Notice2024-25634
Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving a Proposed Rule Change To Amend NYSE Rule 7.13
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
November 5, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 214 (Tuesday, November 5, 2024)</title>
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[Federal Register Volume 89, Number 214 (Tuesday, November 5, 2024)]
[Notices]
[Pages 87917-87918]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-25634]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101477; File No. SR-NYSE-2024-58]
Self-Regulatory Organizations; New York Stock Exchange LLC; Order
Approving a Proposed Rule Change To Amend NYSE Rule 7.13
October 30, 2024
I. Introduction
On September 12, 2024, New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend NYSE Rule 7.13 to remove references to
the Chair of the Board of Directors of the Exchange (``Board''). The
proposed rule change was published in the Federal Register on September
30, 2024.\3\ The Commission received no comments on the proposal. This
order approves the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 101150 (September
24, 2024), 89 FR 79664.
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II. Description of the Proposal
The Exchange has proposed amending NYSE Rule 7.13 (Trading
Suspensions) to remove references to the Chair of the Board. Under
current NYSE Rule 7.13, the Chair or the chief executive officer of the
Exchange (``CEO''), or the officer designee of the Chair or the CEO,
has the power to suspend trading on any and all securities trading on
the Exchange whenever in his or her
[[Page 87918]]
opinion such suspension would be in the public interest. No such action
would continue longer than two days or as soon thereafter as a quorum
of Directors can be assembled, unless the Board approves the
continuation of such suspension. According to the Exchange, the Chair
has not acted under NYSE Rule 7.13 since the rule was adopted.\4\
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\4\ Id. at 79665.
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Pursuant to the proposed rule change, the CEO or the officer
designee of the CEO would continue to have the power to suspend trading
in any and all securities trading on the Exchange whenever in his or
her opinion such suspension would be in the public interest. Further,
the requirement that no such action continue longer than two days or as
soon thereafter as a quorum of Directors can be assembled, unless the
Board approves the continuation of such suspension, would remain.
III. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange.\5\
In particular, the Commission finds that the proposed rule change is
consistent with Section 6(b) of the Act,\6\ in general, and furthers
the objectives of Section 6(b)(5) of the Act,\7\ which requires, among
other things, that the rules of a national securities exchange be
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 regulating, clearing,
settling, processing information with respect to, and 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\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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The Commission finds that the proposed rule change is consistent
with the Act in that it removes references to the Chair, who is
currently not required to act under NYSE Rule 7.13, while still
preserving the ability of the CEO or his or her officer designee the
authority to act under the rule when it would be in the public
interest. As noted above, the Chair has not acted under NYSE Rule 7.13
since the rule was adopted and therefore, the proposed rule change more
accurately reflects Exchange practice. Moreover, the Commission notes
that the Chair and the Board would continue to have an oversight role,
since the requirement would remain that no suspension of trading
continue longer than two days, or as soon thereafter as a quorum of
Directors can be assembled, unless the Board approves the continuation
of such suspension.
Based on the foregoing, the Commission finds that the proposed rule
change is consistent with the Act.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (SR-NYSE-2024-58) be, and hereby
is, approved.
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\8\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-25634 Filed 11-4-24; 8:45 am]
BILLING CODE 8011-01-P
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