Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Delete Legacy Disciplinary Rules 475, 476, 476A, and 477 and Make Conforming Changes to Rule 41, Rules 8001, 8130(d), 8320(d), 9001, 9216(b)(1), 9810(a), and 781 of the Office Rules, Rules 2A, 12E, 3170(a)(3), 902NY and Adopt a New Rule 600 and Make Conforming Changes to Rules 3170(C)(3), and Adopt a New Rule 601, 74544-74547 [2023-23940]
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Federal Register / Vol. 88, No. 209 / Tuesday, October 31, 2023 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98798; File No. SR–
NYSEAMER–2023–49]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change To Delete Legacy Disciplinary
Rules 475, 476, 476A, and 477 and
Make Conforming Changes to Rule 41,
Rules 8001, 8130(d), 8320(d), 9001,
9216(b)(1), 9810(a), and 781 of the
Office Rules, Rules 2A, 12E, 3170(a)(3),
902NY and Adopt a New Rule 600 and
Make Conforming Changes to Rules
3170(C)(3), and Adopt a New Rule 601
October 25, 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 October
13, 2023, NYSE American LLC (‘‘NYSE
American’’ 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 Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to (1) delete
legacy disciplinary Rules 475, 476,
476A, and 477 of the Office Rules as
obsolete and make conforming changes
to Rule 41 of the General Rules, Rules
8001, 8130(d), 8320(d), 9001, 9216(b)(1),
9810(a), and 781 of the Office Rules,
Rules 2A, 12E, and 3170(a)(3) of the
Equities Rules, and Rule 902NY of the
Options Rules; (2) adopt a new Rule 600
of the Office Rules incorporating the
substantive violations currently in Rule
476(a) without change and make
conforming changes to Rules
3170(C)(3)—Equities and 9217 of the
Office Rules; and (3) adopt a new Rule
601 of the Office Rules similar to Cboe
Exchange, Inc. Rule 13.11,
Supplementary Material .01. 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
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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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.
listed offenses under Rule 476(a)).4 The
Exchange represents that the transition
to the new disciplinary rules is
complete and there are no longer any
member organizations or persons
subject to Rules 475, 476, 476A, and
477, and that those rules can therefore
be deleted as obsolete.
The Exchange proposes conforming
changes to the following rules that
contain references to one or more of the
rules proposed to be deleted:
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Office Rules
1. Purpose
The Exchange proposes to (1) delete
legacy disciplinary Rules 475, 476,
476A, and 477 of the Office Rules as
obsolete and make conforming changes
to Rule 41 of the General Rules, Rules
8001, 8130(d), 8320(d), 9001, 9216(b)(1),
9810(a), and 781 of the Office Rules,
Rules 2A, 12E, and 3170(a)(3) of the
Equities Rules, and Rule 902NY of the
Options Rules; (2) adopt a new Rule 600
of the Office Rules incorporating the
substantive violations currently in Rule
476(a) without change and make
conforming changes to Rules
3170(C)(3)—Equities and 9217 of the
Office Rules; and (3) adopt a new Rule
601 of the Office Rules setting forth
sanctions guidelines similar to Cboe
Exchange, Inc. (‘‘Cboe’’) Rule 13.11
(Judgment and Sanctions),
Supplementary Material .01.
Background and Proposed Rule Change
In 2016, the Exchange adopted rules
relating to investigation, discipline, and
sanctions, and other procedural rules
based on the rules of its affiliate New
York Stock Exchange LLC and the
Financial Industry Regulatory Authority
(‘‘FINRA’’).3 The Exchange represented
in that filing that when the transition to
the new disciplinary rules was complete
and there were no longer any member
organizations or persons subject to
Rules 475, 476, 476A, and 477 of the
Office Rules, the Exchange would
submit a proposed rule change that
would delete such rules (except for the
3 See Securities Exchange Act Release No. 77241
(February 26, 2016), 81 FR 11311 (March 3, 2016)
(SR–NYSEMKT–2016–30) (‘‘Release No. 77241’’)
(Notice of Filing and Immediate Effectiveness of
Proposed Rule Change Adopting Investigation,
Disciplinary, Sanction, and Other Procedural Rules
Modeled on the Rules of the New York Stock
Exchange LLC and Certain Conforming and
Technical Changes).
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General Rules
• Rule 41 (Failure to Pay Exchange
Fees)
• Rule 9216(b)(1) (Acceptance, Waiver,
and Consent; Procedure for
Imposition of Fines for Minor
Violation(s) of Rules)
• Rule 9810(a) (Initiation of
Proceeding), and
• Rule 781 (Insolvency)
Equities Rules
• Rules 2A (Jurisdiction)
• Rule 12E (Arbitration), and
• Rule 3170(a)(3) (Tape Recording of
Registered Persons by Certain Firms)
Options Rules
• Rule 902NY (Admission and Conduct
on the Options Trading Floor)
The following rules in the General
Rules reflecting the transition from the
legacy disciplinary rules to the current
rule set would be deleted in their
entirety:
• Rule 8130(d) (Retention of
Jurisdiction);
• Rule 8320(d) (Payment of Fines,
Other Monetary Sanctions, or Costs;
Summary Action for Failure to Pay);
Rule 8001 (Effective Date of Rule 8000
Series); and
• Rule 9001 (Effective Date of Rule
9000 Series).
Section 9A of the Office Rules titled
‘‘Legacy Disciplinary Rules’’ where
Rules 475, 476, 476A, and 477 are
currently set forth would also be
deleted.
Section 9B of the Office Rules where
the Rule 8000 and Rule 9000 Series are
currently set forth would become
Section 10. The remaining headings—
current Sections 10 (Advertising), 11
(Wires and Other Means of
Communication), 12 (Reports), 13
(Secondary Distributions), 14 (Special
Offerings and Special Bids), 15
(Exchange Distributions and Exchange
Acquisitions), and 16 (Proxies)—would
be renumbered.
4 See
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id., 81 FR at 11318.
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Finally, Rule 478T, currently marked
‘‘Deleted’’, would be removed as
obsolete.
In connection with the deletion of
Rule 476, the Exchange also proposes
two new Rules that would be located in
a new Section 18 titled ‘‘Offenses and
Sanctions Guidelines.’’
First, the Exchange would adopt new
Rule 600 titled ‘‘Other Offenses’’ that
would, consistent with its filing
adopting its current disciplinary rules
modeled on the NYSE and FINRA rules,
retain the listed offenses in Rule
476(a)(1)–(11) without substantive
change. Proposed Rule 600 would
provide that a member, member
organization, principal executive,
approved person, registered or nonregistered employee of a member or
member organization or person
otherwise subject to the jurisdiction of
the Exchange violates the provisions of
the Rule if it commits any of the
enumerated offenses, which would be
transposed from Rule 476(a) in the same
order and without changes except for
Rule 476(a)(8), which is marked
‘‘Reserved.’’ The Exchange further
proposes conforming changes to the
following rules to replace references to
Rule 476(a) with references to Rule 600:
Rules 3170(C)(3)—Equities (Tape
Recording of Registered Persons by
Certain Firms) and Rule 9217
(Violations Appropriate for Disposition
Under Rule 9216(b)).
Second, the Exchange would adopt
new Rule 601 titled ‘‘Sanction
Guidelines’’ that would incorporate
sanctions guidelines similar to Cboe
Rule 13.11, Supplementary Material .01,
in place of the Sanction Guidelines in
Rule 476, Supplementary Material .10.
The current Sanction Guidelines in
Rule 476.10 were adopted pursuant to
the provisions of Section IV.B.i of the
Commission’s September 11, 2000
Order Instituting Administrative
Proceedings Pursuant to Section
19(h)(1) of the Act (the ‘‘2000 Order’’),
which required the Exchange to adopt
rules establishing, or modifying
existing, sanctioning guidelines such
that they are reasonably designed to
effectively enforce compliance with
options order handling rules, including
the duty of best execution with respect
to the handling of orders after the
broker-dealer routes the order to such
respondent exchange, limit order
display, priority, firm quote, and trade
reporting rules.5
5 See Securities Exchange Act Release Nos. 45412
(February 7, 2002), 67 FR 6770 (February 13, 2002)
(Notice); 45566 (March 15, 2002), 67 FR 13379
(March 22, 2002) (SR–Amex–2001–68) (Order). See
generally Securities Exchange Act Release No.
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Unlike other exchanges subject to the
2000 Order,6 the Exchange incorporated
specific fine ranges in its sanctions
guidelines for violations (other than
minor rule violations) setting forth the
principal considerations to be applied to
the resolution of disciplinary matters.
The specific fine ranges incorporated
into the guidelines have remained static
and, in many instances, set forth
recommended fine levels for rules that
have been superseded and deleted.7 For
the remaining operative rules, such as
Rule 16 (Business Conduct), 995NY
(Prohibited Conduct) and 975NY
(Nullification and Adjustment of
Options Transactions including Obvious
Errors), the fine ranges have largely been
eclipsed as the disciplinary landscape
evolves.8 In short, the Exchange believes
that, more than two decades after they
were adopted, the monetary sanctions
ranges are no longer necessary or useful
in determining appropriate sanctions in
a given case.
The Exchange accordingly believes
that adopting a new rule that continues
to reflect a principles-based approach to
sanctions guidelines applicable to all
options rules that does not contain
specific recommended fine ranges for a
43268 (September 11, 2000), Administrative
Proceeding File No. 3–10282.
6 See, e.g., Securities Exchange Act Release Nos.
45427 (February 8, 2002), 67 FR 6958 (February 14,
2002) (Notice); 45571 (March 15, 2002), 67 FR
13382 (March 22, 2002) (SR–CBOE–2001–71)
(Order Granting Accelerated Approval of Proposed
Rule Change and Notice of Filing and Order
Granting Accelerated Approval of Amendment No.
1 Thereto by the Chicago Board Options Exchange,
Inc. To Incorporate Certain Principal
Considerations in Determining Sanctions and To
Incorporate in the Exchange’s Minor Rule Violation
Plan Violations of the Exchange’s Order Handling
Rules).
7 These rules include former Rules 958A, 111,
126, 155, 950, and 958. For instance, Rule 958A
governing application of the firm quote rule was
superseded by Rule 970NY in 2008 and deleted in
2009. Similarly, Section 900NY replaced former
Rules 950 (Rules of General Applicability) and 958
(Options Transactions of Registered Traders) in
2008 and were also deleted in 2009. See generally
Securities Exchange Act Release No. 59472
(February 27, 2009), 74 FR 9843 (March 6, 2009)
(SR–NYSEALTR–2008–14) (Notice of Filing of
Amendment No. 1 and Order Granting Accelerated
Approval of the Proposed Rule Change, as Modified
by Amendment No. 1 Thereto, To Establish Rules
for the Trading of Listed Options); Securities
Exchange Act Release No. 59454 (February 25,
2009), 74 FR 9461 (March 9, 2009) (SR–
NYSEALTR–2009–17) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
by NYSE Alternext U.S. LLC To Delete Certain
Rules Governing the Trading of Listed Options).
8 For example, the guideline for Rule 16
violations is $1,000 to $5,000. In 2013, a respondent
consented to a $50,000 fine for a violation of Rule
16. See SG Americas Securities (NYSE American
Matter No. 13–NYSEMKT–4). In 2020, the fine for
a similar violation was $95,000—nearly 20 times
the top of the guideline range. See Citigroup Global
Markets Inc. (NYSE American Matter No. 2017–11–
00111).
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subset of rules would modernize and
update the rule in important respects
while continuing to provide flexible
guidelines for determining appropriate
remedial sanctions consistent with the
intention of the original rule.9 The
principles-based guidelines contained
in Cboe Rule 13.11 that the Exchange
proposes to adopt are similar to those
set forth in the current guidelines.
However, because Cboe Rule 13.11 takes
a more streamlined approach, the
Exchange believes the proposed rule
more clearly and succinctly sets forth
current relevant considerations
regarding the adjudication of
disciplinary actions. Further, the
Exchange believes that the proposed
rule would be consistent with the 2000
Order because the proposal would
closely track approved Cboe Rule 13.11
that was also adopted to satisfy the
Commission’s order. Indeed, by
modernizing and updating the
Exchange’s sanctions guidelines,
proposed Rule 601 would further
enhance its disciplinary processes
consistent with the 2000 Order. Finally,
the proposed rule would promote
regulatory consistency across options
exchanges in determining appropriate
remedial sanctions for violations of
options rules.
Like current Rule 476.10, proposed
Rule 601 would not apply to the
equities market.10 As such, Rule 601
would carry forward the current
practice under Rule 476.10 whereby the
various bodies with responsibility for
the adjudication of disciplinary actions,
including Hearing Panels, Hearing
Officers, the Committee for Review
(‘‘CFR’’), and the Board of Directors
(‘‘Board’’), defined in the proposed Rule
collectively as ‘‘Adjudicatory
Bodies,’’ 11 would consider relevant
Exchange precedent or such other
precedent as they deem appropriate in
determining sanctions imposed against
ATP Holders or ATP Firms and their
covered persons.
The remainder of the proposed Rule,
with the following exceptions, would be
substantially the same as Cboe Rule
13.11.01:
• First, the second paragraph in the
proposed Rule would transpose the
updated definition of ‘‘Adjudicatory
Bodies’’ 12 from the second paragraph of
9 See
67 FR at 6771.
note 6, supra.
11 The Exchange proposes to add two terms to the
definition of ‘‘Adjudicatory Bodies’’: ‘‘Extended
Hearing Panels,’’ which are provided for in the
Exchange’s disciplinary rules, and Chief Regulatory
Officer (‘‘CRO’’), given the CRO’s role in the
disciplinary and settlement processes.
12 See note 10, supra.
10 See
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current Rule 476.10(A) and the last two
sentences of the third paragraph of
current Rule 476.10(A).
• Second, references to ‘‘Cboe
Options Trading Permit Holders’’ in
Cboe Rule 13.11.01 would be replaced
with ‘‘ATP Holders or ATP Firms’’ to
reflect the Exchange’s membership.
• Third, in proposed Rule 601(d), the
Exchange would omit the second
sentence in Cboe Rule 13.11.01(d),
which is duplicative of the first
sentence that the Exchange would
retain.
• Fourth, in proposed Rule 601(e), the
Exchange would omit the first sentence
of Cboe Rule 13.11.01(e), which
provides that ‘‘Aggregation of violations
may be appropriate in certain instances
for purposes of determining sanctions,’’
as redundant of the second sentence of
Cboe Rule 13.11.01(e), which the
Exchange would retain.
• Fifth, in proposed Rule 601(f), the
Exchange would omit the first sentence
of Cboe Rule 13.11.01(f), which
provides that ‘‘The Hearing Panel or the
CRO, as applicable, should evaluate
appropriateness of disgorgement and/or
restitution,’’ as redundant of the
sentence of Cboe Rule 13.11.01(f),
which the Exchange would retain.
Finally, consistent with the
Exchange’s desire to adopt streamlined,
principles-based sanctions guidelines
along the lines set forth in Cboe Rule
13.11.01, the Exchange would not carry
forward the specific recommended
monetary and non-monetary sanctions
applicable to certain specific rule
violations found in current Rule 476.10.
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2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b)(5) of the Act,13 in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. In addition, the
Exchange believes that the proposed
rule change furthers the objectives of
Section 6(b)(7) of the Act,14 in
particular, in that it provides fair
procedures for the disciplining of
members and persons associated with
members,15 the denial of membership to
13 15
U.S.C. 78f(b)(5).
14 15 U.S.C. 78f(b)(7).
15 Under the Exchange’s equities rules, the
equivalent to the term ‘‘member’’ in this context is
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any person seeking membership therein,
the barring of any person from becoming
associated with a member thereof, and
the prohibition or limitation by the
Exchange of any person with respect to
access to services offered by the
Exchange or a member thereof.
Specifically, the Exchange believes
that deletion of the obsolete legacy
disciplinary rules now that there are no
longer any member organizations or
persons subject to those rules, and
making conforming changes to the rules
referencing those legacy disciplinary
rules, would increase the clarity and
transparency of the Exchange’s rules
and remove impediments to and perfect
the mechanism of a free and open
market by ensuring that persons subject
to the Exchange’s jurisdiction,
regulators, and the investing public
could more easily navigate and
understand the Exchange Bylaws and
rules. The Exchange further believes
that the proposed amendments would
not be inconsistent with the public
interest and the protection of investors
because investors will not be harmed
and in fact would benefit from increased
transparency and clarity, thereby
reducing potential confusion.
The Exchange further believes that
retaining the substantive offenses in
Rule 476(a) without change is designed
to prevent fraudulent and manipulative
acts and practices by permitting the
Exchange to continue to carry out its
oversight and enforcement
responsibilities with respect to the
substantive provisions currently
enumerated in Rule 476(a). For the same
reasons, retention of those provisions
would not be inconsistent with the
public interest and the protection of
investors.
Finally, the Exchange believes that
adopting sanction guidelines similar to
Cboe Rule 13.11.01 with only nonsubstantive, conforming changes that do
not contain specific recommended fine
ranges for a subset of rules would
continue to permit the Exchange to
impose sanctions consistently and fairly
by reference to a streamlined rule,
thereby continuing to provide fair
procedures for the disciplining of
members and persons associated with
members, the denial of membership to
any person seeking Exchange
membership, the barring of any person
from becoming associated with a
member, and the prohibition or
limitation by the Exchange of any
person with respect to access to services
‘‘member organization.’’ References to ‘‘member’’
and ‘‘member organization’’ as those terms are used
in the rules of the Exchange include ATP Holders.
See Rules 18, 24 & 900.2NY(5). See Release No.
77241, 81 FR 11318, notes 25–26, & 11334, n. 75.
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offered by the Exchange or a member
thereof pursuant to Section 6(b)(7) 16 of
the Act.
The proposed rule would provide
flexible and appropriate principlesbased guidelines applicable to all
options rules for determining remedial
sanctions consistent with the intention
of the Exchange’s current sanctions
guidelines rule.17 However, the
Exchange believes that dispensing with
recommended fine ranges would
modernize and update the rule in
important respects. As noted, there are
currently fine ranges for numerous rules
that have been superseded or deleted,
and the fine ranges for the remaining
operative rules do not reflect more
recent regulatory considerations and
fine levels. Moreover, by adopting Cboe
Rule 13.11’s more streamlined approach
to sanctions guidelines, the Exchange
believes the proposed rule would more
clearly and succinctly set forth the
current relevant considerations
regarding the adjudication of
disciplinary actions. Further, the
Exchange believes that the proposed
rule would also be consistent with the
2000 Order because the proposal would
closely track approved Cboe Rule 13.11
that was adopted to satisfy the same
Commission order. Indeed, the
Exchange believes that by modernizing
and updating its sanctions guidelines,
proposed Rule 601 would further
enhance its disciplinary processes
consistent with the 2000 Order and
further ensure that the Exchange
implements the most appropriate
disciplinary mechanisms for violations
and a fair process in determining same.
Finally, the proposed rule would
promote regulatory consistency and
uniformity across options exchanges in
determining appropriate remedial
sanctions and the imposition of
penalties.
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 Exchange Act.
The proposed rule change is not
intended to address competitive issues
but rather is concerned solely with
deleting obsolete rules and making
related and conforming changes.
16 15
U.S.C. 78f(b)(7).
67 FR at 6771.
17 See
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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 18 and Rule
19b–4(f)(6) thereunder.19 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)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.20
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) 21 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
18 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
20 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 satisfied this requirement.
21 15 U.S.C. 78s(b)(2)(B).
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19 17
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• Send an email to rule-comments@
sec.gov. Please include file number SR–
NYSEAMER–2023–49 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–NYSEAMER–2023–49. 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–NYSEAMER–2023–49 and should
be submitted on or before November 21,
2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–23940 Filed 10–30–23; 8:45 am]
BILLING CODE 8011–01–P
22 17
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CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98799; File No. SR–ICEEU–
2023–021]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Order Approving
Proposed Rule Change, as Modified by
Amendment No. 1, Relating to
Amendments to its Operational Risk
and Resilience Policy
October 25, 2023.
I. Introduction
On August 15, 2023, ICE Clear Europe
Limited (‘‘ICE Clear Europe’’ or
‘‘Clearing House’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (the ‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend its Operational Risk and
Resilience Policy (the ‘‘Policy’’). On
August 24, 2023, ICE Clear Europe filed
Amendment No. 1 to the proposed rule
change to make certain changes to the
Exhibits 5.3 Notice of the proposed rule
change, as modified by Amendment No.
1, was published for comment in the
Federal Register on September 5, 2023.4
On October 3, 2023, the Commission
designated a longer period for
Commission action on the proposed rule
change until December 4, 2023.5 The
Commission has not received comments
regarding the proposed rule change. For
the reasons discussed below, the
Commission is approving the proposed
rule change, as modified by Amendment
No. 1 (hereinafter ‘‘the Proposed Rule
Change’’).
II. Description of the Proposed Rule
Change
A. Background
ICE Clear Europe is registered with
the Commission as a clearing agency for
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1 corrects the presentation of
changes in Exhibit 5 by reflecting the deletion of the
prior ‘‘Oversight of the Policy’’ section as part of the
updated governance and oversight provisions. This
amendment was filed with the Commission on
August 24, 2023.
4 Self-Regulatory Organizations; ICE Clear Europe
Limited; Notice of Filing of Proposed Rule Change,
as Modified by Amendment No. 1, Relating to
Amendments to its Operational Risk and Resilience
Policy, Exchange Act Release No. 98237 (Aug. 29,
2023); 88 FR 60727 (Sep. 5, 2023) (SR–ICEEU–
2023–021) (‘‘Notice’’).
5 Self-Regulatory Organizations; ICE Clear Europe
Limited; Notice of Designation of Longer Period for
Commission Action on Proposed Rule Change, as
Modified by Amendment No. 1, Relating to
Amendments to its Operational Risk and Resilience
Policy; Exchange Act Release No. 98573 (Sep. 27,
2023), 88 FR 68240 (Oct. 3, 2023) (File No. SR–
ICEEU–2023–021).
2 17
E:\FR\FM\31OCN1.SGM
31OCN1
]]>Agencies
[Federal Register Volume 88, Number 209 (Tuesday, October 31, 2023)]
[Notices]
[Pages 74544-74547]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-23940]
[[Page 74544]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98798; File No. SR-NYSEAMER-2023-49]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Change To Delete Legacy
Disciplinary Rules 475, 476, 476A, and 477 and Make Conforming Changes
to Rule 41, Rules 8001, 8130(d), 8320(d), 9001, 9216(b)(1), 9810(a),
and 781 of the Office Rules, Rules 2A, 12E, 3170(a)(3), 902NY and Adopt
a New Rule 600 and Make Conforming Changes to Rules 3170(C)(3), and
Adopt a New Rule 601
October 25, 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 October 13, 2023, NYSE American LLC (``NYSE American'' 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 Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to (1) delete legacy disciplinary Rules 475,
476, 476A, and 477 of the Office Rules as obsolete and make conforming
changes to Rule 41 of the General Rules, Rules 8001, 8130(d), 8320(d),
9001, 9216(b)(1), 9810(a), and 781 of the Office Rules, Rules 2A, 12E,
and 3170(a)(3) of the Equities Rules, and Rule 902NY of the Options
Rules; (2) adopt a new Rule 600 of the Office Rules incorporating the
substantive violations currently in Rule 476(a) without change and make
conforming changes to Rules 3170(C)(3)--Equities and 9217 of the Office
Rules; and (3) adopt a new Rule 601 of the Office Rules similar to Cboe
Exchange, Inc. Rule 13.11, Supplementary Material .01. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to (1) delete legacy disciplinary Rules 475,
476, 476A, and 477 of the Office Rules as obsolete and make conforming
changes to Rule 41 of the General Rules, Rules 8001, 8130(d), 8320(d),
9001, 9216(b)(1), 9810(a), and 781 of the Office Rules, Rules 2A, 12E,
and 3170(a)(3) of the Equities Rules, and Rule 902NY of the Options
Rules; (2) adopt a new Rule 600 of the Office Rules incorporating the
substantive violations currently in Rule 476(a) without change and make
conforming changes to Rules 3170(C)(3)--Equities and 9217 of the Office
Rules; and (3) adopt a new Rule 601 of the Office Rules setting forth
sanctions guidelines similar to Cboe Exchange, Inc. (``Cboe'') Rule
13.11 (Judgment and Sanctions), Supplementary Material .01.
Background and Proposed Rule Change
In 2016, the Exchange adopted rules relating to investigation,
discipline, and sanctions, and other procedural rules based on the
rules of its affiliate New York Stock Exchange LLC and the Financial
Industry Regulatory Authority (``FINRA'').\3\ The Exchange represented
in that filing that when the transition to the new disciplinary rules
was complete and there were no longer any member organizations or
persons subject to Rules 475, 476, 476A, and 477 of the Office Rules,
the Exchange would submit a proposed rule change that would delete such
rules (except for the listed offenses under Rule 476(a)).\4\ The
Exchange represents that the transition to the new disciplinary rules
is complete and there are no longer any member organizations or persons
subject to Rules 475, 476, 476A, and 477, and that those rules can
therefore be deleted as obsolete.
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\3\ See Securities Exchange Act Release No. 77241 (February 26,
2016), 81 FR 11311 (March 3, 2016) (SR-NYSEMKT-2016-30) (``Release
No. 77241'') (Notice of Filing and Immediate Effectiveness of
Proposed Rule Change Adopting Investigation, Disciplinary, Sanction,
and Other Procedural Rules Modeled on the Rules of the New York
Stock Exchange LLC and Certain Conforming and Technical Changes).
\4\ See id., 81 FR at 11318.
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The Exchange proposes conforming changes to the following rules
that contain references to one or more of the rules proposed to be
deleted:
General Rules
Rule 41 (Failure to Pay Exchange Fees)
Office Rules
Rule 9216(b)(1) (Acceptance, Waiver, and Consent; Procedure
for Imposition of Fines for Minor Violation(s) of Rules)
Rule 9810(a) (Initiation of Proceeding), and
Rule 781 (Insolvency)
Equities Rules
Rules 2A (Jurisdiction)
Rule 12E (Arbitration), and
Rule 3170(a)(3) (Tape Recording of Registered Persons by
Certain Firms)
Options Rules
Rule 902NY (Admission and Conduct on the Options Trading
Floor)
The following rules in the General Rules reflecting the transition
from the legacy disciplinary rules to the current rule set would be
deleted in their entirety:
Rule 8130(d) (Retention of Jurisdiction);
Rule 8320(d) (Payment of Fines, Other Monetary Sanctions,
or Costs; Summary Action for Failure to Pay); Rule 8001 (Effective Date
of Rule 8000 Series); and
Rule 9001 (Effective Date of Rule 9000 Series).
Section 9A of the Office Rules titled ``Legacy Disciplinary Rules''
where Rules 475, 476, 476A, and 477 are currently set forth would also
be deleted.
Section 9B of the Office Rules where the Rule 8000 and Rule 9000
Series are currently set forth would become Section 10. The remaining
headings--current Sections 10 (Advertising), 11 (Wires and Other Means
of Communication), 12 (Reports), 13 (Secondary Distributions), 14
(Special Offerings and Special Bids), 15 (Exchange Distributions and
Exchange Acquisitions), and 16 (Proxies)--would be renumbered.
[[Page 74545]]
Finally, Rule 478T, currently marked ``Deleted'', would be removed
as obsolete.
In connection with the deletion of Rule 476, the Exchange also
proposes two new Rules that would be located in a new Section 18 titled
``Offenses and Sanctions Guidelines.''
First, the Exchange would adopt new Rule 600 titled ``Other
Offenses'' that would, consistent with its filing adopting its current
disciplinary rules modeled on the NYSE and FINRA rules, retain the
listed offenses in Rule 476(a)(1)-(11) without substantive change.
Proposed Rule 600 would provide that a member, member organization,
principal executive, approved person, registered or non-registered
employee of a member or member organization or person otherwise subject
to the jurisdiction of the Exchange violates the provisions of the Rule
if it commits any of the enumerated offenses, which would be transposed
from Rule 476(a) in the same order and without changes except for Rule
476(a)(8), which is marked ``Reserved.'' The Exchange further proposes
conforming changes to the following rules to replace references to Rule
476(a) with references to Rule 600: Rules 3170(C)(3)--Equities (Tape
Recording of Registered Persons by Certain Firms) and Rule 9217
(Violations Appropriate for Disposition Under Rule 9216(b)).
Second, the Exchange would adopt new Rule 601 titled ``Sanction
Guidelines'' that would incorporate sanctions guidelines similar to
Cboe Rule 13.11, Supplementary Material .01, in place of the Sanction
Guidelines in Rule 476, Supplementary Material .10.
The current Sanction Guidelines in Rule 476.10 were adopted
pursuant to the provisions of Section IV.B.i of the Commission's
September 11, 2000 Order Instituting Administrative Proceedings
Pursuant to Section 19(h)(1) of the Act (the ``2000 Order''), which
required the Exchange to adopt rules establishing, or modifying
existing, sanctioning guidelines such that they are reasonably designed
to effectively enforce compliance with options order handling rules,
including the duty of best execution with respect to the handling of
orders after the broker-dealer routes the order to such respondent
exchange, limit order display, priority, firm quote, and trade
reporting rules.\5\
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\5\ See Securities Exchange Act Release Nos. 45412 (February 7,
2002), 67 FR 6770 (February 13, 2002) (Notice); 45566 (March 15,
2002), 67 FR 13379 (March 22, 2002) (SR-Amex-2001-68) (Order). See
generally Securities Exchange Act Release No. 43268 (September 11,
2000), Administrative Proceeding File No. 3-10282.
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Unlike other exchanges subject to the 2000 Order,\6\ the Exchange
incorporated specific fine ranges in its sanctions guidelines for
violations (other than minor rule violations) setting forth the
principal considerations to be applied to the resolution of
disciplinary matters. The specific fine ranges incorporated into the
guidelines have remained static and, in many instances, set forth
recommended fine levels for rules that have been superseded and
deleted.\7\ For the remaining operative rules, such as Rule 16
(Business Conduct), 995NY (Prohibited Conduct) and 975NY (Nullification
and Adjustment of Options Transactions including Obvious Errors), the
fine ranges have largely been eclipsed as the disciplinary landscape
evolves.\8\ In short, the Exchange believes that, more than two decades
after they were adopted, the monetary sanctions ranges are no longer
necessary or useful in determining appropriate sanctions in a given
case.
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\6\ See, e.g., Securities Exchange Act Release Nos. 45427
(February 8, 2002), 67 FR 6958 (February 14, 2002) (Notice); 45571
(March 15, 2002), 67 FR 13382 (March 22, 2002) (SR-CBOE-2001-71)
(Order Granting Accelerated Approval of Proposed Rule Change and
Notice of Filing and Order Granting Accelerated Approval of
Amendment No. 1 Thereto by the Chicago Board Options Exchange, Inc.
To Incorporate Certain Principal Considerations in Determining
Sanctions and To Incorporate in the Exchange's Minor Rule Violation
Plan Violations of the Exchange's Order Handling Rules).
\7\ These rules include former Rules 958A, 111, 126, 155, 950,
and 958. For instance, Rule 958A governing application of the firm
quote rule was superseded by Rule 970NY in 2008 and deleted in 2009.
Similarly, Section 900NY replaced former Rules 950 (Rules of General
Applicability) and 958 (Options Transactions of Registered Traders)
in 2008 and were also deleted in 2009. See generally Securities
Exchange Act Release No. 59472 (February 27, 2009), 74 FR 9843
(March 6, 2009) (SR-NYSEALTR-2008-14) (Notice of Filing of Amendment
No. 1 and Order Granting Accelerated Approval of the Proposed Rule
Change, as Modified by Amendment No. 1 Thereto, To Establish Rules
for the Trading of Listed Options); Securities Exchange Act Release
No. 59454 (February 25, 2009), 74 FR 9461 (March 9, 2009) (SR-
NYSEALTR-2009-17) (Notice of Filing and Immediate Effectiveness of
Proposed Rule Change by NYSE Alternext U.S. LLC To Delete Certain
Rules Governing the Trading of Listed Options).
\8\ For example, the guideline for Rule 16 violations is $1,000
to $5,000. In 2013, a respondent consented to a $50,000 fine for a
violation of Rule 16. See SG Americas Securities (NYSE American
Matter No. 13-NYSEMKT-4). In 2020, the fine for a similar violation
was $95,000--nearly 20 times the top of the guideline range. See
Citigroup Global Markets Inc. (NYSE American Matter No. 2017-11-
00111).
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The Exchange accordingly believes that adopting a new rule that
continues to reflect a principles-based approach to sanctions
guidelines applicable to all options rules that does not contain
specific recommended fine ranges for a subset of rules would modernize
and update the rule in important respects while continuing to provide
flexible guidelines for determining appropriate remedial sanctions
consistent with the intention of the original rule.\9\ The principles-
based guidelines contained in Cboe Rule 13.11 that the Exchange
proposes to adopt are similar to those set forth in the current
guidelines. However, because Cboe Rule 13.11 takes a more streamlined
approach, the Exchange believes the proposed rule more clearly and
succinctly sets forth current relevant considerations regarding the
adjudication of disciplinary actions. Further, the Exchange believes
that the proposed rule would be consistent with the 2000 Order because
the proposal would closely track approved Cboe Rule 13.11 that was also
adopted to satisfy the Commission's order. Indeed, by modernizing and
updating the Exchange's sanctions guidelines, proposed Rule 601 would
further enhance its disciplinary processes consistent with the 2000
Order. Finally, the proposed rule would promote regulatory consistency
across options exchanges in determining appropriate remedial sanctions
for violations of options rules.
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\9\ See 67 FR at 6771.
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Like current Rule 476.10, proposed Rule 601 would not apply to the
equities market.\10\ As such, Rule 601 would carry forward the current
practice under Rule 476.10 whereby the various bodies with
responsibility for the adjudication of disciplinary actions, including
Hearing Panels, Hearing Officers, the Committee for Review (``CFR''),
and the Board of Directors (``Board''), defined in the proposed Rule
collectively as ``Adjudicatory Bodies,'' \11\ would consider relevant
Exchange precedent or such other precedent as they deem appropriate in
determining sanctions imposed against ATP Holders or ATP Firms and
their covered persons.
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\10\ See note 6, supra.
\11\ The Exchange proposes to add two terms to the definition of
``Adjudicatory Bodies'': ``Extended Hearing Panels,'' which are
provided for in the Exchange's disciplinary rules, and Chief
Regulatory Officer (``CRO''), given the CRO's role in the
disciplinary and settlement processes.
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The remainder of the proposed Rule, with the following exceptions,
would be substantially the same as Cboe Rule 13.11.01:
First, the second paragraph in the proposed Rule would
transpose the updated definition of ``Adjudicatory Bodies'' \12\ from
the second paragraph of
[[Page 74546]]
current Rule 476.10(A) and the last two sentences of the third
paragraph of current Rule 476.10(A).
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\12\ See note 10, supra.
---------------------------------------------------------------------------
Second, references to ``Cboe Options Trading Permit
Holders'' in Cboe Rule 13.11.01 would be replaced with ``ATP Holders or
ATP Firms'' to reflect the Exchange's membership.
Third, in proposed Rule 601(d), the Exchange would omit
the second sentence in Cboe Rule 13.11.01(d), which is duplicative of
the first sentence that the Exchange would retain.
Fourth, in proposed Rule 601(e), the Exchange would omit
the first sentence of Cboe Rule 13.11.01(e), which provides that
``Aggregation of violations may be appropriate in certain instances for
purposes of determining sanctions,'' as redundant of the second
sentence of Cboe Rule 13.11.01(e), which the Exchange would retain.
Fifth, in proposed Rule 601(f), the Exchange would omit
the first sentence of Cboe Rule 13.11.01(f), which provides that ``The
Hearing Panel or the CRO, as applicable, should evaluate
appropriateness of disgorgement and/or restitution,'' as redundant of
the sentence of Cboe Rule 13.11.01(f), which the Exchange would retain.
Finally, consistent with the Exchange's desire to adopt
streamlined, principles-based sanctions guidelines along the lines set
forth in Cboe Rule 13.11.01, the Exchange would not carry forward the
specific recommended monetary and non-monetary sanctions applicable to
certain specific rule violations found in current Rule 476.10.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(5) of the Act,\13\ in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, to
remove impediments to and perfect the mechanism of a free and open
market and a national market system and, in general, to protect
investors and the public interest. In addition, the Exchange believes
that the proposed rule change furthers the objectives of Section
6(b)(7) of the Act,\14\ in particular, in that it provides fair
procedures for the disciplining of members and persons associated with
members,\15\ the denial of membership to any person seeking membership
therein, the barring of any person from becoming associated with a
member thereof, and the prohibition or limitation by the Exchange of
any person with respect to access to services offered by the Exchange
or a member thereof.
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\13\ 15 U.S.C. 78f(b)(5).
\14\ 15 U.S.C. 78f(b)(7).
\15\ Under the Exchange's equities rules, the equivalent to the
term ``member'' in this context is ``member organization.''
References to ``member'' and ``member organization'' as those terms
are used in the rules of the Exchange include ATP Holders. See Rules
18, 24 & 900.2NY(5). See Release No. 77241, 81 FR 11318, notes 25-
26, & 11334, n. 75.
---------------------------------------------------------------------------
Specifically, the Exchange believes that deletion of the obsolete
legacy disciplinary rules now that there are no longer any member
organizations or persons subject to those rules, and making conforming
changes to the rules referencing those legacy disciplinary rules, would
increase the clarity and transparency of the Exchange's rules and
remove impediments to and perfect the mechanism of a free and open
market by ensuring that persons subject to the Exchange's jurisdiction,
regulators, and the investing public could more easily navigate and
understand the Exchange Bylaws and rules. The Exchange further believes
that the proposed amendments would not be inconsistent with the public
interest and the protection of investors because investors will not be
harmed and in fact would benefit from increased transparency and
clarity, thereby reducing potential confusion.
The Exchange further believes that retaining the substantive
offenses in Rule 476(a) without change is designed to prevent
fraudulent and manipulative acts and practices by permitting the
Exchange to continue to carry out its oversight and enforcement
responsibilities with respect to the substantive provisions currently
enumerated in Rule 476(a). For the same reasons, retention of those
provisions would not be inconsistent with the public interest and the
protection of investors.
Finally, the Exchange believes that adopting sanction guidelines
similar to Cboe Rule 13.11.01 with only non-substantive, conforming
changes that do not contain specific recommended fine ranges for a
subset of rules would continue to permit the Exchange to impose
sanctions consistently and fairly by reference to a streamlined rule,
thereby continuing to provide fair procedures for the disciplining of
members and persons associated with members, the denial of membership
to any person seeking Exchange membership, the barring of any person
from becoming associated with a member, and the prohibition or
limitation by the Exchange of any person with respect to access to
services offered by the Exchange or a member thereof pursuant to
Section 6(b)(7) \16\ of the Act.
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\16\ 15 U.S.C. 78f(b)(7).
---------------------------------------------------------------------------
The proposed rule would provide flexible and appropriate
principles-based guidelines applicable to all options rules for
determining remedial sanctions consistent with the intention of the
Exchange's current sanctions guidelines rule.\17\ However, the Exchange
believes that dispensing with recommended fine ranges would modernize
and update the rule in important respects. As noted, there are
currently fine ranges for numerous rules that have been superseded or
deleted, and the fine ranges for the remaining operative rules do not
reflect more recent regulatory considerations and fine levels.
Moreover, by adopting Cboe Rule 13.11's more streamlined approach to
sanctions guidelines, the Exchange believes the proposed rule would
more clearly and succinctly set forth the current relevant
considerations regarding the adjudication of disciplinary actions.
Further, the Exchange believes that the proposed rule would also be
consistent with the 2000 Order because the proposal would closely track
approved Cboe Rule 13.11 that was adopted to satisfy the same
Commission order. Indeed, the Exchange believes that by modernizing and
updating its sanctions guidelines, proposed Rule 601 would further
enhance its disciplinary processes consistent with the 2000 Order and
further ensure that the Exchange implements the most appropriate
disciplinary mechanisms for violations and a fair process in
determining same. Finally, the proposed rule would promote regulatory
consistency and uniformity across options exchanges in determining
appropriate remedial sanctions and the imposition of penalties.
---------------------------------------------------------------------------
\17\ See 67 FR at 6771.
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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 Exchange Act. The proposed rule
change is not intended to address competitive issues but rather is
concerned solely with deleting obsolete rules and making related and
conforming changes.
[[Page 74547]]
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 \18\ and Rule 19b-4(f)(6) thereunder.\19\
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) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\20\
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\18\ 15 U.S.C. 78s(b)(3)(A)(iii).
\19\ 17 CFR 240.19b-4(f)(6).
\20\ 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 satisfied this requirement.
---------------------------------------------------------------------------
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) \21\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\21\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-NYSEAMER-2023-49 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-NYSEAMER-2023-49. 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-NYSEAMER-2023-49 and should be submitted on or
before November 21, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-23940 Filed 10-30-23; 8:45 am]
BILLING CODE 8011-01-P
