Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.31, 77565-77567 [2024-21624]
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Federal Register / Vol. 89, No. 184 / Monday, September 23, 2024 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–028, OMB Control No.
3235–0032]
khammond on DSKJM1Z7X2PROD with NOTICES
Proposed Collection; Comment
Request; Extension: Rule 17f–1(b)
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 17f–1(b) (17 CFR
240.17f–1(b)), under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.). The Commission plans to submit
this existing collection of information to
the Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Under Rule 17f–1(b) under the
Exchange Act, approximately 9,500
entities in the securities industry are
registered in the Lost and Stolen
Securities Program (‘‘Program’’).
Registration fulfills a statutory
requirement that entities report and
inquire about missing, lost, counterfeit,
or stolen securities. Registration also
allows entities in the securities industry
to gain access to a confidential database
that stores information for the Program.
The Commission staff estimates that 4
new entities will register in the Program
each year. The staff estimates that the
average number of hours necessary to
comply with Rule 17f–1(b) is one-half
hour. Accordingly, the staff estimates
that total annual burden for all
participants is 2 hours (4 × one-half
hour). The Commission staff estimates
that compliance staff work at subject
entities results in an internal cost of
compliance, at an estimated hourly
wage of $344, of $172 per year per entity
(.5 hours × $344 per hour = $172 per
year). Therefore, the aggregate annual
internal cost of compliance is
approximately $688 ($172 × 4= $688).
Written comments are invited on: (a)
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
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respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted by
November 22, 2024.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: Austin Gerig, Director/Chief Data
Officer, Securities and Exchange
Commission, c/o Oluwaseun Ajayi, 100
F Street NE, Washington, DC 20549, or
send an email to: PRA_Mailbox@
sec.gov.
Dated: September 18, 2024.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–21656 Filed 9–20–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101050; File No. SR–NYSE–
2024–56]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
7.31
September 17, 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
September 9, 2024, New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 7.31 regarding the Minimum Trade
Size Modifier. 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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
PO 00000
Frm 00095
Fmt 4703
77565
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 the Minimum Trade
Size (‘‘MTS’’) Modifier.
Rule 7.31(i)(3) provides that a Limit
IOC Order, Non-Displayed Limit Order,
Non-Displayed Primary Pegged Order,
or MPL Order may be designated with
an MTS Modifier. Rule 7.31(i)(3)(A)
currently provides that an MTS must be
a minimum of a round lot and that an
order with an MTS Modifier will be
rejected if the MTS is less than a round
lot or if the MTS is larger than the size
of the order. The Exchange proposes to
amend Rule 7.31(i)(3)(A) to provide that
an MTS may be an odd lot quantity and
thus proposes to eliminate rule text
currently providing that an MTS must
be a minimum of a round lot and that
an order with an MTS of less than one
round lot would be rejected. The
Exchange believes that restricting the
use of the MTS Modifier to round lot
sizes only is unnecessary and that
providing member organizations with
the option to use the MTS Modifier with
an odd lot quantity 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 equity exchanges and
believes that this proposed change is
consistent with other equity exchanges’
approaches to the use of instructions
similar to the MTS Modifier.4
4 The rules of Cboe EDGA Exchange, Inc.
(‘‘EDGA’’), Cboe EDGX Exchange, Inc. (‘‘EDGX’’),
and Members Exchange (‘‘MEMX’’) appear to
permit the use of instructions comparable to the
MTS Modifier in any size. See EDGA Rules 11.2
(providing that orders are eligible for odd-lot,
round-lot, and mixed-lot executions unless
otherwise indicated) and 11.6(h) (defining
Minimum Execution Quantity instruction); EDGX
Rules 11.2 and 11.6(h) (same); MEMX Rules 11.2
Continued
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Federal Register / Vol. 89, No. 184 / Monday, September 23, 2024 / Notices
The Exchange also proposes to amend
Rule 7.31(i)(3) to include the nondisplayed ALO Order as an order type
that could be designated with an MTS
Modifier. This clarifying change is
intended only to reflect current
behavior, by providing a complete list of
the order types that may be designated
with an MTS Modifier. The Exchange
notes that the inclusion of the nondisplayed ALO Order 5 as an order type
that may be designated with an MTS
Modifier is consistent with the existing
use of the MTS Modifier with nondisplayed order types such as NonDisplayed Limit Orders and MPL Orders
(including MPL–ALO Orders).
Moreover, although the non-displayed
ALO Order is a Limit Order that is nondisplayed, the Exchange believes that
specifically including the non-displayed
ALO Order in the text of Rule 7.31(i)(3)
would reduce ambiguity as to the order
types that may be designated with an
MTS Modifier.
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 no later
than in the fourth quarter of 2024.
khammond on DSKJM1Z7X2PROD with NOTICES
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,6
in general, and furthers the objectives of
Section 6(b)(5),7 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.
The Exchange believes that the
proposed change would 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 member
organizations with the option to use the
MTS Modifier with odd lot quantities,
which could encourage order flow to the
and 11.6(f) (same). See also, e.g., IEX Rule
1190(b)(3) (providing that a non-displayed order
may be a Minimum Quantity Order and may be an
odd lot order).
5 An ALO Order is a Non-Routable Limit Order
that, unless it receives price improvement, will not
remove liquidity from the Exchange Book; an ALO
Order may be designated as non-displayed. See
Rule 7.31(e)(2).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
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Exchange and promote opportunities for
order execution on the Exchange, to the
benefit of all market participants. The
proposed change would also clarify that
the MTS Modifier may be used in
conjunction with non-displayed ALO
Orders, thereby removing impediments
to, and perfecting the mechanism of, a
free and open market and a national
market system by updating Exchange
rules to ensure that they reflect the
current availability of the MTS Modifier
and promoting consistency and
specificity in Exchange rules as to the
use of such modifier with non-displayed
order types. The Exchange notes that the
proposed change would not otherwise
impact the operation of the MTS
Modifier as provided under current
Exchange rules. The Exchange also
believes that the proposed change
would align Exchange rules with the use
of instructions similar to the MTS
Modifier on other equity exchanges,
thereby removing impediments to, and
perfecting the mechanism of, a free and
open market and a national market
system.8
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 change would allow the
optional MTS Modifier to be used with
an odd lot quantity and accurately
reflect the order types that may be
designated with an MTS Modifier. The
Exchange believes that the proposed
change would promote competition
among exchanges by offering member
organizations options available on other
equity exchanges and, to the extent the
proposed change would increase
opportunities for order execution,
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.
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
8 See
PO 00000
note 4, supra.
Frm 00096
Fmt 4703
Sfmt 4703
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)(iii) of the Act 11 and Rule
19b–4(f)(6)(iii) thereunder.12
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),14 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may take effect as soon as
the technology associated with the
proposed change is available, which is
anticipated to be less than 30 days from
the date of this filing. The Commission
believes that waiver of the operative
delay is consistent with the protection
of investors and the public interest
because the proposal raises no novel
issues and would allow use of the MTS
Modifier with odd lot quantities without
delay and promote clarity in Exchange
rules as to the order types that may be
designated with an MTS Modifier.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.15
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
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
11 15 U.S.C. 78s(b)(3)(A)(iii).
12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has fulfilled this requirement.
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 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).
10 17
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Federal Register / Vol. 89, No. 184 / Monday, September 23, 2024 / Notices
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:
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–
NYSE–2024–56 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–2024–56. 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
16 15
U.S.C. 78s(b)(2)(B).
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18:50 Sep 20, 2024
Jkt 262001
submissions should refer to file number
SR–NYSE–2024–56 and should be
submitted on or before October 15,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–21624 Filed 9–20–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101052; File No. SR–
FINRA–2024–015]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change to Amend Form U4 and
FINRA Rule 3110.19(d) (Obligation To
Provide List of RSLs to FINRA) for New
RSL Question
September 17, 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
September 13, 2024, the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) 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 FINRA. FINRA has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
change under paragraph (f)(6) of Rule
19b–4 under the Act,3 which renders
the proposal effective upon receipt of
this filing by the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to (1) amend
Section 1 (General Information) of the
Uniform Application for Securities
Industry Registration or Transfer (‘‘Form
U4’’) to add a new question eliciting
information to identify locations as
residential supervisory locations
(‘‘RSLs’’); (2) amend FINRA Rule
3110.19(d) (Obligation to Provide List of
RSLs to FINRA) to remove the reference
to a list of RSLs and the quarterly
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
PO 00000
Frm 00097
Fmt 4703
Sfmt 4703
77567
timeframe for member firms to provide
the list to FINRA and replace it with the
requirement that member firms provide
current information identifying all
locations designated as RSLs in the
frequency, manner and format as FINRA
may prescribe; and (3) make conforming
changes to Section 6 (Registration
Requests with Affiliated Firms) of the
Form U4 and amend the Form U4
Instructions to account for the new
question soliciting RSL information
(‘‘RSL Question’’).
The text of the proposed rule change
is available on FINRA’s website at
https://www.finra.org, at the principal
office of FINRA 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,
FINRA 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 these statements
may be examined at the places specified
in Item IV below. FINRA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Proposed Amendment to Section 1
(General Information) of Form U4 To
Add a New RSL Question
Effective June 1, 2024, FINRA Rule
3110.19 permits a member firm to
designate a private residence at which
an associated person engages in
specified supervisory activities, subject
to certain safeguards and limitations, as
an RSL, a non-registered location.4
Currently, Rule 3110.19(d) requires a
member firm that elects to designate any
of its offices or locations as an RSL to
provide FINRA with a current list of
those offices or locations by the 15th
day of the month following each
calendar quarter in the manner and
format (e.g., through an electronic
process or such other process) as FINRA
may prescribe.5 As part of FINRA’s
4 See Securities Exchange Act Release No. 98980
(November 17, 2023), 88 FR 82447 (November 24,
2023) (Notice of Filing of Amendment No. 2 and
Order Granting Accelerated Approval of File No.
SR–FINRA–2023–006); see also Regulatory Notice
24–02 (January 2024).
5 See supra note 4.
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]]>Agencies
[Federal Register Volume 89, Number 184 (Monday, September 23, 2024)]
[Notices]
[Pages 77565-77567]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21624]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101050; File No. SR-NYSE-2024-56]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rule 7.31
September 17, 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 September 9, 2024, New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the 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 amend Rule 7.31 regarding the Minimum
Trade Size Modifier. 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 the Minimum
Trade Size (``MTS'') Modifier.
Rule 7.31(i)(3) provides that a Limit IOC Order, Non-Displayed
Limit Order, Non-Displayed Primary Pegged Order, or MPL Order may be
designated with an MTS Modifier. Rule 7.31(i)(3)(A) currently provides
that an MTS must be a minimum of a round lot and that an order with an
MTS Modifier will be rejected if the MTS is less than a round lot or if
the MTS is larger than the size of the order. The Exchange proposes to
amend Rule 7.31(i)(3)(A) to provide that an MTS may be an odd lot
quantity and thus proposes to eliminate rule text currently providing
that an MTS must be a minimum of a round lot and that an order with an
MTS of less than one round lot would be rejected. The Exchange believes
that restricting the use of the MTS Modifier to round lot sizes only is
unnecessary and that providing member organizations with the option to
use the MTS Modifier with an odd lot quantity 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 equity exchanges and believes that this proposed
change is consistent with other equity exchanges' approaches to the use
of instructions similar to the MTS Modifier.\4\
---------------------------------------------------------------------------
\4\ The rules of Cboe EDGA Exchange, Inc. (``EDGA''), Cboe EDGX
Exchange, Inc. (``EDGX''), and Members Exchange (``MEMX'') appear to
permit the use of instructions comparable to the MTS Modifier in any
size. See EDGA Rules 11.2 (providing that orders are eligible for
odd-lot, round-lot, and mixed-lot executions unless otherwise
indicated) and 11.6(h) (defining Minimum Execution Quantity
instruction); EDGX Rules 11.2 and 11.6(h) (same); MEMX Rules 11.2
and 11.6(f) (same). See also, e.g., IEX Rule 1190(b)(3) (providing
that a non-displayed order may be a Minimum Quantity Order and may
be an odd lot order).
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[[Page 77566]]
The Exchange also proposes to amend Rule 7.31(i)(3) to include the
non-displayed ALO Order as an order type that could be designated with
an MTS Modifier. This clarifying change is intended only to reflect
current behavior, by providing a complete list of the order types that
may be designated with an MTS Modifier. The Exchange notes that the
inclusion of the non-displayed ALO Order \5\ as an order type that may
be designated with an MTS Modifier is consistent with the existing use
of the MTS Modifier with non-displayed order types such as Non-
Displayed Limit Orders and MPL Orders (including MPL-ALO Orders).
Moreover, although the non-displayed ALO Order is a Limit Order that is
non-displayed, the Exchange believes that specifically including the
non-displayed ALO Order in the text of Rule 7.31(i)(3) would reduce
ambiguity as to the order types that may be designated with an MTS
Modifier.
---------------------------------------------------------------------------
\5\ An ALO Order is a Non-Routable Limit Order that, unless it
receives price improvement, will not remove liquidity from the
Exchange Book; an ALO Order may be designated as non-displayed. See
Rule 7.31(e)(2).
---------------------------------------------------------------------------
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 no later than in the fourth quarter of 2024.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\6\ in general, and furthers the objectives of Section 6(b)(5),\7\
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.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed change would 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 member organizations with the option
to use the MTS Modifier with odd lot quantities, 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 proposed change would also clarify that the MTS Modifier may be
used in conjunction with non-displayed ALO Orders, thereby removing
impediments to, and perfecting the mechanism of, a free and open market
and a national market system by updating Exchange rules to ensure that
they reflect the current availability of the MTS Modifier and promoting
consistency and specificity in Exchange rules as to the use of such
modifier with non-displayed order types. The Exchange notes that the
proposed change would not otherwise impact the operation of the MTS
Modifier as provided under current Exchange rules. The Exchange also
believes that the proposed change would align Exchange rules with the
use of instructions similar to the MTS Modifier on other equity
exchanges, thereby removing impediments to, and perfecting the
mechanism of, a free and open market and a national market system.\8\
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\8\ 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. The proposed change would
allow the optional MTS Modifier to be used with an odd lot quantity and
accurately reflect the order types that may be designated with an MTS
Modifier. The Exchange believes that the proposed change would promote
competition among exchanges by offering member organizations options
available on other equity exchanges and, to the extent the proposed
change would increase opportunities for order execution, 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.
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)(iii) of the Act \11\ and Rule
19b-4(f)(6)(iii) thereunder.\12\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has fulfilled this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\14\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may take effect as soon as the technology associated with the proposed
change is available, which is anticipated to be less than 30 days from
the date of this filing. The Commission believes that waiver of the
operative delay is consistent with the protection of investors and the
public interest because the proposal raises no novel issues and would
allow use of the MTS Modifier with odd lot quantities without delay and
promote clarity in Exchange rules as to the order types that may be
designated with an MTS Modifier. Accordingly, the Commission hereby
waives the 30-day operative delay and designates the proposal operative
upon filing.\15\
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ 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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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
[[Page 77567]]
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-2024-56 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-2024-56. 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-NYSE-2024-56 and should be
submitted on or before October 15, 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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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-21624 Filed 9-20-24; 8:45 am]
BILLING CODE 8011-01-P
