Notice2022-07080
Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NYSE Rule 6A
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 5, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 65 (Tuesday, April 5, 2022)</title>
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[Federal Register Volume 87, Number 65 (Tuesday, April 5, 2022)]
[Notices]
[Pages 19722-19723]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-07080]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94558; File No. SR-NYSE-2022-15]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend NYSE Rule 6A
March 30, 2022.
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 March 24, 2022, New York Stock Exchange LLC (``NYSE'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III 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 NYSE Rule 6A (``Trading Floor'') to
exclude from the definition of Trading Floor the presence of fully
enclosed telephone booths located in 18 Broad Street. 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 NYSE Rule 6A (``Trading Floor'') to
exclude from the definition of ``Trading Floor'' the presence of fully
enclosed telephone booths located in 18 Broad Street.
The Exchange currently defines ``Trading Floor'' \4\ in Rule 6A(a)
to mean the restricted-access physical areas designated by the Exchange
for the trading of securities, commonly known as the ``Main Room'' and
the ``Buttonwood Room.'' \5\ Rule 6A(b) currently specifies that the
Exchange's Trading Floor does not include (i) areas designated by the
Exchange where NYSE American-listed options are traded, commonly known
as the ``Buttonwood Room,'' which, for the purposes of the Exchange's
Rules, are referred to as the ``NYSE American Options Trading Floor,''
or (ii) the physical area within fully enclosed telephone booths
located in 18 Broad Street at the Southeast wall of the Trading
Floor.\6\
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\4\ Access to the Trading Floor is restricted at each entrance
by turnstiles and only authorized visitors, members or member firm
employees are permitted to enter.
\5\ See NYSE Rule 6A. The term ``Trading Floor'' is distinct
from the term ``Floor.'' The term ``Floor'' means the trading Floor
of the Exchange and the premises immediately adjacent thereto, such
as the various entrances and lobbies of the 11 Wall Street, 18 New
Street, 8 Broad Street, 12 Broad Street and 18 Broad Street
Buildings, and also means the telephone facilities available in
these locations. See NYSE Rule 6.
\6\ See id. See also Securities Exchange Act Release Nos. 59479
(March 2, 2009), 74 FR 10325 (March 10, 2009) (SR-NYSE-2009-23)
(Notice of filing adopting NYSE Rule 6A and explaining that the
proposed definition of ``Trading Floor'' will provide a more
accurate description of the physical areas of the Floor where
trading is actually conducted); and 78855 (September 15, 2016), 81
FR 64966 (September 21, 2016) (SR-NYSE-2016-31) (Approval of filing
amending Rule 6A renaming the physical area formerly known as the
``Garage'' to the ``Buttonwood Room'' and excluding the physical
area within fully enclosed telephone booths located in 18 Board
Street from the definition of Trading Floor) (``2016 Filing'')).
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The telephone booths were installed in 2016 to facilitate
communication by DMMs with issuers but can be used by anyone on the
Trading Floor.\7\ The telephone booths, however, have been
underutilized. As a result, the Exchange has determined to completely
remove the telephone booths at 18 Broad Street. To reflect this change,
the Exchange proposes to delete the phrase ``the physical area within
fully enclosed telephone booths located in 18 Broad Street at the
Southeast wall of the Trading Floor'' from Rule 6A(b). The Exchange
does not anticipate that removal of the telephone booths will in any
way impede a DMM's obligation to regularly communicate with their
listed issuers.\8\
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\7\ See 2016 Filing, 81 FR at 64966.
\8\ See Rule 104(j).
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Once the telephone booths are removed, the area where the telephone
booths are located will again be a part of the Trading Floor and would
fall within the broader definition of Floor under Exchange rules. The
Exchange will thus retain jurisdiction in this area to regulate conduct
that is inconsistent with Exchange Rules and the federal securities
laws and rules thereunder.
2. Statutory Basis
The Exchange believes that the proposed rule changes are consistent
with, and further the objectives of, Section 6(b)(5) of the Securities
Exchange Act of 1934 \9\ (the ``Act''), in that they are designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, 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
proposed rule
[[Page 19723]]
change would exclude from the definition of Trading Floor the presence
of fully-enclosed telephone booths that are located on the perimeter of
the Trading Floor. The Exchange believes that excluding the presence of
these telephone booths from the definition of Trading Floor is designed
to prevent fraudulent and manipulative acts and practices and to
promote just and equitable principles of trade because the area where
the telephone booths are located will once again become a part of the
Trading Floor and thus allow the Exchange to regulate conduct that is
inconsistent with Exchange Rules and the federal securities laws and
rules thereunder. The Exchange also believes that the proposed change
would protect investors and the public interest because removing
reference to telephone booths from the definition of Trading Floor
would make the Exchange's rulebook more transparent and facilitate
market participants' understanding of the rules applicable to them.
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\9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not designed to address any issues relating to competition. Rather, the
proposed rule change would remove the physical area where telephone
booths are located from the definition of Trading Floor and revert
jurisdiction in that area back to the Exchange.
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 \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) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
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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) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\14\ 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#542621383179373b3939313a2027142731377a333b22"><span class="__cf_email__" data-cfemail="651710090048060a0808000b1116251600064b020a13">[email protected]</span></a>. Please include
File Number SR-NYSE-2022-15 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-NYSE-2022-15. 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-NYSE-2022-15 and should be submitted on
or before April 26, 2022.
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\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-07080 Filed 4-4-22; 8:45 am]
BILLING CODE 8011-01-P
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