Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting Proceedings to Determine Whether to Approve or Disapprove a Proposed Rule Change to Adopt New Exchange Rule 6.91P-O, 60955-60959 [2021-24014]
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Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Notices
to make available publicly. All
submissions should refer to File
Number SR–Phlx–2021–65, and should
be submitted on or before November 26,
2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–24013 Filed 11–3–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93466; File No. SR–
NYSEArca–2021–68]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Instituting
Proceedings to Determine Whether to
Approve or Disapprove a Proposed
Rule Change to Adopt New Exchange
Rule 6.91P–O
October 29, 2021.
I. Introduction
On July 23, 2021, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘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 adopt new
Exchange Rule 6.91P–O to govern the
trading of Electronic Complex Orders
(‘‘Electronic Complex Orders’’ or
‘‘ECOs’’) on the Exchange’s Pillar
trading platform and to make
conforming amendments to Exchange
Rule 6.47A–O.3 The proposed rule
change was published for comment in
the Federal Register on August 4, 2021.4
On September 20, 2021, pursuant to
Section 19(b)(2) of the Act,5 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.6
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The proposal defines an Electronic Complex
Order or ECO as ‘‘a Complex Order as defined in
Rule 6.62P–O(f) or a Stock/Option Order or Stock/
Complex Order as defined in Rule 6.62P–
O(h)(6)(A), (B), respectively, that is submitted
electronically to the Exchange.’’ See proposed
Exchange Rule 6.91P–O(a)(1).
4 Securities Exchange Act Release No. 92563
(August 4, 2021), 86 FR 43704 (August 10, 2021)
(File No. SR–NYSEArca–2021–68) (‘‘Notice’’).
5 15 U.S.C. 78s(b)(2).
6 See Securities Exchange Act Release No. 93057
(September 20, 2021), 86 FR 53128 (September 24,
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The Commission has received no
comments regarding the proposed rule
change. This order institutes
proceedings pursuant to Section
19(b)(2)(B) of the Act 7 to determine
whether to approve or disapprove the
proposed rule change.
II. Description of the Proposal
Background
As described more fully in the Notice,
the Exchange plans to transition its
options trading platform to its Pillar
technology platform. The cash equity
markets of the Exchange and its national
securities exchange affiliates are
currently operating on Pillar.8 For the
transition, the Exchange proposes to use
the same Pillar technology already in
operation for its cash equity market,
thereby allowing the Exchange to offer
common trading functions and common
specifications for connecting to its cash
equity and equity options markets. The
Exchange plans to roll out the new
technology platform over a period of
time based on a range of symbols.
The Exchange has filed a proposal
(the ‘‘Single-Leg Pillar Filing’’) to add
new rules describing how single-leg
options will trade on the Exchange once
Pillar is implemented.9 The current
proposal describes how ECOs will trade
on the Exchange once Pillar is
implemented. As the Exchange
transitions to Pillar, certain rules will
continue to be applicable to symbols
trading on the current trading platform,
but will not be applicable to symbols
that have transitioned to trading on
Pillar.10 Proposed Exchange Rule 6.91P–
O, which will govern the trading of
Electronic Complex Orders in options
symbols that have migrated to the Pillar
2021). The Commission designated November 8,
2021, as the date by which the Commission shall
approve or disapprove, or institute proceedings to
determine whether to approve or disapprove, the
proposed rule change.
7 15 U.S.C. 78s(b)(2)(B).
8 The Exchange’s national securities exchange
affiliates are the New York Stock Exchange LLC
(‘‘NYSE’’), NYSE American LLC (‘‘NYSE
American’’), NYSE National, Inc. (‘‘NYSE
National’’), and NYSE Chicago, Inc. (‘‘NYSE
Chicago’’).
9 See Securities Exchange Act Release Nos. 92304
(June 30, 2021), 86 FR 36440 (July 9, 2021) (notice
of filing of File No. SR–NYSEArca–2021–47). The
Commission extended the time for Commission
action on the Single-Leg Pillar Filing and instituted
proceedings to determine whether to approve or
disapprove that proposal. See Securities Exchange
Act Release Nos. 92696 (August 18, 2021), 86 FR
47350 (August 24, 2021) (extending the time for
Commission action on the Single-Leg Pillar Filing);
and 93193 (September 29, 2021), 86 FR 55926
(October 7, 2021) (order instituting proceedings to
determine whether to approve or disapprove the
Single-Leg Pillar Filing).
10 The Exchange will announce by Trader Update
when symbols are trading on the Pillar trading
platform.
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60955
platform, will have the same number as
the current Electronic Complex Order
Trading rule, but with the modifier ‘‘P’’
appended to the rule number. Current
Exchange Rule 6.91–O will remain
unchanged and continue to apply to any
trading in symbols on the current
system. The proposed rule will use
terminology that is based on Exchange
Rule 7–E and will introduce new
functionality for Electronic Complex
Order trading. The Exchange intends to
transition ECO trading on Pillar at the
same time it transitions single-leg
trading to Pillar.
Proposed Exchange Rule 6.91P–O:
Electronic Complex Order Trading
Exchange Rule 6.91–O describes how
the Exchange currently processes ECOs
submitted to the Exchange. The
Exchange proposes new Exchange Rule
6.91P–O to describe the processing of
ECOs after the transition to Pillar.
Definitions. Proposed Exchange Rule
6.91P–O(a) defines terms that will apply
to the trading of ECOs on Pillar,
including the following:
• ‘‘ECO Order Instruction’’ will mean
a request to cancel, cancel and replace,
or modify an ECO; 11
• ‘‘leg’’ or ‘‘leg market’’ will mean
each of the component option series that
comprise an ECO; 12
• ‘‘Complex NBBO’’ will mean the
derived national best bid and derived
national best offer for a complex strategy
calculated using the NBB and NBO for
each component leg of a complex
strategy; 13
• ‘‘Complex strategy’’ will mean a
particular combination of leg
components and their ratios to one
another. New complex strategies can be
created when the Exchange receives a
request to create a new complex strategy
or an ECO with a new complex
strategy; 14
• ‘‘DBBO’’ will mean the derived best
bid (‘‘DBB’’) and derived best offer
(‘‘DBO’’) for a complex strategy
calculated using the Exchange BBO 15
for each leg (or the Away Market
NBBO 16 for a leg if there is no Exchange
11 See
proposed Exchange Rule 6.91P–O(a)(2).
proposed Exchange Rule 6.91P–O(a)(3).
13 See proposed Exchange Rule 6.91P–O(a)(4).
14 See proposed Exchange Rule 6.91P–O(a)(5).
15 The term BBO when used with respect to
options traded on the Exchange will mean ‘‘the best
displayed bid or best displayed offer on the
Exchange.’’ See Single-Leg Pillar Filing, proposed
Exchange Rule 1.1.
16 In the Single-Leg Pillar Filing, the Exchange
proposes that the term ‘‘Away Market NBBO’’ will
refer to a calculation of the NBBO that excludes the
Exchange’s BBO. See Single-Leg Pillar Filing
(defining Away Market NBBO in proposed
Exchange Rule 1.1).
12 See
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BBO), provided that the bid (offer) price
used to calculate the DBBO will never
be lower (higher) than the greater of
$0.05 or 5% below (above) the Away
Market NBB (NBO).17 The DBBO will be
updated as the Exchange’s calculation of
the Exchange BBO or Away Market
NBBO, as applicable, is updated.18 If
there is no Exchange BB (BO) or Away
Market NBB (NBO) for a leg, the bid
(offer) price used to calculate the DBBO
will be the offer (bid) price for that leg
minus (plus) ‘‘one collar value,’’ which
is (i) $0.25 where the best offer (bid) is
priced $1.00 or lower; or (ii) the lower
of $2.50 or 25% where the best offer
(bid) is priced above $1.00, provided
that if the best offer is equal to or less
than one collar value, the best bid price
used to calculate the DBBO for that leg
will be $0.01; 19
• ‘‘Complex Order Auction’’ or
‘‘COA’’ will mean an auction of an ECO
as set forth in proposed Exchange Rule
6.91P–O(f); 20
• ‘‘COA Order’’ will mean an ECO
that is designated by the OTP Holder as
eligible to initiate a COA; 21
• ‘‘Request for Response’’ or ‘‘RFR’’
will mean a message disseminated to
the Exchange’s proprietary complex
data feed announcing that the Exchange
has received a COA Order and that a
COA has begun. Each RFR message will
identify the component series, the price,
and the size and side of the market of
the COA Order; 22
• ‘‘RFR Response’’ will mean any
ECO received during the Response Time
Interval that is in the same complex
strategy, on the opposite side of the
market of the COA Order that initiated
the COA and marketable against the
COA Order.23 The Exchange will
consider any ECOs received during the
Response Time Interval (defined below)
that are marketable against the COA
Order as an RFR Response; and
• ‘‘Response Time Interval’’ will
mean the period of time during which
RFR Responses for a COA may be
entered. The Exchange will determine
and announce by Trader Update the
length of the Response Time Interval.
The duration of the Response Time
Interval will not be less than 100
milliseconds and will not exceed one
second.24
17 See
proposed Exchange Rule 6.91P–O(a)(6).
id.
19 See proposed Exchange Rule 6.91P–O(a)(6)(A).
20 See proposed Exchange Rule 6.91P–O(a)(7).
21 See proposed Exchange Rule 6.91P–O(a)(7)(A).
22 See proposed Exchange Rule 6.91P–O(a)(7)(B).
23 See proposed Exchange Rule 6.91P–O(a)(7)(C).
The term ‘‘marketable’’ is defined in proposed
Exchange Rule 1.1 of the Single-Leg Pillar Filing.
24 See proposed Exchange Rule 6.91P–O(a)(7)(D).
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18 See
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Types of ECOs. Under the proposal,
ECOs may be entered as Limit Orders or
Limit Orders designated as Complex
Only Orders.25 An ECO designated as a
Complex Only Order will trade only
with ECOs and will not trade with the
leg markets.26 If there is displayed
Customer interest on all legs of the
Complex Only Order, it will not trade
below (above) one penny ($0.01) times
the smallest leg ratio inside the DBB
(DBO) containing Customer interest.27
Complex Only Orders are based in part
on existing functionality for PNP Plus
orders, which may trade only with other
Electronic Complex Orders.28 ECOs may
be designated with a time-in-force of
Day, IOC, FOK, or GTC, as those terms
are defined in proposed Exchange Rule
6.62P–O(b), or GTX.29
Priority and Pricing of ECOs.
Proposed Exchange Rule 6.91P–O(c)
describes how ECOs will be prioritized
and priced on Pillar. Under the
proposal, an ECO received by the
Exchange that is not executed
immediately (or cancelled) will be
ranked in the Consolidated Book
according to price-time priority based
on the total net price and the time of
entry of the order.30 When trading with
the leg markets, an ECO must trade at
or within the greater of $0.05 or 5%
higher (lower) than the Away Market
NBO (NBB).31 An ECO will trade at the
prices of the leg markets.32 For example,
if there is sell interest in a leg market
at $1.00, and a leg of an ECO to buy
could trade up to $1.05, the ECO would
trade with the leg market at $1.00. When
trading with another ECO, an ECO must
trade at a price at or within the DBBO
and no leg of an ECO may trade at a
price of zero.33 An ECO may trade
without consideration of prices of the
same complex strategy available on
other exchanges.34 In addition, an ECO
25 See
proposed Exchange Rule 6.91P–O(b)(1).
proposed Exchange Rule 6.91P–O(b)(1)(A).
27 See id.
28 See Exchange Rule 6.62–O(y) (describing PNP
Plus orders as ECOs that may only trade with other
ECOs, but which will continuously be repriced if
locking or crossing the Complex BBO).
29 See proposed Exchange Rule 6.91P–O(b)(2).
Proposed Exchange Rule 6.91P–O(b) is included in
the Single-Leg Pillar Filing. An ECO designated as
GTX (‘‘ECO GTX Order’’) will not be displayed,
may be entered only during the Response Time
Interval of a COA, must be on the opposite side of
the COA Order, and must specify the price, size,
and side of the market. ECO GTX Orders may be
modified or cancelled during the Response Time
Interval and any remaining size that does not trade
with the COA Order will be cancelled at the end
of the COA. See proposed Exchange Rule 6.91P–
O(b)(2)(B).
30 See proposed Exchange Rule 6.91P–O(c).
31 See proposed Exchange Rule 6.91P–O(c)(1)(A).
32 See proposed Exchange Rule 6.91P–O(c)(1)(B).
33 See Proposed Exchange Rule 6.91P–O(c)(2).
34 See Proposed Exchange Rule 6.91P–O(c)(3).
26 See
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may trade in $0.01 increments
regardless of the MPV otherwise
applicable to any leg of the complex
strategy.35
Execution of ECOs at the Open (or
Reopening after a Trading Halt. With
the transition to Pillar, the Exchange
proposes new functionality regarding
the ECO Opening Auction Process on
the Exchange, which will apply to both
to openings and reopenings following a
trading halt. Under the proposed rules,
the Exchange will initiate an ECO
Opening Auction Process for a complex
strategy only if all legs of the complex
strategy have opened or reopened for
trading.36 A complex strategy will not
be opened if: (A) Any leg of the complex
strategy has no BO or NBO; (B) the bid
and offer prices used to calculate the
DBBO for the complex strategy are
locking or crossing; or (C) all legs of the
complex strategy include displayed
Customer interest and the width of the
DBBO is less than or equal to one penny
($0.01) times the smallest leg ratio.37
Any ECOs in a complex strategy with
prices that lock or cross one another
will be eligible to trade in the ECO
Opening Auction Process.38 An ECO
received during a pre-open state will not
participate in the Auction Process for
the leg markets pursuant to proposed
Exchange Rule 6.64P–O.39 A complex
strategy created intra-day when all leg
markets are open will not be subject to
an ECO Opening Auction Process and
instead will trade pursuant to proposed
Exchange Rule 6.91P–O(e) regarding the
handling of ECOs during Core Trading
Hours.40 The ECO Opening Auction
Process will be used to reopen trading
in ECOs after a trading halt.41
Proposed Exchange Rule 6.91P–
O(d)(3) describes the ECO Opening
Auction Process. Under the proposed
rule, locking and crossing ECOs in a
complex strategy will trade at the ECO
Auction Price.42 The ECO Auction Price
will be the price at which the maximum
volume of ECOs can be traded in an
ECO Opening Auction, subject to the
proposed ECO Auction Collar.43 If there
35 See
Proposed Exchange Rule 6.91P–O(c)(4).
proposed Exchange Rule 6.91P–O(d)(1).
37 See proposed Exchange Rule 6.91P–O(d)(1)(A)–
(C).
38 See proposed Exchange Rule 6.91P–O(d)(2).
39 See proposed Exchange Rule 6.91P–O(d)(2(A).
40 See proposed Exchange Rule 6.91P–O(d)(2)(B).
41 See proposed Exchange Rule 6.91P–O(d)(2)(C).
42 See proposed Exchange Rule 6.91P–
O(d)(3)(B)(ii).
43 See proposed Exchange Rule 6.91P–O(d)(3)(B).
The upper (lower) price of an ECO Auction Collar
for a complex strategy would be the DBO (DBB);
provided, however, that if there is displayed
Customer interest on all legs of a complex strategy,
the upper (lower) price of an ECO Auction Collar
will be one penny ($0.01) times the smallest leg
36 See
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are no locking or crossing ECOs in a
complex strategy at or within the ECO
Auction Collars, the Exchange will open
the complex strategy without a trade.44
An ECO to buy (sell) with a limit price
at or above (below) the upper (lower)
ECO Auction Collar will be included in
the ECO Auction Price calculation at the
price of the upper (lower) ECO Auction
Collar, but ranked for participation in
the ECO Opening (or Reopening)
Auction Process in price-time priority
based on its limit price.45
The Exchange proposes to apply
existing Pillar auction functionality
regarding the processing of ECOs
received during the period when an
ECO Opening Auction Process is
ongoing. Under the proposal, new ECOs
and ECO Order Instructions 46 that the
Exchange receives when the Exchange is
conducting the ECO Opening Auction
Process for a complex strategy will be
accepted but will not be processed until
after the conclusion of the process.47 An
ECO Order Instruction received during
the ECO Opening Auction Process will
not be processed until after this process
concludes if it relates to an ECO that
was received before the process begins
and any subsequent ECO Order
Instructions relating to the ECO ill be
rejected.48 An ECO Order Instruction
received during the ECO Opening
Auction Process will be processed on
arrival if it relates to an order that was
received during the opening process.49
After the ECO Opening Auction, ECOs
will be subject to the ECO Price
Protection in proposed Exchange Rule
6.91P–O(g)(2). An ECO received before
the complex strategy was opened that
did not trade in whole in the ECO
Opening Auction Process and that is
locking or crossing other ECOs or leg
markets in the Consolidated Book will
trade pursuant to proposed Exchange
ratio inside the DBO (DBB) containing Customer
interest. See proposed Exchange Rule 6.91P–
O(d)(3)(A). If there is more than one price at which
the maximum volume of ECOs can be traded within
the ECO Auction Collar, the ECO Auction Price will
be the price closest to the midpoint of the ECO
Auction Collar, or, if the midpoint falls within such
prices, the ECO Auction Price will be the midpoint,
provided that the ECO Auction Price would not be
lower (higher) than the highest (lowest) price of an
ECO to buy (sell) that is eligible to trade in the ECO
Opening Auction Process. If the ECO Auction Price
would be a sub-penny price, it will be rounded to
the nearest whole penny. See proposed Exchange
Rule 6.91P–O(d)(3)(B).
44 See proposed Exchange Rule 6.91P–
O(d)(3)(B)(ii).
45 See proposed Exchange Rule 6.91P–
O(d)(3)(B)(i).
46 An ‘‘ECO Order Instruction’’ is ‘‘a request to
cancel, cancel and replace, or modify an ECO.’’ See
proposed Exchange Rule 6.91P–O(a)(2).
47 See proposed Exchange Rule 6.91P–O(d)(4).
48 See proposed Exchange Rule 6.91P–O(d)(4)(A).
49 See proposed Exchange Rule 6.91P–O(d)(4)(B).
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Rule 6.91P–O(e).50 Any ECO received
during the ECO Opening Auction
Process will be processed in time
sequence relative to one another based
on original entry time.51
Execution of ECOs During Core
Trading Hours. Proposed Exchange Rule
6.91P–O(e) describes the processing of
ECOs during Core Trading Hours.
Proposed Exchange Rule 6.91P–
O(e)(1)(A) provides that if, at a price, an
incoming ECO would be eligible to trade
with the leg markets (e.g., the order is
not a Complex Only Order), the leg
markets will have first priority at that
price and will trade with the incoming
ECO pursuant to proposed Exchange
Rule 6.76AP–O before the incoming
ECO will trade with contra-side ECOs
resting in the Consolidated Book at that
price. An ECO will not trade with orders
in the leg markets designated as AON or
with an MTS modifier.52 An ECO that
is not designated as a Complex Only
Order will be eligible to trade with the
leg markets (in full or in a permissible
ratio), provided that an ECO will be
ineligible to trade with the leg markets
and will be processed as a Complex
Only Order if the ECO has a strategy
with: (i) More than five legs; (ii) two legs
and both legs are buying or both legs are
selling, and both legs are calls or both
legs are puts; or (iii) three or more legs
and all legs are buying or all legs are
selling.53
Any ECO or portion thereof that does
not trade immediately when it is
received by the Exchange and that is
designated either Day or GTC will be
ranked in the Consolidated Book
pursuant to proposed Exchange Rule
6.91P–O(c).54 The Exchange will
evaluate trading opportunities for a
resting ECO when the leg markets
comprising a complex strategy update,
provided that during periods of high
message volumes, the Exchange may
reduce the evaluations to no less than
ten times per one second.55 ECOs that
trade with the leg markets will be
allocated pursuant to Exchange Rule
6.76AP–O.56
Execution of ECOs During a COA. A
COA Order received when a complex
strategy is open for trading will initiate
a COA only on arrival, subject to
proposed Exchange Rule 6.91P–
50 See
proposed Exchange Rule 6.91P–O(d)(5)(A).
proposed Exchange Rule 6.91P–O(d)(5)(B).
52 See proposed Exchange Rule 6.91P–O(e)(1)(B).
See also See Single-Leg Pillar Filing (describing
Minimum Trade Size or MTS Modifier in proposed
Exchange Rule 6.62P–O(i)(3)(B)).
53 See proposed Exchange Rule 6.91P–O(e)(1)(C).
54 See proposed Exchange Rule 6.91P–O(e)(2).
55 See id.
56 See proposed Exchange Rule 6.91P–O(e)(3).
51 See
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60957
O(f)(1).57 A COA Order will be rejected
if entered during a pre-open state or if
entered during Core Trading Hours with
a time-in-force of FOK or GTX.58 Only
one COA will be conducted at a time in
a complex strategy.59
To initiate a COA, the limit price of
a COA Order to buy (sell) must be
higher (lower) than the best-priced,
same-side ECOs resting on the
Consolidated Book and equal to or
higher (lower) than the midpoint of the
DBBO.60 A COA Order that does not
satisfy these pricing parameters will not
initiate a COA and will be processed as
an ECO.61 Once a COA is initiated, the
Exchange will disseminate a Request for
Response message, the Response Time
Interval will begin, and the Exchange
will accept RFR Responses, including
GTX ECO Orders.62
A COA Order to buy (sell) will initiate
a COA at its limit price, unless its limit
price locks or crosses the DBO (DBB), in
which case it will initiate a COA at a
price equal to one penny ($0.01) times
the smallest leg ratio inside the DBO
(DBB) (the ‘‘COA initiation price’’).63
Prior to initiating a COA, a COA Order
to buy (sell) will trade with any ECO to
sell (buy) that is priced equal to or
below (above) one penny ($0.01) times
the smallest leg ratio inside the DBO
(DBB) (i.e., priced better than the leg
markets) and any unexecuted portion of
such COA Order will initiate a COA.64
A COA Order will not be eligible to
trade with the leg markets until after the
COA ends.65
A COA will end prior to the
expiration of the Response Time
Interval if: (A) The Exchange receives an
incoming ECO or COA Order to buy
(sell) in the same complex strategy that
is priced higher (lower) than the
initiating COA Order to buy (sell); (B)
the Exchange receives an RFR Response
that crosses the same-side DBBO; (C) the
leg markets update causing the sameside DBBO to lock or cross (i) any RFR
Response(s) or (ii) if no RFR Responses
have been received, the best-priced,
contra-side ECOs; or (D) the leg markets
update causing the contra-side DBBO to
lock or cross the COA initiation price.66
At the conclusion of a COA, RFR
Responses to sell (buy) will trade in
price-time priority with a COA Order to
57 See
proposed Exchange Rule 6.91P–O(f).
id.
59 See id.
60 See proposed Exchange Rule 6.91P–O(f)(1).
61 See id.
62 See id.
63 See proposed Exchange Rule 6.91P–O(f)(2).
64 See proposed Exchange Rule 6.91P–O(f)(2)(A).
65 See proposed Exchange Rule 6.91P–O(f)(2)(B).
66 See proposed Exchange Rule 6.91P–O(f)(3).
58 See
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buy (sell).67 If there is displayed
Customer interest on all legs of the DBB
(DBO), RFR Responses to sell (buy) will
not trade below (above) one penny
($0.01) times the smallest leg ratio
inside the DBB (DBO).68 Any
unexecuted balance of a COA Order
(including those designated as IOC) will
be eligible to trade with any contra-side
interest, including the leg markets,
unless the COA Order is designated or
treated as a Complex Only Order.69
Following these allocations, any
unexecuted balance of a COA Order will
be processed as an ECO pursuant to
proposed Exchange Rule 6.91P–O(e).70
A pattern or practice of submitting
unrelated orders that cause a COA to
conclude early will be deemed conduct
inconsistent with just and equitable
principles of trade, as will the
dissemination of information related to
COA Orders to third parties.71
ECO Risk Checks. With the transition
to Pillar, the Exchange proposes to
modify and enhance its existing risk
checks for ECOs by adopting a Complex
Strategy Limit, ECO Price Protection,
and Complex Strategy Protections.
Under the proposed Complex Strategy
Limit, the Exchange will establish a
limit on the maximum number of new
complex strategies that may be
requested to be created per MPID.72
When an MPID reaches the limit on the
maximum number of new complex
strategies, the Exchange will reject all
requests to create new complex
strategies from that MPID for the rest of
the trading day.73 Notwithstanding the
established Complex Strategy Limit, the
Exchange may reject a request to create
a new complex strategy from any MPID
whenever the Exchange determines it is
necessary in the interests of a fair and
orderly market.74
Under the ECO Price Protection, an
ECO to buy (sell) will be rejected or
cancelled (if resting) if it is priced a
Specified Threshold 75 equal to or above
67 See
proposed Exchange Rule 6.91P–O(f)(4)(A).
id.
69 See proposed Exchange Rule 6.91P–O(f)(4)(B).
70 See proposed Exchange Rule 6.91P–O(f)(4)(C).
71 See proposed Exchange Rule 6.91P–O(f)(5).
72 The Exchange will announce the limit on the
maximum number of new complex strategies by
Trader Update. See proposed Exchange Rule 6.91P–
O(g)(1). In the Single-Leg Pillar Filing, the Exchange
has proposed to amend define MPID to mean ‘‘the
identification number(s) assigned to the orders and
quotes of a single ETP Holder, OTP Holder, or OTP
Firm for the execution and clearing of trades on the
Exchange by that permit holder. An ETP Holder,
OTP Holder, or OTP Firm may obtain multiple
MPIDs and each such MPID may be associated with
one or more sub-identifiers of that MPID.’’
73 See proposed Exchange Rule 6.91P–O(g)(1).
74 See id.
75 The Specified Threshold for calculating ECO
Price Protection will be $1.00, unless determined
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68 See
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(below) the Reference Price, rounded
down to the nearest penny ($0.01).76 An
ECO that arrives when a complex
strategy is open for trading will be
evaluated for ECO Price Protection on
arrival.77 An ECO received during a preopen state will be evaluated for ECO
Price Protection after the ECO Opening
Auction Process concludes.78 An ECO
resting on the Consolidated Book before
a trading halt will be reevaluated for
ECO Price Protection after the ECO
Opening Auction Process concludes.79
Cross Orders and ECOs entered on the
Trading Floor will not be subject to ECO
Price Protection.80 ECO Price Protection
will not be applied if there is no
Reference Price for an ECO.81
Under the Complex Strategy
Protections, the Exchange will reject
ECOs that are comprised of certain
erroneously-priced complex strategies.82
The proposed rule states that, to protect
an OTP Holder or OTP Firm that sends
an ECO with the expectation that it will
receive (or pay) a net premium but has
priced the ECO such that the ECO
sender will instead pay (or receive) a net
premium, the Exchange will reject any
ECO that is comprised of the following
erroneously-priced complex strategies:
• ‘‘All buy’’ or ‘‘all sell’’ strategies.
An ECO for a complex strategy where all
legs are to buy (sell) and it is entered at
a price less than one penny ($0.01)
times the sum of the number of options
in the ratio of each leg of such strategy
(e.g., a complex strategy to buy (sell)
two calls and buy (sell) one put with a
price less than $0.03); 83
• Vertical spreads. A vertical spread
complex strategy consists of a leg to sell
a call (put) option and a leg to buy a call
otherwise by the Exchange and announced to OTP
Holders and OTP Firms by Trader Update. See
proposed Exchange Rule 6.91P–O(g)(2)(C).
76 The Reference Price for calculating ECO Price
Protection for an ECO to buy (sell) will be the
Complex NBO (NBB), provided that, immediately
following an ECO Opening Auction Process, the
Reference Price will be the ECO Auction Price or,
if none, the Complex NBO (NBB). There will be no
Reference Price for an ECO if there is no NBBO for
any leg of such ECO. For purposes of determining
a Reference Price, the Exchange will not use an
adjusted NBBO. See proposed Exchange Rule
6.91P–O(g)(2)(B).
77 See proposed Exchange Rule 6.92P–
O(g)(2)(A)(i).
78 See proposed Exchange Rule 6.92P–
O(g)(2)(A)(ii).
79 See proposed Exchange Rule 6.92P–
O(g)(2)(A)(iii).
80 See proposed Exchange Rule 6.92P–
O(g)(2)(A)(iv).
81 See proposed Exchange Rule 6.92P–
O(g)(2)(A)(v).
82 See proposed Exchange Rule 6.91P–O(g)(3),
Any ECO that is not rejected by the Complex
Strategy Protections would still be subject to the
ECO Price Protection. See proposed Exchange Rule
6.92P–O(g)(3)(D).
83 See proposed Exchange Rule 6.92P–O(g)(3)(A).
PO 00000
Frm 00168
Fmt 4703
Sfmt 4703
(put) option in the same option class
with the same expiration but at different
strike prices, as follows: (i) An ECO for
a vertical spread to buy a lower (higher)
strike call and sell a higher (lower)
strike call and the ECO sender would
receive (pay) a net premium; (ii) an ECO
for a vertical spread to buy a higher
(lower) strike put and sell a lower
(higher) strike put and the ECO sender
would receive (pay) a net premium; 84
and
• Calendar spreads. A calendar
spread consists of a leg to sell a call
(put) option and a leg to buy a call (put)
option in the same option class at the
same strike price but with different
expirations, as follows: (i) An ECO for
a calendar spread to buy a call leg with
a shorter (longer) expiration while
selling a call leg with a longer (shorter)
expiration and the ECO sender would
pay (receive) a net premium; (ii) an ECO
for a calendar spread to buy a put leg
with a shorter (longer) expiration while
selling a put leg with a longer (shorter)
expiration and the ECO sender would
pay (receive) a net premium.85
Rule 6.47A–O: Order Exposure
Requirements—OX
The Exchange also proposes
conforming, non-substantive
amendments to Exchange Rule 6.47A–
O, regarding order exposure, to add a
cross-reference to new Exchange Pillar
Rule 6.91P–O. This proposed
amendment wwill extend the exemption
from the order exposure requirements to
COAs on Pillar.86 The Exchange also
proposes to modify the reference to
‘‘Complex Order Auction Process
(‘COA’)’’ to simply ‘‘Complex Order
Auction (‘COA’),’’ consistent with the
way this concept is defined in proposed
Exchange Rule 6.91P–O(a)(7).
As described more fully in the Notice,
the Exchange believes that the proposal
will promote clarity and transparency
regarding the trading of ECOs on Pillar.
The Exchange states that the proposed
price-time priority model for Pillar and
the pricing requirements for ECO
trading are substantively the same as the
Exchange’s current price-time priority
model and pricing requirements. In
addition, the Exchange states that the
proposed ECO auction process
maintains the fundamentals of an
auction process that the Exchange
currently uses for ECOs while
enhancing the process by incorporating
Pillar auction functionality that is
84 See
proposed Exchange Rule 6.92P–O(g)(3)(B).
proposed Exchange Rule 6.92P–O(g)(3)(C).
86 See proposed Exchange Rule 6.47A–O(iii).
Consistent with the Single-Leg Pillar Filing, the
Exchange also proposes to replace reference to
‘‘OX’’ with ‘‘the Exchange.’’
85 See
E:\FR\FM\04NON1.SGM
04NON1
Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Notices
currently available on the Exchange’s
cash equity platform. The Exchange
states that the proposed ECO risk checks
are similar to functionality currently
available on the Exchange or on other
exchanges.
lotter on DSK11XQN23PROD with NOTICES1
III. Proceedings To Determine Whether
To Approve or Disapprove SR–
NYSEArca–2021–68 and Grounds for
Disapproval Under Consideration
The Commission is instituting
proceedings pursuant to Section
19(b)(2)(B) of the Act 87 to determine
whether the proposed rule change
should be approved or disapproved.
Institution of such proceedings is
appropriate at this time in view of the
legal and policy issues raised by the
proposed rule change. Institution of
proceedings does not indicate that the
Commission has reached any
conclusions with respect to any of the
issues involved. Rather, as described
below, the Commission seeks and
encourages interested persons to
provide comments on the proposed rule
change.
Pursuant to Section 19(b)(2)(B) of the
Act,88 the Commission is providing
notice of the grounds for disapproval
under consideration. The Commission is
instituting proceedings to allow for
additional analysis of the proposed rule
change’s consistency with Section
6(b)(5) of the Act,89 which requires,
among other things, that the rules of a
national securities exchange be
‘‘designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, . . . 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,’’ 90 and
not be designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.91
IV. Procedure: Request for Written
Comments
The Commission requests that
interested persons provide written
submissions of their data, views, and
arguments with respect to the issues
identified above, as well as any other
concerns they may have with the
proposal. In particular, the Commission
invites the written views of interested
persons concerning whether the
proposed rule change is consistent with
Section 6(b)(5) or any other provisions
87 15
U.S.C. 78s(b)(2)(B).
88 Id.
89 15
U.S.C. 78f(b)(5).
90 Id.
91 See
id.
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17:57 Nov 03, 2021
Jkt 256001
of the Act, or rules and regulations
thereunder. Although there do not
appear to be any issues relevant to
approval or disapproval that would be
facilitated by an oral presentation of
data, views, and arguments, the
Commission will consider, pursuant to
Rule 19b–4 under the Act,92 any request
for an opportunity to make an oral
presentation.93
Interested persons are invited to
submit written data, views, and
arguments regarding whether the
proposed rule change should be
approved or disapproved by November
26, 2021. Any person who wishes to file
a rebuttal to any other person’s
submission must file that rebuttal by
December 9, 2021. The Commission
asks that commenters address the
sufficiency and merit of the Exchange’s
statements in support of the proposal, in
addition to any other issues raised by
the proposed rule change raised under
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 No. SR–
NYSEArca–2021–68 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 No.
SR–NYSEArca-2021–68. The 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
92 17
CFR 240.19b–4.
19(b)(2) of the Act, as amended by the
Securities Acts Amendments of 1975, Public Law
94–29 (June 4, 1975), grants to the Commission
flexibility to determine what type of proceeding—
either oral or notice and opportunity for written
comments—is appropriate for consideration of a
particular proposal by a self-regulatory
organization. See Securities Acts Amendments of
1975, Senate Comm. on Banking, Housing & Urban
Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30
(1975).
93 Section
PO 00000
Frm 00169
Fmt 4703
Sfmt 4703
60959
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 No.
SR–NYSEArca-2021–68 and should be
submitted by November 26, 2021.
Rebuttal comments should be submitted
by December 9, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.94
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–24014 Filed 11–3–21; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #17256 and #17257;
California Disaster Number CA–00349]
Administrative Declaration of a
Disaster for the State of California
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a notice of an
Administrative declaration of a disaster
for the State of California dated 10/29/
2021.
Incident: Brannan Island Fire.
Incident Period: 10/11/2021.
DATES: Issued on 10/29/2021.
Physical Loan Application Deadline
Date: 12/28/2021.
Economic Injury (EIDL) Loan
Application Deadline Date: 07/29/2022.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUMMARY:
94 17 CFR 200.30–3(a)(12); 17 CFR 200.30–
3(a)(57).
E:\FR\FM\04NON1.SGM
04NON1
]]>Agencies
[Federal Register Volume 86, Number 211 (Thursday, November 4, 2021)]
[Notices]
[Pages 60955-60959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24014]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93466; File No. SR-NYSEArca-2021-68]
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting
Proceedings to Determine Whether to Approve or Disapprove a Proposed
Rule Change to Adopt New Exchange Rule 6.91P-O
October 29, 2021.
I. Introduction
On July 23, 2021, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``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 adopt new Exchange Rule 6.91P-O to govern the
trading of Electronic Complex Orders (``Electronic Complex Orders'' or
``ECOs'') on the Exchange's Pillar trading platform and to make
conforming amendments to Exchange Rule 6.47A-O.\3\ The proposed rule
change was published for comment in the Federal Register on August 4,
2021.\4\ On September 20, 2021, pursuant to Section 19(b)(2) of the
Act,\5\ 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.\6\ The Commission has received no comments
regarding the proposed rule change. This order institutes proceedings
pursuant to Section 19(b)(2)(B) of the Act \7\ to determine whether to
approve or disapprove the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ The proposal defines an Electronic Complex Order or ECO as
``a Complex Order as defined in Rule 6.62P-O(f) or a Stock/Option
Order or Stock/Complex Order as defined in Rule 6.62P-O(h)(6)(A),
(B), respectively, that is submitted electronically to the
Exchange.'' See proposed Exchange Rule 6.91P-O(a)(1).
\4\ Securities Exchange Act Release No. 92563 (August 4, 2021),
86 FR 43704 (August 10, 2021) (File No. SR-NYSEArca-2021-68)
(``Notice'').
\5\ 15 U.S.C. 78s(b)(2).
\6\ See Securities Exchange Act Release No. 93057 (September 20,
2021), 86 FR 53128 (September 24, 2021). The Commission designated
November 8, 2021, as the date by which the Commission shall approve
or disapprove, or institute proceedings to determine whether to
approve or disapprove, the proposed rule change.
\7\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
II. Description of the Proposal
Background
As described more fully in the Notice, the Exchange plans to
transition its options trading platform to its Pillar technology
platform. The cash equity markets of the Exchange and its national
securities exchange affiliates are currently operating on Pillar.\8\
For the transition, the Exchange proposes to use the same Pillar
technology already in operation for its cash equity market, thereby
allowing the Exchange to offer common trading functions and common
specifications for connecting to its cash equity and equity options
markets. The Exchange plans to roll out the new technology platform
over a period of time based on a range of symbols.
---------------------------------------------------------------------------
\8\ The Exchange's national securities exchange affiliates are
the New York Stock Exchange LLC (``NYSE''), NYSE American LLC
(``NYSE American''), NYSE National, Inc. (``NYSE National''), and
NYSE Chicago, Inc. (``NYSE Chicago'').
---------------------------------------------------------------------------
The Exchange has filed a proposal (the ``Single-Leg Pillar
Filing'') to add new rules describing how single-leg options will trade
on the Exchange once Pillar is implemented.\9\ The current proposal
describes how ECOs will trade on the Exchange once Pillar is
implemented. As the Exchange transitions to Pillar, certain rules will
continue to be applicable to symbols trading on the current trading
platform, but will not be applicable to symbols that have transitioned
to trading on Pillar.\10\ Proposed Exchange Rule 6.91P-O, which will
govern the trading of Electronic Complex Orders in options symbols that
have migrated to the Pillar platform, will have the same number as the
current Electronic Complex Order Trading rule, but with the modifier
``P'' appended to the rule number. Current Exchange Rule 6.91-O will
remain unchanged and continue to apply to any trading in symbols on the
current system. The proposed rule will use terminology that is based on
Exchange Rule 7-E and will introduce new functionality for Electronic
Complex Order trading. The Exchange intends to transition ECO trading
on Pillar at the same time it transitions single-leg trading to Pillar.
---------------------------------------------------------------------------
\9\ See Securities Exchange Act Release Nos. 92304 (June 30,
2021), 86 FR 36440 (July 9, 2021) (notice of filing of File No. SR-
NYSEArca-2021-47). The Commission extended the time for Commission
action on the Single-Leg Pillar Filing and instituted proceedings to
determine whether to approve or disapprove that proposal. See
Securities Exchange Act Release Nos. 92696 (August 18, 2021), 86 FR
47350 (August 24, 2021) (extending the time for Commission action on
the Single-Leg Pillar Filing); and 93193 (September 29, 2021), 86 FR
55926 (October 7, 2021) (order instituting proceedings to determine
whether to approve or disapprove the Single-Leg Pillar Filing).
\10\ The Exchange will announce by Trader Update when symbols
are trading on the Pillar trading platform.
---------------------------------------------------------------------------
Proposed Exchange Rule 6.91P-O: Electronic Complex Order Trading
Exchange Rule 6.91-O describes how the Exchange currently processes
ECOs submitted to the Exchange. The Exchange proposes new Exchange Rule
6.91P-O to describe the processing of ECOs after the transition to
Pillar.
Definitions. Proposed Exchange Rule 6.91P-O(a) defines terms that
will apply to the trading of ECOs on Pillar, including the following:
``ECO Order Instruction'' will mean a request to cancel,
cancel and replace, or modify an ECO; \11\
---------------------------------------------------------------------------
\11\ See proposed Exchange Rule 6.91P-O(a)(2).
---------------------------------------------------------------------------
``leg'' or ``leg market'' will mean each of the component
option series that comprise an ECO; \12\
---------------------------------------------------------------------------
\12\ See proposed Exchange Rule 6.91P-O(a)(3).
---------------------------------------------------------------------------
``Complex NBBO'' will mean the derived national best bid
and derived national best offer for a complex strategy calculated using
the NBB and NBO for each component leg of a complex strategy; \13\
---------------------------------------------------------------------------
\13\ See proposed Exchange Rule 6.91P-O(a)(4).
---------------------------------------------------------------------------
``Complex strategy'' will mean a particular combination of
leg components and their ratios to one another. New complex strategies
can be created when the Exchange receives a request to create a new
complex strategy or an ECO with a new complex strategy; \14\
---------------------------------------------------------------------------
\14\ See proposed Exchange Rule 6.91P-O(a)(5).
---------------------------------------------------------------------------
``DBBO'' will mean the derived best bid (``DBB'') and
derived best offer (``DBO'') for a complex strategy calculated using
the Exchange BBO \15\ for each leg (or the Away Market NBBO \16\ for a
leg if there is no Exchange
[[Page 60956]]
BBO), provided that the bid (offer) price used to calculate the DBBO
will never be lower (higher) than the greater of $0.05 or 5% below
(above) the Away Market NBB (NBO).\17\ The DBBO will be updated as the
Exchange's calculation of the Exchange BBO or Away Market NBBO, as
applicable, is updated.\18\ If there is no Exchange BB (BO) or Away
Market NBB (NBO) for a leg, the bid (offer) price used to calculate the
DBBO will be the offer (bid) price for that leg minus (plus) ``one
collar value,'' which is (i) $0.25 where the best offer (bid) is priced
$1.00 or lower; or (ii) the lower of $2.50 or 25% where the best offer
(bid) is priced above $1.00, provided that if the best offer is equal
to or less than one collar value, the best bid price used to calculate
the DBBO for that leg will be $0.01; \19\
---------------------------------------------------------------------------
\15\ The term BBO when used with respect to options traded on
the Exchange will mean ``the best displayed bid or best displayed
offer on the Exchange.'' See Single-Leg Pillar Filing, proposed
Exchange Rule 1.1.
\16\ In the Single-Leg Pillar Filing, the Exchange proposes that
the term ``Away Market NBBO'' will refer to a calculation of the
NBBO that excludes the Exchange's BBO. See Single-Leg Pillar Filing
(defining Away Market NBBO in proposed Exchange Rule 1.1).
\17\ See proposed Exchange Rule 6.91P-O(a)(6).
\18\ See id.
\19\ See proposed Exchange Rule 6.91P-O(a)(6)(A).
---------------------------------------------------------------------------
``Complex Order Auction'' or ``COA'' will mean an auction
of an ECO as set forth in proposed Exchange Rule 6.91P-O(f); \20\
---------------------------------------------------------------------------
\20\ See proposed Exchange Rule 6.91P-O(a)(7).
---------------------------------------------------------------------------
``COA Order'' will mean an ECO that is designated by the
OTP Holder as eligible to initiate a COA; \21\
---------------------------------------------------------------------------
\21\ See proposed Exchange Rule 6.91P-O(a)(7)(A).
---------------------------------------------------------------------------
``Request for Response'' or ``RFR'' will mean a message
disseminated to the Exchange's proprietary complex data feed announcing
that the Exchange has received a COA Order and that a COA has begun.
Each RFR message will identify the component series, the price, and the
size and side of the market of the COA Order; \22\
---------------------------------------------------------------------------
\22\ See proposed Exchange Rule 6.91P-O(a)(7)(B).
---------------------------------------------------------------------------
``RFR Response'' will mean any ECO received during the
Response Time Interval that is in the same complex strategy, on the
opposite side of the market of the COA Order that initiated the COA and
marketable against the COA Order.\23\ The Exchange will consider any
ECOs received during the Response Time Interval (defined below) that
are marketable against the COA Order as an RFR Response; and
---------------------------------------------------------------------------
\23\ See proposed Exchange Rule 6.91P-O(a)(7)(C). The term
``marketable'' is defined in proposed Exchange Rule 1.1 of the
Single-Leg Pillar Filing.
---------------------------------------------------------------------------
``Response Time Interval'' will mean the period of time
during which RFR Responses for a COA may be entered. The Exchange will
determine and announce by Trader Update the length of the Response Time
Interval. The duration of the Response Time Interval will not be less
than 100 milliseconds and will not exceed one second.\24\
---------------------------------------------------------------------------
\24\ See proposed Exchange Rule 6.91P-O(a)(7)(D).
---------------------------------------------------------------------------
Types of ECOs. Under the proposal, ECOs may be entered as Limit
Orders or Limit Orders designated as Complex Only Orders.\25\ An ECO
designated as a Complex Only Order will trade only with ECOs and will
not trade with the leg markets.\26\ If there is displayed Customer
interest on all legs of the Complex Only Order, it will not trade below
(above) one penny ($0.01) times the smallest leg ratio inside the DBB
(DBO) containing Customer interest.\27\ Complex Only Orders are based
in part on existing functionality for PNP Plus orders, which may trade
only with other Electronic Complex Orders.\28\ ECOs may be designated
with a time-in-force of Day, IOC, FOK, or GTC, as those terms are
defined in proposed Exchange Rule 6.62P-O(b), or GTX.\29\
---------------------------------------------------------------------------
\25\ See proposed Exchange Rule 6.91P-O(b)(1).
\26\ See proposed Exchange Rule 6.91P-O(b)(1)(A).
\27\ See id.
\28\ See Exchange Rule 6.62-O(y) (describing PNP Plus orders as
ECOs that may only trade with other ECOs, but which will
continuously be repriced if locking or crossing the Complex BBO).
\29\ See proposed Exchange Rule 6.91P-O(b)(2). Proposed Exchange
Rule 6.91P-O(b) is included in the Single-Leg Pillar Filing. An ECO
designated as GTX (``ECO GTX Order'') will not be displayed, may be
entered only during the Response Time Interval of a COA, must be on
the opposite side of the COA Order, and must specify the price,
size, and side of the market. ECO GTX Orders may be modified or
cancelled during the Response Time Interval and any remaining size
that does not trade with the COA Order will be cancelled at the end
of the COA. See proposed Exchange Rule 6.91P-O(b)(2)(B).
---------------------------------------------------------------------------
Priority and Pricing of ECOs. Proposed Exchange Rule 6.91P-O(c)
describes how ECOs will be prioritized and priced on Pillar. Under the
proposal, an ECO received by the Exchange that is not executed
immediately (or cancelled) will be ranked in the Consolidated Book
according to price-time priority based on the total net price and the
time of entry of the order.\30\ When trading with the leg markets, an
ECO must trade at or within the greater of $0.05 or 5% higher (lower)
than the Away Market NBO (NBB).\31\ An ECO will trade at the prices of
the leg markets.\32\ For example, if there is sell interest in a leg
market at $1.00, and a leg of an ECO to buy could trade up to $1.05,
the ECO would trade with the leg market at $1.00. When trading with
another ECO, an ECO must trade at a price at or within the DBBO and no
leg of an ECO may trade at a price of zero.\33\ An ECO may trade
without consideration of prices of the same complex strategy available
on other exchanges.\34\ In addition, an ECO may trade in $0.01
increments regardless of the MPV otherwise applicable to any leg of the
complex strategy.\35\
---------------------------------------------------------------------------
\30\ See proposed Exchange Rule 6.91P-O(c).
\31\ See proposed Exchange Rule 6.91P-O(c)(1)(A).
\32\ See proposed Exchange Rule 6.91P-O(c)(1)(B).
\33\ See Proposed Exchange Rule 6.91P-O(c)(2).
\34\ See Proposed Exchange Rule 6.91P-O(c)(3).
\35\ See Proposed Exchange Rule 6.91P-O(c)(4).
---------------------------------------------------------------------------
Execution of ECOs at the Open (or Reopening after a Trading Halt.
With the transition to Pillar, the Exchange proposes new functionality
regarding the ECO Opening Auction Process on the Exchange, which will
apply to both to openings and reopenings following a trading halt.
Under the proposed rules, the Exchange will initiate an ECO Opening
Auction Process for a complex strategy only if all legs of the complex
strategy have opened or reopened for trading.\36\ A complex strategy
will not be opened if: (A) Any leg of the complex strategy has no BO or
NBO; (B) the bid and offer prices used to calculate the DBBO for the
complex strategy are locking or crossing; or (C) all legs of the
complex strategy include displayed Customer interest and the width of
the DBBO is less than or equal to one penny ($0.01) times the smallest
leg ratio.\37\ Any ECOs in a complex strategy with prices that lock or
cross one another will be eligible to trade in the ECO Opening Auction
Process.\38\ An ECO received during a pre-open state will not
participate in the Auction Process for the leg markets pursuant to
proposed Exchange Rule 6.64P-O.\39\ A complex strategy created intra-
day when all leg markets are open will not be subject to an ECO Opening
Auction Process and instead will trade pursuant to proposed Exchange
Rule 6.91P-O(e) regarding the handling of ECOs during Core Trading
Hours.\40\ The ECO Opening Auction Process will be used to reopen
trading in ECOs after a trading halt.\41\
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\36\ See proposed Exchange Rule 6.91P-O(d)(1).
\37\ See proposed Exchange Rule 6.91P-O(d)(1)(A)-(C).
\38\ See proposed Exchange Rule 6.91P-O(d)(2).
\39\ See proposed Exchange Rule 6.91P-O(d)(2(A).
\40\ See proposed Exchange Rule 6.91P-O(d)(2)(B).
\41\ See proposed Exchange Rule 6.91P-O(d)(2)(C).
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Proposed Exchange Rule 6.91P-O(d)(3) describes the ECO Opening
Auction Process. Under the proposed rule, locking and crossing ECOs in
a complex strategy will trade at the ECO Auction Price.\42\ The ECO
Auction Price will be the price at which the maximum volume of ECOs can
be traded in an ECO Opening Auction, subject to the proposed ECO
Auction Collar.\43\ If there
[[Page 60957]]
are no locking or crossing ECOs in a complex strategy at or within the
ECO Auction Collars, the Exchange will open the complex strategy
without a trade.\44\ An ECO to buy (sell) with a limit price at or
above (below) the upper (lower) ECO Auction Collar will be included in
the ECO Auction Price calculation at the price of the upper (lower) ECO
Auction Collar, but ranked for participation in the ECO Opening (or
Reopening) Auction Process in price-time priority based on its limit
price.\45\
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\42\ See proposed Exchange Rule 6.91P-O(d)(3)(B)(ii).
\43\ See proposed Exchange Rule 6.91P-O(d)(3)(B). The upper
(lower) price of an ECO Auction Collar for a complex strategy would
be the DBO (DBB); provided, however, that if there is displayed
Customer interest on all legs of a complex strategy, the upper
(lower) price of an ECO Auction Collar will be one penny ($0.01)
times the smallest leg ratio inside the DBO (DBB) containing
Customer interest. See proposed Exchange Rule 6.91P-O(d)(3)(A). If
there is more than one price at which the maximum volume of ECOs can
be traded within the ECO Auction Collar, the ECO Auction Price will
be the price closest to the midpoint of the ECO Auction Collar, or,
if the midpoint falls within such prices, the ECO Auction Price will
be the midpoint, provided that the ECO Auction Price would not be
lower (higher) than the highest (lowest) price of an ECO to buy
(sell) that is eligible to trade in the ECO Opening Auction Process.
If the ECO Auction Price would be a sub-penny price, it will be
rounded to the nearest whole penny. See proposed Exchange Rule
6.91P-O(d)(3)(B).
\44\ See proposed Exchange Rule 6.91P-O(d)(3)(B)(ii).
\45\ See proposed Exchange Rule 6.91P-O(d)(3)(B)(i).
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The Exchange proposes to apply existing Pillar auction
functionality regarding the processing of ECOs received during the
period when an ECO Opening Auction Process is ongoing. Under the
proposal, new ECOs and ECO Order Instructions \46\ that the Exchange
receives when the Exchange is conducting the ECO Opening Auction
Process for a complex strategy will be accepted but will not be
processed until after the conclusion of the process.\47\ An ECO Order
Instruction received during the ECO Opening Auction Process will not be
processed until after this process concludes if it relates to an ECO
that was received before the process begins and any subsequent ECO
Order Instructions relating to the ECO ill be rejected.\48\ An ECO
Order Instruction received during the ECO Opening Auction Process will
be processed on arrival if it relates to an order that was received
during the opening process.\49\
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\46\ An ``ECO Order Instruction'' is ``a request to cancel,
cancel and replace, or modify an ECO.'' See proposed Exchange Rule
6.91P-O(a)(2).
\47\ See proposed Exchange Rule 6.91P-O(d)(4).
\48\ See proposed Exchange Rule 6.91P-O(d)(4)(A).
\49\ See proposed Exchange Rule 6.91P-O(d)(4)(B).
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After the ECO Opening Auction, ECOs will be subject to the ECO
Price Protection in proposed Exchange Rule 6.91P-O(g)(2). An ECO
received before the complex strategy was opened that did not trade in
whole in the ECO Opening Auction Process and that is locking or
crossing other ECOs or leg markets in the Consolidated Book will trade
pursuant to proposed Exchange Rule 6.91P-O(e).\50\ Any ECO received
during the ECO Opening Auction Process will be processed in time
sequence relative to one another based on original entry time.\51\
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\50\ See proposed Exchange Rule 6.91P-O(d)(5)(A).
\51\ See proposed Exchange Rule 6.91P-O(d)(5)(B).
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Execution of ECOs During Core Trading Hours. Proposed Exchange Rule
6.91P-O(e) describes the processing of ECOs during Core Trading Hours.
Proposed Exchange Rule 6.91P-O(e)(1)(A) provides that if, at a price,
an incoming ECO would be eligible to trade with the leg markets (e.g.,
the order is not a Complex Only Order), the leg markets will have first
priority at that price and will trade with the incoming ECO pursuant to
proposed Exchange Rule 6.76AP-O before the incoming ECO will trade with
contra-side ECOs resting in the Consolidated Book at that price. An ECO
will not trade with orders in the leg markets designated as AON or with
an MTS modifier.\52\ An ECO that is not designated as a Complex Only
Order will be eligible to trade with the leg markets (in full or in a
permissible ratio), provided that an ECO will be ineligible to trade
with the leg markets and will be processed as a Complex Only Order if
the ECO has a strategy with: (i) More than five legs; (ii) two legs and
both legs are buying or both legs are selling, and both legs are calls
or both legs are puts; or (iii) three or more legs and all legs are
buying or all legs are selling.\53\
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\52\ See proposed Exchange Rule 6.91P-O(e)(1)(B). See also See
Single-Leg Pillar Filing (describing Minimum Trade Size or MTS
Modifier in proposed Exchange Rule 6.62P-O(i)(3)(B)).
\53\ See proposed Exchange Rule 6.91P-O(e)(1)(C).
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Any ECO or portion thereof that does not trade immediately when it
is received by the Exchange and that is designated either Day or GTC
will be ranked in the Consolidated Book pursuant to proposed Exchange
Rule 6.91P-O(c).\54\ The Exchange will evaluate trading opportunities
for a resting ECO when the leg markets comprising a complex strategy
update, provided that during periods of high message volumes, the
Exchange may reduce the evaluations to no less than ten times per one
second.\55\ ECOs that trade with the leg markets will be allocated
pursuant to Exchange Rule 6.76AP-O.\56\
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\54\ See proposed Exchange Rule 6.91P-O(e)(2).
\55\ See id.
\56\ See proposed Exchange Rule 6.91P-O(e)(3).
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Execution of ECOs During a COA. A COA Order received when a complex
strategy is open for trading will initiate a COA only on arrival,
subject to proposed Exchange Rule 6.91P-O(f)(1).\57\ A COA Order will
be rejected if entered during a pre-open state or if entered during
Core Trading Hours with a time-in-force of FOK or GTX.\58\ Only one COA
will be conducted at a time in a complex strategy.\59\
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\57\ See proposed Exchange Rule 6.91P-O(f).
\58\ See id.
\59\ See id.
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To initiate a COA, the limit price of a COA Order to buy (sell)
must be higher (lower) than the best-priced, same-side ECOs resting on
the Consolidated Book and equal to or higher (lower) than the midpoint
of the DBBO.\60\ A COA Order that does not satisfy these pricing
parameters will not initiate a COA and will be processed as an ECO.\61\
Once a COA is initiated, the Exchange will disseminate a Request for
Response message, the Response Time Interval will begin, and the
Exchange will accept RFR Responses, including GTX ECO Orders.\62\
---------------------------------------------------------------------------
\60\ See proposed Exchange Rule 6.91P-O(f)(1).
\61\ See id.
\62\ See id.
---------------------------------------------------------------------------
A COA Order to buy (sell) will initiate a COA at its limit price,
unless its limit price locks or crosses the DBO (DBB), in which case it
will initiate a COA at a price equal to one penny ($0.01) times the
smallest leg ratio inside the DBO (DBB) (the ``COA initiation
price'').\63\ Prior to initiating a COA, a COA Order to buy (sell) will
trade with any ECO to sell (buy) that is priced equal to or below
(above) one penny ($0.01) times the smallest leg ratio inside the DBO
(DBB) (i.e., priced better than the leg markets) and any unexecuted
portion of such COA Order will initiate a COA.\64\ A COA Order will not
be eligible to trade with the leg markets until after the COA ends.\65\
---------------------------------------------------------------------------
\63\ See proposed Exchange Rule 6.91P-O(f)(2).
\64\ See proposed Exchange Rule 6.91P-O(f)(2)(A).
\65\ See proposed Exchange Rule 6.91P-O(f)(2)(B).
---------------------------------------------------------------------------
A COA will end prior to the expiration of the Response Time
Interval if: (A) The Exchange receives an incoming ECO or COA Order to
buy (sell) in the same complex strategy that is priced higher (lower)
than the initiating COA Order to buy (sell); (B) the Exchange receives
an RFR Response that crosses the same-side DBBO; (C) the leg markets
update causing the same-side DBBO to lock or cross (i) any RFR
Response(s) or (ii) if no RFR Responses have been received, the best-
priced, contra-side ECOs; or (D) the leg markets update causing the
contra-side DBBO to lock or cross the COA initiation price.\66\
---------------------------------------------------------------------------
\66\ See proposed Exchange Rule 6.91P-O(f)(3).
---------------------------------------------------------------------------
At the conclusion of a COA, RFR Responses to sell (buy) will trade
in price-time priority with a COA Order to
[[Page 60958]]
buy (sell).\67\ If there is displayed Customer interest on all legs of
the DBB (DBO), RFR Responses to sell (buy) will not trade below (above)
one penny ($0.01) times the smallest leg ratio inside the DBB
(DBO).\68\ Any unexecuted balance of a COA Order (including those
designated as IOC) will be eligible to trade with any contra-side
interest, including the leg markets, unless the COA Order is designated
or treated as a Complex Only Order.\69\ Following these allocations,
any unexecuted balance of a COA Order will be processed as an ECO
pursuant to proposed Exchange Rule 6.91P-O(e).\70\
---------------------------------------------------------------------------
\67\ See proposed Exchange Rule 6.91P-O(f)(4)(A).
\68\ See id.
\69\ See proposed Exchange Rule 6.91P-O(f)(4)(B).
\70\ See proposed Exchange Rule 6.91P-O(f)(4)(C).
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A pattern or practice of submitting unrelated orders that cause a
COA to conclude early will be deemed conduct inconsistent with just and
equitable principles of trade, as will the dissemination of information
related to COA Orders to third parties.\71\
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\71\ See proposed Exchange Rule 6.91P-O(f)(5).
---------------------------------------------------------------------------
ECO Risk Checks. With the transition to Pillar, the Exchange
proposes to modify and enhance its existing risk checks for ECOs by
adopting a Complex Strategy Limit, ECO Price Protection, and Complex
Strategy Protections. Under the proposed Complex Strategy Limit, the
Exchange will establish a limit on the maximum number of new complex
strategies that may be requested to be created per MPID.\72\ When an
MPID reaches the limit on the maximum number of new complex strategies,
the Exchange will reject all requests to create new complex strategies
from that MPID for the rest of the trading day.\73\ Notwithstanding the
established Complex Strategy Limit, the Exchange may reject a request
to create a new complex strategy from any MPID whenever the Exchange
determines it is necessary in the interests of a fair and orderly
market.\74\
---------------------------------------------------------------------------
\72\ The Exchange will announce the limit on the maximum number
of new complex strategies by Trader Update. See proposed Exchange
Rule 6.91P-O(g)(1). In the Single-Leg Pillar Filing, the Exchange
has proposed to amend define MPID to mean ``the identification
number(s) assigned to the orders and quotes of a single ETP Holder,
OTP Holder, or OTP Firm for the execution and clearing of trades on
the Exchange by that permit holder. An ETP Holder, OTP Holder, or
OTP Firm may obtain multiple MPIDs and each such MPID may be
associated with one or more sub-identifiers of that MPID.''
\73\ See proposed Exchange Rule 6.91P-O(g)(1).
\74\ See id.
---------------------------------------------------------------------------
Under the ECO Price Protection, an ECO to buy (sell) will be
rejected or cancelled (if resting) if it is priced a Specified
Threshold \75\ equal to or above (below) the Reference Price, rounded
down to the nearest penny ($0.01).\76\ An ECO that arrives when a
complex strategy is open for trading will be evaluated for ECO Price
Protection on arrival.\77\ An ECO received during a pre-open state will
be evaluated for ECO Price Protection after the ECO Opening Auction
Process concludes.\78\ An ECO resting on the Consolidated Book before a
trading halt will be reevaluated for ECO Price Protection after the ECO
Opening Auction Process concludes.\79\ Cross Orders and ECOs entered on
the Trading Floor will not be subject to ECO Price Protection.\80\ ECO
Price Protection will not be applied if there is no Reference Price for
an ECO.\81\
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\75\ The Specified Threshold for calculating ECO Price
Protection will be $1.00, unless determined otherwise by the
Exchange and announced to OTP Holders and OTP Firms by Trader
Update. See proposed Exchange Rule 6.91P-O(g)(2)(C).
\76\ The Reference Price for calculating ECO Price Protection
for an ECO to buy (sell) will be the Complex NBO (NBB), provided
that, immediately following an ECO Opening Auction Process, the
Reference Price will be the ECO Auction Price or, if none, the
Complex NBO (NBB). There will be no Reference Price for an ECO if
there is no NBBO for any leg of such ECO. For purposes of
determining a Reference Price, the Exchange will not use an adjusted
NBBO. See proposed Exchange Rule 6.91P-O(g)(2)(B).
\77\ See proposed Exchange Rule 6.92P-O(g)(2)(A)(i).
\78\ See proposed Exchange Rule 6.92P-O(g)(2)(A)(ii).
\79\ See proposed Exchange Rule 6.92P-O(g)(2)(A)(iii).
\80\ See proposed Exchange Rule 6.92P-O(g)(2)(A)(iv).
\81\ See proposed Exchange Rule 6.92P-O(g)(2)(A)(v).
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Under the Complex Strategy Protections, the Exchange will reject
ECOs that are comprised of certain erroneously-priced complex
strategies.\82\ The proposed rule states that, to protect an OTP Holder
or OTP Firm that sends an ECO with the expectation that it will receive
(or pay) a net premium but has priced the ECO such that the ECO sender
will instead pay (or receive) a net premium, the Exchange will reject
any ECO that is comprised of the following erroneously-priced complex
strategies:
---------------------------------------------------------------------------
\82\ See proposed Exchange Rule 6.91P-O(g)(3), Any ECO that is
not rejected by the Complex Strategy Protections would still be
subject to the ECO Price Protection. See proposed Exchange Rule
6.92P-O(g)(3)(D).
---------------------------------------------------------------------------
``All buy'' or ``all sell'' strategies. An ECO for a
complex strategy where all legs are to buy (sell) and it is entered at
a price less than one penny ($0.01) times the sum of the number of
options in the ratio of each leg of such strategy (e.g., a complex
strategy to buy (sell) two calls and buy (sell) one put with a price
less than $0.03); \83\
---------------------------------------------------------------------------
\83\ See proposed Exchange Rule 6.92P-O(g)(3)(A).
---------------------------------------------------------------------------
Vertical spreads. A vertical spread complex strategy
consists of a leg to sell a call (put) option and a leg to buy a call
(put) option in the same option class with the same expiration but at
different strike prices, as follows: (i) An ECO for a vertical spread
to buy a lower (higher) strike call and sell a higher (lower) strike
call and the ECO sender would receive (pay) a net premium; (ii) an ECO
for a vertical spread to buy a higher (lower) strike put and sell a
lower (higher) strike put and the ECO sender would receive (pay) a net
premium; \84\ and
---------------------------------------------------------------------------
\84\ See proposed Exchange Rule 6.92P-O(g)(3)(B).
---------------------------------------------------------------------------
Calendar spreads. A calendar spread consists of a leg to
sell a call (put) option and a leg to buy a call (put) option in the
same option class at the same strike price but with different
expirations, as follows: (i) An ECO for a calendar spread to buy a call
leg with a shorter (longer) expiration while selling a call leg with a
longer (shorter) expiration and the ECO sender would pay (receive) a
net premium; (ii) an ECO for a calendar spread to buy a put leg with a
shorter (longer) expiration while selling a put leg with a longer
(shorter) expiration and the ECO sender would pay (receive) a net
premium.\85\
---------------------------------------------------------------------------
\85\ See proposed Exchange Rule 6.92P-O(g)(3)(C).
---------------------------------------------------------------------------
Rule 6.47A-O: Order Exposure Requirements--OX
The Exchange also proposes conforming, non-substantive amendments
to Exchange Rule 6.47A-O, regarding order exposure, to add a cross-
reference to new Exchange Pillar Rule 6.91P-O. This proposed amendment
wwill extend the exemption from the order exposure requirements to COAs
on Pillar.\86\ The Exchange also proposes to modify the reference to
``Complex Order Auction Process (`COA')'' to simply ``Complex Order
Auction (`COA'),'' consistent with the way this concept is defined in
proposed Exchange Rule 6.91P-O(a)(7).
---------------------------------------------------------------------------
\86\ See proposed Exchange Rule 6.47A-O(iii). Consistent with
the Single-Leg Pillar Filing, the Exchange also proposes to replace
reference to ``OX'' with ``the Exchange.''
---------------------------------------------------------------------------
As described more fully in the Notice, the Exchange believes that
the proposal will promote clarity and transparency regarding the
trading of ECOs on Pillar. The Exchange states that the proposed price-
time priority model for Pillar and the pricing requirements for ECO
trading are substantively the same as the Exchange's current price-time
priority model and pricing requirements. In addition, the Exchange
states that the proposed ECO auction process maintains the fundamentals
of an auction process that the Exchange currently uses for ECOs while
enhancing the process by incorporating Pillar auction functionality
that is
[[Page 60959]]
currently available on the Exchange's cash equity platform. The
Exchange states that the proposed ECO risk checks are similar to
functionality currently available on the Exchange or on other
exchanges.
III. Proceedings To Determine Whether To Approve or Disapprove SR-
NYSEArca-2021-68 and Grounds for Disapproval Under Consideration
The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \87\ to determine whether the proposed rule
change should be approved or disapproved. Institution of such
proceedings is appropriate at this time in view of the legal and policy
issues raised by the proposed rule change. Institution of proceedings
does not indicate that the Commission has reached any conclusions with
respect to any of the issues involved. Rather, as described below, the
Commission seeks and encourages interested persons to provide comments
on the proposed rule change.
---------------------------------------------------------------------------
\87\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
Pursuant to Section 19(b)(2)(B) of the Act,\88\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of the proposed rule change's consistency with Section 6(b)(5)
of the Act,\89\ which requires, among other things, that the rules of a
national securities exchange be ``designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, . . . 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,'' \90\ and
not be designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.\91\
---------------------------------------------------------------------------
\88\ Id.
\89\ 15 U.S.C. 78f(b)(5).
\90\ Id.
\91\ See id.
---------------------------------------------------------------------------
IV. Procedure: Request for Written Comments
The Commission requests that interested persons provide written
submissions of their data, views, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposed rule change
is consistent with Section 6(b)(5) or any other provisions of the Act,
or rules and regulations thereunder. Although there do not appear to be
any issues relevant to approval or disapproval that would be
facilitated by an oral presentation of data, views, and arguments, the
Commission will consider, pursuant to Rule 19b-4 under the Act,\92\ any
request for an opportunity to make an oral presentation.\93\
---------------------------------------------------------------------------
\92\ 17 CFR 240.19b-4.
\93\ Section 19(b)(2) of the Act, as amended by the Securities
Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), grants to
the Commission flexibility to determine what type of proceeding--
either oral or notice and opportunity for written comments--is
appropriate for consideration of a particular proposal by a self-
regulatory organization. See Securities Acts Amendments of 1975,
Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75,
94th Cong., 1st Sess. 30 (1975).
---------------------------------------------------------------------------
Interested persons are invited to submit written data, views, and
arguments regarding whether the proposed rule change should be approved
or disapproved by November 26, 2021. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
December 9, 2021. The Commission asks that commenters address the
sufficiency and merit of the Exchange's statements in support of the
proposal, in addition to any other issues raised by the proposed rule
change raised under 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 No. SR-NYSEArca-2021-68 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 No. SR-NYSEArca-2021-68. The 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 No. SR-NYSEArca-2021-68 and should be submitted by
November 26, 2021. Rebuttal comments should be submitted by December 9,
2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\94\
---------------------------------------------------------------------------
\94\ 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(57).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-24014 Filed 11-3-21; 8:45 am]
BILLING CODE 8011-01-P
