[Federal Register Volume 84, Number 131 (Tuesday, July 9, 2019)]
[Notices]
[Pages 32806-32808]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14625]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86301; File No. SR-NYSENAT-2019-15]
Self-Regulatory Organizations; NYSE National, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 7.37 To Update a Rule Cross Reference
July 3, 2019.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 25, 2019, NYSE National, Inc. (``NYSE National'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the
[[Page 32807]]
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 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 7.37 (Order Execution and
Routing) to update a rule cross reference. The proposed rule change is
available on the Exchange's website at www.nyse.com, 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 7.37 (Order Execution and
Routing) to update a rule cross reference.
Rule 7.37(b)(7) provides that electronically-entered requests to
cancel or reduce in size MOC Orders or LOC orders in New York Stock
Exchange LLC (``NYSE'') listed securities will be rejected if entered
after the times specified in NYSE Rules 123C(3)(b) and Supplementary
Material .40 to that rule. The NYSE recently amended its rules to
support the transition of NYSE-listed securities to the Pillar trading
platform.\3\ Among other things, when NYSE transitions NYSE-listed
securities to the Pillar trading platform, the NYSE Rule 7.35 Series
will govern auctions on the NYSE and NYSE Rule 123C will no longer be
applicable.\4\
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\3\ See Securities Exchange Act Release No. 85962 (May 29,
2019), 84 FR 26188 (June 5, 2019) (SR-NYSE-2019-05) (Approval
Order).
\4\ The NYSE has announced that, subject to rule approvals, the
NYSE will begin transitioning NYSE-listed securities to Pillar on
August 5, 2019, available here: https://www.nyse.com/publicdocs/nyse/markets/nyse/Revised_Pillar_Migration_Timeline.pdf. The NYSE
will publish by separate Trader Update a complete symbol migration
schedule.
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The Exchange proposes to amend Rule 7.37(b)(7)(C) to update the
cross reference to the NYSE rule that will be applicable when NYSE-
listed securities transition to the Pillar trading platform. Instead of
cross referencing NYSE Rule 123C(3)(b) and Supplementary Material .40
to that rule, the Exchange proposes to cross reference NYSE Rule
7.35(a)(7), which defines the term ``Closing Auction Imbalance Freeze
Time.'' As provided for in NYSE Rule 7.35B(f)(2), the NYSE will begin
limiting the circumstances when a MOC or LOC Order may be cancelled or
reduced in size beginning at that Closing Auction Imbalance Freeze
Time. These NYSE Pillar rules are substantively the same as current
NYSE Rule 123C(3)(b) as both sets of rules use the same cut-off time
for when the NYSE begins restricting the circumstances when a MOC or
LOC Order may be cancelled or reduced in size, i.e., ten minutes before
the scheduled end of trading.
The proposed amended rule text will provide as follows (deleted
text in brackets, new text in italics):
For MOC Orders or LOC Orders in NYSE-listed securities, requests
to cancel or reduce in size that are electronically entered after
the ``Closing Auction Imbalance Freeze Time'' specified in NYSE Rule
7.35(a)(7)[the times specified in NYSE Rule 123C(3)(b) and
Supplementary Material .40 to that rule] will be rejected.
The Exchange will implement these proposed rule changes on the same
schedule that the NYSE transitions NYSE-listed securities to the Pillar
trading platform. In other words, the current rule will remain
operative for NYSE-listed securities until such time that they
transition to NYSE's Pillar trading platform.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\5\ in general, and
furthers the objectives of Section 6(b)(5),\6\ 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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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change to amend Rule
7.37 would remove impediments to and perfect the mechanism of a free
and open market and a national market system because it would update
the Exchange's rules to cross reference the NYSE rule that would be
applicable when the NYSE transitions its listed securities to the
Pillar trading platform. The proposed rule change does not propose any
new or novel functionality because the NYSE Pillar rules provide for
the same cut-off time and circumstances for cancelling or reducing in
size MOC or LOC Orders as provided for in NYSE Rule 123C(3)(b) and
Supplementary Material .40 to that rule. The Exchange therefore
believes that the proposed rule change would protect investors and the
public interest, in general, because it is designed to promote
transparency and clarity in Exchange rules.
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 rule change is
not designed to address any competitive issues, but rather, would
update Rule 7.37 to update a cross reference to the NYSE rule that
would be applicable when the NYSE transitions its listed securities to
the Pillar trading platform. The Exchange therefore believes that the
proposed rule change is designed to promote transparency and clarity in
Exchange rules.
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 \7\ and Rule 19b-4(f)(6) thereunder.\8\
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
[[Page 32808]]
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.
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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6).
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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) \9\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\9\ 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
Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NYSENAT-2019-15 on the subject line.
Paper Comments
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-NYSENAT-2019-15. 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 (http://www.sec.gov/rules/sro.shtml).
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 offices 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-NYSENAT-2019-15, and should be submitted
on or before July 30, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-14625 Filed 7-8-19; 8:45 am]
BILLING CODE 8011-01-P