Notice2025-16699
Self-Regulatory Organizations; NYSE Texas, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7.31(d)(1)(A)
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
September 2, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 167 (Tuesday, September 2, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 167 (Tuesday, September 2, 2025)]
[Notices]
[Pages 42476-42478]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16699]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103788; File No. SR-NYSETEX-2025-29]
Self-Regulatory Organizations; NYSE Texas, Inc.; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Rule
7.31(d)(1)(A)
August 27, 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 22, 2025, the NYSE Texas, Inc. (``NYSE Texas'' or
``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 self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 7.31(d)(1)(A) to permit the
displayed quantity of a Reserve Order to also be entered in a mixed lot
sized quantity. 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 7.31(d)(1)(A) to permit the
displayed quantity of a Reserve Order to also be entered in a mixed lot
sized quantity. The proposed change would harmonize Reserve Order
functionality with that of other markets that permit the displayed
quantity to be either a round or mixed lot.
Background and Proposed Rule Change
Rule 7.31(d)(1) defines a Reserve Order as a Limit or Inside Limit
Order with a quantity of the size displayed and with a reserve quantity
of the size that is undisplayed. Rule 7.31(d)(1)(A) provides that on
entry, the displayed quantity of a Reserve Order must be entered in
round lots. The displayed portion of a Reserve Order is replenished
when the displayed quantity is decremented to below a round lot.
Rule 7.5 defines a ``round lot'' as 100 shares, unless specified by
a primary listing market to be fewer than 100 shares.\4\ Under Rule
7.5, any amount less than a round lot constitutes an ``odd lot,'' and
any amount greater than a round lot that is not a multiple of a round
lot constitutes a ``mixed lot.''
---------------------------------------------------------------------------
\4\ The Exchange notes that as part of the amendments to certain
Regulation NMS (``Reg NMS'') rules in 2024, the Commission approved
amendments to Reg NMS Rule 603(b) to amend the odd-lot and round lot
definitions adopted in 2020 under the Market Data Infrastructure
(``MDI'') Rules and accelerate the compliance date for the amended
definitions. See Exchange Act Release No. 101070 (Sept. 18, 2024),
89 FR 81620, 81773 (Oct. 08, 2024) (File No. S7-30-22) (``Release
No. 101070''); Exchange Act Release No. 90610 (Dec. 9, 2020), 86 FR
18596 (Apr. 9, 2021) (File No. S7-03-20). Rule 600(b)(93) under
Regulation NMS defines a round lot and provides that for NMS stocks
that have an average closing price on the primary listing exchange
during the prior evaluation period of: (1) $250.00 or less per
share, a round lot is 100 shares; (2) $250.01 to $1,000.00 per
share, a round lot is 40 shares; (3) $1,000.01 to $10,000.00 per
share, a round lot is 10 shares; and (4) $10,000.01 or more per
share, a round lot is 1 share. See 17 CFR 242.600(b)(93). The round
lot definition will be implemented on the first business day of
November 2025. See Release No. 101070, 89 FR at 81666. The Exchange
will be submitting an amendment to Rule 7.5 shortly to reflect the
pending changes.
---------------------------------------------------------------------------
[[Page 42477]]
Other markets that have adopted a ``reserve'' order type permit
submission of a reserve order with either a round or mixed lot sized
displayed quantity.\5\
---------------------------------------------------------------------------
\5\ See, e.g., Investors Exchange Rule 11.190(b)(2).
---------------------------------------------------------------------------
The Exchange proposes to amend Rule 7.31(d)(1)(A) to allow the
displayed quantity of a Reserve Order to be entered in a mixed lot
sized quantity in addition to a round lot quantity. The Exchange does
not otherwise propose any changes to the Reserve Order functionality.
As proposed, once a Reserve Order with a displayed quantity meeting the
definition of a mixed or round lot is accepted, the Reserve Order
functionality would operate in the same way as it does currently.
The Exchange believes that permitting the displayed quantity of a
Reserve Order to be entered in a mixed lot sized quantity in addition
to a round lot quantity would provide the same flexibility in
designating the displayed quantity of a Reserve Order as currently
exists on other marketplaces and is therefore not controversial and
eligible for immediate effectiveness. The Exchange also believes that
the proposal would incentivize the posting of more displayed liquidity
on the Exchange and provide a corresponding opportunity for market
participants to interact with that displayed liquidity.
The Exchange will announce the implementation date of the proposed
change by Trader Update, which in no event would be later than December
31, 2025.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(5) of the Exchange Act,\6\ 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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Specifically, the Exchange believes that providing that the
displayed quantity of a Reserve Order may be entered in a mixed lot
size in addition to a round lot is consistent with the protection of
investors and the public interest because it is designed to provide
more flexibility and opportunities for member organizations to add
displayed liquidity to the Exchange. The Exchange believes that the
proposed rule change will attract additional displayed liquidity to the
Exchange and, to the extent it is successful in doing so, will benefit
all market participants, thereby supporting the purposes of the Act 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. In addition, as noted above, the
proposal would not otherwise alter Reserve Order functionality.
Moreover, the proposal to permit entry of a mixed lot sized displayed
quantity for a Reserve Order is consistent with the rules of other
equities exchanges that offer a reserve order,\7\ and thus the Exchange
does not believe that the proposed rule change raises any new or novel
issues not previously considered by the Commission.
---------------------------------------------------------------------------
\7\ See note 5, supra.
---------------------------------------------------------------------------
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. On the contrary, the
proposal is designed to enhance the Exchange's competitiveness by
enabling it to offer reserve order functionality substantially similar
to that offered by other equity exchanges. As discussed above, the
proposal is designed to incentivize the entry of additional liquidity
providing orders on the Exchange by offering the flexibility of using a
mixed lot displayed quantity. The Exchange believes that the proposed
rule change will enhance its ability to compete with other exchanges
that already offer this flexibility and thereby attract more Reserve
Orders to the Exchange, to the benefit of all market participants. The
Exchange also does not believe that the proposed rule change will
impose any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. All member
organizations will remain eligible to use the Reserve Order on an equal
and non-discriminatory basis. Moreover, the proposal would provide
potential benefits to all member organizations to the extent that there
is more liquidity available on the Exchange as a result of the
increased use of Reserve Orders.
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 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\10\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 17 CFR 240.19b-4(f)(6)(iii). 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.
---------------------------------------------------------------------------
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) \11\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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
[[Page 42478]]
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#acded9c0c981cfc3c1c1c9c2d8dfecdfc9cf82cbc3da"><span class="__cf_email__" data-cfemail="e597908980c8868a8888808b9196a5968086cb828a93">[email protected]</span></a>. Please include
file number SR-NYSETEX-2025-29 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-NYSETEX-2025-29. 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 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-NYSETEX-2025-29 and should be submitted
on or before September 23, 2025
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-16699 Filed 8-29-25; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on September 2, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.