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Notice2024-04168

Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Price List

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Published
February 29, 2024

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 89 Issue 41 (Thursday, February 29, 2024)</title>
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[Federal Register Volume 89, Number 41 (Thursday, February 29, 2024)]
[Notices]
[Pages 14909-14911]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-04168]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99592; File No. SR-NYSE-2024-07]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Its Price List

February 23, 2024.
    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 February 12, 2024, 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 
and II below, which Items have been prepared by the self-regulatory

[[Page 14910]]

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 its Price List to eliminate obsolete 
Crossing Session pricing. 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to eliminate obsolete Crossing 
Session I (``CS I'') and Crossing Session II (``CS II'') pricing.
    The Exchange proposes to implement these changes to its Price List 
effective February 12, 2024.
Background
    CS I permitted execution, at the Exchange's closing price, of 
single-stock, single-sided closing price orders and crosses of single-
stock, closing price buy and sell orders. The Exchange did not charge 
for CS I executions. CS I was eliminated in 2009.\4\
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    \4\ In 2009, in connection with certain technology upgrades and 
the launch of NYSE MatchPoint, an electronic equity-trading facility 
that was later decommissioned, the Exchange eliminated all CS I 
order types and migrated that business to NYSE MatchPoint. See 
Securities Exchange Act Release No. 59570 (March 12, 2009), 74 FR 
11800, 11800-01 (March 19, 2009) (SR-NYSE-2009-28) (Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change Amending NYSE 
Rules 13, 902, 903, 904, 905 and Rule 906 To Eliminate Certain Order 
Types From the Off-Hours Trading Facility). Aggregate-priced coupled 
orders were retained in Rules 900-907, which were the rules 
governing the Exchange's Off-Hours Trading Facility at the time. As 
noted below, aggregate-priced coupled orders were entered and 
executed in CS II. See id., at 11801, n. 8. Rules 900-907 were 
deleted in 2022 and replaced by current NYSE Rule 7.39. See 
Securities Exchange Act Release No. 95498 (August 12, 2022), 87 FR 
50906, 50906-07 (August 18, 2022) (SR-NYSE-2022-37) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Adopt 
a New Rule 7.39 and Delete Current Rules 900-907). See also notes 4 
& 5, infra.
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    CS II ran on the Exchange from 4:00 p.m. to 6:30 p.m. Eastern Time 
and handled member organization crosses of baskets of securities of 
aggregate-priced buy and sell orders.\5\ Currently, the Exchange 
charges a fee of $0.0004 per share (both sides) for executions in CS 
II. Fees for executions in CS II are capped at $300,000 per month per 
member organization. In 2023, the Exchange determined to cease offering 
CS II and decommissioned the Off-Hours Trading Facility, effective 
January 31, 2024. The Exchange announced the implementation date by 
Trader Update.\6\
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    \5\ See NYSE Rule 7.39.
    \6\ On June 30, 2023, the Exchange announced that it would cease 
offering CS II and decommission the Off-Hours Trading Facility on 
December 29, 2023. On August 3, 2023, the Exchange announced that it 
would cease offering CS II and decommission the Off-Hours Trading 
Facility on January 31, 2024. In connection with the effective 
decommissioning of the Off-Hours Trading Facility, the Exchange 
recently filed with the Commission to delete Rule 7.39. See SR-NYSE-
2024-06. See generally note 4, supra.
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Proposed Rule Change
    The Exchange proposes to delete CS I and II fee pricing in its 
entirety. Both crossing sessions are no longer operative. As noted 
above, CS I was eliminated in 2009 and CS II was decommissioned at the 
end of January 2024. Since the Exchange no longer offers after hours 
crossing sessions, the Exchange proposes to delete the section of the 
Price List titled ``Crossing Sessions I and II'' in its entirety as 
obsolete.
    The proposed changes are not otherwise intended to address any 
other issues, and the Exchange is not aware of any problems that member 
organizations would have in complying with the proposed change.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\7\ in general, and furthers the 
objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\8\ in 
particular, because it provides for the equitable allocation of 
reasonable dues, fees, and other charges among its members, issuers and 
other persons using its facilities and does not unfairly discriminate 
between customers, issuers, brokers or dealers.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) & (5).
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The Proposed Change Is Reasonable
    The Exchange believes that the proposed elimination of crossing 
session fees is reasonable because the fees are no longer being 
charged. The Exchange believes it is reasonable to delete obsolete fees 
from the Price List because it would streamline the Price List and 
reduce confusion as to which fees are applicable on the Exchange. The 
Exchange believes that amending the Price List to remove fees that are 
no longer charged would promote the protection of investors and the 
public interest because it would promote clarity and transparency in 
the Price List, thereby enabling market participants to navigate the 
Exchange's Price List more easily.
The Proposal Is an Equitable Allocation of Fees
    The Exchange believes the proposal equitably allocates fees among 
its market participants because the obsolete crossing session fees that 
the Exchange proposes to eliminate would be eliminated in their 
entirety, and would no longer be available to any member organization 
in any form. Similarly, the Exchange believes the proposal equitably 
allocates fees among its market participants because elimination of 
obsolete fees would apply to all similarly-situated member 
organizations on an equal basis. All such member organizations would 
continue to be subject to the same fee structure, and access to the 
Exchange's market would continue to be offered on fair and 
nondiscriminatory terms.
The Proposal Is Not Unfairly Discriminatory
    The Exchange believes that the proposal is not unfairly 
discriminatory because it neither targets nor will it have a disparate 
impact on any particular category of market participant. The Exchange 
believes that the proposal is not unfairly discriminatory because the 
proposed elimination of the obsolete fees would affect all similarly-
situated market participants on an equal and non-discriminatory basis. 
The Exchange believes that eliminating obsolete fees would no longer be 
available to any member organization on an equal basis. The Exchange 
also believes that the proposed change would protect investors and the 
public interest because the deletion of obsolete fees would make the 
Price List more accessible and transparent and facilitate market 
participants' understanding of

[[Page 14911]]

the fees charged for services currently offered by the Exchange.
    Finally, the Exchange believes that it is subject to significant 
competitive forces, as described below in the Exchange's statement 
regarding the burden on competition.
    For the foregoing reasons, the Exchange believes that the proposal 
is consistent with the Act.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\9\ 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. Instead, as discussed above, the proposal relates 
solely to elimination of an obsolete crossing session fees and, as 
such, would not have any impact on intra- or inter-market competition 
because the proposed change is solely designed to accurately reflect 
the services that the Exchange currently offers, thereby adding clarity 
to the Price List.
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    \9\ 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

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \10\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \11\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(2).
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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) \12\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \12\ 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="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#8ffdfae3eaa2ece0e2e2eae1fbfccffceaeca1e8e0f9"><span class="__cf_email__" data-cfemail="354740595018565a5858505b4146754650561b525a43">[email&#160;protected]</span></a>. Please include 
file number SR-NYSE-2024-07 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-2024-07. 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-NYSE-2024-07 and should be 
submitted on or before March 21, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-04168 Filed 2-28-24; 8:45 am]
BILLING CODE 8011-01-P


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