8898 Federal Register / Vol. 87, No. 32 / Wednesday, February 16, 2022 / Notices 

31Regulation NMS, 70 FR at 37498–99. 

32 15 U.S.C. 78s(b)(3)(A). 

33 17 CFR 240.19b–4(f)(2). 

34 15 U.S.C. 78s(b)(2)(B). 

35 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

enhancing order execution 

opportunities for member organization. 

As a result, the Exchange believes that 

the proposed change furthers the 

Commission’s goal in adopting 

Regulation NMS of fostering integrated 

competition among orders, which 

promotes ‘‘more efficient pricing of 

individual stocks for all types of orders, 

large and small.’’ 31

Intramarket Competition. The 

proposed change is designed to attract 

additional order flow to the Exchange. 

As described above, the Exchange 

believes that the proposed change 

would provide additional incentives for 

market participants to route liquidityremoving and liquidity-providing orders 

to the Exchange. Greater liquidity 

benefits all market participants on the 

Exchange by providing more trading 

opportunities and encourages member 

organizations to send orders, thereby 

contributing to robust levels of liquidity, 

which benefits all market participants 

on the Exchange. Greater overall order 

flow, trading opportunities, and pricing 

transparency benefit all market 

participants on the Exchange by 

enhancing market quality and 

continuing to encourage member 

organizations to send orders, thereby 

contributing towards a robust and wellbalanced market ecosystem. The current 

and proposed credits would be available 

to all similarly-situated market 

participants, and, as such, the proposed 

change would not impose a disparate 

burden on competition among market 

participants on the Exchange. 

Intermarket Competition. The 

Exchange operates in a highly 

competitive market in which market 

participants can readily choose to send 

their orders to other exchanges and offexchange venues if they deem fee levels 

at those other venues to be more 

favorable. As noted above, the Exchange 

currently has less than 12% market 

share of executed volume of equities 

trading. In such an environment, the 

Exchange must continually adjust its 

fees and rebates to remain competitive 

with other exchanges and off-exchange 

venues. Because competitors are free to 

modify their own fees and credits in 

response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

does not believe its proposed fee change 

can impose any burden on intermarket 

competition. 

The Exchange believes that the 

proposed change could promote 

competition between the Exchange and 

other execution venues, including those 

that currently offer similar order types 

and comparable transaction pricing, by 

encouraging additional orders to be sent 

to the Exchange for execution. 

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 foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 32 of the Act and 

subparagraph (f)(2) of Rule 19b–4 33

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

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) 34 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSE–2022–07 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–2022–07. 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–NYSE–2022–07 and should 

be submitted on or before March 9, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.35

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–03282 Filed 2–15–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Release No. 34–94219; File No. SR-Phlx– 

2022–05] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Its Fee 

Schedule, at Equity 7, Section 3 

February 10, 2022. 

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 

1, 2022, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 32 / Wednesday, February 16, 2022 / Notices 8899 

3The Exchange proposes to make a conforming 

change to the existing $0.0030 per share executed 

fee to reflect the fact that, going forward, it will 

apply to all other orders that remove liquidity from 

the Exchange to the extent that a member 

organization does not meet the criteria for its orders 

to qualify for the new $0.0029 per share executed 

fee. 

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

5 15 U.S.C. 78f(b)(4) and (5). 

6NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 

2010) (quoting Securities Exchange Act Release No. 

59039 (December 2, 2008), 73 FR 74770, 74782–83 

(December 9, 2008) (SR–NYSEArca–2006–21)). 

7Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 

(‘‘Regulation NMS Adopting Release’’). 

8The Exchange perceives no regulatory, 

structural, or cost impediments to market 

participants shifting order flow away from it. In 

particular, the Exchange notes that such shifts in 

liquidity and market share occur within the context 

of market participants’ existing duties of Best 

Execution and obligations under the Order 

Protection Rule under Regulation NMS. 

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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

fee schedule, at Equity 7, Section 3, as 

described further below. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/rules, 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 

Exchange 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 these 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

pricing schedule, at Equity 7, Section 3, 

to adopt a new $0.0029 per share 

executed fee for a member organization 

that removes liquidity from the 

Exchange to the extent that the member 

organization: (i) Adds a daily average of 

at least 2 million shares of liquidity in 

all securities from the Exchange during 

the month; (ii) increases its average 

daily volume added to the Exchange by 

50% or more during the month relative 

to the month of January 2022; (iii) 

increases its average daily volume 

added to and removed from the 

Exchange by 100% or more during the 

month relative to the month of January 

2022; and (iv) adds and removes a daily 

average of at least 10 million shares of 

liquidity in all securities from the 

Exchange during the month. The 

propose fee represents a discount 

relative to the existing fee of $0.0030 per 

share executed.3

The Exchange proposes to add this 

new discounted fee tier to provide an 

incentive for member organizations to 

engage in a significant amount of 

activity on the Exchange as to increase 

the extent that they do so relative to a 

recent baseline month. If the proposal is 

effective in achieving these objectives, 

then overall activity on the Exchange 

will increase, and the quality of the 

market will improve, to the benefit of all 

participants. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,4 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,5 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The Proposal Is Reasonable and Is an 

Equitable Allocation of Fees 

The Exchange’s proposed change to 

its schedule of fees is reasonable in 

several respects. As a threshold matter, 

the Exchange is subject to significant 

competitive forces in the market for 

equity securities transaction services 

that constrain its pricing determinations 

in that market. The fact that this market 

is competitive has long been recognized 

by the courts. In NetCoalition v. 

Securities and Exchange Commission, 

the D.C. Circuit stated as follows: ‘‘[n]o 

one disputes that competition for order 

flow is ‘fierce.’ . . . As the SEC 

explained, ‘[i]n the U.S. national market 

system, buyers and sellers of securities, 

and the broker-dealers that act as their 

order-routing agents, have a wide range 

of choices of where to route orders for 

execution’; [and] ‘no exchange can 

afford to take its market share 

percentages for granted’ because ‘no 

exchange possesses a monopoly, 

regulatory or otherwise, in the execution 

of order flow from broker 

dealers’. . . .’’ 6

The Commission and the courts have 

repeatedly expressed their preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In Regulation NMS, while 

adopting a series of steps to improve the 

current market model, the Commission 

highlighted the importance of market 

forces in determining prices and SRO 

revenues and, also, recognized that 

current regulation of the market system 

‘‘has been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 7

Numerous indicia demonstrate the 

competitive nature of this market. For 

example, clear substitutes to the 

Exchange exist in the market for equity 

security transaction services. The 

Exchange is only one of several equity 

venues to which market participants 

may direct their order flow. 

Within this environment, market 

participants can freely and often do shift 

their order flow among the Exchange 

and competing venues in response to 

changes in their respective pricing 

schedules.8 Within the foregoing 

context, the proposal represents a 

reasonable attempt by the Exchange to 

increase its market share relative to its 

competitors. 

The Exchange believes that it is 

reasonable and equitable to adopt the 

new $0.0029 per share executed fee. The 

Exchange seeks to increase the extent of 

overall activity in the market. It is 

reasonable and equitable to address this 

need by allocating its limited resources 

to offer member organizations a 

discounted fee, relative to the existing 

$0.0030 per share executed removal fee, 

to incent member organizations that 

remove liquidity from the Exchange to 

engage in significant activity overall 

activity on the Exchange, and to 

increase the extent to which they do so 

relative to a baseline month. If the 

proposal is effective in achieving this 

purpose, then the quality of the 

Exchange’s market will improve, to the 

benefit of all participants. 

The Proposal Is Not Unfairly 

Discriminatory 

The Exchange believes that the 

proposal is not unfairly discriminatory. 

The Exchange intends for its proposal to 

increase the extent to which member 

organizations add to and remove 


jspears on DSK121TN23PROD with NOTICES1
8900 Federal Register / Vol. 87, No. 32 / Wednesday, February 16, 2022 / Notices 

9 15 U.S.C. 78s(b)(3)(A)(ii). 

liquidity from the Exchange. Increased 

activity on the Exchange helps to 

maintain and improve its market 

quality. Although member organizations 

that will benefit directly from this 

proposal are those that are able to add 

and remove liquidity in the threshold 

volumes and to grow their activity by 

the threshold percentages, any 

improvement in market quality that the 

proposal facilitates will ultimately 

benefit all market participants. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Intramarket Competition 

The Exchange does not believe that its 

proposal will place any category of 

Exchange participants at a competitive 

disadvantage. As noted above, all 

member organizations of the Exchange 

will benefit from an increase in activity 

on the exchange. Moreover, member 

organizations are free to trade on other 

venues to the extent they believe that 

the discounted fee provided is not 

attractive. As one can observe by 

looking at any market share chart, price 

competition between exchanges is 

fierce, with liquidity and market share 

moving freely between exchanges in 

reaction to fee and credit changes. 

Intermarket Competition 

The Exchange believes that its 

proposed new fee will not impose a 

burden on competition because the 

Exchange’s execution services are 

completely voluntary and subject to 

extensive competition both from the 

other live exchanges and from offexchange venues, which include 

alternative trading systems that trade 

national market system stock. The 

Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges and with alternative trading 

systems that have been exempted from 

compliance with the statutory standards 

applicable to exchanges. Because 

competitors are free to modify their own 

fees in response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

believes that the degree to which fee 

changes in this market may impose any 

burden on competition is extremely 

limited. 

The proposed discounted fee is 

reflective of this competition because, as 

a threshold issue, the Exchange is a 

relatively small market so its ability to 

burden intermarket competition is 

limited. In this regard, even the largest 

U.S. equities exchange by volume only 

has 17–18% market share, which in 

most markets could hardly be 

categorized as having enough market 

power to burden competition. Moreover, 

as noted above, price competition 

between exchanges is fierce, with 

liquidity and market share moving 

freely between exchanges in reaction to 

fee and credit changes. This is in 

addition to free flow of order flow to 

and among off-exchange venues which 

comprises more than 40% of industry 

volume in recent months. 

In sum, the Exchange intends for the 

proposed fee to incent member 

organizations that remove liquidity from 

the Exchange to also engage in 

heightened activity on the Exchange and 

to thereby contribute to market quality, 

which is reflective of fierce competition 

for order flow noted above; however, if 

the proposed fee is unattractive to 

market participants, it is likely that the 

Exchange will either fail to increase its 

market share or even lose market share 

as a result. Accordingly, the Exchange 

does not believe that the proposed new 

fee will impair the ability of member 

organizations or competing order 

execution venues to maintain their 

competitive standing in the financial 

markets. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.9

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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 (http://www.sec.gov/ 

rules/sro.shtml;) or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

Phlx–2022–05 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–Phlx–2022–05. 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–Phlx–2022–05 and should 

be submitted on or before March 9, 

2022. 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 32 / Wednesday, February 16, 2022 / Notices 8901 

10 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. 93851 

(Dec. 22, 2021), 86 FR 74180 (Dec. 29, 2021) 

(‘‘Notice’’). 

4See, e.g., NYSE American Rule 902NY(e). 

5The first sentence of proposed NYSE Rule 37(b) 

would be based on NYSE American Rule 902NY(c) 

and NYSE Arca Rule 6.2–O(c). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–03279 Filed 2–15–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94217; File No. SR–NYSE– 

2021–73] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Order 

Approving a Proposed Rule Change To 

Amend NYSE Rule 37 To Incorporate 

Standards of Conduct for the 

Exchange’s Trading Floor 

February 10, 2022. 

I. Introduction 

On December 13, 2021, New York 

Stock Exchange LLC (‘‘NYSE’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Exchange Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to amend NYSE Rule 37 to 

incorporate standards of conduct for the 

Exchange’s Trading Floor. The proposed 

rule change was published for comment 

in the Federal Register on December 29, 

2021.3 The Commission has received no 

comments on the proposed rule change. 

This order approves the proposed rule 

change. 

II. Description of Proposed Rule Change 

The Exchange proposes to amend 

NYSE Rule 37 to incorporate standards 

of conduct for the Exchange’s Trading 

Floor that are modeled on rules of the 

Exchange’s affiliates NYSE American 

LLC and NYSE Arca, Inc., and to add 

amended NYSE Rule 37 to the list of 

minor rule violations in NYSE Rule 

9217. Proposed NYSE Rule 37 would be 

administered by the Exchange’s 

regulatory staff. 

a. Proposed Amendments to NYSE Rule 

37 

First, NYSE Rule 37 would be 

renamed ‘‘Admission and Conduct on 

the Trading Floor’’ similar to the NYSE 

American and NYSE Arca options rules, 

except that it would use the term 

‘‘Trading Floor.’’ 

Second, the existing text of NYSE 

Rule 37 governing admissions would be 

relocated to a new subsection (a) titled 

‘‘Admission,’’ once again similar to the 

NYSE American and NYSE Arca options 

rules.4 The existing text of NYSE Rule 

37 would be unchanged. 

Third, the Exchange would adopt a 

new subsection (b) titled ‘‘Conduct on 

the Trading Floor’’ that would be 

substantially similar to NYSE American 

Rule 902NY(b) and NYSE Arca Rule 

6.2–O(b). The proposed rule would 

provide that while on the Trading Floor, 

all members are required to act in a 

manner consistent with a fair and 

orderly market and with the 

maintenance of public confidence in the 

Exchange.5 The proposed rule would 

further provide that upon the 

determination that a member’s conduct 

on the Floor is such as to impair the 

maintenance of a fair and orderly 

market, or to impair public confidence 

in the operations of the Exchange, or 

that a member has otherwise violated 

the proposed rule, a member may be 

disciplined in accordance with the 

NYSE Rule 9000 Series, the Exchange’s 

disciplinary rules. Proposed NYSE Rule 

37(b) would also apply to a member’s 

failure to adequately supervise an 

employee or guest of the member to 

ensure compliance with the proposed 

rule. Unlike the NYSE American and 

NYSE Arca rules, proposed NYSE Rule 

37(b) would explicitly include as 

sanctionable conduct under the 

proposed rule the failure to adequately 

supervise the guest of a member. 

Because violations of proposed NYSE 

Rule 37 would be subject to discipline 

pursuant to the NYSE Rule 9000 Series, 

in paragraph (b) the Exchange proposes 

to include the phrase ‘‘or that a member 

has otherwise violated this rule.’’ Unlike 

the NYSE American and NYSE Arca 

rules, proposed NYSE 37(b) would not 

include text that: (1) States that fines 

imposed would not preclude further 

disciplinary action by the Exchange; or 

(2) refers to Exchange Trading Officials 

because, unlike their options market 

counterparts, they are not regulatory 

employees. 

Fourth, the Exchange proposes a new 

subsection (c) titled ‘‘Standards of Dress 

and Conduct’’ that is also substantially 

similar to NYSE American Rule 

902NY(c) and NYSE Arca Rule 6.2–O(c). 

Proposed NYSE Rule 37(c) would 

provide that all persons on the Floor 

must comply with the standards of dress 

and conduct set forth in proposed NYSE 

Rule 37(c)(1)(A)–(C). 

Proposed NYSE Rule 37(c)(1) would 

be titled ‘‘Standards of Dress’’ and 

would provide that all persons on the 

Floor, whether members, employees of 

member organizations, or visitors, must 

at all times, whether prior to, during, or 

after trading sessions, be dressed in a 

manner appropriate for business 

purposes and in accordance with good 

taste and professional standards. Like 

the NYSE American and NYSE Arca 

rules, proposed NYSE Rule 37(c)(1) 

would provide that the term ‘‘good 

taste’’ will be interpreted in a 

conservative manner. In addition, 

proposed NYSE Rule 37(c)(1) would set 

forth the following requirements and 

prohibitions: 

• Proposed NYSE Rule 37(c)(1)(A) 

would provide that personal attire must 

be neat, clean, and presentable. 

• Proposed NYSE Rule 37(c)(1)(B) 

would provide that all members and 

employees of member organizations 

must wear trading jackets and/or suit or 

sport coats while present on the Floor. 

• Proposed NYSE Rule 37(c)(1)(C) 

would provide that the Exchange may 

impose additional standards of dress or 

otherwise modify these standards of 

dress by means of a written policy that 

will be distributed to all members and 

member organizations. 

Proposed NYSE Rule 37(c)(2) would 

be titled ‘‘Standards of Conduct.’’ 

Proposed subsection (A) of NYSE Rule 

37(c)(2) would provide that all persons 

on the Floor are required to conduct 

themselves in accordance with a seemly 

and professional standard of behavior. 

Specifically, the proposed Rule would 

specify that no person while on the 

Floor shall: 

• Engage in any act or practice that 

may be detrimental to the interest or 

welfare of the Exchange (proposed 

NYSE Rule 37(c)(2)(A)(i)); 

• engage in any act or practice that 

may serve to disrupt or hinder the 

ordinary and efficient conduct of 

business (proposed NYSE Rule 

37(c)(2)(A)(ii)); 

• engage in any act or practice that 

may serve to jeopardize the safety or 

welfare of any other individual 

(proposed NYSE Rule 37(c)(2)(A)(iii)); 

or 

• act in a disorderly manner, which 

includes, but is not limited to, use of 

abusive or indecorous language and the 

display or circulation of written 

material or graphic images that are 

harassing, inappropriate, offensive, and/ 

or lewd (proposed NYSE Rule 

37(c)(2)(A)(iv)). 

Proposed subsection (B) of NYSE Rule 

37(c)(2) would provide that entry and 


jspears on DSK121TN23PROD with NOTICES1