14122 Federal Register / Vol. 89, No. 38 / Monday, February 26, 2024 / Notices 

6Securities Exchange Act Release No. 98508 (Sep. 

25, 2023), 88 FR 67407 (Sep. 29, 2023) (File No. SR– 

OCC–2023–007). 

7Partial Amendment No. 1 delays 

implementation of the proposed change; however, 

Partial Amendment No. 1 was amended and 

replaced by Amendment No. 2. See Notice of 

Amendment infra note 10, at 89 FR 5974. 

8 15 U.S.C. 78s(b)(2)(B). 

9See Securities Exchange Act Release No. 98932 

(Nov. 14, 2023), 88 FR 80781 (Nov. 20, 2023) (File 

No. SR–OCC–2023–007). 

10See Securities Exchange Act Release No. 99426 

(Jan. 24, 2024), 89 FR 5974 (Jan. 30, 2024) (File No. 

SR–OCC–2023–007) (‘‘Notice of Amendment’’). 

Amendment No. 2 adds a second phase of changes 

to the proposed rule change. The changes added in 

Phase 2 include improved information sharing 

between OCC and NSCC and are designed to 

facilitate the shortening of the standard settlement 

cycle for most broker-dealer transactions from T+2 

to T+1. See Securities Exchange Act Release No. 

96930 (Feb. 15, 2023), 88 FR 13872 (Mar. 6, 2023) 

(File No. S7–05–22). 

11Comments on the Advance Notice are available 

at https://www.sec.gov/comments/sr-occ-2023-801/

srocc2023801.htm. The Commission received one 

comment supporting the proposed changes. See 

comment from John P. Davidson, Principal, Pirnie 

Advisory (Oct. 4, 2023), available at https://

www.sec.gov/comments/sr-occ-2023-801/

srocc2023801-268179-645042.htm. Since the 

proposal contained in the Advance Notice was also 

filed as a proposed rule change, all public 

comments received on the proposal are considered 

regardless of whether the comments are submitted 

on the Proposed Rule Change or the Advance 

Notice. Comments on the Proposed Rule Change are 

available at https://www.sec.gov/comments/sr-occ2023-007/srocc2023007.htm. The Commission 

received comments on the proposed rule change 

that express concerns unrelated to the substance of 

the filing. See, e.g., comment from Gregory 

Englebert (Feb. 2, 2024) (raising concerns about a 

conflict of interest in the role of Financial Risk 

Management Officers as well as margin calls) 

comment from Curtis H. (Feb. 3, 2024) (referencing 

short selling and margin), and comment from CK 

Kashyap (Feb. 5, 2024) (referring to broker risk 

management in response to margin). 

12 15 U.S.C. 78s(b)(2). 

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

14 Id. 

15 17 CFR 200.30–3(a)(57). 

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

2 17 CFR 240.19b–4. 

3Capitalized terms not defined herein are defined 

in the NSCC Rules. The NSCC Rules are available 

at www.dtcc.com/-/media/Files/Downloads/legal/ 

rules/nscc_rules.pdf. 

4Securities Exchange Act Release No. 98213 

(Aug. 24, 2023), 88 FR 59968 (Aug. 30, 2023) (File 

No. SR–NSCC–2023–007) (‘‘Notice of Filing’’). 

5 15 U.S.C. 78s(b)(2). 

6Securities Exchange Act Release No. 98508 (Sep. 

25, 2023), 88 FR 67407 (Sep. 29, 2023) (File No. SR– 

NSCC–2023–007). 

7Partial Amendment No. 1 delays 

implementation of the proposed change; however, 

Partial Amendment No. 1 was amended and 

replaced by Amendment No. 2. See Notice of 

Amendment infra note 10, at 89 FR 6140. 

8 15 U.S.C. 78s(b)(2)(B). 

9Securities Exchange Act Release No. 98930 

(Nov. 14, 2023), 88 FR 80790 (Nov. 20, 2023) (File 

No. SR–NSCC–2023–007). 

10Securities Exchange Act Release No. 99432 

(Jan. 25, 2024), 89 FR 6140 (Jan. 31, 2024) (File No. 

SR–NSCC–2023–007) (‘‘Notice of Amendment’’). 

Amendment No. 2 adds a second phase of changes 

to the proposed rule change. The changes added in 

Phase 2 include improved information sharing 

between OCC and NSCC and are designed to 

facilitate the shortening of the standard settlement 

cycle for most broker-dealer transactions from T+2 

to T+1. See Securities Exchange Act Release No. 

96930 (Feb. 15, 2023), 88 FR 13872 (Mar. 6, 2023) 

(File No. S7–05–22). 

11The Commission received comments 

expressing general concerns unrelated to the 

substance of the filing. See, e.g., comments from JT 

Clark (Oct. 10, 2024) (general concern about 

disapprove the Proposed Rule Change.6

On November 8, 2023, OCC filed a 

Partial Amendment No. 1 to the 

Proposed Rule Change.7 On November 

14, 2023, the Commission published 

notice of Partial Amendment No. 1 and 

instituted proceedings, pursuant to 

section 19(b)(2)(B) of the Exchange Act,8

to determine whether to approve or 

disapprove the proposed rule change, as 

modified by the Partial Amendment No. 

1.9 On January 23, 2024, OCC filed 

Amendment No. 2 to the Proposed Rule 

Change, which was published in the 

Federal Register for public comment on 

January 30, 2024.10 The Commission 

has received comments regarding the 

Proposed Rule Change.11

Section 19(b)(2) of the Exchange 

Act 12 provides that proceedings to 

determine whether to approve or 

disapprove a proposed rule change must 

be concluded within 180 days of the 

date of publication of notice of filing of 

the proposed rule change. The time for 

conclusion of the proceedings may be 

extended for up to 60 days if the 

Commission determines that a longer 

period is appropriate and publishes the 

reasons for such determination.13 The 

180th day after publication of the Notice 

in the Federal Register is February 26, 

2024. 

The Commission is extending the 

period for Commission action on the 

Proposed Rule Change, as modified by 

Partial Amendment No. 1 and 

Amendment No. 2 (hereinafter, the 

‘‘Proposed Rule Change’’). The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the Proposed 

Rule Change so that the Commission has 

sufficient time to consider the issues 

raised by the Proposed Rule Change and 

to take action on the Proposed Rule 

Change. Accordingly, pursuant to 

section 19(b)(2)(B)(ii)(II) of the Exchange 

Act,14 the Commission designates April 

26, 2024, as the date by which the 

Commission should either approve or 

disapprove the Proposed Rule Change 

SR–OCC–2023–007. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–03776 Filed 2–23–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99567; File No. SR–NSCC– 

2023–007] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Designation of 

Longer Period for Commission Action 

on Proceedings To Determine Whether 

To Approve or Disapprove a Proposed 

Rule Change, as Modified by Partial 

Amendment No. 1 and Amendment No. 

2, To Modify the Amended and 

Restated Stock Options and Futures 

Settlement Agreement and Make 

Certain Revisions to the NSCC Rules 

February 20, 2024. 

On August 10, 2023, National 

Securities Clearing Corporation 

(‘‘NSCC’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

proposed rule change SR–NSCC–2023– 

007 (‘‘Proposed Rule Change’’) pursuant 

to Section 19(b) of the Securities 

Exchange Act of 1934 (‘‘Exchange 

Act’’) 1 and Rule 19b–4 2 thereunder to 

modify the Amended and Restated 

Stock Options and Futures Settlement 

Agreement dated August 5, 2017, 

between NSCC and the Options Clearing 

Corporation (‘‘OCC’’) and make certain 

revisions to NSCC’s related Rules & 

Procedures.3 The Proposed Rule Change 

was published for public comment in 

the Federal Register on August 30, 

2023.4

On September 25, 2023, pursuant to 

section 19(b)(2) of the Exchange Act,5

the Commission designated a longer 

period within which to approve, 

disapprove, or institute proceedings to 

determine whether to approve or 

disapprove the Proposed Rule Change.6

On November 8, 2023, NSCC filed a 

Partial Amendment No. 1 to the 

Proposed Rule Change.7 On November 

14, 2023, the Commission published 

notice of Partial Amendment No. 1 and 

instituted proceedings, pursuant to 

section 19(b)(2)(B) of the Exchange Act,8

to determine whether to approve or 

disapprove the proposed rule change, as 

modified by the Partial Amendment No. 

1.9 On January 24, 2024, NSCC filed 

Amendment No. 2 to the Proposed Rule 

Change, which was published in the 

Federal Register for public comment on 

January 31, 2024.10 The Commission 

has received no comments regarding the 

substance of the Proposed Rule 

Change.11


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 89, No. 38 / Monday, February 26, 2024 / Notices 14123 

corruption in the markets) and Anthony LaBree 

(Oct. 12, 2024) (concerns about OCC’s business 

practices). Comments are available at https://

www.sec.gov/comments/sr-nscc-2023-007/ 

srnscc2023007.htm. 

12 15 U.S.C. 78s(b)(2). 

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

14 Id. 

15 17 CFR 200.30–3(a)(57). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4For securities with a reference price between 

$0.00 and $25.00, the specified percentage is 10%; 

for securities with a reference price between $25.01 

and $50.00, the specified percentage is 5%; and for 

securities with a reference price greater than $50.00, 

the specified percentage is 3%. 

5Under current MIAX Pearl rules, a Limit Order 

to buy (sell) will be rejected if it is priced at or 

above (below) the greater of a specified dollar and 

percentage away from (1) the PBO (PBB), or, if 

unavailable, (2) the consolidated last sale price 

disseminated during the Regular Trading Hours on 

trade date, or, if unavailable, (3) the prior day’s 

Official Closing Price. See MIAX Pearl Rule 

2614(a)(1)(ix)(A). 

6The Exchange’s proposed hierarchy of reference 

prices is substantially similar to the hierarchy in the 

MIAX Pearl rules. The only differences are that the 

Exchange’s proposal (a) would continue to 

reference the NBO (NBB) instead of the PBO (PBB), 

as the Exchange’s Limit Order Price Protection 

Continued 

Section 19(b)(2) of the Exchange 

Act 12 provides that proceedings to 

determine whether to approve or 

disapprove a proposed rule change must 

be concluded within 180 days of the 

date of publication of notice of filing of 

the proposed rule change. The time for 

conclusion of the proceedings may be 

extended for up to 60 days if the 

Commission determines that a longer 

period is appropriate and publishes the 

reasons for such determination.13 The 

180th day after publication of the Notice 

in the Federal Register is February 26, 

2024. 

The Commission is extending the 

period for Commission action on the 

Proposed Rule Change, as modified by 

Partial Amendment No. 1 and 

Amendment No. 2 (hereinafter, the 

‘‘Proposed Rule Change’’). The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the Proposed 

Rule Change so that the Commission has 

sufficient time to consider the issues 

raised by the Proposed Rule Change and 

to take action on the Proposed Rule 

Change. Accordingly, pursuant to 

section 19(b)(2)(B)(ii)(II) of the Exchange 

Act,14 the Commission designates April 

26, 2024, as the date by which the 

Commission should either approve or 

disapprove the Proposed Rule Change 

SR–NSCC–2023–007. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–03775 Filed 2–23–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99566; File No. SR– 

NYSEAMER–2024–11] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change Amending Rule 7.31E(a)(2)(B) 

Regarding Limit Order Price Protection 

February 20, 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 February 

9,2024, NYSE American LLC (‘‘NYSE 

American’’ 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 7.31E(a)(2)(B) regarding Limit 

Order Price Protection. 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 7.31E(a)(2)(B) (‘‘Limit Order Price 

Protection’’) to provide for the 

application of Limit Order Price 

Protection during the Core Trading 

Session even where a contra-side NBB 

(NBO) has not been established. 

Currently, Rule 7.31E(a)(2)(B) 

provides that a Limit Order to buy (sell) 

will be rejected if it is priced at or above 

(below) the greater of $0.15 or a 

specified percentage away from the 

National Best Offer (National Best Bid) 

(‘‘NBO’’ and ‘‘NBB,’’ respectively),4 and 

that Limit Order Price Protection will 

not be applied to an incoming Limit 

Order to buy (sell) if there is no NBO 

(NBB). 

The Exchange has recently received 

requests from market participants to 

modify this rule so that during the Core 

Trading Session, Limit Order Price 

Protection would apply even when no 

contra-side NBB or NBO has been 

established. In such cases, market 

participants have suggested that the 

Limit Order Price Protection calculation 

should use an alternate reference price, 

such as the last consolidated round-lot 

price of the trading day or the prior 

trading day’s official closing price. That 

way, even if no contra-side NBB or NBO 

has been established, the Exchange 

would still apply Limit Order Price 

Protection using the best-available 

alternate reference price, thereby 

offering market participants greater 

protections against the execution of 

Limit Orders with aberrant prices 

during the Core Trading Session. The 

Exchange is aware that the Limit Order 

Price Protection rule on the MIAX Pearl 

equities exchange (‘‘MIAX Pearl’’) 

currently features such a hierarchy of 

reference prices, so that Limit Order 

Price Protection is applied to all Limit 

Orders, even where no contra-side NBB 

or NBO has been established.5

In light of these requests from market 

participants, the Exchange now 

proposes to amend Rule 7.31E(a)(2)(B) 

to provide a hierarchy of reference 

prices against which Limit Order Price 

Protection would apply during the Core 

Trading Session. As in the current rule, 

during the Core Trading Session, a Limit 

Order to buy (sell) would be rejected if 

it is priced at or above (below) the 

greater of $0.15 or a specified 

percentage (as set forth in the 

accompanying table) away from the 

NBO (NBB). But if such NBO (NBB) has 

not yet been established, the Exchange 

would use as the reference price the last 

consolidated round-lot price of that 

trading day, or, if none, the prior trading 

day’s Official Closing Price.6


khammond on DSKJM1Z7X2PROD with NOTICES