[Federal Register Volume 84, Number 225 (Thursday, November 21, 2019)]
[Notices]
[Pages 64384-64386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25209]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87548; File No. SR-NYSEAMER-2019-50]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Exchange Rule 7.37E Regarding the Exchange's Use of Data Feeds From 
NYSE Chicago, Inc. and Amend Exchange Rule 7.45E To Reflect That 
Archipelago Securities LLC Would Function as a Routing Broker for NYSE 
Chicago, Inc.

November 15, 2019.
    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 November 8, 2019, NYSE American LLC (``NYSE American'' or 
``Exchange'') filed with

[[Page 64385]]

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.
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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: (1) Amend Rule 7.37E to amend in Exchange 
rules the Exchange's use of data feeds from NYSE Chicago, Inc. (``NYSE 
Chicago'') for order handling and execution, order routing, and 
regulatory compliance; and (2) amend Rule 7.45E to reflect that 
Archipelago Securities LLC (``Arca Securities'') would function as a 
routing broker for the Exchange's affiliate, NYSE Chicago. 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to update and amend the table in Rule 7.37E 
that sets forth on a market-by-market basis the specific network 
processor and proprietary data feeds that the Exchange utilizes for the 
handling, execution and routing of orders, and for performing the 
regulatory compliance checks related to each of those functions. 
Specifically, the table would be amended to include NYSE Chicago, which 
intends to migrate to the Pillar trading platform.\4\ Rule 7.37E 
currently provides that the Chicago Stock Exchange, Inc., the 
predecessor name of NYSE Chicago, utilizes the securities information 
processor (``SIP'') data feed as its primary source for the handling, 
execution and routing of orders, as well as for regulatory compliance, 
and does not use a secondary source. Once NYSE Chicago transitions 
trading to Pillar, it would use a direct data feed as its primary 
source and the SIP data feed as a secondary source. To reflect these 
changes, the Exchange proposes to amend Rule 7.37E to specify which 
data feeds the Exchange would use for NYSE Chicago. Specifically, the 
Exchange proposes to amend the rule to provide that NYSE Chicago would 
use the direct data feed as the primary source and would use the SIP 
data feed as a secondary source.
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    \4\ NYSE Chicago has announced that, subject to rule approvals, 
it will transition to trading on Pillar on November 4, 2019. See 
Trader Update, available at https://www.nyse.com/publicdocs/nyse/notifications/trader-update/NYSEChicago_Migration_update_9.4.pdf. 
The Exchange originally filed the proposed rule change on October 
31, 2019 (SR-NYSEAMER-2019-47) and withdrew such filing on November 
8, 2019, and is now submitting this proposed rule change to make a 
technical change.
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    Additionally, the Exchange proposes to amend Rule 7.45E to reflect 
that Arca Securities would function as a routing broker for the 
Exchange's affiliate, NYSE Chicago. Specifically, the Exchange proposes 
to amend Rule 7.45E(c)(1) and (2) to reference NYSE Chicago as an 
affiliate of the Exchange for the purposes of the inbound routing 
function performed by Arca Securities. The proposed rule change would 
provide more clarity and transparency to all the functions that Arca 
Securities performs on behalf of the Exchange and its affiliates, which 
now includes NYSE Chicago. The Exchange is not proposing any 
substantive change to the rule.
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. The Exchange 
believes its proposal to update the table in Rule 7.37E to include NYSE 
Chicago will ensure that Rule 7.37 correctly identifies and publicly 
states on a market-by-market basis all of the specific network 
processor and proprietary data feeds that the Exchange utilizes for the 
handling, execution and routing of orders, and for performing the 
regulatory compliance checks to each of those functions. The proposed 
rule change also removes impediments to and perfects the mechanism of a 
free and open market and protects investors and the public interest 
because it provides additional specificity, clarity and transparency. 
The Exchange believes its proposed rule change to amend Rule 7.45E also 
removes impediments to and perfects the mechanism of a free and open 
market and protects investors and the public interest because the 
proposed rule change would enhance the clarity and transparency in 
Exchange Rules surrounding the inbound routing function performed by 
Arca Securities for the Exchange's affiliate, NYSE Chicago.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 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 will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed change is not 
designed to address any competitive issue but rather would provide the 
public and investors with information about which data feeds the 
Exchange uses for execution and routing decisions, and provide clarity 
in Exchange rules that Arca Securities would perform the inbound 
routing function on behalf on the Exchange's affiliate, NYSE Chicago.

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) 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

[[Page 64386]]

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.\9\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 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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    A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Exchange represents 
that the proposal would correctly identify and publicly state on a 
market-by-market basis all of the specific network processor and 
proprietary data feeds that the Exchange utilizes for the handling, 
execution and routing of orders, and for performing the regulatory 
compliance checks to each of those functions. Further, the Exchange 
represents that the proposal would enhance the clarity and transparency 
in Exchange Rules surrounding the inbound routing function performed by 
Arca Securities for NYSE Chicago. Based on the Exchange's 
representations, the Commission believes that waiving the 30-day 
operative delay is consistent with the protection of investors and the 
public interest, and designates the proposed rule change to be 
operative upon filing with the Commission.\12\
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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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) \13\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \13\ 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-NYSEAMER-2019-50 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-NYSEAMER-2019-50. 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-NYSEAMER-2019-50 and should be submitted 
on or before December 12, 2019.
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    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-25209 Filed 11-20-19; 8:45 am]
 BILLING CODE 8011-01-P