Federal Register / Vol. 88, No. 173 / Friday, September 8, 2023 / Notices 62113 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4Rule 6.91P–O(a)(7) defines an ‘‘Electronic 

Complex Order’’ or ‘‘ECO’’ to mean any Complex 

Order, as defined in Rule 6.62P–O (f). Rule 6.62P– 

O(f) (providing a Complex Order is ‘‘any order 

involving the simultaneous purchase and/or sale of 

two or more option series in the same underlying 

security, for the same account, in a ratio that is 

equal to or greater than one-to-three (.333) and less 

than or equal to three-to-one (3.00) and for the 

purpose of executing a particular investment 

strategy.’’). 

5See proposed Rule 6.91P–O(g)(1) (Complex 

Strategy Limits). A ‘‘complex strategy’’ means a 

particular combination of leg components and their 

ratios to one another. New complex strategies can 

be created when the Exchange receives either a 

request to create a new complex strategy or an ECO 

with a new complex strategy. See Rule 6.91P– 

O(a)(4). 

6See, e.g., Cboe Rule 5.33(a) (providing, in its 

definition of ‘‘complex strategy’’ that Cboe ‘‘may 

limit the number of new complex strategies that 

may be in the [Cboe] System or entered for any 

EFID (which EFID limit would be the same for all 

Users) at a particular time’’). 

7An Options Trading Permit or ‘‘OTP’’ is issued 

by the Exchange for effecting approved securities 

transactions on the Exchange. See Rule 1.1. An 

‘‘OTP Holder’’ is a natural person, in good standing, 

who has been issued an OTP and an ‘‘OTP Firm’’ 

is a sole proprietorship, partnership, corporation, 

limited liability company or other organization in 

good standing that holds an OTP or upon whom an 

individual OTP Holder has conferred trading 

privileges on the Exchange. See id. The Exchange 

notes that an OTP may be acting as a Market Maker, 

which market participant is subject to heightened 

requirements. See, e.g., Rule 6.37AP–O(b), (c). 

8Per Rule 1.1, an MPID refers to the identifier 

assigned to the orders and quotes of a single OTP 

Holder or OTP Firm for the execution and clearing 

of trades on the Exchange by that permit holder. An 

OTP Holder or OTP Firm may obtain multiple 

MPIDs and each such MPID may be associated with 

one or more sub-identifiers of that MPID.’’ See id. 

Public Representative: Jennaca D. 

Upperman; Comments Due: September 

8, 2023. 

2. Docket No(s).: MC2023–252 and 

CP2023–255; Filing Title: USPS Request 

to Add Priority Mail & USPS Ground 

Advantage Contract 44 to Competitive 

Product List and Notice of Filing 

Materials Under Seal; Filing Acceptance 

Date: August 30, 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: September 

8, 2023. 

3. Docket No(s).: MC2023–253 and 

CP2023–256; Filing Title: USPS Request 

to Add Priority Mail & USPS Ground 

Advantage Contract 45 to Competitive 

Product List and Notice of Filing 

Materials Under Seal; Filing Acceptance 

Date: August 30, 2023; Filing Authority: 

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

through 3040.135, and 39 CFR 3035.105; 

Public Representative: Christopher C. 

Mohr; Comments Due: September 8, 

2023. 

This Notice will be published in the 

Federal Register. 

Erica A. Barker, 

Secretary. 

[FR Doc. 2023–19360 Filed 9–7–23; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98278; File No. SR– 

NYSEARCA–2023–56] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Modify Rule 6.91P– 

O(g)(1) 

September 1, 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 

18, 2023, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III 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 6.91P–O(g)(1) to expand the 

existing Complex Strategy Limit. 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 6.91P–O(g) regarding risk checks of 

Electronic Complex Orders (or ECOs) to 

expand the existing Complex Strategy 

Limit.4 Specifically, the Exchange 

proposes to impose a limit on complex 

strategies per underlying symbol, as 

described below.5 The Exchange also 

notes that at least one other options 

exchange likewise may impose a limit 

on new complex order strategies.6

Rule 6.91P–O(g) describes the ‘‘ECO 

Risk Checks,’’ which are designed to 

help OTP Holders and OTP Firms 

(collectively OTPs) to effectively 

manage risk when trading ECOs.7 Rule 

6.91P–O(g)(1) sets forth the ‘‘Complex 

Strategy Limit,’’ which establishes a 

limit on the maximum number of new 

complex strategies that may be 

requested to be created per Market 

Participant Identifier or MPID, which 

limit would be announced by Trader 

Update.8 Under current functionality, 

when an MPID reaches the limit on the 

maximum number of new complex 

strategies, the Exchange rejects all 

requests to create new complex 

strategies from that MPID for the rest of 

the trading day. 

Notwithstanding the established 

Complex Strategy Limit, Rule 6.91P– 

O(g)(1) also authorizes the Exchange to 

reject a request to create a new complex 

strategy from any MPID whenever the 

Exchange determines it is necessary in 

the interests of a fair and orderly 

market. The established Complex 

Strategy Limit (the ‘‘Strategy Limit’’), 

and the Exchange’s discretion related 

thereto, is a system protection tool that 

enables the Exchange to prevent any 

single MPID from creating more than a 

limited number of complex strategies 

during the trading day. 

The Exchange proposes to modify 

Rule 6.91P–O(g)(1) to adopt another 

limit for the number of permissible 

complex strategies requested to be 

created by an MPID in a trading day, 

except that the new limit would be 

based on the number of complex 

strategies in the same underlying 

symbol (the ‘‘Strategy Limit per 

Symbol’’). Like the existing Strategy 

Limit, the proposed Strategy Limit per 

Symbol would operate as a system 

protection tool that enables the 

Exchange to prevent any single MPID 

from creating more than a limited 

number of complex strategies in a 

particular symbol during the trading 

day. 

The Exchange has observed that the 

high volume of requests to create 


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62114 Federal Register / Vol. 88, No. 173 / Friday, September 8, 2023 / Notices 

9See proposed Rule 6.91P–O(g)(1) (Complex 

Strategy Limits). 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

complex strategies in the same 

underlying symbol can tax Exchange 

resources and result in latency in 

providing acknowledgements to OTPs 

for all series in that same underlying 

symbol. As such, the proposed Strategy 

Limit per Symbol would augment and 

add granularity to the existing Complex 

Strategy Limit by allowing the Exchange 

to establish separate limits based on the 

underlying symbol. The Exchange 

believes that MPIDs may benefit from 

this added granularity. For example, an 

MPID that sends a significant number of 

complex series creation requests for a 

particular underlying symbol may 

breach the Strategy Limit per Symbol for 

that underlying. However, that MPID 

would continue to have the ability to 

request complex strategies in other 

symbols—unless or until that MPID 

breaches the Strategy Limit per Symbol 

in a different symbol or—in the 

aggregate—breaches the Complex 

Strategy Limit. Thus, the Exchange 

believes that the proposed change 

would benefit all market participants 

because it would curtail (or remove) the 

latency that has at times resulted from 

the Exchange receiving a significant 

number of requests for new complex 

strategies in the same underlying. 

To accommodate the proposed 

change, the Exchange proposes to 

reorganize and re-word certain of the 

existing text without changing 

functionality. As proposed, Rule 6.91P– 

O(g)(1) would be re-named (in plural) 

‘‘Complex Strategy Limits’’ (as opposed 

to a singular ‘‘Complex Strategy Limit’’) 

and would state the following: 

The Exchange will establish limits, which 

will be announced by Trader Update, on (A) 

the maximum number of new complex 

strategies (irrespective of the underlying 

symbol) that an MPID may request be created 

(the ‘‘Strategy Limit’’); and (B) the maximum 

number of new complex strategies in a 

particular underlying symbol that an MPID 

may request be created (the ‘‘Strategy Limit 

per Symbol’’). When an MPID breaches the 

Strategy Limit, the Exchange will reject for 

the rest of the trading day, all requests from 

that MPID to create new complex strategies. 

When an MPID breaches the Strategy Limit 

per Symbol in a particular underlying, the 

Exchange will reject for the rest of the trading 

day all requests from that MPID to create 

complex strategies in that underlying symbol. 

Notwithstanding the established Strategy 

Limit and Strategy Limit per Symbol, the 

Exchange may reject a request to create a new 

complex strategy from any MPID whenever 

the Exchange determines it is necessary in 

the interests of a fair and orderly market.9

For example, if the Strategy Limit is 

100, an MPID has already requested and 

created 100 complex strategies in a 

trading day, the Exchange will reject 

any request for the 101st complex 

strategy for the remainder of the trading 

day. The same logic applies for the 

Strategy Limit per Symbol such that if 

this limit is 50 and an MPID has already 

requested and created 50 complex 

strategies in the underlying symbol XYZ 

in a trading day, the Exchange will 

reject any request for the 51st complex 

strategy in XYZ for the remainder of the 

trading day. 

The Exchange believes that this 

proposed modification is merely an 

extension of existing functionality that 

would help the Exchange add 

granularity to, and better calibrate, its 

risk settings related to the number of 

Complex Strategies per Symbol for an 

MPID per trading day and is therefore 

non-controversial. 

Implementation 

The Exchange will announce by 

Trader Update the implementation date 

of the proposed rule change, which 

implementation will be no later than 90 

days after the effectiveness of this rule 

change. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),10 in general, and furthers the 

objectives of Section 6(b)(5),11 in 

particular, because it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, to remove 

impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. 

The Exchange has observed that the 

high volume of requests to create 

complex strategies in the same 

underlying symbol can tax Exchange 

resources and result in latency in 

providing acknowledgements to OTPs 

for all series in that underlying symbol. 

As such, the proposed Strategy Limit 

per Symbol would augment and add 

granularity to the existing Complex 

Strategy Limit by allowing the Exchange 

to establish separate limits based on the 

underlying symbol. The Exchange 

believes that MPIDs may benefit from 

this added granularity. For example, an 

MPID that sends a significant number of 

complex series creation requests for a 

particular underlying symbol may 

breach the Strategy Limit per Symbol for 

that underlying. However, that MPID 

would continue to have the ability to 

request complex strategies in other 

symbols—unless or until that MPID 

breaches the Strategy Limit per Symbol 

in a different symbol or—in the 

aggregate—breaches the Complex 

Strategy Limit. Thus, the proposed 

change would 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 

because it would curtail (or remove) the 

latency that has at times resulted from 

the Exchange receiving a significant 

number of requests for new complex 

strategies in the same underlying. 

The Exchange believes that the 

proposed change to expand the limits 

placed on Complex Strategies per MPID 

would promote just and equitable 

principles of trade because it would 

modify existing functionality in a 

manner that would enable the Exchange 

to add granularity to, and better 

calibrate, its risk settings related to the 

number of Complex Strategies in the 

same underlying symbol requested in a 

trading day. 

Finally, the proposed rule change 

would help maintain a fair and orderly 

market because it would enhance an 

existing system protection tool to enable 

the Exchange to prevent any single 

MPID from creating more than a limited 

number of complex strategies in the 

same underlying symbol during the 

trading day. 

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 does not believe that the 

proposed rule change would impose any 

burden on intra-market competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act 

because the proposed Strategy Limit per 

Symbol would apply equally to all 

market participants that request new 

complex strategies. As stated herein, the 

proposed rule change would provide the 

Exchange the ability to better calibrate 

risk settings related to the number of 

Complex Strategies per Symbol for an 

MPID per trading day, which in turn 

should benefit all market participants 

because (as described above) it would 

curtail (or remove) the latency that has 

at times resulted from the Exchange 

receiving a significant number of 

requests for new complex strategies in 

the same underlying. 


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Federal Register / Vol. 88, No. 173 / Friday, September 8, 2023 / Notices 62115 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization 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. 

14 17 CFR 200.30–3(a)(12), (59). 1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

The Exchange believes that the 

proposed rule change would not impose 

a burden on competing options 

exchanges. 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 (like the proposed Strategy 

Limit per Symbol) 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 entire marketplace 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) of the Act 12 and Rule 19b– 

4(f)(6) thereunder.13 At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

NYSEARCA–2023–56 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–NYSEARCA–2023–56. 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–NYSEARCA–2023–56 and should be 

submitted on or before September 29, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–19356 Filed 9–7–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98279; File No. SR– 

NYSEARCA–2023–57] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Modify Rule 6.62P– 

O(g)(1) 

September 1, 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 

18, 2023, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III 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 6.62P–O(g)(1) regarding Complex 

Qualified Contingent Cross Orders. 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. 


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