Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Rule 7.31, 17888-17890 [2024-05154]
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Federal Register / Vol. 89, No. 49 / Tuesday, March 12, 2024 / Notices
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is March 10, 2024.
The Commission is extending this 45day time period.
The Commission finds it appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the proposed rule change.
Accordingly, the Commission, pursuant
to Section 19(b)(2) of the Act,5
designates April 24, 2024 as the date by
which the Commission shall either
approve or disapprove, or institute
proceedings to determine whether to
disapprove, the proposed rule change
(File No. SR–PEARL–2024–03).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–05151 Filed 3–11–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99683; File No. SR–
NYSEARCA–2024–06]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a
Longer Period for Commission Action
on a Proposed Rule Change To Amend
Rule 5.3–O To Permit the Listing and
Trading of Options on CommodityBased Trust Shares
March 6, 2024.
khammond on DSKJM1Z7X2PROD with NOTICES
On January 16, 2024, NYSE Arca, Inc.
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 to list and trade options on
Commodity-Based Trust Shares. The
proposed rule change was published for
comment in the Federal Register on
January 25, 2024.3 The Commission has
received one comment on the proposed
rule change.4
Section 19(b)(2) of the Act 5 provides
that within 45 days of the publication of
5 Id.
6 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 99398
(January 19, 2024), 89 FR 5029.
4 Comments are available at: https://www.sec.gov/
comments/sr-nysearca-2024-06/srnysearca202406.
htm.
5 15 U.S.C. 78s(b)(2).
1 15
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notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding, or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is March 10, 2024.
The Commission is extending this 45day time period.
The Commission finds it appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the proposed rule change.
Accordingly, the Commission, pursuant
to Section 19(b)(2) of the Act,6
designates April 24, 2024 as the date by
which the Commission shall either
approve or disapprove, or institute
proceedings to determine whether to
disapprove, the proposed rule change
(File No. SR–NYSEARCA–2024–06).
comments on the proposed rule change
from interested persons.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Sherry R. Haywood,
Assistant Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2024–05152 Filed 3–11–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99685; File No. SR–
NYSENAT–2024–05]
Self-Regulatory Organizations; NYSE
National, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify Rule 7.31
March 6, 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 February
26, 2024, NYSE National, Inc. (‘‘NYSE
National’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
6 Id.
7 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00080
Fmt 4703
Sfmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify
Rule 7.31 regarding Primary Pegged
Orders. 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
The Exchange proposes to amend
Rule 7.31 regarding Primary Pegged
Orders.
Rule 7.31(h) defines a Pegged Order as
a Limit Order that does not route with
a working price that is pegged to a
dynamic reference price. If the
designated reference price is higher
(lower) than the limit price of a Pegged
Order to buy (sell), the working price
will be the limit price of the order.
Rule 7.31(h)(2) defines a Primary
Pegged Order as a Pegged Order to buy
(sell) with a working price that is
pegged to the PBB (PBO), with no offset
allowed. A Primary Pegged Order to buy
(sell) will be rejected on arrival, or
cancelled when resting, if there is no
PBB (PBO) against which to peg.
Rule 7.31(h)(2)(A) currently provides
that a Primary Pegged Order must
include a minimum of one round lot
displayed. Rule 7.31(h)(2)(A) further
provides that the working price of a
Primary Pegged Order equals the
display price, the display quantity is
ranked Priority 2—Display Orders, and
the reserve interest is ranked Priority
3—Non-Display Orders.
Rule 7.31(h)(2)(B) provides that a
Primary Pegged Order will be rejected if
the PBBO is locked or crossed. If the
E:\FR\FM\12MRN1.SGM
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Federal Register / Vol. 89, No. 49 / Tuesday, March 12, 2024 / Notices
PBBO is locked or crossed when the
display quantity of a Primary Pegged
Reserve Order is replenished, the entire
order will be cancelled. If after arrival,
the PBBO becomes locked or crossed,
the Primary Pegged Order will wait for
a PBBO that is not locked or crossed
before the display and working price are
adjusted and remains eligible to trade at
its current working price.
The Exchange proposes to modify
Rule 7.31(h)(2)(A) to permit Primary
Pegged Orders to be entered in any size
and thus proposes to eliminate rule text
currently providing that a Primary
Pegged Order must include a minimum
of one round lot displayed. The
Exchange believes that requiring
Primary Pegged Orders to be entered in
round lots is unnecessary and that
providing ETP Holders with the option
to enter Primary Pegged Orders in odd
lots could increase liquidity and
enhance opportunities for order
execution on the Exchange. The
Exchange notes that permitting odd-lot
order quantities is not novel on the
Exchange or other cash equity
exchanges and believes that this
proposed change would align the
Exchange’s handling of Primary Pegged
Orders with the treatment of equivalent
order types on other cash equity
exchanges.4
Because of the technology changes
associated with this proposed rule
change, the Exchange will announce the
implementation date by Trader Update,
which, subject to effectiveness of this
proposed rule change, will be in the first
quarter of 2024.
khammond on DSKJM1Z7X2PROD with NOTICES
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,5
in general, and furthers the objectives of
Section 6(b)(5),6 in particular, because it
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities, to
remove impediments to, and perfect the
mechanism of, a free and open market
4 See, e.g., Members Exchange Rules 11.8(c)(2)
(providing that a Primary Peg Order may be entered
as an odd lot, round lot, or mixed lot). The
Exchange also notes that the rules of the Nasdaq
Stock Market LLC (‘‘Nasdaq’’), Cboe BZX Exchange,
Inc. (‘‘BZX’’), and Cboe BYX Exchange, Inc.
(‘‘BYX’’) appear to permit orders, including orders
analogous to Primary Pegged Orders, to be entered
in any size. See Nasdaq Rule 4703(b) (providing
that an order may be entered in any whole share
size, except as otherwise provided); BZX Rule 11.2
(providing that orders are eligible for odd-lot,
round-lot, and mixed-lot executions unless
otherwise indicated); BYX Rule 11.2 (same).
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
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19:36 Mar 11, 2024
Jkt 262001
and a national market system and, in
general, to protect investors and the
public interest.
The Exchange believes that the
proposed change would promote just
and equitable principles of trade,
remove impediments to, and perfect the
mechanism of, a free and open market
and a national market system, and
protect investors and the public interest
because it would provide ETP Holders
with the option to enter Primary Pegged
Orders in odd-lot sized orders, which
could encourage order flow to the
Exchange and promote opportunities for
order execution on the Exchange, to the
benefit of all market participants. The
Exchange notes that the proposed
change would not otherwise impact the
operation of Primary Pegged Orders as
provided under current Exchange rules.
The Exchange also believes that the
proposed change would align Exchange
rules with the treatment of orders
analogous to Primary Pegged Orders on
other cash equity exchanges, thereby
removing impediments to, and
perfecting the mechanism of, a free and
open market and a national market
system.7
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. As noted
above, the Exchange believes the
proposed rule change would allow the
Exchange to accept Primary Pegged
Orders of any size and align the
Exchange’s handling of such orders with
other cash equity exchanges’ handling
of similar order types,8 thereby
promoting competition among
exchanges by offering ETP Holders
options available on other cash equity
exchanges. The Exchange also believes
that, to the extent the proposed change
would increase opportunities for order
execution, the proposed change would
promote competition by making the
Exchange a more attractive venue for
order flow and enhancing market
quality for all market participants.
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.
7 See
note 4, supra.
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 9 and Rule
19b–4(f)(6) thereunder.10 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.11
A proposed rule change filed under
Rule 19b–4(f)(6) 12 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),13 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 to
allow it to accept Primary Pegged
Orders of any size as soon as the
technology associated with the
proposed change is available. The
Exchange states that the proposal raises
no novel issues and that waiver of the
operative delay would allow the
Exchange to more expeditiously offer
increased flexibility to member
organizations and promote additional
trading opportunities for all market
participants. The Commission finds
that, because the proposal does not
change the operation of Primary Pegged
Orders, other than to expand their use
to odd-lot orders, waiver of the
operative delay is consistent with the
protection of investors and the public
interest. Accordingly, the Commission
hereby waives the 30-day operative
delay and designates the proposal
operative upon filing.14
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6) requires a self-regulatory organization to
give the Commission written notice of its intent to
file 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.
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
14 For purposes only of accelerating the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
10 17
8 Id.
PO 00000
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17889
Continued
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E:\FR\FM\12MRN1.SGM
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17890
Federal Register / Vol. 89, No. 49 / Tuesday, March 12, 2024 / Notices
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) 15 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
khammond on DSKJM1Z7X2PROD with NOTICES
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–
NYSENAT–2024–05 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–NYSENAT–2024–05. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
15 15 U.S.C. 78s(b)(2)(B).
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19:36 Mar 11, 2024
Jkt 262001
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–NYSENAT–2024–05 and should be
submitted on or before April 2, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–05154 Filed 3–11–24; 8:45 am]
BILLING CODE 8011–01–P
SURFACE TRANSPORTATION BOARD
[Docket No. EP 670 (Sub-No. 1)]
Notice of Rail Energy Transportation
Advisory Committee Meeting
Surface Transportation Board.
Notice of Rail Energy
Transportation Advisory Committee
meeting.
AGENCY:
ACTION:
Notice is hereby given of a
meeting of the Rail Energy
Transportation Advisory Committee
(RETAC), pursuant to the Federal
Advisory Committee Act.
DATES: The meeting will be held on
Wednesday, April 17, 2024, at 9:00 a.m.
E.T.
ADDRESSES: The meeting will be held at
the Surface Transportation Board
headquarters at 395 E Street SW,
Washington, DC 20423.
FOR FURTHER INFORMATION CONTACT:
Kristen Nunnally at (202) 245–0312 or
Kristen.Nunnally@stb.gov. If you require
an accommodation under the Americans
with Disabilities Act for this meeting,
please call (202) 245–0245 by April 3,
2024.
SUPPLEMENTARY INFORMATION: RETAC
was formed in 2007 to provide advice
and guidance to the Surface
Transportation Board (Board or STB),
and to serve as a forum for discussion
of emerging issues related to the
transportation of energy resources by
rail. Establishment of a Rail Energy
Transp. Advisory Comm., EP 670 (STB
served July 17, 2007). The purpose of
this meeting is to facilitate discussions
regarding issues including rail service,
infrastructure planning and
SUMMARY:
16 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00082
Fmt 4703
Sfmt 4703
development, and effective coordination
among suppliers, rail carriers, and users
of energy resources. Potential agenda
items for this meeting include a rail
performance measures review, industry
segment updates by RETAC members,
and a roundtable discussion.
The meeting, which is open to the
public, will be conducted in accordance
with the Federal Advisory Committee
Act, 5 U.S.C. app. 2; Federal Advisory
Committee Management regulations, 41
CFR part 102–3; RETAC’s charter; and
Board procedures. Further
communications about this meeting may
be announced through the Board’s
website at www.stb.gov.
Written Comments: Members of the
public may submit written comments to
RETAC at any time. Comments should
be addressed to RETAC, c/o Kristen
Nunnally, Surface Transportation
Board, 395 E Street SW, Washington, DC
20423–0001 or Kristen.Nunnally@
stb.gov. Please submit any comments for
review at the April 17, 2024, meeting by
April 15, 2024, if possible.
Authority: 49 U.S.C. 1321, 11101, and
11121.
Decided: March 6, 2024.
By the Board, Mai T. Dinh, Director, Office
of Proceedings.
Brendetta Jones,
Clearance Clerk.
[FR Doc. 2024–05167 Filed 3–11–24; 8:45 am]
BILLING CODE 4915–01–P
SUSQUEHANNA RIVER BASIN
COMMISSION
Projects Approved for Consumptive
Uses of Water
Susquehanna River Basin
Commission.
ACTION: Notice.
AGENCY:
This notice lists Approvals by
Rule for projects by the Susquehanna
River Basin Commission during the
period set forth in DATES.
DATES: February 1–29, 2024.
ADDRESSES: Susquehanna River Basin
Commission, 4423 North Front Street,
Harrisburg, PA 17110–1788.
FOR FURTHER INFORMATION CONTACT:
Jason E. Oyler, General Counsel and
Secretary to the Commission, telephone:
(717) 238–0423, ext. 1312; fax: (717)
238–2436; email: joyler@srbc.gov.
Regular mail inquiries may be sent to
the above address.
SUPPLEMENTARY INFORMATION: This
notice lists the projects, described
below, receiving approval for the
consumptive use of water pursuant to
the Commission’s approval by rule
SUMMARY:
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]]>Agencies
[Federal Register Volume 89, Number 49 (Tuesday, March 12, 2024)]
[Notices]
[Pages 17888-17890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05154]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99685; File No. SR-NYSENAT-2024-05]
Self-Regulatory Organizations; NYSE National, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Modify
Rule 7.31
March 6, 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 February 26, 2024, NYSE National, Inc. (``NYSE National'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 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 modify Rule 7.31 regarding Primary Pegged
Orders. 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 7.31 regarding Primary Pegged
Orders.
Rule 7.31(h) defines a Pegged Order as a Limit Order that does not
route with a working price that is pegged to a dynamic reference price.
If the designated reference price is higher (lower) than the limit
price of a Pegged Order to buy (sell), the working price will be the
limit price of the order.
Rule 7.31(h)(2) defines a Primary Pegged Order as a Pegged Order to
buy (sell) with a working price that is pegged to the PBB (PBO), with
no offset allowed. A Primary Pegged Order to buy (sell) will be
rejected on arrival, or cancelled when resting, if there is no PBB
(PBO) against which to peg.
Rule 7.31(h)(2)(A) currently provides that a Primary Pegged Order
must include a minimum of one round lot displayed. Rule 7.31(h)(2)(A)
further provides that the working price of a Primary Pegged Order
equals the display price, the display quantity is ranked Priority 2--
Display Orders, and the reserve interest is ranked Priority 3--Non-
Display Orders.
Rule 7.31(h)(2)(B) provides that a Primary Pegged Order will be
rejected if the PBBO is locked or crossed. If the
[[Page 17889]]
PBBO is locked or crossed when the display quantity of a Primary Pegged
Reserve Order is replenished, the entire order will be cancelled. If
after arrival, the PBBO becomes locked or crossed, the Primary Pegged
Order will wait for a PBBO that is not locked or crossed before the
display and working price are adjusted and remains eligible to trade at
its current working price.
The Exchange proposes to modify Rule 7.31(h)(2)(A) to permit
Primary Pegged Orders to be entered in any size and thus proposes to
eliminate rule text currently providing that a Primary Pegged Order
must include a minimum of one round lot displayed. The Exchange
believes that requiring Primary Pegged Orders to be entered in round
lots is unnecessary and that providing ETP Holders with the option to
enter Primary Pegged Orders in odd lots could increase liquidity and
enhance opportunities for order execution on the Exchange. The Exchange
notes that permitting odd-lot order quantities is not novel on the
Exchange or other cash equity exchanges and believes that this proposed
change would align the Exchange's handling of Primary Pegged Orders
with the treatment of equivalent order types on other cash equity
exchanges.\4\
---------------------------------------------------------------------------
\4\ See, e.g., Members Exchange Rules 11.8(c)(2) (providing that
a Primary Peg Order may be entered as an odd lot, round lot, or
mixed lot). The Exchange also notes that the rules of the Nasdaq
Stock Market LLC (``Nasdaq''), Cboe BZX Exchange, Inc. (``BZX''),
and Cboe BYX Exchange, Inc. (``BYX'') appear to permit orders,
including orders analogous to Primary Pegged Orders, to be entered
in any size. See Nasdaq Rule 4703(b) (providing that an order may be
entered in any whole share size, except as otherwise provided); BZX
Rule 11.2 (providing that orders are eligible for odd-lot, round-
lot, and mixed-lot executions unless otherwise indicated); BYX Rule
11.2 (same).
---------------------------------------------------------------------------
Because of the technology changes associated with this proposed
rule change, the Exchange will announce the implementation date by
Trader Update, which, subject to effectiveness of this proposed rule
change, will be in the first quarter of 2024.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\5\ in general, and furthers the objectives of Section 6(b)(5),\6\
in particular, because it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to, and perfect the mechanism of, a free and open market
and a national market system and, in general, to protect investors and
the public interest.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed change would promote just
and equitable principles of trade, remove impediments to, and perfect
the mechanism of, a free and open market and a national market system,
and protect investors and the public interest because it would provide
ETP Holders with the option to enter Primary Pegged Orders in odd-lot
sized orders, which could encourage order flow to the Exchange and
promote opportunities for order execution on the Exchange, to the
benefit of all market participants. The Exchange notes that the
proposed change would not otherwise impact the operation of Primary
Pegged Orders as provided under current Exchange rules. The Exchange
also believes that the proposed change would align Exchange rules with
the treatment of orders analogous to Primary Pegged Orders on other
cash equity exchanges, thereby removing impediments to, and perfecting
the mechanism of, a free and open market and a national market
system.\7\
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\7\ See note 4, supra.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. As noted above, the Exchange
believes the proposed rule change would allow the Exchange to accept
Primary Pegged Orders of any size and align the Exchange's handling of
such orders with other cash equity exchanges' handling of similar order
types,\8\ thereby promoting competition among exchanges by offering ETP
Holders options available on other cash equity exchanges. The Exchange
also believes that, to the extent the proposed change would increase
opportunities for order execution, the proposed change would promote
competition by making the Exchange a more attractive venue for order
flow and enhancing market quality for all market participants.
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\8\ Id.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
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.\11\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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) \12\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\13\ 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 to allow it to
accept Primary Pegged Orders of any size as soon as the technology
associated with the proposed change is available. The Exchange states
that the proposal raises no novel issues and that waiver of the
operative delay would allow the Exchange to more expeditiously offer
increased flexibility to member organizations and promote additional
trading opportunities for all market participants. The Commission finds
that, because the proposal does not change the operation of Primary
Pegged Orders, other than to expand their use to odd-lot orders, waiver
of the operative delay is consistent with the protection of investors
and the public interest. Accordingly, the Commission hereby waives the
30-day operative delay and designates the proposal operative upon
filing.\14\
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\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ For purposes only of accelerating the operative date of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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[[Page 17890]]
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) \15\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\15\ 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-NYSENAT-2024-05 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-NYSENAT-2024-05. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-NYSENAT-2024-05 and should
be submitted on or before April 2, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-05154 Filed 3-11-24; 8:45 am]
BILLING CODE 8011-01-P
