78416 Federal Register / Vol. 89, No. 186 / Wednesday, September 25, 2024 / Notices 

11 15 U.S.C. 78s(b)(3)(A)(iii). 

12 17 CFR 240.19b–4(f)(6). 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 fulfilled this requirement. 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15For purposes only of accelerating the operative 

date of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

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

16 15 U.S.C. 78s(b)(2)(B). 

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. 

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)(iii) of the Act 11 and Rule 

19b–4(f)(6)(iii) thereunder.12

A proposed rule change filed under 

Rule 19b–4(f)(6) 13 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),14 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 take effect as soon as 

the technology associated with the 

proposed change is available, which is 

anticipated to be less than 30 days from 

the date of this filing. The Commission 

believes that waiver of the operative 

delay is consistent with the protection 

of investors and the public interest 

because the proposal raises no novel 

issues and would allow use of the MTS 

Modifier with odd lot quantities without 

delay and promote clarity in Exchange 

rules as to the order types that may be 

designated with an MTS Modifier. 

Accordingly, the Commission hereby 

waives the 30-day operative delay and 

designates the proposal operative upon 

filing.15

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) 16 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– 

NYSENAT–2024–26 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–NYSENAT–2024–26. 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–NYSENAT–2024–26 and should be 

submitted on or before October 16, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–21873 Filed 9–24–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101104; File No. SR– 

NYSEARCA–2024–78] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rule 7.31–E 

September 19, 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 

September 9, 2024, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rule 7.31–E regarding the Minimum 

Trade Size Modifier. 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. 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 186 / Wednesday, September 25, 2024 / Notices 78417 

4The rules of Cboe EDGA Exchange, Inc. 

(‘‘EDGA’’), Cboe EDGX Exchange, Inc. (‘‘EDGX’’), 

and Members Exchange (‘‘MEMX’’) appear to 

permit the use of instructions comparable to the 

MTS Modifier in any size. See EDGA Rules 11.2 

(providing that orders are eligible for odd-lot, 

round-lot, and mixed-lot executions unless 

otherwise indicated) and 11.6(h) (defining 

Minimum Execution Quantity instruction); EDGX 

Rules 11.2 and 11.6(h) (same); MEMX Rules 11.2 

and 11.6(f) (same). See also, e.g., IEX Rule 

1190(b)(3) (providing that a non-displayed order 

may be a Minimum Quantity Order and may be an 

odd lot order). 

5See NYSE American Rule 7.31E(i)(3) (‘‘A Limit 

IOC Order, Non-Displayed Limit Order, MPL Order, 

Tracking Order, Non-Displayed Primary Pegged 

Order, or Discretionary Pegged Order may be 

designated with an MTS Modifier.’’). 

6An ALO Order is a Non-Routable Limit Order 

that, unless it receives price improvement, will not 

remove liquidity from the NYSE Arca Book; an ALO 

Order may be designated as non-displayed. See 

Rule 7.31–E(e)(2). 

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

8 15 U.S.C. 78f(b)(5). 9See note 4, supra. 

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 regarding the Minimum 

Trade Size (‘‘MTS’’) Modifier. 

Rule 7.31–E(i)(3) provides that a Limit 

IOC Order, Non-Displayed Limit Order, 

MPL Order, or Tracking Order may be 

designated with an MTS Modifier. Rule 

7.31–E(i)(3)(A) currently provides that 

an MTS must be a minimum of a round 

lot and that an order with an MTS 

Modifier will be rejected if the MTS is 

less than a round lot or if the MTS is 

larger than the size of the order. The 

Exchange proposes to amend Rule 7.31– 

E(i)(3)(A) to provide that an MTS may 

be an odd lot quantity and thus 

proposes to eliminate rule text currently 

providing that an MTS must be a 

minimum of a round lot and that an 

order with an MTS of less than one 

round lot would be rejected. The 

Exchange believes that restricting the 

use of the MTS Modifier to round lot 

sizes only is unnecessary and that 

providing ETP Holders with the option 

to use the MTS Modifier with an odd lot 

quantity could increase liquidity and 

enhance opportunities for order 

execution on the Exchange. The 

Exchange notes that permitting odd-lot 

order quantities is not novel on the 

Exchange or other equity exchanges and 

believes that this proposed change is 

consistent with other equity exchanges’ 

approaches to the use of instructions 

similar to the MTS Modifier.4

The Exchange also proposes to amend 

Rule 7.31–E(i)(3) to include the 

Discretionary Pegged Order and nondisplayed ALO Order as order types that 

could be designated with an MTS 

Modifier. This clarifying change is 

intended only to reflect current 

behavior, by providing a complete list of 

the order types that may be designated 

with an MTS Modifier. The Exchange 

notes that inclusion of the Discretionary 

Pegged Order would align Rule 7.31– 

E(i)(3) with the rules of its affiliate, 

NYSE American LLC (‘‘NYSE 

American’’), which already provide that 

a Discretionary Pegged Order may be 

designated with an MTS Modifier,5

thereby promoting consistency in the 

rules of affiliated exchanges as to the 

same order type. The Exchange also 

believes that the inclusion of the nondisplayed ALO Order 6 as an order type 

that may be designated with an MTS 

Modifier is consistent with the existing 

use of the MTS Modifier with nondisplayed order types such as NonDisplayed Limit Orders and MPL Orders 

(including MPL–ALO Orders). 

Moreover, although the non-displayed 

ALO Order is a Limit Order that is nondisplayed, the Exchange believes that 

specifically including the non-displayed 

ALO Order in the text of Rule 7.31– 

E(i)(3) would reduce ambiguity as to the 

order types that may be designated with 

an MTS Modifier. 

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 no later 

than in the fourth quarter of 2024. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act,7

in general, and furthers the objectives of 

Section 6(b)(5),8 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 

protect investors and the public interest 

because it would provide ETP Holders 

with the option to use the MTS Modifier 

with odd lot quantities, which could 

encourage order flow to the Exchange 

and promote opportunities for order 

execution on the Exchange, to the 

benefit of all market participants. The 

proposed change would also clarify that 

the MTS Modifier may be used in 

conjunction with Discretionary Pegged 

Orders and non-displayed ALO Orders, 

thereby removing impediments to, and 

perfecting the mechanism of, a free and 

open market and a national market 

system by updating Exchange rules to 

ensure that they reflect the current 

availability of the MTS Modifier and 

promoting consistency and specificity 

in Exchange rules as to the use of such 

modifier with non-displayed order 

types, as well as consistency with the 

rules of an affiliated exchange with 

respect to the Discretionary Pegged 

Order. The Exchange notes that the 

proposed change would not otherwise 

impact the operation of the MTS 

Modifier as provided under current 

Exchange rules. The Exchange also 

believes that the proposed change 

would align Exchange rules with the use 

of instructions similar to the MTS 

Modifier on other equity exchanges, 

thereby removing impediments to, and 

perfecting the mechanism of, a free and 

open market and a national market 

system.9

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. The 

proposed change would allow the 

optional MTS Modifier to be used with 

an odd lot quantity and accurately 

reflect the order types that may be 

designated with an MTS Modifier. The 

Exchange believes that the proposed 

change would promote competition 

among exchanges by offering ETP 

Holders options available on other 

equity exchanges and, to the extent the 

proposed change would increase 

opportunities for order execution, 

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. 


ddrumheller on DSK120RN23PROD with NOTICES1
78418 Federal Register / Vol. 89, No. 186 / Wednesday, September 25, 2024 / Notices 

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

11 17 CFR 240.19b–4(f)(6). 

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

13 17 CFR 240.19b–4(f)(6). 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 fulfilled this requirement. 

14 17 CFR 240.19b–4(f)(6). 

15 17 CFR 240.19b–4(f)(6)(iii). 

16For purposes only of accelerating the operative 

date of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 17 15 U.S.C. 78s(b)(2)(B). 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 100337 

(June 14, 2024), 89 FR 52148 (‘‘Notice’’). 

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)(iii) of the Act 12 and Rule 

19b–4(f)(6)(iii) thereunder.13

A proposed rule change filed under 

Rule 19b–4(f)(6) 14 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),15 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 take effect as soon as 

the technology associated with the 

proposed change is available, which is 

anticipated to be less than 30 days from 

the date of this filing. The Commission 

believes that waiver of the operative 

delay is consistent with the protection 

of investors and the public interest 

because the proposal raises no novel 

issues and would allow use of the MTS 

Modifier with odd lot quantities without 

delay and promote clarity in Exchange 

rules as to the order types that may be 

designated with an MTS Modifier. 

Accordingly, the Commission hereby 

waives the 30-day operative delay and 

designates the proposal operative upon 

filing.16

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) 17 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–2024–78 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–2024–78. 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–2024–78 and should be 

submitted on or before October 16, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–21875 Filed 9–24–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101105; File No. SR– 

CboeBYX–2024–009] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Notice of Filing of 

Amendment No. 1 and Order Instituting 

Proceedings To Determine Whether To 

Approve or Disapprove of a Proposed 

Rule Change, as Modified by 

Amendment No. 1, To Amend 

Exchange Rule 11.25(e) To Allow Users 

To Utilize the Exchange’s Match Trade 

Prevention Functionality When 

Entering Periodic Auction Orders Onto 

the Exchange for Execution 

September 19, 2024. 

On June 6, 2024, Cboe BYX Exchange, 

Inc. (‘‘Exchange’’ or ‘‘BYX’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’), 

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

Securities Exchange Act of 1934 

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

proposed rule change to amend 

Exchange Rule 11.25(e) (‘‘Priority and 

Execution of Orders’’) to allow Users to 

utilize the Exchange’s Match Trade 

Prevention functionality when entering 

Periodic Auction Orders onto the 

Exchange for execution. The proposed 

rule change was published for comment 

in the Federal Register on June 21, 

2024.3 On August 5, 2024, the 

Commission extended the time period 

within which to approve, disapprove 

the proposed rule change, or institute 

proceedings to determine whether to 

approve or disapprove the proposed 


ddrumheller on DSK120RN23PROD with NOTICES1