Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NYSE Chicago Rule 7.13 To Remove References to the Chair of the Board, 91862-91864 [2024-27022]
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91862
Federal Register / Vol. 89, No. 224 / Wednesday, November 20, 2024 / Notices
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
NASDAQ–2024–065 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.
khammond on DSK9W7S144PROD with NOTICES
All submissions should refer to file
number SR–NASDAQ–2024–065. 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–NASDAQ–2024–065 and should be
submitted on or before December 11,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.76
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–27019 Filed 11–19–24; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101629; File No. SR–
NYSECHX–2024–34]
Self-Regulatory Organizations; NYSE
Chicago, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend NYSE Chicago
Rule 7.13 To Remove References to
the Chair of the Board
November 14, 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
November 8, 2024, the NYSE Chicago,
Inc. (‘‘NYSE Chicago’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘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
NYSE Chicago Rule 7.13 to remove
references to the Chair of the Board. The
proposed rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
NYSE Chicago Rule 7.13 (Trading
BILLING CODE 8011–01–P
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
76 17
CFR 200.30–3(a)(12).
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Suspensions) to remove references to
the Chair of the Board of Directors of the
Exchange (‘‘Board’’).
Under current Rule 7.13,4 the Chair of
the Board or the chief executive officer
of the Exchange (the ‘‘CEO’’), or the
officer designee of the Chair or the CEO,
has the power to suspend trading on any
and all securities traded on the
Exchange whenever in his or her
opinion such suspension would be in
the public interest. No such action shall
continue longer than two days or as
soon thereafter as a quorum of Directors
can be assembled, unless the Board
approves the continuation of such
suspension.
The Exchange believes that it Is
advisable to remove the references to
the Chair in Rule 7.13 because the Chair
has not acted under Rule 7.13 since the
rule was adopted and the Exchange does
not anticipate that an independent or
non-employee Chair will have sufficient
involvement in the day-to-day
operations of the Exchange to act under
the Rule.
Moreover, the proposed changes to
Rule 7.13 would make it substantially
similar to the rule text governing
Trading Suspensions currently in place
on the Exchange’s affiliate the New York
Stock Exchange LLC (‘‘NYSE’’) in NYSE
Rule 7.13.5 The proposed changes to
Rule 7.13 therefore would harmonize
the Exchange’s rules with those of its
affiliate NYSE and provide for
consistent authority to suspend trading
across the Exchange and the NYSE.
To effectuate the change, the first
sentence of the Rule would be amended
as follows (proposed deletions
bracketed):
The [Chair of the Board or the] CEO, or the
officer designee of [the Chair or] the CEO,
shall have the power to suspend trading in
any and all securities traded on the Exchange
whenever in his or her opinion such
suspension would be in the public interest.
The requirement that no such action
continue longer than two days or as
soon thereafter as a quorum of Directors
can be assembled, unless the Board
4 The current text of Rule 7.13 was adopted in
2019 to harmonize the Exchange’s rules with those
of its affiliates NYSE American LLC, NYSE Arca,
Inc., and NYSE National, Inc. See Securities and
Exchange Act Release No. 85716 (April 25, 2019),
84 FR 18623 (May 1, 2019) (SR–NYSECHX–2019–
07) (Notice of Filing and Immediate Effectiveness of
Proposed Rule Change Regarding New Rules on
Hours of Business, Holidays and Trading Halts and
Suspensions, and Amendment of Article 20, Rule
1).
5 The difference is that the NYSE rule uses
‘‘trading on the Exchange’’ instead of ‘‘traded on the
Exchange.’’ See Securities and Exchange Act
Release No. 101477 (October 30, 2024), 89 FR 87917
(November 5, 2024) (SR–NYSE–2024–58) (Order
Approving a Proposed Rule Change to Amend
NYSE Rule 7.13).
E:\FR\FM\20NON1.SGM
20NON1
Federal Register / Vol. 89, No. 224 / Wednesday, November 20, 2024 / Notices
khammond on DSK9W7S144PROD with NOTICES
approves the continuation of such
suspension, would remain. No other
changes to Rule 7.13 are proposed.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Section
6(b)(1) 7 in particular, in that it enables
the Exchange to be so organized as to
have the capacity to be able to carry out
the purposes of the Act and to comply,
and to enforce compliance by its
exchange members and persons
associated with its exchange members,
with the provisions of the Act, the rules
and regulations thereunder, and the
rules of the Exchange. The Exchange
also 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. In addition, the
Exchange believes that the proposed
rule change is designed to provide fair
procedures for the denial of
membership to any person seeking
Exchange membership, the barring of
any person from becoming associated
with a member, and the prohibition or
limitation by the Exchange of any
person with respect to access to services
offered by the Exchange or a member
thereof, consistent with the objectives of
Section 6(b)(7) 9 and Section 6(d)(2) 10 of
the Act.
The proposed amendment would
enable the Exchange to continue to be
so organized as to have the capacity to
carry out the purposes of the Act,
thereby furthering the objectives of
Section 6(b)(1) 11 of the Act. Amending
Rule 7.13 to remove the references to
the Chair would contribute to the
orderly operation of the Exchange, as it
would make Rule 7.13 more accurately
reflect current practice, as the Chair has
not acted under Rule 7.13 since the rule
was adopted. It would also reflect the
fact that the Exchange does not
anticipate that an independent or nonemployee Chair will have sufficient
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(1).
8 15 U.S.C. 78f(b)(5).
9 15 U.S.C. 78f(b)(7).
10 15 U.S.C. 78f(d)(2).
11 15 U.S.C. 78f(b)(1).
involvement in the day-to-day
operations of the Exchange to act under
the Rule. At the same time, the Chair
would continue to have an oversight
role, since the requirement would
remain that no suspension of trading
continue longer than two days or as
soon thereafter as a quorum of Directors
can be assembled, unless the Board
approves the continuation of such
suspension. Given that, the Board—
including the Chair—would continue to
oversee the length of time any
suspension of trading made under the
Rule would be in effect.
Because amended Rule 7.13 would
more accurately reflect current practice
while still giving the Chair an oversight
role, the Exchange believes that the
proposed change would be beneficial to
both investors and the public interest,
thereby promoting the maintenance of a
fair and orderly market and the
protection of investors and the public
interest consistent with Section 6(b)(5)
of the Act.12 Moreover, 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 in general, protect investors
and the public interest because
substantially similar authority to
suspend trading already exists on the
Exchange’s affiliate NYSE, and therefore
is not novel.
For the same reasons, the Exchange
believes that the proposed changes
would continue to provide fair
procedures for the prohibition or
limitation by the Exchange of any
person with respect to access to services
offered by the Exchange consistent with
the objectives of Section 6(b)(7) 13 and
Section 6(d)(2) 14 of the Act.
For these reasons, the Exchange
believes that the proposal is consistent
with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposal will not impose any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of Section 6(b)(8) of the Act.15
The proposed rule change is not
intended to address competitive issues
but rather is concerned solely with
amending Rule 7.13 so that it more
accurately reflects current practice and
to make it substantially similar to NYSE
Rule 7.13.
7 15
VerDate Sep<11>2014
18:39 Nov 19, 2024
12 15
U.S.C. 78f(b)(5).
U.S.C. 78f(b)(7).
14 15 U.S.C. 78f(d)(2).
15 15 U.S.C. 78f(b)(8).
13 15
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91863
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
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 for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 16 and
subparagraph (f)(6) of Rule 19b–4
thereunder.17
At any time within 60 days of the
filing of the 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 will institute proceedings
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–
NYSECHX–2024–34 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.
16 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule19b–
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 satisfied this requirement.
17 17
E:\FR\FM\20NON1.SGM
20NON1
91864
Federal Register / Vol. 89, No. 224 / Wednesday, November 20, 2024 / Notices
All submissions should refer to file
number SR–NYSECHX–2024–34. 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–2024–34 and should be
submitted on or before December 11,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–27022 Filed 11–19–24; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
khammond on DSK9W7S144PROD with NOTICES
[Release No. 34–101624; File No. SR–
NYSEAMER–2024–71]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change To Amend NYSE American
Rule 7.13E To Remove References to
the Chair of the Board
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
18 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
VerDate Sep<11>2014
18:39 Nov 19, 2024
Jkt 265001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE American Rule 7.13E to remove
references to the Chair of the Board. The
proposed rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
NYSE American Rule 7.13E (Trading
Suspensions) to remove references to
the Chair of the Board of Directors of the
Exchange (‘‘Board’’).
Under current Rule 7.13E,4 the Chair
of the Board or the chief executive
BILLING CODE 8011–01–P
November 14, 2024.
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
November 8, 2024, NYSE American LLC
(‘‘NYSE American’’ or the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘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.
2 15
U.S.C. 78a.
CFR 240.19b–4.
4 The current text of Rule 7.13E was adopted in
2017 to harmonize the Exchange’s rules with those
of its affiliate NYSE Arca, Inc. See Securities and
Exchange Act Release No. 80590 (May 4, 2017), 82
FR 21843 (May 10, 2017) (SR–NYSEMKT–2017–01)
(Order Granting Accelerated Approval of Proposed
Rule Change, as Modified by Amendment No. 1, To
Adopt New Equity Trading Rules To Transition
Trading on the Exchange From a Floor-Based
Market With a Parity Allocation Model to a Fully
Automated Market With a Price-Time Priority
Model on the Exchange’s New Trading Technology
Platform, Pillar).
3 17
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Frm 00193
Fmt 4703
Sfmt 4703
officer of the Exchange (the ‘‘CEO’’), or
the officer designee of the Chair or the
CEO, has the power to suspend trading
on any and all securities traded on the
Exchange whenever in his or her
opinion such suspension would be in
the public interest. No such action shall
continue longer than two days or as
soon thereafter as a quorum of Directors
can be assembled, unless the Board
approves the continuation of such
suspension.
The Exchange believes that it is
advisable to remove the references to
the Chair in Rule 7.13E because the
Chair has not acted under Rule 7.13E
since the rule was adopted and the
Exchange does not anticipate that an
independent or non-employee Chair
will have sufficient involvement in the
day-to-day operations of the Exchange
to act under the Rule.
Moreover, the proposed changes to
Rule 7.13E would make it substantially
similar to the rule text governing
Trading Suspensions currently in place
on the Exchange’s affiliate the New York
Stock Exchange LLC (‘‘NYSE’’) in its
Rule 7.13.5 The proposed changes to
Rule 7.13E therefore would harmonize
the Exchange’s rules with those of its
affiliate NYSE and provide for
consistent authority to suspend trading
across the Exchange and the NYSE.
To effectuate the change, the first
sentence of the Rule would be amended
as follows (proposed deletions
bracketed):
The [Chair of the Board or the] CEO, or the
officer designee of [the Chair or] the CEO,
shall have the power to suspend trading in
any and all securities traded on the Exchange
whenever in his or her opinion such
suspension would be in the public interest.
The requirement that no such action
continue longer than two days or as
soon thereafter as a quorum of Directors
can be assembled, unless the Board
approves the continuation of such
suspension, would remain. No other
changes to Rule 7.13E are proposed.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Section
6(b)(1) 7 in particular, in that it enables
the Exchange to be so organized as to
have the capacity to be able to carry out
5 The difference is that the NYSE rule uses
‘‘trading on the Exchange’’ instead of ‘‘traded on the
Exchange.’’ See Securities and Exchange Act
Release No. 101477 (October 30, 2024), 89 FR 87917
(November 5, 2024) (SR–NYSE–2024–58) (Order
Approving a Proposed Rule Change to Amend
NYSE Rule 7.13).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(1).
E:\FR\FM\20NON1.SGM
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]]>Agencies
[Federal Register Volume 89, Number 224 (Wednesday, November 20, 2024)]
[Notices]
[Pages 91862-91864]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-27022]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101629; File No. SR-NYSECHX-2024-34]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
NYSE Chicago Rule 7.13 To Remove References to the Chair of the Board
November 14, 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 November 8, 2024, the NYSE Chicago, Inc. (``NYSE Chicago'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(``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 NYSE Chicago Rule 7.13 to remove
references to the Chair of the Board. The proposed rule change is
available on the Exchange's website at www.nyse.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend NYSE Chicago Rule 7.13 (Trading
Suspensions) to remove references to the Chair of the Board of
Directors of the Exchange (``Board'').
Under current Rule 7.13,\4\ the Chair of the Board or the chief
executive officer of the Exchange (the ``CEO''), or the officer
designee of the Chair or the CEO, has the power to suspend trading on
any and all securities traded on the Exchange whenever in his or her
opinion such suspension would be in the public interest. No such action
shall continue longer than two days or as soon thereafter as a quorum
of Directors can be assembled, unless the Board approves the
continuation of such suspension.
---------------------------------------------------------------------------
\4\ The current text of Rule 7.13 was adopted in 2019 to
harmonize the Exchange's rules with those of its affiliates NYSE
American LLC, NYSE Arca, Inc., and NYSE National, Inc. See
Securities and Exchange Act Release No. 85716 (April 25, 2019), 84
FR 18623 (May 1, 2019) (SR-NYSECHX-2019-07) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Regarding New Rules
on Hours of Business, Holidays and Trading Halts and Suspensions,
and Amendment of Article 20, Rule 1).
---------------------------------------------------------------------------
The Exchange believes that it Is advisable to remove the references
to the Chair in Rule 7.13 because the Chair has not acted under Rule
7.13 since the rule was adopted and the Exchange does not anticipate
that an independent or non-employee Chair will have sufficient
involvement in the day-to-day operations of the Exchange to act under
the Rule.
Moreover, the proposed changes to Rule 7.13 would make it
substantially similar to the rule text governing Trading Suspensions
currently in place on the Exchange's affiliate the New York Stock
Exchange LLC (``NYSE'') in NYSE Rule 7.13.\5\ The proposed changes to
Rule 7.13 therefore would harmonize the Exchange's rules with those of
its affiliate NYSE and provide for consistent authority to suspend
trading across the Exchange and the NYSE.
---------------------------------------------------------------------------
\5\ The difference is that the NYSE rule uses ``trading on the
Exchange'' instead of ``traded on the Exchange.'' See Securities and
Exchange Act Release No. 101477 (October 30, 2024), 89 FR 87917
(November 5, 2024) (SR-NYSE-2024-58) (Order Approving a Proposed
Rule Change to Amend NYSE Rule 7.13).
---------------------------------------------------------------------------
To effectuate the change, the first sentence of the Rule would be
amended as follows (proposed deletions bracketed):
The [Chair of the Board or the] CEO, or the officer designee of
[the Chair or] the CEO, shall have the power to suspend trading in
any and all securities traded on the Exchange whenever in his or her
opinion such suspension would be in the public interest.
The requirement that no such action continue longer than two days
or as soon thereafter as a quorum of Directors can be assembled, unless
the Board
[[Page 91863]]
approves the continuation of such suspension, would remain. No other
changes to Rule 7.13 are proposed.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Section 6(b)(1) \7\ in particular, in that it enables the
Exchange to be so organized as to have the capacity to be able to carry
out the purposes of the Act and to comply, and to enforce compliance by
its exchange members and persons associated with its exchange members,
with the provisions of the Act, the rules and regulations thereunder,
and the rules of the Exchange. The Exchange also 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. In addition,
the Exchange believes that the proposed rule change is designed to
provide fair procedures for the denial of membership to any person
seeking Exchange membership, the barring of any person from becoming
associated with a member, and the prohibition or limitation by the
Exchange of any person with respect to access to services offered by
the Exchange or a member thereof, consistent with the objectives of
Section 6(b)(7) \9\ and Section 6(d)(2) \10\ of the Act.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(1).
\8\ 15 U.S.C. 78f(b)(5).
\9\ 15 U.S.C. 78f(b)(7).
\10\ 15 U.S.C. 78f(d)(2).
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The proposed amendment would enable the Exchange to continue to be
so organized as to have the capacity to carry out the purposes of the
Act, thereby furthering the objectives of Section 6(b)(1) \11\ of the
Act. Amending Rule 7.13 to remove the references to the Chair would
contribute to the orderly operation of the Exchange, as it would make
Rule 7.13 more accurately reflect current practice, as the Chair has
not acted under Rule 7.13 since the rule was adopted. It would also
reflect the fact that the Exchange does not anticipate that an
independent or non-employee Chair will have sufficient involvement in
the day-to-day operations of the Exchange to act under the Rule. At the
same time, the Chair would continue to have an oversight role, since
the requirement would remain that no suspension of trading continue
longer than two days or as soon thereafter as a quorum of Directors can
be assembled, unless the Board approves the continuation of such
suspension. Given that, the Board--including the Chair--would continue
to oversee the length of time any suspension of trading made under the
Rule would be in effect.
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\11\ 15 U.S.C. 78f(b)(1).
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Because amended Rule 7.13 would more accurately reflect current
practice while still giving the Chair an oversight role, the Exchange
believes that the proposed change would be beneficial to both investors
and the public interest, thereby promoting the maintenance of a fair
and orderly market and the protection of investors and the public
interest consistent with Section 6(b)(5) of the Act.\12\ Moreover, 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 in general, protect investors and the public
interest because substantially similar authority to suspend trading
already exists on the Exchange's affiliate NYSE, and therefore is not
novel.
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\12\ 15 U.S.C. 78f(b)(5).
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For the same reasons, the Exchange believes that the proposed
changes would continue to provide fair procedures for the prohibition
or limitation by the Exchange of any person with respect to access to
services offered by the Exchange consistent with the objectives of
Section 6(b)(7) \13\ and Section 6(d)(2) \14\ of the Act.
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\13\ 15 U.S.C. 78f(b)(7).
\14\ 15 U.S.C. 78f(d)(2).
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For these reasons, the Exchange believes that the proposal is
consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposal will not impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of Section 6(b)(8) of the Act.\15\ The proposed rule
change is not intended to address competitive issues but rather is
concerned solely with amending Rule 7.13 so that it more accurately
reflects current practice and to make it substantially similar to NYSE
Rule 7.13.
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\15\ 15 U.S.C. 78f(b)(8).
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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
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 for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \16\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\17\
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\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 17 CFR 240.19b-4(f)(6). In addition, Rule19b-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 satisfied this requirement.
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At any time within 60 days of the filing of the 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 will institute proceedings 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 [email protected]. Please include
file number SR-NYSECHX-2024-34 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.
[[Page 91864]]
All submissions should refer to file number SR-NYSECHX-2024-34. 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-2024-34 and should
be submitted on or before December 11, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-27022 Filed 11-19-24; 8:45 am]
BILLING CODE 8011-01-P
