Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.31, 78406-78408 [2024-21874]
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78406
Federal Register / Vol. 89, No. 186 / Wednesday, September 25, 2024 / Notices
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–Phlx–2024–48 and should be
submitted on or before October 16,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.50
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–21871 Filed 9–24–24; 8:45 am]
BILLING CODE 8011–01–P
Applicants
request an order to permit certain
registered closed-end investment
companies to issue multiple classes of
shares and to impose asset-based
distribution and/or service fees and
early withdrawal charges.
SUMMARY OF APPLICATION:
Gemcorp Capital Advisors
LLC and Gemcorp Commodities
Alternative Products Fund.
The application was filed
on June 28, 2024, and amended on July
11, 2024, and August 23, 2024.
FILING DATES:
An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing on any application by
emailing the SEC’s Secretary at
Secretarys-Office@sec.gov and serving
the Applicants with a copy of the
request by email, if an email address is
listed for the relevant Applicant below,
or personally or by mail, if a physical
address is listed for the relevant
Applicant below. Hearing requests
should be received by the Commission
by 5:30 p.m. on October 14, 2024, and
should be accompanied by proof of
service on the Applicants, in the form
of an affidavit, or, for lawyers, a
certificate of service. Pursuant to rule 0–
5 under the Act, hearing requests should
state the nature of the writer’s interest,
any facts bearing upon the desirability
of a hearing on the matter, the reason for
the request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
emailing the Commission’s Secretary.
HEARING OR NOTIFICATION OF HEARING:
The Commission:
Secretarys-Office@sec.gov. Applicants:
Sally-Jane Miller, sjmiller@gemcorp.net,
with a copy to Jonathan Gaines, Esq.,
Dechert LLP, 1095 Avenue of the
Americas, New York, NY 10036.
[Investment Company Act Release No.
35328; 812–15596]
FOR FURTHER INFORMATION CONTACT:
Gemcorp Capital Advisors LLC and
Gemcorp Commodities Alternative
Products Fund
Trace W. Rakestraw, Senior Special
Counsel, at (202) 551–6825 (Division of
Investment Management, Chief
Counsel’s Office).
September 19, 2024.
Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’).
ACTION: Notice.
ddrumheller on DSK120RN23PROD with NOTICES1
AGENCY:
Notice of an application under section
6(c) of the Investment Company Act of
1940 (the ‘‘Act’’) for an exemption from
sections 18(a)(2), 18(c) and 18(i) of the
Act, under sections 6(c) and 23(c) of the
Act for an exemption from rule 23c–3
under the Act, and for an order pursuant
to section 17(d) of the Act and rule 17d–
1 under the Act.
50 17
CFR 200.30–3(a)(12).
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[FR Doc. 2024–21857 Filed 9–24–24; 8:45 am]
BILLING CODE 8011–01–P
APPLICANTS:
ADDRESSES:
SECURITIES AND EXCHANGE
COMMISSION
For the Commission, by the Division of
Investment Management, under delegated
authority.
Sherry R. Haywood,
Assistant Secretary.
For
Applicants’ representations, legal
analysis, and conditions, please refer to
Applicants’ application, dated August
23, 2024, which may be obtained via the
Commission’s website by searching for
the file number at the top of this
document, or for an Applicant using the
Company name search field on the
SEC’s EDGAR system. The SEC’s
EDGAR system may be searched at
https://www.sec.gov/edgar/searchedgar/
legacy/companysearch.html. You may
also call the SEC’s Public Reference
Room at (202) 551–8090.
SUPPLEMENTARY INFORMATION:
PO 00000
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101103; File No. SR–
NYSECHX–2024–29]
Self-Regulatory Organizations; NYSE
Chicago, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 7.31
September 19, 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, the NYSE Chicago,
Inc. (‘‘NYSE Chicago’’ 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.
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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
E:\FR\FM\25SEN1.SGM
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Federal Register / Vol. 89, No. 186 / Wednesday, September 25, 2024 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
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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,
MPL Order, or Tracking 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 Participants 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
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
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).
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).
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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.
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 Participants
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
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
Participants 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
8 See
note 4, supra.
U.S.C. 78s(b)(3)(A)(iii).
10 17 CFR 240.19b–4(f)(6).
6 15
U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
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Federal Register / Vol. 89, No. 186 / Wednesday, September 25, 2024 / Notices
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
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.
11 15
U.S.C. 78s(b)(3)(A)(iii).
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).
16 15 U.S.C. 78s(b)(2)(B).
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12 17
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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 rule-comments@
sec.gov. Please include file number SR–
NYSECHX–2024–29 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–NYSECHX–2024–29. 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–NYSECHX–2024–29 and should be
submitted on or before October 16,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–21874 Filed 9–24–24; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101097; File No. SR–
GEMX–2024–35]
Self-Regulatory Organizations; Nasdaq
GEMX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Codify the Definition
of GEMX Open/Close End of Day and
Intraday Trade Profile
September 19, 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 6, 2024, Nasdaq GEMX, LLC
(‘‘GEMX’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have been
prepared by the Exchange. 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 codify the
definition of GEMX Open/Close End of
Day and Intraday Trade Profile in the
GEMX rulebook. This filing also
incorporates previously proposed fee
changes that: (i) adjusted fees for GEMX
Open/Close End of Day and Intraday
Trade Profile; (ii) reduced fees for 36
months of historical data for current
customers; and (iii) allowed unlimited
external distribution of GEMX Open/
Close End of Day and Intraday Trade
Profile for a fixed monthly fee.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/gemx/rules, 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
Exchange 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. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
BILLING CODE 8011–01–P
1 15
17 17
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CFR 200.30–3(a)(12).
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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]]>Agencies
[Federal Register Volume 89, Number 186 (Wednesday, September 25, 2024)]
[Notices]
[Pages 78406-78408]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21874]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101103; File No. SR-NYSECHX-2024-29]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 7.31
September 19, 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, the NYSE Chicago, Inc. (``NYSE Chicago'' 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 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.
[[Page 78407]]
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, MPL Order, or Tracking 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 Participants 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).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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 Participants 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 Participants 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
[[Page 78408]]
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 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-NYSECHX-2024-29 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-NYSECHX-2024-29. 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-NYSECHX-2024-29 and should
be submitted on or before October 16, 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. 2024-21874 Filed 9-24-24; 8:45 am]
BILLING CODE 8011-01-P
