Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.31-E, 78416-78418 [2024-21875]
Download as PDF
<![CDATA[
78416
Federal Register / Vol. 89, No. 186 / Wednesday, September 25, 2024 / Notices
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
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.
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).
ddrumheller on DSK120RN23PROD with NOTICES1
12 17
VerDate Sep<11>2014
17:28 Sep 24, 2024
Jkt 262001
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
NYSENAT–2024–26 on the subject line.
Paper Comments
All submissions should refer to file
number SR–NYSENAT–2024–26. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–NYSENAT–2024–26 and should be
submitted on or before October 16,
2024.
Fmt 4703
BILLING CODE 8011–01–P
[Release No. 34–101104; File No. SR–
NYSEARCA–2024–78]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 7.31–E
September 19, 2024.
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
Frm 00138
[FR Doc. 2024–21873 Filed 9–24–24; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
PO 00000
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Vanessa A. Countryman,
Secretary.
Sfmt 4703
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, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 7.31–E 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.
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\25SEN1.SGM
25SEN1
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
1. Purpose
ddrumheller on DSK120RN23PROD with NOTICES1
The Exchange proposes to amend
Rule 7.31–E regarding the Minimum
Trade Size (‘‘MTS’’) Modifier.
Rule 7.31–E(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–E(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–
E(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 ETP Holders 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–E(i)(3) to include the
Discretionary Pegged Order and nondisplayed ALO Order as order types 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 inclusion of the Discretionary
Pegged Order would align Rule 7.31–
E(i)(3) with the rules of its affiliate,
NYSE American LLC (‘‘NYSE
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).
VerDate Sep<11>2014
17:28 Sep 24, 2024
Jkt 262001
American’’), which already provide that
a Discretionary Pegged Order may be
designated with an MTS Modifier,5
thereby promoting consistency in the
rules of affiliated exchanges as to the
same order type. The Exchange also
believes that the inclusion of the nondisplayed ALO Order 6 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–
E(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,7
in general, and furthers the objectives of
Section 6(b)(5),8 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 ETP Holders
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
5 See
NYSE American Rule 7.31E(i)(3) (‘‘A Limit
IOC Order, Non-Displayed Limit Order, MPL Order,
Tracking Order, Non-Displayed Primary Pegged
Order, or Discretionary Pegged Order may be
designated with an MTS Modifier.’’).
6 An ALO Order is a Non-Routable Limit Order
that, unless it receives price improvement, will not
remove liquidity from the NYSE Arca Book; an ALO
Order may be designated as non-displayed. See
Rule 7.31–E(e)(2).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00139
Fmt 4703
Sfmt 4703
78417
benefit of all market participants. The
proposed change would also clarify that
the MTS Modifier may be used in
conjunction with Discretionary Pegged
Orders and 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, as well as consistency with the
rules of an affiliated exchange with
respect to the Discretionary Pegged
Order. 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.9
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 ETP
Holders 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.
9 See
E:\FR\FM\25SEN1.SGM
note 4, supra.
25SEN1
78418
Federal Register / Vol. 89, No. 186 / Wednesday, September 25, 2024 / Notices
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 10 and Rule
19b–4(f)(6) thereunder.11 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 12 and Rule
19b–4(f)(6)(iii) thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),15 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. 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.16
At any time within 60 days of the
filing of such proposed rule change, the
10 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
12 15 U.S.C. 78s(b)(3)(A)(iii).
13 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.
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
16 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).
ddrumheller on DSK120RN23PROD with NOTICES1
11 17
VerDate Sep<11>2014
17:28 Sep 24, 2024
Jkt 262001
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) 17 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:
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–2024–78 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–2024–78. 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
17 15
PO 00000
U.S.C. 78s(b)(2)(B).
Frm 00140
Fmt 4703
Sfmt 4703
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–2024–78 and should be
submitted on or before October 16,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–21875 Filed 9–24–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101105; File No. SR–
CboeBYX–2024–009]
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Notice of Filing of
Amendment No. 1 and Order Instituting
Proceedings To Determine Whether To
Approve or Disapprove of a Proposed
Rule Change, as Modified by
Amendment No. 1, To Amend
Exchange Rule 11.25(e) To Allow Users
To Utilize the Exchange’s Match Trade
Prevention Functionality When
Entering Periodic Auction Orders Onto
the Exchange for Execution
September 19, 2024.
On June 6, 2024, Cboe BYX Exchange,
Inc. (‘‘Exchange’’ or ‘‘BYX’’) filed with
the Securities and Exchange
Commission (the ‘‘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 amend
Exchange Rule 11.25(e) (‘‘Priority and
Execution of Orders’’) to allow Users to
utilize the Exchange’s Match Trade
Prevention functionality when entering
Periodic Auction Orders onto the
Exchange for execution. The proposed
rule change was published for comment
in the Federal Register on June 21,
2024.3 On August 5, 2024, the
Commission extended the time period
within which to approve, disapprove
the proposed rule change, or institute
proceedings to determine whether to
approve or disapprove the proposed
18 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. 100337
(June 14, 2024), 89 FR 52148 (‘‘Notice’’).
1 15
E:\FR\FM\25SEN1.SGM
25SEN1
]]>Agencies
[Federal Register Volume 89, Number 186 (Wednesday, September 25, 2024)]
[Notices]
[Pages 78416-78418]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21875]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101104; File No. SR-NYSEARCA-2024-78]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.31-
E
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, 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).
\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-E 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 78417]]
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-E regarding the Minimum
Trade Size (``MTS'') Modifier.
Rule 7.31-E(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-E(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-
E(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 ETP Holders 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-E(i)(3) to include
the Discretionary Pegged Order and non-displayed ALO Order as order
types 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 inclusion of the Discretionary Pegged
Order would align Rule 7.31-E(i)(3) with the rules of its affiliate,
NYSE American LLC (``NYSE American''), which already provide that a
Discretionary Pegged Order may be designated with an MTS Modifier,\5\
thereby promoting consistency in the rules of affiliated exchanges as
to the same order type. The Exchange also believes that the inclusion
of the non-displayed ALO Order \6\ 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-E(i)(3) would reduce
ambiguity as to the order types that may be designated with an MTS
Modifier.
---------------------------------------------------------------------------
\5\ See NYSE American Rule 7.31E(i)(3) (``A Limit IOC Order,
Non-Displayed Limit Order, MPL Order, Tracking Order, Non-Displayed
Primary Pegged Order, or Discretionary Pegged Order may be
designated with an MTS Modifier.'').
\6\ An ALO Order is a Non-Routable Limit Order that, unless it
receives price improvement, will not remove liquidity from the NYSE
Arca Book; an ALO Order may be designated as non-displayed. See Rule
7.31-E(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,\7\ in general, and furthers the objectives of Section 6(b)(5),\8\
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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 ETP Holders 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 Discretionary Pegged Orders and 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, as
well as consistency with the rules of an affiliated exchange with
respect to the Discretionary Pegged Order. 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.\9\
---------------------------------------------------------------------------
\9\ See note 4, supra.
---------------------------------------------------------------------------
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 ETP Holders 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.
[[Page 78418]]
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 \10\ and Rule 19b-4(f)(6) thereunder.\11\
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 \12\ and Rule
19b-4(f)(6)(iii) thereunder.\13\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 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.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\15\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. 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.\16\
---------------------------------------------------------------------------
\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ 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).
---------------------------------------------------------------------------
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) \17\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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-2024-78 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-2024-78. 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-2024-78 and should
be submitted on or before October 16, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
---------------------------------------------------------------------------
\18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-21875 Filed 9-24-24; 8:45 am]
BILLING CODE 8011-01-P
