Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Partial Amendment No. 1 and Amendment No. 2, To Modify the Amended and Restated Stock Options and Futures Settlement Agreement and Make Certain Revisions to the NSCC Rules, 14122-14123 [2024-03775]
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14122
Federal Register / Vol. 89, No. 38 / Monday, February 26, 2024 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
disapprove the Proposed Rule Change.6
On November 8, 2023, OCC filed a
Partial Amendment No. 1 to the
Proposed Rule Change.7 On November
14, 2023, the Commission published
notice of Partial Amendment No. 1 and
instituted proceedings, pursuant to
section 19(b)(2)(B) of the Exchange Act,8
to determine whether to approve or
disapprove the proposed rule change, as
modified by the Partial Amendment No.
1.9 On January 23, 2024, OCC filed
Amendment No. 2 to the Proposed Rule
Change, which was published in the
Federal Register for public comment on
January 30, 2024.10 The Commission
has received comments regarding the
Proposed Rule Change.11
Section 19(b)(2) of the Exchange
Act 12 provides that proceedings to
determine whether to approve or
disapprove a proposed rule change must
be concluded within 180 days of the
date of publication of notice of filing of
the proposed rule change. The time for
conclusion of the proceedings may be
6 Securities Exchange Act Release No. 98508 (Sep.
25, 2023), 88 FR 67407 (Sep. 29, 2023) (File No. SR–
OCC–2023–007).
7 Partial Amendment No. 1 delays
implementation of the proposed change; however,
Partial Amendment No. 1 was amended and
replaced by Amendment No. 2. See Notice of
Amendment infra note 10, at 89 FR 5974.
8 15 U.S.C. 78s(b)(2)(B).
9 See Securities Exchange Act Release No. 98932
(Nov. 14, 2023), 88 FR 80781 (Nov. 20, 2023) (File
No. SR–OCC–2023–007).
10 See Securities Exchange Act Release No. 99426
(Jan. 24, 2024), 89 FR 5974 (Jan. 30, 2024) (File No.
SR–OCC–2023–007) (‘‘Notice of Amendment’’).
Amendment No. 2 adds a second phase of changes
to the proposed rule change. The changes added in
Phase 2 include improved information sharing
between OCC and NSCC and are designed to
facilitate the shortening of the standard settlement
cycle for most broker-dealer transactions from T+2
to T+1. See Securities Exchange Act Release No.
96930 (Feb. 15, 2023), 88 FR 13872 (Mar. 6, 2023)
(File No. S7–05–22).
11 Comments on the Advance Notice are available
at https://www.sec.gov/comments/sr-occ-2023-801/
srocc2023801.htm. The Commission received one
comment supporting the proposed changes. See
comment from John P. Davidson, Principal, Pirnie
Advisory (Oct. 4, 2023), available at https://
www.sec.gov/comments/sr-occ-2023-801/
srocc2023801-268179-645042.htm. Since the
proposal contained in the Advance Notice was also
filed as a proposed rule change, all public
comments received on the proposal are considered
regardless of whether the comments are submitted
on the Proposed Rule Change or the Advance
Notice. Comments on the Proposed Rule Change are
available at https://www.sec.gov/comments/sr-occ2023-007/srocc2023007.htm. The Commission
received comments on the proposed rule change
that express concerns unrelated to the substance of
the filing. See, e.g., comment from Gregory
Englebert (Feb. 2, 2024) (raising concerns about a
conflict of interest in the role of Financial Risk
Management Officers as well as margin calls)
comment from Curtis H. (Feb. 3, 2024) (referencing
short selling and margin), and comment from CK
Kashyap (Feb. 5, 2024) (referring to broker risk
management in response to margin).
12 15 U.S.C. 78s(b)(2).
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16:23 Feb 23, 2024
Jkt 262001
extended for up to 60 days if the
Commission determines that a longer
period is appropriate and publishes the
reasons for such determination.13 The
180th day after publication of the Notice
in the Federal Register is February 26,
2024.
The Commission is extending the
period for Commission action on the
Proposed Rule Change, as modified by
Partial Amendment No. 1 and
Amendment No. 2 (hereinafter, the
‘‘Proposed Rule Change’’). The
Commission finds that it is appropriate
to designate a longer period within
which to take action on the Proposed
Rule Change so that the Commission has
sufficient time to consider the issues
raised by the Proposed Rule Change and
to take action on the Proposed Rule
Change. Accordingly, pursuant to
section 19(b)(2)(B)(ii)(II) of the Exchange
Act,14 the Commission designates April
26, 2024, as the date by which the
Commission should either approve or
disapprove the Proposed Rule Change
SR–OCC–2023–007.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–03776 Filed 2–23–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99567; File No. SR–NSCC–
2023–007]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Designation of
Longer Period for Commission Action
on Proceedings To Determine Whether
To Approve or Disapprove a Proposed
Rule Change, as Modified by Partial
Amendment No. 1 and Amendment No.
2, To Modify the Amended and
Restated Stock Options and Futures
Settlement Agreement and Make
Certain Revisions to the NSCC Rules
February 20, 2024.
On August 10, 2023, National
Securities Clearing Corporation
(‘‘NSCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
proposed rule change SR–NSCC–2023–
007 (‘‘Proposed Rule Change’’) pursuant
to Section 19(b) of the Securities
Exchange Act of 1934 (‘‘Exchange
13 15
U.S.C 78s(b)(2)(B)(ii)(II).
14 Id.
15 17
PO 00000
CFR 200.30–3(a)(57).
Frm 00083
Fmt 4703
Sfmt 4703
Act’’) 1 and Rule 19b–4 2 thereunder to
modify the Amended and Restated
Stock Options and Futures Settlement
Agreement dated August 5, 2017,
between NSCC and the Options Clearing
Corporation (‘‘OCC’’) and make certain
revisions to NSCC’s related Rules &
Procedures.3 The Proposed Rule Change
was published for public comment in
the Federal Register on August 30,
2023.4
On September 25, 2023, pursuant to
section 19(b)(2) of the Exchange Act,5
the Commission designated a longer
period within which to approve,
disapprove, or institute proceedings to
determine whether to approve or
disapprove the Proposed Rule Change.6
On November 8, 2023, NSCC filed a
Partial Amendment No. 1 to the
Proposed Rule Change.7 On November
14, 2023, the Commission published
notice of Partial Amendment No. 1 and
instituted proceedings, pursuant to
section 19(b)(2)(B) of the Exchange Act,8
to determine whether to approve or
disapprove the proposed rule change, as
modified by the Partial Amendment No.
1.9 On January 24, 2024, NSCC filed
Amendment No. 2 to the Proposed Rule
Change, which was published in the
Federal Register for public comment on
January 31, 2024.10 The Commission
has received no comments regarding the
substance of the Proposed Rule
Change.11
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Capitalized terms not defined herein are defined
in the NSCC Rules. The NSCC Rules are available
at www.dtcc.com/-/media/Files/Downloads/legal/
rules/nscc_rules.pdf.
4 Securities Exchange Act Release No. 98213
(Aug. 24, 2023), 88 FR 59968 (Aug. 30, 2023) (File
No. SR–NSCC–2023–007) (‘‘Notice of Filing’’).
5 15 U.S.C. 78s(b)(2).
6 Securities Exchange Act Release No. 98508 (Sep.
25, 2023), 88 FR 67407 (Sep. 29, 2023) (File No. SR–
NSCC–2023–007).
7 Partial Amendment No. 1 delays
implementation of the proposed change; however,
Partial Amendment No. 1 was amended and
replaced by Amendment No. 2. See Notice of
Amendment infra note 10, at 89 FR 6140.
8 15 U.S.C. 78s(b)(2)(B).
9 Securities Exchange Act Release No. 98930
(Nov. 14, 2023), 88 FR 80790 (Nov. 20, 2023) (File
No. SR–NSCC–2023–007).
10 Securities Exchange Act Release No. 99432
(Jan. 25, 2024), 89 FR 6140 (Jan. 31, 2024) (File No.
SR–NSCC–2023–007) (‘‘Notice of Amendment’’).
Amendment No. 2 adds a second phase of changes
to the proposed rule change. The changes added in
Phase 2 include improved information sharing
between OCC and NSCC and are designed to
facilitate the shortening of the standard settlement
cycle for most broker-dealer transactions from T+2
to T+1. See Securities Exchange Act Release No.
96930 (Feb. 15, 2023), 88 FR 13872 (Mar. 6, 2023)
(File No. S7–05–22).
11 The Commission received comments
expressing general concerns unrelated to the
substance of the filing. See, e.g., comments from JT
Clark (Oct. 10, 2024) (general concern about
2 17
E:\FR\FM\26FEN1.SGM
26FEN1
Federal Register / Vol. 89, No. 38 / Monday, February 26, 2024 / Notices
Section 19(b)(2) of the Exchange
Act 12 provides that proceedings to
determine whether to approve or
disapprove a proposed rule change must
be concluded within 180 days of the
date of publication of notice of filing of
the proposed rule change. The time for
conclusion of the proceedings may be
extended for up to 60 days if the
Commission determines that a longer
period is appropriate and publishes the
reasons for such determination.13 The
180th day after publication of the Notice
in the Federal Register is February 26,
2024.
The Commission is extending the
period for Commission action on the
Proposed Rule Change, as modified by
Partial Amendment No. 1 and
Amendment No. 2 (hereinafter, the
‘‘Proposed Rule Change’’). The
Commission finds that it is appropriate
to designate a longer period within
which to take action on the Proposed
Rule Change so that the Commission has
sufficient time to consider the issues
raised by the Proposed Rule Change and
to take action on the Proposed Rule
Change. Accordingly, pursuant to
section 19(b)(2)(B)(ii)(II) of the Exchange
Act,14 the Commission designates April
26, 2024, as the date by which the
Commission should either approve or
disapprove the Proposed Rule Change
SR–NSCC–2023–007.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–03775 Filed 2–23–24; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change Amending Rule 7.31E(a)(2)(B)
Regarding Limit Order Price Protection
khammond on DSKJM1Z7X2PROD with NOTICES
corruption in the markets) and Anthony LaBree
(Oct. 12, 2024) (concerns about OCC’s business
practices). Comments are available at https://
www.sec.gov/comments/sr-nscc-2023-007/
srnscc2023007.htm.
12 15 U.S.C. 78s(b)(2).
13 15 U.S.C 78s(b)(2)(B)(ii)(II).
14 Id.
15 17 CFR 200.30–3(a)(57).
1 15 U.S.C. 78s(b)(1).
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16:23 Feb 23, 2024
Jkt 262001
The Exchange proposes to amend
Rule 7.31E(a)(2)(B) regarding Limit
Order Price Protection. 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.
1. Purpose
[Release No. 34–99566; File No. SR–
NYSEAMER–2024–11]
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
February 20, 2024.
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on February
9,2024, 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, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
The Exchange proposes to amend
Rule 7.31E(a)(2)(B) (‘‘Limit Order Price
Protection’’) to provide for the
application of Limit Order Price
Protection during the Core Trading
Session even where a contra-side NBB
(NBO) has not been established.
Currently, Rule 7.31E(a)(2)(B)
provides that a Limit Order to buy (sell)
will be rejected if it is priced at or above
(below) the greater of $0.15 or a
specified percentage away from the
National Best Offer (National Best Bid)
(‘‘NBO’’ and ‘‘NBB,’’ respectively),4 and
2 15
U.S.C. 78a.
CFR 240.19b–4.
4 For securities with a reference price between
$0.00 and $25.00, the specified percentage is 10%;
for securities with a reference price between $25.01
and $50.00, the specified percentage is 5%; and for
3 17
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
14123
that Limit Order Price Protection will
not be applied to an incoming Limit
Order to buy (sell) if there is no NBO
(NBB).
The Exchange has recently received
requests from market participants to
modify this rule so that during the Core
Trading Session, Limit Order Price
Protection would apply even when no
contra-side NBB or NBO has been
established. In such cases, market
participants have suggested that the
Limit Order Price Protection calculation
should use an alternate reference price,
such as the last consolidated round-lot
price of the trading day or the prior
trading day’s official closing price. That
way, even if no contra-side NBB or NBO
has been established, the Exchange
would still apply Limit Order Price
Protection using the best-available
alternate reference price, thereby
offering market participants greater
protections against the execution of
Limit Orders with aberrant prices
during the Core Trading Session. The
Exchange is aware that the Limit Order
Price Protection rule on the MIAX Pearl
equities exchange (‘‘MIAX Pearl’’)
currently features such a hierarchy of
reference prices, so that Limit Order
Price Protection is applied to all Limit
Orders, even where no contra-side NBB
or NBO has been established.5
In light of these requests from market
participants, the Exchange now
proposes to amend Rule 7.31E(a)(2)(B)
to provide a hierarchy of reference
prices against which Limit Order Price
Protection would apply during the Core
Trading Session. As in the current rule,
during the Core Trading Session, a Limit
Order to buy (sell) would be rejected if
it is priced at or above (below) the
greater of $0.15 or a specified
percentage (as set forth in the
accompanying table) away from the
NBO (NBB). But if such NBO (NBB) has
not yet been established, the Exchange
would use as the reference price the last
consolidated round-lot price of that
trading day, or, if none, the prior trading
day’s Official Closing Price.6
securities with a reference price greater than $50.00,
the specified percentage is 3%.
5 Under current MIAX Pearl rules, a Limit Order
to buy (sell) will be rejected if it is priced at or
above (below) the greater of a specified dollar and
percentage away from (1) the PBO (PBB), or, if
unavailable, (2) the consolidated last sale price
disseminated during the Regular Trading Hours on
trade date, or, if unavailable, (3) the prior day’s
Official Closing Price. See MIAX Pearl Rule
2614(a)(1)(ix)(A).
6 The Exchange’s proposed hierarchy of reference
prices is substantially similar to the hierarchy in the
MIAX Pearl rules. The only differences are that the
Exchange’s proposal (a) would continue to
reference the NBO (NBB) instead of the PBO (PBB),
as the Exchange’s Limit Order Price Protection
E:\FR\FM\26FEN1.SGM
Continued
26FEN1
]]>Agencies
[Federal Register Volume 89, Number 38 (Monday, February 26, 2024)]
[Notices]
[Pages 14122-14123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03775]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99567; File No. SR-NSCC-2023-007]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Designation of Longer Period for Commission
Action on Proceedings To Determine Whether To Approve or Disapprove a
Proposed Rule Change, as Modified by Partial Amendment No. 1 and
Amendment No. 2, To Modify the Amended and Restated Stock Options and
Futures Settlement Agreement and Make Certain Revisions to the NSCC
Rules
February 20, 2024.
On August 10, 2023, National Securities Clearing Corporation
(``NSCC'') filed with the Securities and Exchange Commission
(``Commission'') proposed rule change SR-NSCC-2023-007 (``Proposed Rule
Change'') pursuant to Section 19(b) of the Securities Exchange Act of
1934 (``Exchange Act'') \1\ and Rule 19b-4 \2\ thereunder to modify the
Amended and Restated Stock Options and Futures Settlement Agreement
dated August 5, 2017, between NSCC and the Options Clearing Corporation
(``OCC'') and make certain revisions to NSCC's related Rules &
Procedures.\3\ The Proposed Rule Change was published for public
comment in the Federal Register on August 30, 2023.\4\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Capitalized terms not defined herein are defined in the NSCC
Rules. The NSCC Rules are available at www.dtcc.com/-/media/Files/Downloads/legal/rules/nscc_rules.pdf.
\4\ Securities Exchange Act Release No. 98213 (Aug. 24, 2023),
88 FR 59968 (Aug. 30, 2023) (File No. SR-NSCC-2023-007) (``Notice of
Filing'').
---------------------------------------------------------------------------
On September 25, 2023, pursuant to section 19(b)(2) of the Exchange
Act,\5\ the Commission designated a longer period within which to
approve, disapprove, or institute proceedings to determine whether to
approve or disapprove the Proposed Rule Change.\6\ On November 8, 2023,
NSCC filed a Partial Amendment No. 1 to the Proposed Rule Change.\7\ On
November 14, 2023, the Commission published notice of Partial Amendment
No. 1 and instituted proceedings, pursuant to section 19(b)(2)(B) of
the Exchange Act,\8\ to determine whether to approve or disapprove the
proposed rule change, as modified by the Partial Amendment No. 1.\9\ On
January 24, 2024, NSCC filed Amendment No. 2 to the Proposed Rule
Change, which was published in the Federal Register for public comment
on January 31, 2024.\10\ The Commission has received no comments
regarding the substance of the Proposed Rule Change.\11\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(2).
\6\ Securities Exchange Act Release No. 98508 (Sep. 25, 2023),
88 FR 67407 (Sep. 29, 2023) (File No. SR-NSCC-2023-007).
\7\ Partial Amendment No. 1 delays implementation of the
proposed change; however, Partial Amendment No. 1 was amended and
replaced by Amendment No. 2. See Notice of Amendment infra note 10,
at 89 FR 6140.
\8\ 15 U.S.C. 78s(b)(2)(B).
\9\ Securities Exchange Act Release No. 98930 (Nov. 14, 2023),
88 FR 80790 (Nov. 20, 2023) (File No. SR-NSCC-2023-007).
\10\ Securities Exchange Act Release No. 99432 (Jan. 25, 2024),
89 FR 6140 (Jan. 31, 2024) (File No. SR-NSCC-2023-007) (``Notice of
Amendment''). Amendment No. 2 adds a second phase of changes to the
proposed rule change. The changes added in Phase 2 include improved
information sharing between OCC and NSCC and are designed to
facilitate the shortening of the standard settlement cycle for most
broker-dealer transactions from T+2 to T+1. See Securities Exchange
Act Release No. 96930 (Feb. 15, 2023), 88 FR 13872 (Mar. 6, 2023)
(File No. S7-05-22).
\11\ The Commission received comments expressing general
concerns unrelated to the substance of the filing. See, e.g.,
comments from JT Clark (Oct. 10, 2024) (general concern about
corruption in the markets) and Anthony LaBree (Oct. 12, 2024)
(concerns about OCC's business practices). Comments are available at
https://www.sec.gov/comments/sr-nscc-2023-007/srnscc2023007.htm.
---------------------------------------------------------------------------
[[Page 14123]]
Section 19(b)(2) of the Exchange Act \12\ provides that proceedings
to determine whether to approve or disapprove a proposed rule change
must be concluded within 180 days of the date of publication of notice
of filing of the proposed rule change. The time for conclusion of the
proceedings may be extended for up to 60 days if the Commission
determines that a longer period is appropriate and publishes the
reasons for such determination.\13\ The 180th day after publication of
the Notice in the Federal Register is February 26, 2024.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(2).
\13\ 15 U.S.C 78s(b)(2)(B)(ii)(II).
---------------------------------------------------------------------------
The Commission is extending the period for Commission action on the
Proposed Rule Change, as modified by Partial Amendment No. 1 and
Amendment No. 2 (hereinafter, the ``Proposed Rule Change''). The
Commission finds that it is appropriate to designate a longer period
within which to take action on the Proposed Rule Change so that the
Commission has sufficient time to consider the issues raised by the
Proposed Rule Change and to take action on the Proposed Rule Change.
Accordingly, pursuant to section 19(b)(2)(B)(ii)(II) of the Exchange
Act,\14\ the Commission designates April 26, 2024, as the date by which
the Commission should either approve or disapprove the Proposed Rule
Change SR-NSCC-2023-007.
---------------------------------------------------------------------------
\14\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-03775 Filed 2-23-24; 8:45 am]
BILLING CODE 8011-01-P
