9188 Federal Register / Vol. 89, No. 28 / Friday, February 9, 2024 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4To reflect the addition of Customer Cross 

Orders, the Exchange proposes to amend current 

Rule 6.62P–O(g) by removing the statement that ‘‘[a] 

Cross Order is a Qualified Contingent Cross 

(‘‘QCC’’) Order’’ and retaining the title of ‘‘Cross 

Orders’’. In addition, the Exchange proposes to 

update the title of paragraph Rule 6.62P–O (g)(1) to 

‘‘Qualified Contingent Cross (‘‘QCC’’) Orders.’’ The 

Exchange believes that these proposed changes 

would add clarity and transparency to, and improve 

the accuracy of, the Exchange’s rules. See proposed 

Rule 6.62P–O(g) and (g)(1). 

5See NYSE American Rule 900.3NYP(g)(2) 

(describing single-leg and complex Customer Cross 

Orders). See also Securities Exchange Act Release 

No. 99231 (December 22, 2023), 88 FR 89783 

(December 28, 2023) (SR–NYSEAMER–2023–66) 

(immediately effective rule change to adopt 

electronically-entered Customer Cross Orders). 

6See NYSE American Rule 900.3NYP(g)(2)(A). 

7See proposed Rule 6.62P–O(g)(2)(A) (providing, 

in relevant part, that ‘‘[a] C2C Order or Complex 

C2C Order that is not rejected per Rule 6.62P– 

O(g)(2)(B) [Execution of C2C Orders] or (C) 

[Execution of Complex C2C Orders], respectively, 

will immediately trade in full at its limit price’’). 

8Rule 1.1 defines ‘‘Minimum Price Variation’’ or 

‘‘MPV’’ as the price variations established by the 

Exchange, which for quoting and trading options 

traded on the Exchange are set forth in 6.72–O(a). 

9See proposed Rule 6.62P–O(g)(2)(A). See also 

Rule 6.47A–O, Commentary .01. 

Competitive product(s), applicable 

statutory and regulatory requirements 

include 39 U.S.C. 3632, 39 U.S.C. 3633, 

39 U.S.C. 3642, 39 CFR part 3035, and 

39 CFR part 3040, subpart B. Comment 

deadline(s) for each request appear in 

section II. 

II. Docketed Proceeding(s) 

1. Docket No(s).: CP2023–181; Filing 

Title: USPS Notice of Amendment to 

Priority Mail, First-Class Package 

Service, Parcel Select & Parcel Return 

Service Contract 1, Filed Under Seal; 

Filing Acceptance Date: February 5, 

2024; Filing Authority: 39 CFR 

3035.105; Public Representative: Cherry 

Yao; Comments Due: February 13, 2024. 

2. Docket No(s).: MC2024–182 and 

CP2024–188; Filing Title: USPS Request 

to Add Priority Mail Express, Priority 

Mail & USPS Ground Advantage 

Contract 46 to Competitive Product List 

and Notice of Filing Materials Under 

Seal; Filing Acceptance Date: February 

5, 2024; Filing Authority: 39 U.S.C. 

3642, 39 CFR 3040.130 through 

3040.135, and 39 CFR 3035.105; Public 

Representative: Alain Brou; Comments 

Due: February 13, 2024. 

3. Docket No(s).: MC2024–183 and 

CP2024–189; Filing Title: USPS Request 

to Add Priority Mail & USPS Ground 

Advantage Contract 184 to Competitive 

Product List and Notice of Filing 

Materials Under Seal; Filing Acceptance 

Date: February 5, 2024; Filing Authority: 

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

through 3040.135, and 39 CFR 3035.105; 

Public Representative: Samuel 

Robinson; Comments Due: February 13, 

2024. 

This Notice will be published in the 

Federal Register. 

Jennie L. Jbara, 

Alternate Certifying Officer. 

[FR Doc. 2024–02731 Filed 2–8–24; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99470; File No. SR– 

NYSEARCA–2024–09] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Modify Rule 6.62P–O 

February 5, 2024. 

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 January 

23, 2024, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or ‘‘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 6.62P–O (Orders and Modifiers) to 

adopt electronic Customer Cross Order 

and Complex Customer Cross Order 

functionality and to amend Rule 1.1 

(Definitions) to clarify the treatment of 

Professional Customer interest. The 

proposed rule change is available on the 

Exchange’s website at www.nyse.com, at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to modify 

Rule 6.62P–O (Orders and Modifiers) to 

adopt electronically-entered Customer 

Cross (‘‘C2C’’) Orders and Complex 

Customer Cross (‘‘Complex C2C’’) 

Orders (collectively, ‘‘Customer Cross 

Orders’’). The Exchange also proposes to 

amend the definition of ‘‘Customer and 

Professional Customer’’ (Rule 1.1.) to 

clarify the treatment of Professional 

Customer interest. 

Proposed Rule 6.62P–O(g)(2): Customer 

Cross Orders 4

The Exchange proposes to adopt rules 

governing electronically-entered 

Customer Cross Orders, which rules are 

substantively identical to the recentlyadopted Customer Cross Orders on the 

Exchange’s affiliate, NYSE American 

LLC (‘‘NYSE American’’).5

Proposed Rule 6.62P–O(g)(2) would 

describe Customer Cross Orders. 

Proposed Rule 6.62P–O(g)(2)(A) would 

provide that a C2C Order and a Complex 

C2C Order must be comprised of a 

Customer (but not a Professional 

Customer) order to buy and a Customer 

(but not a Professional Customer) order 

to sell at the same price and for the same 

quantity. The proposal to limit eligible 

interest to Customer but not 

Professional Customer interest is 

substantively identical to the rules of 

NYSE American.6 In addition, as 

proposed, a C2C Order or Complex C2C 

Order that is not rejected on arrival 

would immediately trade in full at its 

limit price.7 Further, proposed Rule 

6.62P–O(g)(2)(A) would provide that 

C2C Orders and Complex C2C Orders 

would not route and may be entered 

with a Minimum Price Variation 

(‘‘MPV’’) of $0.01 regardless of the MPV 

of the options series.8 Finally, the 

proposed Rule would specify that 

Commentary .01 to Rule 6.47A–O would 

apply to Customer Cross Orders, which 

means that OTP Holders and OTP Firms 

may not utilize Customer Cross Orders 

to increase their economic gain without 

first giving other trading interest on the 

Exchange an opportunity to participate 

in the trade or to trade at the transaction 

price when the OTP Holder or OTP 

Firm was already bidding or offering at 

that price.9 This proposed handling of 

Customer Cross Orders is substantively 

identical to the rules on NYSE 


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10See Rule 6.47A–O, Commentary .01 (providing 

an identical prohibition to the one set forth in 

NYSE American Rule 935NY, Commentary .01, 

which prevents order-senders from using the 

customer crossing mechanism to increase economic 

gain without first providing an opportunity of 

eligible interest to trade at the transaction price of 

the cross order). 

11See NYSE American Rule 900.3NYP(g)(2)(B). 

12The DBBO provides for the establishment of a 

derived (theoretical) bid or offer for a particular 

complex strategy. See Rule 6.91P–O(a)(5) (defining 

the DBBO and providing that the bid (offer) price 

used to calculate the DBBO on each leg will be the 

Exchange BB (BO) (if available), bound by the 

maximum allowable Away Market Deviation). The 

Away Market Deviation, as defined in Rule 6.91P– 

O(a)(1), ensures that an ECO does not execute too 

far away from the prevailing market. Rule 6.91P– 

O(a)(5) also provides for the establishment of the 

DBBO in the absence of an Exchange BB (BO), or 

ABB(ABO), or both. The Exchange’s definition of 

DBBO and its use in relation to Complex C2C 

Orders is identical to how this concept is defined 

and utilized by NYSE American. Compare Rule 

6.91P–O(a)(5) with NYSE American Rule 

980NYP(a)(5). 

13See proposed Rule 6.62P–O(g)(2)(C). See also 

Rule 6.91P–O(a)(5)(B) (providing that, ‘‘[i]f, for a leg 

of a complex strategy, there is neither an Exchange 

BBO nor an ABBO, the Exchange will not allow the 

complex strategy to trade until, for that leg, there 

is either an Exchange BB or BO, or an ABB or ABO, 

on at least one side of the market’’) and (a)(5)(C) 

(providing, in relevant part that, ‘‘[i]f the best bid 

and offer prices (when not based solely on the 

Exchange BBO) for a component leg of the complex 

strategy are locked or crossed, the Exchange will 

not allow an ECO for that strategy to execute against 

another ECO until this condition resolves’’). This 

proposed handling of Complex C2C Orders is 

identical to the handling of such orders on NYSE 

American. Compare proposed Rule 6.62P– 

O(g)(2)(C) with NYSE American Rule 

900.3NYP(g)(2)(C). 

14See proposed Rule 6.62P–O(g)(2)(B). See also 

NYSE American Rule 900.3NYP(g)(2)(B). 

15See NYSE American Rule 900.3NYP(g)(2)(C)(i)– 

(ii). 

16See proposed Rule 6.91P–O(b)(1) (providing 

that Electronic Complex Orders ‘‘may be entered as 

Limit Orders, Limit Orders designated as Complex 

Only Orders, Complex QCCs, or as Complex 

Customer Cross Orders) (emphasis added). See also 

NYSE American Rule 980NYP(b)(1). 

17See proposed Rule (emphasis added). See also 

NYSE American Rule 980NYP(b)(1). 

18See Rule 1.1 (defining Customer and 

Professional Customer). For order counting 

purposes, the term ‘‘Professional Customer’’ applies 

to an individual or organization that ‘‘places more 

than 390 orders in listed options per day on average 

during a calendar month for its own beneficial 

account(s).’’ See id. 

19See Securities Exchange Act Release No. 73665 

(November 21, 2014), 79 FR 70907, 70908 at n. 7 

(November 28, 2014) (SR–NYSEARCA–2014–133) 

(immediately effective rule change to adopt the 

definition of Professional Customer) (the ‘‘2014 

Proposal’’). See id., 79 FR, at 70908 at n. 7 (citing 

other options markets that had already adopted the 

Professional Customer designation). 

20See id., 79 FR at 70908, n. 8 (specifying that, 

at that time, at least two other options exchanges 

had adopted a definition of Professional Customer 

that was the ‘‘same’’ as the Exchange’s thenproposed definition and that those exchanges 

likewise did ‘‘not treat Professional Customers 

differently than Customers for purposes of 

execution or processing.’’). Thus, from inception, 

the treatment of market participants designated as 

Professional Customers differed among options 

exchanges. 

21See id., 79 FR at 70908. 

American regarding the handling of 

such orders on that exchange.10

Proposed Rule 6.62P–O(g)(2)(B) 

provides that a C2C Order that has one 

option leg would be rejected if received 

when the NBBO is crossed or if the C2C 

would 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 the 

Exchange BBO. The Exchange believes 

that the proposal would provide for the 

efficient entry and execution of C2C 

Orders while continuing to protect 

same-priced, displayed Customer 

interest (i.e., by ensuring that the C2C 

Order does not trade ahead of displayed 

Customer interest resting in the 

Consolidated Book). As noted above, the 

proposed C2C Orders would operate in 

a manner that is identical to the 

handling of single-leg customer cross 

orders per NYSE American rules.11

Proposed Rule 6.62P–O(g)(2)(C) 

would describe the Exchange’s pricing 

requirements for a Complex C2C Order, 

which requirements are identical to 

those set forth in NYSE American Rule 

900.3NYP(g)(2)(C). As is the case per 

NYSE American rules, to validate the 

price of a Complex C2C Order, the 

Exchange would rely on the Derived 

BBO (‘‘DBBO’’) as described in Rule 

6.91P–O(a)(5).12 If the Exchange is not 

able to calculate the DBBO for a 

complex strategy because of one of the 

circumstances described in Rule 6.91P– 

O(a)(5)(B)–(C), the Exchange will not 

execute an order for that strategy until 

the circumstance is resolved.13

Consistent with this handling, the 

Exchange proposes that it would reject 

a Complex C2C Order if the Exchange is 

unable to calculate the DBBO for a leg 

of the Complex C2C Order per Rule 

6.91P–O(a)(5)(B) or (a)(5)(C).14

In addition, proposed Rule 6.62P– 

O(g)(2)(C) provides that no option leg of 

a Complex C2C Order will trade at a 

price worse than the Exchange BBO and 

such order would be rejected if it fails 

to meet the following requirements: 

• the transaction price must be at or 

between the DBBO and may not equal 

the DBBO if the DBBO is calculated 

using the Exchange BBO and the 

Exchange BBO of any component of the 

complex strategy on either side of the 

market includes displayed Customer 

interest. If the DBB (DBO) includes 

displayed Customer interest on the 

Exchange, the transaction price must 

improve the DBB (DBO) by at least one 

cent ($0.01) (per proposed Rule 6.62P– 

O(g)(2)(C)(i)); and 

• the transaction price must be at or 

between the best-priced Complex 

Orders to buy and sell in the complex 

strategy and may not equal the price of 

a resting Customer Complex Order (per 

proposed Rule 6.62P–O(g)(2)(C)(ii)). 

As noted above the pricing 

requirements for the proposed Complex 

C2C Orders are identical to NYSE 

American’s requirement for such 

orders.15

The Exchange also proposes a 

conforming change to Rule 6.91P– 

O(b)(1) to include Complex Customer 

Cross Orders among the type of 

Electronic Complex Orders available for 

trading on the Exchange, which change 

would add clarity, transparency, and 

internal consistency to the Exchange’s 

rules.16

Rule 1.1: Definitions of Customer and 

Professional Customer 

The Exchange proposes to modify the 

definition of ‘‘Customer’’ to provide 

that, ‘‘unless otherwise specified’’, the 

definition of ‘‘Customer’’ includes a 

‘‘Professional Customer’’, as described 

below.17

Per Rule 1.1, for options traded on the 

Exchange, the terms ‘‘Customer’’ and 

‘‘Professional Customer’’ do not include 

a broker or dealer.18 When the Exchange 

adopted its definition of Professional 

Customer nearly a decade ago, it noted 

that its definition was ‘‘similar to 

designations that have been adopted by 

all other options exchanges.’’ 19 At that 

time, however, the Exchange explicitly 

stated that it was not proposing ‘‘to 

revise any order execution or processing 

rules, including its priority rules, to 

change the treatment of Professional 

Customers’’ but noted instead that 

‘‘Professional Customer orders will be 

treated as Customer orders under 

Exchange rules for all purposes, except 

those related to order marking.’’ 20 The 

Exchange further noted that ‘‘[a]s the 

only options Exchange to have not yet 

adopted the Professional Customer 

definition, the Exchange’s proposal will 

allow OTP Holders to mark their 

Professional Customer orders similarly 

regardless of whether the order is placed 

on the Exchange or another options 

exchange’’ and that adopting the 

Professional Customer designation 

would ‘‘facilitate cross-market 

initiatives (such as harmonizing rules 

relating to Obvious Errors).’’ 21 Although 

the Exchange was clear as to its intent 

when it adopted the Professional 

Customer designation, it did not modify 

its definition of ‘‘Customer’’ to reflect 

this intention. Thus, for avoidance of 

doubt and consistent with the 

Exchange’s previously stated intent, the 

Exchange proposes to modify the 

definition of Customer to include 


ddrumheller on DSK120RN23PROD with NOTICES1
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22See proposed Rule 1.1 (providing that ‘‘[f]or 

options traded on the Exchange, the term 

‘Customer’ does not include a broker or dealer and, 

unless otherwise specified, includes a ‘‘Professional 

Customer’’(emphasis added) See, e.g., proposed 

Rule 6.62P–O(g)(2) (specifying that Customer Cross 

Orders ‘‘must be comprised of a Customer (but not 

a Professional Customer) order to buy and a 

Customer (but not a Professional Customer) order to 

sell at the same price and for the same quantity’’)). 

23 15 U.S.C. 78f(b). 

24 15 U.S.C. 78f(b)(5). 

25See NYSE American Rule 900.3NYP(g)(2). 

26See NYSE American Rule 900.3NYP(g)(2)(B). 

27See NYSE American Rule 900.3NYP(g)(2)(C). 

Professional Customer, ‘‘unless 

otherwise specified’’ in Exchange 

rules.22 The Exchange believes this rule 

change would add clarity and 

transparency to the Exchange’s rules, 

making them easier to navigate and 

understand. 

Implementation 

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, is anticipated to 

be in the first quarter of 2024. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Securities Exchange Act of 1934,23 in 

general, and furthers the objectives of 

Section 6(b)(5),24 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 Customer Cross Orders (for 

single-leg and complex interest) would 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system because 

the proposed rules would allow OTP 

Holders and OTP Firms to electronically 

trade these types of crossing orders on 

the Exchange. The proposed 

functionality would benefit investors 

and the public interest because it would 

enhance and automate each order entry 

firms’ ability to submit two-sided 

Customer orders—i.e., Customer Cross 

Orders (both single-leg and complex). 

As such, the proposed rule change 

would provide OTP Holders and OTP 

Firms with an efficient means of 

executing their Customer orders. In 

addition, the proposed Customer Cross 

Orders would remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system because OTP Holders and OTP 

Firms would be given an additional way 

to execute single-leg and Complex 

Orders on the Exchange. As noted 

herein, the proposed Customer Cross 

Orders functionality is identical to 

functionality described in the rules of 

the Exchange’s affiliate, NYSE 

American.25 With this proposal, OTP 

Holders and OTP Firms would likewise 

have an additional venue on which to 

execute two-sided Customer orders 

electronically—i.e., Customer Cross 

Orders. As such, the proposed order 

types may attract additional Customer 

order flow (both two-sided and singlesided) to the Exchange, which may, in 

turn, result in greater liquidity available 

for trading on the Exchange. 

Regarding the proposed single-leg 

C2C Order type, the Exchange believes 

that the adoption of this order type 

would provide for the efficient entry 

and execution of C2C Orders while 

continuing to protect same-priced, 

displayed Customer interest (i.e., by 

ensuring that the C2C Order does not 

trade ahead of displayed Customer 

interest resting in the Consolidated 

Book). Further, as noted herein, the 

proposed order type is not new or novel 

because each C2C Order would operate 

in a manner that is identical to the 

handling of single-leg customer cross 

orders per the rules of NYSE 

American.26

The proposed Complex C2C Order 

would protect investors and the public 

interest by assuring that these orders 

comply with the existing priority and 

allocation rules applicable to the 

processing and execution of Complex 

Orders per Rule 6.91P–O. In particular, 

the proposed Complex C2C Orders 

would continue to protect same-priced, 

displayed Customer interest and would 

ensure that Complex C2C Orders do not 

trade ahead of such displayed Customer 

interest, whether in the leg markets or 

as Customer Complex Orders. The 

Exchange believes the proposed 

Complex C2C Orders would promote 

just and equitable principles of trade 

because (as discussed herein) the 

proposed orders—which are not new or 

novel—would operate in a manner that 

is identical to the handling of complex 

customer cross orders per the rules of 

NYSE American.27

The Exchange believes the proposed 

amendment to the Rule 1.1 definition of 

Customer and Professional Customer 

would remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system because it would add clarity and 

transparency to—and improve the 

accuracy of—the Exchange’s rules 

making them easier to comprehend to 

the benefit of all market participants. 

Finally, the proposed conforming 

changes to Rules 6.62P–O(g) and 6.91P– 

O(b)(1) to accommodate the adoption of 

single-leg and Complex Customer Cross 

Orders on the Exchange would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system because 

the rule changes would add clarity and 

transparency to—and improve the 

accuracy of—the Exchange’s rules 

making them easier to comprehend to 

the benefit of 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. Specifically, 

the Exchange’s proposal to adopt a new 

electronically-entered crossing order 

type (i.e., the Customer Cross Order) 

would not impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. The Exchange 

believes that the proposed change 

would not impose a burden on intramarket competition because the 

proposed order types would provide 

OTP Holders and OTP Firms with the 

option of utilizing another means of 

executing two-sided Customer interest— 

both single-leg and Complex Orders on 

the Exchange. The proposed change 

would also benefit investors by 

providing another venue (i.e., in 

addition to NYSE American) on which 

Customer Cross Orders may be 

submitted electronically. 

The Exchange believes that the 

proposed change would enhance 

intermarket competition. The Exchange 

believes that adopting Customer Cross 

Orders would promote competition as it 

would afford OTP Holders and OTP 

Firms another venue on which to 

execute two-sided Customer orders for 

single-leg and complex trading interest. 

Further, the Exchange anticipates that 

this proposal will create new 

opportunities for the Exchange to attract 

new business to the Exchange. As such, 

the Exchange believes that this proposal 

does not create an undue burden on 

intermarket competition. Rather, the 

Exchange believes that the proposed 

rule would bolster intermarket 

competition by promoting fair 

competition among individual markets. 

The Exchange does not believe the 

proposed amendment to the Rule 1.1 


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28See NYSE American Rule 900.3NYP(g)(2). 

29 15 U.S.C. 78s(b)(3)(A)(iii). 

30 17 CFR 240.19b–4(f)(6). 

31 Id. In addition, Rule 19b–4(f)(6)(iii) requires a 

self-regulatory organization to give the Commission 

written notice of its intent to file the proposed rule 

change, along with a brief description and text of 

the proposed rule change, at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

32 17 CFR 240.19b–4(f)(6). 

33 17 CFR 240.19b–4(f)(6)(iii). 

34See NYSE American Rule 900.3NYP(g)(2) and 

note 5, supra. 

35See proposed Exchange Rule 6.62P– 

O(g)(2)(B)(i). 

36See proposed Exchange Rule 6.62P–O(g)(2)(C). 

37See proposed Exchange Rule 6.62P–O(g)(2)(A) 

and NYSE American Rule 900.3NYP(g)(2)(A). See 

also Cboe Rule 5.38(f). 

38For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

definition of Customer and Professional 

Customer would impose any undue 

burden on intra-market or intermarket 

competition as all market participants 

on the Exchange would be subject to the 

updated definition. In addition, the 

proposal to limit the availability of the 

proposed Customer Cross Orders to 

interest submitted on behalf of 

Customers would align the Exchange 

with the rules of NYSE American, 

which has the same limitation.28

In addition, the proposed conforming 

changes to Rules 6.62P–O(g) and 6.91P– 

O(b)(1) to accommodate the addition of 

single-leg and Complex Customer Cross 

Orders would not impose an undue 

burden on intra-market or intermarket 

competition but would instead add 

clarity, transparency, and internal 

consistency to the Exchange’s rules. 

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 29 and Rule 

19b–4(f)(6) thereunder.30 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.31

A proposed rule change filed under 

Rule 19b–4(f)(6) 32 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),33 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. The Exchange 

states that waiver of the operative delay 

will provide market participants with an 

additional venue for executing twosided single-leg and complex Customer 

orders electronically. In addition, the 

proposed change to the definition of 

‘‘Customer’’ is designed to reflect the 

Exchange’s intention when it adopted 

the definition of definition of 

Professional Customer in 2014, as 

described above. 

The proposed C2C and Complex C2C 

Orders are substantively identical to 

order types adopted by the Exchange’s 

affiliate, NYSE American.34 Among 

other things, the proposed rules protect 

the priority of displayed Customer 

interest on the Exchange by providing 

that a C2C Order with one option leg 

will be rejected if it would trade at the 

same price as a displayed Customer 

order on the Exchange’s Consolidated 

Book.35 In addition, a Complex C2C 

Order must trade at a price that is (i) 

better than the DBB (DBO) if the DBB 

(DBO) includes displayed Customer 

interest on the Exchange, and (ii) better 

than a resting Customer Complex Order 

on the Exchange.36 Consistent with the 

rules of other options exchanges that 

offer customer cross orders, the 

proposed Customer Cross Orders are 

limited to Customer orders.37 The 

proposed change to the definition of 

Customer is designed to ensure that the 

definition reflects the Exchange’s 

intention, as described in the 2014 

Proposal, to treat Professional 

Customers as Customers, unless 

otherwise specified. The proposed 

conforming changes to Exchange Rules 

6.62P–O(g)(1) and 6.91P–O(b)(1) will 

update the Exchange’s rules to reflect 

the addition of Customer Cross Orders. 

The proposal, which does not raise new 

or novel regulatory issues, will provide 

market participants with an additional 

venue for crossing single-leg and 

complex Customer Cross Orders 

electronically. Accordingly, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposed rule change operative upon 

filing.38

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. 

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–2024–09 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–2024–09. 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 


ddrumheller on DSK120RN23PROD with NOTICES1
9192 Federal Register / Vol. 89, No. 28 / Friday, February 9, 2024 / Notices 

39 17 CFR 200.30–3(a)(12), (59). 1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(1). 

5 17 CFR 240.19b–4. 

6See Fee Schedule at https://

www.iexexchange.io/resources/trading/fee-schedule 

for the complete list of fee code combinations and 

their corresponding fees. 

7Fee Codes are identified on each execution 

report message from the Exchange in the Trade 

Liquidity Indicator (FIX tag 9730) field. See 

‘‘Transaction Fees/Definitions’’ on the Fee 

Schedule. 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9See Securities Exchange Act Release No. 98988 

(November 20, 2023), 88 FR 82926 (November 27, 

2023) (SR–IEX–2023–13) (‘‘Post Only Filing’’). 

10See IEX Trading Alert 2024–003, available at 

https://iextrading.com/alerts/#/239. 

11See IEX Rule 1.160(s). 

12 If a Member submits a Post Only order that is 

priced below $1.00 per share, the Exchange will 

disregard the Post Only instruction. See IEX Rule 

11.190(b)(20)(A). 

13See IEX Rule 1.160(p). 

14See IEX Rule 11.190(b)(21). 

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–2024–09 and should be 

submitted on or before March 1, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.39

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–02647 Filed 2–8–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99471; File No. SR–IEX– 

2024–04] 

Self-Regulatory Organizations; 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Pursuant to 

IEX Rule 15.110 To Amend IEX’s Fee 

Schedule 

February 5, 2024. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on January 

24, 2024, the Investors Exchange LLC 

(‘‘IEX’’ 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 

Pursuant to the provisions of Section 

19(b)(1) under the Act,4 and Rule 19b– 

4 thereunder,5 the Exchange is filing 

with the Commission a proposed rule 

change to amend its Fee Schedule, 6

pursuant to IEX Rule 15.110(a) and (c) 

(the ‘‘Fee Schedule’’), to revise the Fee 

Codes 7 applicable to transactions that 

involve a Post Only order that executes 

on entry. Changes to the Fee Schedule 

pursuant to this proposal are effective 

upon filing,8 and the Exchange plans to 

implement the changes on February 15, 

2024. 

The text of the proposed rule change 

is available at the Exchange’s website at 

www.iextrading.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 the 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization has 

prepared summaries, set forth in 

Sections A, B, and C below, of the most 

significant aspects 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 its 

Fee Schedule, pursuant to IEX Rule 

15.110(a) and (c), to revise the Fee 

Codes applicable to transactions that 

involve a Post Only order that executes 

on entry. IEX recently filed a rule 

change to introduce a Post Only order 

parameter instruction and a Trade Now 

instruction.9 The Post Only Filing was 

effective on filing but will not be 

implemented until February 15, 2024.10

As described in the Post Only Filing, 

Members 11 may attach a Post Only 

parameter instruction to any 

displayable, non-routable order priced 

at or above $1.00 per share (i.e., a Post 

Only order).12 A Post Only order will 

not remove contra-side liquidity from 

the IEX Order Book 13 on entry (and will 

rest on the Order Book as a displayed 

liquidity adding order), except in two 

specific circumstances: (i) if the value of 

such execution when removing liquidity 

equals or exceeds the value of such 

execution if the order instead posted to 

the IEX Order Book and subsequently 

provided liquidity, including the 

applicable fees charged or rebates 

provided (the ‘‘Sum of Fees’’), or (ii) if 

the contra-side resting order with which 

the incoming order could match is a 

non-displayed order with a ‘‘Trade 

Now’’ instruction.14 When an incoming 

Post Only order matches a resting order 

with a Trade Now instruction, the 

resting order converts into an executable 

order that removes liquidity against the 

incoming Post Only order, and the 

incoming Post Only order becomes the 

liquidity adding order. 

Fee Schedule Changes 

IEX proposes to introduce two new 

Fee Codes, to specify (1) when a Post 

Only order executed on entry, and (2) 

when a resting non-displayed order 

with a Trade Now instruction removed 

liquidity from a Post Only order that 

executed on entry. Specifically, as 

proposed, Fee Code Y will be included 

on any execution report for a Post Only 

order that executes on entry, and Fee 

Code W will be included on any 

execution report for a resting order with 

a Trade Now instruction that removes 

liquidity against an incoming liquidityadding Post Only order. IEX proposes to 

add these Fee Codes to the Fee Code 

Modifiers table on the IEX Fee Schedule 

as follows: 

Additional Fee 

Codes Description Fee 

Y ......................... Post Only order executes on entry .......................................... See Relevant Fee Code Combinations Below. 

W ........................ Resting order removes against Post Only order ..................... See Relevant Fee Code Combinations Below. 


ddrumheller on DSK120RN23PROD with NOTICES1