Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.44-E, 57980-57982 [2023-18189]
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Federal Register / Vol. 88, No. 163 / Thursday, August 24, 2023 / Notices
Commission a USPS Request to Add
Priority Mail & USPS Ground
Advantage® Contract 29 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2023–233,
CP2023–236.
CONTACT PERSON FOR MORE INFORMATION:
FOR FURTHER INFORMATION CONTACT:
Michael J. Elston, Secretary of the Board
of Governors, U.S. Postal Service, 475
L’Enfant Plaza, SW, Washington, DC
20260–1000. Telephone: (202) 268–
4800.
Sean Robinson,
Attorney, Corporate and Postal Business Law.
Michael J. Elston,
Secretary.
[FR Doc. 2023–18208 Filed 8–23–23; 8:45 am]
[FR Doc. 2023–18118 Filed 8–22–23; 4:15 pm]
BILLING CODE 7710–12–P
BILLING CODE 7710–12–P
POSTAL SERVICE
POSTAL SERVICE
Sean C. Robinson, 202–268–8405.
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on August 14,
2023, it filed with the Postal Regulatory
Commission a USPS Request to Add
First-Class Package Service & Parcel
Select Service Contract 7 to Competitive
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CP2023–231.
Product Change—Priority Mail and
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Service Agreement
Product Change—Priority Mail and
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AGENCY:
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ACTION: Notice.
The Postal Service gives
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DATES: Date of required notice: August
24, 2023.
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on August 14,
2023, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail & USPS Ground
Advantage® Contract 26 to Competitive
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CP2023–232.
SUMMARY:
Sean Robinson,
Attorney, Corporate and Postal Business Law.
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: August
24, 2023.
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on August 14,
2023, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail & USPS Ground
Advantage® Contract 25 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2023–227,
CP2023–230.
SUMMARY:
[FR Doc. 2023–18205 Filed 8–23–23; 8:45 am]
Sean Robinson,
Attorney, Corporate and Postal Business Law.
BILLING CODE 7710–12–P
[FR Doc. 2023–18204 Filed 8–23–23; 8:45 am]
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POSTAL SERVICE
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ACTION:
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MATTERS TO BE CONSIDERED:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: August
24, 2023.
SUMMARY:
Tuesday, August 29, 2023, at 12:00 p.m.
1. Financial Matters.
2. Administrative Items.
General Counsel Certification: The
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17:08 Aug 23, 2023
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AGENCY:
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STATUS: Closed.
PLACE:
VerDate Sep<11>2014
Product Change—First-Class Package
Service & Parcel Select Service
Negotiated Service Agreement
Jkt 259001
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SUPPLEMENTARY INFORMATION:
Sean C. Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2023–18210 Filed 8–23–23; 8:45 am]
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98168; File No. SR–
NYSEARCA–2023–55]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 7.44–E
August 18, 2023.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that, on August
8, 2023, NYSE Arca, Inc. (‘‘NYSE Arca’’
or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘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 amend
Rule 7.44–E relating to the Retail
Liquidity Program. 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
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. 163 / Thursday, August 24, 2023 / Notices
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
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1. Purpose
NYSE Arca Rule 7.44–E currently sets
forth the Exchange’s Retail Liquidity
Program (the ‘‘Program’’), which is
intended to attract retail order flow to
the Exchange and allow such order flow
to receive potential price improvement.3
Currently, Rule 7.44–E provides for a
class of market participant called Retail
Liquidity Providers (‘‘RLPs’’) who, along
with non-RLP ETP Holders, are able to
provide potential price improvement to
retail investor orders in the form of a
non-displayed order that is priced better
than the best protected bid or offer,
called a Retail Price Improvement Order
(‘‘RPI Order’’).4 When there is an RPI
Order in a particular security, the
Exchange disseminates an indicator,
known as the Retail Liquidity Identifier,
that such interest exists.5 Retail Member
Organizations (‘‘RMOs’’) can submit a
Retail Order to the Exchange, which
interacts, to the extent possible, with
available contra-side RPI Orders and
then may interact with other liquidity
on the Exchange or elsewhere,
depending on the Retail Order’s
instructions.6 The segmentation in the
Program is intended to allow retail order
flow to receive potential price
improvement as a result of their order
flow being deemed more desirable by
liquidity providers.
The Exchange has determined to
discontinue the Program, as its affiliated
exchange NYSE National, Inc. (‘‘NYSE
National’’) is proposing to implement a
similarly structured Retail Liquidity
Program.7 Accordingly, the Exchange
3 The Program was established on a pilot basis in
2013 and was approved by the Commission to
operate on a permanent basis in 2019. See
Securities Exchange Act Release No. 87350 (October
18, 2019), 84 FR 57106 (October 24, 2019) (SR–
NYSEArca–2019–63).
4 See Rules 7.44–E(a)(1) (defining an RLP) and
7.44–E(a)(4) (defining RPI Order).
5 See Rule 7.44–E(j).
6 See Rule 7.44–E(a)(2) (defining RMO); Rules
7.44–E(a)(3) and 7.44–E(k) (describing Retail
Orders).
7 See SR–NYSENAT–2023–17. The Exchange
proposes to decommission the Program in tandem
with the introduction of the NYSE National Retail
Liquidity Program in the third quarter of 2023, on
a date to be announced via Trader Update.
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17:08 Aug 23, 2023
Jkt 259001
proposes to delete the text of Rule 7.44–
E and designate the rule as Reserved.
The Exchange notes that its affiliate
New York Stock Exchange LLC
(‘‘NYSE’’) also currently offers a
similarly structured Retail Liquidity
Program,8 and both the NYSE Retail
Liquidity Program and the proposed
NYSE National Retail Liquidity Program
would be available to RMOs that
currently participate in the Program.
The Exchange further notes that several
other equities exchanges currently offer
retail price improvement programs as
well.9
Subject to the effectiveness of this
proposed rule change, the Exchange will
implement this change in the third
quarter of 2023 and announce the
implementation date by Trader Update.
2. Statutory Basis
The proposed rule change is
consistent with section 6(b) of the Act,10
in general, and furthers the objectives of
section 6(b)(5),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.
Specifically, the Exchange believes
that the proposed designation of Rule
7.44–E as Reserved in conjunction with
the decommissioning of the Program
would remove impediments to and
perfect the mechanism of a free and
open market and a national market
system by deleting rule text that would
no longer have application, thereby
promoting clarity, transparency, and
consistency in the Exchange’s rulebook.
In addition, the proposed change would
ensure that the Exchange’s rules
accurately reflect the functionality
offered by the Exchange.
The Exchange further believes that the
proposed change would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system and would
not be inconsistent with the public
interest or the protection of investors
8 See NYSE Rule 7.44 (setting forth NYSE Retail
Liquidity Program).
9 See, e.g., Cboe BYX Exchange, Inc. (‘‘BYX’’)
Rule 11.24 (setting forth BYX’s Retail Price
Improvement Program); Nasdaq BX, Inc. (‘‘BX’’)
Rule 4780 (setting forth BX’s Retail Price
Improvement Program); Investors Exchange LLC
(‘‘IEX’’) Rule 11.232 (setting forth IEX’s Retail Price
Improvement Program).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
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57981
because the proposed change to
designate Rule 7.44–E as Reserved
would alleviate any potential confusion
among market participants regarding the
availability of the Program. The
Exchange also believes that investors
would not be harmed by the proposed
change, as a similarly structured Retail
Liquidity Program is offered on its
affiliated exchange NYSE and is
proposed to be offered on its affiliate
NYSE National; in addition, several
other equities exchanges also currently
offer price improvement programs for
retail order flow.12 The Exchange
further notes that it is not under any
requirement to offer the Program and
that participation in the Program is
voluntary.
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, multiple equities exchanges
currently offer retail price improvement
programs, and investors can readily
choose to direct retail order flow to any
of the other available programs
(including the NYSE Retail Liquidity
Program or the proposed NYSE National
Retail Liquidity Program, both of which
are structured similarly to the Program).
Accordingly, the Exchange does not
believe that the discontinuation of the
Program would harm competition.
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 13 and Rule
19b–4(f)(6) thereunder.14 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
12 See
notes 8, 9 & 10, supra.
U.S.C. 78s(b)(3)(A)(iii).
14 17 CFR 240.19b–4(f)(6).
13 15
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57982
Federal Register / Vol. 88, No. 163 / Thursday, August 24, 2023 / Notices
proposed rule change has become
effective pursuant to section 19(b)(3)(A)
of the Act 15 and Rule 19b–4(f)(6)(iii)
thereunder.16
A proposed rule change filed under
Rule 19b–4(f)(6) 17 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),18 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 become operative
immediately upon filing. As discussed
above, the Exchange states that this
proposed change would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system and would
not be inconsistent with the public
interest or the protection of investors
because it would remove the Program
from the rulebook of Exchange and
prevent potential confusion among
market participants regarding the
availability of the Program. The
Exchange also states that retiring the
Program should not harm investors
because: (1) NYSE, an affiliated
exchange, will continue to offer a
similarly structured Retail Liquidity
Program, and (2) NYSE National, an
affiliated exchange, proposes to
introduce a Retail Liquidity Program
concurrent with this Program’s
discontinuance. The Exchange further
states that both its offering of the
Program and participation therein by
ETP Holders are voluntary. The
Commission believes that waiver of the
operative delay is consistent with the
protection of investors and the public
interest because it will reduce the
likelihood of any potential confusion
among market participants regarding the
availability of the Program on the
Exchange. Accordingly, the Commission
hereby waives the 30-day operative
delay and designates the proposal
operative upon filing.19
At any time within 60 days of the
filing of such proposed rule change, the
15 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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.
17 17 CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6)(iii).
19 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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16 17
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17:08 Aug 23, 2023
Jkt 259001
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) 20 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–2023–55 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–2023–55. 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
20 15
PO 00000
U.S.C. 78s(b)(2)(B).
Frm 00060
Fmt 4703
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identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–NYSEARCA–2023–55 and should be
submitted on or before September 14,
2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–18189 Filed 8–23–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98170; File No. SR–
PEARL–2023–36]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the MIAX Pearl
Equities Fee Schedule To Modify
Certain Connectivity and Port Fees
August 18, 2023.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on August 8,
2023, MIAX PEARL, LLC (‘‘MIAX Pearl’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a proposed rule change
as described in Items I, II, and III below,
which Items have been prepared by the
Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend the fee schedule (the ‘‘Fee
Schedule’’) applicable to MIAX Pearl
Equities, an equities trading facility, to
amend certain connectivity and port
fees.3
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings, at MIAX Pearl’s principal office,
21 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 All references to the ‘‘Exchange’’ in this filing
refer to MIAX Pearl Equities. Any references to the
options trading facility of MIAX PEARL, LLC will
specifically be referred to as ‘‘MIAX Pearl Options.’’
1 15
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]]>Agencies
[Federal Register Volume 88, Number 163 (Thursday, August 24, 2023)]
[Notices]
[Pages 57980-57982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-18189]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98168; File No. SR-NYSEARCA-2023-55]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.44-
E
August 18, 2023.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on August 8, 2023, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``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 amend Rule 7.44-E relating to the Retail
Liquidity Program. 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
[[Page 57981]]
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
NYSE Arca Rule 7.44-E currently sets forth the Exchange's Retail
Liquidity Program (the ``Program''), which is intended to attract
retail order flow to the Exchange and allow such order flow to receive
potential price improvement.\3\ Currently, Rule 7.44-E provides for a
class of market participant called Retail Liquidity Providers
(``RLPs'') who, along with non-RLP ETP Holders, are able to provide
potential price improvement to retail investor orders in the form of a
non-displayed order that is priced better than the best protected bid
or offer, called a Retail Price Improvement Order (``RPI Order'').\4\
When there is an RPI Order in a particular security, the Exchange
disseminates an indicator, known as the Retail Liquidity Identifier,
that such interest exists.\5\ Retail Member Organizations (``RMOs'')
can submit a Retail Order to the Exchange, which interacts, to the
extent possible, with available contra-side RPI Orders and then may
interact with other liquidity on the Exchange or elsewhere, depending
on the Retail Order's instructions.\6\ The segmentation in the Program
is intended to allow retail order flow to receive potential price
improvement as a result of their order flow being deemed more desirable
by liquidity providers.
---------------------------------------------------------------------------
\3\ The Program was established on a pilot basis in 2013 and was
approved by the Commission to operate on a permanent basis in 2019.
See Securities Exchange Act Release No. 87350 (October 18, 2019), 84
FR 57106 (October 24, 2019) (SR-NYSEArca-2019-63).
\4\ See Rules 7.44-E(a)(1) (defining an RLP) and 7.44-E(a)(4)
(defining RPI Order).
\5\ See Rule 7.44-E(j).
\6\ See Rule 7.44-E(a)(2) (defining RMO); Rules 7.44-E(a)(3) and
7.44-E(k) (describing Retail Orders).
---------------------------------------------------------------------------
The Exchange has determined to discontinue the Program, as its
affiliated exchange NYSE National, Inc. (``NYSE National'') is
proposing to implement a similarly structured Retail Liquidity
Program.\7\ Accordingly, the Exchange proposes to delete the text of
Rule 7.44-E and designate the rule as Reserved. The Exchange notes that
its affiliate New York Stock Exchange LLC (``NYSE'') also currently
offers a similarly structured Retail Liquidity Program,\8\ and both the
NYSE Retail Liquidity Program and the proposed NYSE National Retail
Liquidity Program would be available to RMOs that currently participate
in the Program. The Exchange further notes that several other equities
exchanges currently offer retail price improvement programs as well.\9\
---------------------------------------------------------------------------
\7\ See SR-NYSENAT-2023-17. The Exchange proposes to
decommission the Program in tandem with the introduction of the NYSE
National Retail Liquidity Program in the third quarter of 2023, on a
date to be announced via Trader Update.
\8\ See NYSE Rule 7.44 (setting forth NYSE Retail Liquidity
Program).
\9\ See, e.g., Cboe BYX Exchange, Inc. (``BYX'') Rule 11.24
(setting forth BYX's Retail Price Improvement Program); Nasdaq BX,
Inc. (``BX'') Rule 4780 (setting forth BX's Retail Price Improvement
Program); Investors Exchange LLC (``IEX'') Rule 11.232 (setting
forth IEX's Retail Price Improvement Program).
---------------------------------------------------------------------------
Subject to the effectiveness of this proposed rule change, the
Exchange will implement this change in the third quarter of 2023 and
announce the implementation date by Trader Update.
2. Statutory Basis
The proposed rule change is consistent with section 6(b) of the
Act,\10\ in general, and furthers the objectives of section
6(b)(5),\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).
---------------------------------------------------------------------------
Specifically, the Exchange believes that the proposed designation
of Rule 7.44-E as Reserved in conjunction with the decommissioning of
the Program would remove impediments to and perfect the mechanism of a
free and open market and a national market system by deleting rule text
that would no longer have application, thereby promoting clarity,
transparency, and consistency in the Exchange's rulebook. In addition,
the proposed change would ensure that the Exchange's rules accurately
reflect the functionality offered by the Exchange.
The Exchange further believes that the proposed change would remove
impediments to and perfect the mechanism of a free and open market and
a national market system and would not be inconsistent with the public
interest or the protection of investors because the proposed change to
designate Rule 7.44-E as Reserved would alleviate any potential
confusion among market participants regarding the availability of the
Program. The Exchange also believes that investors would not be harmed
by the proposed change, as a similarly structured Retail Liquidity
Program is offered on its affiliated exchange NYSE and is proposed to
be offered on its affiliate NYSE National; in addition, several other
equities exchanges also currently offer price improvement programs for
retail order flow.\12\ The Exchange further notes that it is not under
any requirement to offer the Program and that participation in the
Program is voluntary.
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\12\ See notes 8, 9 & 10, 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, multiple
equities exchanges currently offer retail price improvement programs,
and investors can readily choose to direct retail order flow to any of
the other available programs (including the NYSE Retail Liquidity
Program or the proposed NYSE National Retail Liquidity Program, both of
which are structured similarly to the Program). Accordingly, the
Exchange does not believe that the discontinuation of the Program would
harm competition.
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 \13\ and Rule 19b-4(f)(6) thereunder.\14\
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
[[Page 57982]]
proposed rule change has become effective pursuant to section
19(b)(3)(A) of the Act \15\ and Rule 19b-4(f)(6)(iii) thereunder.\16\
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\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6).
\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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) \17\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\18\ 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 become operative immediately upon filing. As discussed above, the
Exchange states that this proposed change would remove impediments to
and perfect the mechanism of a free and open market and a national
market system and would not be inconsistent with the public interest or
the protection of investors because it would remove the Program from
the rulebook of Exchange and prevent potential confusion among market
participants regarding the availability of the Program. The Exchange
also states that retiring the Program should not harm investors
because: (1) NYSE, an affiliated exchange, will continue to offer a
similarly structured Retail Liquidity Program, and (2) NYSE National,
an affiliated exchange, proposes to introduce a Retail Liquidity
Program concurrent with this Program's discontinuance. The Exchange
further states that both its offering of the Program and participation
therein by ETP Holders are voluntary. The Commission believes that
waiver of the operative delay is consistent with the protection of
investors and the public interest because it will reduce the likelihood
of any potential confusion among market participants regarding the
availability of the Program on the Exchange. Accordingly, the
Commission hereby waives the 30-day operative delay and designates the
proposal operative upon filing.\19\
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\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6)(iii).
\19\ 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 under
section 19(b)(2)(B) \20\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\20\ 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-2023-55 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-2023-55. 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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-NYSEARCA-2023-55 and should
be submitted on or before September 14, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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\21\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-18189 Filed 8-23-23; 8:45 am]
BILLING CODE 8011-01-P
