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[Federal Register Volume 89, Number 220 (Thursday, November 14, 2024)]
[Notices]
[Pages 90143-90145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26418]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-101559; File No. SR-NYSEARCA-2024-89]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
of Proposed Rule Change To Adopt Temporary Rule 7.34-E(T) and Revise 
Rules 1.1 and 7.34-E To Lengthen Current Extended Trading Sessions

November 7, 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 October 25, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt temporary Rule 7.34-E(T) and revise 
Rules 1.1 and 7.34-E to permit the Exchange to lengthen the current 
extended trading sessions. 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 adopt temporary Rule 7.34-E(T) and revise 
Rules 1.1 (Definitions) and 7.34-E (Trading Sessions) to permit the 
Exchange to lengthen current extended trading hours for NMS stocks to 
22 hours a day, 5 days a week. The Exchange also proposes certain 
technical, conforming changes to Rule 5.1-E(a) (General Provisions and 
Unlisted Trading Privileges) and Commentary .08 to Rule 9.5320-E 
(Prohibition Against Trading Ahead of Customer Orders).
Background and Proposed Rule Change
    The Exchange currently offers three trading sessions each day the 
Exchange is open for business unless the Exchange determines otherwise, 
as follows.
    First, the Exchange's Early Trading Session begins at 4:00 a.m. 
Eastern Time (``E.T.'') and concludes at the commencement of the Core 
Trading Session.\4\ The second or Core Trading Session begins for each 
security at 9:30 a.m. E.T. and ends at the conclusion of Core Trading 
Hours or the Core Closing Auction, whichever comes later.\5\ The final 
session is the Late Trading Session, which begins following the 
conclusion of the Core Trading Session and concludes at 8:00 p.m. E.T.
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    \4\ See Rule 7.34-E(a)(1). The Exchange begins accepting orders 
90 minutes before the Early Trading Session begins. See id.
    \5\ See Rule 7.34-E(a)(2). ``Core Trading Hours'' means the 
hours of 9:30 a.m. E.T. through 4:00 p.m. E.T. or such other hours 
as may be determined by the Exchange from time to time. See Rule 
1.1.
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    In order to facilitate the trading of NMS securities on the 
Exchange for 22 hours a day, 5 days a week, as recently announced,\6\ 
the Exchange proposes to adopt a temporary Rule 7.34-E titled ``7.34-
E(T).'' The proposed temporary rule would be identical to current Rule 
7.34-E with two exceptions. First, the beginning and ending times of 
the Early and Late Trading Sessions, respectively, would be changed to 
reflect the proposed enlarged extended trading hours. Second, the 
Exchange would shorten the time it will begin accepting orders before 
commencement of the Early Trading Session from 90 minutes to 30 
minutes. The current version of Rule 7.34-E would remain operative 
until the Exchange announces by Trader Update a transition to the new 
proposed Extended Trading Hours, which may depend on the effectiveness 
of additional, related rule filings as well as market infrastructure 
changes.\7\ Once the proposed enlarged extended trading hours are 
operative, the Exchange would file a proposed rule change to delete the 
current version of Rule 7.34-E and the ``T'' designation in Rule 7.34-
E(T).
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    \6\ See ``The New York Stock Exchange Plans to Extend Weekday 
Trading on its NYSE Arca Equities Exchange to 22 Hours a Day,'' 
October 25, 2024 (the ``Press Release''), available at https://ir.theice.com/press/news-details/2024/The-New-York-Stock-Exchange-Plans-to-Extend-Weekday-Trading-on-its-NYSE-Arca-Equities-Exchange-to-22-Hours-a-Day/default.aspx.
    \7\ As noted in the Press Release, the Exchange will be seeking 
support for the proposed extended hours trading from the U.S. 
securities information processors. See id.
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    Further, the Exchange would add the following legend to current 
Rule 7.34-E (new text italicized):
    This version of Rule 7.34-E will remain operative until the 
Exchange announces by Trader Update the expansion of Extended Trading 
Hours to encompass the hours set forth in Rule 7.34-E(T)(a). The 
Exchange will then file a proposed rule change to delete this version 
of Rule 7.34-E and preamble, and delete the ``T '' designation in Rule 
7.34-E(T).
    The Exchange would also revise current Rule 1.1 to add a definition 
of Extended Hours Trading to mean trading during the Early Trading 
Session and the Late Trading Session. The term is used without 
capitalization in current Rule 7.34-E(d) describing required customer 
disclosures. The Exchange proposes to use the proposed definition in 
proposed Rule 7.34-E(T)(d) and current Rule 7.34-E(d), with the 
exception of subsection (d)(4) of the current and proposed temporary 
rules, which use the phrase generically. The Exchange believes the 
proposal would add transparency and clarity to the Exchange's rules.
    The Exchange would also make certain technical, conforming changes 
to Rule 5.1-E(a) and Commentary .08 to Rule 9.5320-E.

[[Page 90144]]

    First, the Exchange would replace obsolete references to the 
``Opening session'' and ``Late Trading Session'' and the associated 
session start and end times in Pacific Time in Rule 5.1-E(a)(2)(i) with 
the defined term ``Extended Hours Trading.'' The Exchange would also 
delete a stray period at the end of the rule heading. The proposed 
changes would add transparency and clarity to the Exchange's rules.
    Finally, the Exchange would replace the obsolete reference to 
``6:30 a.m. to 1:00 p.m. Pacific Standard Time'' in Commentary .08 to 
Rule 9.5320-E with ``the Core Trading Session.'' The proposed change 
would also add transparency and clarity to the Exchange's rules.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b)(5) of the Act,\8\ in that 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.
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    \8\ 15 U.S.C. 78f(b)(5).
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    Generally, the Exchange believes that the proposal, including the 
proposed temporary rule to support longer extended hours trading, would 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system by providing a rules framework to 
support the Exchange's introduction of trading on the Exchange for 22 
hours a day, 5 days a week, which the Exchange believes will increase 
market accessibility, promote capital formation, and facilitate 
portfolio management. Further, the Exchange believes that adopting a 
temporary rule that would only be operative upon transition to the new 
proposed Extended Trading Hours, which may depend on the effectiveness 
of additional, related rule filings as well as market infrastructure 
changes, and adding a legend to the current version of Rule 7.34-E 
specifying that the current rule will remain operative until that time, 
would promote transparency in Exchange rules and add clarity as to 
which rules are operative and when, thereby reducing potential 
confusion, and making the Exchange's rules easier to navigate.
    The Exchange believes that adding a definition of Extended Hours 
Trading to Rule 1.1 would remove impediments to and perfect the 
mechanism of a free and open market and national market system by 
adding clarity to the Exchange's rules through the introduction of a 
definition that can be utilized immediately and that would not need to 
be updated once the Exchange migrates to 22 hour trading, 5 days a 
week. The Exchange further believes that eliminating obsolete legacy 
material from Rule 5.1-E(a) and Commentary .08 to Rule 9.5320-E 
similarly removes impediments to and perfects the mechanism of a free 
and open market by removing confusion that may result from having 
obsolete material in the Exchange's rulebook. The Exchange believes 
that eliminating such obsolete material would not be inconsistent with 
the public interest and the protection of investors because investors 
will not be harmed and in fact would benefit from increased 
transparency, thereby reducing potential confusion.

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 is 
designed to propose rule changes to support trading on the Exchange for 
22 hours a day, 5 days a week. The Exchange operates in a highly 
competitive environment in which unaffiliated exchange competitors and 
new entrants could compete to offer extended hours trading of similar 
duration, and the proposal would therefore enable the Exchange to 
compete on a more level playing field with these competitors.

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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission shall:
    (A) by order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEARCA-2024-89 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-2024-89. 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 (http://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 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSEARCA-2024-89 and

[[Page 90145]]

should be submitted on or before December 5, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-26418 Filed 11-13-24; 8:45 am]
BILLING CODE 8011-01-P
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