Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 15233 

35See supra note 5. 

36For 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). 

37 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. 

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%. 

interest. The Exchange requested that 

the Commission waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission notes it has 

approved a proposed rule change 

substantially identical to the one 

proposed by the Exchange.35 The 

proposed change raises no novel legal or 

regulatory issues. Therefore, the 

Commission believes that waiver of the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest. Accordingly, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposed rule change operative upon 

filing.36

At any time within 60 days of the 

filing of the 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 

to determine whether the proposed rule 

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– 

MEMX–2024–04 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–MEMX–2024–04. 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–MEMX–2024–04 and should be 

submitted on or before March 22, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.37

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–04296 Filed 2–29–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99603; File No. SR–NYSE– 

2024–09] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Rule 

7.31(a)(2)(B) 

February 26, 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 

16, 2024, 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(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 7.31(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 7.31(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 


ddrumheller on DSK120RN23PROD with NOTICES1
15234 Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 

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 

mechanism has always done; and (b) unlike the 

MIAX Pearl rule, which permits an odd lot to serve 

as ‘‘the consolidated last sale price disseminated 

during the Regular Trading Hours on trade date,’’ 

the Exchange’s proposal would instead use the last 

consolidated round-lot price of that trading day, 

which the Exchange believes is a better indication 

of actual market conditions. Both the MIAX Pearl 

rule and the Exchange’s proposed rule would use 

the prior trading day’s Official Closing Price as the 

reference price of last resort. 

7See Securities Exchange Act Release No. 99566 

(SR–NYSEAMER–2024–11). 

8As set out in Rule 7.34(a)(1), only UTP 

Securities are eligible to trade in the Early Trading 

Session. ‘‘UTP Security’’ is defined in Rule 1.1(cc) 

as a security that is listed on a national securities 

exchange other than the Exchange and that trades 

on the Exchange pursuant to unlisted trading 

privileges. 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

11See supra notes 5 and 6. 

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 7.31(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 This 

proposal is substantively identical to an 

immediately-effective rule change 

recently filed by the Exchange’s affiliate 

exchange, NYSE American LLC (‘‘NYSE 

American’’).7

As in the NYSE American filing, the 

Exchange does not propose for this 

change to apply during the Early 

Trading Session, during which the 

Exchange trades only UTP Securities.8

This is because with respect to the Early 

Trading Session, there is a higher 

likelihood that overnight news 

developments may move the market 

more than the percentages specified in 

the Limit Order Price Protection rule. If, 

in the absence of an NBO (NBB), such 

percentages were applied to the prior 

trading day’s Official Closing Price, this 

might lead the Exchange to reject orders 

that are appropriately trying to establish 

a quote at the new market level. For this 

reason, the Exchange believes the 

current rule should continue to govern 

during the Early Trading Session, such 

that if there is no contra-side NBO 

(NBB) for a Limit Order in a UTP 

Security, Limit Order Price Protection 

will not be applied. 

Accordingly, the Exchange proposes 

to amend and reorganize Rule 

7.31(a)(2)(B) into three sub-sections, 

with sub-section (i) describing the 

relevant reference prices during the 

Core Trading Session, sub-section (ii) 

describing the relevant reference price 

during the Early Trading Session, and 

sub-section (iii) describing the balance 

of the current rule. 

Specifically, the Exchange proposes 

that new sub-section (i) of Rule 

7.31(a)(2)(B) would provide that during 

the Core Trading Session, 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 (as set 

forth in the accompanying table) away 

from ‘‘(a) the NBO (NBB), or, if none, (b) 

the last consolidated round-lot price of 

that trading day, or, if none, (c) the prior 

trading day’s Official Closing Price.’’ 

The Exchange proposes that new subsection (ii) of the rule would provide 

that during the Early Trading Sessions, 

a Limit Order in a UTP Security to buy 

(sell) will 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), and that Limit Order Price 

Protection will not be applied to an 

incoming Limit Order in a UTP Security 

to buy (sell) if there is no NBO (NBB). 

Finally, the Exchange proposes that 

the balance of the current rule be moved 

to new sub-section (iii) after the new 

subtitle ‘‘Applicability.’’ 

The Exchange does not propose to 

make any other changes to the rule, nor 

does it propose any changes to the $0.15 

or specified percentages used in the 

calculation of Limit Order Price 

Protection. 

Implementation 

The Exchange anticipates 

implementing the proposed change in 

the first quarter of 2024 and, in any 

event, will implement the proposed rule 

change no later than the end of June 

2024. The Exchange will announce the 

timing of such changes by Trader 

Update. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,9 in general, and 

with Section 6(b)(5),10 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 change would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and in 

general, protect investors and the public 

interest, because the use a substantially 

similar hierarchy of reference prices for 

the application of Limit Order Price 

Protection when no contra-side NBO or 

NBB has been established is currently in 

effect on MIAX Pearl and is the subject 

of an immediately-effective rule filing 

on NYSE American, and therefore is not 

novel.11 The Exchange further believes 

that the proposed change would 

enhance the Exchange’s Limit Order 

Price Protection mechanism during the 

Core Trading Session, because it would 

apply using the best-available alternate 

reference price when a contra-side NBO 

or NBB has not been established, 

thereby offering market participants 

greater protection from aberrant prices 

and improving continuous trading and 

price discovery. In addition, the 

proposal to enhance Limit Order Price 

Protection by adding alternative 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 15235 

12 15 U.S.C. 78s(b)(3)(A)(iii). 

13 17 CFR 240.19b–4(f)(6). 

14 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. 

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

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

reference prices to apply to the Core 

Trading Session would assist with the 

maintenance of fair and orderly markets 

because such mechanisms protect 

investors from potentially receiving 

executions away from the prevailing 

market prices. 

The Exchange also believes that it 

would protect investors and the public 

interest for the Exchange to maintain the 

current Limit Order Price Protection 

rule for the Early Trading Session, 

during which the Exchange trades only 

UTP Securities. With respect to the 

Early Trading Session, there is a higher 

likelihood that overnight news 

developments may move the market 

more than the percentages specified in 

the Limit Order Price Protection rule. If, 

in the absence of an NBO (NBB), such 

percentages were applied to the prior 

trading day’s Official Closing Price, this 

might lead the Exchange to reject orders 

that are appropriately trying to establish 

a quote at the new market level. For this 

reason, the Exchange believes that, for 

the protection of investors and the 

public interest, the current rule should 

continue to govern during the Early 

Trading Session, such that if there is no 

contra-side NBO (NBB) for a Limit 

Order in a UTP Security, Limit Order 

Price Protection will not be applied. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange believes that the 

proposed rule change will not impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change would not address 

competitive issues but rather would 

enhance the Exchange’s Limit Order 

Price Protection mechanism, to further 

protect market participants from 

aberrant prices and improve continuous 

trading and price discovery. 

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 12 and Rule 

19b–4(f)(6) thereunder.13 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.14

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) 15 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–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–NYSE–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 

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–2024–09 and should be 

submitted on or before March 22, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–04297 Filed 2–29–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99604; File No. SR–ISE– 

2024–06] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing of Proposed 

Rule Change To Amend the Short Term 

Option Series Program 

February 26, 2024. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on February 

15, 2024, Nasdaq ISE, LLC (‘‘ISE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 


ddrumheller on DSK120RN23PROD with NOTICES1