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
78414 Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 

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(e)(2) to specify 

accordingly. 

• 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(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 nondisplayed 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–E(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 NYSE 

Arca 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 NonDisplayed Limit Order, as provided for 

in Rule 7.31–E(d)(2)(A). 

As described in Rule 7.31–E(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–E(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–E(d)(1)(C) provides that a 

Reserve Order must be designated Day 

and may only be combined with a NonRoutable Limit Order or a Primary 

Pegged Order. Rule 7.31–E(d)(1)(C) also 

currently provides that a Reserve Order 

may not be designated as an ALO Order. 

Rule 7.31–E(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–E(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–E(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– 

E(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(e)(1) 

relating to Non-Routable Limit Orders. 

ALO Reserve Orders 

The Exchange proposes to amend 

Rule 7.31–E 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– 

E(d)(1) regarding Reserve Orders and 

current Rule 7.31–E(e)(2) regarding ALO 

Orders. To allow for the use of ALO 

Reserve Orders, the Exchange first 

proposes to amend Rule 7.31–E(d)(1)(C) 

to delete the last sentence of such rule, 

which 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(e)(2) and the paragraphs 

thereunder,4 to have a displayed 

quantity, along with non-displayed 

reserve interest, as described in Rule 

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

ALO Reserve Order would be 

replenished as provided in Rules 7.31– 

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

Orders are non-routable, under Rule 

7.31–E(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(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(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(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– 

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

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

would also apply to requests to reduce 

the size of ALO Reserve Orders. 

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

how ALO Orders resting on the NYSE 

Arca 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(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 ETP 

Holders with enhanced flexibility and 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 78415 

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). 

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). 

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 ETP Holders 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 ETP Holders 

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 

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– 

NYSEARCA–2023–77 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–2023–77. 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; 


ddrumheller on DSK120RN23PROD with NOTICES1
78416 Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 

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. 

4 15 U.S.C. 78f(b). 

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

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–2023–77 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. 2023–25206 Filed 11–14–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98898; File No. SR– 

NYSECHX–2023–19] 

Self-Regulatory Organizations; NYSE 

Chicago, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rule 7.37 

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 November 

2, 2023, the NYSE Chicago, Inc. (‘‘NYSE 

Chicago’’ 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 amend 

Rule 7.37 to specify the Exchange’s 

source of data feeds from MIAX PEARL, 

LLC (‘‘MIAX PEARL’’) for purposes of 

order handling, order execution, order 

routing, and regulatory compliance. 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 update and 

amend the use of data feeds table in 

Rule 7.37(d), which sets forth on a 

market-by-market basis the specific 

securities information processor (‘‘SIP’’) 

and proprietary data feeds that the 

Exchange utilizes for the handling, 

execution, and routing of orders, and for 

performing the regulatory compliance 

checks related to each of those 

functions. Specifically, the Exchange 

proposes to amend the table in Rule 

7.37(d) to specify that, with respect to 

MIAX PEARL, the Exchange will receive 

a MIAX PEARL direct feed as its 

primary source of data for order 

handling, order execution, order 

routing, and regulatory compliance, and 

will use the SIP Data Feed as its 

secondary source for data from MIAX 

PEARL. 

The Exchange proposes to make this 

change operative in the fourth quarter of 

2023, and, in any event, before 

December 31, 2023. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act,4

in general, and furthers the objectives of 

Section 6(b)(5),5 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. Additionally, the 

Exchange believes that the proposed 

rule change is consistent with the 

Section 6(b)(5) requirement that the 

rules of an exchange not be designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes its proposal to 

update the table in Rule 7.37(d) to 

include the MIAX PEARL direct feed 

will ensure that the Rule correctly 

identifies and publicly states on a 

market-by-market basis all of the 

specific SIP and proprietary data feeds 

that the Exchange utilizes for the 

handling, execution, and routing of 

orders, and for performing the 

regulatory compliance checks for each 

of those functions. The proposed rule 

change also removes impediments to 

and perfects the mechanism of a free 

and open market and protects investors 

and the public interest by providing 

additional specificity, clarity, and 

transparency in the Exchange’s rules. 

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. Rather, the 

Exchange believes that the proposal will 

enhance competition because providing 

the public and market participants with 

up-to-date information about the data 

feeds the Exchange will use for the 

handling, execution, and routing of 

orders, as well as for regulatory 

compliance would enhance 

transparency and enable investors to 

better assess the quality of the 

Exchange’s execution and routing 

services. The Exchange also believes the 

proposal would enhance competition 

because it would potentially enhance 

the performance of its order handling 

and execution of orders in equity 

securities by receiving market data 

directly from MIAX PEARL. Finally, the 

proposed rule change would not impact 

competition between market 

participants because it will affect all 

market participants equally. 

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 


ddrumheller on DSK120RN23PROD with NOTICES1