Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 90143 

26 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. 

4See Rule 7.34–E(a)(1). The Exchange begins 

accepting orders 90 minutes before the Early 

Trading Session begins. See id. 

5See 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. 

6See ‘‘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-StockExchange-Plans-to-Extend-Weekday-Trading-on-itsNYSE-Arca-Equities-Exchange-to-22-Hours-a-Day/ 

default.aspx. 7As 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. 

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–2024–44 and should be 

submitted on or before December 5, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–26416 Filed 11–13–24; 8:45 am] 

BILLING CODE 8011–01–P 

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. 

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. 

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). 

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. 


ddrumheller on DSK120RN23PROD with NOTICES1
90144 Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 

8 15 U.S.C. 78f(b)(5). 

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. 

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 rule-comments@

sec.gov. 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 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 90145 

9 17 CFR 200.30–3(a)(12). 

1 12 U.S.C. 5465(e)(1). 

2 17 CFR 240.19b–4(n)(1)(i). 

3Securities Exchange Act Release No. 99712 

(March 11, 2024), 89 FR 18981 (March 15, 2024) 

(SR–FICC–2024–801). 

4On February 27, 2024, FICC filed the advance 

notice as a proposed rule change with the 

Commission pursuant to Section 19(b)(1) of the Act, 

15 U.S.C. 78s(b)(1), and Rule 19b–4 thereunder, 17 

CFR 240.19b–4. The notice of proposed rule change 

was published in the Federal Register on March 15, 

2024. Securities Exchange Act Release No. 99710 

(March 11, 2024), 89 FR 18991 (March 15, 2024) 

(SR–FICC–2024–003). On March 25, 2024, the 

Commission extended the review period of the 

proposed rule change, pursuant to section 19(b)(2) 

of the Act, 15 U.S.C. 78s(b)(2)(ii), until June 13, 

2024, as the date by which the Commission shall 

either approve, disapprove, or institute proceedings 

to determine whether to disapprove the proposed 

rule change. Securities Exchange Act Release No. 

99769 (March 19, 2024), 89 FR 20716 (March 25, 

2024) (SR–FICC–2024–003). On May 20, 2024, the 

Commission published in the Federal Register an 

Order Instituting Proceedings to determine whether 

to approve or disapprove the proposed rule change. 

Securities Exchange Act Release No. 100141 (May 

14, 2024), 89 FR 43915 (May 20, 2024) (SR–FICC– 

2024–003). On September 12, 2024, the 

Commission designated a longer period for 

Commission action on the proceedings to determine 

whether to disapprove the proposed rule change, 

until November 10, 2024. Securities Exchange Act 

Release No. 100958 (Sept. 6, 2024), 89 FR 74309 

(Sept. 12, 2024) (SR–FICC–2024–003). 

5Pursuant to Section 806(e)(1)(H) of the Act, the 

Commission may extend the review period of an 

advance notice for an additional 60 days, if the 

changes proposed in the advance notice raise novel 

or complex issues, subject to the Commission 

providing the financial market utility (‘‘FMU’’) with 

prompt written notice of the extension.12 U.S.C. 

5465(e)(1)(H); see supra note 3 at 18990 (explaining 

the Commission’s rationale for determining that the 

proposed changes in the advance notice raise novel 

and complex issues because the proposed changes 

to FICC’s margin model are a direct response by 

FICC to address the unique circumstances that 

occurred during recent periods of extreme market 

volatility (i.e., the pandemic-related market 

volatility in March 2020 and the volatility during 

the successive interest rate hikes that began in 

March 2022). 

6See 12 U.S.C. 5465(e)(1)(D). A memo regarding 

the Request for Additional Information and the 

tolled period of review is available at https://

www.sec.gov/comments/sr-ficc-2024-801/ 

srficc2024801-449019-1150022.pdf. 

7See 12 U.S.C. 5465(e)(1)(E)(ii) and (G)(ii). A 

memo regarding receipt of FICC’s response to the 

Request for Additional Information is available at 

https://www.sec.gov/comments/sr-ficc-2024-801/ 

srficc2024801-471851-1323835.pdf. 

8FICC has requested confidential treatment 

pursuant to 17 CFR 240.24b–2 with respect to 

Exhibit 3 and Exhibit 5b. 

9Securities Exchange Act Release No. 99712 (May 

14, 2024), 89 FR 43941 (May 20, 2024) (SR–FICC– 

2024–801) (‘‘Notice of Filing’’). 

10See 12 U.S.C. 5465(e)(1)(D). A memo regarding 

the second Request for Additional Information and 

the tolled period of review is available at https:// 

www.sec.gov/comments/sr-ficc-2024-801/ 

srficc2024801-506275-1473822.pdf. 

11See 12 U.S.C. 5465(e)(1)(E)(ii) and (G)(ii). A 

memo regarding receipt of FICC’s response to the 

second Request for Additional Information is 

available at https://www.sec.gov/comments/sr-ficc2024-801/srficc2024801-527175-1514362.pdf. 

12Comments on the Advance Notice are available 

at https://www.sec.gov/comments/sr-ficc-2024-801/ 

srficc2024801.htm. Comments on the proposed rule 

change are available at https://www.sec.gov/ 

comments/sr-ficc-2024-003/srficc2024003.htm. 

Because the proposals contained in the Advance 

Notice and the proposed rule change are the same, 

the Commission considers all comments received 

on the proposal, regardless of whether the 

comments are submitted with respect to the 

Advance Notice or the proposed rule change. 

13See Letter from Timothy B. Hulse, Managing 

Director, Financial Risk, Governance & Credit Risk, 

Depository Trust & Clearing Corporation, (June 24, 

2024) (‘‘FICC Letter’’). 

should be submitted on or before 

December 5, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–26418 Filed 11–13–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101566; File No. SR–FICC– 

2024–801] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

No Objection to Advance Notice, as 

Modified by Partial Amendment No. 1, 

To Adopt a Minimum Margin Amount at 

GSD 

November 8, 2024. 

On February 27, 2024, Fixed Income 

Clearing Corporation (‘‘FICC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) advance 

notice SR–FICC–2024–801 pursuant to 

Section 806(e)(1) of Title VIII of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act entitled the 

Payment, Clearing, and Settlement 

Supervision Act of 2010 (‘‘Clearing 

Supervision Act’’) 1 and Rule 19b– 

4(n)(1)(i) under the Securities Exchange 

Act of 1934 (‘‘Act’’).2 In the advance 

notice, FICC proposes to add a 

minimum margin amount calculation to 

the margin methodology of FICC’s 

Government Securities Division 

(‘‘GSD’’) to enhance margin collections 

during periods of extreme market 

volatility, as described more fully 

below. The notice of filing of the 

advance notice was published for 

comment in the Federal Register on 

March 15, 2024.3 4 Upon publication of 

notice of filing of the advance notice, 

the Commission extended the review 

period of the advance notice for an 

additional 60 days because the 

Commission determined that the 

advance notice raised novel and 

complex issues.5 On March 22, 2024, 

the Commission requested additional 

information from FICC pursuant to 

Section 806(e)(1)(D) of the Clearing 

Supervision Act, which tolled the 

Commission’s period of review of the 

advance notice until 120 days from the 

date the information requested by the 

Commission was received by the 

Commission.6 On April 26, 2024, the 

Commission received FICC’s response to 

the Commission’s request for additional 

information.7

On April 5, 2024, FICC filed Partial 

Amendment No. 1 to the advance notice 

to correct errors FICC discovered 

regarding the impact analysis filed as 

Exhibit 3 and discussed in the filing 

narrative, as well as correct a typo in the 

methodology formula in Exhibit 5b.8

Partial Amendment No. 1 corrected 

percentages and other figures 

throughout the filing narrative. The 

corrections in Partial Amendment No. 1 

did not change the substance of the 

advance notice. On May 20, 2024, the 

Commission published notice of the 

advance notice, as modified by Partial 

Amendment No. 1 (hereinafter, the 

‘‘Advance Notice’’), for comment in the 

Federal Register.9

On August 13, 2024, the Commission 

made a second request for additional 

information from FICC pursuant to 

Section 806(e)(1)(D) of the Clearing 

Supervision Act, which tolled the 

Commission’s period of review of the 

advance notice until 120 days from the 

date the information requested by the 

Commission was received by the 

Commission.10 On September 26, 2024, 

the Commission received FICC’s 

response to the Commission’s second 

request for additional information.11

The Commission has received 

comments regarding the substance of 

the changes proposed in the Advance 

Notice.12 In addition, the Commission 

received a letter from FICC responding 

to the comments.13 This publication 

serves as notice of no objection to the 

Advance Notice. 

I. The Advance Notice 

A. Executive Summary 

FICC proposes to add a new 

Minimum Margin Amount (‘‘MMA’’) 

calculation to the GSD margin 

methodology to ensure that FICC 

collects sufficient margin amounts from 

its members during sudden periods of 

extreme market volatility. Recently, 

FICC faced increased risk exposure to its 

members during two periods of extreme 

market volatility, i.e., the COVID-related 

volatility in March 2020 and the 

volatility resulting from the successive 

interest rate hikes that began in March 

2022. Those periods of volatility 

involved market price changes that 


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