Self-Regulatory Organizations; NYSE American LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Amend Rules 903G and 906G

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<title>Federal Register, Volume 91 Issue 192 (Tuesday, October 6, 2026)</title>
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[Federal Register Volume 91, Number 192 (Tuesday, October 6, 2026)]
[Notices]
[Pages 63623-63624]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20405]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106563; File No. SR-NYSEAMER-2026-54]


Self-Regulatory Organizations; NYSE American LLC; Order 
Instituting Proceedings To Determine Whether To Approve or Disapprove a 
Proposed Rule Change To Amend Rules 903G and 906G

October 1, 2026.

I. Introduction

    On June 29, 2026, NYSE American LLC (``Exchange'' or ``NYSE 
American'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) \1\ of the Securities 
Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ a 
proposed rule change to permit cash settlement for up to 50 non-ETF 
Flexible Exchange (``FLEX'') Equity Options. The proposed rule change 
was published for comment in the Federal Register on July 7, 2026.\4\ 
On August 19, 2026, pursuant to Section 19(b)(2)(A) of the Act,\5\ the 
Commission designated a longer period within which to take action on 
the proposed rule change.\6\ The Commission is instituting proceedings 
pursuant to Section 19(b)(2)(B) of the Act \7\ to determine whether to 
approve or disapprove the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
    \4\ See Securities Exchange Act Release No. 105831 (July 1, 
2026), 91 FR 41696 (``Notice'').
    \5\ 15 U.S.C. 78s(b)(2)(A).
    \6\ See Securities Exchange Act Release No. 106165, 91 FR 54778 
(August 24, 2026). The Commission designated October 5, 2026, as the 
date by which the Commission shall approve or disapprove, or 
institute proceedings to determine whether to disapprove, the 
proposed rule change.
    \7\ 15 U.S.C. 78s(b)(2)(B).
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II. Description of the Proposed Rule Change

    As described more fully in the Notice,\8\ the Exchange proposes to: 
(i) amend paragraph (c)(3)(ii) of Rule 903G to permit cash settlement 
for up to 50 non-ETF FLEX Equity Options whose underlying security 
meets the same criteria that currently must be met to qualify for the 
cash settlement program for ETF FLEX Equity Options; (ii) amend 
paragraph (c)(3)(ii)(A) of Rule 903G to provide that, where more than 
50 underlying ETFs or 50 underlying non-ETFs qualify, the Exchange will 
select the 50 qualifying securities with the highest average daily 
notional value, replacing the current usage of highest average daily 
share volume; (iii) and correspondingly revise Rule 906G, which 
addresses FLEX Equity Option position limits.
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    \8\ See Notice, supra note 4.
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III. Proceedings To Determine Whether To Approve or Disapprove SR-
NYSEAMER-2026-54 and Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section 
19(b)(2)(B) of the Act \9\ to determine whether the Exchange's proposed 
rule change should be approved or disapproved. Institution of 
proceedings is appropriate at this time in view of the legal and policy 
issues raised by the proposed rule change. Institution of proceedings 
does not indicate that the Commission has reached any conclusions with 
respect to any of the issues involved. Rather, as described below, the 
Commission seeks and encourages interested persons to provide 
additional comment on the proposed rule change to inform the

[[Page 63624]]

Commission's analysis of whether to approve or disapprove the proposed 
rule change.
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    \9\ 15 U.S.C. 78s(b)(2)(B).
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    Pursuant to Section 19(b)(2)(B) of the Act,\10\ the Commission is 
providing notice of the grounds for disapproval under consideration. 
The Commission is instituting proceedings to allow for additional 
analysis of, and input from commenters with respect to, the proposed 
rule change's consistency with the Act and, in particular, Section 
6(b)(5) of the Act,\11\ 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 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.
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    \10\ See id.
    \11\ 15 U.S.C. 78f(b)(5).
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    The Commission asks that commenters address the sufficiency of the 
Exchange's statements in support of the proposal, which are set forth 
in the Notice,\12\ in addition to any other comments they may wish to 
submit about the proposed rule change. By way of example, the 
Commission recently granted exemptive relief--to permit p.m. settlement 
for cash-settled security futures--that was conditioned on the 
collection and provision of certain data elements.\13\ Commenters may 
submit comments regarding the potential utility of the same or similar 
data collection commitments here, in addition to any other comments 
they may wish to submit about the proposed rule change.
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    \12\ See Notice, supra note 4.
    \13\ See Securities Exchange Act Release No. 105882 (July 10, 
2026), 91 FR 43410 (July 15, 2026).
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IV. Procedure: Request for Written Comments

    The Commission requests that interested persons provide written 
submissions of their views, data, and arguments with respect to the 
concerns identified above, including the issues raised by commenters, 
as well as any other concerns they may have with the proposal. In 
particular, the Commission invites the written views of interested 
persons concerning whether the proposed rule change is consistent with 
Section 6(b)(5), or any other provision of the Act, or the rules and 
regulations thereunder. Although there do not appear to be any issues 
relevant to approval or disapproval that would be facilitated by an 
oral presentation of views, data, and arguments, the Commission will 
consider, pursuant to Rule 19b-4 under the Act,\14\ any request for an 
opportunity to make an oral presentation.\15\
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    \14\ 17 CFR 240.19b-4.
    \15\ Section 19(b)(2) of the Act, as amended by the Securities 
Act Amendments of 1975, Public Law 94-29 (June 4, 1975), grants to 
the Commission flexibility to determine what type of proceeding--
either oral or notice and opportunity for written comments--is 
appropriate for consideration of a particular proposal by a self-
regulatory organization. See Securities Acts Amendments of 1975, 
Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75, 
94th Cong., 1st Sess. 30 (1975).
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    Interested persons are invited to submit written data, views, and 
arguments regarding whether the proposed rule change should be approved 
or disapproved by October 27, 2026. Any person who wishes to file a 
rebuttal to any other person's submission must file that rebuttal by 
November 10, 2026.
    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#a5d7d0c9c088c6cac8c8c0cbd1d6e5d6c0c68bc2cad3"><span class="__cf_email__" data-cfemail="b6c4c3dad39bd5d9dbdbd3d8c2c5f6c5d3d598d1d9c0">[email&#160;protected]</span></a>. Please include 
file number SR-NYSEAMER-2026-54 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-2026-54. 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-NYSEAMER-2026-54 and 
should be submitted on or before October 27, 2026. Rebuttal comments 
should be submitted by November 10, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(57).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-20405 Filed 10-5-26; 8:45 am]
BILLING CODE 8011-01-P


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