Federal Register / Vol. 88, No. 165 / Monday, August 28, 2023 / Notices 58625 

1See Docket No. RM2018–3, Order Adopting 

Final Rules Relating to Non-Public Information, 

June 27, 2018, Attachment A at 19–22 (Order No. 

4679). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The Exchange notes that this proposed change 

modifies a Pillar rule (i.e., with a ‘‘P’’ modifier) that 

has not yet been implemented. The Exchange 

anticipates migrating to its Pillar trading platform 

beginning on October 23, 2023. As is the case with 

all Pillar rules, this proposed rule change (as well 

as the entire Rule 928NYP) will not be implemented 

until all other Pillar-related rule filings are 

approved or operative, as applicable, and the 

Exchange announces the migration of underlying 

symbols to Pillar by Trader Update. 

5An ATP Holder is a natural person, sole 

proprietorship, partnership, corporation, limited 

liability company or other organization, in good 

standing, which has been issued an ATP, and 

references to ‘‘member’’, and ‘‘member 

organization’’ as those terms are used in the Rules 

of the Exchange should be deemed to be references 

to ATP Holders. See Rule 900.2NY. An ATP is an 

American Trading Permit issued by the Exchange 

for effecting approved securities transactions on the 

Exchange’s Trading Facilities. See id. The Exchange 

notes that an ATP may be acting as a Specialist, 

which market participant is subject to heightened 

requirements. See, e.g., Rule 925.1NYP(b), (c). 

6See infra note 17 (for description of orders 

marked as GTX). 

7See proposed Rules 928NYP(c)(2)(B) and 

(c)(2)(C)(iii). 

8See Securities Exchange Act Release No. 98038 

(August 1, 2023), 88 FR 52231 (Augst 7, 2023) (SR– 

NYSEARCA–2023–49) (immediately effective rule 

change to allow market participants to exclude 

orders marked as GTX from the Activity-Based Risk 

Controls, per Rule 6.40P–O). 

9See Rule 928NYP(a)(3)(A)–(C) (describing the 

three potential Activity-Based Risk Controls: 

Transaction-Based Risk Limit; Volume-Based Risk 

Limit; and Percentage-Based Risk Limit). 

proceeding, pursuant to 39 U.S.C. 505 

(Public Representative). Section II also 

establishes comment deadline(s) 

pertaining to each request. 

The public portions of the Postal 

Service’s request(s) can be accessed via 

the Commission’s website (http://

www.prc.gov). Non-public portions of 

the Postal Service’s request(s), if any, 

can be accessed through compliance 

with the requirements of 39 CFR 

3011.301.1

The Commission invites comments on 

whether the Postal Service’s request(s) 

in the captioned docket(s) are consistent 

with the policies of title 39. For 

request(s) that the Postal Service states 

concern Market Dominant product(s), 

applicable statutory and regulatory 

requirements include 39 U.S.C. 3622, 39 

U.S.C. 3642, 39 CFR part 3030, and 39 

CFR part 3040, subpart B. For request(s) 

that the Postal Service states concern 

Competitive product(s), applicable 

statutory and regulatory requirements 

include 39 U.S.C. 3632, 39 U.S.C. 3633, 

39 U.S.C. 3642, 39 CFR part 3035, and 

39 CFR part 3040, subpart B. Comment 

deadline(s) for each request appear in 

section II. 

II. Docketed Proceeding(s) 

1. Docket No(s).: MC2023–235 and 

CP2023–238; Filing Title: USPS Request 

to Add Priority Mail Express, Priority 

Mail & USPS Ground Advantage 

Contract 5 to Competitive Product List 

and Notice of Filing Materials Under 

Seal; Filing Acceptance Date: August 21, 

2023; Filing Authority: 39 U.S.C. 3642, 

39 CFR 3040.130 through 3040.135, and 

39 CFR 3035.105; Public Representative: 

Jennaca D. Upperman; Comments Due: 

August 29, 2023. 

2. Docket No(s).: MC2023–236 and 

CP2023–239; Filing Title: USPS Request 

to Add Priority Mail & USPS Ground 

Advantage Contract 31 to Competitive 

Product List and Notice of Filing 

Materials Under Seal; Filing Acceptance 

Date: August 21, 2023; Filing Authority: 

39 U.S.C. 3642, 39 CFR 3040.130 

through 3040.135, and 39 CFR 3035.105; 

Public Representative: Kenneth R. 

Moeller; Comments Due: August 29, 

2023. 

3. Docket No(s).: MC2023–238 and 

CP2023–241; Filing Title: USPS Request 

to Add USPS Ground Advantage 

Contract 2 to Competitive Product List 

and Notice of Filing Materials Under 

Seal; Filing Acceptance Date: August 21, 

2023; Filing Authority: 39 U.S.C. 3642, 

39 CFR 3040.130 through 3040.135, and 

39 CFR 3035.105; Public Representative: 

Kenneth R. Moeller; Comments Due: 

August 29, 2023. 

This Notice will be published in the 

Federal Register. 

Erica A. Barker, 

Secretary. 

[FR Doc. 2023–18473 Filed 8–25–23; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98197; File No. SR– 

NYSEAMER–2023–41] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Modify Rule 928NYP 

August 22, 2023. 

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 August 

17, 2023, NYSE American LLC (‘‘NYSE 

American’’ or ‘‘Exchange’’) filed with 

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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to modify 

Rule 928NYP (Pre-Trade and ActivityBased Risk Controls) to allow certain 

order types to be excluded from the 

Activity-Based Risk Controls. 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 modify 

Rule 928NYP (Pre-Trade and ActivityBased Risk Controls) to allow certain 

order types to be excluded from the 

Activity-Based Risk Controls.4

Specifically, the Exchange proposes to 

allow ATP Holders 5 the ability to 

exclude orders marked as GTX 6 from 

counting towards the limits established 

by the Activity-Based Risk Controls and 

to exclude GTX orders from cancellation 

when an Activity-Based Risk Limit is 

breached.7 The Exchange notes that a 

substantively similar change was 

recently adopted on its affiliated 

exchange, NYSE Arca, Inc. (‘‘NYSE 

Arca’’) and therefore this proposal raises 

no new or novel issues not previously 

considered by the Commission.8

The Exchange offers ATP Holders the 

option of utilizing Activity-Based Risk 

Controls to assist ATP Holders in 

managing risk related to submitting 

orders during periods of increased and 

significant trading activity.9 ATP 


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58626 Federal Register / Vol. 88, No. 165 / Monday, August 28, 2023 / Notices 

10See Rule 928NYP(c)(2)(A). 

11See Rule 928NYP(c)(2)(B). 

12See Rule 928NYP(c)(2)(C) (describing the 

potential automated breach actions of Notification 

Only, Block Only, and Cancel and Block). 

13See Rule 928NYP(c)(2)(B). 

14See id. See also Rule 900.3NYP(b)(2) (IOC) and 

(3) (FOK). 

15See Rule 928NYP(c)(2)(C)(iii). 

16See proposed Rule 928NYP(c)(2)(B) (providing, 

in relevant part, that an ATP Holder ‘‘may opt to 

exclude any orders designated IOC, FOK, or GTX 

from being considered by a Trade Counter.’’) 

17See proposed Rule 928NYP(c)(2)(C)(iii) 

(providing, in relevant part, that an ATP Holder 

‘‘may opt to exclude orders designated as GTX from 

being cancelled.’’). 

18Per Rule 971.1NYP regarding Single-Leg CUBE 

Auctions, an ATP Holder may respond to a CUBE 

Auction (‘‘Auction’’) with an order marked as GTX, 

which order is not displayed and which must be 

entered during the Response Time Interval of the 

Auction and may include an AuctionID to specify 

the CUBE Order with which it would like to trade. 

See Rule 971.1NYP(c)(1)(C)(i). A CUBE GTX Order 

will cancel after executing with the CUBE Order to 

the extent possible. Similarly, per Rule 

980NYP(b)(2), an ATP Holder may designate an 

Electronic Complex Order (or ECO) as GTX. A 

‘‘COA GTX Order’’ is an order sent in response to 

a Complex Order Auction (or COA), which order is 

not displayed and which must be entered during 

the Response Time Interval of a COA. The COA 

GTX Order will cancel after executing with the 

COA Order to the extent possible. See Rule 

980NYP(b)(2)(C). The Exchange notes that NYSE 

Arca does not offer the CUBE Auction or CUBE 

GTX Orders. 

19See (pre-Pillar) Rule 928NY, Commentary .01 

(providing, in relevant part, that upon the triggering 

of an established risk limit, the Exchange would 

cancel all open orders and quotes in the affected 

series but would exclude from such cancellation 

any ‘‘orders entered in response to an electronic 

auction that are valid only for the duration of the 

auction (‘GTX’)’’, which includes CUBE GTX 

Orders and COA GTX Orders). 

20 15 U.S.C. 78f(b). 21 15 U.S.C. 78f(b)(5). 

Holders acting as Specialist must apply 

one of the Activity-Based Risk Controls 

to all of its orders and quotes, whereas 

an ATP Holder not acting as a Specialist 

may, but is not required to, apply one 

of the Activity-Based Risk Controls to its 

orders.10 To determine when an 

Activity-Based Risk Control has been 

breached, the Exchange will maintain a 

Trade Counter that will be incremented 

every time an order (or quote) trades, 

including any leg of a Complex Order, 

and will aggregate the number of 

contracts traded during each such 

execution.11 When designating one of 

the three Activity-Based Risk Controls, 

an ATP Holder must indicate the action 

that it would like the Exchange to take 

if an Activity-Based Risk Limit is 

exceeded.12 Currently, the Exchange 

affords ATP Holders the ability to 

exclude certain orders from being 

considered by a Trade Counter.13 The 

order types that an ATP Holder may opt 

to exclude are orders designated as IOC 

or FOK, which order types are designed 

to cancel if not executed on arrival.14 In 

addition, the Exchange exempts certain 

orders from being cancelled or 

blocked—specifically Auction-Only 

orders (submitted solely for the purpose 

of being executed in an opening 

auction) and GTC Orders, which by 

their terms are meant to eventually 

execute unless specifically cancelled by 

the order-sender.15

The Exchange proposes to modify 

Rule 928NYP(c)(2)(B) to add GTX to the 

order types that may be excluded by 

Trade Counters in tracking ActivityBased Risk Controls.16 In addition, for 

ATP Holders that select the automated 

breach action of ‘‘Cancel and Block,’’ 

the Exchange proposes to modify Rule 

928NYP(c)(2)(C)(iii) to provide ATP 

Holders the option of instructing the 

Exchange not to cancel unexecuted GTX 

orders in the event of a breach.17

An order marked GTX, such as a GTX 

order submitted in response to a CUBE 

Order (‘‘CUBE GTX’’) or a COA GTX 

Order submitted in response to a 

Complex Order Auction (or COA), will 

cancel after executing to the extent 

possible with a CUBE Order, or a COA 

Order in a Complex Order Auction, as 

applicable (collectively, ‘‘GTX 

orders’’).18 As such, GTX orders are 

never ranked (as resting interest) in the 

Consolidated Book. Because GTX orders 

are submitted for the sole purposes of 

executing (to the extent possible) with 

either a CUBE Order or a COA Order 

before cancelling, the Exchange believes 

providing ATP Holders the option of 

exempting these orders from the 

Activity-Based Risk Controls would 

enable these ATP Holders to exclude 

GTX orders from being counted and 

avoid potentially triggering their risk 

settings (prematurely), resulting in the 

cancellation of open orders. Likewise, 

the Exchange believes that allowing 

ATP Holders to instruct the Exchange 

not to cancel any unexecuted GTX 

orders if their risk setting is breached 

would likewise afford such ATP 

Holders additional flexibility. This 

proposed handling of GTX orders is 

consistent with how the Exchange 

currently handles GTX orders per (prePillar) Commentary .01 to Rule 928NY 

(Risk Limitation Mechanism).19

The Exchange believes that providing 

ATP Holders this additional flexibility 

may encourage more ATP Holders to 

utilize the risk settings, which benefits 

all market participants. The Exchange 

also believes that the proposed change 

would result in risk settings that may be 

better calibrated to suit the needs of 

certain ATP Holders (i.e., those that 

routinely utilize GTX orders) and 

should encourage ATP Holders to direct 

additional order flow and liquidity to 

the Exchange. 

Implementation 

This proposed change modifies a 

Pillar rule (i.e., with a ‘‘P’’ modifier). As 

is the case with all Pillar rules, this 

proposed rule change (as well as the 

entire Rule 928NYP) will not be 

implemented until all other Pillarrelated rule filings are approved or 

operative, as applicable, and the 

Exchange announces the migration of 

underlying symbols to Pillar by Trader 

Update. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with section 6(b) 

of the Securities Exchange Act of 1934 

(the ‘‘Act’’),20 in general, and furthers 

the objectives of section 6(b)(5) of the 

Act,21 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 regulating, clearing, 

settling, processing information with 

respect to, and 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 that the 

proposed rule change removes 

impediments to and perfects the 

mechanism of a free and open market by 

providing ATP Holders greater control 

and flexibility over setting their risk 

tolerance, which may enhance the 

efficacy of the risk settings. Orders 

marked GTX, including CUBE GTX 

Orders and COA GTX Orders, will 

cancel after executing to the extent 

possible with a COA Order as part of a 

Complex Order Auction. As such, GTX 

orders are never ranked (as resting 

interest) in the Consolidated Book. The 

Exchange believes that certain market 

participants utilize GTX orders to access 

liquidity on the Exchange. Thus, the 

proposed change is designed to 

accommodate participants that utilize 

GTX orders in this manner by enabling 

them to exclude GTX orders from being 

counted and avoid potentially triggering 

their risk settings (prematurely), 

resulting in the cancellation of open 

orders. In addition, allowing ATP 

Holders the option to exclude 

unexecuted GTX orders from being 

cancelled in the event of a breach would 

allow ATP Holders to utilize this order 

type without fear of such orders being 

cancelled before having the opportunity 

to trade in a Complex Order Auction. As 

noted herein, this proposed handling of 


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Federal Register / Vol. 88, No. 165 / Monday, August 28, 2023 / Notices 58627 

22 15 U.S.C. 78s(b)(3)(A)(iii). 

23 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires the Exchange to give the 

Commission written notice of its 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. 24 17 CFR 200.30–3(a)(12). 

GTX orders (i.e., excluding such orders 

from cancellation upon triggering of a 

risk setting) is consistent with how the 

Exchange currently handles GTX orders 

per (pre-Pillar) Commentary .01 to Rule 

928NY (Risk Limitation Mechanism). 

The Exchange believes that providing 

ATP Holders this additional flexibility 

may encourage more ATP Holders to 

utilize the risk settings, which benefits 

all market participants. Further, the 

proposed change would promote just 

and equitable principles of trade 

because it would result in risk settings 

that may be better calibrated to suit the 

needs of certain ATP Holders (i.e., those 

that routinely utilize GTX orders) and 

should encourage ATP Holders to direct 

additional order flow and liquidity to 

the Exchange. To the extent additional 

order flow is submitted to the Exchange 

as a result of the proposed change, all 

market participants stand to benefit 

from increased trading. The Exchange 

notes that an ATP Holder has the option 

of utilizing risk settings for all orders 

submitted to the Exchange and, as 

proposed, would have the additional 

option of excluding from these risk 

settings any GTX orders in a given 

options class submitted to the Exchange. 

This proposed change, which was 

specifically requested by some ATP 

Holders, would foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, and 

processing information with respect to, 

and facilitating transactions in, 

securities as it will be available to all 

ATP Holders and may encourage more 

ATP Holders to utilize this enhanced 

functionality to the benefit of all market 

participants. 

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 

Exchange is proposing a market 

enhancement that would provide ATP 

Holders with greater control and 

flexibility over setting their risk 

tolerance and, potentially, more 

protection over risk exposure. The 

proposal is structured to offer the same 

enhancement to all ATP Holders and 

would not impose a competitive burden 

on any participant. The Exchange does 

not believe that the proposed 

enhancement to the existing ActivityBased Risk Controls would impose a 

burden on competing options 

exchanges. Rather, the availability of 

these controls may foster more 

competition. Specifically, the Exchange 

notes that it operates in a highly 

competitive market in which market 

participants can readily favor competing 

venues. When an exchange offers 

enhanced functionality that 

distinguishes it from the competition 

and participants find it useful, it has 

been the Exchange’s experience that 

competing exchanges will move to 

adopt similar functionality. Thus, the 

Exchange believes that this type of 

competition amongst exchanges is 

beneficial to the marketplace as a whole 

as it can result in enhanced processes, 

functionality, and technologies. 

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)(iii) of the Act 22 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.23

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. 

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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

NYSEAMER–2023–41 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–2023–41. 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 (https://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 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–NYSEAMER–2023–41 and should 

be submitted on or before September 18, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–18430 Filed 8–25–23; 8:45 am] 

BILLING CODE 8011–01–P 


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