Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 3.7, 67979-67982 [2024-18795]
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Federal Register / Vol. 89, No. 163 / Thursday, August 22, 2024 / Notices
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on August 13,
2024, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail &
USPS Ground Advantage® Contract 214
to Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2024–501, CP2024–508.
SUPPLEMENTARY INFORMATION:
Sean C. Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2024–18799 Filed 8–21–24; 8:45 am]
BILLING CODE 7710–12–P
POSTAL SERVICE
Product Change—Priority Mail
Express, Priority Mail, and USPS
Ground Advantage® Negotiated
Service Agreement
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
Date of required notice: August
22, 2024.
DATES:
FOR FURTHER INFORMATION CONTACT:
Sean C. Robinson, 202–268–8405.
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on August 16,
2024, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail &
USPS Ground Advantage® Contract 223
to Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2024–511, CP2024–519.
SUPPLEMENTARY INFORMATION:
Sean C. Robinson,
Attorney, Corporate and Postal Business Law.
Postal ServiceTM.
Notice.
AGENCY:
[FR Doc. 2024–18808 Filed 8–21–24; 8:45 am]
ACTION:
BILLING CODE 7710–12–P
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: August
22, 2024.
FOR FURTHER INFORMATION CONTACT:
Sean C. Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on August 14,
2024, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail &
USPS Ground Advantage® Contract 217
to Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2024–505, CP2024–512.
SUMMARY:
Sean C. Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2024–18802 Filed 8–21–24; 8:45 am]
BILLING CODE 7710–12–P
ddrumheller on DSK120RN23PROD with NOTICES1
POSTAL SERVICE
Product Change—Priority Mail
Express, Priority Mail, and USPS
Ground Advantage® Negotiated
Service Agreement
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
SUMMARY:
VerDate Sep<11>2014
17:28 Aug 21, 2024
Jkt 262001
POSTAL SERVICE
Product Change—Priority Mail
Express, Priority Mail, and USPS
Ground Advantage® Negotiated
Service Agreement
AGENCY:
ACTION:
Postal ServiceTM.
67979
POSTAL SERVICE
Product Change—Priority Mail and
USPS Ground Advantage® Negotiated
Service Agreement
Postal ServiceTM.
ACTION: Notice.
AGENCY:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: August
22, 2024.
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on August 16,
2024, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail & USPS Ground
Advantage® Contract 302 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2024–516, CP2024–524.
SUMMARY:
Sean Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2024–18814 Filed 8–21–24; 8:45 am]
BILLING CODE 7710–12–P
Notice.
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
SUMMARY:
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100748; File No. SR–
NYSEARCA–2024–65]
DATES:
Date of required notice: August
22, 2024.
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 3.7
FOR FURTHER INFORMATION CONTACT:
August 16, 2024.
Sean C. Robinson, 202–268–8405.
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on August 16,
2024, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail &
USPS Ground Advantage® Contract 225
to Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2024–513, CP2024–521.
SUPPLEMENTARY INFORMATION:
Sean C. Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2024–18810 Filed 8–21–24; 8:45 am]
BILLING CODE 7710–12–P
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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 August
12, 2024, NYSE Arca, Inc. (‘‘NYSE
Arca’’ 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).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 89, No. 163 / Thursday, August 22, 2024 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 3.7 (Dues, Fees and Charges) to
permit direct debiting of undisputed or
final fees or other sums due the
Exchange by ETP Holders with one or
more Equities Trading Permits
(‘‘Trading Permit’’) and each applicant
for a Trading Permit. 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.
ddrumheller on DSK120RN23PROD with NOTICES1
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 3.7 (Dues, Fees and Charges) to
permit direct debiting of undisputed or
final fees or other sums due the
Exchange by ETP Holders with one or
more Trading Permits and each
applicant for a Trading Permit.
Rule 3.7 currently provides that ETP
Holders, OTP Holders and OTP Firms of
the Exchange, whether or not in good
standing, shall pay to the Exchange such
dues, fees and charges as the Board of
Directors shall prescribe.
The Exchange proposes to require that
ETP Holders that hold a Trading Permit,
and each applicant for a Trading Permit,
provide one or more clearing account
numbers that correspond to an
account(s) at the National Securities
Clearing Corporation (‘‘NSCC ’’) for
purposes of permitting the Exchange to
collect through direct debit any
undisputed or final fees and/or other
sums due to the Exchange. The
Exchange would, however, permit an
ETP Holder or applicant for a Trading
Permit to opt-out of the requirement to
provide NSCC clearing account numbers
and establish alternative payment
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arrangements. In addition, consistent
with current Rule 3.8 (Failure to Pay
Exchange Fees), the proposed change
would not apply to disciplinary fines or
monetary sanctions governed by Rule
10.8320. The proposed rule would also
not apply to regulatory fees related to
the Central Registration Depository
(‘‘CRD system’’), which are collected by
the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’).4 The
proposed change is based on the rules
of the Exchange’s affiliates NYSE
American LLC (‘‘NYSE American’’) and
NYSE Chicago, Inc. (‘‘NYSE Chicago’’)
as well as other exchanges.5
Under the proposal, the Exchange
would send a monthly invoice to each
ETP Holder, generally on the 5th
business day of each month as is
currently the practice, for the debit
amount due to the Exchange for the
prior month. The Exchange would also
send files to NSCC each month on or
about the 11th business day of the
month in order to initiate the debit of
the amount due to the Exchange as
provided for in the prior month’s
invoice.6 The Exchange anticipates that
4 The CRD system is the central licensing and
registration system for the U.S. securities industry.
The CRD system enables individuals and firms
seeking registration with multiple states and selfregulatory organizations to do so by submitting a
single form, fingerprint card and a combined
payment of fees to FINRA. Through the CRD
system, FINRA maintains the qualification,
employment and disciplinary histories of registered
associated persons of broker-dealers. Certain of the
regulatory fees provided in the NYSE Arca Equities
Schedule of Fees and Charges (‘‘Schedule of Fees
and Charges’’) are collected and retained by FINRA
via the CRD system for the registration of ETP
Holders and employees of ETP Holders that are not
FINRA members. These fees would be excluded
from direct debiting.
5 See NYSE American Rule 41 (Collection of and
Failure to Pay Exchange Fees); NYSE Chicago
Article 7, Rule 11 (Fixing and Paying Fees and
Charges). See also, e.g., MEMX LLC (‘‘MEMX’’) Rule
15.3(a) (Collection of Exchange Fees and Other
Claims and Billing Policy) requires each MEMX
member and all applicants for registration as
members are required to provide one or more
clearing account numbers that correspond to an
account(s) at the NSCC for purposes of permitting
the Exchange to debit certain fees, fines, charges
and/or other monetary sanctions or other monies
due to the Exchange. As noted, the proposed rule
would not apply to disciplinary fines or monetary
sanctions, and the proposal does not propose to
change this. The MEMX rule also requires members
to submit billing disputes within a certain time
period. The Exchange’s current billing disputes
policy is set forth in item I under ‘‘Billing Disputes’’
in the Schedule of Fees and Charges, available at
https://www.nyse.com/publicdocs/nyse/markets/
nyse-arca/NYSE_Arca_Marketplace_Fees.pdf, and
provides that all fee disputes must be submitted no
later than sixty days after receipt of a billing
invoice. The proposal does not modify or rescind
the Exchange’s billing disputes policy, and that
policy would continue to apply to all billing
disputes.
6 As discussed below, if an ETP Holder disputes
an invoice, the Exchange would not include the
disputed amount in the automatic debit if the ETP
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NSCC will process the debits on the day
it receives the file or the following
business day. Because ETP Holders
would be provided with an invoice
approximately 1 week before the debit
date, ETP Holders will have adequate
time to contact the Exchange with any
questions concerning the invoice. If an
ETP Holder disagrees with the invoice
in whole or in part, the Exchange would
not commence the debit for the disputed
amount until the dispute is resolved.
Specifically, the Exchange would not
include the disputed amount (or the
entire invoice if it is not feasible to
identify the disputed amounts) in the
NSCC debit amount where the ETP
Holder provides written notification of
the dispute to the Exchange by the later
of the 15th of the month, or the
following business day if the 15th is not
a business day, and the amount in
dispute is at least $10,000 or greater.
Following receipt of the file from the
Exchange, NSCC would proceed to debit
the amounts indicated from the account
of the ETP Holder that clears the
applicable transactions (‘‘Clearing ETP
Holder,’’ i.e., either an ETP Holder that
is self-clearing or another ETP Holder
that provides clearing services on behalf
of the ETP Holder) and disburse such
amounts to the Exchange. Where an ETP
Holder clears through another a ETP
Holder, the Exchange understands that
the estimated transaction fees owed to
the Exchange are typically debited by
the Clearing ETP Holder on a daily basis
using daily transaction detail reports
provided by the Exchange to the
Clearing ETP Holder in order to ensure
adequate funds have been escrowed.
The Exchange notes that it is proposing
to permit an ETP Holder to designate
one or more clearing account numbers
that correspond to an account(s) at
NSCC to permit ETP Holders that clear
through multiple different clearing
accounts to set up the billing process
with the Exchange in a manner that is
most efficient for internal reconciliation
and billing purposes of the ETP Holder.
The Exchange believes that the
proposed debiting process would
provide an efficient method of
collecting undisputed or final fees and/
or sums due to the Exchange consistent
with the practice on other exchanges.7
Holder has disputed the amount in writing to the
Exchange by the 15th of the month, or the following
business day if the 15th is not a business day, and
the disputed amount is at least $10,000 or greater.
As a practical matter, the Exchange would not send
a file to the NSCC until the proposed time in Rule
3.7 for an ETP Holder to dispute an invoice subject
to automatic debit has passed.
7 See note 5, supra. In addition to MEMX, IEX,
Nasdaq, Nasdaq BX, and Nasdaq Phlx all provide
for collection of fees and fines through direct debits.
See IEX Rule 15.120; Nasdaq Rule Equity 7, Section
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Federal Register / Vol. 89, No. 163 / Thursday, August 22, 2024 / Notices
Moreover, the Exchange believes that it
is reasonable to permit an ETP Holder
and applicants for a Trading Permit to
opt-out of the requirement to provide an
NSCC account number to permit direct
debiting and instead establish
alternative payment arrangements.
Finally, the Exchange believes that it is
also reasonable to provide for a $10,000
limitation on pre-debit billing disputes
since it would be inefficient to delay a
direct debit for a de minimis amount.
An ETP Holder would still be able to
dispute billing amounts that are less
than $10,000 pursuant to the billing
policy set forth in the Schedule of Fees
and Charges.8
To effectuate this change, the
Exchange would add the following text
to Rule 3.7 (italicized) as new
subsection (b):
Each ETP Holder that has one or more
Equities Trading Permits, and each
applicant for a Equities Trading Permit,
shall be required to provide one or more
clearing account numbers that
correspond to an account(s) at the
National Securities Clearing
Corporation (‘‘NSCC ’’) for purposes of
permitting the Exchange to collect
through direct debit any undisputed or
final fees and/or other sums due to the
Exchange; provided, however, that an
ETP Holder or applicant may request to
opt-out of the requirement to provide an
NSCC clearing account number and
establish alternative payment
arrangements. If an ETP Holder disputes
an invoice, the Exchange will not
include the disputed amount in the
debit if the ETP Holder has disputed the
amount in writing to the Exchange by
the 15th of the month, or the following
business day if the 15th is not a
business day, and the amount in dispute
is at least $10,000 or greater. The
Exchange will not debit fees related to
the CRD system set forth in the NYSE
Arca Equities Schedule of Fees and
Charges, which are collected and
retained by FINRA.
The current first sentence of Rule 3.7
would remain unchanged and become
new subsection (a).
ddrumheller on DSK120RN23PROD with NOTICES1
2. Statutory Basis
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),10 in particular, because
it is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
70; Nasdaq BX Rule Equity 7, Section 111; and
Nasdaq Phlx Rule Equity 7, Section 2.
8 See note 5, supra.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
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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. Specifically, the
Exchange believes that the proposed
direct debit process would provide ETP
Holders with an efficient process to pay
undisputed or final fees and/or sums
due to the Exchange.
The Exchange believes that the
proposal to debit NSCC accounts
directly is reasonable because it would
ease the administrative burden on ETP
Holders of paying monthly invoices and
avoiding overdue balances, and would
provide efficient collection from all ETP
Holders who owe monies to the
Exchange. Moreover, the Exchange
believes that the minimum time frame
provided to ETP Holders to dispute
invoices is reasonable and adequate to
enable ETP Holders to identify
potentially erroneous charges. In
addition, the Exchange believes that the
$10,000 limitation on pre-debit billing
disputes is reasonable because it would
be inefficient to delay a direct debit for
a de minimis amount. The same $10,000
limitation is in place on exchanges that
have adopted direct debit rules.11 ETP
Holders will still be able to dispute
billing amounts that are less than
$10,000 pursuant to the Exchange’s
Schedule of Fees and Charges. Finally,
the Exchange believes that it is
reasonable to permit ETP Holders or
applicants to request to opt-out of the
requirement to provide NSCC account
information and instead establish
alternative payment arrangements with
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. The
proposed rule change would apply
uniformly to all ETP Holders that have
one or more Trading Permits and to all
applicants for Trading Permits, and will
not disproportionately burden or
otherwise impact any single ETP
Holder.
The Exchange does not believe that
the proposal will create an intermarket
burden on competition since the
Exchange will only debit fees (other
than de minimis fees below $10,000)
that are undisputed by the ETP Holder
and ETP Holders will have a reasonable
11 See
PO 00000
opportunity to dispute the fees both
before and after the direct debit process.
In addition, ETP Holders will have a
reasonable opportunity to opt-out of the
requirement to provide clearing account
information and instead adopt
alternative payment arrangements.
The Exchange also does not believe
that the proposal will create an
intramarket burden on competition,
since the proposed direct debit process
will be applied equally to all ETP
Holders. Moreover, other exchanges
utilize a similar process which the
Exchange believes is generally familiar
to ETP Holders. Consequently, the
Exchange does not believe that the
proposal raises any new or novel issues
that have not been previously
considered by the Commission in
connection with direct debit and billing
policies of other exchanges. Further,
this proposal is expected to provide a
cost savings to the Exchange in that it
would alleviate administrative
processes related to the collection of
monies owed to the Exchange. In
addition, the debiting process would
mitigate against ETP Holder accounts
becoming overdue.
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
12 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
14 Id. In addition, Rule 19b–4(f)(6)(iii) requires the
Exchange to give the Commission written notice of
the Exchange’s intent to file the proposed rule
change along with a brief description and the text
13 17
notes 7 & 8, supra.
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Federal Register / Vol. 89, No. 163 / Thursday, August 22, 2024 / Notices
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),15 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest.
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.
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:
ddrumheller on DSK120RN23PROD with NOTICES1
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
NYSEARCA–2024–65 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to file
number SR–NYSEARCA–2024–65. 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
of the proposed rule change, at least five business
days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this prefiling requirement.
15 17 CFR 240.19b–4(f)(6)(iii).
16 15 U.S.C. 78s(b)(2)(B).
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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–NYSEARCA–2024–65 and should be
submitted on or before September 12,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024–18795 Filed 8–21–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100742; File No. SR–
CboeBYX–2023–020]
On February 27, 2024, pursuant to
Section 19(b)(2) of the Act,4 the
Commission designated a longer period
within which to approve the proposed
rule change, disapprove the proposed
rule change, or institute proceedings to
determine whether to disapprove the
proposed rule change.5 On March 6,
2024, the Exchange submitted
Amendment No. 1 to the proposed rule
change, which replaced and superseded
the proposed rule change as originally
filed.6 On April 16, 2024, the
Commission issued notice of
Amendment No. 1 and instituted
proceedings under Section 19(b)(2)(B) of
the Act 7 to determine whether to
approve or disapprove the proposed
rule change, as modified by Amendment
No. 1.8 On July 9, 2024, the Commission
extended the time period for approving
or disapproving the proposed rule
change to September 13, 2024.9 On July
29, 2024, the Exchange submitted
Amendment No. 2 to the proposed rule
change, which replaced and superseded
the proposed rule change as modified by
Amendment No. 1.10 On August 15,
2024, the Exchange withdrew the
proposed rule change (SR–CboeBYX–
2023–020).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024–18788 Filed 8–21–24; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Notice of
Withdrawal of a Proposed Rule Change
To Introduce an Enhanced RPI Order
and Expand Its Retail Price
Improvement Program To Include
Securities Priced Below $1.00
August 16, 2024.
On December 27, 2023, Cboe BYX
Exchange, Inc. (‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’),1 and
Rule 19b–4 thereunder,2 a proposed rule
change to modify Rule 11.24 to
introduce an Enhanced RPI Order and
expand its Retail Price Improvement
program to include securities priced
below $1.00. The proposed rule change
was published for comment in the
Federal Register on January 17, 2024.3
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 99311
(Jan. 10, 2024), 89 FR 2993 (‘‘Notice’’). The
1 15
PO 00000
Frm 00054
Fmt 4703
Sfmt 9990
Commission has not received any comments on the
proposed rule change.
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 99610,
89 FR 15621 (Mar. 4, 2024). The Commission
designated April 16, 2024 as the date by which the
Commission shall approve or disapprove, or
institute proceedings to determine whether to
disapprove, the proposed rule change.
6 The full text of Amendment No. 1 is available
on the Commission’s website at: https://
www.sec.gov/comments/sr-cboebyx-2023-020/
srcboebyx2023020-442119-1127142.pdf.
7 15 U.S.C. 78s(b)(2)(B).
8 See Securities Exchange Act Release No. 99965,
89 FR 29389 (Apr. 22, 2024).
9 See Securities Exchange Act Release No.
100467, 89 FR 57441 (Jul. 15, 2024).
10 The full text of Amendment No. 2 is available
on the Commission’s website at: https://
www.sec.gov/comments/sr-cboebyx-2023-020/
srcboebyx2023020-494523-1434306.pdf.
11 17 CFR 200.30–3(a)(12).
E:\FR\FM\22AUN1.SGM
22AUN1
]]>Agencies
[Federal Register Volume 89, Number 163 (Thursday, August 22, 2024)]
[Notices]
[Pages 67979-67982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-18795]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100748; File No. SR-NYSEARCA-2024-65]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 3.7
August 16, 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 August 12, 2024, NYSE Arca, Inc. (``NYSE Arca'' 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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[[Page 67980]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 3.7 (Dues, Fees and Charges) to
permit direct debiting of undisputed or final fees or other sums due
the Exchange by ETP Holders with one or more Equities Trading Permits
(``Trading Permit'') and each applicant for a Trading Permit. 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 3.7 (Dues, Fees and Charges) to
permit direct debiting of undisputed or final fees or other sums due
the Exchange by ETP Holders with one or more Trading Permits and each
applicant for a Trading Permit.
Rule 3.7 currently provides that ETP Holders, OTP Holders and OTP
Firms of the Exchange, whether or not in good standing, shall pay to
the Exchange such dues, fees and charges as the Board of Directors
shall prescribe.
The Exchange proposes to require that ETP Holders that hold a
Trading Permit, and each applicant for a Trading Permit, provide one or
more clearing account numbers that correspond to an account(s) at the
National Securities Clearing Corporation (``NSCC '') for purposes of
permitting the Exchange to collect through direct debit any undisputed
or final fees and/or other sums due to the Exchange. The Exchange
would, however, permit an ETP Holder or applicant for a Trading Permit
to opt-out of the requirement to provide NSCC clearing account numbers
and establish alternative payment arrangements. In addition, consistent
with current Rule 3.8 (Failure to Pay Exchange Fees), the proposed
change would not apply to disciplinary fines or monetary sanctions
governed by Rule 10.8320. The proposed rule would also not apply to
regulatory fees related to the Central Registration Depository (``CRD
system''), which are collected by the Financial Industry Regulatory
Authority, Inc. (``FINRA'').\4\ The proposed change is based on the
rules of the Exchange's affiliates NYSE American LLC (``NYSE
American'') and NYSE Chicago, Inc. (``NYSE Chicago'') as well as other
exchanges.\5\
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\4\ The CRD system is the central licensing and registration
system for the U.S. securities industry. The CRD system enables
individuals and firms seeking registration with multiple states and
self-regulatory organizations to do so by submitting a single form,
fingerprint card and a combined payment of fees to FINRA. Through
the CRD system, FINRA maintains the qualification, employment and
disciplinary histories of registered associated persons of broker-
dealers. Certain of the regulatory fees provided in the NYSE Arca
Equities Schedule of Fees and Charges (``Schedule of Fees and
Charges'') are collected and retained by FINRA via the CRD system
for the registration of ETP Holders and employees of ETP Holders
that are not FINRA members. These fees would be excluded from direct
debiting.
\5\ See NYSE American Rule 41 (Collection of and Failure to Pay
Exchange Fees); NYSE Chicago Article 7, Rule 11 (Fixing and Paying
Fees and Charges). See also, e.g., MEMX LLC (``MEMX'') Rule 15.3(a)
(Collection of Exchange Fees and Other Claims and Billing Policy)
requires each MEMX member and all applicants for registration as
members are required to provide one or more clearing account numbers
that correspond to an account(s) at the NSCC for purposes of
permitting the Exchange to debit certain fees, fines, charges and/or
other monetary sanctions or other monies due to the Exchange. As
noted, the proposed rule would not apply to disciplinary fines or
monetary sanctions, and the proposal does not propose to change
this. The MEMX rule also requires members to submit billing disputes
within a certain time period. The Exchange's current billing
disputes policy is set forth in item I under ``Billing Disputes'' in
the Schedule of Fees and Charges, available at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf,
and provides that all fee disputes must be submitted no later than
sixty days after receipt of a billing invoice. The proposal does not
modify or rescind the Exchange's billing disputes policy, and that
policy would continue to apply to all billing disputes.
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Under the proposal, the Exchange would send a monthly invoice to
each ETP Holder, generally on the 5th business day of each month as is
currently the practice, for the debit amount due to the Exchange for
the prior month. The Exchange would also send files to NSCC each month
on or about the 11th business day of the month in order to initiate the
debit of the amount due to the Exchange as provided for in the prior
month's invoice.\6\ The Exchange anticipates that NSCC will process the
debits on the day it receives the file or the following business day.
Because ETP Holders would be provided with an invoice approximately 1
week before the debit date, ETP Holders will have adequate time to
contact the Exchange with any questions concerning the invoice. If an
ETP Holder disagrees with the invoice in whole or in part, the Exchange
would not commence the debit for the disputed amount until the dispute
is resolved. Specifically, the Exchange would not include the disputed
amount (or the entire invoice if it is not feasible to identify the
disputed amounts) in the NSCC debit amount where the ETP Holder
provides written notification of the dispute to the Exchange by the
later of the 15th of the month, or the following business day if the
15th is not a business day, and the amount in dispute is at least
$10,000 or greater.
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\6\ As discussed below, if an ETP Holder disputes an invoice,
the Exchange would not include the disputed amount in the automatic
debit if the ETP Holder has disputed the amount in writing to the
Exchange by the 15th of the month, or the following business day if
the 15th is not a business day, and the disputed amount is at least
$10,000 or greater. As a practical matter, the Exchange would not
send a file to the NSCC until the proposed time in Rule 3.7 for an
ETP Holder to dispute an invoice subject to automatic debit has
passed.
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Following receipt of the file from the Exchange, NSCC would proceed
to debit the amounts indicated from the account of the ETP Holder that
clears the applicable transactions (``Clearing ETP Holder,'' i.e.,
either an ETP Holder that is self-clearing or another ETP Holder that
provides clearing services on behalf of the ETP Holder) and disburse
such amounts to the Exchange. Where an ETP Holder clears through
another a ETP Holder, the Exchange understands that the estimated
transaction fees owed to the Exchange are typically debited by the
Clearing ETP Holder on a daily basis using daily transaction detail
reports provided by the Exchange to the Clearing ETP Holder in order to
ensure adequate funds have been escrowed. The Exchange notes that it is
proposing to permit an ETP Holder to designate one or more clearing
account numbers that correspond to an account(s) at NSCC to permit ETP
Holders that clear through multiple different clearing accounts to set
up the billing process with the Exchange in a manner that is most
efficient for internal reconciliation and billing purposes of the ETP
Holder.
The Exchange believes that the proposed debiting process would
provide an efficient method of collecting undisputed or final fees and/
or sums due to the Exchange consistent with the practice on other
exchanges.\7\
[[Page 67981]]
Moreover, the Exchange believes that it is reasonable to permit an ETP
Holder and applicants for a Trading Permit to opt-out of the
requirement to provide an NSCC account number to permit direct debiting
and instead establish alternative payment arrangements. Finally, the
Exchange believes that it is also reasonable to provide for a $10,000
limitation on pre-debit billing disputes since it would be inefficient
to delay a direct debit for a de minimis amount. An ETP Holder would
still be able to dispute billing amounts that are less than $10,000
pursuant to the billing policy set forth in the Schedule of Fees and
Charges.\8\
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\7\ See note 5, supra. In addition to MEMX, IEX, Nasdaq, Nasdaq
BX, and Nasdaq Phlx all provide for collection of fees and fines
through direct debits. See IEX Rule 15.120; Nasdaq Rule Equity 7,
Section 70; Nasdaq BX Rule Equity 7, Section 111; and Nasdaq Phlx
Rule Equity 7, Section 2.
\8\ See note 5, supra.
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To effectuate this change, the Exchange would add the following
text to Rule 3.7 (italicized) as new subsection (b):
Each ETP Holder that has one or more Equities Trading Permits, and
each applicant for a Equities Trading Permit, shall be required to
provide one or more clearing account numbers that correspond to an
account(s) at the National Securities Clearing Corporation (``NSCC '')
for purposes of permitting the Exchange to collect through direct debit
any undisputed or final fees and/or other sums due to the Exchange;
provided, however, that an ETP Holder or applicant may request to opt-
out of the requirement to provide an NSCC clearing account number and
establish alternative payment arrangements. If an ETP Holder disputes
an invoice, the Exchange will not include the disputed amount in the
debit if the ETP Holder has disputed the amount in writing to the
Exchange by the 15th of the month, or the following business day if the
15th is not a business day, and the amount in dispute is at least
$10,000 or greater. The Exchange will not debit fees related to the CRD
system set forth in the NYSE Arca Equities Schedule of Fees and
Charges, which are collected and retained by FINRA.
The current first sentence of Rule 3.7 would remain unchanged and
become new subsection (a).
2. Statutory Basis
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),\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 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. Specifically, the Exchange believes that the
proposed direct debit process would provide ETP Holders with an
efficient process to pay undisputed or final fees and/or sums due to
the Exchange.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposal to debit NSCC accounts
directly is reasonable because it would ease the administrative burden
on ETP Holders of paying monthly invoices and avoiding overdue
balances, and would provide efficient collection from all ETP Holders
who owe monies to the Exchange. Moreover, the Exchange believes that
the minimum time frame provided to ETP Holders to dispute invoices is
reasonable and adequate to enable ETP Holders to identify potentially
erroneous charges. In addition, the Exchange believes that the $10,000
limitation on pre-debit billing disputes is reasonable because it would
be inefficient to delay a direct debit for a de minimis amount. The
same $10,000 limitation is in place on exchanges that have adopted
direct debit rules.\11\ ETP Holders will still be able to dispute
billing amounts that are less than $10,000 pursuant to the Exchange's
Schedule of Fees and Charges. Finally, the Exchange believes that it is
reasonable to permit ETP Holders or applicants to request to opt-out of
the requirement to provide NSCC account information and instead
establish alternative payment arrangements with the Exchange.
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\11\ See notes 7 & 8, 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. The proposed rule change
would apply uniformly to all ETP Holders that have one or more Trading
Permits and to all applicants for Trading Permits, and will not
disproportionately burden or otherwise impact any single ETP Holder.
The Exchange does not believe that the proposal will create an
intermarket burden on competition since the Exchange will only debit
fees (other than de minimis fees below $10,000) that are undisputed by
the ETP Holder and ETP Holders will have a reasonable opportunity to
dispute the fees both before and after the direct debit process. In
addition, ETP Holders will have a reasonable opportunity to opt-out of
the requirement to provide clearing account information and instead
adopt alternative payment arrangements.
The Exchange also does not believe that the proposal will create an
intramarket burden on competition, since the proposed direct debit
process will be applied equally to all ETP Holders. Moreover, other
exchanges utilize a similar process which the Exchange believes is
generally familiar to ETP Holders. Consequently, the Exchange does not
believe that the proposal raises any new or novel issues that have not
been previously considered by the Commission in connection with direct
debit and billing policies of other exchanges. Further, this proposal
is expected to provide a cost savings to the Exchange in that it would
alleviate administrative processes related to the collection of monies
owed to the Exchange. In addition, the debiting process would mitigate
against ETP Holder accounts becoming overdue.
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
[[Page 67982]]
become operative prior to 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\15\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\14\ Id. In addition, Rule 19b-4(f)(6)(iii) requires the
Exchange to give the Commission written notice of the Exchange's
intent to file the proposed rule change along with a brief
description and the text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this pre-filing requirement.
\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-NYSEARCA-2024-65 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-NYSEARCA-2024-65. 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-NYSEARCA-2024-65 and should
be submitted on or before September 12, 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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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-18795 Filed 8-21-24; 8:45 am]
BILLING CODE 8011-01-P
