Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To Adopt Temporary Rule 7.34-E(T) and Revise Rules 1.1 and 7.34-E To Lengthen Current Extended Trading Sessions, 90143-90145 [2024-26418]
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Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices
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–MEMX–2024–44 and should be
submitted on or before December 5,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.26
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–26416 Filed 11–13–24; 8:45 am]
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101559; File No. SR–
NYSEARCA–2024–89]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change To Adopt Temporary Rule
7.34–E(T) and Revise Rules 1.1 and
7.34–E To Lengthen Current Extended
Trading Sessions
November 7, 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 October
25, 2024, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to adopt
temporary Rule 7.34–E(T) and revise
Rules 1.1 and 7.34–E to permit the
Exchange to lengthen the current
extended trading sessions. 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.
26 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
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II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
1. Purpose
The Exchange proposes to adopt
temporary Rule 7.34–E(T) and revise
Rules 1.1 (Definitions) and 7.34–E
(Trading Sessions) to permit the
Exchange to lengthen current extended
trading hours for NMS stocks to 22
hours a day, 5 days a week. The
Exchange also proposes certain
technical, conforming changes to Rule
5.1–E(a) (General Provisions and
Unlisted Trading Privileges) and
Commentary .08 to Rule 9.5320–E
(Prohibition Against Trading Ahead of
Customer Orders).
Background and Proposed Rule Change
The Exchange currently offers three
trading sessions each day the Exchange
is open for business unless the
Exchange determines otherwise, as
follows.
First, the Exchange’s Early Trading
Session begins at 4:00 a.m. Eastern Time
(‘‘E.T.’’) and concludes at the
commencement of the Core Trading
Session.4 The second or Core Trading
Session begins for each security at 9:30
a.m. E.T. and ends at the conclusion of
Core Trading Hours or the Core Closing
Auction, whichever comes later.5 The
final session is the Late Trading Session,
which begins following the conclusion
of the Core Trading Session and
concludes at 8:00 p.m. E.T.
In order to facilitate the trading of
NMS securities on the Exchange for 22
hours a day, 5 days a week, as recently
announced,6 the Exchange proposes to
4 See
Rule 7.34–E(a)(1). The Exchange begins
accepting orders 90 minutes before the Early
Trading Session begins. See id.
5 See Rule 7.34–E(a)(2). ‘‘Core Trading Hours’’
means the hours of 9:30 a.m. E.T. through 4:00 p.m.
E.T. or such other hours as may be determined by
the Exchange from time to time. See Rule 1.1.
6 See ‘‘The New York Stock Exchange Plans to
Extend Weekday Trading on its NYSE Arca Equities
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90143
adopt a temporary Rule 7.34–E titled
‘‘7.34–E(T).’’ The proposed temporary
rule would be identical to current Rule
7.34–E with two exceptions. First, the
beginning and ending times of the Early
and Late Trading Sessions, respectively,
would be changed to reflect the
proposed enlarged extended trading
hours. Second, the Exchange would
shorten the time it will begin accepting
orders before commencement of the
Early Trading Session from 90 minutes
to 30 minutes. The current version of
Rule 7.34–E would remain operative
until the Exchange announces by Trader
Update a transition to the new proposed
Extended Trading Hours, which may
depend on the effectiveness of
additional, related rule filings as well as
market infrastructure changes.7 Once
the proposed enlarged extended trading
hours are operative, the Exchange
would file a proposed rule change to
delete the current version of Rule 7.34–
E and the ‘‘T’’ designation in Rule 7.34–
E(T).
Further, the Exchange would add the
following legend to current Rule 7.34–
E (new text italicized):
This version of Rule 7.34–E will
remain operative until the Exchange
announces by Trader Update the
expansion of Extended Trading Hours to
encompass the hours set forth in Rule
7.34–E(T)(a). The Exchange will then
file a proposed rule change to delete this
version of Rule 7.34–E and preamble,
and delete the ‘‘T ’’ designation in Rule
7.34–E(T).
The Exchange would also revise
current Rule 1.1 to add a definition of
Extended Hours Trading to mean
trading during the Early Trading Session
and the Late Trading Session. The term
is used without capitalization in current
Rule 7.34–E(d) describing required
customer disclosures. The Exchange
proposes to use the proposed definition
in proposed Rule 7.34–E(T)(d) and
current Rule 7.34–E(d), with the
exception of subsection (d)(4) of the
current and proposed temporary rules,
which use the phrase generically. The
Exchange believes the proposal would
add transparency and clarity to the
Exchange’s rules.
The Exchange would also make
certain technical, conforming changes to
Rule 5.1–E(a) and Commentary .08 to
Rule 9.5320–E.
Exchange to 22 Hours a Day,’’ October 25, 2024 (the
‘‘Press Release’’), available at https://ir.theice.com/
press/news-details/2024/The-New-York-StockExchange-Plans-to-Extend-Weekday-Trading-on-itsNYSE-Arca-Equities-Exchange-to-22-Hours-a-Day/
default.aspx.
7 As noted in the Press Release, the Exchange will
be seeking support for the proposed extended hours
trading from the U.S. securities information
processors. See id.
E:\FR\FM\14NON1.SGM
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90144
Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices
First, the Exchange would replace
obsolete references to the ‘‘Opening
session’’ and ‘‘Late Trading Session’’
and the associated session start and end
times in Pacific Time in Rule 5.1–
E(a)(2)(i) with the defined term
‘‘Extended Hours Trading.’’ The
Exchange would also delete a stray
period at the end of the rule heading.
The proposed changes would add
transparency and clarity to the
Exchange’s rules.
Finally, the Exchange would replace
the obsolete reference to ‘‘6:30 a.m. to
1:00 p.m. Pacific Standard Time’’ in
Commentary .08 to Rule 9.5320–E with
‘‘the Core Trading Session.’’ The
proposed change would also add
transparency and clarity to the
Exchange’s rules.
ddrumheller on DSK120RN23PROD with NOTICES1
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b)(5) of the Act,8 in that 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.
Generally, the Exchange believes that
the proposal, including the proposed
temporary rule to support longer
extended hours trading, would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system by
providing a rules framework to support
the Exchange’s introduction of trading
on the Exchange for 22 hours a day, 5
days a week, which the Exchange
believes will increase market
accessibility, promote capital formation,
and facilitate portfolio management.
Further, the Exchange believes that
adopting a temporary rule that would
only be operative upon transition to the
new proposed Extended Trading Hours,
which may depend on the effectiveness
of additional, related rule filings as well
as market infrastructure changes, and
adding a legend to the current version
of Rule 7.34–E specifying that the
current rule will remain operative until
that time, would promote transparency
in Exchange rules and add clarity as to
which rules are operative and when,
thereby reducing potential confusion,
and making the Exchange’s rules easier
to navigate.
8 15
U.S.C. 78f(b)(5).
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The Exchange believes that adding a
definition of Extended Hours Trading to
Rule 1.1 would remove impediments to
and perfect the mechanism of a free and
open market and national market system
by adding clarity to the Exchange’s rules
through the introduction of a definition
that can be utilized immediately and
that would not need to be updated once
the Exchange migrates to 22 hour
trading, 5 days a week. The Exchange
further believes that eliminating
obsolete legacy material from Rule 5.1–
E(a) and Commentary .08 to Rule
9.5320–E similarly removes
impediments to and perfects the
mechanism of a free and open market by
removing confusion that may result
from having obsolete material in the
Exchange’s rulebook. The Exchange
believes that eliminating such obsolete
material would not be inconsistent with
the public interest and the protection of
investors because investors will not be
harmed and in fact would benefit from
increased transparency, thereby
reducing potential confusion.
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 is designed to propose
rule changes to support trading on the
Exchange for 22 hours a day, 5 days a
week. The Exchange operates in a
highly competitive environment in
which unaffiliated exchange
competitors and new entrants could
compete to offer extended hours trading
of similar duration, and the proposal
would therefore enable the Exchange to
compete on a more level playing field
with these competitors.
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
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission shall:
PO 00000
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Sfmt 4703
(A) by order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be 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–2024–89 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–2024–89. 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
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSEARCA–2024–89 and
E:\FR\FM\14NON1.SGM
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Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices
should be submitted on or before
December 5, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–26418 Filed 11–13–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101566; File No. SR–FICC–
2024–801]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
No Objection to Advance Notice, as
Modified by Partial Amendment No. 1,
To Adopt a Minimum Margin Amount at
GSD
November 8, 2024.
On February 27, 2024, Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) advance
notice SR–FICC–2024–801 pursuant to
Section 806(e)(1) of Title VIII of the
Dodd-Frank Wall Street Reform and
Consumer Protection Act entitled the
Payment, Clearing, and Settlement
Supervision Act of 2010 (‘‘Clearing
Supervision Act’’) 1 and Rule 19b–
4(n)(1)(i) under the Securities Exchange
Act of 1934 (‘‘Act’’).2 In the advance
notice, FICC proposes to add a
minimum margin amount calculation to
the margin methodology of FICC’s
Government Securities Division
(‘‘GSD’’) to enhance margin collections
during periods of extreme market
volatility, as described more fully
below. The notice of filing of the
advance notice was published for
comment in the Federal Register on
March 15, 2024.3 4 Upon publication of
9 17
CFR 200.30–3(a)(12).
U.S.C. 5465(e)(1).
2 17 CFR 240.19b–4(n)(1)(i).
3 Securities Exchange Act Release No. 99712
(March 11, 2024), 89 FR 18981 (March 15, 2024)
(SR–FICC–2024–801).
4 On February 27, 2024, FICC filed the advance
notice as a proposed rule change with the
Commission pursuant to Section 19(b)(1) of the Act,
15 U.S.C. 78s(b)(1), and Rule 19b–4 thereunder, 17
CFR 240.19b–4. The notice of proposed rule change
was published in the Federal Register on March 15,
2024. Securities Exchange Act Release No. 99710
(March 11, 2024), 89 FR 18991 (March 15, 2024)
(SR–FICC–2024–003). On March 25, 2024, the
Commission extended the review period of the
proposed rule change, pursuant to section 19(b)(2)
of the Act, 15 U.S.C. 78s(b)(2)(ii), until June 13,
2024, as the date by which the Commission shall
either approve, disapprove, or institute proceedings
to determine whether to disapprove the proposed
rule change. Securities Exchange Act Release No.
99769 (March 19, 2024), 89 FR 20716 (March 25,
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1 12
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notice of filing of the advance notice,
the Commission extended the review
period of the advance notice for an
additional 60 days because the
Commission determined that the
advance notice raised novel and
complex issues.5 On March 22, 2024,
the Commission requested additional
information from FICC pursuant to
Section 806(e)(1)(D) of the Clearing
Supervision Act, which tolled the
Commission’s period of review of the
advance notice until 120 days from the
date the information requested by the
Commission was received by the
Commission.6 On April 26, 2024, the
Commission received FICC’s response to
the Commission’s request for additional
information.7
On April 5, 2024, FICC filed Partial
Amendment No. 1 to the advance notice
to correct errors FICC discovered
regarding the impact analysis filed as
Exhibit 3 and discussed in the filing
narrative, as well as correct a typo in the
methodology formula in Exhibit 5b.8
Partial Amendment No. 1 corrected
percentages and other figures
throughout the filing narrative. The
corrections in Partial Amendment No. 1
did not change the substance of the
advance notice. On May 20, 2024, the
2024) (SR–FICC–2024–003). On May 20, 2024, the
Commission published in the Federal Register an
Order Instituting Proceedings to determine whether
to approve or disapprove the proposed rule change.
Securities Exchange Act Release No. 100141 (May
14, 2024), 89 FR 43915 (May 20, 2024) (SR–FICC–
2024–003). On September 12, 2024, the
Commission designated a longer period for
Commission action on the proceedings to determine
whether to disapprove the proposed rule change,
until November 10, 2024. Securities Exchange Act
Release No. 100958 (Sept. 6, 2024), 89 FR 74309
(Sept. 12, 2024) (SR–FICC–2024–003).
5 Pursuant to Section 806(e)(1)(H) of the Act, the
Commission may extend the review period of an
advance notice for an additional 60 days, if the
changes proposed in the advance notice raise novel
or complex issues, subject to the Commission
providing the financial market utility (‘‘FMU’’) with
prompt written notice of the extension.12 U.S.C.
5465(e)(1)(H); see supra note 3 at 18990 (explaining
the Commission’s rationale for determining that the
proposed changes in the advance notice raise novel
and complex issues because the proposed changes
to FICC’s margin model are a direct response by
FICC to address the unique circumstances that
occurred during recent periods of extreme market
volatility (i.e., the pandemic-related market
volatility in March 2020 and the volatility during
the successive interest rate hikes that began in
March 2022).
6 See 12 U.S.C. 5465(e)(1)(D). A memo regarding
the Request for Additional Information and the
tolled period of review is available at https://
www.sec.gov/comments/sr-ficc-2024-801/
srficc2024801-449019-1150022.pdf.
7 See 12 U.S.C. 5465(e)(1)(E)(ii) and (G)(ii). A
memo regarding receipt of FICC’s response to the
Request for Additional Information is available at
https://www.sec.gov/comments/sr-ficc-2024-801/
srficc2024801-471851-1323835.pdf.
8 FICC has requested confidential treatment
pursuant to 17 CFR 240.24b–2 with respect to
Exhibit 3 and Exhibit 5b.
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90145
Commission published notice of the
advance notice, as modified by Partial
Amendment No. 1 (hereinafter, the
‘‘Advance Notice’’), for comment in the
Federal Register.9
On August 13, 2024, the Commission
made a second request for additional
information from FICC pursuant to
Section 806(e)(1)(D) of the Clearing
Supervision Act, which tolled the
Commission’s period of review of the
advance notice until 120 days from the
date the information requested by the
Commission was received by the
Commission.10 On September 26, 2024,
the Commission received FICC’s
response to the Commission’s second
request for additional information.11
The Commission has received
comments regarding the substance of
the changes proposed in the Advance
Notice.12 In addition, the Commission
received a letter from FICC responding
to the comments.13 This publication
serves as notice of no objection to the
Advance Notice.
I. The Advance Notice
A. Executive Summary
FICC proposes to add a new
Minimum Margin Amount (‘‘MMA’’)
calculation to the GSD margin
methodology to ensure that FICC
collects sufficient margin amounts from
its members during sudden periods of
extreme market volatility. Recently,
FICC faced increased risk exposure to its
members during two periods of extreme
market volatility, i.e., the COVID-related
volatility in March 2020 and the
volatility resulting from the successive
interest rate hikes that began in March
2022. Those periods of volatility
involved market price changes that
9 Securities Exchange Act Release No. 99712 (May
14, 2024), 89 FR 43941 (May 20, 2024) (SR–FICC–
2024–801) (‘‘Notice of Filing’’).
10 See 12 U.S.C. 5465(e)(1)(D). A memo regarding
the second Request for Additional Information and
the tolled period of review is available at https://
www.sec.gov/comments/sr-ficc-2024-801/
srficc2024801-506275-1473822.pdf.
11 See 12 U.S.C. 5465(e)(1)(E)(ii) and (G)(ii). A
memo regarding receipt of FICC’s response to the
second Request for Additional Information is
available at https://www.sec.gov/comments/sr-ficc2024-801/srficc2024801-527175-1514362.pdf.
12 Comments on the Advance Notice are available
at https://www.sec.gov/comments/sr-ficc-2024-801/
srficc2024801.htm. Comments on the proposed rule
change are available at https://www.sec.gov/
comments/sr-ficc-2024-003/srficc2024003.htm.
Because the proposals contained in the Advance
Notice and the proposed rule change are the same,
the Commission considers all comments received
on the proposal, regardless of whether the
comments are submitted with respect to the
Advance Notice or the proposed rule change.
13 See Letter from Timothy B. Hulse, Managing
Director, Financial Risk, Governance & Credit Risk,
Depository Trust & Clearing Corporation, (June 24,
2024) (‘‘FICC Letter’’).
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]]>Agencies
[Federal Register Volume 89, Number 220 (Thursday, November 14, 2024)]
[Notices]
[Pages 90143-90145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26418]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101559; File No. SR-NYSEARCA-2024-89]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change To Adopt Temporary Rule 7.34-E(T) and Revise
Rules 1.1 and 7.34-E To Lengthen Current Extended Trading Sessions
November 7, 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 October 25, 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 adopt temporary Rule 7.34-E(T) and revise
Rules 1.1 and 7.34-E to permit the Exchange to lengthen the current
extended trading sessions. 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 adopt temporary Rule 7.34-E(T) and revise
Rules 1.1 (Definitions) and 7.34-E (Trading Sessions) to permit the
Exchange to lengthen current extended trading hours for NMS stocks to
22 hours a day, 5 days a week. The Exchange also proposes certain
technical, conforming changes to Rule 5.1-E(a) (General Provisions and
Unlisted Trading Privileges) and Commentary .08 to Rule 9.5320-E
(Prohibition Against Trading Ahead of Customer Orders).
Background and Proposed Rule Change
The Exchange currently offers three trading sessions each day the
Exchange is open for business unless the Exchange determines otherwise,
as follows.
First, the Exchange's Early Trading Session begins at 4:00 a.m.
Eastern Time (``E.T.'') and concludes at the commencement of the Core
Trading Session.\4\ The second or Core Trading Session begins for each
security at 9:30 a.m. E.T. and ends at the conclusion of Core Trading
Hours or the Core Closing Auction, whichever comes later.\5\ The final
session is the Late Trading Session, which begins following the
conclusion of the Core Trading Session and concludes at 8:00 p.m. E.T.
---------------------------------------------------------------------------
\4\ See Rule 7.34-E(a)(1). The Exchange begins accepting orders
90 minutes before the Early Trading Session begins. See id.
\5\ See Rule 7.34-E(a)(2). ``Core Trading Hours'' means the
hours of 9:30 a.m. E.T. through 4:00 p.m. E.T. or such other hours
as may be determined by the Exchange from time to time. See Rule
1.1.
---------------------------------------------------------------------------
In order to facilitate the trading of NMS securities on the
Exchange for 22 hours a day, 5 days a week, as recently announced,\6\
the Exchange proposes to adopt a temporary Rule 7.34-E titled ``7.34-
E(T).'' The proposed temporary rule would be identical to current Rule
7.34-E with two exceptions. First, the beginning and ending times of
the Early and Late Trading Sessions, respectively, would be changed to
reflect the proposed enlarged extended trading hours. Second, the
Exchange would shorten the time it will begin accepting orders before
commencement of the Early Trading Session from 90 minutes to 30
minutes. The current version of Rule 7.34-E would remain operative
until the Exchange announces by Trader Update a transition to the new
proposed Extended Trading Hours, which may depend on the effectiveness
of additional, related rule filings as well as market infrastructure
changes.\7\ Once the proposed enlarged extended trading hours are
operative, the Exchange would file a proposed rule change to delete the
current version of Rule 7.34-E and the ``T'' designation in Rule 7.34-
E(T).
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\6\ See ``The New York Stock Exchange Plans to Extend Weekday
Trading on its NYSE Arca Equities Exchange to 22 Hours a Day,''
October 25, 2024 (the ``Press Release''), available at https://ir.theice.com/press/news-details/2024/The-New-York-Stock-Exchange-Plans-to-Extend-Weekday-Trading-on-its-NYSE-Arca-Equities-Exchange-to-22-Hours-a-Day/default.aspx.
\7\ As noted in the Press Release, the Exchange will be seeking
support for the proposed extended hours trading from the U.S.
securities information processors. See id.
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Further, the Exchange would add the following legend to current
Rule 7.34-E (new text italicized):
This version of Rule 7.34-E will remain operative until the
Exchange announces by Trader Update the expansion of Extended Trading
Hours to encompass the hours set forth in Rule 7.34-E(T)(a). The
Exchange will then file a proposed rule change to delete this version
of Rule 7.34-E and preamble, and delete the ``T '' designation in Rule
7.34-E(T).
The Exchange would also revise current Rule 1.1 to add a definition
of Extended Hours Trading to mean trading during the Early Trading
Session and the Late Trading Session. The term is used without
capitalization in current Rule 7.34-E(d) describing required customer
disclosures. The Exchange proposes to use the proposed definition in
proposed Rule 7.34-E(T)(d) and current Rule 7.34-E(d), with the
exception of subsection (d)(4) of the current and proposed temporary
rules, which use the phrase generically. The Exchange believes the
proposal would add transparency and clarity to the Exchange's rules.
The Exchange would also make certain technical, conforming changes
to Rule 5.1-E(a) and Commentary .08 to Rule 9.5320-E.
[[Page 90144]]
First, the Exchange would replace obsolete references to the
``Opening session'' and ``Late Trading Session'' and the associated
session start and end times in Pacific Time in Rule 5.1-E(a)(2)(i) with
the defined term ``Extended Hours Trading.'' The Exchange would also
delete a stray period at the end of the rule heading. The proposed
changes would add transparency and clarity to the Exchange's rules.
Finally, the Exchange would replace the obsolete reference to
``6:30 a.m. to 1:00 p.m. Pacific Standard Time'' in Commentary .08 to
Rule 9.5320-E with ``the Core Trading Session.'' The proposed change
would also add transparency and clarity to the Exchange's rules.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(5) of the Act,\8\ in that 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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\8\ 15 U.S.C. 78f(b)(5).
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Generally, the Exchange believes that the proposal, including the
proposed temporary rule to support longer extended hours trading, would
remove impediments to and perfect the mechanism of a free and open
market and a national market system by providing a rules framework to
support the Exchange's introduction of trading on the Exchange for 22
hours a day, 5 days a week, which the Exchange believes will increase
market accessibility, promote capital formation, and facilitate
portfolio management. Further, the Exchange believes that adopting a
temporary rule that would only be operative upon transition to the new
proposed Extended Trading Hours, which may depend on the effectiveness
of additional, related rule filings as well as market infrastructure
changes, and adding a legend to the current version of Rule 7.34-E
specifying that the current rule will remain operative until that time,
would promote transparency in Exchange rules and add clarity as to
which rules are operative and when, thereby reducing potential
confusion, and making the Exchange's rules easier to navigate.
The Exchange believes that adding a definition of Extended Hours
Trading to Rule 1.1 would remove impediments to and perfect the
mechanism of a free and open market and national market system by
adding clarity to the Exchange's rules through the introduction of a
definition that can be utilized immediately and that would not need to
be updated once the Exchange migrates to 22 hour trading, 5 days a
week. The Exchange further believes that eliminating obsolete legacy
material from Rule 5.1-E(a) and Commentary .08 to Rule 9.5320-E
similarly removes impediments to and perfects the mechanism of a free
and open market by removing confusion that may result from having
obsolete material in the Exchange's rulebook. The Exchange believes
that eliminating such obsolete material would not be inconsistent with
the public interest and the protection of investors because investors
will not be harmed and in fact would benefit from increased
transparency, thereby reducing potential confusion.
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 is
designed to propose rule changes to support trading on the Exchange for
22 hours a day, 5 days a week. The Exchange operates in a highly
competitive environment in which unaffiliated exchange competitors and
new entrants could compete to offer extended hours trading of similar
duration, and the proposal would therefore enable the Exchange to
compete on a more level playing field with these competitors.
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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission shall:
(A) by order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be 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 [email protected]. Please include
File Number SR-NYSEARCA-2024-89 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-2024-89. 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 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEARCA-2024-89 and
[[Page 90145]]
should be submitted on or before December 5, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-26418 Filed 11-13-24; 8:45 am]
BILLING CODE 8011-01-P
