Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Rule 7.31, 4252-4254 [2023-01277]
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Federal Register / Vol. 88, No. 15 / Tuesday, January 24, 2023 / Notices
as well as what types of accounts and
services are appropriate for their needs.
The information that must be
collected pursuant to Rule 17a–14 and
Form CRS is necessary to provide
broker-dealer retail customers,
prospective retail customers, and the
Commission with information about the
relationships and services the firm
offers to retail investors, fees and costs
that the retail investor will pay, specific
conflicts of interest and standards of
conduct, legal or disciplinary history,
and how to obtain additional
information about the firm. The
Commission uses the information to
manage its regulatory and examination
programs. Clients can use the
information required in the relationship
summary to determine whether to hire
or retain a broker-dealer, as well as what
types of accounts and services are
appropriate for their needs. The
information will therefore help establish
a framework that protects investors and
promotes efficiency, competition, and
capital formation.
The aggregate annual hour burden for
all respondents to comply with the
information collection requirements of
Rule 17a–14 and Form CRS is estimated
to be approximately 6,098,916 hours per
year. Under Rule 17a–14 and Form CRS,
respondents will also incur cost
burdens. The aggregate annual cost
burden for all respondents is estimated
to be approximately $181,194 per year.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
>www.reginfo.gov<. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent by
February 23, 2023 to (i)
>MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov< and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: January 18, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–01254 Filed 1–23–23; 8:45 am]
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SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–817, OMB Control No.
3235–0771]
Submission for OMB Review;
Comment Request; Extension: Rule
3a71–3(d)
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rule 3a71–3(d), (17 CFR 240.3a71–3(d)),
under the Securities Exchange Act of
1934 (‘‘Exchange Act’’) (15 U.S.C. 78a et
seq.).
Rule 3a71–3 under the Exchange Act
provides in part that, for purposes of
determining whether they can avail
themselves of the de minimis exception
to the ‘‘security-based swap dealer’’
definition, non-U.S. persons must count
certain dealing transactions with nonU.S. counterparties that have been
‘‘arranged, negotiated, or executed’’ by
personnel in the United States. Rule
3a71–3(d) provides an exception from
that ‘‘arranged, negotiated, or executed’’
counting requirement.
The Commission estimates that up to
24 entities may seek to rely on the
exception to the de minimis counting
requirement of Rule 3a71–3. In
connection with the conditions to the
exception, each of those up to 24
entities would make use of an affiliated
registered security-based swap dealer or
registered broker. In general, the
registered entity would be required to
comply with the collections of
information. Applications for ‘‘listed
jurisdiction’’ status may be submitted by
the up to 24 relying entities, but the staff
believes that the greater portion of such
applications will be submitted by
foreign financial authorities.
The Commission estimates that the
total annual time burden for Rule 3a71–
3(d), for all respondents, is
approximately 235,243 hours per year.
In addition, the Commission estimates
that the total annual cost burden for
Rule 3a71–3(d), for all respondents, is
approximately $1,242,595 per year. A
detailed break-down of the burdens is
provided in the supporting statement.
An agency may not conduct or
sponsor, and a person is not required to
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respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent by
February 23, 2023 to (i)
www.reginfo.gov/public/do/PRAMain
and (ii) David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549, or by sending an email to:
PRA_Mailbox@sec.gov.
Dated: January 18, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–01250 Filed 1–23–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96701; File No. SR–NYSE–
2023–03]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify Rule
7.31
January 18, 2023.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January 4,
2023, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify
Rule 7.31 regarding MPL–IOC Orders.
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.
1 15
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 88, No. 15 / Tuesday, January 24, 2023 / Notices
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.
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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 7.31 regarding MPL–IOC Orders.
Rule 7.31(d)(3) defines a Mid-Point
Liquidity Order (‘‘MPL Order’’) as a
Limit Order to buy (sell) that is not
displayed and does not route, with a
working price at the lower (higher) of
the midpoint of the PBBO or its limit
price. An MPL Order may be entered
during any Exchange trading session, is
ranked Priority 3—Non-Display Orders,
and does not participate in auctions. An
MPL Order to buy (sell) must be
designated with a limit price in the
minimum price variation for the
security and will be eligible to trade at
its working price.3 If there is no PBB or
PBO, or if the PBBO is locked or
crossed, an arriving or resting MPL
Order will not be eligible to trade until
the PBBO is not locked or crossed. If a
resting MPL Order to buy (sell) trades
with another MPL Order to sell (buy)
after the PBBO is unlocked or
uncrossed, the MPL Order with the later
working time will be the liquidityremoving order.4
An Aggressing MPL Order to buy
(sell) will trade at the working price of
resting orders to sell (buy) when such
resting orders have a working price at or
below (above) the working price of the
MPL Order. Resting MPL Orders to buy
(sell) will trade against all Aggressing
Orders to sell (buy) priced at or below
(above) the working price of the MPL
Order.5
Currently, Rule 7.31(d)(3)(D) provides
that an MPL Order may be designated
with an Immediate-or-Cancel (‘‘IOC’’)
Modifier (an ‘‘MPL–IOC Order’’). An
MPL Order designated IOC will be
3 See
Rule 7.31(d)(3)(A).
Rule 7.31(d)(3)(B).
5 See Rule 7.31(d)(3)(C).
4 See
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traded in whole or in part on the
Exchange as soon as such order is
received, and any untraded quantity
will be cancelled.6 Rule 7.31(d)(3)(D)
further provides that, subject to the IOC
Modifier, an MPL–IOC Order follows
the same trading and priority rules as an
MPL Order (as described above), except
that an MPL–IOC Order will be rejected
if (i) the order entry size is less than one
round lot or (ii) there is no PBBO or the
PBBO is locked or crossed.
The Exchange proposes to modify
Rule 7.31(d)(3)(D) to permit MPL–IOC
Orders to be entered in any size and
thus proposes to eliminate rule text
currently providing that an MPL–IOC
Order would be rejected if entered in a
quantity less than one round lot. The
Exchange believes that requiring MPL–
IOC Orders to be entered in round lots
is unnecessary and that providing
member organizations with the option
to enter MPL–IOC Orders in odd lots
could increase liquidity and enhance
opportunities for order execution on the
Exchange. The Exchange notes that
permitting odd-lot order quantities is
not novel on the Exchange or other cash
equity exchanges and believes that this
proposed change would align the
Exchange’s handling of MPL–IOC
Orders with the treatment of equivalent
order types on other cash equity
exchanges.7
Because of the technology changes
associated with this proposed rule
change, the Exchange will announce the
implementation date by Trader Update,
which, subject to effectiveness of this
proposed rule change, will be in the first
quarter of 2023.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,8
in general, and furthers the objectives of
Section 6(b)(5),9 in particular, because it
is designed to prevent fraudulent and
6 See
Rule 7.31(b)(2) (defining IOC Modifier).
e.g., Members Exchange Rules 11.8(c)(1)
and (2) (providing that a Midpoint Peg Order may
be designated IOC and may be entered as an odd
lot, round lot, or mixed lot); Cboe EDGX Exchange,
Inc. Rules 11.8(d)(1) and (2) (providing that a
MidPoint Peg Order may have an IOC instruction
and may be entered as an odd lot, round lot, or
mixed lot); Cboe EDGA Exchange, Inc. Rules
11.8(d)(1) and (2) (same). The Exchange also notes
that the rules of the Nasdaq Stock Market LLC
(‘‘Nasdaq’’), Cboe BZX Exchange, Inc. (‘‘BZX’’), and
Cboe BYX Exchange, Inc. (‘‘BYX’’) appear to permit
orders, including orders analogous to MPL–IOC
Orders, to be entered in any size. See Nasdaq Rule
4703(b) (providing that an order may be entered in
any whole share size, except as otherwise
provided); BZX Rule 11.2 (providing that orders are
eligible for odd-lot, round-lot, and mixed-lot
executions unless otherwise indicated); BYX Rule
11.2 (same).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
7 See,
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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 change would promote just
and equitable principles of trade,
remove impediments to, and perfect the
mechanism of, a free and open market
and a national market system, and
protect investors and the public interest
because it would provide member
organizations with the option to enter
MPL–IOC Orders in odd-lot sized
orders, which could encourage order
flow to the Exchange and promote
opportunities for order execution on the
Exchange, to the benefit of all market
participants. The Exchange notes that
the proposed change would not
otherwise impact the operation of MPL–
IOC Orders as provided under current
Exchange rules. The Exchange also
believes that the proposed change
would align Exchange rules with the
treatment of orders analogous to MPL–
IOC Orders on other cash equity
exchanges, thereby removing
impediments to, and perfecting the
mechanism of, a free and open market
and a national market system.10
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. As noted
above, the Exchange believes the
proposed rule change would allow the
Exchange to accept MPL–IOC Orders of
any size and align the Exchange’s
handling of such orders with other cash
equity exchanges’ handling of similar
order types,11 thereby promoting
competition among exchanges by
offering member organizations options
available on other cash equity
exchanges. The Exchange also believes
that, to the extent the proposed change
would increase opportunities for order
execution, the proposed change would
promote competition by making the
Exchange a more attractive venue for
order flow and enhancing market
quality for all market participants.
10 See
note 7, supra.
11 Id.
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Federal Register / Vol. 88, No. 15 / Tuesday, January 24, 2023 / Notices
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
Because the foregoing proposed rule
change does not: (i) significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 12 and
subparagraph (f)(6) of Rule 19b–4
thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),15 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 to allow the Exchange to
implement the proposal as soon as
possible. The Exchange states that the
proposed change would align the
Exchange’s treatment of MPL–IOC
Orders with treatment of similar order
types on other cash equity exchanges
and allow the Exchange to accept MPL–
IOC Orders of any size as soon as the
technology associated with the
proposed change is available, which is
anticipated to be less than 30 days from
the date of this filing. The Commission
believes that waiver of the 30-day
operative delay is consistent with the
protection of investors and the public
interest because the proposal does not
raise any new or novel issues.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.16
12 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires the Exchange 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
satisfied this requirement.
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
16 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
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13 17
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At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSE–2023–03 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2023–03. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange.
All comments received will be posted
without change. Persons submitting
comments are cautioned that we do not
redact or edit personal identifying
information from comment submissions.
You should submit only information
that you wish to make available
publicly. All submissions should refer
to File Number SR–NYSE–2023–03 and
should be submitted on or before
February 14, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–01277 Filed 1–23–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96695; File No. SR–
NYSEARCA–2023–04]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify Rule 7.31–E
January 18, 2023.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January 4,
2023, 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 and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify
Rule 7.31–E regarding MPL–IOC Orders.
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
17 17
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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]]>Agencies
[Federal Register Volume 88, Number 15 (Tuesday, January 24, 2023)]
[Notices]
[Pages 4252-4254]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01277]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96701; File No. SR-NYSE-2023-03]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify Rule 7.31
January 18, 2023.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 4, 2023, New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 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 modify Rule 7.31 regarding MPL-IOC Orders.
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.
[[Page 4253]]
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 7.31 regarding MPL-IOC Orders.
Rule 7.31(d)(3) defines a Mid-Point Liquidity Order (``MPL Order'')
as a Limit Order to buy (sell) that is not displayed and does not
route, with a working price at the lower (higher) of the midpoint of
the PBBO or its limit price. An MPL Order may be entered during any
Exchange trading session, is ranked Priority 3--Non-Display Orders, and
does not participate in auctions. An MPL Order to buy (sell) must be
designated with a limit price in the minimum price variation for the
security and will be eligible to trade at its working price.\3\ If
there is no PBB or PBO, or if the PBBO is locked or crossed, an
arriving or resting MPL Order will not be eligible to trade until the
PBBO is not locked or crossed. If a resting MPL Order to buy (sell)
trades with another MPL Order to sell (buy) after the PBBO is unlocked
or uncrossed, the MPL Order with the later working time will be the
liquidity-removing order.\4\
---------------------------------------------------------------------------
\3\ See Rule 7.31(d)(3)(A).
\4\ See Rule 7.31(d)(3)(B).
---------------------------------------------------------------------------
An Aggressing MPL Order to buy (sell) will trade at the working
price of resting orders to sell (buy) when such resting orders have a
working price at or below (above) the working price of the MPL Order.
Resting MPL Orders to buy (sell) will trade against all Aggressing
Orders to sell (buy) priced at or below (above) the working price of
the MPL Order.\5\
---------------------------------------------------------------------------
\5\ See Rule 7.31(d)(3)(C).
---------------------------------------------------------------------------
Currently, Rule 7.31(d)(3)(D) provides that an MPL Order may be
designated with an Immediate-or-Cancel (``IOC'') Modifier (an ``MPL-IOC
Order''). An MPL Order designated IOC will be traded in whole or in
part on the Exchange as soon as such order is received, and any
untraded quantity will be cancelled.\6\ Rule 7.31(d)(3)(D) further
provides that, subject to the IOC Modifier, an MPL-IOC Order follows
the same trading and priority rules as an MPL Order (as described
above), except that an MPL-IOC Order will be rejected if (i) the order
entry size is less than one round lot or (ii) there is no PBBO or the
PBBO is locked or crossed.
---------------------------------------------------------------------------
\6\ See Rule 7.31(b)(2) (defining IOC Modifier).
---------------------------------------------------------------------------
The Exchange proposes to modify Rule 7.31(d)(3)(D) to permit MPL-
IOC Orders to be entered in any size and thus proposes to eliminate
rule text currently providing that an MPL-IOC Order would be rejected
if entered in a quantity less than one round lot. The Exchange believes
that requiring MPL-IOC Orders to be entered in round lots is
unnecessary and that providing member organizations with the option to
enter MPL-IOC Orders in odd lots could increase liquidity and enhance
opportunities for order execution on the Exchange. The Exchange notes
that permitting odd-lot order quantities is not novel on the Exchange
or other cash equity exchanges and believes that this proposed change
would align the Exchange's handling of MPL-IOC Orders with the
treatment of equivalent order types on other cash equity exchanges.\7\
---------------------------------------------------------------------------
\7\ See, e.g., Members Exchange Rules 11.8(c)(1) and (2)
(providing that a Midpoint Peg Order may be designated IOC and may
be entered as an odd lot, round lot, or mixed lot); Cboe EDGX
Exchange, Inc. Rules 11.8(d)(1) and (2) (providing that a MidPoint
Peg Order may have an IOC instruction and may be entered as an odd
lot, round lot, or mixed lot); Cboe EDGA Exchange, Inc. Rules
11.8(d)(1) and (2) (same). The Exchange also notes that the rules of
the Nasdaq Stock Market LLC (``Nasdaq''), Cboe BZX Exchange, Inc.
(``BZX''), and Cboe BYX Exchange, Inc. (``BYX'') appear to permit
orders, including orders analogous to MPL-IOC Orders, to be entered
in any size. See Nasdaq Rule 4703(b) (providing that an order may be
entered in any whole share size, except as otherwise provided); BZX
Rule 11.2 (providing that orders are eligible for odd-lot, round-
lot, and mixed-lot executions unless otherwise indicated); BYX Rule
11.2 (same).
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Because of the technology changes associated with this proposed
rule change, the Exchange will announce the implementation date by
Trader Update, which, subject to effectiveness of this proposed rule
change, will be in the first quarter of 2023.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\8\ in general, and furthers the objectives of Section 6(b)(5),\9\
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.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed change would promote just
and equitable principles of trade, remove impediments to, and perfect
the mechanism of, a free and open market and a national market system,
and protect investors and the public interest because it would provide
member organizations with the option to enter MPL-IOC Orders in odd-lot
sized orders, which could encourage order flow to the Exchange and
promote opportunities for order execution on the Exchange, to the
benefit of all market participants. The Exchange notes that the
proposed change would not otherwise impact the operation of MPL-IOC
Orders as provided under current Exchange rules. The Exchange also
believes that the proposed change would align Exchange rules with the
treatment of orders analogous to MPL-IOC Orders on other cash equity
exchanges, thereby removing impediments to, and perfecting the
mechanism of, a free and open market and a national market system.\10\
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\10\ See note 7, supra.
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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. As noted above, the Exchange
believes the proposed rule change would allow the Exchange to accept
MPL-IOC Orders of any size and align the Exchange's handling of such
orders with other cash equity exchanges' handling of similar order
types,\11\ thereby promoting competition among exchanges by offering
member organizations options available on other cash equity exchanges.
The Exchange also believes that, to the extent the proposed change
would increase opportunities for order execution, the proposed change
would promote competition by making the Exchange a more attractive
venue for order flow and enhancing market quality for all market
participants.
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\11\ Id.
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[[Page 4254]]
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
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \12\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange 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 satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ 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 to allow the
Exchange to implement the proposal as soon as possible. The Exchange
states that the proposed change would align the Exchange's treatment of
MPL-IOC Orders with treatment of similar order types on other cash
equity exchanges and allow the Exchange to accept MPL-IOC Orders of any
size as soon as the technology associated with the proposed change is
available, which is anticipated to be less than 30 days from the date
of this filing. The Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest because the proposal does not raise any new or novel
issues. Accordingly, the Commission hereby waives the 30-day operative
delay and designates the proposal operative upon filing.\16\
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 to
determine whether the proposed rule 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 [email protected]. Please include
File Number SR-NYSE-2023-03 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2023-03. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange.
All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSE-2023-03 and should be
submitted on or before February 14, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-01277 Filed 1-23-23; 8:45 am]
BILLING CODE 8011-01-P
