Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 78407 

44 15 U.S.C. 78q–1(b)(3)(F). 

45 Id. 

46 Id. 

47 17 CFR 240.17Ad–22(e)(5). 

48 Id. 

49 17 CFR 240.17Ad–22(e)(23)(i) and (ii). 

50 Id. 

51 Id. 

52 15 U.S.C. 78q–1. 

53 15 U.S.C. 78s(b)(2). 

54 In approving the Proposed Rule Change, the 

Commission considered its impact on efficiency, 

competition, and capital formation. 15 U.S.C. 78c(f). 

55 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. 

prompt and accurate clearance and 

settlement of securities transactions, 

consistent with section 17A(b)(3)(F) of 

the Act.44

Moreover, because the Proposed Rule 

Change would continue to ensure that 

FICC collects sufficient margin from 

members, it should also help minimize 

the likelihood that FICC would have to 

access the Clearing Fund, thereby 

limiting non-defaulting members’ 

exposure to mutualized losses. By 

helping to limit the exposure of FICC’s 

non-defaulting members to mutualized 

losses, the Proposed Rule Change 

should help FICC assure the 

safeguarding of securities and funds 

which are in its custody or control, 

consistent with section 17A(b)(3)(F) of 

the Act.45

Finally, the proposed clarifying 

changes should help to ensure that 

FICC’s Rules are clear to members. 

When members better understand their 

rights and obligations regarding the 

Rules, members are more likely to act in 

accordance with the Rules, which 

should promote the prompt and 

accurate clearance and settlement of 

securities transactions. As such, the 

proposed clarifying changes are 

consistent with section 17A(b)(3)(F) of 

the Act.46

B. Consistency With Rule 17Ad–22(e)(5) 

Rule 17Ad–22(e)(5) under the Act 47

requires, in part, a covered clearing 

agency to establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed to 

set and enforce appropriately 

conservative haircuts and concentration 

limits if the covered clearing agency 

requires collateral to manage its or its 

participants’ credit exposure. As 

described in Part II supra, the proposed 

changes to move the collateral haircuts 

and concentration limits from FICC’s 

Rules should provide FICC with more 

flexibility to respond to changing 

market conditions because adjustments 

to the haircuts and concentration limits 

would no longer require a rule change. 

By being able to make appropriate and 

timely adjustments to the haircuts and 

concentration limits, FICC would have 

the flexibility to respond to changing 

market conditions more promptly. 

Specifically, FICC would have the 

ability to promptly set and enforce 

conservative collateral haircuts and 

concentration limits that are reflective 

of the current market conditions. In this 

way, the proposed changes to move the 

collateral haircuts and concentration 

limits from the Rules to the website 

should help FICC set and enforce 

appropriately conservative collateral 

haircuts and concentration limits, 

consistent with the requirements of Rule 

17Ad–22(e)(5) under the Act.48

C. Consistency With Rule 17Ad– 

22(e)(23) 

Rule 17Ad–22(e)(23)(i) and (ii) 49

under the Act requires each covered 

clearing agency to establish, implement, 

maintain, and enforce written policies 

and procedures reasonably designed to, 

among other things, publicly disclose all 

relevant rules and material procedures; 

and provide sufficient information to 

enable participants to identify and 

evaluate the risks, fees, and other 

material costs they incur by 

participating in the covered clearing 

agency. Based on its review of the 

record, and for the reasons described 

below, the Commission finds that the 

proposed changes, taken together, are 

consistent with the requirements of Rule 

17Ad–22(e)(23)(i) and (ii).50

By adopting rules that require FICC to 

provide prior notice through public 

disclosures on its website relating to 

information on collateral haircuts and 

concentration limits, FICC’s Rules 

would support the communication of 

information that its members may use to 

identify and evaluate the haircuts and 

concentration limits resulting from 

FICC’s processes. As such, the Proposed 

Rule Change is consistent with publicly 

disclosing all relevant rules and 

material procedures; and providing 

sufficient information to enable 

participants to identify and evaluate the 

risks, fees, and other material costs 

incurred with participation in the 

covered clearing agency. The 

Commission finds, therefore, that the 

Proposed Rule Change is consistent 

with the requirements of Rule 17Ad– 

22(e)(23)(i) and (ii) under the Act.51

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the Proposed 

Rule Change is consistent with the 

requirements of the Act and in 

particular with the requirements of 

section 17A of the Act 52 and the rules 

and regulations promulgated 

thereunder. 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act 53 that 

proposed rule change SR–FICC–2023– 

014, be, and hereby is, approved.54

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.55

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25106 Filed 11–14–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98891; File No. SR–NYSE– 

2023–40] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Rule 

7.31 

November 8, 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, New York Stock Exchange 

LLC (‘‘NYSE’’ 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 selfregulatory 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 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 


ddrumheller on DSK120RN23PROD with NOTICES1
78408 Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 

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 to provide for the use of ALO 

Reserve Orders. 

ALO Orders 

Rule 7.31(e)(2) defines an ALO Order 

as a Non-Routable Limit Order that, 

unless it receives price improvement, 

will not remove liquidity from the 

Exchange 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 non-displayed. 

As described in Rule 7.31(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 

Exchange 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)(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)(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 Exchange 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 Exchange 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)(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 

Exchange Book. Rule 7.31(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 Exchange Book, 

ALO Orders may be re-priced or trade, 

or both, as described in Rule 

7.31(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)(2)(A), 

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

• If the PBO (PBB) of an Away Market 

re-prices lower (higher) to be equal to or 

lower (higher) than its last display price 

or if its limit price no longer locks or 

crosses the PBO (PBB) of the Away 

Market, an ALO Order to buy (sell) will 

be priced pursuant to Rules 

7.31(e)(1)(A)(ii)(c) and (d). If the PBO 

(PBB) of an Away Market re-prices 

lower (higher) than the working price of 

a non-displayed ALO Order to buy 

(sell), such order will have a working 

price equal to the PBO (PBB) of the 

Away Market. 

Reserve Orders 

Rule 7.31(d)(1) provides for Reserve 

Orders, which are Limit or Inside Limit 

Orders with a quantity of the size 

displayed and with a reserve quantity 

(‘‘reserve interest’’) of the size that is not 

displayed. The displayed quantity of a 

Reserve Order is ranked Priority 2— 

Display Orders, and the reserve interest 

is ranked Priority 3—Non-Display 

Orders. Both the display quantity and 

the reserve interest of an arriving 

marketable Reserve Order are eligible to 

trade with resting interest in the 

Exchange Book or to route to Away 

Markets. The working price of the 

reserve interest of a resting Reserve 

Order will be adjusted in the same 

manner as a Non-Displayed Limit Order, 

as provided for in Rule 7.31(d)(2)(A). 

As described in Rule 7.31(d)(1)(A), 

the display quantity of a Reserve Order 

must be entered in round lots, and the 

displayed portion of a Reserve Order 

will be replenished when the display 

quantity is decremented to below a 

round lot. The replenish quantity will 

be the minimum display size of the 

order or the remaining quantity of the 

reserve interest if it is less than the 

minimum display quantity. 

Rule 7.31(d)(1)(B) provides that each 

time the display quantity of a Reserve 

Order is replenished from reserve 

interest, a new working time is assigned 

to the replenished quantity (each 

display quantity with a different time is 

referred to as a ‘‘child’’ order), while the 

reserve interest retains the working time 

of the original order entry. In addition, 

when a Reserve Order is replenished 

from reserve interest and already has 

two child orders that equal less than a 

round lot, the child order with the later 

working time will rejoin the reserve 

interest and be assigned the new 

working time assigned to the next 

replenished quantity. If a Reserve Order 

is not routable, the replenish quantity 

will be assigned a display and working 

price consistent with the instructions 

for the order. 

Rule 7.31(d)(1)(C) provides that a 

Reserve Order must be designated Day 

and may only be combined with a D 

Order, Non-Routable Limit Order, or 

Primary Pegged Order. Rule 

7.31(d)(1)(C) also currently provides 

that a Reserve Order may not be 

designated as an ALO Order. 

Rule 7.31(d)(1)(D) provides that 

routable Reserve Orders will be 

evaluated for routing both on arrival and 

each time their display quantity is 

replenished. 

Rule 7.31(d)(1)(E) provides that a 

request to reduce the size of a Reserve 

Order will cancel the reserve interest 

before cancelling the display quantity, 

and, if the Reserve Order has more than 

one child order, the child order with the 

latest working time will be cancelled 

first. 

Rule 7.31(d)(1)(F) provides that, if the 

PBBO is crossed and the display 

quantity of a Reserve Order to buy (sell) 

that is a Non-Routable Limit Order is 

decremented to less than a round lot, 

the display price and working price of 

such Reserve Order will not change and 

the reserve interest that replenishes the 

display quantity will be assigned a 

display price one MPV below (above) 

the PBO (PBB) and a working price 

equal to the PBO (PBB). Rule 

7.31(d)(1)(F) further provides that, when 

the PBBO uncrosses, the display price 

and working price will be adjusted as 

provided for under Rule 7.31(e)(1) 

relating to Non-Routable Limit Orders. 

ALO Reserve Orders 

The Exchange proposes to amend 

Rule 7.31 to provide for the use of ALO 

Reserve Orders. The proposed change is 

not intended to introduce any new 

functionality or modify any current 

functionality, but rather to facilitate the 

combination of two order types 

currently offered by the Exchange. As 

proposed, ALO Reserve Orders would, 

except as otherwise noted, operate 

consistent with current Rule 7.31(d)(1) 

regarding Reserve Orders and current 

Rule 7.31(e)(2) regarding ALO Orders. 

To allow for the use of ALO Reserve 

Orders, the Exchange first proposes to 

amend Rule 7.31(d)(1)(C) to delete the 

last sentence of such rule, which 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 78409 

4The Exchange does not propose to allow nondisplayed ALO Orders to be designated as Reserve 

Orders, given that a Reserve Order must have both 

displayed and non-displayed portions, and thus 

proposes to amend Rule 7.31(e)(2) to specify 

accordingly. 

5See, e.g., MEMX Rules 11.8(b)(4) and (7) 

(providing that a Limit Order may include a reserve 

quantity and may be designated with a Post Only 

instruction); see also MEMX User Manual, available 

at https://info.memxtrading.com/wp-content/ 

uploads/2023/03/MEMX-User-Manual-03.10.23.pdf, 

at 9 (providing that a Limit Order designated Day 

may have both reserve quantity and Post Only 

instructions). 

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

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

8See note 5, supra. 

9See id. 

10 15 U.S.C. 78s(b)(3)(A)(iii). 

11 17 CFR 240.19b-4(f)(6). 

currently provides that a Reserve Order 

may not be designated as an ALO Order. 

The proposed change is intended to 

allow ALO Orders, as described in Rule 

7.31(e)(2) and the paragraphs 

thereunder,4 to have a displayed 

quantity, along with non-displayed 

reserve interest, as described in Rule 

7.31(d)(1). The display quantity of an 

ALO Reserve Order would be 

replenished as provided in Rules 

7.31(d)(1)(A) and (B). As ALO Reserve 

Orders are non-routable, under Rule 

7.31(d)(1)(B)(ii), the replenish quantity 

of an ALO Reserve Order would be 

assigned a display price and working 

price consistent with the behavior of 

ALO Orders as described in current 

Exchange rules. 

Aggressing ALO Reserve Orders 

would trade in accordance with current 

Rule 7.31(e)(2)(A). If an ALO Reserve 

Order is designated to cancel, it will 

cancel if it would be displayed at a price 

other than its limit price for any reason, 

as described in Rule 7.31(e)(2). 

Otherwise, any untraded quantity of an 

ALO Reserve Order would continue to 

be processed as ALO Orders are 

currently, as described in Rules 

7.31(e)(2)(B) and (C). Similarly, the 

working price of the reserve interest of 

a resting ALO Reserve Order would be 

adjusted as provided for in Rule 

7.31(d)(1) (i.e., in accordance with Rule 

7.31(d)(2)(A)). Rule 7.31(d)(1)(E) would 

also apply to requests to reduce the size 

of ALO Reserve Orders. 

As described in Rule 7.31(d)(1)(F), 

when the PBBO is crossed and the 

display quantity of an ALO Reserve 

Order to buy (sell) is decremented to 

less than a round lot, the display price 

and working price of the order would 

not change, but the reserve interest that 

replenishes the display quantity would 

be assigned a display price one MPV 

below (above) the PBO (PBB) and a 

working price equal to the PBO (PBB). 

The Exchange proposes to amend Rule 

7.31(d)(1)(F) to add new rule text 

describing how the display price and 

working price of an ALO Reserve Order 

would be adjusted when a previously 

crossed PBBO uncrosses. Specifically, 

the Exchange proposes to add text to the 

last sentence of Rule 7.31(d)(1)(F) 

providing that the display price and 

working price of an ALO Reserve Order 

would be adjusted in accordance with 

Rule 7.31(e)(2)(E), which describes how 

ALO Orders resting on the Exchange 

Book are repriced and/or traded. 

Because ALO Orders behave differently 

from other Non-Routable Limit Orders 

and may only trade when they receive 

price improvement, the Exchange 

proposes to add text to Rule 

7.31(e)(2)(F) clarifying that ALO Reserve 

Orders would have their display price 

and working price adjusted consistent 

with the rules applicable to ALO Orders 

when the PBBO uncrosses. 

The proposed change is intended to 

facilitate the combined use of two 

existing order types available on the 

Exchange, thereby providing member 

organizations with enhanced flexibility 

and optionality when trading on the 

Exchange. The proposed change could 

also promote increased liquidity and 

trading opportunities on the Exchange, 

to the benefit of all market participants. 

The Exchange also believes the 

proposed change would permit the 

Exchange to offer functionality already 

available on at least one other equities 

exchange, thereby promoting 

competition among equities exchanges.5

Because of the technology changes 

associated with this proposed rule 

change, the Exchange will announce the 

implementation date by Trader Update, 

which, subject to effectiveness of this 

proposed rule change, will be in the 

fourth quarter of 2023. 

2. Statutory Basis 

The proposed rule change is 

consistent with section 6(b) of the Act,6

in general, and furthers the objectives of 

section 6(b)(5),7 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 believes that the 

proposed rule change is designed to 

remove impediments to and perfect the 

mechanism of a free and open market 

because it would allow for the 

combined use of two existing order 

types available on the Exchange and 

permit the Exchange to offer 

functionality similar to that already 

available on at least one other equities 

exchange.8 Member organizations 

would be free to choose to use the 

proposed ALO Reserve Order type or 

not, and the proposed change would not 

otherwise impact the operation of the 

Reserve Order or ALO Order as 

described in current Exchange rules. 

The Exchange also believes that the 

proposed rule change would remove 

impediments to and perfect the 

mechanism of a free and open market, 

as well as protect investors and the 

public interest, by expanding the 

options available to member 

organizations when trading on the 

Exchange and promoting increased 

liquidity and additional trading 

opportunities for 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. In addition, 

as noted above, Exchange believes the 

proposed rule change would allow the 

Exchange to offer functionality already 

available on at least one other equities 

exchange 9 and thus would promote 

competition among equities exchanges. 

The Exchange also believes that, to the 

extent the proposed change increases 

opportunities for order execution, the 

proposed change would promote 

competition by making the Exchange a 

more attractive venue for order flow and 

enhancing market quality for all market 

participants. 

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 Exchange has filed the proposed 

rule change pursuant to section 

19(b)(3)(A)(iii) of the Act 10 and Rule 

19b-4(f)(6) thereunder.11 Because the 

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 

prior to 30 days from the date on which 


ddrumheller on DSK120RN23PROD with NOTICES1
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 


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