[Federal Register Volume 87, Number 142 (Tuesday, July 26, 2022)]
[Notices]
[Pages 44469-44470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15928]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95336; File No. SR-NYSECHX-2022-16]


Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Make a 
Non-Substantive Change to Rule 7.31(a)(2)(B) Regarding Limit Order 
Price Protection

July 20, 2022.
    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 July 8, 2022, the NYSE Chicago, Inc. (``NYSE Chicago'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``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 make a non-substantive change to Rule 
7.31(a)(2)(B) regarding Limit Order Price Protection. 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 make a non-substantive change to Rule 
7.31(a)(2)(B) regarding Limit Order Price Protection.
    Rule 7.31(a)(2)(B) (``Limit Order Price Protection'') provides that 
a Limit Order to buy (sell) will be rejected if it is priced at or 
above (below) the greater of $0.15 or a specified percentage away from 
the National Best Offer (National Best Bid) (``NBO'' and ``NBB,'' 
respectively). The rule currently states that the ``specified 
percentage is equal to the corresponding `numerical guideline' 
percentage set forth in paragraph (c)(1) of Rule 7.10 (Clearly 
Erroneous Executions) for the Core Trading Session.'' Pursuant to Rule

[[Page 44470]]

7.10(c)(1), those numerical guidelines are as follows: 10% for 
securities with a reference price up to and including $25.00, 5% for 
securities with a reference price greater than $25.00 and up to and 
including $50.00, and 3% for securities with a reference price greater 
than $50.00.
    The Exchange proposes to amend Rule 7.31(a)(2)(B) to delete the 
cross-reference to Rule 7.10(c)(1) and instead include the specified 
percentages from Rule 7.10(c)(1) as a table in the text of Rule 
7.31(a)(2)(B) itself, as follows:

------------------------------------------------------------------------
                                                               Specified
                       Reference price                        percentage
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Greater than $0.00 up to and including $25.00...............          10
Greater than $25.00 up to and including $50.00..............           5
Greater than $50.00.........................................           3
------------------------------------------------------------------------

    The Exchange does not propose any change to the percentages 
themselves or when they would apply. Accordingly, the proposed change 
would be non-substantive and would raise no novel issues.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\4\ in general, and with Section 
6(b)(5),\5\ 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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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed change to Rule 
7.31(a)(2)(B) would remove impediments to and perfect the mechanism of 
a free and open market and a national market system, and in general, 
protect investors and the public interest because deleting the cross-
reference to Rule 7.10(c)(1) and instead including the relevant 
percentages from Rule 7.10(c)(1) in the text of Rule 7.31(a)(2)(B) 
itself will enhance the clarity of the rule.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change will not 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 
intended to address competitive issues but rather would be a non-
substantive change to delete the cross-reference to Rule 7.10(c)(1) and 
instead include the relevant percentages from Rule 7.10(c)(1) in the 
text of Rule 7.31(a)(2)(B) itself.

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

    Because the foregoing 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, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-
4(f)(6) \7\ thereunder.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6). 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.
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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 will 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
     Send an email to [email protected]. Please include 
File Number SR-NYSECHX-2022-16 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-NYSECHX-2022-16. 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-NYSECHX-2022-16 and should be submitted 
on or before August 16, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-15928 Filed 7-25-22; 8:45 am]
BILLING CODE 8011-01-P