Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.19, 17530-17533 [2024-05053]
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Federal Register / Vol. 89, No. 48 / Monday, March 11, 2024 / Notices
match; gender code does not; Name and
gender code match; DOB does not;
Name matches, DOB, and gender code
do not; Name does not match; DOB and
gender code not checked Death
indicator (yes/no) if applicable; gender
is not required to perform SSN
verifications by SSA; it is optional.
SYSTEM(S) OF RECORDS:
OPM’s system of records involved in
this matching program is OPM/Central1, Civil Service Retirement and
Insurance Published at 73 FR 15013
(March 20, 2008) and 87 FR 5874
(February 2, 2022). SSA’s systems of
records involved in this matching
program are the Master Files of Social
Security Number Holders and SSN
Applications, referred to as the
Enumeration System), 60–0058, last
fully published at 87 FR 263 (January 4,
2022), and the Earnings Recording and
Self Employment Income System, 60–
0059 (referred to as the Master Earnings
File (MEF)) last fully published at 71 FR
1819 (January 11, 2006) and amended at
78 FR. 40542 (July 5, 2013), and 83 FR
54969 (November 1, 2018).
Office of Personnel Management.
Kayyonne Marston,
Federal Register Liaison.
[FR Doc. 2024–05097 Filed 3–8–24; 8:45 am]
BILLING CODE 6325–38–P
POSTAL REGULATORY COMMISSION
[Docket Nos. MC2024–199 and CP2024–205;
MC2024–201 and CP2024–207; MC2024–202
and CP2024–208]
New Postal Products
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is noticing a
recent Postal Service filing for the
Commission’s consideration concerning
a negotiated service agreement. This
notice informs the public of the filing,
invites public comment, and takes other
administrative steps.
DATES: Comments are due: March 13,
2024.
SUMMARY:
Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
ddrumheller on DSK120RN23PROD with NOTICES1
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
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SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Docketed Proceeding(s)
I. Introduction
The Commission gives notice that the
Postal Service filed request(s) for the
Commission to consider matters related
to negotiated service agreement(s). The
request(s) may propose the addition or
removal of a negotiated service
agreement from the Market Dominant or
the Competitive product list, or the
modification of an existing product
currently appearing on the Market
Dominant or the Competitive product
list.
Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s website (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
with the requirements of 39 CFR
3011.301.1
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern Market Dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3030, and 39
CFR part 3040, subpart B. For request(s)
that the Postal Service states concern
Competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3035, and
39 CFR part 3040, subpart B. Comment
deadline(s) for each request appear in
section II.
II. Docketed Proceeding(s)
1. Docket No(s).: MC2024–199 and
CP2024–205; Filing Title: USPS Request
to Add Priority Mail Express, Priority
Mail & USPS Ground Advantage
Contract 47 to Competitive Product List
1 See Docket No. RM2018–3, Order Adopting
Final Rules Relating to Non-Public Information,
June 27, 2018, Attachment A at 19–22 (Order No.
4679).
PO 00000
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and Notice of Filing Materials Under
Seal; Filing Acceptance Date: March 4,
2024; 2 Filing Authority: 39 U.S.C. 3642,
39 CFR 3040.130 through 3040.135, and
39 CFR 3035.105; Public Representative:
Arif Hafiz; Comments Due: March 13,
2024.
2. Docket No(s).: MC2024–201 and
CP2024–207; Filing Title: USPS Request
to Add Priority Mail Express, Priority
Mail & USPS Ground Advantage
Contract 49 to Competitive Product List
and Notice of Filing Materials Under
Seal; Filing Acceptance Date: March 5,
2024; Filing Authority: 39 U.S.C. 3642,
39 CFR 3040.130 through 3040.135, and
39 CFR 3035.105; Public Representative:
Jennaca D. Upperman; Comments Due:
March 13, 2024.
3. Docket No(s).: MC2024–202 and
CP2024–208; Filing Title: USPS Request
to Add Priority Mail & USPS Ground
Advantage Contract 197 to Competitive
Product List and Notice of Filing
Materials Under Seal; Filing Acceptance
Date: March 5, 2024; Filing Authority:
39 U.S.C. 3642, 39 CFR 3040.130
through 3040.135, and 39 CFR 3035.105;
Public Representative: Arif Hafiz;
Comments Due: March 13, 2024.
This Notice will be published in the
Federal Register.
Erica A. Barker,
Secretary.
[FR Doc. 2024–05128 Filed 3–8–24; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99677; File No. SR–NYSE–
2024–10]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
7.19
March 5, 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 February
21, 2024, New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
2 A technical error resulted in this filing not
appearing in the Commission’s dockets system as
expected. This led to a delay in processing and
noticing the filing.
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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Federal Register / Vol. 89, No. 48 / Monday, March 11, 2024 / Notices
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 7.19 to make additional pre-trade
risk controls available to Entering Firms
and Clearing Firms. 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
Rule 7.19 to make additional pre-trade
risk controls available to Entering Firms
and Clearing Firms.
Background and Proposal
ddrumheller on DSK120RN23PROD with NOTICES1
In 2020, in order to assist Member
organizations’ efforts to manage their
risk, the Exchange amended its rules to
add Rule 7.19 (Pre-Trade Risk
Controls),3 which established a set of
optional pre-trade risk controls by
which Entering Firms and their
designated Clearing Firms 4 could set
credit limits and other pre-trade risk
controls for an Entering Firm’s trading
on the Exchange and authorize the
Exchange to take action if those credit
limits or other pre-trade risk controls are
exceeded (the ‘‘2020 Risk Controls’’).
3 See Securities Exchange Act Release No. 88776
(April 29, 2020), 85 FR 26768 (May 5, 2020) (SR–
NYSE–2020–17). Later, in 2023, the Exchange
amended its rules to make additional pre-trade risk
controls available to Entering Firms (the ‘‘2023 Risk
Controls’’). See Securities Exchange Act Release No.
97101 (March 1, 2023), 88 FR 14213 (March 7,
2023) (SR–NYSE–2023–14).
4 The terms ‘‘Entering Firm’’ and ‘‘Clearing Firm’’
are defined in Rule 7.19.
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These pre-trade risk controls include a
Gross Credit Risk Limit, which is
defined in Rule 7.19(b)(1) as ‘‘a preestablished maximum daily dollar
amount for purchases and sales across
all symbols, where both buy and sell
orders are counted as positive values.’’
The current version of Rule 7.19(b)(1)
specifies that both open and executed
orders are considered: ‘‘[f]or purposes of
calculating the Gross Credit Risk Limit,
unexecuted orders in the Exchange
Book, orders routed on arrival pursuant
to Rule 7.37(a)(1), and executed orders
are included.’’
The Exchange has recently received
several requests from market
participants to create two additional
Gross Credit Risk Limit risk controls:
one that includes only open orders and
another that includes only executed
orders. Market participants have
explained that Entering Firms and
Clearing Firms would benefit from
having more granular gross credit risk
controls available, which would allow
them to set limits and breach actions
based solely on open orders or executed
orders, in addition to the Exchange’s
existing Gross Credit Risk Limit that
includes both open and executed orders.
The Exchange notes that the MIAX
Pearl equities exchange (‘‘MIAX Pearl’’)
currently offers risk controls
substantially similar to those proposed
here. Specifically, MIAX Pearl offers its
‘‘Equity Members’’ and their ‘‘Clearing
Members’’ the option to use a ‘‘Gross
Notional Trade Value’’ risk check,
which includes only executed orders,
and a ‘‘Gross Notional Open Value’’ risk
check, which includes only unexecuted
orders, in addition to a ‘‘Gross Notional
Open and Trade Value’’ risk check, for
which both executed and unexecuted
orders are included.5 As such, market
participants are already familiar with
these various gross credit risk checks,
such that the ones proposed by the
Exchange in this filing are not novel.
In light of these requests, the
Exchange proposes to amend Rule
7.19(b)(1) to rename the existing Gross
Credit Risk Limit as ‘‘Gross Credit Risk
Limit—Open + Executed,’’ and to add
two additional risk limits: ‘‘Gross Credit
Risk Limit—Open Only’’ and ‘‘Gross
Credit Risk Limit—Executed Only.’’
Specifically, the Exchange proposes to
amend and reorganize Rule 7.19(b)(1) as
follows. First, the Exchange would
amend the language in the first sentence
of the rule to refer to plural Gross Credit
Risk Limits, instead of just one. At the
end of the first sentence, the Exchange
would add that ‘‘[a]vailable Gross Credit
Risk Limits include’’ the three types
5 See
PO 00000
MIAX Pearl Rule 2618(a)(2)(A), (C), and (E).
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17531
described in new sub-sections (A), (B),
and (C).
Proposed sub-section (A) would
define the ‘‘Gross Credit Risk Limit—
Open + Executed’’ risk check to include
unexecuted orders in the Exchange
Book, orders routed on arrival pursuant
to Rule 7.37(a)(1), and executed orders
(just as the current Gross Credit Risk
Limit does).
Proposed sub-section (B) would
define the ‘‘Gross Credit Risk Limit—
Open Only’’ risk check to include only
unexecuted orders in the Exchange
Book and orders routed on arrival
pursuant to Rule 7.37(a)(1).
Proposed sub-section (C) would
define the ‘‘Gross Credit Risk Limit—
Executed Only’’ risk check to include
executed orders only.
In addition, the Exchange proposes to
make a conforming change to section
(c)(1)(B) of the rule, to make plural the
current singular reference to ‘‘Gross
Credit Risk Limit.’’
Commentary .03
The Exchange also proposes to update
paragraph (a) of Commentary .03
regarding Floor brokers. The current
version of paragraph (a) of Commentary
.03, implemented in 2023, explains that
when a customer of a Floor broker firm
is a member organization, either that
customer or the Floor broker firm may
be considered the ‘‘Entering Firm’’ for
the purposes of setting the 2020 Risk
Controls (which appear in paragraphs
(b)(1) and (b)(2)(A) and the Kill Switch
Actions sections of the current rule) for
the customer’s trading activity on the
Exchange. Under the current rule, the
2023 Risk Controls (which appear in
paragraphs (b)(2)(B) through (b)(2)(F))
are not available to Floor brokers, but
the Exchange noted in its filing for the
2023 Risk Controls that it would file an
updated rule change when they become
available.6
The Exchange has recently completed
a technology upgrade to enable Floor
brokers to connect with the Exchange
via Pillar gateways, such that the 2023
Risk Controls are available to Floor
brokers when they are identified as the
‘‘Entering Firm.’’ Similarly, the new PreTrade Risk Controls proposed in this
filing would also be available to Floor
brokers when they are identified as the
‘‘Entering Firm.’’
In light of these changes, the
Exchange proposes to delete the current
text of paragraph (a) of Commentary .03
and replace it with updated text. First,
in light of the fact that the original Gross
6 See Securities Exchange Act Release No. 97101
(March 1, 2023), 88 FR 14213 (March 7, 2023) (SR–
NYSE–2023–14).
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Federal Register / Vol. 89, No. 48 / Monday, March 11, 2024 / Notices
Credit Risk Check that was part of the
2020 Risk Controls (current paragraph
(b)(1)) would now appear as ‘‘Gross
Credit Risk Limit—Open + Executed’’ in
paragraph (b)(1)(A), the updated text
would specify that: ‘‘Regarding a Floor
broker’s trading activity on the
Exchange on behalf of a customer that
is a member organization (‘‘Customer’’),
either the Floor broker or the Customer
may identify itself as the ‘‘Entering
Firm’’ for purposes of setting the PreTrade Risk Controls in paragraphs
(b)(1)(A) and (b)(2)(A) or Kill Switch
Actions.’’ Second, the updated text
would reflect that all of the other PreTrade Risk Controls in Rule 7.19,
including the ones proposed in this rule
filing, would be available to Floor
brokers when they are identified as the
‘‘Entering Firm.’’ Specifically, the
Commentary would state that ‘‘[f]or the
other Pre-Trade Risk Controls described
in this rule, the Floor broker must be
identified as the ‘‘Entering Firm.’’
As with the Exchange’s existing risk
controls, use of the pre-trade risk
controls proposed herein would be
optional. The Exchange proposes no
other changes to Rule 7.19 or its
Commentary.
Continuing Obligations of Member
Organizations Under Rule 15c3–5
ddrumheller on DSK120RN23PROD with NOTICES1
The proposed Pre-Trade Risk Controls
described here are meant to supplement,
and not replace, the member
organizations’ own internal systems,
monitoring, and procedures related to
risk management. The Exchange does
not guarantee that these controls will be
sufficiently comprehensive to meet all
of a member organization’s needs, the
controls are not designed to be the sole
means of risk management, and using
these controls will not necessarily meet
a member organization’s obligations
required by Exchange or federal rules
(including, without limitation, the Rule
15c3–5 under the Act 7 (‘‘Rule 15c3–
5’’)). Use of the Exchange’s Pre-Trade
Risk Controls will not automatically
constitute compliance with Exchange or
federal rules and responsibility for
compliance with all Exchange and SEC
rules remains with the member
organization.8
7 See
17 CFR 240.15c3–5.
also Commentary .01 to Rule 7.19, which
provides that ‘‘[t]he pre-trade risk controls
described in this Rule are meant to supplement, and
not replace, the member organization’s own internal
systems, monitoring and procedures related to risk
management and are not designed for compliance
with Rule 15c3–5 under the Exchange Act.
Responsibility for compliance with all Exchange
and SEC rules remains with the member
organization.’’
8 See
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Timing and Implementation
The Exchange anticipates
implementing the proposed change in
the first quarter of 2024 and, in any
event, will implement the proposed rule
change no later than the end of June
2024. The Exchange will announce the
timing of such changes by Trader
Update.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,9 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,10 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
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, and because it is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
Specifically, the Exchange believes
that the proposed rule change will
remove impediments to and perfect the
mechanism of a free and open market
and a national market system because
the proposed additional Pre-Trade Risk
Controls would provide Entering Firms
and Clearing Firms with enhanced
abilities to manage their risk with
respect to orders on the Exchange. The
proposed additional Pre-Trade Risk
Controls are not novel; they are based
on existing risk settings already in place
on MIAX Pearl and market participants
are already familiar with the types of
protections that the proposed risk
controls afford.11 As such, the Exchange
believes that the proposed additional
Pre-Trade Risk Controls would provide
a means to address potentially marketimpacting events, helping to ensure the
proper functioning of the market.
In addition, the Exchange believes
that the proposed rule change will
protect investors and the public interest
because the proposed additional PreTrade Risk Controls are a form of impact
mitigation that will aid Entering Firms
and Clearing Firms in minimizing their
risk exposure and reduce the potential
for disruptive, market-wide events. The
Exchange understands that member
organizations implement a number of
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 See supra note 6.
10 15
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different risk-based controls, including
those required by Rule 15c3–5. The
controls proposed here will serve as an
additional tool for Entering Firms and
Clearing Firms to assist them in
identifying any risk exposure. The
Exchange believes the proposed
additional Pre-Trade Risk Controls will
assist Entering Firms and Clearing Firms
in managing their financial exposure
which, in turn, could enhance the
integrity of trading on the securities
markets and help to assure the stability
of the financial system.
The Exchange believes that the
proposed revision of paragraph (a) of
Commentary .03 will remove
impediments to and perfect the
mechanism of a free and open market
and a national market system by adding
specificity to inform market participants
of how the Pre-Trade Risk Controls
apply to Floor brokers. The proposed
revision informs market participants
that, with respect to a Floor broker’s
trading activity on the Exchange on
behalf of a customer that is a member
organization, all of the Pre-Trade Risk
Controls are now available when the
Floor broker is identified as the
‘‘Entering Firm,’’ while the original
2020 Risk Controls remain available
when either the Floor broker or the
customer is identified as the ‘‘Entering
Firm.’’
Finally, the Exchange believes that
the proposed rule change does not
unfairly discriminate among the
Exchange’s member organizations
because use of the proposed additional
Pre-Trade Risk Controls is optional and
is not a prerequisite for participation on
the Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. In fact, the
Exchange believes that the proposal will
have a positive effect on competition
because, by providing Entering Firms
and Clearing Firms additional means to
monitor and control risk, the proposed
rule will increase confidence in the
proper functioning of the markets. The
Exchange believes the proposed
additional Pre-Trade Risk Controls will
assist Entering Firms and Clearing Firms
in managing their financial exposure
which, in turn, could enhance the
integrity of trading on the securities
markets and help to assure the stability
of the financial system. As a result, the
level of competition should increase as
public confidence in the markets is
solidified.
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Electronic Comments
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 12 and Rule
19b–4(f)(6) thereunder.13 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.
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 19b4(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.
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) 16 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
ddrumheller on DSK120RN23PROD with NOTICES1
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:
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
NYSE–2024–10 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to file
number SR–NYSE–2024–10. 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–NYSE–2024–10, and
should be submitted on or before April
1, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Sherry R. Haywood,
Assistant Secretary.
12 15
[FR Doc. 2024–05053 Filed 3–8–24; 8:45 am]
13 17
BILLING CODE 8011–01–P
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
16 15 U.S.C. 78s(b)(2)(B).
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CFR 200.30–3(a)(12).
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17533
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
35152; File No. 812–15464]
Antares Private Credit Fund, et al.
March 5, 2024.
Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’).
ACTION: Notice.
AGENCY:
Notice of application for an order
under section 17(d) and 57(i) of the
Investment Company Act of 1940 (the
‘‘Act’’) and rule 17d–1 under the Act to
permit certain joint transactions
otherwise prohibited by section 17(d)
and 57(a)(4) of the Act and rule 17d–1
under the Act.
SUMMARY OF APPLICATION: Applicants
request an order to permit certain
business development companies
(‘‘BDCs’’) and closed-end management
investment companies to co-invest in
portfolio companies with each other and
with certain affiliated investment
entities.
APPLICANTS: Antares Private Credit
Fund, Antares Strategic Credit Fund,
Antares Capital Advisers LLC, Antares
Capital Credit Advisers LLC, Antares
CLO 2017–1, Ltd., Antares CLO 2017–2,
Ltd., Antares CLO 2018–1, Ltd., Antares
CLO 2018–2, Ltd., Antares CLO 2018–3,
Ltd., Antares CLO 2019–1, Ltd., Antares
CLO 2019–2, Ltd., Antares CLO 2020–1,
Ltd., Antares CLO 2021–1, Ltd., Antares
CLO 2023–1, Ltd., Antares CLO 2023–2,
Ltd., Orion CLO 2023–1, Ltd., Orion
CLO 2023–2, Ltd., AUF Funding LLC,
Antares Canada SMA LP, Antares Credit
Fund I LP, Antares Credit Opportunities
IV LLC, Antares Credit Opportunities
MA I LLC, Antares Credit Opportunities
MA II LP, Antares Credit Opportunities
MA III LLC, Antares Credit
Opportunities MA V LP, Antares Senior
Loan Master Fund LP, Antares Senior
Loan Parallel Master Fund LP, Antares
Unitranche Master Fund I LP, Antares
Credit Opportunities VI LLC, Antares
Credit Opportunities CA LLC, Antares
Strategic Credit I Master LP, Antares K
Co-Investment Fund LP, Antares K CoInvestment Fund II LP, Antares Senior
Loan Master Fund II LP, Antares Senior
Loan Parallel Master Fund II LP, WM
Alternatives Antares Private Senior
Lending Fund LLC, Antares Senior Loan
EF Master II (Cayman) LP, Antares Vesta
Funding LP, Antares Assetco LP,
Antares Complete Financing Solution
LLC, Antares Holdings LP, Antares
Venus Funding LP, Antares Senior Loan
Parallel Fund SPV LLC, Antares Senior
Loan Parallel Fund II SPV LLC, Antares
Credit Opportunities Funding IV LLC,
E:\FR\FM\11MRN1.SGM
11MRN1
]]>Agencies
[Federal Register Volume 89, Number 48 (Monday, March 11, 2024)]
[Notices]
[Pages 17530-17533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05053]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99677; File No. SR-NYSE-2024-10]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rule 7.19
March 5, 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 February 21, 2024, New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this
[[Page 17531]]
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 amend Rule 7.19 to make additional pre-
trade risk controls available to Entering Firms and Clearing Firms. 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 Rule 7.19 to make additional pre-
trade risk controls available to Entering Firms and Clearing Firms.
Background and Proposal
In 2020, in order to assist Member organizations' efforts to manage
their risk, the Exchange amended its rules to add Rule 7.19 (Pre-Trade
Risk Controls),\3\ which established a set of optional pre-trade risk
controls by which Entering Firms and their designated Clearing Firms
\4\ could set credit limits and other pre-trade risk controls for an
Entering Firm's trading on the Exchange and authorize the Exchange to
take action if those credit limits or other pre-trade risk controls are
exceeded (the ``2020 Risk Controls''). These pre-trade risk controls
include a Gross Credit Risk Limit, which is defined in Rule 7.19(b)(1)
as ``a pre-established maximum daily dollar amount for purchases and
sales across all symbols, where both buy and sell orders are counted as
positive values.'' The current version of Rule 7.19(b)(1) specifies
that both open and executed orders are considered: ``[f]or purposes of
calculating the Gross Credit Risk Limit, unexecuted orders in the
Exchange Book, orders routed on arrival pursuant to Rule 7.37(a)(1),
and executed orders are included.''
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\3\ See Securities Exchange Act Release No. 88776 (April 29,
2020), 85 FR 26768 (May 5, 2020) (SR-NYSE-2020-17). Later, in 2023,
the Exchange amended its rules to make additional pre-trade risk
controls available to Entering Firms (the ``2023 Risk Controls'').
See Securities Exchange Act Release No. 97101 (March 1, 2023), 88 FR
14213 (March 7, 2023) (SR-NYSE-2023-14).
\4\ The terms ``Entering Firm'' and ``Clearing Firm'' are
defined in Rule 7.19.
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The Exchange has recently received several requests from market
participants to create two additional Gross Credit Risk Limit risk
controls: one that includes only open orders and another that includes
only executed orders. Market participants have explained that Entering
Firms and Clearing Firms would benefit from having more granular gross
credit risk controls available, which would allow them to set limits
and breach actions based solely on open orders or executed orders, in
addition to the Exchange's existing Gross Credit Risk Limit that
includes both open and executed orders.
The Exchange notes that the MIAX Pearl equities exchange (``MIAX
Pearl'') currently offers risk controls substantially similar to those
proposed here. Specifically, MIAX Pearl offers its ``Equity Members''
and their ``Clearing Members'' the option to use a ``Gross Notional
Trade Value'' risk check, which includes only executed orders, and a
``Gross Notional Open Value'' risk check, which includes only
unexecuted orders, in addition to a ``Gross Notional Open and Trade
Value'' risk check, for which both executed and unexecuted orders are
included.\5\ As such, market participants are already familiar with
these various gross credit risk checks, such that the ones proposed by
the Exchange in this filing are not novel.
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\5\ See MIAX Pearl Rule 2618(a)(2)(A), (C), and (E).
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In light of these requests, the Exchange proposes to amend Rule
7.19(b)(1) to rename the existing Gross Credit Risk Limit as ``Gross
Credit Risk Limit--Open + Executed,'' and to add two additional risk
limits: ``Gross Credit Risk Limit--Open Only'' and ``Gross Credit Risk
Limit--Executed Only.''
Specifically, the Exchange proposes to amend and reorganize Rule
7.19(b)(1) as follows. First, the Exchange would amend the language in
the first sentence of the rule to refer to plural Gross Credit Risk
Limits, instead of just one. At the end of the first sentence, the
Exchange would add that ``[a]vailable Gross Credit Risk Limits
include'' the three types described in new sub-sections (A), (B), and
(C).
Proposed sub-section (A) would define the ``Gross Credit Risk
Limit--Open + Executed'' risk check to include unexecuted orders in the
Exchange Book, orders routed on arrival pursuant to Rule 7.37(a)(1),
and executed orders (just as the current Gross Credit Risk Limit does).
Proposed sub-section (B) would define the ``Gross Credit Risk
Limit--Open Only'' risk check to include only unexecuted orders in the
Exchange Book and orders routed on arrival pursuant to Rule 7.37(a)(1).
Proposed sub-section (C) would define the ``Gross Credit Risk
Limit--Executed Only'' risk check to include executed orders only.
In addition, the Exchange proposes to make a conforming change to
section (c)(1)(B) of the rule, to make plural the current singular
reference to ``Gross Credit Risk Limit.''
Commentary .03
The Exchange also proposes to update paragraph (a) of Commentary
.03 regarding Floor brokers. The current version of paragraph (a) of
Commentary .03, implemented in 2023, explains that when a customer of a
Floor broker firm is a member organization, either that customer or the
Floor broker firm may be considered the ``Entering Firm'' for the
purposes of setting the 2020 Risk Controls (which appear in paragraphs
(b)(1) and (b)(2)(A) and the Kill Switch Actions sections of the
current rule) for the customer's trading activity on the Exchange.
Under the current rule, the 2023 Risk Controls (which appear in
paragraphs (b)(2)(B) through (b)(2)(F)) are not available to Floor
brokers, but the Exchange noted in its filing for the 2023 Risk
Controls that it would file an updated rule change when they become
available.\6\
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\6\ See Securities Exchange Act Release No. 97101 (March 1,
2023), 88 FR 14213 (March 7, 2023) (SR-NYSE-2023-14).
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The Exchange has recently completed a technology upgrade to enable
Floor brokers to connect with the Exchange via Pillar gateways, such
that the 2023 Risk Controls are available to Floor brokers when they
are identified as the ``Entering Firm.'' Similarly, the new Pre-Trade
Risk Controls proposed in this filing would also be available to Floor
brokers when they are identified as the ``Entering Firm.''
In light of these changes, the Exchange proposes to delete the
current text of paragraph (a) of Commentary .03 and replace it with
updated text. First, in light of the fact that the original Gross
[[Page 17532]]
Credit Risk Check that was part of the 2020 Risk Controls (current
paragraph (b)(1)) would now appear as ``Gross Credit Risk Limit--Open +
Executed'' in paragraph (b)(1)(A), the updated text would specify that:
``Regarding a Floor broker's trading activity on the Exchange on behalf
of a customer that is a member organization (``Customer''), either the
Floor broker or the Customer may identify itself as the ``Entering
Firm'' for purposes of setting the Pre-Trade Risk Controls in
paragraphs (b)(1)(A) and (b)(2)(A) or Kill Switch Actions.'' Second,
the updated text would reflect that all of the other Pre-Trade Risk
Controls in Rule 7.19, including the ones proposed in this rule filing,
would be available to Floor brokers when they are identified as the
``Entering Firm.'' Specifically, the Commentary would state that
``[f]or the other Pre-Trade Risk Controls described in this rule, the
Floor broker must be identified as the ``Entering Firm.''
As with the Exchange's existing risk controls, use of the pre-trade
risk controls proposed herein would be optional. The Exchange proposes
no other changes to Rule 7.19 or its Commentary.
Continuing Obligations of Member Organizations Under Rule 15c3-5
The proposed Pre-Trade Risk Controls described here are meant to
supplement, and not replace, the member organizations' own internal
systems, monitoring, and procedures related to risk management. The
Exchange does not guarantee that these controls will be sufficiently
comprehensive to meet all of a member organization's needs, the
controls are not designed to be the sole means of risk management, and
using these controls will not necessarily meet a member organization's
obligations required by Exchange or federal rules (including, without
limitation, the Rule 15c3-5 under the Act \7\ (``Rule 15c3-5'')). Use
of the Exchange's Pre-Trade Risk Controls will not automatically
constitute compliance with Exchange or federal rules and responsibility
for compliance with all Exchange and SEC rules remains with the member
organization.\8\
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\7\ See 17 CFR 240.15c3-5.
\8\ See also Commentary .01 to Rule 7.19, which provides that
``[t]he pre-trade risk controls described in this Rule are meant to
supplement, and not replace, the member organization's own internal
systems, monitoring and procedures related to risk management and
are not designed for compliance with Rule 15c3-5 under the Exchange
Act. Responsibility for compliance with all Exchange and SEC rules
remains with the member organization.''
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Timing and Implementation
The Exchange anticipates implementing the proposed change in the
first quarter of 2024 and, in any event, will implement the proposed
rule change no later than the end of June 2024. The Exchange will
announce the timing of such changes by Trader Update.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\10\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
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,
and because it is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
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Specifically, the Exchange believes that the proposed rule change
will remove impediments to and perfect the mechanism of a free and open
market and a national market system because the proposed additional
Pre-Trade Risk Controls would provide Entering Firms and Clearing Firms
with enhanced abilities to manage their risk with respect to orders on
the Exchange. The proposed additional Pre-Trade Risk Controls are not
novel; they are based on existing risk settings already in place on
MIAX Pearl and market participants are already familiar with the types
of protections that the proposed risk controls afford.\11\ As such, the
Exchange believes that the proposed additional Pre-Trade Risk Controls
would provide a means to address potentially market-impacting events,
helping to ensure the proper functioning of the market.
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\11\ See supra note 6.
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In addition, the Exchange believes that the proposed rule change
will protect investors and the public interest because the proposed
additional Pre-Trade Risk Controls are a form of impact mitigation that
will aid Entering Firms and Clearing Firms in minimizing their risk
exposure and reduce the potential for disruptive, market-wide events.
The Exchange understands that member organizations implement a number
of different risk-based controls, including those required by Rule
15c3-5. The controls proposed here will serve as an additional tool for
Entering Firms and Clearing Firms to assist them in identifying any
risk exposure. The Exchange believes the proposed additional Pre-Trade
Risk Controls will assist Entering Firms and Clearing Firms in managing
their financial exposure which, in turn, could enhance the integrity of
trading on the securities markets and help to assure the stability of
the financial system.
The Exchange believes that the proposed revision of paragraph (a)
of Commentary .03 will remove impediments to and perfect the mechanism
of a free and open market and a national market system by adding
specificity to inform market participants of how the Pre-Trade Risk
Controls apply to Floor brokers. The proposed revision informs market
participants that, with respect to a Floor broker's trading activity on
the Exchange on behalf of a customer that is a member organization, all
of the Pre-Trade Risk Controls are now available when the Floor broker
is identified as the ``Entering Firm,'' while the original 2020 Risk
Controls remain available when either the Floor broker or the customer
is identified as the ``Entering Firm.''
Finally, the Exchange believes that the proposed rule change does
not unfairly discriminate among the Exchange's member organizations
because use of the proposed additional Pre-Trade Risk Controls is
optional and is not a prerequisite for participation on the Exchange.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. In fact, the Exchange
believes that the proposal will have a positive effect on competition
because, by providing Entering Firms and Clearing Firms additional
means to monitor and control risk, the proposed rule will increase
confidence in the proper functioning of the markets. The Exchange
believes the proposed additional Pre-Trade Risk Controls will assist
Entering Firms and Clearing Firms in managing their financial exposure
which, in turn, could enhance the integrity of trading on the
securities markets and help to assure the stability of the financial
system. As a result, the level of competition should increase as public
confidence in the markets is solidified.
[[Page 17533]]
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 \12\ and Rule 19b-4(f)(6) thereunder.\13\
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.
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
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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 19b4(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.
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\16\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-NYSE-2024-10 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-NYSE-2024-10. 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-NYSE-2024-10, and should
be submitted on or before April 1, 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. 2024-05053 Filed 3-8-24; 8:45 am]
BILLING CODE 8011-01-P
