Notice2022-13593
Self-Regulatory Organizations; NYSE American, LLC.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 902NY To Remove an Obsolete Reference
Primary source
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Published
June 27, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 122 (Monday, June 27, 2022)</title>
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[Federal Register Volume 87, Number 122 (Monday, June 27, 2022)]
[Notices]
[Pages 38225-38226]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-13593]
[[Page 38225]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95135; File No. SR-NYSEAMER-2022-26]
Self-Regulatory Organizations; NYSE American, LLC.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 902NY To Remove an Obsolete Reference
June 21, 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 June 16, 2022, NYSE American, LLC (``NYSE American'' 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 902NY(c) (Admission and Conduct
on the Options Trading Floor) to remove an obsolete reference. 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 902NY(c) regarding that
Standards of Dress and Conduct on the Exchange to remove an obsolete
reference.
Rule 902NYspecifies the requirements for conduct and dress for
person to follow while on the Options Trading Floor.\4\ Rule 902NY(c)
``Standards of Dress and Conduct'', as follows:
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\4\ The terms ``Floor'' and ``Trading Floor'' are defined in
Rule 900.2NY(30) to mean ``the options trading floor located at 11
Wall Street, New York, NY.''
All ATP Holders are required to act in a manner consistent with
a fair and orderly market and with the maintenance of public
confidence in the Exchange. All persons on the Options Trading Floor
shall comply with the standards of dress and conduct in Chapter 13,
Floor Conduct Policy, of the NYSE Floor Officials Manual.\5\
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\5\ See Rule 902NY(c).
The reference to Chapter 13, Floor Conduct Policy, of the NYSE
Floor Officials Manual is obsolete. Historically, the behavior and
conduct of NYSE members on the NYSE equities trading Floor was
regulated by Floor Conduct and Safety Guidelines administered by NYSE
Floor Officials. In 2021, however, the NYSE eliminated the role and
function of NYSE Floor Officials and adopted a new Rule 37, setting
forth standards of dress and conduct for the NYSE equities trading
Floor modeled on Rule 902NY.\6\ As such, the second sentence of current
Rule 902NY(c) is no longer applicable and the Exchange proposes to
eliminate it.
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\6\ See Securities Exchange Act Release No. 94217 (February 10,
2022), 87 FR 8901 (February 16, 2022) (SR-NYSE-2021-73) (Order).
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In place of the obsolete reference, the Exchange proposes to revise
Rule 902NY(c) to mirror language set forth in the analogous rule in
place on the Exchange's affiliate NYSE Arca (``Arca''). Arca Rule 6.2-O
(Admission to and Conduct on the Options Trading Floor), is
substantially similar to Rule 902NY(c) in establishing standards of
conduct and dress for persons while on the Arca options trading
floors.\7\ Consistent with Arca Rule 6.2-O(c), proposed 902NY(c),
regarding ``Standards of Dress and Conduct,'' would establish that:
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\7\ See Rule 6.2-O(c) establishing the Standards of Dress and
Conduct and requirement that ``[a]ll OTP Holders and OTP Firms are
required to act in a manner consistent with a fair and orderly
market and with the maintenance of public confidence in the
Exchange. Accordingly, appropriate standards pertaining to dress and
conduct on the Options Trading Floor, including, but not limited to,
the following standards shall be observed:''
All ATP Holders are required to act in a manner consistent with
a fair and orderly market and with the maintenance of public
confidence in the Exchange. Accordingly, appropriate standards
pertaining to dress and conduct on the Options Trading Floor,
including, but not limited to, the following standards shall be
observed:'' (emphasis added).\8\
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\8\ See proposed Rule 902NY(c).
The Exchange is not proposing any other changes to the standards of
dress and conduct expected of ATP Holders when on the Options Trading
Floor.
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 \9\ in general,
and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\10\
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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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4) and (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 by removing an obsolete reference (to the no
longer used NYSE Floor Conduct Policy) and replacing this text with
substantially identical text in the analogous rule on Arca, the
Exchange affiliate options market. Moreover, the Exchange believes that
by providing greater harmonization between Exchange rules and those of
its affiliates that also have trading floors regarding access, conduct
and decorum, the proposed rule change will foster cooperation and
coordination with persons engaged in facilitating transactions in
securities and will remove impediments to and perfect the mechanism of
a free and open market and a national market system.
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 rule change is
not designed to address any competitive issues but rather relates to
the removal of an outdated reference contained in rules regarding
access, conduct and decorum on the Exchange's trading floor and
replacing such reference with language that is consistent with that of
the Exchange's affiliate options exchange--NYSE Arca, thus harmonizing
rules across these exchanges.
[[Page 38226]]
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 \11\ and Rule 19b-4(f)(6) thereunder.\12\
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.\13\
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ 15 U.S.C. 78s(b)(3)(A)(iii). Rule 19b-4(f)(6)(iii) requires
a self-regulatory organization to give the Commission written notice
of its intent to file the proposed rule change 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
Commission notes that the Exchange satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so it can
immediately remove an obsolete reference in Rule 902NY. The Commission
is waiving the 30-day operative delay as the proposal raises no new or
novel issue and would allow the Exchange to immediately update its rule
text to avoid potential investor confusion. Thus, the Commission
believes waiving the operative delay is consistent with the protection
of investors and the public interest. Accordingly, the Commission
hereby waives the operative delay and designates the proposed rule
change operative upon filing.\16\
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 shall institute proceedings under
Section 19(b)(2)(B) of the Act \17\ to determine whether the proposed
rule change should be approved or disapproved.
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\17\ 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#d2a0a7beb7ffb1bdbfbfb7bca6a192a1b7b1fcb5bda4"><span class="__cf_email__" data-cfemail="e89a9d848dc58b8785858d869c9ba89b8d8bc68f879e">[email protected]</span></a>. Please include
File Number SR-NYSEAMER-2022-26 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-NYSEAMER-2022-26. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<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-NYSEAMER-2022-26 and should be submitted
on or before July 18, 2022.
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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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-13593 Filed 6-24-22; 8:45 am]
BILLING CODE P
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