Notice2023-26799
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update Citations to Rule 600(b) of Regulation National Market System
Primary source
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Published
December 7, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 234 (Thursday, December 7, 2023)</title>
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[Federal Register Volume 88, Number 234 (Thursday, December 7, 2023)]
[Notices]
[Pages 85337-85338]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-26799]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99062; File No. SR-NYSEARCA-2023-81]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Update Citations
to Rule 600(b) of Regulation National Market System
December 1, 2023.
Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'' or ``Exchange Act'') \2\ and Rule 19b-4 thereunder,\3\
notice is hereby given that on November 20, 2023, NYSE Arca, Inc.
(``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 Exchange. 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 update citations to Rule 600(b) of
Regulation National Market System (``Regulation NMS'') in Rule 5.3-O
(Criteria for Underlying Securities); Rule 5.4-O (Withdrawal of
Approval of Underlying Securities); Rule 7.31-E (Orders and Modifiers);
Rule 9.5320-E (Prohibition Against Trading Ahead of Customer Orders);
and Rule 11.6810 (Consolidated Audit Trail--Definitions). 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 update citations to Rule 600(b) of
Regulation NMS in Rule 5.3-O (Criteria for Underlying Securities); Rule
5.4-O (Withdrawal of Approval of Underlying Securities); Rule 7.31-E
(Orders and Modifiers); Rule 9.5320-E (Prohibition Against Trading
Ahead of Customer Orders); and Rule 11.6810 (Consolidated Audit Trail--
Definitions).
In 2021, the Securities and Exchange Commission (the
``Commission'') amended Regulation NMS under the Act in connection with
the adoption of the Market Data Infrastructure Rules.\4\ As part of
that initiative, the Commission adopted new definitions in Rule 600(b)
of Regulation NMS and renumbered the remaining definitions, including
the definition of Intermarket Sweep Order (formerly Rule 600(b)(30)),
Listed Option (formerly Rule 600(b)(35)), and NMS Stock (formerly Rule
600(b)(47)).
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\4\ See Securities Exchange Act Release No. 90610, 86 FR 18596
(April 9, 2021) (S7-03-20).
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The Exchange accordingly proposes to update the relevant citations
to Rule 600(b) in its rules as follows.
<bullet> The citation to the definition of Intermarket Sweep Order
in Rule 7.31-E(e)(3) and Rule 9.5320-E, Commentary .04, would be
changed to Rule 600(b)(38).
<bullet> The citation to the definition of NMS Stock in Rule 5.3-O,
Rule 5.4-O, and Rule 11.6810(qq) would be changed to Rule 600(b)(55).
<bullet> The citation to the definition of Listed Option in Rule
11.6810(y) would be changed to Rule 600(b)(43).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b)(5) of the Exchange Act,\5\ 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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\5\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed changes to its rules to
correct citations to Rule 600(b) of Regulation NMS would remove
impediments to and perfect the mechanism of a free and open market and
a national market system because the proposed change is designed to
update an external rule reference. The Exchange believes that member
organizations would benefit from the increased clarity, thereby
reducing potential confusion and ensuring that persons subject to the
Exchange's jurisdiction, regulators, and the investing public can more
easily navigate and understand the Exchange's rules. The Exchange
further believes that the proposed amendment 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
clarity, thereby reducing potential confusion.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with section 6(b)(8) of the Act,\6\ the Exchange
believes that the proposed rule change would not 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 intended to
address competitive issues but rather would modify Exchange rules to
update citations to Rule 600(b) of Reg NMS. Since the proposal does not
substantively modify system functionality or processes on the Exchange,
the proposed changes will not impose any burden on competition.
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\6\ 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
Pursuant to section 19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6)
\8\ thereunder, the Exchange has designated this proposal as one that
effects a change that: (i) does not significantly affect the protection
of investors or the public interest; (ii) does not impose any
significant burden on competition; and
[[Page 85338]]
(iii) by its terms, does not become operative for 30 days after the
date of the filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest.\9\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
\9\ In addition, Rule 19b-4(f)(6) 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 Exchange has satisfied this
requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act normally does not become operative for 30 days after the date of
its filing. However, Rule 19b-4(f)(6)(iii) \10\ permits the Commission
to designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requested
that the Commission waive the 30-day operative delay so that the
proposal may become operative immediately upon filing. The proposed
change raises no novel legal or regulatory issues and modifies the
Exchange's rules to correct citations to Rule 600(b) of Regulation NMS,
which should help prevent confusion and result in increased clarity
within the Exchange's rules. Therefore, the Commission believes that
waiver of the 30-day operative delay is consistent with the protection
of investors and the public interest. Accordingly, the Commission
hereby waives the 30-day operative delay and designates the proposed
rule change operative upon filing.\11\
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\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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.
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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#92e0e7fef7bff1fdfffff7fce6e1d2e1f7f1bcf5fde4"><span class="__cf_email__" data-cfemail="255750494008464a4848404b5156655640460b424a53">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2023-81 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-2023-81. 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="https://www.sec.gov/rules/sro.shtml">https://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
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-NYSEARCA-2023-81 and should
be submitted on or before December 28, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-26799 Filed 12-6-23; 8:45 am]
BILLING CODE 8011-01-P
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