Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend 6.41P-O, 71389-71391 [2022-25357]
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Federal Register / Vol. 87, No. 224 / Tuesday, November 22, 2022 / Notices
SECURITIES AND EXCHANGE
COMMISSION
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96333; File No. SR–
NYSEARCA–2022–77]
[Release No. 34–96335; File No. SRCboeBZX–2022–043]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of
Withdrawal of a Proposed Rule Change
To Amend Exchange Rule 14.11(d) To
Accommodate Exchange Listing and
Trading of Options-Linked Securities
November 16, 2022.
On August 18, 2022, Cboe BZX
Exchange, Inc. (‘‘BZX’’ or ‘‘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 BZX Rule 14.11(d) to
accommodate the listing and trading of
Options-Linked Securities.
The proposed rule change was
published for comment in the Federal
Register on September 8, 2022.3 On
October 14, 2022, 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 disapprove the proposed
rule change.5 The Commission received
no comment letters on the proposed rule
change.
On November 10, 2022, the Exchange
withdrew the proposed rule change
(SR–CboeBZX–2022–043).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022–25359 Filed 11–21–22; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend 6.41P–O
November 16, 2022.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
November 9, 2022, NYSE Arca, Inc.
(‘‘NYSE Arca’’ 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 amend
6.41P–O (Price Reasonability Checks—
Orders and Quotes). 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.
khammond on DSKJM1Z7X2PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1 15
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 95655
(Sept. 1, 2022), 87 FR 55068.
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 96077,
87 FR 63830 (Oct. 20, 2022).
6 17 CFR 200.30–3(a)(12).
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17:48 Nov 21, 2022
Jkt 259001
1. Purpose
The Exchange proposes to amend
Rule 6.41P–O (Price Reasonability
Checks—Orders and Quotes) to modify
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
71389
the application of certain risk checks on
Pillar as set forth below.
The Exchange recently revised Rule
6.41P–O to clarify the application of the
‘‘Price Reasonability Checks’’ to orders
and quotes, which include the Arbitrage
Check and the Intrinsic Value Check
(collectively, the ‘‘Checks’’), when such
Checks rely on last sale information.4 In
particular, the Exchange modified the
rule to reflect Pillar functionality that
excluded from the Checks those
transactions (such as odd lot
transactions) that are not ‘‘last-sale
eligible.’’ However, the Exchange has
determined to modify the operation of
the Checks under Pillar such that they
apply to trades in underlying securities
of any size, including odd lots.5 The
Exchange believes that applying the
Checks based on a broader range of
underlying transactions—both round
lots and odd lots—would enhance the
efficacy of the Checks as this proposed
functionality would provide a better
representation of the trade prices
occurring in the underlying market.6 As
such, the Exchange believes that the
proposed functionality would continue
to provide price protection to OTP
Holders and OTP Firms.
As proposed, the Arbitrage Check
would reject or cancel (if resting) a buy
order or quote for call options if the
price of the order or quote is equal to
or greater than the price of the last trade
(of any size) of the underlying security
on the Primary Market, plus a specified
threshold to be determined by the
Exchange and announced by Trader
Update.7 Regarding the Intrinsic Value
Check, the Exchange proposes that the
Intrinsic Value of a put option would be
equal to the strike price minus the price
of the last trade (of any size) of the
underlying security on the Primary
Market’’ and the Intrinsic Value of a call
option would be equal to the price of
4 See Rule 6.41P–O(b) and (c) (describing the
Arbitrage Check and the Intrinsic Value Check,
respectively). See Securities Exchange Act Release
No. 95088 (June 13, 2022), 87FR 36556 (June 17,
2022) (SR–NYSEArca–2022–34) (immediately
effective filing to modify Rule 6.41P–O(b) and (c)
to use as a basis for the Check ‘‘the price of the
last—sale eligible trade’’ of the underlying security,
rather than the ‘‘last sale price’’ of the underlying
security).
5 The Exchange notes, prior to migrating to Pillar,
the Exchange included odd lots in its application
of the Arbitrage Check and Intrinsic Value Check,
per Rules 6.60–O (Price Protection—Orders) and
6.61–O (Price Protection—Quotes). See also NYSE
American LLC (‘‘NYSE American’’) Rules 967NY
(c)(1), (2) and 967.1NY (regarding the application of
Arbitrage Checks and Intrinsic Value Checks to
orders and quotes, respectively).
6 The Exchange notes that trades in higher-priced
underlying securities tend to be odd lots, which
highlights the importance of capturing such trades
in the Checks.
7 See Rule 6.41P–O(b)(2).
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Federal Register / Vol. 87, No. 224 / Tuesday, November 22, 2022 / Notices
the last trade (of any size) of the
underlying security on the Primary
Market minus the strike price.8
In addition, the Exchange proposes a
conforming change to delete Rule
6.41P–O(a)(3)(iv) as no longer
applicable, because the Checks would
no longer impose a size/last sale eligible
trade condition restriction on the
underlying trade.9 The Exchange
believes this proposed rule change
would align with the proposed
functionality and add clarity and
transparency to Exchange rules making
them easier to navigate and
comprehend.
2. Statutory Basis
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The proposed rule change is
consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),10 in general, and furthers the
objectives of Section 6(b)(5),11 in
particular, because 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, 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.
The Exchange believes that the
proposed rule change to modify the
operation of the Checks to apply to
transactions of any size—whether odd
lots or round lots—would promote just
and equitable principles of trade and
remove impediments to and perfect the
mechanism of a free and open market
and a national market system and
protect investors because the Checks
would be applied to a broader spectrum
of trade prices in underlying securities,
which would enhance the efficacy of the
Checks to the benefit of investors and
the investing public. As such, the
Exchange believes that the proposed
functionality would continue to provide
price protection to OTP Holders and
OTP Firms.
The proposed non-substantive
conforming changes would add clarity,
transparency, and internal consistency
to Exchange rules making them easier to
comprehend.
8 See
Rule 6.41P–O(c)(1), (2).
proposed Rule 6.41P–O(a)(3). The Exchange
also proposes to make non-substantive conforming
changes to this paragraph, including by
renumbering, which changes add clarity,
transparency, and internal consistency to Exchange
rules. See id.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
9 See
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17:48 Nov 21, 2022
Jkt 259001
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed change is not intended to
address competition, but rather to
modify the operation of the Exchange’s
Checks by accounting for trade prices in
underlying transactions of any size
(both odd lots and round lots), which
would impact (and benefit) all similarlysituated market participants.
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
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).
13 17
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
immediately. The Commission believes
that waiver of the operative delay is
consistent with the protection of
investors and the public interest
because it will provide enhanced price
protection checks to market participants
without delay. Accordingly, the
Commission hereby waives the 30-day
operative delay and designates the
proposal operative upon filing.18
At any time within 60 days of the
filing of 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–
NYSEARCA–2022–77 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–NYSEARCA–2022–77. 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
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).
19 15 U.S.C. 78s(b)(2)(B).
E:\FR\FM\22NON1.SGM
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Federal Register / Vol. 87, No. 224 / Tuesday, November 22, 2022 / Notices
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSEARCA–2022–77 and
should be submitted on or before
December 13, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022–25357 Filed 11–21–22; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #17706 and #17707;
TEXAS Disaster Number TX–00645]
Administrative Declaration of a
Disaster for the State of Texas
Small Business Administration.
ACTION: Notice.
AGENCY:
This is a notice of an
Administrative declaration of a disaster
for the State of Texas dated 11/16/2022.
Incident: Severe Storms and
Tornadoes.
Incident Period: 11/04/2022.
DATES: Issued on 11/16/2022.
Physical Loan Application Deadline
Date: 01/17/2023.
Economic Injury (EIDL) Loan
Application Deadline Date: 08/16/2023.
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,
khammond on DSKJM1Z7X2PROD with NOTICES
SUMMARY:
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
Administrator’s disaster declaration,
applications for disaster loans may be
filed at the address listed above or other
locally announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: Lamar, Morris.
Contiguous Counties:
Texas: Bowie, Camp, Cass, Delta,
Fannin, Franklin, Marion, Red
River, Titus, Upshur.
Oklahoma: Bryan, Choctaw.
The Interest Rates are:
Percent
For Physical Damage:
Homeowners with Credit Available Elsewhere ......................
Homeowners without Credit
Available Elsewhere ..............
Businesses with Credit Available Elsewhere ......................
Businesses without Credit
Available Elsewhere ..............
Non-Profit Organizations with
Credit Available Elsewhere ...
Non-Profit Organizations without Credit Available Elsewhere .....................................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives without Credit
Available Elsewhere ..............
Non-Profit Organizations without Credit Available Elsewhere .....................................
17:48 Nov 21, 2022
6.610
3.305
2.375
2.375
3.305
2.375
(Catalog of Federal Domestic Assistance
Number 59008)
Dated: November 16, 2022.
Isabella Guzman,
Administrator.
[FR Doc. 2022–25437 Filed 11–21–22; 8:45 am]
BILLING CODE 8026–09–P
Jkt 259001
The meeting will be held on
Thursday, December 8, 2022, from 9
a.m. to 12 p.m. Pacific Time.
Requests to attend the meeting must
be received by Monday, November 21,
2022.
Requests for accommodations to a
disability must be received by
November 21, 2022.
Requests to submit written materials
to be reviewed during the meeting must
be received no later than Monday,
November 21, 2022.
ADDRESSES: The meeting will be held at
the NASA AMES Conference Center
Building 3, 500 Severyns Avenue,
Moffett Field, CA 94035, and virtually
on Microsoft Teams. However, if the
FAA is unable to hold the meeting in
person due to circumstances outside of
its control, the FAA will hold a virtual
meeting and notify registrants with the
meeting details and post any updates on
the FAA Committee website. Members
of the public who wish to observe the
meeting must RSVP by emailing 9-awaarac@faa.gov. General committee
information including copies of the
meeting minutes will be available on the
FAA Committee website at https://
www.faa.gov/regulations_policies/
rulemaking/committees/documents/.
FOR FURTHER INFORMATION CONTACT:
Lakisha Pearson, Federal Aviation
Administration, 800 Independence
Avenue SW, Washington, DC 20591,
telephone (202) 267–4191; email 9-awaarac@faa.gov. Any committee-related
request should be sent to the person
listed in this section.
SUPPLEMENTARY INFORMATION:
DATES:
I. Background
ARAC was created under the Federal
Advisory Committee Act (FACA), in
accordance with Title 5 of the United
States Code (5 U.S.C. App. 2) to provide
advice and recommendations to the
FAA concerning rulemaking activities,
such as aircraft operations, airman and
air agency certification, airworthiness
standards and certification, airports,
maintenance, noise, and training.
II. Agenda
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Aviation Rulemaking Advisory
Committee; Meeting
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of Aviation Rulemaking
Advisory Committee (ARAC) meeting.
AGENCY:
This notice announces a
meeting of the ARAC.
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
2.313
The number assigned to this disaster
for physical damage is 17706 C and for
economic injury is 17707 0.
The States which received an EIDL
Declaration # is Oklahoma, Texas.
SUMMARY:
20 17
4.625
71391
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At the meeting, the agenda will cover
the following topics:
• Status Report from the FAA
• Status Updates:
Æ Active Working Groups
Æ Transport Airplane and Engine (TAE)
Subcommittee
• Recommendation Reports
• Any Other Business
The detailed agenda will be posted on
the FAA Committee website address
listed in the ADDRESSES section at least
one week in advance of the meeting.
E:\FR\FM\22NON1.SGM
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]]>Agencies
[Federal Register Volume 87, Number 224 (Tuesday, November 22, 2022)]
[Notices]
[Pages 71389-71391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25357]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96333; File No. SR-NYSEARCA-2022-77]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend 6.41P-O
November 16, 2022.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on November 9, 2022, NYSE Arca, Inc. (``NYSE Arca'' 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 amend 6.41P-O (Price Reasonability
Checks--Orders and Quotes). The proposed rule change is available on
the Exchange's website at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 6.41P-O (Price Reasonability
Checks--Orders and Quotes) to modify the application of certain risk
checks on Pillar as set forth below.
The Exchange recently revised Rule 6.41P-O to clarify the
application of the ``Price Reasonability Checks'' to orders and quotes,
which include the Arbitrage Check and the Intrinsic Value Check
(collectively, the ``Checks''), when such Checks rely on last sale
information.\4\ In particular, the Exchange modified the rule to
reflect Pillar functionality that excluded from the Checks those
transactions (such as odd lot transactions) that are not ``last-sale
eligible.'' However, the Exchange has determined to modify the
operation of the Checks under Pillar such that they apply to trades in
underlying securities of any size, including odd lots.\5\ The Exchange
believes that applying the Checks based on a broader range of
underlying transactions--both round lots and odd lots--would enhance
the efficacy of the Checks as this proposed functionality would provide
a better representation of the trade prices occurring in the underlying
market.\6\ As such, the Exchange believes that the proposed
functionality would continue to provide price protection to OTP Holders
and OTP Firms.
---------------------------------------------------------------------------
\4\ See Rule 6.41P-O(b) and (c) (describing the Arbitrage Check
and the Intrinsic Value Check, respectively). See Securities
Exchange Act Release No. 95088 (June 13, 2022), 87FR 36556 (June 17,
2022) (SR-NYSEArca-2022-34) (immediately effective filing to modify
Rule 6.41P-O(b) and (c) to use as a basis for the Check ``the price
of the last--sale eligible trade'' of the underlying security,
rather than the ``last sale price'' of the underlying security).
\5\ The Exchange notes, prior to migrating to Pillar, the
Exchange included odd lots in its application of the Arbitrage Check
and Intrinsic Value Check, per Rules 6.60-O (Price Protection--
Orders) and 6.61-O (Price Protection--Quotes). See also NYSE
American LLC (``NYSE American'') Rules 967NY (c)(1), (2) and 967.1NY
(regarding the application of Arbitrage Checks and Intrinsic Value
Checks to orders and quotes, respectively).
\6\ The Exchange notes that trades in higher-priced underlying
securities tend to be odd lots, which highlights the importance of
capturing such trades in the Checks.
---------------------------------------------------------------------------
As proposed, the Arbitrage Check would reject or cancel (if
resting) a buy order or quote for call options if the price of the
order or quote is equal to or greater than the price of the last trade
(of any size) of the underlying security on the Primary Market, plus a
specified threshold to be determined by the Exchange and announced by
Trader Update.\7\ Regarding the Intrinsic Value Check, the Exchange
proposes that the Intrinsic Value of a put option would be equal to the
strike price minus the price of the last trade (of any size) of the
underlying security on the Primary Market'' and the Intrinsic Value of
a call option would be equal to the price of
[[Page 71390]]
the last trade (of any size) of the underlying security on the Primary
Market minus the strike price.\8\
---------------------------------------------------------------------------
\7\ See Rule 6.41P-O(b)(2).
\8\ See Rule 6.41P-O(c)(1), (2).
---------------------------------------------------------------------------
In addition, the Exchange proposes a conforming change to delete
Rule 6.41P-O(a)(3)(iv) as no longer applicable, because the Checks
would no longer impose a size/last sale eligible trade condition
restriction on the underlying trade.\9\ The Exchange believes this
proposed rule change would align with the proposed functionality and
add clarity and transparency to Exchange rules making them easier to
navigate and comprehend.
---------------------------------------------------------------------------
\9\ See proposed Rule 6.41P-O(a)(3). The Exchange also proposes
to make non-substantive conforming changes to this paragraph,
including by renumbering, which changes add clarity, transparency,
and internal consistency to Exchange rules. See id.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\10\ in general, and
furthers the objectives of Section 6(b)(5),\11\ in particular, because
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, 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change to modify the
operation of the Checks to apply to transactions of any size--whether
odd lots or round lots--would promote just and equitable principles of
trade and remove impediments to and perfect the mechanism of a free and
open market and a national market system and protect investors because
the Checks would be applied to a broader spectrum of trade prices in
underlying securities, which would enhance the efficacy of the Checks
to the benefit of investors and the investing public. As such, the
Exchange believes that the proposed functionality would continue to
provide price protection to OTP Holders and OTP Firms.
The proposed non-substantive conforming changes would add clarity,
transparency, and internal consistency to Exchange rules making them
easier to comprehend.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed change is not
intended to address competition, but rather to modify the operation of
the Exchange's Checks by accounting for trade prices in underlying
transactions of any size (both odd lots and round lots), which would
impact (and benefit) all similarly-situated market participants.
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.
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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 provide enhanced price protection
checks to market participants without delay. Accordingly, the
Commission hereby waives the 30-day operative delay and designates the
proposal operative upon filing.\18\
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\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).
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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.
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\19\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NYSEARCA-2022-77 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-NYSEARCA-2022-77. 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
[[Page 71391]]
Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEARCA-2022-77 and should be submitted
on or before December 13, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-25357 Filed 11-21-22; 8:45 am]
BILLING CODE 8011-01-P
