Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices 66925 

9This figure was calculated as follows: (Assistant 

General Counsel at $543/hour × 48 hours = $26,064) 

+ (Compliance Attorney at $426/hour × 192 hours 

= $81,792) + (Senior Risk Management Specialist at 

$417/hour × 48 hours = $20,016) + (Risk 

Management Specialist at $232/hour × 192 hours = 

$44,544) = $172,416 × 411 respondents = 

$70,862,976. 

10This figure was calculated as follows: 

$36,529,680 (industry one-time burden) + 

$70,862,976 (industry ongoing burden) = 

$107,392,656. 

11 17 CFR 240.17a–4(b)(7). The title of the 

information collection for 17 CFR 240.17a–4 is 

‘‘Records to be Preserved by Broker-Dealers’’ (OMB 

Control No. 3235–0279). 

12 17 CFR 240.17a–4(e)(7). 

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 900.3NYP) 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. 

5See Securities Exchange Act Release No. 98279 

(September 1, 2023), 88 FR 62115 (September 8, 

2023) (SR–NYSEARCA–2023–57) (immediately 

effective rule change to modify Rule 6.62P–O(g)(1) 

to allow Complex QCC Orders in non-standard 

ratios). 

6See, e.g., Rule 900.3NYP(h)(6)(B) (regarding 

Stock/Complex Orders, which are a subset of 

Complex Orders (per Rule 900.3NYP(f)), that are 

only available for trading in Open Outcry and are 

not subject to the standard ratio requirement). 

7 In June 2022, Cboe Exchange, Inc. (‘‘Cboe’’) 

began supporting the electronic processing of 

certain stock-option orders in non-standard ratios, 

including Complex QCC Orders. See Cboe Exchange 

Continued 

burden) per broker-dealer of $172,416.9

The total industry internal cost is 

estimated to be approximately $107M.10

Rule 15c6–2 imposes a recordkeeping 

requirement on broker-dealers to 

maintain policies and procedures 

consistent with the rule. Where the 

Commission requests that a brokerdealer produce records retained 

pursuant to the requirements of Rule 

15c6–2, a broker-dealer can request 

confidential treatment of the 

information. If such confidential 

treatment request is made, the 

Commission anticipates that it will keep 

the information confidential subject to 

applicable law. 

Pursuant to Exchange Act Rule 17a– 

4(b)(7), a broker or dealer registered 

pursuant to section 15 of the Exchange 

Act must preserve for a period of not 

less than three years, the first two years 

in an easily accessible place, all written 

agreements (or copies thereof) entered 

into by such member, broker or dealer 

relating to its business as such, 

including agreements with respect to 

any account.11

Pursuant to 17 CFR 240.17a–4(e)(7), a 

broker or dealer registered pursuant to 

section 15 of the Exchange Act must 

maintain and preserve in an easily 

accessible place each compliance, 

supervisory, and procedures manual, 

including any updates, modifications, 

and revisions to the manual, describing 

the policies and practices of the 

member, broker or dealer with respect to 

compliance with applicable laws and 

rules, and supervision of the activities 

of each natural person associated with 

the member, broker or dealer until three 

years after the termination of the use of 

the manual.12

The public may view background 

documentation for this information 

collection at the following website: 

>www.reginfo.gov<. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. Written comments and 

recommendations for the proposed 

information collection should be sent by 

October 30, 2023 to (i) 

>MBX.OMB.OIRA.SEC_desk_officer@

omb.eop.gov< and (ii) David Bottom, 

Director/Chief Information Officer, 

Securities and Exchange Commission, 

c/o John Pezzullo, 100 F Street NE, 

Washington, DC 20549, or by sending an 

email to: PRA_Mailbox@sec.gov. 

Dated: September 22, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–21167 Filed 9–27–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98483; File No. SR– 

NYSEAMER–2023–44] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Modify Rule 900.3NYP 

September 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 

September 18, 2023, NYSE American 

LLC (‘‘NYSE American’’ or the 

‘‘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 900.3NYP(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. 

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 900.3NYP(g)(1) regarding Complex 

Qualified Contingent Cross (‘‘QCC’’) 

Orders to allow Complex QCC Orders in 

non-standard ratios (as defined below) 

to be processed electronically.4 The 

Exchange notes that an identical rule 

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.5

Rule 900.3NYP(f) provides that a 

Complex Order is any order involving 

the simultaneous purchase and/or sale 

of two or more option series in the same 

underlying security (the ‘‘legs’’ or 

‘‘components’’ of the Complex Order), 

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-toone (3.00) (referred to herein as the 

‘‘standard ratio’’ or ‘‘standard ratio 

requirement’’).The Exchange currently 

permits certain Complex Orders with 

ratios greater than three-to-one or less 

than one-to-three (‘‘non-standard 

ratios’’) for execution on the Exchange’s 

trading floor.6 This proposed change is 

competitive as at least one other options 

exchange permits Complex QCC Orders 

in non-standard ratios to be processed 

electronically.7 As such, the Exchange 


ddrumheller on DSK120RN23PROD with NOTICES1
66926 Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices 

Alert, ‘‘Schedule Update—Cboe Options Introduces 

New Net, Leg Price Increments and Enhanced 

Electronic, Open Outcry Handling for Complex 

Orders with Non-Conforming Ratios, Reference ID: 

C2022060301 available online at https://

cdn.cboe.com/resources/release_notes/2022/ 

Schedule-Update-Cboe-Options-Introduces-NewNet-Leg-Price-Increments-and-Enhanced-ElectronicOpen-Outcry-Handling-for-Complex-Orders-withNon-Conforming-Ratios.pdf (providing, in relevant 

part, that beginning June 12, 2022, ‘‘automated 

handling via COA, COB, AIM, and QCC will be 

available for applicable non-conforming orders, 

except in SPX/SPXW). See also Securities Exchange 

Act Release Nos. 94204 (February 9, 2022), 87 FR 

8625 (February 15, 2022) (SR–CBOE–2021–046) 

(order approving Cboe’s proposal, as amended, to 

permit complex orders with ratios less than one-tothree and greater than three-to-one to be eligible for 

electronic processing and to trade in penny 

increments); 95006 (May 31, 2022), 87 FR 34334 

(June 6, 2022) (SR–CBOE–2022–024) (allowing Cboe 

to retain discretion to determine on class-by-class 

basis eligibility for electronic processing of complex 

orders with ratios less than one-to-three and greater 

than three-to-one (i.e., ratios other than the standard 

ratio requirement). The current proposal is limited 

to allowing Complex QCC Orders regardless of ratio 

to be traded electronically. If the Exchange opts to 

allow other (non-QCC) Complex Orders in any ratio 

to be traded electronically, the Exchange will 

submit a separate rule filing. 

8See proposed Rule 900.3NYP(g)(1)(G) 

(‘‘Complex QCC Orders are eligible for electronic 

processing regardless of the ratio in the component 

legs.’’). The Exchange notes that other options 

exchanges offer Complex QCC Orders, however, the 

rules of these options exchanges are silent as to 

whether they permit Complex QCC Orders in nonstandard ratios to be processed electronically. See, 

e.g., Nasdaq ISE, LLC (‘‘ISE’’) Options 3, Section 

12(d) (describing Complex Qualified Cross Orders). 

9See Rule 900.3NYP(g)(1)(A). See also Rule 

900.3NYP(g)(1)(B) for the definition of a Qualified 

Contingent Trade. 

10See Rule 900.3NYP(g)(1)(A) (defining Complex 

QCC Orders). See also Rule 900.3NYP(g)(1)(D) 

regarding pricing requirements for Complex QCCs. 

This proposal does not alter the pricing 

requirements for Complex QCC Orders and such 

requirements apply regardless of whether a 

Complex QCC Order has a standard (or nonstandard) ratio. 

11See Rule 900.3NYP(g)(1)(B)(i). See generally 

Rule 900.3NYP(g)(1)(B) (setting forth criteria for a 

Qualified Contingent Trade). 

12See Rule 900.3NYP(g)(1)(B)(vi) (providing that 

the QCT transaction must be ‘‘fully hedged (without 

regard to any prior existing position) as a result of 

other components of the contingent trade.’’). 13See Rule 900.3NYP(g)(1)(D) (providing that ‘‘no 

option leg [of a Complex QCC Order] will trade at 

a price worse than the Exchange BBO’’). 14See Rule 900.3NYP(g)(1)(D)(i). See also Rule 

900.3NYP(g)(1)(C) (Execution of QCC Orders) (‘‘A 

QCC Order with one option leg will be rejected if 

received when the NBBO is crossed or if it will 

trade at a price that (i) is at the same price as a 

displayed Customer order on the Consolidated Book 

and (ii) is not at or between the NBBO’’ and 

requiring that ‘‘[a] QCC Order with one option leg 

will never trade at a price worse than the Exchange 

BBO.’’). 

15See Rule 900.3NYP(g)(1)(D)(ii). The Exchange 

proposes to amend current Rule 

900.3NYP(g)(1)(D)(ii) to clarify that the Complex 

QCC Order must price improve any displayed 

Customer interest by ‘‘at least’’ one penny ($0.01), 

which would make the Rule more accurate. See 

proposed Rule 900.3NYP(g)(1)(D)(ii). 16See Rule 900.3NYP(g)(1)(D)(iii). The Exchange 

proposes to amend current Rule 

900.3NYP(g)(1)(D)(iii) to clarify that this provision 

refers to the price of the ‘‘Complex’’ QCC Order, 

which would make the Rule more accurate. See 

proposed Rule 900.3NYP(g)(1)(D)(iii). The Exchange 

would continue to reject Complex QCC Orders 

(regardless of ratio) if ‘‘the prices of the best-priced 

Complex Orders in the Consolidated Book are 

crossed’’; or ‘‘for any option leg there is no NBO.’’ 

See Rule 900.3NYP(g)(1)(D)(iii), (iv), respectively. 

17 15 U.S.C. 78f(b). 

18 15 U.S.C. 78f(b)(5). 

19See supra notes 5 and 7 (regarding NYSE Arca 

and Cboe, respectively). 

proposes to add new Rule 

900.3NYP(g)(1)(G) to specify that 

Complex QCC Orders may be processed 

electronically in non-standard ratios.8

Rule 900.3NYP(g)(1)(A) provides that 

a QCC Order must be comprised of an 

originating order to buy or sell at least 

1,000 contracts that is identified as 

being part of a qualified contingent 

trade coupled with a contra-side order 

or orders totaling an equal number of 

contracts.9 A Complex QCC Order is a 

QCC Order that has more than one 

option leg and each option leg must 

have at least 1,000 contracts.10 Like QCC 

Orders, each Complex QCC Order must 

be a part of a ‘‘qualified contingent 

trade’’ (‘‘QCT’’), which is a transaction 

consisting of two or more component 

orders, one of which must be a stock 

leg.11 The Exchange notes that there 

may be instances when an order sender 

must submit a Complex QCC in a nonstandard ratio to meet the QCT criteria 

(e.g., to be fully hedged).12

The proposed rule change would have 

no impact on the pricing of Complex 

QCCs because the same (existing) 

pricing requirements apply to all 

Complex QCC Orders that are 

electronically processed by the 

Exchange. Specifically, no option leg of 

a Complex QCC Order will trade at a 

price worse than the Exchange BBO 13

and a Complex QCC Order will be 

rejected based on its price if: 

• ‘‘any option leg cannot execute in 

compliance with paragraph (g)(1)(C) of 

this Rule’’, i.e., cannot meet the pricing 

requirements for single-leg QCC 

Orders’’; 14

• ‘‘the best-priced Complex Order(s) 

on the Exchange contain(s) displayed 

Customer interest and the Complex QCC 

Order price does not improve such 

displayed Customer interest by 0.01;’’ 15

or 

• ‘‘the price of the QCC Order is 

worse than the best-priced Complex 

Orders in the Consolidated Book.’’ 16

Thus, under this proposal, the 

Exchange would ensure that every 

component leg of a Complex QCC Order 

(regardless of ratio) would trade at a 

price that is equal to or better than the 

Exchange BBO and better than 

displayed Customer interest on the 

Exchange in the same manner as it does 

today. In other words, the proposed rule 

change continues to protect interest in 

the leg markets as well as displayed 

Customer interest on 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 900.3NYP) 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’’),17 in general, and furthers 

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

Act,18 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. 

In particular, the proposed rule 

change will remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system because it will enable the 

Exchange to compete on equal footing 

with other exchanges that permit 

trading of Complex QCCs with nonstandard ratios.19 The proposed rule 

change would continue to protect 

investors and the public interest 

because the (approved) pricing 

requirements for Complex QCC Orders 

would continue to apply to Complex 

QCC Orders with non-standard ratios. 

As such, the proposal would ensure that 

the Complex QCC Order is priced equal 

to or better than the best-priced 

Complex Order(s) and, if there is 

displayed Customer interest on such 

order(s), that the execution price of the 

Complex QCC Order improves the price 

of the displayed Customer interest and 

improves the price of displayed 

Customer interest on each component 

leg of the Complex QCC Order. 

In addition, the proposed change 

would promote just and equitable 

principles of trade, remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices 66927 

20See supra notes 15–16. 

21 15 U.S.C. 78s(b)(3)(A)(iii). 

22 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 23 17 CFR 200.30–3(a)(12). 

general to protect investors and the 

public interest because it would provide 

another venue for electronically 

executing Complex QCC Orders with 

non-standard ratios. The proposed 

change would also increase 

opportunities for execution of Complex 

QCC Orders with non-standard ratios, 

which benefits all investors. The 

Exchange also believes that the 

proposed rule change would not permit 

unfair discrimination among market 

participants, as all market participants 

may opt to trade Complex QCC Orders 

with non-standard ratios. 

The Exchange believes that the 

proposed clarifying changes would 

ensure accuracy of the proposed rule, 

which benefits all investors.20

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 its 

proposed rule change will impose any 

burden on intra-market competition as it 

would apply equally to all market 

participants that opt to submit Complex 

QCC Orders with non-standard ratios for 

electronic processing, which orders the 

Exchange will process in a uniform 

manner. 

The Exchange does not believe that its 

proposed rule change will impose any 

burden on inter-market competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act, 

rather the Exchange believes that its 

proposal will promote inter-market 

competition. As noted here, the 

proposed change is competitive as 

another options exchange currently 

permits Complex QCC Orders with nonstandard ratios to be traded 

electronically. The Exchange’s proposal 

will enhance inter-market competition 

by providing an additional venue where 

investors may electronically execute 

Complex QCC Orders with non-standard 

ratios, giving investors greater flexibility 

and a choice of where to send their 

orders. Market participants may find it 

more convenient to access one exchange 

over another or may choose to 

concentrate volume at a particular 

exchange to maximize the impact of 

volume-based incentive programs or 

may prefer the trade execution services 

of one exchange over another. 

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 21 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.22

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 

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– 

NYSEAMER–2023–44 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–2023–44. 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–2023–44 and should 

be submitted on or before October 19, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–21139 Filed 9–27–23; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #18016 and #18017; 

Vermont Disaster Number VT–00046] 

Presidential Declaration of a Major 

Disaster for the State of Vermont 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 6. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for the State of Vermont 

(FEMA–4720–DR), dated 07/14/2023. 


ddrumheller on DSK120RN23PROD with NOTICES1