Federal Register / Vol. 88, No. 166 / Tuesday, August 29, 2023 / Notices 59551 

1See Letter from Hope M. Jarkowski, General 

Counsel, New York Stock Exchange to Vanessa 

Countryman, Secretary, Commission, dated August 

18, 2023. 

2 17 CFR 242.602. 

3See Securities Exchange Act Release No. 98169 

(August 18, 2023) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change to Amend 

Rule 7.44) (‘‘Notice’’). 

4NYSE National Rule 7.44(a)(3) defines a Retail 

Order as ‘‘an agency order or a riskless principal 

order that meets the criteria of FINRA Rule 5320.03 

that originates from a natural person and is 

submitted by an RMO provided that no change is 

made to the terms of the order with respect to price 

or side of market and that the order does not 

originate from a trading algorithm or other 

computerized methodology.’’ 

5NYSE National Rule 7.44(a)(3). This section of 

the NYSE National Rule also defines an RMO or 

Retail Member Organization as ‘‘an ETP Holder that 

is approved by the Exchange under this rule to 

submit Retail Orders.’’ RMOs would be able to 

submit a Retail Order to the Exchange, which 

interacts, to the extent possible, with available 

contra-side RPI orders and may interact with other 

liquidity on the Exchange, depending on the Retail 

Order’s instructions. The segmentation in the 

Program would allow retail order flow to receive 

potential price improvement. See Notice at 2. 

6NYSE National Rule 7.31(d)(3). 

7NYSE National Rule 7.44(e). 

8 Id. 

9See Securities Exchange Act Release No. 14415 

(January 26, 1978), 43 FR 4342 (February 1, 1978). 

Regulation NMS redesignated Rule 11Ac1–1 as 

Regulation NMS Rule 602, but left the substance of 

the rule largely intact. See Securities Exchange Act 

Release No. 51808 (June 9, 2005), 70 FR 37496, 

37570 (June 29, 2005) (File No. S7–10–04). 

10See 17 CFR 242.602(a)(1). The Quote Rule 

further provides that nothing shall preclude any 

national securities exchange from making available 

to vendors indications of interest or bids and offers 

for a subject security at any time such exchange is 

not required to do so. See 17 CFR 242.602(a)(4). 

11See, e.g., Cboe BYX Exchange, Inc. Rule 

11.24(e); Nasdaq BX, Inc. Rule 4780(e); Investors 

Exchange LLC (‘‘IEX’’) Rule Rule 11.232(f); New 

York Stock Exchange LLC Rule 7.44(j). The 

Commission previously granted IEX an exemption 

from the Quote Rule in connection with the 

dissemination of a similar liquidity indicator 

pursuant to its retail price improvement program. 

See Securities Exchange Act Release No. 93217 

(September 30, 2021), 86 FR 55663 (October 6, 

2021) (Order Granting Application of Investors 

Exchange LLC for a Limited Exemption from Rule 

602 of Regulation NMS for its Retail Price 

Improvement Program). 

12See e.g., Cboe BYX Exchange, Inc. Rule 

11.24(e); Nasdaq BX, Inc. Rule 4780(e); and New 

York Stock Exchange LLC Rule 7.44(j). 13See, e.g., IEX Rule 11.232(f); and New York 

Stock Exchange LLC Rule 7.44(j). 14 17 CFR 242.602(d). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98206] 

Order Granting Application of NYSE 

National, Inc. for a Limited Exemption 

From Rule 602 of Regulation NMS for 

Its Retail Liquidity Program 

August 23, 2023. 

By letter dated August 18, 2023 (the 

‘‘Application’’),1 NYSE National, Inc. 

(‘‘NYSE National’’ or the ‘‘Exchange’’) 

requests a limited exemption from the 

requirements of Rule 602 of Regulation 

NMS 2 (the ‘‘Quote Rule’’) for its 

planned dissemination of a Retail 

Liquidity Identifier (‘‘RLI’’) that would 

contain certain information regarding 

non-displayed Retail Price Improvement 

Orders (‘‘RPI Orders’’) pursuant to the 

NYSE National’s Retail Liquidity 

Program (the ‘‘Program’’).3

The purpose of the Program is to 

attract retail order flow to the Exchange 

by allowing ETP Holders to provide 

potential price improvement to retail 

investor orders (‘‘Retail Orders’’) 4 in the 

form of an RPI Order. An RPI Order is 

defined as ‘‘an MPL Order that is 

eligible to trade only with incoming 

Retail Orders submitted by an RMO.’’ 5

An MPL or Mid-Point Liquidity Order is 

defined as ‘‘[a] Limit Order to buy (sell) 

that is not displayed and does not route, 

with a working price at the lower 

(higher) of the midpoint of the 

[protected bid and protected offer] 

PBBO or its limit price.’’ 6

When there is an RPI Order in a 

particular security that is eligible to 

trade at the midpoint of the PBBO, the 

Exchange would disseminate the RLI 

through proprietary data feeds and 

through the Consolidated Quotation 

System or the UTP Quote Data Feed, as 

applicable.7 The RLI would reflect the 

symbol for the particular security and 

the side (buy or sell) of the RPI interest 

but would not include the price or size 

of the RPI interest.8

When the Commission adopted the 

Quote Rule (then Rule 11Ac1–1) it 

sought to facilitate the establishment of 

a comprehensive composite quotation 

system across market centers as an 

integral component of a national market 

system.9 The Quote Rule requires 

national securities exchanges and 

national securities associations to, 

among other things, collect, process, 

and make available to vendors the best 

bid, the best offer, and aggregate 

quotation sizes for each subject security 

listed or admitted to unlisted trading 

privileges that is communicated on any 

national securities exchange by any 

responsible broker or dealer.10

Regulation NMS defines a ‘‘bid’’ or 

‘‘offer’’ as the bid price or the offer price 

communicated by a member of a 

national securities exchange or member 

of a national securities association to 

any broker or dealer, or to any customer, 

at which it is willing to buy or sell one 

or more round lots of an NMS security, 

as either principal or agent, but shall not 

include indications of interest. 

Other exchanges that operate retail 

liquidity programs also disseminate 

retail liquidity identifiers in order to 

attract retail order flow.11 NYSE 

National’s RLI would serve a similar 

purpose to the identifiers currently 

disseminated by other exchanges 

operating retail liquidity programs,12

including one that likewise indicates 

the availability of potentially priceimproving interest at the midpoint,13 as 

it would inform market participants 

about the availability of potential price 

improvement opportunities for Retail 

Orders The NYSE National RLI will 

indicate the availability of RPI Orders 

priced at the midpoint, which can 

potentially benefit retail investors by 

offering price improvement 

opportunities. NYSE National’s 

Program, like other exchanges’ retail 

liquidity programs, allows for the 

limited segmentation of retail order flow 

for the express purpose of allowing 

NYSE National to compete with other 

exchanges and off-exchange market 

makers to provide price improvement to 

retail customers, thus ensuring that 

retail customers can benefit from the 

willingness of liquidity providers to 

give their orders better prices. 

Under Rule 602(d) of Regulation 

NMS, the Commission may exempt from 

the provisions of the Quote Rule, either 

unconditionally or on specified terms 

and conditions, a national securities 

exchange (among others) if it determines 

that such exemption is consistent with 

the public interest, the protection of 

investors and the removal of 

impediments to and perfection of the 

mechanism of a national market 

system.14

The Commission hereby grants the 

Exchange a limited exemption from the 

Quote Rule to operate the Program and 

disseminate the RLI without having to 

include RPI Order interest in NYSE 

National’s best bid or offer. For the 

reasons discussed below, the 

Commission has determined that it is 

consistent with the public interest, the 

protection of investors and the removal 

of impediments to and perfection of the 

mechanism of a national market system 

to provide a limited exemption from 

Rule 602 of Regulation NMS with 

respect to NYSE National’s RLI 

disseminated under the Program. 

In light of the opportunity for retail 

customers to obtain potentially 

substantial price improvement at 

midpoint prices under NYSE National’s 

Program, and in the interests of 

facilitating the ability of NYSE National 

to compete to be able to provide that 

opportunity to Retail Orders in the 

limited context of the Program, 

providing a limited exemption should 

promote competition between 


ddrumheller on DSK120RN23PROD with NOTICES1
59552 Federal Register / Vol. 88, No. 166 / Tuesday, August 29, 2023 / Notices 

15The RLI will not reveal the presence of other 

midpoint interest. Non-displayed midpoint interest 

could be present on NYSE National outside of the 

Program, and Retail Orders will be able to trade 

with that interest. 

16See 17 CFR 242.611. 17 17 CFR 200.30–3(a)(28). 

exchanges and between NYSE National 

and off-exchange market makers. 

Broad dissemination of the RLI 

through the Consolidated Quotation 

System or the UTP Quote Data Feed, as 

applicable, should benefit retail 

customers by providing broker-dealers 

that route Retail Orders with limited 

supplemental information about the 

availability of price improvement 

opportunities for Retail Orders under 

the Program.15 To the extent the RLI is 

successful in attracting Retail Orders to 

the Program, the increased competition 

should benefit retail customers by 

providing a mechanism through which 

they can receive the better prices for 

their orders from willing liquidity 

providers. This exemption also should 

benefit market participants that seek the 

opportunity to interact directly with 

Retail Orders, as any liquidity provider 

may submit RPI Orders to provide better 

prices to retail customers on the 

Exchange. Quotations that Rule 602 

requires to be included in an exchange’s 

best bid and offer are used to establish 

the national best bid and offer for an 

NMS stock and are eligible for 

protection against trade-throughs under 

Rule 611 of Regulation NMS.16 Such 

quotations therefore must be accessible 

to all market participants on terms that 

are not unfair or unreasonably 

discriminatory. In contrast, access to 

RPI Order interest is limited to Retail 

Orders because many market 

participants may be willing to offer 

liquidity to retail investors at better 

prices than they would be willing to 

offer all market participants. RPI Order 

interest thereby can benefit retail 

investors by giving them an opportunity 

to receive better prices on exchanges, 

but it is unsuitable for other purposes, 

including establishing a national best 

bid and offer and eligibility for Rule 611 

protection. 

Accordingly, it is ordered, pursuant to 

Rule 602(d) of Regulation NMS, that 

NYSE National is exempt from Rule 602 

of Regulation NMS with respect to 

NYSE National’s Program specifically 

concerning the dissemination of the RLI 

to advertise the presence of RPI Order 

interest under the Program without 

including RPI Orders in the Exchange’s 

quotation. This exemption is 

conditioned on the Exchange continuing 

to conduct the Program substantially as 

described in the Exchange’s request for 

exemptive relief and the current 

applicable Exchange rules, including 

the dissemination of the RLI through the 

Consolidated Quotation System or the 

UTP Quote Data Feed, as applicable. 

Any changes thereto may cause the 

Commission to reconsider this 

exemption. The foregoing exemption is 

subject to modification or revocation at 

any time if the Commission determines 

that such action is necessary or 

appropriate in furtherance of the 

purposes of the Exchange Act. 

For the Commission, by the Division of 

Trading and Markets pursuant to delegated 

authority.17

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–18550 Filed 8–28–23; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #18096 and #18097; 

ILLINOIS Disaster Number IL–00087] 

Administrative Declaration of a 

Disaster for the State of Illinois 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of Illinois dated 08/23/ 

2023. 

Incident: Emerald Village Senior 

Living Facility Fire. 

Incident Period: 07/14/2023. 

DATES: Issued on 08/23/2023. 

Physical Loan Application Deadline 

Date: 10/23/2023. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 05/23/2024. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Recovery & 

Resilience, U.S. Small Business 

Administration, 409 3rd Street SW, 

Suite 6050, Washington, DC 20416, 

(202) 205–6734. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

Administrator’s disaster declaration, 

applications for disaster loans may be 

filed at the address listed above or other 

locally announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Cook. 

Contiguous Counties: 

Illinois: DuPage, Kane, Lake, 

McHenry, Will. 

Indiana: Lake. 

The Interest Rates are: 

Percent 

For Physical Damage: 

Homeowners with Credit Available Elsewhere .................... 5.000 

Homeowners without Credit 

Available Elsewhere ............ 2.500 

Businesses with Credit Available Elsewhere .................... 8.000 

Businesses without Credit 

Available Elsewhere ............ 4.000 

Non-Profit Organizations with 

Credit Available Elsewhere 2.375 

Non-Profit Organizations without Credit Available Elsewhere ................................... 2.375 

For Economic Injury: 

Businesses & Small Agricultural Cooperatives without 

Credit Available Elsewhere 4.000 

Non-Profit Organizations without Credit Available Elsewhere ................................... 2.375 

The number assigned to this disaster 

for physical damage is 18096 5 and for 

economic injury is 18097 0. 

The States which received an EIDL 

Declaration # are Illinois, Indiana. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

Isabella Guzman, 

Administrator. 

[FR Doc. 2023–18580 Filed 8–28–23; 8:45 am] 

BILLING CODE 8026–09–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #18098 and #18099; 

ILLINOIS Disaster Number IL–00088] 

Administrative Declaration of a 

Disaster for the State of Illinois 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of Illinois dated 08/23/ 

2023. 

Incident: Arden Apartment Complex 

Fire. 

Incident Period: 07/28/2023. 

DATES: Issued on 08/23/2023. 

Physical Loan Application Deadline 

Date: 10/23/2023. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 05/23/2024. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 


ddrumheller on DSK120RN23PROD with NOTICES1