Notice2025-15620
Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend Rule 7.37E
Primary source
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Published
August 18, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 157 (Monday, August 18, 2025)</title>
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[Federal Register Volume 90, Number 157 (Monday, August 18, 2025)]
[Notices]
[Pages 40132-40134]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-15620]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103694; File No. SR-NYSEAMER-2025-49]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Change To Amend Rule
7.37E
August 13, 2025.
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 August 6, 2025, 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, II,
and III 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 7.37E to provide for order
routing to Away Markets that are not displaying protected quotations.
The proposed rule change is available on the Exchange's website at
<a href="http://www.nyse.com">www.nyse.com</a> and at the principal office of the Exchange.
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 7.37E (Order Execution and
Routing) to provide for optional order routing to Away Markets that are
not displaying protected quotations.
Rule 7.37E(b) and the subparagraphs thereunder describe how the
Exchange routes orders to Away Markets. The Exchange proposes to amend
Rule 7.37E(b)(3), which is currently designated as ``Reserved,'' to
provide that orders eligible to route will be routed to all available
Away Markets unless the order includes an instruction to bypass Away
Markets that are not displaying protected quotations.\4\ This proposed
change would allow eligible orders to be routed to Away Markets that
are not displaying protected quotations, except for those with an
instruction to bypass such destinations when routing, thereby
facilitating optional routing to additional destinations at ETP
Holders' preference. Proposed Rule 7.37E(b)(3) is based on NYSE Arca,
Inc. (``NYSE Arca'') Rule 7.37-E(b)(3), NYSE National, Inc. (``NYSE
National'') Rule 7.37(b)(3), and NYSE Texas, Inc. (``NYSE Texas'') Rule
7.37(b)(3) without any changes.
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\4\ The Exchange also proposes that Rule 7.37E(b)(3) would
provide that orders eligible to route would not route to all
available Away Markets if designated with a routing strategy
pursuant to Rule 7.37(b)(9) because such routing strategies may
provide for routing to specific destinations only.
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The Exchange also proposes to add new subparagraph (1) under Rule
7.37E(d), relating to the Exchange's use of data feeds for the
handling, execution, and routing of orders, as well
[[Page 40133]]
as for regulatory compliance.\5\ Proposed Rule 7.37E(d)(1) would
provide that the Exchange receives data feeds directly from broker
dealers for purposes of routing interest to Away Markets that are not
displaying protected quotations. This proposed change would ensure that
Rule 7.37E(d) accurately and comprehensively reflects the Exchange's
use of data feeds for order handling, execution, and routing (as well
as for regulatory compliance) and would promote transparency in the
Exchange's rules with respect to routing to Away Markets that are not
displaying protected quotations. Proposed Rule 7.37E(d)(1) is based on
NYSE Arca Rule 7.37-E(d)(1), NYSE National Rule 7.37(d)(1), and NYSE
Texas Rule 7.37(d)(1) without any changes.
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\5\ The Exchange also proposes a non-substantive, conforming
change to renumber current Rule 7.37E(d)(1) as Rule 7.37E(d)(2).
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Subject to effectiveness of this proposed rule change, the Exchange
will implement this change no later than in the fourth quarter of 2025
and announce the implementation date by Trader Update.
2. Statutory Basis
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),\7\
in particular, because 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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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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The Exchange believes the proposed change would 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
protect investors and the public interest by providing for optional
routing functionality to Away Markets that are not displaying protected
quotations. Specifically, proposed Rule 7.37E(b)(3) would facilitate
routing to Away Markets that are not displaying protected quotations
for eligible orders that do not have an instruction to bypass such
destinations. Proposed Rule 7.37E(d)(1) would promote clarity and
transparency in the Exchange's rules regarding its use of data feeds
for order handling, execution, and routing, as well as for regulatory
compliance, with respect to routing to Away Markets that are not
displaying protected quotations. The Exchange believes that the
proposed change would 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 protect investors and the
public interest because it would promote additional trading
opportunities for ETP Holders and afford greater flexibility to market
participants through optional routing functionality to additional
trading venues, thereby encouraging competition between the Exchange
and other equity exchanges. The Exchange also believes that the
proposed change would 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 protect investors and the
public interest by aligning the Exchange's rules with those of its
affiliated equities exchanges, NYSE Arca, NYSE National, and NYSE
Texas.
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. As noted above, the Exchange
believes that the proposed change could instead encourage competition
by making additional optional routing destinations available for orders
eligible to be routed away from the Exchanges, as well as by promoting
additional trading opportunities for ETP Holders.
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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
Because the foregoing 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 for
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, it has become effective pursuant to
Section 19(b)(3)(A)(iii) of the Act \10\ and subparagraph (f)(6) of
Rule 19b-4 thereunder.\11\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6). In addition, 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, along
with a brief description and text of 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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At any time within 60 days of the filing of such 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#5d2f283138703e3230303833292e1d2e383e733a322b"><span class="__cf_email__" data-cfemail="a5d7d0c9c088c6cac8c8c0cbd1d6e5d6c0c68bc2cad3">[email protected]</span></a>. Please include
file number SR-NYSEAMER-2025-49 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-2025-49. 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 filing will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable
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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-NYSEAMER-2025-49 and
should be submitted on or before September 8, 2025.
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. 2025-15620 Filed 8-15-25; 8:45 am]
BILLING CODE 8011-01-P
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