Notice2024-26418
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To Adopt Temporary Rule 7.34-E(T) and Revise Rules 1.1 and 7.34-E To Lengthen Current Extended Trading Sessions
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 14, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 220 (Thursday, November 14, 2024)</title>
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[Federal Register Volume 89, Number 220 (Thursday, November 14, 2024)]
[Notices]
[Pages 90143-90145]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-26418]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101559; File No. SR-NYSEARCA-2024-89]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change To Adopt Temporary Rule 7.34-E(T) and Revise
Rules 1.1 and 7.34-E To Lengthen Current Extended Trading Sessions
November 7, 2024
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on October 25, 2024, NYSE Arca, Inc. (``NYSE Arca'' 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 adopt temporary Rule 7.34-E(T) and revise
Rules 1.1 and 7.34-E to permit the Exchange to lengthen the current
extended trading sessions. 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 adopt temporary Rule 7.34-E(T) and revise
Rules 1.1 (Definitions) and 7.34-E (Trading Sessions) to permit the
Exchange to lengthen current extended trading hours for NMS stocks to
22 hours a day, 5 days a week. The Exchange also proposes certain
technical, conforming changes to Rule 5.1-E(a) (General Provisions and
Unlisted Trading Privileges) and Commentary .08 to Rule 9.5320-E
(Prohibition Against Trading Ahead of Customer Orders).
Background and Proposed Rule Change
The Exchange currently offers three trading sessions each day the
Exchange is open for business unless the Exchange determines otherwise,
as follows.
First, the Exchange's Early Trading Session begins at 4:00 a.m.
Eastern Time (``E.T.'') and concludes at the commencement of the Core
Trading Session.\4\ The second or Core Trading Session begins for each
security at 9:30 a.m. E.T. and ends at the conclusion of Core Trading
Hours or the Core Closing Auction, whichever comes later.\5\ The final
session is the Late Trading Session, which begins following the
conclusion of the Core Trading Session and concludes at 8:00 p.m. E.T.
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\4\ See Rule 7.34-E(a)(1). The Exchange begins accepting orders
90 minutes before the Early Trading Session begins. See id.
\5\ See Rule 7.34-E(a)(2). ``Core Trading Hours'' means the
hours of 9:30 a.m. E.T. through 4:00 p.m. E.T. or such other hours
as may be determined by the Exchange from time to time. See Rule
1.1.
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In order to facilitate the trading of NMS securities on the
Exchange for 22 hours a day, 5 days a week, as recently announced,\6\
the Exchange proposes to adopt a temporary Rule 7.34-E titled ``7.34-
E(T).'' The proposed temporary rule would be identical to current Rule
7.34-E with two exceptions. First, the beginning and ending times of
the Early and Late Trading Sessions, respectively, would be changed to
reflect the proposed enlarged extended trading hours. Second, the
Exchange would shorten the time it will begin accepting orders before
commencement of the Early Trading Session from 90 minutes to 30
minutes. The current version of Rule 7.34-E would remain operative
until the Exchange announces by Trader Update a transition to the new
proposed Extended Trading Hours, which may depend on the effectiveness
of additional, related rule filings as well as market infrastructure
changes.\7\ Once the proposed enlarged extended trading hours are
operative, the Exchange would file a proposed rule change to delete the
current version of Rule 7.34-E and the ``T'' designation in Rule 7.34-
E(T).
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\6\ See ``The New York Stock Exchange Plans to Extend Weekday
Trading on its NYSE Arca Equities Exchange to 22 Hours a Day,''
October 25, 2024 (the ``Press Release''), available at <a href="https://ir.theice.com/press/news-details/2024/The-New-York-Stock-Exchange-Plans-to-Extend-Weekday-Trading-on-its-NYSE-Arca-Equities-Exchange-to-22-Hours-a-Day/default.aspx">https://ir.theice.com/press/news-details/2024/The-New-York-Stock-Exchange-Plans-to-Extend-Weekday-Trading-on-its-NYSE-Arca-Equities-Exchange-to-22-Hours-a-Day/default.aspx</a>.
\7\ As noted in the Press Release, the Exchange will be seeking
support for the proposed extended hours trading from the U.S.
securities information processors. See id.
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Further, the Exchange would add the following legend to current
Rule 7.34-E (new text italicized):
This version of Rule 7.34-E will remain operative until the
Exchange announces by Trader Update the expansion of Extended Trading
Hours to encompass the hours set forth in Rule 7.34-E(T)(a). The
Exchange will then file a proposed rule change to delete this version
of Rule 7.34-E and preamble, and delete the ``T '' designation in Rule
7.34-E(T).
The Exchange would also revise current Rule 1.1 to add a definition
of Extended Hours Trading to mean trading during the Early Trading
Session and the Late Trading Session. The term is used without
capitalization in current Rule 7.34-E(d) describing required customer
disclosures. The Exchange proposes to use the proposed definition in
proposed Rule 7.34-E(T)(d) and current Rule 7.34-E(d), with the
exception of subsection (d)(4) of the current and proposed temporary
rules, which use the phrase generically. The Exchange believes the
proposal would add transparency and clarity to the Exchange's rules.
The Exchange would also make certain technical, conforming changes
to Rule 5.1-E(a) and Commentary .08 to Rule 9.5320-E.
[[Page 90144]]
First, the Exchange would replace obsolete references to the
``Opening session'' and ``Late Trading Session'' and the associated
session start and end times in Pacific Time in Rule 5.1-E(a)(2)(i) with
the defined term ``Extended Hours Trading.'' The Exchange would also
delete a stray period at the end of the rule heading. The proposed
changes would add transparency and clarity to the Exchange's rules.
Finally, the Exchange would replace the obsolete reference to
``6:30 a.m. to 1:00 p.m. Pacific Standard Time'' in Commentary .08 to
Rule 9.5320-E with ``the Core Trading Session.'' The proposed change
would also add transparency and clarity to the Exchange's rules.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(5) of the Act,\8\ 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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\8\ 15 U.S.C. 78f(b)(5).
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Generally, the Exchange believes that the proposal, including the
proposed temporary rule to support longer extended hours trading, would
remove impediments to and perfect the mechanism of a free and open
market and a national market system by providing a rules framework to
support the Exchange's introduction of trading on the Exchange for 22
hours a day, 5 days a week, which the Exchange believes will increase
market accessibility, promote capital formation, and facilitate
portfolio management. Further, the Exchange believes that adopting a
temporary rule that would only be operative upon transition to the new
proposed Extended Trading Hours, which may depend on the effectiveness
of additional, related rule filings as well as market infrastructure
changes, and adding a legend to the current version of Rule 7.34-E
specifying that the current rule will remain operative until that time,
would promote transparency in Exchange rules and add clarity as to
which rules are operative and when, thereby reducing potential
confusion, and making the Exchange's rules easier to navigate.
The Exchange believes that adding a definition of Extended Hours
Trading to Rule 1.1 would remove impediments to and perfect the
mechanism of a free and open market and national market system by
adding clarity to the Exchange's rules through the introduction of a
definition that can be utilized immediately and that would not need to
be updated once the Exchange migrates to 22 hour trading, 5 days a
week. The Exchange further believes that eliminating obsolete legacy
material from Rule 5.1-E(a) and Commentary .08 to Rule 9.5320-E
similarly removes impediments to and perfects the mechanism of a free
and open market by removing confusion that may result from having
obsolete material in the Exchange's rulebook. The Exchange believes
that eliminating such obsolete material 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
transparency, thereby reducing potential confusion.
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 change is
designed to propose rule changes to support trading on the Exchange for
22 hours a day, 5 days a week. The Exchange operates in a highly
competitive environment in which unaffiliated exchange competitors and
new entrants could compete to offer extended hours trading of similar
duration, and the proposal would therefore enable the Exchange to
compete on a more level playing field with these competitors.
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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission shall:
(A) by order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
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#5d2f283138703e3230303833292e1d2e383e733a322b"><span class="__cf_email__" data-cfemail="0775726b622a64686a6a626973744774626429606871">[email protected]</span></a>. Please include
File Number SR-NYSEARCA-2024-89 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-2024-89. 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-NYSEARCA-2024-89 and
[[Page 90145]]
should be submitted on or before December 5, 2024.
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. 2024-26418 Filed 11-13-24; 8:45 am]
BILLING CODE 8011-01-P
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