, 2020), 85 FR 86608 (December 30,
2020) (SR–NYSE–2020–106) (Notice of filing and
immediate effectiveness of proposed rule change to
extend the temporary period for specified
Commentaries to Rules 7.35, 7.35A, 7.35B, and
7.35C and temporary rule relief in Rule 36.30 to end
on the earlier of a full reopening of the Trading
Floor facilities to DMMs or after the Exchange
closes on April 30, 2021). See also Securities
Exchange Act Release Nos. 90005 (September 25,
2020), 85 FR 61999 (October 2020) (SR–NYSE–
2020–78) (Notice of filing and immediate
effectiveness of proposed rule change to extend the
temporary period for specified Commentaries to
Rules 7.35, 7.35A, 7.35B, and 7.35C and temporary
rule relief in Rule 36.30 to end on the earlier of a
full reopening of the Trading Floor facilities to
DMMs or after the Exchange closes on December 31,
2020); 89425 (July 30, 2020), 85 FR 47446 (August
5, 2020) (SR–NYSE–2020–63) (Notice of filing and
immediate effectiveness of proposed rule change to
extend the temporary period for Commentaries to
Rules 7.35, 7.35A, 7.35B, and 7.35C and temporary
rule relief in Rule 36.30 to end on the earlier of a
full reopening of the Trading Floor facilities to
DMMs or after the Exchange closes on September
30, 2020); 89199 (June 30, 2020), 85 FR 40718 (July
7, 2020) (SR–NYSE–2020–56) (Notice of filing and
immediate effectiveness of proposed rule change to
extend the temporary period for Commentaries to
Rules 7.35, 7.35A, 7.35B, and 7.35C; Supplementary
Material .20 to Rule 76; and temporary rule relief
in Rule 36.30 to end on the earlier of a full
reopening of the Trading Floor facilities to DMMs
or after the Exchange closes on July 31, 2020); and
89368 (July 21, 2020), 85 FR 45272 (July 27, 2020)
(SR–NYSE–2020–61) (Notice of filing and
immediate effectiveness of proposed rule change to
lift the temporary suspension to Rule 76 and delete
Supplementary Material .20 to Rule 76).
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25903
subject to safety measures designed to
prevent the spread of COVID–19. To
meet these safety measures, Floor
brokers and DMM units that have
chosen to return to the Trading Floor are
operating with reduced staff. The
Exchange is therefore proposing to
extend the following temporary rules
until such time that there is a full
reopening of the Trading Floor facilities
to DMMs:
• Commentaries .01 and .02 to Rule
7.35; 9
• Commentaries .01, .02, .03, .04, .05,
.06, and .07 to Rule 7.35A;
• Commentaries .01 and .03 to Rule
7.35B;
• Commentaries .01, .02, .03, and .04
to Rule 7.35C; and
• Amendments to Rule 36.30.
The Exchange is not proposing any
substantive changes to these Rules.
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.
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 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. On June 15, 2020,
the CEO made a determination under
Rule 7.1(c)(3) that, beginning June 17,
9 Because DMMs are not obligated to return to a
Floor, an IPO Auction may still be conducted by a
DMM remotely as provided for in Commentary .04
to Rule 7.35A. If a DMM chooses to conduct an IPO
Auction remotely, Floor brokers on the Trading
Floor will not have access to IPO Auction
imbalance information. The Exchange proposed a
non-substantive change to Commentary .02 to Rule
7.35 to change the start date of that Commentary
from September 20, 2020 to September 4, 2020,
which is consistent with the date represented in the
proposed rule change adopting that Commentary.
See Securities Exchange Act Release No. 89925
(September 18, 2020) (SR–NYSE–2020–75)
(amending Rule 7.35 to add Commentary .02).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
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Federal Register / Vol. 86, No. 89 / Tuesday, May 11, 2021 / Notices
2020, DMM units may choose to return
a subset of staff 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
the Trading Floor has not yet reopened
in full to DMMs or Floor brokers.
Accordingly, the Exchange believes that
the temporary rule changes in effect
pursuant to the Commentaries to Rules
7.35, 7.35A, 7.35B, and 7.35C and
amendments to Rule 36.30, which are
intended to be in effect during the
temporary period while the Trading
Floor has not yet opened in full to
DMMs, should be extended until such
time that there is a full reopening of the
Trading Floor facilities to DMMs. The
Exchange is not proposing any
substantive changes to these Rules.
The Exchange believes that, by clearly
stating that this relief will be in effect
through the earlier of a full reopening of
the Trading Floor facilities to DMMs or
the close of the Exchange on August 31,
2021, market participants will have
advance notice of the temporary period
during which the Commentaries to
Rules 7.35, 7.35A, 7.35B, and 7.35C and
amendments to Rule 36.30 will 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. The
proposed rule change is not designed to
address any competitive issues but
rather would extend the period during
which Commentaries .01 and .02 to Rule
7.35; Commentaries .01, .02, .03, .04, 05,
.06, and .07 to Rule 7.35A;
Commentaries .01 and .03 to Rule 7.35B;
Commentaries .01, .02, .03, and .04 to
Rule 7.35C; and amendments to Rule
36.30 will be in effect. These
Commentaries are intended to be in
effect during the temporary period
while the Trading Floor has not yet been
opened in full to DMMs and Floor
brokers and currently expire on April
30, 2021. Because the Trading Floor has
not been opened in full to DMMs, the
Exchange proposes to extend the
temporary period for these temporary
rules to end on the earlier of a full
reopening of the Trading Floor facilities
to DMMs or after the Exchange closes on
August 31, 2021.
VerDate Sep<11>2014
17:13 May 10, 2021
Jkt 253001
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
prior to 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)(iii) of the Act 14 and Rule
19b–4(f)(6)(iii) thereunder.15
A proposed rule change filed under
Rule 19b–4(f)(6) 16 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(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 proposal may take effect
immediately. The Commission believes
that waiver of the operative delay is
consistent with the protection of
investors and the public interest
because it will allow the rules discussed
above to remain in effect during the
temporary period during which the
Trading Floor has not yet been reopened
in full to DMMs because of health
precautions related to the Covid-19
pandemic. Accordingly, the
Commission hereby waives the 30-day
operative delay and designates the
proposal operative upon filing.18
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)(iii).
15 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 Exchange
has fulfilled this requirement.
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6)(iii).
18 For purposes only of accelerating the operative
date of this proposal, the Commission has
13 17
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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) 19 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–2021–29 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–2021–29. 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
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
19 15 U.S.C. 78s(b)(2)(B).
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Federal Register / Vol. 86, No. 89 / Tuesday, May 11, 2021 / Notices
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSE–2021–29 and should
be submitted on or before June 1, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–09886 Filed 5–10–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91779; File No. SR–
NYSEAMER–2021–05]
Self-Regulatory Organizations; NYSE
American, LLC.; Order Granting
Approval of a Proposed Rule Change,
as Modified by Amendment No. 1, To
Amend Rule 970NY and Rule 970.1NY
To Eliminate the Use of Dark Series on
the Exchange
May 5, 2021.
I. Introduction
On January 26, 2021, NYSE American,
LLC (‘‘NYSE American’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend Rule 970NY (‘‘Firm Quotes’’)
and Rule 970.1NY (‘‘Quote Mitigation’’)
to eliminate the use of ‘‘dark’’ series on
the Exchange. The proposed rule change
was published for comment in the
Federal Register on February 8, 2021.3
On March 18, 2021, pursuant to Section
19(b)(2) of the Act,4 the Commission
designated a longer period within which
to approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether to approve or disapprove the
proposed rule change.5 On April 27,
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 91039
(February 2, 2021), 86 FR 8659 (‘‘Notice’’).
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 91355,
86 FR 15733 (March 24, 2021). The Commission
1 15
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17:13 May 10, 2021
Jkt 253001
2021, the Exchange filed Amendment
No. 1 to the proposed rule change.6 The
Commission received no comment
letters on the proposal. This order
approves the proposed rule change, as
modified by Amendment No. 1.
II. Description of the Proposed Rule
Change, as Modified by Amendment
No. 1
Currently, NYSE American Rule
970NY (‘‘Firm Quotes’’) requires the
Exchange to collect, process, and make
available to quotation vendors the best
bid and best offer for each option series
that is a reported security unless the
series is subject to an approved quote
mitigation plan.7 Pursuant to the quote
mitigation plan set forth in NYSE
American Rule 970.1NY, the Exchange
only disseminates quotes in ‘‘active’’
series.8 A series is considered active if
the series: (i) Has traded on any options
exchange in the previous 14 calendar
days; (ii) is solely listed on the
Exchange; (iii) has been trading ten days
or less; or (iv) is a series in which the
Exchange has an order.9 In addition, a
series may be considered active on an
intraday basis if: (i) The series trades at
any options exchange; (ii) the Exchange
receives an order in the series; or (iii)
the Exchange receives a request for
designated May 9, 2021, as the date by which it
should approve, disapprove, or institute
proceedings to determine whether to approve or
disapprove the proposed rule change.
6 In Amendment No. 1, the Exchange provided
data that showed that during the eighteen (18)
trading days between March 1, 2021 and March 24,
2021, quotes in dark series accounted for 2.43% of
NYSE Arca, Inc. (‘‘NYSE Arca’’) quotes and 1.99%
of NYSE American quotes, and quotes in dark series
averaged 0.174% on NYSE Arca and 0.190% on
NYSE American when compared to the total OPRA
disseminated quotes during the same period. The
Exchange also stated that on March 4, 2021 and
March 5, 2021, OPRA processed the most messages
in its history and provided data that shows that on
March 4th, quotes in dark series from NYSE Arca
and NYSE American combined for 0.5095%
compared to OPRA message traffic. On March 5th,
quotes in dark series from NYSE Arca and NYSE
American combined for 0.2562% when compared
to OPRA quote volume. The Exchange concluded
that eliminating the suppression of quotes in dark
series would result in a de minimis increase in
quotes sent by NYSE Arca and NYSE American to
OPRA and have essentially no impact on messaging
at an industry level. Because Amendment No. 1 to
the proposed rule change does not materially alter
the substance of the proposed rule change,
Amendment No. 1 is not subject to notice and
comment. Amendment No. 1 is available on the
Commission’s website at: https://www.sec.gov/
comments/sr-nyseamer-2021-05/srnyseamer2021058730999-237044.pdf.
7 See NYSE American Rule 970NY(b)(1).
8 The quote mitigation plan set forth in NYSE
American Rule 970.1NY was adopted in
conformance with NYSE Arca’s similar quote
mitigation rule, which was adopted in connection
with the Penny Pilot Program, a program which was
subsequently approved on a permanent basis in
2020. See Notice, supra note 3, at 8659.
9 See NYSE American Rule 970.1NY.
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
25905
quote from a customer in that series.10
Any options series that does not meet
the definition of an active series is
deemed be an inactive or ‘‘dark’’ series.
Consequently, under the Exchange’s
current rules, although the Exchange
accepts quotes from ATP Holders in all
series, the only quote messages the
Exchange disseminates to the Options
Price Reporting Authority (‘‘OPRA’’) are
quotes for active series.11 The Exchange
proposes to delete NYSE American Rule
970.1NY. Therefore, the proposed rule
change would eliminate the distinction
between active and dark series, and thus
require quotes in all series to be
disseminated to OPRA.12
III. Discussion and Commission
Findings
The Commission finds that the
proposed rule change, as modified by
Amendment No.1, is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.13 In
particular, the Commission finds that
the proposed rule change, as modified
by Amendment No. 1, is consistent with
Section 6(b)(5) of the Act,14 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 regulating and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
In support of its proposal, the
Exchange states the proposed rule
change would increase transparency,
enhance price discovery, and alleviate
potential confusion among market
participants regarding what quotes are
being published in the disseminated
quote feed and what quotes are being
suppressed.15 According to the
10 See
NYSE American Rule 970.1NY.
Notice, supra note 3, at 8659. See also
Amendment No. 1, supra note 6 (providing data to
support the Exchange’s conclusion that eliminating
the suppression of quotes in dark series would
result in a de minimis increase in quotes sent by
NYSE Arca and NYSE American to OPRA and
would have essentially no impact on messaging at
an industry level).
12 See Notice, supra note 3, at 8659.
13 In approving this proposed rule change, as
modified by Amendment No.1, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
14 15 U.S.C. 78f(b)(5).
15 See Notice, supra note 3, at 8660 (stating that
‘‘over the years, certain market participants have
11 See
E:\FR\FM\11MYN1.SGM
Continued
11MYN1
]]>Agencies
[Federal Register Volume 86, Number 89 (Tuesday, May 11, 2021)]
[Notices]
[Pages 25902-25905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09886]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91778; File No. SR-NYSE-2021-29]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Extend the Temporary Period for Specified Commentaries to Rules 7.35,
7.35A, 7.35B, and 7.35C and Temporary Rule Relief in Rule 36.30
May 5, 2021.
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 April 26, 2021, 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,
II, and III 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend the temporary period for specified
Commentaries to Rules 7.35, 7.35A, 7.35B, and 7.35C and temporary rule
relief in Rule 36.30, to end on the earlier of a full reopening of the
Trading Floor facilities to DMMs or after the Exchange closes on August
31, 2021. 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.
[[Page 25903]]
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 extend the temporary period for specified
Commentaries to Rules 7.35, 7.35A, 7.35B, and 7.35C and temporary rule
relief to Rule 36.30, to end on the earlier of a full reopening of the
Trading Floor facilities to DMMs or after the Exchange closes on August
31, 2021. The current temporary period that these Rules are in effect
ends on the earlier of a full reopening of the Trading Floor facilities
to DMMs or after the Exchange closes on April 30, 2021.
Background
To slow the spread of COVID-19 through social-distancing measures,
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)(3) 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 COVID-19.\5\ On June
15, 2020, the CEO of the Exchange made a determination under Rule
7.1(c)(3) to begin the second phase of the Trading Floor reopening by
allowing DMMs to return on June 17, 2020, subject to safety measures
designed to prevent the spread of COVID-19.\6\ Consistent with these
safety measures, both DMMs and Floor broker firms continue to operate
with reduced staff on the Trading Floor.
---------------------------------------------------------------------------
\4\ Pursuant to Rule 7.1(e), the CEO notified the Board of
Directors of the Exchange of this determination. 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.
\5\ See Securities Exchange Act Release No. 88933 (May 22,
2020), 85 FR 32059 (May 28, 2020) (SR-NYSE-2020-47) (Notice of
filing and immediate effectiveness of proposed rule change).
\6\ See Securities Exchange Act Release No. 89086 (June 17,
2020) (SR-NYSE-2020-52) (Notice of filing and immediate
effectiveness of proposed rule change).
---------------------------------------------------------------------------
Proposed Rule Change
The Exchange has modified its rules to add Commentaries to Rules
7.35, 7.35A, 7.35B, and 7.35C and rule relief in Rule 36.30 \7\ that
are in effect until the earlier of a full reopening of the Trading
Floor facilities to DMMs or after the Exchange closes on April 30,
2021.\8\
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\7\ See Securities Exchange Act Release Nos. 88413 (March 18,
2020), 85 FR 16713 (March 24, 2020) (SR-NYSE-2020-19) (amending Rule
7.35C to add Commentary .01); 88444 (March 20, 2020), 85 FR 17141
(March 26, 2020) (SR-NYSE-2020-22) (amending Rules 7.35A to add
Commentary .01, 7.35B to add Commentary .01, and 7.35C to add
Commentary .02); 88488 (March 26, 2020), 85 FR 18286 (April 1, 2020)
(SR-NYSE-2020-23) (amending Rule 7.35A to add Commentary .02); 88546
(April 2, 2020), 85 FR 19782 (April 8, 2020) (SR-NYSE-2020-28)
(amending Rule 7.35A to add Commentary .03); 88562 (April 3, 2020),
85 FR 20002 (April 9, 2020) (SR-NYSE-2020-29) (amending Rule 7.35C
to add Commentary .03); 88705 (April 21, 2020), 85 FR 23413 (April
27, 2020) (SR-NYSE-2020-35) (amending Rule 7.35A to add Commentary
.04); 88725 (April 22, 2020), 85 FR 23583 (April 28, 2020) (SR-NYSE-
2020-37) (amending Rule 7.35 to add Commentary .01); 88950 (May 26,
2020), 85 FR 33252 (June 1, 2020) (SR-NYSE-2020-48) (amending Rule
7.35A to add Commentary .05); 89059 (June 12, 2020), 85 FR 36911
(June 18, 2020) (SR-NYSE-2020-50) (amending Rule 7.35C to add
Commentary .04); 89086 (June 17, 2020), 85 FR 37712 (SR-NYSE-2020-
52) (amending Rules 7.35A to add Commentary .06, 7.35B to add
Commentary .03, 76 to add Supplementary Material 20, and
Supplementary Material .30 to Rule 36); 89925 (September 18, 2020)
(SR-NYSE-2020-75) (amending Rule 7.35 to add Commentary .02); and
90810 (December 29, 2020), 86 FR 335 (January 5, 2021) (SR-NYSE-
2020-109) (amending Rule 7.35A to add Commentary .07).
\8\ See Securities Exchange Act Release No. 90795 (December 23,
2020), 85 FR 86608 (December 30, 2020) (SR-NYSE-2020-106) (Notice of
filing and immediate effectiveness of proposed rule change to extend
the temporary period for specified Commentaries to Rules 7.35,
7.35A, 7.35B, and 7.35C and temporary rule relief in Rule 36.30 to
end on the earlier of a full reopening of the Trading Floor
facilities to DMMs or after the Exchange closes on April 30, 2021).
See also Securities Exchange Act Release Nos. 90005 (September 25,
2020), 85 FR 61999 (October 2020) (SR-NYSE-2020-78) (Notice of
filing and immediate effectiveness of proposed rule change to extend
the temporary period for specified Commentaries to Rules 7.35,
7.35A, 7.35B, and 7.35C and temporary rule relief in Rule 36.30 to
end on the earlier of a full reopening of the Trading Floor
facilities to DMMs or after the Exchange closes on December 31,
2020); 89425 (July 30, 2020), 85 FR 47446 (August 5, 2020) (SR-NYSE-
2020-63) (Notice of filing and immediate effectiveness of proposed
rule change to extend the temporary period for Commentaries to Rules
7.35, 7.35A, 7.35B, and 7.35C and temporary rule relief in Rule
36.30 to end on the earlier of a full reopening of the Trading Floor
facilities to DMMs or after the Exchange closes on September 30,
2020); 89199 (June 30, 2020), 85 FR 40718 (July 7, 2020) (SR-NYSE-
2020-56) (Notice of filing and immediate effectiveness of proposed
rule change to extend the temporary period for Commentaries to Rules
7.35, 7.35A, 7.35B, and 7.35C; Supplementary Material .20 to Rule
76; and temporary rule relief in Rule 36.30 to end on the earlier of
a full reopening of the Trading Floor facilities to DMMs or after
the Exchange closes on July 31, 2020); and 89368 (July 21, 2020), 85
FR 45272 (July 27, 2020) (SR-NYSE-2020-61) (Notice of filing and
immediate effectiveness of proposed rule change to lift the
temporary suspension to Rule 76 and delete Supplementary Material
.20 to Rule 76).
---------------------------------------------------------------------------
The first and second phases of the reopening of the Trading Floor
are subject to safety measures designed to prevent the spread of COVID-
19. To meet these safety measures, Floor brokers and DMM units that
have chosen to return to the Trading Floor are operating with reduced
staff. The Exchange is therefore proposing to extend the following
temporary rules until such time that there is a full reopening of the
Trading Floor facilities to DMMs:
Commentaries .01 and .02 to Rule 7.35; \9\
---------------------------------------------------------------------------
\9\ Because DMMs are not obligated to return to a Floor, an IPO
Auction may still be conducted by a DMM remotely as provided for in
Commentary .04 to Rule 7.35A. If a DMM chooses to conduct an IPO
Auction remotely, Floor brokers on the Trading Floor will not have
access to IPO Auction imbalance information. The Exchange proposed a
non-substantive change to Commentary .02 to Rule 7.35 to change the
start date of that Commentary from September 20, 2020 to September
4, 2020, which is consistent with the date represented in the
proposed rule change adopting that Commentary. See Securities
Exchange Act Release No. 89925 (September 18, 2020) (SR-NYSE-2020-
75) (amending Rule 7.35 to add Commentary .02).
---------------------------------------------------------------------------
Commentaries .01, .02, .03, .04, .05, .06, and .07 to Rule
7.35A;
Commentaries .01 and .03 to Rule 7.35B;
Commentaries .01, .02, .03, and .04 to Rule 7.35C; and
Amendments to Rule 36.30.
The Exchange is not proposing any substantive changes to these
Rules.
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).
---------------------------------------------------------------------------
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 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. On June 15, 2020, the CEO made a determination under
Rule 7.1(c)(3) that, beginning June 17,
[[Page 25904]]
2020, DMM units may choose to return a subset of staff 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 the Trading Floor has not yet reopened
in full to DMMs or Floor brokers. Accordingly, the Exchange believes
that the temporary rule changes in effect pursuant to the Commentaries
to Rules 7.35, 7.35A, 7.35B, and 7.35C and amendments to Rule 36.30,
which are intended to be in effect during the temporary period while
the Trading Floor has not yet opened in full to DMMs, should be
extended until such time that there is a full reopening of the Trading
Floor facilities to DMMs. The Exchange is not proposing any substantive
changes to these Rules.
The Exchange believes that, by clearly stating that this relief
will be in effect through the earlier of a full reopening of the
Trading Floor facilities to DMMs or the close of the Exchange on August
31, 2021, market participants will have advance notice of the temporary
period during which the Commentaries to Rules 7.35, 7.35A, 7.35B, and
7.35C and amendments to Rule 36.30 will 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. The proposed rule change is
not designed to address any competitive issues but rather would extend
the period during which Commentaries .01 and .02 to Rule 7.35;
Commentaries .01, .02, .03, .04, 05, .06, and .07 to Rule 7.35A;
Commentaries .01 and .03 to Rule 7.35B; Commentaries .01, .02, .03, and
.04 to Rule 7.35C; and amendments to Rule 36.30 will be in effect.
These Commentaries are intended to be in effect during the temporary
period while the Trading Floor has not yet been opened in full to DMMs
and Floor brokers and currently expire on April 30, 2021. Because the
Trading Floor has not been opened in full to DMMs, the Exchange
proposes to extend the temporary period for these temporary rules to
end on the earlier of a full reopening of the Trading Floor facilities
to DMMs or after the Exchange closes on August 31, 2021.
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 prior to
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)(iii) of the Act \14\ and Rule
19b-4(f)(6)(iii) thereunder.\15\
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\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)(iii).
\15\ 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 Exchange has fulfilled this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(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 proposal
may take effect immediately. The Commission believes that waiver of the
operative delay is consistent with the protection of investors and the
public interest because it will allow the rules discussed above to
remain in effect during the temporary period during which the Trading
Floor has not yet been reopened in full to DMMs because of health
precautions related to the Covid-19 pandemic. 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 accelerating the operative date of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 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) \19\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\19\ 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-2021-29 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-2021-29. 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
[[Page 25905]]
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-2021-29 and should be
submitted on or before June 1, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------
\20\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-09886 Filed 5-10-21; 8:45 am]
BILLING CODE 8011-01-P
