9978 Federal Register / Vol. 86, No. 30 / Wednesday, February 17, 2021 / Notices 

8See supra note 2. 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 90363 

(Nov. 5, 2020), 85 FR 71964 (Nov. 12 2020) 

(‘‘Notice’’). 

4See Securities Exchange Act Release No. 90726 

(Dec. 20, 2020), 85 FR 84431 (Dec. 28, 2020). 

5 In Amendment No. 1, the Exchange removed 

one of the proposed changes from the original 

proposal. Specifically, the Exchange removed the 

proposed change to adopt a new definition of 

Auction Reference Price for exchange-facilitated 

Core Open Auctions and to amend the temporary 

rule related to such auctions set forth in 

Commentary .04 to Rule 7.35C. This aspect of the 

original proposal is now the subject of a separate 

proposed rule change filed by the Exchange on 

February 8, 2021 (SR–NYSE–2021–13). 

6As defined in Rule 7.35(a)(1), an ‘‘Auction’’ 

refers to the process for opening, reopening, or 

closing of trading of Auction-Eligible Securities on 

the Exchange, which can result in either a trade or 

a quote. 7For purposes of Auctions, the term ‘‘DMM 

Interest’’ is defined in Rule 7.35(a)(8) to mean all 

buy and sell interest entered by a DMM unit in its 

assigned securities and includes: ‘‘DMM Auction 

Liquidity,’’ which is non-displayed buy and sell 

interest that is designated for an Auction only (see 

Rule 7.35(a)(8)(A)); ‘‘DMM Orders’’ which are 

orders, as defined under Rule 7.31, entered by a 

DMM unit (see Rule 7.35(a)(8)(B)); and ‘‘DMM 

After-Auction Orders,’’ which are orders entered by 

a DMM unit before either the Core Open Auction 

or Trading Halt Auction that do not participate in 

an Auction and are intended instead to maintain 

price continuity with reasonable depth following an 

Auction (see Rule 7.35(a)(8)(C)). 

8 In this Amendment No. 1, the Exchange is 

removing its proposed change to Rule 7.35C(b)(1) 

Exchange where a Fund is listed, the 

Fund will publish on its website the 

composition of any basket accepted by 

the Fund on the previous Business Day 

that differed from such Business Day’s 

Dynamic SSR Portfolio other than with 

respect to cash. 

III. Requested Exemptive Relief 

For the reasons stated above, 

Applicants believe that the Prior Order, 

as amended, continues to meet the 

relevant standards for relief pursuant to 

section 6(c) of the Act for an exemption 

from sections 2(a)(32), 5(a)(1), 22(d), and 

22(e) of the Act and rule 22c–1 under 

the Act, and under sections 6(c) and 

17(b) of the Act for an exemption from 

sections 17(a)(1) and 17(a)(2) of the Act, 

and under section 12(d)(1)(J) of the Act 

for an exemption from sections 

12(d)(1)(A) and 12(d)(1)(B) of the Act.8

IV. Applicants’ Conditions 

Applicants agree that the Amended 

Order granting the requested relief will 

be subject to all of the conditions in the 

Prior Order, except that condition A.9 of 

the Prior Order is deleted in its entirety 

and replaced with the conditions A.9 

and A.10 as follows: 

9. Each Fund will comply with the 

recordkeeping requirements of rule 6c– 

11 under the Act, as amended, except 

that for purposes of this condition, only 

Creation Baskets different from the 

Fund’s Dynamic SSR Portfolio will be 

treated as a ‘‘custom basket’’ under rule 

6c–11(d)(2)(ii). In addition, each Fund 

will maintain and preserve, for a period 

of not less than five years, in an easily 

accessible place, (i) a copy of the 

Dynamic SSR Portfolio published on the 

Fund’s website for each Business Day; 

and (ii) a copy of each Creation Basket 

made available. 

10. Each Fund will adopt and 

implement written policies and 

procedures that govern the construction 

of Creation Baskets, as required under 

rule 6c–11(c)(3) under the Act, as 

amended, except that for purposes of 

this condition, only Creation Baskets 

different from the Fund’s Dynamic SSR 

Portfolio will be treated as a ‘‘Custom 

Basket’’. The Fund’s basket policies and 

procedures will be covered by the 

Fund’s compliance program and other 

requirements under rule 38a–1 under 

the Act, as amended. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–03086 Filed 2–16–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–91095; File No. SR–NYSE– 

2020–89] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Amendment No. 1 and Order 

Instituting Proceedings To Determine 

Whether To Approve or Disapprove a 

Proposed Rule Change, as Modified by 

Amendment No. 1, To Amend Rule 

7.35C 

February 10, 2021. 

I. Introduction 

On October 23, 2020, New York Stock 

Exchange LLC (‘‘NYSE’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend Rule 7.35C (Exchange-Facilitated 

Auctions) to (1) provide the Exchange 

authority to facilitate a Trading Halt 

Auction if a security has not reopened 

by 3:30 p.m. following a MWCB Halt; (2) 

widen the Auction Collar for an 

Exchange-facilitated Trading Halt 

Auction following an MWCB Halt; (3) 

provide that certain DMM Interest 

would not be canceled following an 

Exchange-facilitated Auction; and (4) 

change the Auction Reference Price for 

Exchange-facilitated Core Open 

Auctions. 

The proposed rule change was 

published for comment in the Federal 

Register on November 12, 2020.3 On 

December 18, 2020, the Commission 

extended the time period within which 

to either approve the proposed rule 

change, disapprove the proposed rule 

change, or institute proceedings to 

determine whether to approve or 

disapprove the proposed rule change, to 

February 10, 2020.4 On February 5, 

2020, the Exchange filed Amendment 

No. 1 to the proposed rule change.5 The 

Commission has received no comments 

on the proposed rule change. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change, as modified by 

Amendment No. 1, from interested 

persons and is instituting proceedings 

under Section 19(b)(2)(B) of the Act to 

determine whether to approve or 

disapprove the proposed rule change, as 

modified by Amendment No. 1. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change, as Modified by Amendment 

No. 1 

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 amend 

Rule 7.35C (Exchange-Facilitated 

Auctions) to (1) provide the Exchange 

authority to facilitate a Trading Halt 

Auction 6 if a security has not reopened 

following a Level 1 or Level 2 trading 

halt due to extraordinary market 

volatility under Rule 7.12 (‘‘MWCB 

Halt’’) by 3:30 p.m.; (2) widen the 

Auction Collar for an Exchangefacilitated Trading Halt Auction 

following a MWCB Halt; and (3) provide 

that certain DMM Interest 7 would not 

be cancelled following an Exchangefacilitated Auction.8


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relating to the Auction Reference Price for 

Exchange-facilitated Core Open Auctions, which 

will be submitted as a separate proposed rule 

change. 

9Pursuant to Rule 7.1(e), the CEO notified the 

Board of Directors of the Exchange of this 

determination. The Exchange’s current rules 

establish how the Exchange will function fullyelectronically. The CEO also closed the NYSE 

American Options Trading Floor, which is located 

at the same 11 Wall Street facilities, and the NYSE 

Arca Options Trading Floor, which is located in 

San Francisco, CA. See Press Release, dated March 

18, 2020, available here: https://ir.theice.com/press/ 

press-releases/all-categories/2020/03-18-2020- 

204202110. 

10See Securities Exchange Act Release No. 88933 

(May 22, 2020), 85 FR 32059 (May 28, 2020) (SR– 

NYSE–2020–47) (Notice of filing and immediate 

effectiveness of proposed rule change). 

11See Securities Exchange Act Release No. 89086 

(June 17, 2020) (SR–NYSE–2020–52) (Notice of 

filing and immediate effectiveness of proposed rule 

change). 

12See Securities Exchange Act Release Nos. 

88413 (March 18, 2020), 85 FR 16713 (March 24, 

2020) (SR–NYSE–2020–19) (amending Rule 7.35C 

to add Commentary .01) (‘‘First Rule 7.35C Filing’’); 

88444 (March 20, 2020), 85 FR 17141 (March 26, 

2020) (SR–NYSE–2020–22) (amending Rules 7.35A 

to add Commentary .01, 7.35B to add Commentary 

.01, and 7.35C to add Commentary .02) (‘‘Second 

Rule 7.35C Filing’’); 88562 (April 3, 2020), 85 FR 

20002 (April 9, 2020) (SR–NYSE–2020–29) 

(amending Rule 7.35C to add Commentary .03) 

(‘‘DMM Interest Filing’’); and 89059 (June 12, 2020), 

85 FR 36911 (June 18, 2020) (SR–NYSE–2020–50) 

(amending Rule 7.35C to add Commentary .04) 

(‘‘Fourth Rule 7.35C Filing’’). 

13See Securities Exchange Act Release No. 90795 

(December 23, 2020), 85 FR 86608 (December 30, 

2020) (SR–NYSE–2020–106) (Notice of filing and 

immediate effectiveness of proposed rule change to 

extend the temporary period for Commentaries to 

Rules 7.35, 7.35A, 7.35B, and 7.35C; and temporary 

rule relief in Rule 36.30 to end on the earlier of a 

full reopening of the Trading Floor facilities to 

DMMs or after the Exchange closes on April 30, 

2020). 

14See First Rule 7.35C Filing, supra note 12. 

15See Second Rule 7.35C Filing, supra note 12. 

These proposed changes are currently 

in place on a temporary basis, as 

described in Commentaries .01–.03 to 

Rule 7.35C. 

Background 

To slow the spread of COVID–19 

through social-distancing measures, on 

March 18, 2020, the CEO of the 

Exchange made a determination under 

Rule 7.1(c)(3) that, beginning March 23, 

2020, the Trading Floor facilities located 

at 11 Wall Street in New York City 

would close and the Exchange would 

move, on a temporary basis, to fully 

electronic trading.9 On May 14, 2020, 

the CEO of the Exchange made a 

determination under Rule 7.1(c)(3) to 

reopen the Trading Floor on a limited 

basis on May 26, 2020 to a subset of 

Floor brokers, subject to safety measures 

designed to prevent the spread of 

COVID–19.10 On June 15, 2020, the CEO 

of the Exchange made a determination 

under Rule 7.1(c)(3) to begin the second 

phase of the Trading Floor reopening by 

allowing DMMs to return on June 17, 

2020, subject to safety measures 

designed to prevent the spread of 

COVID–19.11

Rule 7.35C sets forth the procedures 

for Exchange-facilitated Auctions. The 

first time the Exchange facilitated any 

Auctions pursuant to Rule 7.35C was on 

March 19, 2020, when two DMM firms 

temporarily left the Trading Floor in 

connection with implementing their 

business continuity plans related to the 

COVID–19 pandemic. Beginning on 

March 23, 2020, when the Exchange 

temporarily closed the Trading Floor, 

the Exchange began facilitating 

Auctions on behalf of all DMM firms. 

During the period of March 23, 2020 

through June 16, 2020, among the DMM 

firms, the percentage of Auctions that 

were facilitated by the Exchange ranged 

from 1% to 3.2% of the securities 

assigned to each DMM. During this 

period, the vast majority of Auctions 

were facilitated electronically by DMMs 

pursuant to Rules 7.35A and 7.35B. 

In connection with both the marketwide volatility associated with the 

COVID–19 pandemic in March 2020 and 

the full and partial closing of the 

Trading Floor facilities, the Exchange 

added Commentaries .01, .02, .03, and 

.04 to Rule 7.35C12 that are in effect 

until the earlier of a full reopening of 

the Trading Floor facilities to DMMs or 

after the Exchange closes on April 30, 

2021.13 These Commentaries set forth 

how the Exchange has been functioning 

during this temporary period when the 

Trading Floor facilities have been closed 

either in full or in part in connection 

with COVID–19. 

The Exchange believes that the rules 

that it has added on a temporary basis 

to Rule 7.35C have supported the fair 

and orderly operation of the Exchange 

during both the market volatility 

associated with COVID–19 and the 

temporary period that the Trading Floor 

facilities have been closed either in full 

or in part due to COVID–19. The 

Exchange further believes the 

functionality that has been operating on 

a temporary basis would continue to 

support the fair and orderly operation of 

the Exchange under any circumstances 

where there may be either market-wide 

volatility or the need for the Exchange 

to facilitate one or more Auctions. 

Accordingly, the Exchange proposes 

that the following changes be made 

permanent in Exchange rules: 

• Provide the Exchange with 

authority to facilitate a Trading Halt 

Auction if a security has not reopened 

following a MWCB Halt by 3:30 p.m. 

Eastern Time. 

• Widen the Auction Collars for an 

Exchange-facilitated Trading Halt 

Auction following a MWCB Halt to the 

greater of $0.15 or 10%. 

• Allow DMM Interest to remain on 

the Exchange Book after an Exchangefacilitated Auction. 

Proposed Rule Changes 

Exchange Authority To Facilitate a 

Trading Halt Auction Following a 

MWCB Halt 

In the midst of the market-wide 

volatility relating to COVID–19 and 

before the Exchange temporarily closed 

the Trading Floor, the Exchange added 

Commentary .01 to Rule 7.35C, which 

provided, at the time of filing, that: 14

Until May 15, 2020, to facilitate the 

fair and orderly reopening of securities 

following either a Level 1 or Level 2 

trading halt due to extraordinary market 

volatility under Rule 7.12 (‘‘MWCB 

Halt’’), the CEO of the Exchange or his 

or her designee may determine that the 

Exchange will facilitate a Trading Halt 

Auction in one or more securities under 

this Rule if a security has not reopened 

by 3:30 p.m. If the Exchange facilitates 

a Trading Halt Auction following a 

MWCB Halt pursuant to this 

Commentary, the Auction Collars will 

be the greater of $0.15 or 10% away 

from the Auction Reference Price. 

Following the temporary closure of 

the Trading Floor, the substance of this 

Commentary was revised and moved to 

Commentary .02 to Rule 7.35C, as 

follows: 15

If the Trading Floor facilities reopen, 

through trading on December 31, 2020, 

to facilitate the fair and orderly 

reopening of securities following a 

MWCB Halt, the CEO of the Exchange 

or his or her designee may determine 

that the Exchange will facilitate a 

Trading Halt Auction in one or more 

securities under this Rule if a security 

has not reopened by 3:30 p.m. Eastern 

Time. If the Exchange facilitates a 

Trading Halt Auction following a 

MWCB Halt pursuant to this 

Commentary, the Auction Collars will 

be the greater of $0.15 or 10% away 

from the Auction Reference Price. 

As described in more detail in the 

First Rule 7.35C Filing, under Rule 

7.35C, the Exchange will facilitate an 

Auction only if a DMM cannot facilitate 

an Auction for one or more securities. 

In support of the proposed rule change, 

the Exchange explained: 

The Exchange continues to believe 

that DMM-facilitated Trading Halt 

Auctions following a MWCB Halt 

provide the greatest opportunity for fair 

and orderly reopenings of securities, 

and would therefore continue to provide 


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16Commentary .01(a) to Rule 7.35C currently 

provides that: ‘‘For a temporary period that begins 

March 23, 2020, when the Trading Floor facilities 

have been closed pursuant to Rule 7.1(c)(3), and 

ends on the earlier of a full reopening of the 

Trading Floor facilities to DMMs or after the 

Exchange closes on December 31, 2020: (a) The 

Auction Collar for a Trading Halt Auction following 

a either a Level 1 or Level 2 trading halt due to 

extraordinary market volatility under Rule 7.12 

(‘‘MWCB Halt’’) will be the greater of $0.15 or 10% 

away from the Auction Reference Price.’’ 

17See Securities Exchange Act Release No. 85962 

(May 29, 2019), 84 FR 26188 (June 5, 2019) (SR– 

NYSE–2019–05) (Order approving, among other 

rules, Rule 7.35C, including that extension logic 

would not be applied to Exchange-facilitated 

Trading Halt Auctions). The Exchange continues to 

believe that extension logic is not necessary for 

Exchange-facilitated Trading Halt Auctions 

following a MWCB Halt because marketable orders 

priced through the Auction Collars would be 

cancelled, which would serve the same purpose as 

the extension logic. The proposed wider Auction 

Collars for an Exchange-facilitated Trading Halt 

Auction following a MWCB Halt would allow for 

more interest to participate in such auction, thereby 

reducing the potential for orders to be cancelled. 

DMMs an opportunity to reopen 

securities before effectuating an 

Exchange-facilitated Trading Halt 

Auction. The proposal would provide 

the Exchange with another tool during 

volatile markets to reopen securities 

before 3:50 p.m., for continuous trading 

to resume leading into the close . . . . . 

The Exchange believes that specifying a 

time in the Rule at which the Exchange 

could exercise such discretion would 

put DMMs on notice of the time that the 

Exchange could begin facilitating such 

auctions. The Exchange further believes 

that it is not appropriate to provide that 

the Exchange would automatically 

facilitate reopening auctions at 3:30 

p.m. There may be facts and 

circumstances where DMMs would be 

able to reopen all securities before 3:50 

p.m., but that the DMM-facilitated 

process may not have completed by 3:30 

p.m. The Exchange would take those 

facts and circumstances into account 

before invoking the proposed relief. 

Exchange staff would communicate 

with the impacted DMMs verbally on 

the Floor during such times, and 

therefore the DMMs would be on notice 

of whether the Exchange would invoke 

this relief, and for which securities. 

The Exchange continues to believe 

that the ability for the Exchange to 

facilitate a Trading Halt Auction 

following a MWCB Halt if a security has 

not reopened by 3:30 p.m. would 

promote the fair and orderly reopening 

of one or more securities so that 

continuous trading may resume leading 

into the close. Accordingly, the 

Exchange proposes that the relief 

described above should be made a 

permanent part of Rule 7.35C. To effect 

this change, the Exchange proposes to 

amend 7.35C to add new subparagraph 

(a)(4) as follows, which is based on 

current Commentary .02 to Rule 7.35C 

without any substantive differences: 

The CEO of the Exchange, or his or 

her designee, may determine that the 

Exchange will facilitate a Trading Halt 

Auction in one or more securities under 

this Rule if a security is subject to either 

a Level 1 or Level 2 trading halt due to 

extraordinary market volatility under 

Rule 7.12 (‘‘MWCB Halt’’) and has not 

reopened by 3:30 p.m. Eastern Time. 

The Exchange further proposes to 

delete Commentary .02 to Rule 7.35C, 

which would be replaced by proposed 

Rule 7.35C(a)(4). 

There are no technology changes 

associated with this proposed rule 

change and the Exchange would be able 

to implement it immediately upon 

approval of this proposed rule change. 

Wider Auction Collars for a Trading 

Halt Auction Following a MWCB Halt 

As noted above, as set forth in 

Commentary .01(a) to Rule 7.35C,16 the 

Exchange also widened the Auction 

Collars for an Exchange-facilitated 

Trading Halt Auction following a 

MWCB Halt to the greater of $0.15 or 

10% away from the Auction Reference 

Price. Absent this temporary relief, the 

Auction Collars for all Exchangefacilitated Trading Halt Auctions, 

including reopenings following a 

MWCB Halt, is the greater of $0.15 or 

5% away from the Auction Reference 

Price and does not include extension 

logic.17

As described in the First Rule 7.35C 

Filing, the widening of the Auction 

Collars was designed to provide the 

Exchange with more flexibility to 

respond to the then unprecedented 

market-wide declines that resulted from 

the ongoing spread of COVID–19 at that 

time if the Exchange were to facilitate a 

Trading Halt Auction following a 

MWCB Halt. The Exchange cannot 

predict if and when the U.S. equities 

market will experience market-wide 

declines that would trigger a MWCB 

Halt again. However, if such marketwide volatility were to occur, the 

Exchange believes that the widened 

Auction Collars would promote fair and 

orderly reopenings following a MWCB 

Halt by providing a wider price range at 

which the Exchange could facilitate 

such a reopening. 

To effect this change, the Exchange 

proposes to amend Rule 

7.35C(b)(3)(A)(ii) to provide as follows 

(proposed new text italicized), which is 

based on current Commentary .01 to 

Rule 7.35C without any substantive 

differences: 

The Auction Collar for the Trading Halt 

Auction will be based on a price that is the 

greater of $0.15 or 5% away from the Auction 

Reference Price for the Trading Halt Auction, 

provided that, the Auction Collar for a 

Trading Halt Auction following a MWCB Halt 

will be the greater of $0.15 or 10% away from 

the Auction Reference Price. 

The Exchange further proposes to 

delete Commentary .01 to Rule 7.35C, 

which would be replaced by the 

proposed amendment to Rule 

7.35C(b)(3)(A)(ii). 

There are no technology changes 

associated with this proposed rule 

change and the Exchange would be able 

to implement it immediately upon 

approval of this proposed rule change. 

DMM Interest and Exchange-Facilitated 

Auctions 

As set forth in Rule 7.35C(a)(1), if the 

Exchange facilitates an Auction, DMM 

Interest would not be eligible to 

participate in such Auction and 

previously-entered DMM Interest would 

be cancelled. When a DMM cannot 

facilitate an Auction because the DMM 

unit is experiencing a system issue that 

prevents it from communicating with 

Exchange systems, cancelling DMM 

Interest following an Exchangefacilitated Auction would help ensure 

that DMM Interest that may be at stale 

prices does not participate in trading on 

the Exchange. On the other hand, by 

cancelling DMM Interest when the 

DMM units’ systems are operating 

normally, DMMs may be limited in their 

ability to maintain price continuity with 

reasonable depth, i.e., provide passive 

liquidity at the Exchange best bid and 

offer and at depth, immediately 

following an Exchange-facilitated 

Auction. 

After a period of operating Exchangefacilitated Auctions, the Exchange 

identified a way to provide DMMs with 

a greater opportunity to provide passive 

liquidity immediately following an 

Auction, thereby dampening volatility, 

while still limiting DMM risk. To effect 

this change, the Exchange added 

Commentary .03 to Rule 7.35C, which 

provides that for the temporary period 

that begins on April 6, 2020 and ends 

on the earlier of a full reopening of the 

Trading Floor facilities to DMMs or after 

the Exchange closes on December 31, 

2020, if the Exchange facilitates an 

Auction, DMM Interest (i) will not be 

eligible to participate if such Auction 

results in a trade, and will be eligible to 

participate if such Auction results in a 

quote, and (ii) will not be cancelled 

unless the limit price of such DMM 

Interest would be priced through the 

Auction Price or Auction Collars, as 

applicable, or such DMM Interest would 


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18See DMM Interest Filing, supra note 12. 

19See Rule 7.35A(h)(3)(C) (providing that after a 

Core Open or Trading Halt Auction, better at-priced 

DMM Orders that do not receive an allocation and 

that lock or cross other unexecuted orders and buy 

and sell better-priced DMM Orders will be 

cancelled after the Auction Processing Period 

concludes). 20See Rule 104(f)(2). 

be marketable against other unexecuted 

orders.18

The Exchange proposes to make 

permanent the changes to how 

Exchange-facilitated Auctions function, 

as described in Commentary .03 to Rule 

7.35C. By making this functionality 

permanent, such rules would continue 

to apply both during the continuation of 

the current Trading Floor closure and if 

the Exchange were to facilitate Auctions 

any time after the Trading Floor fully 

reopens. 

To effect this change, the Exchange 

proposes to amend 7.35C(a)(1) as 

follows (new text italicized, deleted text 

bracketed): 

If the Exchange facilitates an Auction, 

DMM Interest will not be eligible to 

participate [in]if such Auction results in a 

trade, and will be eligible to participate if 

such Auction results in a quote[and 

previously-entered DMM Interest will be 

cancelled]. 

This proposed rule change would 

make permanent the temporary 

functionality set forth in paragraph 

(a)(1) to Commentary .03. 

With this change, DMM Interest 

would not participate in any Exchangefacilitated Auctions that would result in 

a trade. This is how DMM Interest 

currently functions when the Exchange 

facilitates an Auction pursuant to either 

Rule 7.35C(a)(1) or Commentary .03 to 

Rule 7.35C. Based on experience 

operating pursuant to Commentary .03 

to Rule 7.35C, the Exchange believes 

that this functionality should continue 

permanently when the Exchange 

facilitates an Auction, including, for 

example, when the Trading Floor is 

open but the DMM is unable to facilitate 

an Auction because of a systems or 

technical issue. 

More specifically, when a DMM 

facilitates an Auction that results in a 

trade, the DMM determines whether to 

participate on the buy or sell side and, 

based on that direction from the DMM, 

DMM Orders that do not participate in 

the Auction and that would lock or 

cross other orders, which would include 

other DMM Orders, will be cancelled.19

If the DMM has entered both buy and 

sell interest in advance of the Auction 

and the Exchange facilitates the 

Auction, the DMM would not be able to 

control whether the DMM’s buy or sell 

interest would participate in a trade and 

the Exchange would not have that 

instruction from the DMM of which side 

of the market that the DMM would 

participate. As a result, there may be 

crossing DMM Interest that could result 

in a wash-sale trade that would not have 

occurred if the DMM had facilitated the 

Auction. Excluding DMM Interest from 

participating in an Exchange-facilitated 

Auction that results in a trade 

eliminates the potential for a wash-sale 

trade. In addition, the Exchange believes 

it promotes fair and orderly Exchangefacilitated Auctions that result in a trade 

to exclude DMM Interest from 

participating in such Auctions, because 

if a DMM’s buy or sell interest does not 

reflect up-to-date prices, it could impact 

pricing of the Auction. 

By contrast, the Exchange believes 

that the proposed change for DMM 

Interest to participate in an Exchangefacilitated Auction that results in a 

quote would promote fair and orderly 

markets. This proposed change is 

consistent with Commentary .03(a)(1) to 

Rule 7.35C, but differs from current 

Rule 7.35C(a)(1). A security opens on a 

quote if there is no buy interest willing 

to trade with sell interest at the same 

price. The Exchange believes that under 

such circumstances, including DMM 

Interest in the Exchange’s quote would 

assist the DMMs in meeting their 

obligation to maintain a two-sided quote 

as well as to maintain continuity and 

depth in their assigned securities.20

Accordingly, the Exchange believes that 

making this change permanent would 

promote fair and orderly markets in 

connection with Exchange-facilitated 

Auctions that result in a quote. 

The final element of the proposed 

change to Rule 7.35C(a)(1) is that DMM 

Interest would no longer be 

automatically cancelled after an 

Exchange-facilitated Auction. The 

Exchange believes that this proposed 

change would assist DMMs in meeting 

their obligation, as required by Rule 

104(f)(2), to provide passive liquidity in 

order to maintain continuity with 

reasonable depth in their assigned 

securities immediately following a Core 

Open Auction or Trading Halt Auction 

that was facilitated by the Exchange. In 

advance of an Auction, DMMs can enter 

DMM Orders, which if not traded in an 

Auction, would be part of the DMM 

Interest on the Exchange Book after the 

Auction. In addition, DMMs can enter 

DMM After-Auction Orders, which do 

not participate in Auctions and are 

specifically designed to assist the DMMs 

to maintain passive liquidity on the 

Exchange immediately following an 

Auction, which supports their ability to 

maintain continuity with reasonable 

depth immediately following an 

Auction. If DMM Interest is not 

automatically cancelled following an 

Exchange-facilitated Auction, the DMM 

would be better able to timely meet 

these obligations by ensuring that 

passive liquidity remains on the 

Exchange Book immediately following 

an Auction. 

The Exchange believes that there 

remain circumstances when DMM 

Interest should be cancelled following 

an Exchange-facilitated Auction. As 

proposed, the Exchange would cancel 

unexecuted DMM Interest under the 

same circumstances that unexecuted 

orders of other member organizations 

would be cancelled following such 

Auctions. 

To effect this change, the Exchange 

proposes to amend Rule 7.35C(g)(1), 

which currently describes which 

unexecuted orders would be cancelled if 

a security opens or reopens on a trade 

via an Exchange-facilitated Auction, and 

Rule 7.35C(g)(2), which currently 

describes which unexecuted orders 

would be cancelled if a security opens 

or reopens on a quote that is above 

(below) the upper (lower) Auction 

Collar via an Exchange-facilitated 

Auction. The Exchange proposes that 

these two subparagraphs would be 

replaced with the following text to 

incorporate that under the same 

circumstances, DMM Interest would 

similarly be cancelled (proposed new 

text italicized): 

(1) If a security opens or reopens on a 

trade, Market Orders (including sell short 

Market Orders during a Short Sale Period) 

and Limit Orders, including DMM Interest, 

with a limit price that is better-priced than 

the Auction Price and were not executed in 

the applicable Auction will be cancelled. 

(2) If a security opens or reopens on a 

quote that is above (below) the upper (lower) 

Auction Collar, Market Orders (including sell 

short Market Orders during a Short Sale 

Period) and Limit Orders, including DMM 

Interest, with a limit price that is betterpriced than the upper (lower) Auction Collar 

will be cancelled before such quote is 

published. 

These proposed rule changes would 

make permanent the temporary 

functionality set forth in paragraphs 

(b)(1) and (2) to Commentary .03. 

The Exchange further believes that if 

previously-entered DMM Interest would 

be marketable against either other DMM 

Interest or contra-side unexecuted 

orders, such DMM Interest should be 

cancelled. For example, if for a security, 

the Auction Reference Price is $10.00, 

the lower Auction Collar is $9.00 and 

the upper Auction Collar is $11.00, and 

the orders on the Exchange Book in 

advance of the Auction are as follows: 


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9982 Federal Register / Vol. 86, No. 30 / Wednesday, February 17, 2021 / Notices 

21As described in an Exchange blog post, this 

metric is calculated using second-to-second ‘‘quote 

returns,’’ which is calculated by averaging the 

midpoints of all NBBO updates for a security within 

each second of the day from 9:35 a.m. to 4:00 p.m., 

and then calculating the percentage rate of return 

of these average quote midpoints from one second 

to the next. The variance of returns are then 

calculated in aggregated time periods (e.g., 5-minute 

buckets) and annualized from seconds to 6.5 hour 

trading days to 252 trading days in the years. 

Finally, the Exchange takes the square root of the 

annualized variance in the aggregated periods, 

which creates the Exchange’s quote volatility 

metric. See NYSE Data Insights, Introducing Quote 

Volatility (QV)—a new metric to measure price 

volatility, available here: https://www.nyse.com/ 

data-insights/introducing-quote-volatility-qv-a-newmetric-to-measure-price-volatility. 

22 15 U.S.C. 78f(b). 

23 15 U.S.C. 78f(b)(5). 

• Order 1—Buy DMM Order 1000 

shares at $10.05, 

• Order 2—Sell DMM Order 1000 

shares at $10.00, 

• Order 3—Buy DMM Order 1000 

shares at $10.02, 

• Order 4—Sell Limit Order at 

$10.03, 

the orders in this example would be 

processed as follows in an Exchangefacilitated Auction: 

• Order 1 would be cancelled 

(because DMM Interest would not be 

eligible to participate in an Auction 

trade, and here, Order 1 is marketable 

with Orders 2 and 4), 

• Order 2 would be cancelled 

(because DMM Interest would not be 

eligible to participate in an Auction 

trade, and here Order 2 is marketable 

with Order 3), and 

• Order 3 would not be cancelled 

because it is no longer marketable with 

any other interest, i.e., it no longer locks 

or crosses the price of any other contraside interest in the Exchange Book. 

Order 3 would therefore be included in 

the opening quote. 

This Exchange-facilitated Auction 

would result in the following quote: 

$10.02 (Order 3—DMM Order) × $10.03 

(Order 4—Limit Order). 

To effect this change, the Exchange 

proposes new subparagraph (g)(3) to 

Rule 7.35C to specify the additional 

circumstances when DMM Interest 

would be cancelled, as follows: 

The Exchange will cancel DMM 

Interest that is marketable against 

contra-side unexecuted orders. If the 

contra-side unexecuted order against 

which such DMM Interest is marketable 

is DMM Interest, the DMM Interest with 

the earlier working time will be 

canceled. 

This proposed rule change would 

make permanent the temporary 

functionality set forth in paragraph 

(b)(3) to Commentary .03. 

The Exchange believes that these 

proposed rule changes would promote 

fair and orderly markets whenever the 

Exchange facilitates an Auction under 

Rule 7.35C—under any circumstance— 

by supporting DMMs in maintaining 

continuity with reasonable depth in 

their assigned securities immediately 

following an Exchange-facilitated Core 

Open Auction or Trading Halt Auction 

that was facilitated by the Exchange. 

The Exchange proposes that, with 

these proposed changes to Rules 

7.35C(a)(1) and (g), Commentary .03 to 

Rule 7.35C would be deleted in its 

entirety. 

In further support of making the 

functionality set forth in Commentary 

.03 to Rule 7.35C permanent, the 

Exchange notes that after the Exchange 

implemented that Commentary, the 

Exchange observed improved 

performance relating to Exchangefacilitated Auctions. 

• For the period March 23, 2020 to 

April 3, 2020, 4.9% of all Core Open 

Auctions were facilitated by the 

Exchange. For the period April 6, 2020 

through June 16, 2020, the Exchange 

facilitated only 2% of all Core Open 

Auctions. In addition, the percentage of 

Exchange-facilitated Core Open 

Auctions that were bound by an 

Auction Collar decreased from 1.3% 

from the pre-April 6, 2020 period, to 

0.58% in the April 6, 2020–June 16, 

2020 period. 

• In addition, the Exchange observed 

that after April 6, 2020, Exchange-listed 

securities experienced reduced 

volatility in the first half hour of 

trading. The Exchange uses a quotebased metric to measure volatility in 

securities,21 and based on that metric, 

volatility in Exchange-listed securities 

between the period of April 6, 2020 and 

June 16, 2020 was 28.4% lower than the 

same measure between March 23, 2020 

and April 3, 2020. In addition, the 

Exchange further observed that between 

these two periods, the difference 

between the Core Open Auction Price 

and the subsequent five-minute VWAP 

dropped by 31.3%. 

For DMM firms that have already 

returned staff to the Trading Floor, this 

proposed change has limited 

application because the Exchange has 

not facilitated any Auctions on behalf of 

those firms since June 16, 2020. In 

addition, the Exchange anticipates that 

once the Trading Floor facilities open in 

full to DMMs, and all DMM firms have 

staffing on the Trading Floor, the need 

for Exchange-facilitated Auctions would 

be obviated, and the Exchange will 

revert to pre-pandemic rates of 

Exchange-facilitated Auctions, which 

were none. Accordingly, the proposed 

changes to Rule 7.35C will likely have 

limited application and would be 

available as a business continuity 

functionality should DMMs be unable to 

facilitate an Auction in one or more 

securities, for any reason. 

There are no technology changes 

associated with this proposed rule 

change and the Exchange would be able 

to implement it immediately upon 

approval of this proposed rule change. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Act,22 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,23

in particular, in that 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, and to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system. 

The Exchange believes that the rules 

that it added on a temporary basis to 

Rule 7.35C have supported the fair and 

orderly operation of the Exchange 

during both the market volatility 

associated with COVID–19 and the 

temporary period that the Trading Floor 

facilities have been closed either in full 

or in part due to COVID–19. The 

Exchange further believes the 

functionality that has been operating on 

a temporary basis would continue to 

support the fair and orderly operation of 

the Exchange under any circumstances 

where there may be either market-wide 

volatility or the need for the Exchange 

to facilitate one or more Auctions. 

Exchange Authority To Facilitate a 

Trading Halt Auction Following a 

MWCB Halt 

The Exchange believes that it would 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system to provide 

the Exchange with authority to facilitate 

a Trading Halt Auction following a 

MWCB Halt. The Exchange continues to 

believe that DMM-facilitated Trading 

Halt Auctions following a MWCB Halt 

provide the greatest opportunity for fair 

and orderly reopenings of securities, 

and would therefore continue to provide 

DMMs an opportunity to reopen 

securities before effectuating an 

Exchange-facilitated Trading Halt 

Auction. The proposal would provide 

the Exchange with another tool during 

volatile markets to reopen securities 

before 3:50 p.m. so that continuous 

trading may resume before leading into 

the close. The Exchange further believes 


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Federal Register / Vol. 86, No. 30 / Wednesday, February 17, 2021 / Notices 9983 

24 15 U.S.C. 78s(b)(2)(B). 

25 15 U.S.C. 78f(b)(5). 

that it is not appropriate to provide that 

the Exchange would automatically 

facilitate reopening auctions at 3:30 

p.m. There may be facts and 

circumstances where DMMs would be 

able to reopen all securities before 3:50 

p.m., but that the DMM-facilitated 

process may not have completed by 3:30 

p.m. The Exchange would take those 

facts and circumstances into account 

before invoking the proposed relief. 

Wider Auction Collars for a Trading 

Halt Auction Following a MWCB Halt 

The Exchange believes that it would 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system to widen 

the Auction Collars for an Exchangefacilitated Trading Halt Auction 

following a MWCB Halt. Such widened 

Auction Collars would provide the 

Exchange with more flexibility to 

respond to any market-wide declines 

that may continue following a MWCB 

Halt if the Exchange were to facilitate a 

Trading Halt Auction following such 

halt. The Exchange cannot predict if and 

when the U.S. equities market will 

experience market-wide declines that 

would trigger a MWCB Halt again. 

However, if such market-wide volatility 

were to occur, the Exchange believes 

that the widened Auction Collars would 

promote fair and orderly reopenings 

following a MWCB Halt by providing a 

wider price range at which the 

Exchange could facilitate such a 

reopening, thereby allowing more buy 

and sell interest to participate in such 

Auction. 

DMM Interest and Exchange-Facilitated 

Auctions 

As noted above, beginning March 19, 

2020, the Exchange began facilitating 

auctions as provided for under Rule 

7.35C for the first time, and then, 

beginning March 23, 2020, when the 

Trading Floor was temporarily closed to 

reduce the spread of COVID–19, began 

facilitating Auctions on behalf of all 

DMM firms. Based on that experience, 

the Exchange added Commentary .03 to 

Rule 7.35C, which is in effect only for 

a temporary period while the Trading 

Floor is closed. The Exchange believes 

that it would remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system to make the changes described in 

Commentary .03 to Rule 7.35C 

permanent because it would allow 

DMMs to maintain continuity with 

reasonable depth in their assigned 

securities immediately following an 

Exchange-facilitated Auction. 

As described above, the Exchange is 

proposing that DMM Interest would 

continue to not participate in an 

Exchange-facilitated Auction that 

results in a trade. As noted above, under 

both the current Rule and temporary 

Commentary .03, DMM Interest does not 

participate in an Exchange-facilitated 

Auction that results in a trade in part to 

prevent wash-trade sales of previouslyentered DMM buy and sell interest and 

therefore reduces DMM units’ risk. It 

also protects the fair and orderly 

operation of such Auctions because 

such DMM Interest may be at stale 

prices, and therefore could impact 

pricing of the Auction in a manner that 

does not reflect up-to-date trading 

interest. For this reason, the Exchange 

believes it would continue to promote 

fair and orderly Auctions for DMM 

Interest not to participate in an 

Exchange-facilitated Auction that 

results in a trade. 

By contrast, the Exchange believes 

that the proposed change that DMM 

Interest would be included in an 

Exchange-facilitated Auction that 

results in a quote would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system because it 

would promote fair and orderly 

resumption of trading by allowing DMM 

Interest to be considered as part of the 

opening quote. A security only opens on 

a quote when there are no buy and sell 

orders that can be crossed at a single 

price. Accordingly, when a security 

opens on a quote, the DMM has an 

immediate obligation to maintain a twosided quote and to provide continuity 

and depth. Including DMM interest in 

an Exchange-facilitated Auction that 

results in a quote would assist DMMs in 

meeting those obligations. 

The Exchange believes it would 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system not to 

automatically cancel DMM Interest 

following an Exchange-facilitated 

Auction because it would provide 

DMMs with the opportunity to provide 

passive liquidity immediately following 

an Exchange-facilitated Auction, 

thereby reducing volatility while still 

limiting DMM risk. Similarly, the 

Exchange believes that because DMM 

Interest would not be participating in an 

Exchange-facilitated Auction that 

results in a trade, it would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system to cancel 

DMM Interest that would be marketable 

against unexecuted orders because, if 

not cancelled, such interest could trade 

at a price that would not be consistent 

with the Auction Price or opening or 

reopening quote determined in the 

Exchange-facilitated Auction. The 

proposed changes would also remove 

impediments to and perfect the 

mechanism of a free and open market 

because DMM Interest that, following an 

Exchange-facilitated Auction, would be 

priced through the Auction Price or 

Auction Collars, as applicable, would be 

cancelled in the same manner that other 

unexecuted orders would be cancelled. 

The Exchange further believes that the 

proposed changes to Rules 7.35C(a) and 

(g) would remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system because the Exchange observed 

improved performance following 

Exchange-facilitated Auctions after the 

Exchange implemented Commentary .03 

to Rule 7.35C. Accordingly, should 

circumstances ever arise again that 

would require the Exchange to facilitate 

any Auctions, which, based on prepandemic experience, would likely be 

rare, the Exchange believes that these 

proposed changes would improve the 

performance of Exchange-facilitated 

Auctions by enabling better engagement 

by the DMMs in both the Auction and 

the immediate after-market while still 

limiting DMM risk. 

III. Proceedings To Determine Whether 

To Disapprove SR–NYSE–2020–89 and 

Grounds for Disapproval Under 

Consideration 

The Commission is instituting 

proceedings pursuant to Section 

19(b)(2)(B) of the Act to determine 

whether the proposal, as modified by 

Amendment No. 1, should be approved 

or disapproved.24 Institution of such 

proceedings is appropriate at this time 

in view of the legal and policy issues 

raised by the proposed rule change, as 

discussed below. Institution of 

disapproval proceedings does not 

indicate that the Commission has 

reached any conclusions with respect to 

any of the issues involved. 

Pursuant to Section 19(b)(2)(B) of the 

Act, the Commission is providing notice 

of the grounds for disapproval under 

consideration. The Commission is 

instituting proceedings to allow for 

additional analysis and input 

concerning the proposed rule change’s 

consistency with the Act 25 and, in 

particular, with Section 6(b)(5) of the 

Act, 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 


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9984 Federal Register / Vol. 86, No. 30 / Wednesday, February 17, 2021 / Notices 

26 Id. 

27Rule 700(c)(2) of the Commission’s Rules of 

Practice provides that ‘‘[t]he Commission, in its sole 

discretion, may determine whether any issues 

relevant to approval or disapproval would be 

facilitated by the opportunity for an oral 

presentation of views.’’ 17 CFR 201.700(c)(2). 

28See Notice, supra note 3. 

mechanism of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest.26

For the reasons discussed above, the 

Commission believes it is appropriate to 

institute proceedings pursuant to 

Section 19(b)(2)(B) of the Act to 

determine whether the proposal should 

be approved or disapproved. 

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, 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 inconsistent 

with Section 6(b)(5) or any other 

provision of the Act, or the rules and 

regulation thereunder. Although there 

do not appear to be any issues relevant 

to approval or disapproval which would 

be facilitated by an oral presentation of 

views, data, and arguments, the 

Commission will consider, pursuant to 

Rule 19b–4, any request for an 

opportunity to make an oral 

presentation.27

Interested persons are invited to 

submit written data, views, and 

arguments regarding whether the 

proposal should be approved or 

disapproved by March 10, 2021. Any 

person who wishes to file a rebuttal to 

any other person’s submission must file 

that rebuttal by March 24, 2021. 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,28 in addition to any other 

comments they may wish to submit 

about the proposed rule change. In 

particular, the Commission seeks 

comment, including where relevant, any 

specific data, statistics, or studies, on 

the following: 

1. The NYSE proposal for its 

exchange-facilitated auctions would 

differ from other primary listing 

markets’ MWCB re-opening processes in 

that it would establish price collars of 

the greater of $0.15 or 10% away from 

the Auction Reference Price, with 

interest that cannot be satisfied within 

the collars being canceled, whereas 

Nasdaq, NYSE Arca, and Cboe BZX 

establish 5% price bands for re-opening 

and then widen those price bands in 

increments of 5% until market interest 

can be satisfied. Should the primary 

listing exchanges harmonize their 

respective processes for reopening 

trading by electronic auction after a halt 

pursuant to the market-wide circuit 

breaker mechanism following a Level 1 

or Level 2 market decline, and if so, 

why? If so, which aspects of the reopening processes following MWCB 

Halts should be harmonized (e.g., 

auction reference price, determination 

of auction match price, width of auction 

collars, or expansions of auction collars) 

and what are the appropriate 

parameters? Should NYSE further 

harmonize its proposed MWCB 

reopening process for exchangefacilitated auctions to align with 

Nasdaq, NYSE Arca, and Cboe BZX on 

the establishment of auction reference 

prices, auction collars levels, and/or the 

limit (or lack thereof) on auction collar 

adjustments? 

2. Is it appropriate for the Exchange 

to derive and expand the lower/upper 

MWCB Auction Collar by subtracting 

from or adding to the Auction Reference 

Price the greater of $0.15 or 10% of the 

Auction Reference Price, which are 

currently wider than the parameters that 

Nasdaq, NYSE Arca, and Cboe BZX use 

to derive and expand their respective 

MWCB auction collars? Are there any 

specific data, statistics, or studies to 

support the Exchange’s belief that the 

wider parameters proposed for MWCB 

Auction Collars are set at appropriate 

levels that would allow the Exchange to 

re-open trading in securities more 

quickly while still reducing the 

potential to re-open at a price that is 

significantly away from the last traded 

price of the security? Are there any 

considerations regarding why the NYSE 

exchange-facilitated MWCB re-openings 

should be handled differently from 

other primary listing markets that list 

equities? 

3. Are the other aspects of the 

proposal appropriate for auctions 

following a Trading Halt? Is it 

appropriate for the Exchange to have the 

authority to facilitate a Trading Halt 

Auction if a security has not re-opened 

by 3:30 p.m., following a MWCB Halt? 

Or should the Exchange afford the DMM 

additional time to open the security? 

4. Should DMM Interest be eligible to 

participate in an Exchange-facilitated 

Auction, if that Auction results in a 

quote? Should DMM Interest be 

canceled when a security opens or 

reopens on a trade? When a security 

opens or reopens, should DMM Interest 

be canceled when the limit price of that 

DMM Interest prices through the 

Auction Price or the Auction Collars? 

Should DMM Interest be canceled when 

it is marketable against contra-side 

unexecuted orders? 

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 rule-comments@

sec.gov. Please include File Number SR– 

NYSE–2020–89 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–NYSE–2020–89. 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–NYSE–2020–89 and should 

be submitted on or before March 10, 

2021. Rebuttal comments should be 

submitted by March 24, 2021. 


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 86, No. 30 / Wednesday, February 17, 2021 / Notices 9985 

29 17 CFR 200.30–3(a)(57). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–03088 Filed 2–16–21; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 11340] 

Bureau of Political-Military Affairs, 

Directorate of Defense Trade Controls: 

Notifications to the Congress of 

Proposed Commercial Export Licenses 

AGENCY: Department of State. 

ACTION: Notice. 

SUMMARY: The Directorate of Defense 

Trade Controls and the Department of 

State give notice that the attached 

Notifications of Proposed Commercial 

Export Licenses were submitted to the 

Congress on the dates indicated. Four 

notifications inadvertently omitted a 

date from their letters, but all were 

confirmed to have been submitted to the 

Congress on August 1, 2020. Where that 

occurred, the date has been added 

within brackets to the letters reproduced 

here. 

DATES: As shown on each of the 34 

letters. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Paula C. Harrison, Directorate of 

Defense Trade Controls (DDTC), 

Department of State at (202) 663–3310; 

or access the DDTC website at https:// 

www.pmddtc.state.gov/ddtc_public and 

select ‘‘Contact DDTC,’’ then scroll 

down to ‘‘Contact the DDTC Response 

Team’’ and select ‘‘Email.’’ Please add 

this subject line to your message, 

‘‘ATTN: Congressional Notification of 

Licenses.’’ 

SUPPLEMENTARY INFORMATION: Section 

36(f) of the Arms Export Control Act (22 

U.S.C. 2776) requires that notifications 

to the Congress pursuant to sections 

36(c) and 36(d) be published in the 

Federal Register in a timely manner. 

The following comprise recent such 

notifications and are published to give 

notice to the public. 

July 7, 2020 

The Honorable Nancy Pelosi, Speaker of the 

House of Representatives 

Dear Madam Speaker: 

Pursuant to Section 36(c) of the Arms 

Export Control Act, the Department of State 

is transmitting certification of a proposed 

license for the export of defense articles, 

including technical data and defense 

services, in the amount of $50,000,000 or 

more. 

The transaction contained in the attached 

certification involves the export of defense 

articles, including technical data and defense 

services, to Germany, Pakistan, and the UK 

to support the sale, delivery, installation, 

operation, training, and maintenance of 

thirteen (13) TPS–77(e)(2) Multi-Role Radar 

Systems (MRR) 

The U.S. government is prepared to license 

the export of these items having taken into 

account political, military, economic, human 

rights, and arms control considerations. 

More detailed information is contained in 

the formal certification which, though 

unclassified, contains business information 

submitted to the Department of State by the 

applicant, publication of which could cause 

competitive harm to the U.S. firm concerned. 

Sincerely, 

Ryan M. Kaldahl, 

Acting Assistant Secretary of State, Bureau of 

Legislative Affairs. 

Enclosure: Transmittal No. DDTC 19–012. 

September 2, 2020 

The Honorable Nancy Pelosi, Speaker of the 

House of Representatives. 

Dear Madam Speaker: 

Pursuant to Section 36(c) of the Arms 

Export Control Act, the Department of State 

is transmitting certification of a proposed 

license for the export of firearms abroad 

controlled under Category I of the U.S. 

Munitions List in the amount of $1,000,000 

or more. 

The transaction contained in the attached 

certification involves the export to the UAE 

of fully automatic 5.56mm rifles. 

The U.S. government is prepared to license 

the export of these items having taken into 

account political, military, economic, human 

rights, and arms control considerations. 

More detailed information is contained in 

the formal certification which, though 

unclassified, contains business information 

submitted to the Department of State by the 

applicant, publication of which could cause 

competitive harm to the U.S. firm concerned. 

Sincerely, 

Ryan M. Kaldahl, 

Acting Assistant Secretary of State, Bureau of 

Legislative Affairs. 

Enclosure: Transmittal No. DDTC 19–018. 

[August 1, 2020] 

The Honorable Nancy Pelosi, Speaker of the 

House of Representatives. 

Dear Madam Speaker: 

Pursuant to Section 36(c) of the Arms 

Export Control Act, please find enclosed a 

certification of a proposed license for the 

export of defense articles, including technical 

data and defense services, in the amount of 

$50,000,000 or more. 

The transaction contained in the attached 

certification involves the export of defense 

articles, including technical data and defense 

services, to the UAE and the UK to support 

the delivery, design, development, 

installation, integration, maintenance, 

production, repair, retrofit, sales, and support 

of the DB–110 and MS–110 Airborne 

Reconnaissance System, including their 

associated ground station and datalink with 

corresponding software. 

The U.S. government is prepared to license 

the export of these items having taken into 

account political, military, economic, human 

rights, and arms control considerations. 

More detailed information is contained in 

the formal certification which, though 

unclassified, contains business information 

submitted to the Department of State by the 

applicant, publication of which could cause 

competitive harm to the U.S. firm concerned. 

Sincerely, 

Ryan M. Kaldahl, 

Acting Assistant Secretary of State, Bureau of 

Legislative Affairs. 

Enclosure: Transmittal No. DDTC 19–042. 

August 13, 2020 

The Honorable Nancy Pelosi, Speaker of the 

House of Representatives. 

Dear Madam Speaker: 

Pursuant to Section 36(c) of the Arms 

Export Control Act, please find enclosed a 

certification of a proposed license 

amendment for the export of defense articles, 

including technical data and defense 

services, in the amount of $50,000,000 or 

more. 

The transaction contained in the attached 

certification involves the export of defense 

articles, including technical data and defense 

services, to the UAE to support the delivery 

and operation of the Predator XP (EP) 

unmanned aircraft system. 

The U.S. government is prepared to license 

the export of these items having taken into 

account political, military, economic, human 

rights, and arms control considerations. 

More detailed information is contained in 

the formal certification which, though 

unclassified, contains business information 

submitted to the Department of State by the 

applicant, publication of which could cause 

competitive harm to the U.S. firm concerned. 

Sincerely, 

Ryan M. Kaldahl, 

Acting Assistant Secretary of State, Bureau of 

Legislative Affairs. 

Enclosure: Transmittal No. DDTC 19–048. 

July 23, 2020 

The Honorable Nancy Pelosi, Speaker of the 

House of Representatives. 

Dear Madam Speaker: 

Pursuant to Section 36(c) of the Arms 

Export Control Act, please find enclosed a 

certification of a proposed license for the 

export of firearms, parts, and components 

abroad controlled under Category I of the 

U.S. Munitions List in the amount of 

$1,000,000 or more. 

The transaction contained in the attached 

certification involves the export to Jamaica of 

5.56mm automatic carbines and major 

components. 


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