[Federal Register Volume 84, Number 223 (Tuesday, November 19, 2019)]
[Notices]
[Pages 63917-63919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24982]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87519; File No. SR-NYSEARCA-2019-80]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.31-
E To Delete Cross Orders

November 13, 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 November 1, 2019, NYSE Arca, Inc. (``NYSE Arca'' or ``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 
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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[[Page 63918]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 7.31-E (Orders and Modifiers) 
to delete Cross Orders from its rules and make other conforming 
changes. 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 purpose of the proposed rule change is to amend the Exchange's 
rules to delete Cross Orders.
    As defined in Rule 7.31-E(g), a Cross Order is a two-sided order 
with instructions to match the identified buy-side with the identified 
sell-side at a specified price (the ``cross price''). The Exchange 
offers one type of Cross Order, the Limit IOC Cross Order. As defined 
in Rule 7.31-E(g)(1), a Limit IOC Cross Order is a Cross Order that 
must trade in full at its cross price, will not route, and will cancel 
at the time of order entry if the cross price is not between the BBO or 
would trade through the PBBO.
    Due to a lack of demand for Cross Orders, the Exchange proposes to 
discontinue supporting Cross Orders. Specifically, in the last three 
months, the Exchange has not received any Cross Orders. Accordingly, 
the Exchange proposes to delete the definition of Cross Order from Rule 
7.31-E(g), as well as the references to Cross Orders in Rules 7.10-
E(e)(1), 7.11-E(a)(5)(E), 7.16-E(f)(5)(H), 7.18-E(c)(5), 7.34-
E(c)(1)(B), 7.34-E(c)(1)(C), and 7.34-E(c)(2)(C). The Exchange proposes 
to designate Rules 7.31-E(g), 7.11-E(a)(5)(E), and 7.16-E(f)(5)(H) as 
Reserved and proposes to revise Rules 7.10-E(e)(1), 7.18-E(c)(5), 7.34-
E(c)(1)(B), 7.34-E(c)(1)(C), and 7.34-E(c)(2)(C) to delete the 
references to Cross Orders. Subject to effectiveness of this proposed 
rule change, the Exchange will announce the implementation date of 
these changes through a Trader Update, which the Exchange anticipates 
will be in November 2019.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the requirements of Section 6(b) of the Act,\3\ in general, and Section 
6(b)(5) of the Act,\4\ in particular, in that it is designed to remove 
impediments to and perfect the mechanism of a free and open market, to 
promote just and equitable principles of trade, and, in general, to 
protect investors and the public interest. Specifically, the Exchange 
believes that the proposed rule change would remove impediments to and 
perfect the mechanisms of a free and open market by eliminating a 
little-used order type and improving the clarity of the Exchange's 
rules. The Exchange further believes that deleting an order type rarely 
used by investors also removes impediments to and perfects the 
mechanism of a free and open market by facilitating market 
participants' navigation of the Exchange's rulebook and improving their 
ability to understand the order types available for trading on the 
Exchange. Moreover, the Exchange believes that the elimination of Cross 
Orders will simplify order processing and reduce the burden on system 
capacity, which the Exchange believes is consistent with promoting just 
and equitable principles of trade, as well as the protection of 
investors and the public interest.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. Specifically, the Exchange 
believes that the proposed rule change would relieve a burden on 
competition by making the Exchange's rules easier to navigate and 
promoting regulatory clarity through the elimination of a seldom-used 
order type.

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 \5\ and Rule 19b-4(f)(6) thereunder.\6\ 
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 for 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 \7\ and Rule 19b-
4(f)(6) thereunder.\8\
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    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(f)(6).
    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's 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 the 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 to 
determine whether the proposed rule change should be approved or 
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

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or

[[Page 63919]]

     Send an email to [email protected]. Please include 
File Number SR-NYSEARCA-2019-80 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-NYSEARCA-2019-80. 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 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-2019-80, and should be 
submitted on or before December 10, 2019.

    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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-24982 Filed 11-18-19; 8:45 am]
BILLING CODE 8011-01-P