78410 Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 

12 17 CFR 240.19b-4(f)(6)(iii). 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. 

13 15 U.S.C. 78s(b)(2)(B). 

14 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Fee Schedule, CUSTOMER PENNY 

POSTING CREDIT TIERS; CUSTOMER POSTING 

CREDIT TIERS IN NON-PENNY ISSUES. 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to section 19(b)(3)(A) 

of the Act and Rule 19b-4(f)(6)(iii) 

thereunder.12

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under section 19(b)(2)(B) 13 of the Act 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– 

NYSE–2023–40 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–2023–40. 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–NYSE–2023–40 and should be 

submitted on or before December 6, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25107 Filed 11–14–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98894; File No. SR– 

NYSEARCA–2023–76] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Modify the NYSE Arca 

Options Fee Schedule 

November 9, 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 October 

31, 2023, NYSE Arca, Inc. (‘‘NYSE 

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

Securities and Exchange Commission 

(the ‘‘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 the 

NYSE Arca Options Fee Schedule (‘‘Fee 

Schedule’’) regarding certain Customer 

incentives. The Exchange proposes to 

implement the fee change effective 

November 1, 2023. 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 purpose of this filing is to amend 

the Fee Schedule to modify a 

qualification basis applicable to the 

Customer Penny Posting Credit Tiers, 

Customer Posting Credits [sic] in NonPenny Issues, and Customer Incentive 

Program. The Exchange proposes to 

implement the rule change on 

November 1, 2023. 

The Fee Schedule provides for certain 

incentive programs through which an 

OTP Holder or OTP Firm (collectively, 

‘‘OTP Holder’’) may earn credits on 

posted interest. The Customer Penny 

Posting Credit Tiers offers qualifying 

OTP Holders tiered credits on electronic 

executions of Customer posted interest 

in Penny issues, and the Customer 

Penny [sic] Posting Credit Tiers in NonPenny Issues offers qualifying OTP 

Holders tiered credits on electronic 

executions of Customer posted interest 

in non-Penny issues.4 OTP Holders may 

also qualify for the Customer Incentive 

Program, which offers an additional 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 78411 

5See Fee Schedule, CUSTOMER INCENTIVE 

PROGRAM. 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(4) and (5). 

8See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 

(S7–10–04) (‘‘Reg NMS Adopting Release’’). 

9The OCC publishes options and futures volume 

in a variety of formats, including daily and monthly 

volume by exchange, available here: https://

www.theocc.com/Market-Data/Market-DataReports/Volume-and-Open-Interest/MonthlyWeekly-Volume-Statistics. 

10Based on a compilation of OCC data for 

monthly volume of equity-based options and 

monthly volume of equity-based ETF options, see 

id., the Exchange’s market share in equity-based 

options increased from 10.84% for the month of 

September 2022 to 11.48% for the month of 

September 2023. 

credit on Customer posting credits in 

Penny or non-Penny issues.5

Currently, an OTP Holder that 

achieves 0.30% of TCADV from 

Customer posted interest in all issues, 

not including Professional Customer 

interest, plus executed ADV of 0.60% of 

U.S. equity market share posted and 

executed on the NYSE Arca Equities 

market will qualify for the credits 

offered in Tier 4 of the Customer Penny 

Posting Credit Tiers, Tier C of the 

Customer Posting Credit Tiers in NonPenny Issues, and the Customer 

Incentive Program. 

The Exchange now proposes to adjust 

this qualifying basis for each of the 

Customer Penny Posting Credit Tiers, 

Customer Posting Credits [sic] in NonPenny Issues, and Customer Incentive 

Program to reduce the Customer posted 

interest TCADV requirement from 

0.30% to 0.20% and the equity market 

ADV requirement from 0.60% to 0.50%. 

In other words, as proposed, an OTP 

Holder could qualify for Tier 4 of the 

Customer Penny Posting Credit Tiers, 

Tier C of the Customer Posting Credit 

Tiers in Non-Penny Issues, and the 

Customer Incentive Program by 

achieving at least 0.20% of TCADV from 

Customer posted interest in all issues, 

not including Professional Customer 

interest, plus executed ADV of 0.50% of 

U.S. equity market share posted and 

executed on the NYSE Arca Equities 

market. 

The Exchange does not propose any 

changes to the amounts of the credits 

offered in the Customer Penny Posting 

Credit Tiers, Customer Posting Credits 

[sic] in Non-Penny Issues, or Customer 

Incentive Program. Accordingly, OTP 

Holders who achieve the proposed 

qualification described above would 

continue to be eligible for the ($0.47) on 

electronic executions of Customer 

posted interest in Penny issues through 

Tier 4 of the Customer Penny Posting 

Credit Tiers; the ($0.97) credit applied 

to electronic executions of Customer 

posted interest in non-Penny issues 

through the Customer Posting Credits 

[sic] in Non-Penny Issues; and/or the 

additional ($0.03) credit on Customer 

posting credits offered in the Customer 

Incentive Program. 

The Exchange cannot predict with 

certainty whether any OTP Holders 

would seek to qualify for the Customer 

Penny Posting Credit Tiers, Customer 

Posting Credit Tiers in Non-Penny 

Issues, or Customer Incentive Program. 

However, the Exchange believes that the 

proposed change would continue to 

encourage OTP Holders to direct 

Customer posted interest to the 

Exchange by reducing the volume 

requirements for certain credits on 

Customer posted interest, thereby 

potentially making such credits more 

attainable for OTP Holders. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,6 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,7 in particular, 

because it provides for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members, 

issuers and other persons using its 

facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

The Proposed Rule Change Is 

Reasonable 

The Exchange operates in a highly 

competitive market. The Commission 

has repeatedly expressed its preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In Regulation NMS, the 

Commission highlighted the importance 

of market forces in determining prices 

and SRO revenues and, also, recognized 

that current regulation of the market 

system ‘‘has been remarkably successful 

in promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 8

There are currently 17 registered 

options exchanges competing for order 

flow. Based on publicly-available 

information, and excluding index-based 

options, no single exchange has more 

than 16% of the market share of 

executed volume of multiply-listed 

equity and ETF options trades.9

Therefore, no exchange possesses 

significant pricing power in the 

execution of multiply-listed equity and 

ETF options order flow. More 

specifically, in September 2023, the 

Exchange had less than 12% market 

share of executed volume of multiplylisted equity and ETF options trades.10

The Exchange believes that the evershifting market share among the 

exchanges from month to month 

demonstrates that market participants 

can shift order flow, or discontinue or 

reduce use of certain categories of 

products, in response to fee changes. 

Accordingly, competitive forces 

constrain options exchange transaction 

fees. Stated otherwise, modifications to 

exchange transaction fees can have a 

direct effect on the ability of an 

exchange to compete for order flow. 

The Exchange believes that the 

proposed changes to the Customer 

Penny Posting Credit Tiers, Customer 

Posting Credit Tiers in Non-Penny 

Issues, and Customer Incentive Program 

are reasonable because they are 

intended to continue to incent OTP 

Holders to send Customer posting 

interest to the Exchange in order to earn 

credits on such interest. The Exchange 

also believes the proposed change is 

reasonable because it decreases certain 

volume requirements for the Customer 

Penny Posting Credit Tiers, Customer 

Posting Credit Tiers in Non-Penny 

Issues, and Customer Incentive Program, 

which could make credits offered in 

those programs more attainable for OTP 

Holders. 

To the extent the proposed rule 

change attracts greater volume and 

liquidity by encouraging OTP Holders to 

increase their options volume on the 

Exchange, the Exchange believes the 

proposed change would improve the 

Exchange’s overall competitiveness and 

strengthen its market quality for all 

market participants. In the backdrop of 

the competitive environment in which 

the Exchange operates, the proposed 

rule change is a reasonable attempt by 

the Exchange to increase the depth of its 

market and improve its market share 

relative to its competitors. 

The Proposed Rule Change Is an 

Equitable Allocation of Credits and Fees 

The Exchange believes the proposed 

rule change is an equitable allocation of 

its fees and credits. The proposal is 

based on the amount and type of 

business transacted on the Exchange, 

and OTP Holders can opt to attempt to 

qualify for the various Customer posting 

credits or not. Moreover, the proposal is 

designed to continue to incent OTP 

Holders to aggregate all Customer 

posting interest at the Exchange as a 

primary execution venue. To the extent 

that the proposed change attracts more 

opportunities for execution of Customer 

posted interest on the Exchange, this 

increased order flow would continue to 


ddrumheller on DSK120RN23PROD with NOTICES1
78412 Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 

11See Reg NMS Adopting Release, supra note 8, 

at 37499. 

12The OCC publishes options and futures volume 

in a variety of formats, including daily and monthly 

volume by exchange, available here: https://

www.theocc.com/Market-Data/Market-DataReports/Volume-and-Open-Interest/MonthlyWeekly-Volume-Statistics. 

13Based on a compilation of OCC data for 

monthly volume of equity-based options and 

monthly volume of equity-based ETF options, see 

id., the Exchange’s market share in equity-based 

options increased from 10.84% for the month of 

September 2022 to 11.48% for the month of 

September 2023. 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(2). 

16 15 U.S.C. 78s(b)(2)(B). 

make the Exchange a more competitive 

venue for order execution. Thus, the 

Exchange believes the proposed rule 

change would improve market quality 

for all market participants on the 

Exchange and, as a consequence, attract 

more order flow to the Exchange thereby 

improving market-wide quality and 

price discovery. 

The Proposed Rule Change Is Not 

Unfairly Discriminatory 

The Exchange believes the proposed 

changes are not unfairly discriminatory 

because they would apply to all 

similarly-situated market participants, 

and the credits offered in the Customer 

Penny Posting [sic] Tiers, Customer 

Posting Credit Tiers in Non-Penny 

Issues, and Customer Incentive Program 

would continue to be available to all 

similarly-situated market participants 

on an equal and non-discriminatory 

basis. 

The proposed change is based on the 

amount and type of business transacted 

on the Exchange, and OTP Holders are 

not obligated to try to qualify for the 

various credits, nor are they obligated to 

execute posted interest. To the extent 

that the proposed change attracts more 

interest to the Exchange, particularly 

Customer posting interest, this 

increased order flow would continue to 

make the Exchange a more competitive 

venue for order execution. Thus, the 

Exchange believes the proposed rule 

change would improve market quality 

for all market participants on the 

Exchange and, as a consequence, attract 

more order flow to the Exchange thereby 

improving market-wide quality and 

price discovery. The resulting increased 

volume and liquidity would provide 

more trading opportunities and tighter 

spreads to all market participants and 

thus 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 

general, to protect investors and the 

public interest. 

Finally, the Exchange believes that it 

is subject to significant competitive 

forces, as described below in the 

Exchange’s statement regarding the 

burden on competition. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act, the Exchange does not believe 

that the proposed rule change would 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

Instead, as discussed above, the 

Exchange believes that the proposed 

change would encourage the submission 

of additional liquidity to a public 

exchange, thereby promoting market 

depth, price discovery and transparency 

and enhancing order execution 

opportunities for all market 

participants. As a result, the Exchange 

believes that the proposed change 

furthers the Commission’s goal in 

adopting Regulation NMS of fostering 

integrated competition among orders, 

which promotes ‘‘more efficient pricing 

of individual stocks for all types of 

orders, large and small.’’ 11

Intramarket Competition. The 

proposed change is designed to attract 

additional order flow to the Exchange, 

particularly Customer posted interest. 

The Exchange believes that the 

proposed change would continue to 

incent OTP Holders to direct Customer 

posting interest to the Exchange in order 

to earn the credits available through the 

Customer Penny Posting Credit Tiers, 

Customer Posting Credit Tiers in NonPenny Issues, and Customer Incentive 

Program. Greater liquidity benefits all 

market participants on the Exchange 

and increased liquidity-posting order 

flow would increase opportunities for 

execution of other trading interest. The 

proposed change would apply to all 

similarly-situated market participants 

and, accordingly, would not impose a 

disparate burden on competition among 

market participants on the Exchange. 

Intermarket Competition. The 

Exchange operates in a highly 

competitive market in which market 

participants can readily favor one of the 

17 competing option exchanges if they 

deem fee levels at a particular venue to 

be excessive. In such an environment, 

the Exchange must continually adjust its 

fees to remain competitive with other 

exchanges and to attract order flow to 

the Exchange. Based on publiclyavailable information, and excluding 

index-based options, no single exchange 

has more than 16% of the market share 

of executed volume of multiply-listed 

equity and ETF options trades.12

Therefore, currently no exchange 

possesses significant pricing power in 

the execution of multiply-listed equity 

and ETF options order flow. More 

specifically, in September 2023, the 

Exchange had less than 12% market 

share of executed volume of multiplylisted equity and ETF options trades.13

The Exchange believes that the 

proposed rule change reflects this 

competitive environment because it 

modifies the Exchange’s fees in a 

manner designed to continue to incent 

OTP Holders to direct trading to the 

Exchange, to provide liquidity and to 

attract order flow. To the extent that this 

purpose is achieved, all the Exchange’s 

market participants should benefit from 

the improved market quality and 

increased opportunities for price 

improvement. 

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 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 14 of the Act and 

subparagraph (f)(2) of Rule 19b–4 15

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 16 of the Act 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: 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 78413 

17 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

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–2023–76 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–2023–76. 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–2023–76 and should be 

submitted on or before December 6, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25204 Filed 11–14–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98899; File No. SR– 

NYSEARCA–2023–77] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rule 7.31–E 

November 9, 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 October 

31, 2023, NYSE Arca, Inc. (‘‘NYSE 

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

Securities and Exchange Commission 

(the ‘‘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 amend 

Rule 7.31–E to provide for the use of 

ALO Reserve 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 amend 

Rule 7.31–E to provide for the use of 

ALO Reserve Orders. 

ALO Orders 

Rule 7.31–E(e)(2) defines an ALO 

Order as a Non-Routable Limit Order 

that, unless it receives price 

improvement, will not remove liquidity 

from the NYSE Arca Book. An ALO 

Order can be designated to be cancelled 

if it would be displayed at a price other 

than its limit price for any reason. An 

ALO Order can be designated as nondisplayed. 

As described in Rule 7.31–E(e)(2)(A), 

an Aggressing ALO Order to buy (sell) 

will trade if its limit price crosses the 

working price of any displayed or nondisplayed orders to sell (buy) on the 

NYSE Arca Book priced equal to or 

below (above) the PBO (PBB) of an 

Away Market, in which case it will 

trade as the liquidity taker with such 

orders. 

As noted above, Rule 7.31–E(e)(2) 

provides that an ALO Order may be 

designated to cancel if it would be 

displayed at a price other than its limit 

price. If an ALO Order is not so 

designated, any untraded quantity of 

such order to buy (sell) is processed as 

follows (Rules 7.31–E(e)(2)(B)(i) and 

(ii)): 

• If the limit price of the ALO Order 

locks the display price of any order to 

sell (buy) ranked Priority 2—Display 

Orders on the NYSE Arca Book, it will 

have a working price and display price 

(if designated to display) one MPV 

below (above) the price of the displayed 

order on the NYSE Arca Book. 

• If the limit price of the ALO Order 

locks or crosses the PBO (PBB) of an 

Away Market, it will have a working 

price equal to the PBO (PBB) of the 

Away Market and a display price (if 

designated to display) one MPV below 

(above) the PBO (PBB) of the Away 

Market. 

Rule 7.31–E(e)(2)(C) provides that any 

untraded quantity of an ALO Order to 

buy (sell) will have a working price and 

display price (if designated to display) 

equal to its limit price if it locks nondisplayed orders to sell (buy) on the 

NYSE Arca Book. Rule 7.31–E(e)(2)(D) 

provides that an ALO Order to buy (sell) 

will not be assigned a working price or 

display price above (below) the limit 

price of such order. 

Once resting on the NYSE Arca Book, 

ALO Orders may be re-priced or trade, 

or both, as described in Rule 7.31– 

E(e)(2)(E): 

• If order(s) to sell (buy) ranked 

Priority 2—Display Orders or the PBO 

(PBB) of an Away Market re-prices 

higher (lower), an ALO Order to buy 

(sell) will trade or be priced, or both, 

consistent with Rules 7.31–E(e)(2)(A), 

(e)(2)(B)(i) and (ii), and (e)(2)(C). 


ddrumheller on DSK120RN23PROD with NOTICES1