Notice2021-17673
Self-Regulatory Organizations; NYSEARCA, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.34-E
Primary source
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Published
August 18, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 157 (Wednesday, August 18, 2021)</title>
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[Federal Register Volume 86, Number 157 (Wednesday, August 18, 2021)]
[Notices]
[Pages 46296-46297]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-17673]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92657; File No. SR-NYSEARCA-2021-71]
Self-Regulatory Organizations; NYSEARCA, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.34-
E
August 12, 2021.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on August 4, 2021, 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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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 7.34-E (Trading Sessions) to
begin accepting orders 90 minutes before the Early Trading Session
begins. The proposed rule change is available on the Exchange's website
at <a href="http://www.nyse.com">www.nyse.com</a>, at the principal office of the Exchange, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 7.34-E (Trading Sessions) to
begin accepting orders 90 minutes before the Early Trading Session
begins.
Currently, Rule 7.34-E(a)(1) provides that the Early Trading
Session will begin at 4:00 a.m. Eastern Time and conclude at the
commencement of the Core Trading Session. The Rule further provides
that the Exchange will begin accepting orders 30 minutes before the
Early Trading Session begins and that the Early Open Auction will begin
the Early Trading Session.
The Exchange proposes to amend Rule 7.34-E(a)(1) to provide that
the Exchange would begin accepting orders 90 minutes before the Early
Trading Session begins, i.e., at 2:30 a.m. Eastern Time. The Exchange
proposes to begin accepting orders earlier to compete with non-exchange
trading venues that begin accepting orders before 3:30 a.m. Eastern
Time. By moving the Exchange's order acceptance time earlier, ETP
Holders that route orders to multiple venues before 3:30 a.m. Eastern
Time would be able to include the Exchange in their early morning
routing determinations. The Exchange does not propose to change the
time when the Early Trading Session would begin or make any other rule
changes.
Because of the technology changes required to implement this
change, subject to effectiveness of this proposed rule change, the
Exchange will announce via Trader Update when the Exchange would begin
accepting orders 90 minutes before the Early Trading Session begins,
which the Exchange anticipates would be in August 2021.
2. Statutory Basis
For the reasons set forth above, the Exchange believes the proposed
rule change is consistent with Section 6(b) of the Act \4\ in general,
and furthers the objectives of Sections 6(b)(5) of the Act,\5\ in that
it is designed to promote just and equitable principles of trade,
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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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change would remove
impediments to and perfect the mechanism of a free and open market and
a national market system because it would not change any trading
functions on the Exchange and would only move up the time when the
Exchange would begin accepting order flow for trading in the Early
Trading Session. In addition, an ETP Holder that opts to send in orders
during this earlier time period could, as today, designate which
trading session such orders would be eligible to trade, including per
Rule 7.34-E(b), a trading session later in the trading day (``an order
designated for a later trading session will be accepted but not
eligible to trade until the designated trading session begins'') or
choose to cancel such orders before they become eligible to trade. The
Exchange further believes that the proposed rule change would promote
competition among the Exchange and non-exchange venues because it would
allow ETP Holders that currently route to non-exchange trading venues
prior to 3:30 a.m. Eastern Time to include the Exchange in their early
morning routing determinations.
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 Exchange believes that
the proposed rule change would promote intermarket competition between
the Exchange and non-exchange trading venues that accept order flow
before 3:30 a.m. Eastern Time.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
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) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6).
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The Exchange has asked the Commission to waive the 30-day operative
delay.\8\ The Commission finds that waiving the 30-day operative delay
is consistent with the protection of
[[Page 46297]]
investors and the public interest because waiver of the operative delay
will allow ETP Holders that route orders to non-exchange venues that
accept order flow before 3:30 a.m. Eastern Time the opportunity to
include the Exchange in its early morning routing determinations.
According to the Exchange, this proposed rule change will not change
any Exchange trading functions, including when the Early Trading
Session begins, and the technology to support this proposed rule change
will be available less than 30 days after filing. Accordingly, the
Commission hereby waives the 30-day operative delay and designates the
proposal operative upon filing.\9\
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\8\ 17 CFR 240.19b-4(f)(6)(iii).
\9\ For purposes only of waiving the 30-day operative delay, the
Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \10\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\10\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#681a1d040d450b0705050d061c1b281b0d0b460f071e"><span class="__cf_email__" data-cfemail="dba9aeb7bef6b8b4b6b6beb5afa89ba8beb8f5bcb4ad">[email protected]</span></a>. Please include
File Number SR-NYSEARCA-2021-71 on the subject line.
Paper Comments
<bullet> 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-2021-71. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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-2021-71 and should be submitted
on or before September 8, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-17673 Filed 8-17-21; 8:45 am]
BILLING CODE 8011-01-P
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