Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Equities Fees and Charges, Also NYSE Arca Rules 7.31-E, 7.34-E, 7.36-E, 7.37-E and 7.38-E, 5271-5273 [2024-01507]
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<![CDATA[
Federal Register / Vol. 89, No. 18 / Friday, January 26, 2024 / Notices
legacy/companysearch.html. You may
also call the SEC’s Public Reference
Room at (202) 551–8090.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Dated: January 23, 2024.
Sherry R. Haywood,
Assistant Secretary.
disapprove the proposed rule change.7
On December 20, 2023, pursuant to
section 19(b)(2) of the Exchange Act,8
the Commission designated a longer
period within which to issue an order
approving or disapproving the proposed
rule change.9 On January 17, 2024, the
Exchange withdrew the proposed rule
change (SR–MIAX–2023–23).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–01593 Filed 1–25–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[FR Doc. 2024–01510 Filed 1–25–24; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–99408; File No. SR–MIAX–
2023–23]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Withdrawal of Proposed
Rule Change To Increase Fees for the
ToM Market Data Product and
Establish Fees for the cToM Market
Data Product
January 22, 2024.
On June 7, 2023, Miami International
Securities Exchange, LLC (‘‘MIAX’’ or
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change
(File Number SR–MIAX–2023–23) to
increase fees for the MIAX Top of
Market (‘‘ToM’’) market data product
and establish fees for the MIAX
Complex Top of Market (‘‘cToM’’)
market data product. The proposed rule
change was immediately effective upon
filing with the Commission pursuant to
section 19(b)(3)(A) of the Act.3 The
proposed rule change was published for
comment in the Federal Register on
June 26, 2023.4 On August 3, 2023, the
Commission issued an order
temporarily suspending the proposed
rule change pursuant to section
19(b)(3)(C) of the Act 5 and
simultaneously instituting proceedings
under section 19(b)(2)(B) of the Act 6 to
determine whether to approve or
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A). A proposed rule change
may take effect upon filing with the Commission if
it is designated by the exchange as ‘‘establishing or
changing a due, fee, or other charge imposed by the
self-regulatory organization on any person, whether
or not the person is a member of the self-regulatory
organization.’’ 15 U.S.C. 78s(b)(3)(A)(ii).
4 See Securities Exchange Act Release No. 97768
(June 20, 2023), 88 FR 41423 (‘‘Notice’’).
5 15 U.S.C. 78s(b)(3)(C).
6 15 U.S.C. 78s(b)(2)(B).
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99405; File No. SR–
NYSEARCA–2024–04]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the NYSE Arca
Equities Fees and Charges, Also NYSE
Arca Rules 7.31–E, 7.34–E, 7.36–E,
7.37–E and 7.38–E
January 22, 2024.
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 January
10, 2024, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
NYSE Arca Equities Fees and Charges
(‘‘Fee Schedule’’) to amend a rule
reference related to the definition of
Retail Orders. The Exchange is not
proposing any change to fees and
credits. The Exchange also proposes to
1 15
lotter on DSK11XQN23PROD with NOTICES1
2 17
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7 See Securities Exchange Act Release No. 98050,
88 FR 53941 (August 9, 2023) (‘‘Order Instituting
Proceedings’’).
8 15 U.S.C. 78s(b)(2).
9 See Securities Exchange Act Release No. 99210,
88 FR 89484 (December 27, 2023). The Commission
designated February 21, 2024, as the date by which
the Commission shall approve or disapprove the
proposed rule change.
10 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
PO 00000
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5271
amend NYSE Arca Rules 7.31–E, 7.34–
E, 7.36–E, 7.37–E and 7.38–E. 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 amend the
Fee Schedule to amend a rule reference
related to the definition of Retail Orders.
The Exchange is not proposing any
change to fees and credits. The
Exchange also proposes to amend NYSE
Arca Rules 7.31–E, 7.34–E, 7.36–E,
7.37–E and 7.38–E to delete references
to an obsolete rule.
Currently, the Exchange’s Fee
Schedule provides specified fees and
credits for agency orders that originate
from a natural person and are submitted
to the Exchange by an ETP Holder,3
provided that no change is made to the
terms of the order with respect to price
or side of market and the order does not
originate from a trading algorithm or
any other computerized methodology.4
The Exchange’s rules concerning such
‘‘retail orders’’ are set out in Rule 7.31–
E(i)(4).5 On the Fee Schedule, these
orders are identified as Retail Orders.
Specifically, under Section III. titled
3 See
Rule 1.1 (definitions of ETP & ETP Holder).
Securities Exchange Act Release No. 67540
(July 30, 2012), 77 FR 46539 (August 3, 2012) (SR–
NYSEArca–2012–77).
5 See Securities Exchange Act Release No. 94121
(February 1, 2022), 87 FR 6900 (February 7, 2022)
(SR–NYSEARCA–2022–07). Rule 7.31–E(i)(4)(A)
provides that an ‘‘order designated with a ‘‘retail’’
modifier is an agency order or a riskless principal
order that meets the criteria of FINRA Rule 5320.03
that originates from a natural person and is
submitted to the Exchange by an ETP Holder,
provided that no change is made to the terms of the
order with respect to price or side of market and
the order does not originate from a trading
algorithm or any other computerized methodology.’’
4 See
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Federal Register / Vol. 89, No. 18 / Friday, January 26, 2024 / Notices
Standard Rates—Transactions, footnote
(c) currently states that ‘‘Retail Order
means an order as defined in Rule 7.44–
E(a)(3).’’
In a recent rule filing that
discontinued the Exchange’s Retail
Liquidity Program, the Exchange
deleted Rule 7.44–E in its entirety,
including Rule 7.44–E(A)(3), which
defined the term Retail Order.6 Given
the discontinuance of the Retail
Liquidity Program on the Exchange, and
the subsequent deletion of Rule 7.44–
E(a)(3), the Exchange proposes to amend
footnote (c) under Section III. of the Fee
Schedule to replace the cross-reference
in the footnote from now deleted Rule
7.44–E(A)(3) to Rule 7.31–E(i)(4). As
proposed, footnote (c) would state that
‘‘Retail Order means an order
designated with a ‘‘retail’’ modifier as
provided in Rule 7.31–E(i)(4).’’
Additionally, Rules 7.31–E, 7.34–E,
7.36–E, 7.37–E and 7.38–E each
currently contain a reference to Rule
7.44–E, which, as noted above, was
deleted when the Exchange
discontinued its Retail Liquidity
Program. The Exchange thus proposes to
also delete reference to Rule 7.44–E
from Rule 7.31–E, 7.34–E, 7.36–E, 7.37–
E and 7.38–E.
The Exchange believes the proposed
change would delete reference to an
obsolete rule from the Exchange’s rules
and correct a rule reference in the Fee
Schedule by replacing a cross-reference
in the Fee Schedule from a rule that was
recently deleted and is now obsolete to
Rule 7.31–E(i)(4) which is currently in
effect and which defines ‘‘retail orders.’’
The proposed changes are not
otherwise intended to address any other
issues, and the Exchange is not aware of
any significant problems that market
participants would have in complying
with the proposed changes.
2. Statutory Basis
lotter on DSK11XQN23PROD with NOTICES1
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act,7 in general, and
furthers the objectives of sections 6(b)(4)
and(5) of the Act,8 in particular, because
it provides for the equitable allocation
of reasonable dues, fees, and other
charges among its members, issuers and
other persons using its facilities and
does not unfairly discriminate between
customers, issuers, brokers or dealers.
6 See Securities Exchange Act Release No. 98168
(August 18, 2023), 88 FR 57980 (August 24, 2023)
(SR–NYSEARCA–2023–55). There is no substantive
difference between the definition of Retail Order
under current Rule 7.31–E and how a Retail Order
was defined under the now deleted Rule 7.44–E.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(4) and (5).
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In particular, the Exchange believes
its proposal to replace Rule 7.44–E(a)(3)
from footnote (c) under Section III. of
the Fee Schedule with Rule 7.31–E(i)(4)
to correct the cross-reference are
consistent with the Act because the
proposed change would update the
Exchange’s rules to delete an obsolete
rule and update the Fee Schedule to
correct a cross-reference from a recently
deleted rule to a current rule. The
proposal otherwise involves no
substantive change. Additionally, the
proposed change would promote just
and equitable principles of trade and is
designed to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system as it would update the
Exchange’s rules to delete reference to
an obsolete rule and update the Fee
Schedule by replacing a cross-reference
from a rule that is now obsolete to a rule
currently in effect.
For the foregoing reasons, the
Exchange believes that the proposal is
consistent with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with section 6(b)(8) of
the Act,9 the Exchange believes that the
proposed rule change would not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
Intramarket Competition. The
Exchange believes the proposed rule
change does not impose any burden on
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Specifically,
the Exchange does not believe that its
proposal to amend the Fee Schedule to
correct a cross-reference from a rule that
was recently deleted to a current rule
will have any impact on competition as
the change is intended to update
obsolete rule references and involves no
substantive change.
Intermarket Competition. The
Exchange believes the proposed rule
changes does not impose any burden on
intermarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange operates in a highly
competitive market. ETP Holders have
numerous alternative venues that they
may participate on and direct their
order flow, including other equities
exchanges, off-exchange venues, and
alternative trading systems. By
amending the cross-reference, as
proposed herein, the Exchange is
updating obsolete rule references to its
rules and to the Fee Schedule.
9 15
PO 00000
U.S.C. 78f(b)(8).
Frm 00073
Fmt 4703
Sfmt 4703
Accordingly, the Exchange does not
believe its proposed change imposes
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
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 10 and Rule
19b–4(f)(6) thereunder.11 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
for 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 12 and Rule 19b–4(f)(6)
thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),15 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposed
rule change may become operative
immediately. The Exchange states that
the proposed change will not adversely
impact investors and will permit the
Exchange to amend the cross reference
from an obsolete rule to a current rule
in order to alleviate potential investor or
public confusion. Based on the
foregoing, the Commission believes that
waiving the 30-day operative delay is
10 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
12 15 U.S.C. 78s(b)(3)(A).
13 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.
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
11 17
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Federal Register / Vol. 89, No. 18 / Friday, January 26, 2024 / Notices
consistent with the protection of
investors and the public interest. For
this reason, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.16
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
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:
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. 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–2024–
04, and should be submitted on or
before February 16, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Sherry R. Haywood,
Assistant Secretary.
lotter on DSK11XQN23PROD with NOTICES1
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–2024–04. 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
16 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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rule change was published for comment
in the Federal Register on June 26,
2023.4 On August 3, 2023, the
Commission issued an order
temporarily suspending the proposed
rule change pursuant to section
19(b)(3)(C) of the Act 5 and
simultaneously instituting proceedings
under section 19(b)(2)(B) of the Act 6 to
determine whether to approve or
disapprove the proposed rule change.7
On December 20, 2023, pursuant to
section 19(b)(2) of the Exchange Act,8
the Commission designated a longer
period within which to issue an order
approving or disapproving the proposed
rule change.9 On January 17, 2024, the
Exchange withdrew the proposed rule
change (SR–EMERALD–2023–13).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–01509 Filed 1–25–24; 8:45 am]
BILLING CODE 8011–01–P
[FR Doc. 2024–01507 Filed 1–25–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2024–04 on the subject
line.
5273
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99409; File No. SR–
NYSEARCA–2024–05]
[Release No. 34–99407; File No. SR–
EMERALD–2023–13]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change To List and Trade Shares
of the COtwo Advisors Physical
European Carbon Allowance Trust
Under NYSE Arca Rule 8.201–E
(Commodity-Based Trust Shares)
Self-Regulatory Organizations; MIAX
Emerald, LLC; Notice of Withdrawal of
Proposed Rule Change To Increase
Fees for the ToM Market Data Product
and Establish Fees for the cToM
Market Data Product
January 22, 2024.
On June 7, 2023, MIAX Emerald, LLC
(‘‘MIAX Emerald’’ or the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’),1 and
Rule 19b–4 thereunder,2 a proposed rule
change (File Number SR–EMERALD–
2023–13) to increase fees for the MIAX
Emerald Top of Market (‘‘ToM’’) market
data product and establish fees for the
MIAX Emerald Complex Top of Market
(‘‘cToM’’) market data product. The
proposed rule change was immediately
effective upon filing with the
Commission pursuant to section
19(b)(3)(A) of the Act.3 The proposed
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A). A proposed rule change
may take effect upon filing with the Commission if
it is designated by the exchange as ‘‘establishing or
changing a due, fee, or other charge imposed by the
self-regulatory organization on any person, whether
1 15
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
January 22, 2024.
Pursuant to section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on January
10, 2024, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
or not the person is a member of the self-regulatory
organization.’’ 15 U.S.C. 78s(b)(3)(A)(ii).
4 See Securities Exchange Act Release No. 97767
(June 20, 2023), 88 FR 41442 (‘‘Notice’’).
5 15 U.S.C. 78s(b)(3)(C).
6 15 U.S.C. 78s(b)(2)(B).
7 See Securities Exchange Act Release No. 98051,
88 FR 53937 (August 9, 2023) (‘‘Order Instituting
Proceedings’’).
8 15 U.S.C. 78s(b)(2).
9 See Securities Exchange Act Release No. 99209,
88 FR 89485 (December 27, 2023). The Commission
designated February 21, 2024, as the date by which
the Commission shall approve or disapprove the
proposed rule change.
10 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
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]]>Agencies
[Federal Register Volume 89, Number 18 (Friday, January 26, 2024)]
[Notices]
[Pages 5271-5273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01507]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99405; File No. SR-NYSEARCA-2024-04]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE
Arca Equities Fees and Charges, Also NYSE Arca Rules 7.31-E, 7.34-E,
7.36-E, 7.37-E and 7.38-E
January 22, 2024.
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 January 10, 2024, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``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.
---------------------------------------------------------------------------
\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 the NYSE Arca Equities Fees and
Charges (``Fee Schedule'') to amend a rule reference related to the
definition of Retail Orders. The Exchange is not proposing any change
to fees and credits. The Exchange also proposes to amend NYSE Arca
Rules 7.31-E, 7.34-E, 7.36-E, 7.37-E and 7.38-E. 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 amend the Fee Schedule to amend a rule
reference related to the definition of Retail Orders. The Exchange is
not proposing any change to fees and credits. The Exchange also
proposes to amend NYSE Arca Rules 7.31-E, 7.34-E, 7.36-E, 7.37-E and
7.38-E to delete references to an obsolete rule.
Currently, the Exchange's Fee Schedule provides specified fees and
credits for agency orders that originate from a natural person and are
submitted to the Exchange by an ETP Holder,\3\ provided that no change
is made to the terms of the order with respect to price or side of
market and the order does not originate from a trading algorithm or any
other computerized methodology.\4\ The Exchange's rules concerning such
``retail orders'' are set out in Rule 7.31-E(i)(4).\5\ On the Fee
Schedule, these orders are identified as Retail Orders. Specifically,
under Section III. titled
[[Page 5272]]
Standard Rates--Transactions, footnote (c) currently states that
``Retail Order means an order as defined in Rule 7.44-E(a)(3).''
---------------------------------------------------------------------------
\3\ See Rule 1.1 (definitions of ETP & ETP Holder).
\4\ See Securities Exchange Act Release No. 67540 (July 30,
2012), 77 FR 46539 (August 3, 2012) (SR-NYSEArca-2012-77).
\5\ See Securities Exchange Act Release No. 94121 (February 1,
2022), 87 FR 6900 (February 7, 2022) (SR-NYSEARCA-2022-07). Rule
7.31-E(i)(4)(A) provides that an ``order designated with a
``retail'' modifier is an agency order or a riskless principal order
that meets the criteria of FINRA Rule 5320.03 that originates from a
natural person and is submitted to the Exchange by an ETP Holder,
provided that no change is made to the terms of the order with
respect to price or side of market and the order does not originate
from a trading algorithm or any other computerized methodology.''
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In a recent rule filing that discontinued the Exchange's Retail
Liquidity Program, the Exchange deleted Rule 7.44-E in its entirety,
including Rule 7.44-E(A)(3), which defined the term Retail Order.\6\
Given the discontinuance of the Retail Liquidity Program on the
Exchange, and the subsequent deletion of Rule 7.44-E(a)(3), the
Exchange proposes to amend footnote (c) under Section III. of the Fee
Schedule to replace the cross-reference in the footnote from now
deleted Rule 7.44-E(A)(3) to Rule 7.31-E(i)(4). As proposed, footnote
(c) would state that ``Retail Order means an order designated with a
``retail'' modifier as provided in Rule 7.31-E(i)(4).'' Additionally,
Rules 7.31-E, 7.34-E, 7.36-E, 7.37-E and 7.38-E each currently contain
a reference to Rule 7.44-E, which, as noted above, was deleted when the
Exchange discontinued its Retail Liquidity Program. The Exchange thus
proposes to also delete reference to Rule 7.44-E from Rule 7.31-E,
7.34-E, 7.36-E, 7.37-E and 7.38-E.
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\6\ See Securities Exchange Act Release No. 98168 (August 18,
2023), 88 FR 57980 (August 24, 2023) (SR-NYSEARCA-2023-55). There is
no substantive difference between the definition of Retail Order
under current Rule 7.31-E and how a Retail Order was defined under
the now deleted Rule 7.44-E.
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The Exchange believes the proposed change would delete reference to
an obsolete rule from the Exchange's rules and correct a rule reference
in the Fee Schedule by replacing a cross-reference in the Fee Schedule
from a rule that was recently deleted and is now obsolete to Rule 7.31-
E(i)(4) which is currently in effect and which defines ``retail
orders.''
The proposed changes are not otherwise intended to address any
other issues, and the Exchange is not aware of any significant problems
that market participants would have in complying with the proposed
changes.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\7\ in general, and furthers the
objectives of sections 6(b)(4) and(5) of the Act,\8\ in particular,
because it provides for the equitable allocation of reasonable dues,
fees, and other charges among its members, issuers and other persons
using its facilities and does not unfairly discriminate between
customers, issuers, brokers or dealers.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4) and (5).
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In particular, the Exchange believes its proposal to replace Rule
7.44-E(a)(3) from footnote (c) under Section III. of the Fee Schedule
with Rule 7.31-E(i)(4) to correct the cross-reference are consistent
with the Act because the proposed change would update the Exchange's
rules to delete an obsolete rule and update the Fee Schedule to correct
a cross-reference from a recently deleted rule to a current rule. The
proposal otherwise involves no substantive change. Additionally, the
proposed change would promote just and equitable principles of trade
and is designed to remove impediments to and perfect the mechanism of a
free and open market and a national market system as it would update
the Exchange's rules to delete reference to an obsolete rule and update
the Fee Schedule by replacing a cross-reference from a rule that is now
obsolete to a rule currently in effect.
For the foregoing reasons, the Exchange believes that the proposal
is consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with section 6(b)(8) of the Act,\9\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act.
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\9\ 15 U.S.C. 78f(b)(8).
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Intramarket Competition. The Exchange believes the proposed rule
change does not impose any burden on intramarket competition that is
not necessary or appropriate in furtherance of the purposes of the Act.
Specifically, the Exchange does not believe that its proposal to amend
the Fee Schedule to correct a cross-reference from a rule that was
recently deleted to a current rule will have any impact on competition
as the change is intended to update obsolete rule references and
involves no substantive change.
Intermarket Competition. The Exchange believes the proposed rule
changes does not impose any burden on intermarket competition that is
not necessary or appropriate in furtherance of the purposes of the Act.
The Exchange operates in a highly competitive market. ETP Holders have
numerous alternative venues that they may participate on and direct
their order flow, including other equities exchanges, off-exchange
venues, and alternative trading systems. By amending the cross-
reference, as proposed herein, the Exchange is updating obsolete rule
references to its rules and to the Fee Schedule. Accordingly, the
Exchange does not believe its proposed change imposes any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act.
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 \10\ and Rule 19b-4(f)(6) thereunder.\11\
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 for 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 \12\ and Rule 19b-
4(f)(6) thereunder.\13\
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\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become operative immediately. The Exchange states that
the proposed change will not adversely impact investors and will permit
the Exchange to amend the cross reference from an obsolete rule to a
current rule in order to alleviate potential investor or public
confusion. Based on the foregoing, the Commission believes that waiving
the 30-day operative delay is
[[Page 5273]]
consistent with the protection of investors and the public interest.
For this reason, the Commission hereby waives the 30-day operative
delay and designates the proposal operative upon filing.\16\
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule 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 [email protected]. Please include
file number SR-NYSEARCA-2024-04 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-2024-04. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. 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-2024-04, and
should be submitted on or before February 16, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-01507 Filed 1-25-24; 8:45 am]
BILLING CODE 8011-01-P
