Federal Register / Vol. 89, No. 229 / Wednesday, November 27, 2024 / Notices 93703 

10 15 U.S.C. 78s(b)(2)(B). 

11 17 CFR 200.30–3(a)(12), (59). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4This proposed change aligns with NYSE Rule 

4530, which was recently updated to conform with 

FINRA 4530 regarding Reporting Requirements. See 

Securities Exchange Act Release No. 100168 (May 

17, 2024), 89 FR 45712 (May 23, 2024) (SR–NYSE– 

2024–28). See also NYSE Rule 4530. 

5See Securities Exchange Act Release No. 64784 

(June 30, 2011), 76 FR 39947 (July 7, 2011) (SR– 

NYSEAMEX–2011–42). FINRA Rule 4530, adopted 

in 2010, was modeled after NYSE American Rule 

351(a)-(d) and NASD Rule 3070. See Securities 

Exchange Act Release No. 63260 (November 5, 

2010), 75 FR 69508 (November 12, 2010) (SR– 

FINRA–2010–034). See also Securities Exchange 

Act Release No. 64560 (May 27, 2011), 76 FR 32246 

(June 3, 2011) (SR–FINRA–2011–024). 

6See Securities Exchange Act Release No. 68701 

(January 18, 2013), 78 FR 5532 (January 25, 2013) 

(SR–FINRA–2013–006) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

Relating to FINRA Rule 4530 (Reporting 

Requirements)). 

7See id. FINRA Rule 4530(a)(1)(A) requires a 

member to report external findings regarding the 

member or an associated person. FINRA Rules 

4530(a)(1)(C) and (D) require a member to report 

regulatory actions against the member or an 

associated person. FINRA Rules 4530(a)(1)(A), (C) 

and (D) do not expressly exclude findings and 

actions by FINRA. See generally id. NYSE American 

Rules 4530(a)(1)(A), (C) and (D) are virtually 

identical to the FINRA rules. 

under Section 19(b)(2)(B) 10 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–2024–29 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–2024–29. 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–2024–29 and should be 

submitted on or before December 18, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–27749 Filed 11–26–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101676; File No. SR– 

NYSEAMER–2024–72] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Harmonize NYSE American 

Rule 4530 

November 21, 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 

November 12, 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 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 harmonize 

NYSE American Rule 4530 (Reporting 

Requirements) with certain changes by 

the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) to FINRA 

Rule 4530. 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 harmonize 

NYSE American Rule 4530 (Reporting 

Requirements) with certain changes by 

FINRA to FINRA Rule 4530.4

Background and Proposed Rule Change 

NYSE American Rule 4530 requires 

member organizations to promptly 

report to the Exchange specified events, 

such as statutory disqualifications and 

quarterly statistical and summary 

information regarding written customer 

complaints. The Exchange adopted the 

text of FINRA Rule 4530 in 2011 to 

replace comparable provisions in its 

legacy reporting Rule 351.5

In 2013, FINRA amended Rule 

4530(e) to provide an exception from 

the reporting requirement for 

information disclosed on the Form U4 

(Uniform Application for Securities 

Industry Registration or Transfer) in 

order to avoid duplicative reporting.6 In 

addition, in 2013, FINRA added 

Supplementary Material .10 to FINRA 

Rule 4530 to provide that, for purposes 

of FINRA Rules 4530(a)(1)(A), (C) and 

(D) only, members are not required to 

report findings and actions by FINRA.7


ddrumheller on DSK120RN23PROD with NOTICES1
93704 Federal Register / Vol. 89, No. 229 / Wednesday, November 27, 2024 / Notices 

8See Securities Exchange Act Release No. 74953 

(May 13, 2015), 80 FR 28740 (May 19, 2015) (SR– 

FINRA–2015–011) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change Relating to 

the Reporting Requirements of FINRA Rule 

4530(a)(1)(H)). 

9See 15 U.S.C. 78c(a)(39). 

In 2015, FINRA again amended 

FINRA Rule 4530 to provide an 

exception from the reporting 

requirements of paragraph (a)(1)(H) of 

the rule for dealings with a member or 

associated person subject to statutory 

disqualification, if that member or 

associated person has been approved (or 

is otherwise permitted pursuant to 

FINRA rules and the federal securities 

laws) to be a member or to be associated 

with a member.8

The Exchange proposes to incorporate 

each of these amendments into NYSE 

American Rule 4530, as follows. 

NYSE American Rule 4530(a)(1)(H) 

NYSE American Rule 4530(a)(1)(H) 

requires member organizations to 

promptly report whenever the member 

organization or an associated person of 

the member organization is subject to a 

‘‘statutory disqualification’’ as defined 

in the Act.9 The rule also requires a 

member organization to report 

whenever the member organization or 

an associated person thereof is involved 

in the sale of any financial instrument, 

the provision of any investment advice 

or the financing of any such activities 

with any person that is subject to a 

‘‘statutory disqualification’’ as defined 

in the Act. The report must include the 

name of the person subject to the 

statutory disqualification and details 

concerning the disqualification. 

The Exchange proposes, consistent 

with current FINRA Rule 4530(a)(1)(H), 

to exclude activities with a disqualified 

member or associated person that has 

been approved (or is otherwise 

permitted pursuant to FINRA rules and 

the federal securities laws) to be a 

member organization or associated with 

a member organization. To effectuate 

this change, the Exchange proposes to 

add the following deletions (bracketed) 

and additions (italicized) to NYSE 

American Rule 4530(a)(1)(H): 

(H) is (i) subject to a ‘‘statutory 

disqualification’’ as that term is defined in 

the Exchange Act[,] or [is](ii) involved in the 

sale of any financial instrument, the 

provision of any investment advice or the 

financing of any such activities with any 

person [who]that is[,] subject to a ‘‘statutory 

disqualification’’ as that term is defined in 

the Exchange Act, provided, however, that 

this requirement shall not apply to activities 

with a member organization or an associated 

person that has been approved (or is 

otherwise permitted pursuant to Exchange 

rules and the federal securities laws) to be a 

member organization or to be associated with 

a member organization. The report shall 

include the name of the person subject to the 

statutory disqualification and details 

concerning the disqualification; or 

With the exception of conforming 

changes reflecting the Exchange’s 

membership. the proposed text is 

identical to FINRA’s counterpart rule. 

NYSE American Rule 4530(e) 

NYSE American Rule 4530(e) 

currently provides that a member 

organization is not required to report a 

specified event under the rule if it 

reports that event on the Form U5 

(Uniform Termination Notice for 

Securities Industry Registration), 

consistent with the requirements of that 

form. The exception does not extend to 

the reporting of quarterly statistical and 

summary customer complaint 

information under the rule. In order to 

eliminate duplicative reporting of 

information disclosed on a Form U4, 

and consistent with FINRA’s current 

rule, the Exchange proposes to provide 

a similar exception for certain specified 

events reported on the Form U4. To 

effectuate this change, the Exchange 

proposes to add the following deletions 

(bracketed) and additions (italicized) to 

NYSE American Rule 4530(e): 

(e) Nothing contained in this Rule shall 

eliminate, reduce or otherwise abrogate the 

responsibilities of a member organization or 

person associated with a member 

organization to promptly disclose required 

information on the Forms BD, U4 or U5, as 

applicable, to make any other required filings 

or to respond to the Exchange with respect 

to any customer complaint, examination or 

inquiry. In addition, member organizations 

are required to comply with the reporting 

obligations under paragraphs (a), (b) and (d) 

of this Rule, regardless of whether the 

information is reported or disclosed pursuant 

to any other rule or requirement, including 

the requirements of the Form[s] BD [or U4]. 

However, a member organization need not 

report an event otherwise required to be 

reported under (1) paragraph (a)(1) of this 

Rule if the member organization discloses the 

event on the Form U4, consistent with the 

requirements of that form, and indicates, in 

such manner and format that the Exchange 

may require, that such disclosure satisfies the 

requirements of paragraph (a)(1) of this Rule, 

as applicable; or (2) paragraphs (a) or (b) of 

this Rule if the member organization 

discloses the event on the Form U5, 

consistent with the requirements of that 

form. 

With the exception of conforming 

changes reflecting the Exchange’s 

membership, the proposed text is 

identical to FINRA’s counterpart rule. 

NYSE American Rule 4530, 

Supplementary Material .11 

Finally, the Exchange proposes to 

adopt the text of FINRA Rule 4530, 

Supplementary Material .10, as new 

NYSE American Rule 4530, 

Supplementary Material .11. 

NYSE American Rule 4530(a)(1)(A) 

requires a member organization to 

report that the member organization or 

an associated person has been found to 

have violated any securities-, 

insurance-, commodities-, financial- or 

investment-related laws, rules, 

regulations or standards of conduct of 

any domestic or foreign regulatory body, 

self-regulatory organization or business 

or professional organization. 

NYSE American Rule 4530(a)(1)(C) 

requires a member organization to 

report that the member organization or 

an associated person thereof has been 

named as a defendant or respondent in 

any proceeding brought by a domestic 

or foreign regulatory body or selfregulatory organization alleging the 

violation of any provision of the Act, or 

of any other federal, state or foreign 

securities, insurance or commodities 

statute, or of any rule or regulation 

thereunder, or of any provision of the 

by-laws, rules or similar governing 

instruments of any securities, insurance 

or commodities domestic or foreign 

regulatory body or self-regulatory 

organization. 

Finally, NYSE American Rule 

4530(a)(1)(D) requires a member 

organization to report that the member 

organization or associated person 

thereof has been denied registration or 

is expelled, enjoined, directed to cease 

and desist, suspended or otherwise 

disciplined by any securities, insurance 

or commodities industry domestic or 

foreign regulatory body or selfregulatory organization or is denied 

membership or continued membership 

in any such self-regulatory organization; 

or is barred from becoming associated 

with any member organization of any 

such self-regulatory organization. 

Since NYSE American Rules 

4530(a)(1)(A), (C) and (D) do not 

expressly exclude findings and actions 

by the Exchange or FINRA, the 

Exchange proposes to add the following 

new Supplementary Material .11 to 

NYSE American Rule 4530 (additions 

italicized): 

.11 For purposes of paragraphs (a)(1)(A), 

(C) and (D) of this Rule only, member 

organizations are not required to report 

findings and actions by the Exchange or by 

FINRA. 

With the exception of adding findings 

and actions by the Exchange, the 

proposed Supplementary Material .11 to 

NYSE American Rule 4530 is identical 

to FINRA Rule 4530.10. 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 229 / Wednesday, November 27, 2024 / Notices 93705 

10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). 

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

13 17 CFR 240.19b–4(f)(6). 

14Rule 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 satisfied this requirement. 

15 17 CFR 240.19b–4(f)(6). 

16 17 CFR 240.19b–4(f)(6)(iii). 17 15 U.S.C. 78s(b)(2)(B). 

Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Act,10 in general, and furthers the 

objectives of Section 6(b)(5),11 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 rule changes support the 

objectives of the Act by eliminating 

unnecessary reporting of information to 

the Exchange and allowing the 

Exchange to use its resources more 

efficiently. The Exchange believes that 

harmonizing Exchange rules modeled 

on FINRA’s rules would result in less 

burdensome and more efficient 

regulatory compliance without 

compromising the regulatory 

information available to the Exchange. 

As previously noted, except for changes 

reflecting the Exchange’s membership, 

the proposed additional text for NYSE 

American Rule 4530 is identical to the 

text in FINRA Rule 4530. As such, the 

proposed rule change would facilitate 

rule harmonization among selfregulatory organizations with respect to 

the reporting requirements, thereby 

fostering cooperation and coordination 

with persons engaged in facilitating 

transactions in securities and will 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system. 

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 rule change is not intended to 

address competitive issues but rather 

would reduce potential compliance 

burdens on member organizations by 

eliminating potentially duplicative 

information under NYSE American Rule 

4530. Specifically, the proposed rule 

change would reduce potential 

compliance burdens on firms by 

eliminating the requirements under 

NYSE American Rule 4530(a)(1)(H) to 

report to the Exchange each instance 

where a member organization or an 

associated person is involved in a 

financial activity with a disqualified 

member organization or associated 

person that has been approved or is 

otherwise permitted to be a member 

organization or associated with a 

member organization. Similarly, the 

proposed amendment to NYSE 

American Rule 4530(e) to provide an 

exception for information disclosed on 

the Form U4 will eliminate the burden 

on member organizations of having to 

report the same event twice. Finally, the 

addition of Supplementary Material .11 

to NYSE American Rule 4530 eliminates 

the burden on member organizations of 

having to report findings and actions by 

the Exchange or by FINRA for purposes 

of NYSE American Rules 4530(a)(1)(A), 

(C) and (D). 

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

A proposed rule change filed under 

Rule 19b–4(f)(6) 15 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),16 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. 

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– 

NYSEAMER–2024–72 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–NYSEAMER–2024–72. 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 


ddrumheller on DSK120RN23PROD with NOTICES1
93706 Federal Register / Vol. 89, No. 229 / Wednesday, November 27, 2024 / Notices 

18 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. 

4 15 U.S.C. 78f(b). 

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

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–NYSEAMER–2024–72 and should 

be submitted on or before December 18, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–27745 Filed 11–26–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101681; File No. SR– 

NYSEARCA–2024–95] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rule 7.37–E 

November 21, 2024. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),2 and Rule 19b–4 thereunder,3

notice is hereby given that on November 

18, 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 7.37–E to specify the Exchange’s 

source of data feeds from Investors’ 

Exchange, LLC (‘‘IEX’’) for purposes of 

order handling, order execution, order 

routing, and regulatory compliance. 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 update and 

amend the use of data feeds table in 

Rule 7.37–E(d), which sets forth on a 

market-by-market basis the specific 

securities information processor (‘‘SIP’’) 

and proprietary data feeds that the 

Exchange utilizes for the handling, 

execution, and routing of orders, and for 

performing the regulatory compliance 

checks related to each of those 

functions. Specifically, the Exchange 

proposes to amend the table in Rule 

7.37–E(d) to specify that, with respect to 

IEX, the Exchange will receive an IEX 

direct feed as its primary source of data 

for order handling, order execution, 

order routing, and regulatory 

compliance, and will use the SIP Data 

Feed as its secondary source for data 

from IEX. 

The Exchange proposes to make this 

change operative in the fourth quarter of 

2024, and, in any event, before the end 

of the first quarter of 2025. The 

Exchange proposes to announce the 

implementation date of this change by 

Trader Update. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act,4

in general, and furthers the objectives of 

Section 6(b)(5),5 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. Additionally, the 

Exchange believes that the proposed 

rule change is consistent with the 

Section 6(b)(5) requirement that the 

rules of an exchange not be designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes its proposal to 

update the table in Rule 7.37–E(d) to 

include the IEX direct feed will ensure 

that the Rule correctly identifies and 

publicly states on a market-by-market 

basis all of the specific SIP and 

proprietary data feeds that the Exchange 

utilizes for the handling, execution, and 

routing of orders, and for performing the 

regulatory compliance checks for each 

of those functions. The proposed rule 

change also removes impediments to 

and perfects the mechanism of a free 

and open market and protects investors 

and the public interest by providing 

additional specificity, clarity, and 

transparency in the Exchange’s rules. 

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. Rather, the 

Exchange believes that the proposal will 

enhance competition because providing 

the public and market participants with 

up-to-date information about the data 

feeds the Exchange will use for the 

handling, execution, and routing of 

orders, as well as for regulatory 

compliance would enhance 

transparency and enable investors to 

better assess the quality of the 

Exchange’s execution and routing 

services. The Exchange also believes the 

proposal would enhance competition 

because it would potentially enhance 

the performance of its order handling 

and execution of orders in equity 

securities by receiving market data 

directly from IEX. Finally, the proposed 

rule change would not impact 

competition between market 

participants because it will affect all 

market participants equally. 

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 


ddrumheller on DSK120RN23PROD with NOTICES1