Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 106709 

26See, e.g., Spot Bitcoin ETP Approval Order at 

3011; Spot Ether ETP Approval Order at 46941; 

Second Spot Bitcoin ETP Approval Order at 62822; 

Second Spot Ether ETP Approval Order at 59787. 

27See Hashdex Filing at 80976–78; Franklin 

Filing at 15–17, 19–26. 

28See Hashdex Filing at 80977; Franklin Filing at 

23. 

29See Nasdaq Rule 5711(d)(iii); BZX Rule 

14.11(a). 

30See Hashdex Filing at 80977; Franklin Filing at 

25. 

31See supra note 26. 

32See supra note 4. 

33See also supra Section II.B. 

34See Spot Bitcoin ETP Approval Order; Spot 

Ether ETP Approval Order; Second Spot Bitcoin 

ETP Approval Order; Second Spot Ether ETP 

Approval Order. 

35 15 U.S.C. 78s(b)(2). 

36 In addition, the shares of the Trust in the 

Hashdex Filing must comply with the requirements 

of Nasdaq Rule 5711(d) (Commodity-Based Trust 

Shares) to be listed and traded on Nasdaq on an 

initial and continuing basis; and the shares of the 

Trust in the Franklin Filing must comply with the 

requirements of BZX Rule 14.11(e)(4) (CommodityBased Trust Shares) to be listed and traded on BZX 

on an initial and continuing basis. 

37 15 U.S.C. 78s(b)(2). 

38 15 U.S.C. 78f(b)(5); 15 U.S.C. 78k– 

1(a)(1)(C)(iii). 

39 15 U.S.C. 78s(b)(2). 

40 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. 101559 

(November 7, 2024), 89 FR 90143 (‘‘Initial 

Proposal’’). 

manipulative acts and practices in the 

specific context of the Proposals. 

B. Exchange Act Section 

11A(a)(1)(C)(iii) 

Each Proposal sets forth aspects of its 

proposed ETP, including the availability 

of pricing information, transparency of 

portfolio holdings, and types of 

surveillance procedures, that are 

consistent with other ETPs that the 

Commission has approved.26 This 

includes commitments regarding: the 

availability of quotation and last-sale 

information for the shares of each Trust; 

the availability on the websites of each 

Trust of certain information related to 

the Trusts, including net asset values; 

the dissemination of intra-day 

indicative values by one or more major 

market data vendors, updated every 15 

seconds throughout the Exchanges’ 

regular trading hours; the Exchanges’ 

surveillance procedures and ability to 

obtain information regarding trading in 

the shares of the Trusts; the conditions 

under which the Exchanges would 

implement trading halts and 

suspensions; and the requirements of 

registered market makers in the shares 

of each Trust.27 In addition, in each 

Proposal, the applicable Exchange 

deems the shares of the applicable Trust 

to be equity securities, thus rendering 

trading in such shares subject to that 

Exchange’s existing rules governing the 

trading of equity securities.28 Further, 

the applicable listing rules of each 

Exchange require that all statements and 

representations made in its filing 

regarding, among others, the description 

of the applicable Trust’s holdings, 

limitations on such holdings, and the 

applicability of that Exchange’s listing 

rules specified in the filing, will 

constitute continued listing 

requirements.29 Moreover, each 

Proposal states that: the applicable Trust 

will represent to the applicable 

Exchange that it will advise that 

Exchange of any failure to comply with 

the applicable continued listing 

requirements; pursuant to obligations 

under Section 19(g)(1) of the Exchange 

Act, that Exchange will monitor for 

compliance with the continued listing 

requirements; and if the applicable 

Trust is not in compliance with the 

applicable listing requirements, that 

Exchange will commence delisting 

procedures.30

The Commission therefore finds that 

the Proposals, as with other ETPs that 

the Commission has approved,31 are 

reasonably designed to promote fair 

disclosure of information that may be 

necessary to price the shares of the 

Trusts appropriately, to prevent trading 

when a reasonable degree of 

transparency cannot be assured, to 

safeguard material non-public 

information relating to the Trusts’ 

portfolios, and to ensure fair and orderly 

markets for the shares of the Trusts. 

III. Accelerated Approval of the 

Franklin Filing 

The Commission finds good cause to 

approve the Franklin Filing prior to the 

30th day after the date of publication of 

notice of its Amendment No. 1 32 in the 

Federal Register. The amendment 

clarified the description of its Trust; 

further described the terms of the Trust; 

and conformed various representations 

in the amended filing to BZX’s listing 

standards and to representations that 

exchanges have made for other ETPs 

that the Commission has approved.33

The amended filing is now substantially 

similar to filings for other spot bitcoin 

ETPs and spot ether ETPs that the 

Commission has approved,34 and as 

discussed above in Section II.A, both (i) 

the spot bitcoin market and the CME 

bitcoin futures market and (ii) the spot 

ether market and the CME ether futures 

market remain consistently highly 

correlated. Accordingly, the 

Commission finds good cause, pursuant 

to Section 19(b)(2) of the Exchange 

Act,35 to approve the Franklin Filing on 

an accelerated basis. 

IV. Conclusion 

This approval order is based on all of 

the Exchanges’ representations and 

descriptions in their respective 

amended filings, which the Commission 

has carefully evaluated as discussed 

above.36 For the reasons set forth above, 

including the Commission’s correlation 

analyses, the Commission finds, 

pursuant to Section 19(b)(2) of the 

Exchange Act,37 that the Proposals are 

consistent with the requirements of the 

Exchange Act and the rules and 

regulations thereunder applicable to a 

national securities exchange, and in 

particular, with Section 6(b)(5) and 

Section 11A(a)(1)(C)(iii) of the Exchange 

Act.38

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Exchange Act,39

that the Hashdex Filing (SR–NASDAQ– 

2024–028) be, and hereby is, approved; 

and that the Franklin Filing (SR– 

CboeBZX–2024–091) be, and hereby is, 

approved on an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.40

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–30911 Filed 12–27–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101985; File No. SR– 

NYSEARCA–2024–89] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of 

Amendment No. 1 to a Proposed Rule 

Change To Adopt Temporary Rule 

7.34–E(T) and Revise Rules 1.1 and 

7.34–E to Lengthen the Current 

Extended Trading Sessions 

December 19, 2024. 

On October 25, 2024, NYSE Arca, Inc. 

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

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

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

19b–4 thereunder,2 a proposed rule 

change to adopt temporary rule 7.34– 

E(T) and revise rules 1.1 and 7.34–E to 

lengthen the current extended trading 

sessions. The proposed rule change was 

published for comment in the Federal 

Register on November 14, 2024.3 On 

December 13, 2024, the Exchange filed 

Amendment No. 1 to the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. Amendment No. 1 


ddrumheller on DSK120RN23PROD with NOTICES1
106710 Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 

4See Rule 7.34–E(a)(1). 

5See id. 

6See 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. 

amended and replaced the proposed 

rule change in its entirety. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change, as modified by Amendment No. 

1, 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 hours for NMS stocks 

to 1:30 a.m. E.T. through 11:30 p.m. E.T. 

on Monday through Thursday, and 1:30 

a.m. E.T. through 8:00 p.m. E.T. on 

Friday. This Amendment No. 1 

supersedes the Initial Proposal in its 

entirety. 

The text of 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 

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 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 1:30 

a.m. E.T. through 11:30 p.m. E.T. on 

Monday through Thursday, and 1:30 

a.m. E.T. through 8:00 p.m. E.T. on 

Friday. 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 

The Exchange currently offers three 

trading sessions each day the Exchange 

is open for business unless the 

Exchange determines otherwise, as 

follows. 

The Exchange’s first trading session, 

the 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 Exchange 

begins accepting orders 90 minutes 

before the Early Trading Session 

begins.5

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.6 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. 

Current Rule 7.34–E(b) requires that 

orders entered into the Exchange 

marketplace include a designation for 

which trading session(s) the order will 

remain in effect. The Exchange will 

reject orders entered without a trading 

session designation. An order is only 

eligible to participate in the designated 

trading session(s) and may remain in 

effect for one or more consecutive 

trading sessions on a particular day. 

Unless otherwise specified, an order 

designated for a later trading session 

will be accepted but not eligible to trade 

until the designated trading session 

begins. The Exchange will reject orders 

designated solely for a trading session 

that has already ended. 

Current Rule 7.34–E(c) describes the 

order types that are permitted in each 

session, as follows. 

Early Trading Session 

Orders and modifiers defined in Rule 

7.31–E designated for the Early Trading 

Session are eligible to participate in the 

Early Trading Session unless otherwise 

specified in Rule 7.34–E(c)(1)(A)–(F). 

Pursuant to Rule 7.34–E(c)(1)(A), 

Market Orders and Pegged Orders are 

not eligible to participate in the Early 

Trading Session, and such orders that 

include a designation for the Early 

Trading Session will be rejected. Market 

Pegged Orders and Discretionary Pegged 

Orders, regardless of the session 

designated for the order, may not be 

entered before or during the Early 

Trading Session and will also be 

rejected. Under Rule 7.34–E(c)(1)(B), 

Limit Orders designated Immediate or 

Cancel (‘‘IOC’’) are ineligible to 

participate in the Early Open Auction 

and will be rejected if entered before the 

Early Open Auction concludes. 

Pursuant to Rule 7.34–E(c)(1)(C), Limit 

Orders designated IOC entered before or 

during the Early Trading Session and 

designated for the Core Trading Session 

will be rejected if entered before the 

Auction Processing Period for the Core 

Open Auction. 

Rule 7.34–E(c)(1)(D) provides that for 

securities that are not eligible for an 

auction on the Exchange, Market Orders 

designated for the Core Trading Session 

and Auction-Only Orders will be routed 

to the primary listing market on arrival. 

Any order routed directly to the primary 

listing market on arrival will be 

cancelled if that market is not accepting 

orders. 

Pursuant to Rule 7.34–E(c)(1)(E), 

Market-on-Open Orders (‘‘MOO 

Orders’’), Market-on-Close Orders 

(‘‘MOC Orders’’), Limit-on-Close Orders 

(‘‘LOC Orders’’), Primary Only Orders, 

and Directed Orders designated for the 

Early Trading Session will be rejected. 

Finally, pursuant to Rule 7.34– 

E(c)(1)(F), Non-Displayed Limit Orders, 

Mid-Point Liquidity Orders (‘‘MPL 

Orders’’), Tracking Orders, and RPI 

Orders entered before the Auction 

Processing Period for the Early Open 

Auction concludes will also be rejected. 

Core Trading Session 

All orders and modifiers defined in 

Rule 7.31–E that are designated for the 

Core Trading Session are eligible to 

participate in the Core Trading Session 

unless otherwise specified in Rules 

7.34–E(c)(2)(A)–(C). 

Pursuant to Rule 7.34–E(c)(2)(A), 

Market Orders in securities that are not 

eligible for the Core Open Auction will 

be routed to the primary listing market 

until the first opening print of any size 

on the primary listing market or 10:00 

a.m. E.T., whichever is earlier. Pursuant 

to Rule 7.34–E(c)(2)(B), Auction-Only 

Orders in securities that are not eligible 

for an auction on the Exchange will be 

accepted and routed directly to the 

primary listing market. Finally, Rule 

7.34–E(c)(2)(C) provides that Limit 

Orders designated IOC entered before or 

during the Core Trading Session and 

designated for the Late Trading Session 

will be rejected if entered before the 

Auction Processing Period for the 

Closing Auction. 

Late Trading Session 

The orders and modifiers defined in 

Rule 7.31–E that are designated for the 

Late Trading Session are eligible to 

participate in the Late Trading Session 

unless otherwise specified in Rules 

7.34–E(c)(3)(A)–(C). 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 106711 

7See Rule 7.34–E(d)(1). 

8See id. at (d)(2). 

9See ‘‘The New York Stock Exchange Plans to 

Extend Weekday Trading on its NYSE Arca Equities 

Exchange to 22 Hours a Day,’’ October 25, 2024, 

available at https://ir.theice.com/press/newsdetails/2024/The-New-York-Stock-Exchange-Plansto-Extend-Weekday-Trading-on-its-NYSE-ArcaEquities-Exchange-to-22-Hours-a-Day/default.aspx. 

10See Securities Exchange Act Release No. 

101777 (November 27, 2024), 89 FR 97092, 97110– 

111 (December 06, 2024) (In the Matter of the 

Application of 24X National Exchange LLC for 

Registration as a National Securities Exchange; 

Findings, Opinion, and Order of the Commission) 

(‘‘Release No. 101777’’); see 24X Rule 3.21(g) & 

(i)(1)–(5). 

Pursuant to Rule 7.34–E(c)(3)(A), 

Market Orders and Pegged Orders are 

not eligible to participate in the Late 

Trading Session. The Exchange will 

reject Market Orders and Pegged Orders 

that include a designation for the Late 

Trading Session. Further, under Rule 

7.34–E(c)(3)(B), orders that are routed 

directly to the primary listing market on 

arrival will be cancelled if that market 

is not accepting orders. Finally, 

pursuant to Rule 7.34–E(c)(3)(C), MOO 

Orders, MOC Orders, LOC Orders, 

Primary Only Orders, and Directed 

Orders designated for the Late Trading 

Session will be rejected. 

Customer Disclosures 

Rule 7.34–E(d) provides that no ETP 

Holder may accept an order from a nonETP Holder for execution in the Early or 

Late Trading Session without disclosing 

to such non-ETP Holder that Limit 

Orders are the only orders that are 

eligible for execution during the Early 

and Late Trading Sessions 7 and that an 

order must be designated specifically for 

trading in the Early and/or Late Trading 

Session to be eligible for trading in the 

Early and/or Late Trading Session.8 In 

addition, Rule 7.34–E(d)(3) provides 

that an ETP Holder must disclose to 

non-ETP Holders that extended hours 

trading involves material trading risks, 

including the possibility of lower 

liquidity, high volatility, changing 

prices, unlinked markets, an 

exaggerated effect from news 

announcements, wider spreads and any 

other relevant risk. The absence of an 

updated underlying index value or 

intraday indicative value is an 

additional trading risk in extended 

hours for Derivative Securities Products. 

The disclosures required pursuant to 

Rule 7.34–E(d)(3) may take the form 

described in subparagraphs (1) through 

(7) thereunder or such other form as 

provides substantially similar 

information, including risks of lower 

liquidity; higher volatility; changing 

prices; unlinked markets; news 

announcements; wider spreads; and 

lack of calculation or dissemination of 

underlying index value or intraday 

indicative value. 

Finally, Rule 7.34–E(e) provides that 

trades on the Exchange executed and 

reported outside of the Core Trading 

Session are designated as .T trades. 

Proposed Rule Change 

As recently announced,9 the 

Exchange proposes to facilitate the 

trading of NMS securities on the 

Exchange beginning at 1:30 a.m. E.T. 

through 11:30 p.m. E.T. on Monday 

through Thursday, and 1:30 a.m. E.T. 

through 8:00 p.m. E.T. on Friday. The 

Exchange would retain the current 

structure of the Early and Late Trading 

Sessions, including eligible order types 

and required disclosures as described 

above, while extending the beginning of 

the Early Trading Session and end time 

of the Late Trading Session and 

accepting orders earlier than currently. 

To effectuate these changes, 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 

three exceptions. 

First, the beginning and ending times 

of the Early and Late Trading Sessions, 

respectively, as set forth in Rule 7.34– 

E(a)(1) and (3) would be changed to 

reflect the proposed longer extended 

trading hours. The Exchange proposes 

to end the Late Trading Session at 8:00 

p.m. E.T. on Friday in order to 

maximize the available time to make 

changes at the end of the week before 

weekend testing. 

Second, the Exchange would shorten 

the time it will begin accepting orders 

before commencement of the Early 

Trading Session as set forth in proposed 

Rule 7.34–E(a)(1) from 90 minutes to 30 

minutes such that orders would be 

accepted beginning at 1:00 a.m. E.T. The 

Exchange does not propose to change 

the time when the Core Trading Session 

would begin or end or make any other 

rule changes impacting the Core Trading 

Session. 

Third, the Exchange proposes to 

supplement its current customer 

disclosures set forth in proposed Rule 

7.34–E(d)(3) to add six additional 

potential risks associated with Extended 

Hours Trading based on the recently 

approved rules of 24X National 

Exchange LLC,10 as follows: 

• Proposed Rule 7.34–E(d)(viii) 

would address the potential risks of 

trading during when financial market 

infrastructure companies such as other 

markets, banks, Fedwire Funds Service, 

and certain other providers of 

settlement services, would be closed. 

The proposed rule would advise that 

during hours in which these financial 

market infrastructure companies are 

closed may lead to an increased passage 

of time between execution and final 

settlement of the resulting transaction. 

Proposed Rule 7.34–E(d)(viii) is based 

on and substantially the same as 24X 

Rule 3.21(g). 

• Proposed Rule 7.34–E(d)(ix) would 

address the potential risks of trading 

during hours in which primary listing 

markets may not be open. As proposed, 

proposed [sic] Rule 7.34–E(d)(ix) would 

provide that during Extended Hours 

Trading, the primary listing exchanges 

for securities traded on the Exchange 

may not be open and, thus, trading in 

listed securities may not be occurring on 

the primary listing exchanges. The 

proposed rule would also advise 

customers that the primary listing 

exchanges may not be available to 

perform their regulatory surveillance 

and other regulatory obligations with 

regard to their listed securities during 

Extended Hours Trading. Proposed Rule 

7.34–E(d)(ix) is based on and 

substantially the same as 24X Rule 

3.21(i)(1). 

• Proposed Rule 7.34–E(d)(x) would 

address the potential risks of trading 

during hours in which there may be 

limited or different regulatory 

protections. As proposed, the rule 

would advise that the regulatory 

protections available during Extended 

Hours Trading may be more limited or 

different than those available during the 

Core Trading Session. For example, the 

proposed rule would note that certain 

mechanisms that address volatility in 

individual symbols and the equities 

market may not be available during 

Extended Hours Trading. Proposed Rule 

7.34–E(d)(x) is based on and 

substantially the same as 24X Rule 

3.21(i)(2). 

• Proposed Rule 7.34–E(d)(xi) would 

address the potential risk of trading 

because of limited trading alternatives. 

As proposed, the rule would advise that 

Exchange may be the only exchange 

trading certain securities during 

Extended Hours Trading and that, with 

more limited trading alternatives during 

Extended Hours Trading, customers 

may experience losses if their orders 

cannot be executed normally due to 

systems failures or other issues on the 

Exchange. Proposed Rule 7.34–E(d)(xi) 

is based on and substantially the same 

as 24X Rule 3.21(i)(3). 

• Proposed Rule 7.34–E(d)(xii) would 

address the potential risk related to 

continuous trading during Extended 

Hours Trading. As proposed, the rule 

would advise that, with more limited 

breaks in trading, there may be a greater 


ddrumheller on DSK120RN23PROD with NOTICES1
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11See Release No. 101777, 89 FR at 97105. 

risk related to system maintenance and 

testing, as well as the pausing and 

resumption of trading. Proposed Rule 

7.34–E(d)(xii) is based on and 

substantially the same as 24X Rule 

3.21(i)(4). 

• Finally, proposed Rule 7.34– 

E(d)(xiii) would advise that Extended 

Hours Trading may present additional 

unforeseen risks in addition to those 

discussed above. Proposed Rule 7.34– 

E(d)(xiii) is based on and substantially 

the same as 24X Rule 3.21(i)(5). 

The current version of Rule 7.34–E 

would remain operative until transition 

to the proposed new Extended Trading 

Hours set forth in Rule 7.34–E(T)(a) 

becomes operative. As proposed, the 

Exchange would not commence 

operation of Extended Hours Trading as 

set forth in Rule 7.34–E(T)(a) unless the 

Equity Data Plans (as proposed to be 

defined in Rule 1.1, discussed below) 

have established a mechanism to 

collect, consolidate, process and 

disseminate quotation and transaction 

information at all times during 

Extended Trading Hours that is 

equivalent to the mechanism 

established for the Core Trading 

Session, and (2) have provided the 

Exchange with notification that they are 

prepared to collect, consolidate, process 

and disseminate quotation and 

transaction information to accommodate 

Extended Trading Hours. Specifically, 

prior to commencing operation during 

Extended Hours Trading as set forth in 

Rule 7.34–E(T)(a), the Exchange will file 

a proposed rule change pursuant to 

Section 19(b) of the Act and the rules 

thereunder to amend its rules to delete 

the current version of Rule 7.34–E and 

preamble and delete the ‘‘T’’ 

designation in Rule 7.34–E(T), and 

confirm that the Exchange is able to 

comply with its obligations under the 

Act and the rules thereunder during 

Extended Trading Hours and that such 

Equity Data Plans are prepared to 

collect, consolidate, process and 

disseminate quotation and transaction 

information at all times during 

Extended Trading Hours. The Exchange 

believes that these limitations are 

designed to reasonably ensure that 

consolidated quotation and transaction 

data are provided in a manner that is 

consistent with the existing extended 

hours sessions on exchanges.11

The Exchange would accordingly add 

the following legend to current Rule 

7.34–E (new text italicized): 

This version of Rule 7.34–E will remain 

operative until Extended Hours Trading as 

set forth in Rule 7.34–E(T) is operative. For 

the avoidance of doubt, notwithstanding 

anything to the contrary in these Rules, the 

Exchange shall not commence operation of 

Extended Hours Trading as set forth in Rule 

7.34–E(T) unless the Equity Data Plans (1) 

have established a mechanism to collect, 

consolidate, process and disseminate 

quotation and transaction information at all 

times during Extended Trading Hours that is 

equivalent to the mechanism established for 

the Core Trading Session, and (2) have 

provided the Exchange with notification that 

they are prepared to collect, consolidate, 

process and disseminate quotation and 

transaction information to accommodate 

Extended Trading Hours. Prior to 

commencing operation during Extended 

Hours Trading as set forth in Rule 7.34–E(T), 

the Exchange will file a proposed rule change 

pursuant to Section 19(b) of the Exchange 

Act and the rules thereunder to amend its 

rules to delete the current version of Rule 

7.34–E and preamble and delete the ‘‘T’’ 

designation in Rule 7.34–E(T), and confirm 

that the Exchange is able to comply with its 

obligations under the Exchange Act and the 

rules thereunder during Extended Trading 

Hours and that such Equity Data Plans are 

prepared to collect, consolidate, process and 

disseminate quotation and transaction 

information at all times during Extended 

Trading Hours. The rule change must be filed 

with the SEC within 18 months of the SEC’s 

approval of the Exchange’s rule filing 

adopting Rule 7.34–E(T). If the Exchange fails 

to file such a rule change within 18 months 

of approval of Rule 7.34–E(T), the Exchange 

will promptly file a proposed rule change to 

delete Rule 7.34–E(T). 

The proposed language is 

substantially the same as text contained 

in 24X Rule 1.5(c) (Definitions). The 

Exchange would also revise current 

Rule 1.1 to add two definitions. 

First, the Exchange would define 

‘‘Equity Data Plans’’ to mean the 

effective national market system plan(s) 

governing the collection, consolidation, 

processing and dissemination of 

consolidated equity market data via the 

exclusive securities information 

processors (‘‘SIPs’’), including (1) 

Consolidated Tape Association Plan 

(‘‘CTA Plan’’), (2) Consolidated 

Quotation Plan (‘‘CQ Plan’’), (3) the 

Joint Self-Regulatory Organization Plan 

Governing the Collection, Consolidation 

and Dissemination of Quotation and 

Transaction Information for NasdaqListed Securities Traded on Exchanges 

on an Unlisted Trading Privileges Basis 

(‘‘UTP Plan’’), (4) the CT Plan 

established by the Limited Liability 

Company Agreement of CT Plan LLC, 

and (5) any successor thereto to the 

named Plan(s). Except for the reference 

to the CT Plan established by the 

Limited Liability Company Agreement 

of CT Plan LLC, the proposed definition 

is the same as 24X Rule 1.5(o). 

Second, the Exchange would define 

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 as follows. 

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. 

The Exchange believes that the 

proposal will benefit investors and the 

national market system by increasing 

market accessibility, promoting capital 

formation, and facilitating portfolio 

management. The proposed extended 

trading sessions would operate in the 

same fashion as the current sessions, 

and the rules that apply to the current 

sessions would apply to the proposed 

longer Early and Late Trading Sessions 

in unmodified form. In addition, all 

NMS stocks would continue to be 

eligible to trade in the proposed longer 

extended hours sessions. Moreover, as 

discussed below, the existing safeguards 

applicable to pre-market and postmarket sessions including, among other 

things, operational safeguards, 

availability of consolidated last sale and 

quotation information, and specific 

disclosures to investors regarding the 

heightened risks of after-hours trading, 

and market surveillance capabilities, 

would be applicable to the proposed 

extended Early and Late Trading 

Sessions. 

Operations 

As noted, the proposed longer trading 

sessions will operate in the same way as 

the current sessions from an operational 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 106713 

12See Release No. 101777, 89 FR at 97109. 

13See text accompanying note 10, supra. 

14 15 U.S.C. 78f(b)(5). 

perspective. All order types eligible for 

such sessions and order type behaviors 

will remain unchanged. The Exchange 

will also route to away markets between 

1:30 a.m. E.T. through 11:30 p.m. E.T. 

on Monday through Thursday, and 1:30 

a.m. E.T. through 8:00 p.m. E.T. on 

Friday, just as it currently does between 

4:00 a.m. E.T. and 9:30 a.m. E.T. and 

between 4:00 p.m. E.T. and 8:00 p.m. 

E.T. Order processing during the 

proposed longer trading sessions will 

also function the same way as it does in 

the current sessions. There will be no 

changes to the ranking, display, or 

decrementation processes or rules. The 

Exchange will report the best bid and 

offer on the Exchange to the appropriate 

network processor, as it currently does 

beginning at 4:00 a.m. E.T. using the 

same formats and delivery mechanisms. 

Trades executed and reported outside of 

the Core Trading Session as proposed 

will be reported to the appropriate 

network processor with the ‘‘.T’’ 

modifier, just as currently. No fee 

changes are proposed in connection 

with this proposal. 

In addition, the Exchange will 

continue to work with primary listing 

exchanges to coordinate trading halts 

where appropriate, including halts 

implemented due to significant material 

events (i.e., a bankruptcy declaration). 

During the proposed extended Early and 

Late Trading Sessions, the Exchange 

would pause trading in the underlying 

security until trading resumes on the 

primary listing market for the security. 

Generally, regardless of trading session, 

when a halt has been declared on the 

primary market, the Exchange will also 

halt trading automatically in the subject 

security on NYSE Arca. Exchange staff 

will be available during the proposed 

extended trading sessions in order to 

maintain a fair and orderly market, 

make any necessary rulings or take any 

action that may be necessary. Similarly, 

Exchange staff will be available if any 

action such as declaration of a halt in a 

NYSE Arca primary symbol would be 

necessary in the event of a system 

malfunction or significant material 

event such as a bankruptcy declaration. 

The Exchange notes that, to the extent 

material corporate news is released 

during the Extended Trading Hours and 

the primary listing market does not 

impose a halt, the requirements of 

proposed Rule 7.34–E(T)(d)(3)(v) (which 

is part of the current rule) and proposed 

Rules 7.34–E(T)(d)(3)(viii)–(xiii) that 

disclosures be provided to investors 

relating to the risks associated with 

news announcements and the additional 

risks of trading during Extended 

Trading Hours, respectively, will help 

ensure that market participants, 

including investors, are informed about 

the potential risks associated with 

trading during that time period.12

Securities Information Processor (‘‘SIP’’) 

Readiness 

The Exchange will submit all quotes 

and trades that are generated in the 

extended Early and Late Trading 

Session to the consolidated quote and 

trade systems maintained by the SIPs for 

public dissemination. Accordingly, once 

these extended trading hours are 

operative, quotes and trades will be 

made available to the investing public 

in the same manner that quotes and 

trades are currently made available. 

The two SIPs—the Securities Industry 

Automation Corporation (‘‘SIAC’’) and 

Nasdaq—both currently operate from 

4:00 a.m. E.T. through 8:00 p.m. E.T. 

The Exchange has informed both SIPs, 

as well as the Operating Committee of 

the CTA and the CQ Plans and the UTP 

Plan (collectively, the ‘‘Operating 

Committee’’), of its intention to extend 

trading hours to commence at 1:30 a.m. 

E.T. through 11:30 p.m. E.T. on Monday 

through Thursday, and 1:30 a.m. E.T. 

through 8:00 p.m. E.T. on Friday, and 

has submitted change requests to both 

SIPs requesting that the SIPs similarly 

extend their hours of operation. The 

Exchange will work with the Operating 

Committee and the SIPs regarding the 

extension of the SIPs’ operating hours 

and, in the near term, expects to request 

a vote of the Operating Committee 

instructing the SIPs to proceed with 

such extension. 

As noted above, the Exchange will not 

make the proposed extended hours 

operative unless the Equity Data Plans 

have established a mechanism to 

collect, consolidate, process and 

disseminate quotation and transaction 

information at all times during 

Extended Trading Hours that is 

equivalent to the mechanism 

established for the Core Trading 

Session, and provided the Exchange 

with notification that they are prepared 

to collect, consolidate, process and 

disseminate quotation and transaction 

information to accommodate Extended 

Trading Hours. As also previously 

noted, at that point the Exchange will 

file a proposed rule change to, among 

other things, confirm that such Equity 

Data Plans are prepared to collect, 

consolidate, process and disseminate 

quotation and transaction information at 

all times during Extended Trading 

Hours. 

Market Surveillance 

Trading on the Exchange is subject to 

a comprehensive regulatory program 

applicable to the current Early, Core, 

and Late Trading Sessions that includes 

a suite of surveillances that reviews 

trading during each trading session as 

well as routine examinations of ETP 

Holders consistent with the current 

exam-based regulatory program. The 

Exchange’s current regulatory program 

would be fully applicable to trading in 

the proposed extended Early and Late 

Trading Sessions. 

Customer Disclosures 

As noted above, given the potential 

trading and other risks of extended 

hours trading Products, Rule 7.34–E(d) 

prohibits ETP Holders from accepting 

orders from non-ETP Holders for 

execution during the Early or Late 

Trading Session without making the 

specified disclosures in the Rule. As 

further discussed above, the Exchange 

proposes to enhance these disclosures 

by including additional mandatory 

disclosures regarding the potential risks 

associated with trading during Extended 

Hours Trading based on recently 

approved 24X Rule 3.21.13 The 

Exchange notes that Rule 7.34–E(d), as 

amended, would be fully applicable to 

the proposed extended trading sessions 

and would place the same disclosure 

obligation on ETP Holders. 

Implementation 

The Exchange will begin accepting 

orders for the extended Early and Late 

Trading Session as set forth in proposed 

Rule 7.34–E(T) subject to the 

effectiveness of this proposed rule 

change and subject to the conditions set 

forth in the proposed legend to current 

Rule 7.34–E described above. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b)(5) of the Act,14 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 


ddrumheller on DSK120RN23PROD with NOTICES1
106714 Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 

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

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 lengthening of the current extended 

trading hours for NMS stocks to 1:30 

a.m. E.T. through 11:30 p.m. E.T. on 

Monday through Thursday, and 1:30 

a.m. E.T. through 8:00 p.m. E.T. on 

Friday, which the Exchange believes 

will increase market accessibility, 

promote capital formation, and facilitate 

portfolio management. 

The Exchange further believes that 

adopting a temporary rule that would 

only be operative upon transition to the 

new proposed Extended Trading Hours, 

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. Moreover, the 

proposed legend would provide that the 

Exchange will not commence operation 

of the longer Extended Trading Hours 

prior to filing a proposed rule change to 

amend its rules confirming that the 

Exchange is able to comply with its 

obligations under the Act during the 

longer extended trading session and that 

the Equity Data Plans are prepared to 

collect, consolidate, process and 

disseminate quotation and transaction 

information at all times during the 

proposed Extended Trading Hours. This 

requirement would promote 

transparency because trading will not 

occur unless the Equity Data Plans are 

able to collect, consolidate, process and 

disseminate consolidated quotation and 

transaction data during the proposed 

longer session. The requirement would 

also be designed to ensure that 

consolidated quotation and transaction 

data are provided in a manner that is 

consistent with the Exchange’s current 

extended hours sessions, and that the 

proposed change is thus designed to 

prevent fraudulent and manipulative 

acts and practices, promote just and 

equitable principles of trade, foster 

cooperation and coordination with 

persons engaged in regulating, clearing, 

settling, processing information with 

respect to and facilitating transactions 

in NMS stocks, and perfect the 

mechanism of a free and open market 

and a national market system. 

Finally, the Exchange believes that 

applying the current requirements for 

extended hours trading such as order 

designation, permitted orders, and 

mandatory customer disclosures as well 

as the operational and regulatory 

safeguards already in place for the 

current Early, Core, and Late Sessions to 

the proposed extended sessions, would 

promote just and equitable principles of 

trade and protect investors and the 

public interest. In addition, the 

proposed enhanced disclosures based 

on the approved rules of another 

exchange will, together with the existing 

disclosures, provide investors with 

important information that should help 

to inform their decisions as to whether 

trading during the Exchange’s proposed 

longer extended hours is suitable for 

them. The Exchange believes that the 

expanded customer disclosures are 

consistent with the Act and, in 

particular, the Section 6(b)(5) 15

requirement that an exchange’s rules be 

designed to promote just and equitable 

principles of trade, remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system, and 

protect investors and the public interest. 

The Exchange believes that adding a 

definition of Equity Data Plan 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 and transparency to 

the Exchange’s rules with respect to the 

a [sic] critical element that must be in 

place for the proposed longer extended 

trading session. As discussed above, 

trading in the new extended session will 

not occur unless the Equity Data Plans 

are able to collect, consolidate, process 

and disseminate consolidated quotation 

and transaction data during the new 

session. Similarly, 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 lengthen the current 

extended trading hours for NMS stocks 

to 1:30 a.m. E.T. through 11:30 p.m. E.T. 

on Monday through Thursday, and 1:30 

a.m. E.T. through 8:00 p.m. E.T. on 

Friday. 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. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as modified by Amendment No. 

1, is consistent with the Act. Comments 

may be submitted by any of the 

following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

NYSEARCA–2024–89 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 (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 106715 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 See Securities Exchange Act Release No. 96282 

(November 9,2022), 87 FR 68788 (November 16, 

2022) (Notice of Filing and Immediate Effectiveness 

of File No. SR–NASDAQ–2022–059) (temporary 

amendments expiring on January 31, 2023). 

4 See Securities Exchange Act Release No. 90390 

(November 10, 2020), 85 FR 73302 (November 17, 

2020) (Notice of Filing and Immediate Effectiveness 

of File No. SR–NASDAQ–2020–076). 

5 See Securities Exchange Act Release No. 90774 

(December 22, 2020), 85 FR 86614 (December 30, 

2020) (Notice of Filing and Immediate Effectiveness 

of File No. SR–NASDAQ–2020–092); Securities 

Exchange Act Release No. 91763 (May 4, 2021), 86 

FR 25055 (May 10, 2021) (Notice of Filing and 

Immediate Effectiveness of File No. SR–NASDAQ– 

2021–033); Securities Exchange Act Release No. 

92911 (September 9, 2021), 86 FR 51395 (September 

15, 2021) (Notice of Filing and Immediate 

Effectiveness of File No. SR–NASDAQ–2021–067); 

Securities Exchange Act Release No. 93852 

(December 22, 2021), 86 FR 74201 (December 29, 

2021) (Notice of Filing and Immediate Effectiveness 

of File No. SR–NASDAQ–2021–104); Securities 

Exchange Act Release No. 94610 (April 5, 2022), 87 

FR 21225 (April 11, 2022) (Notice of Filing and 

Immediate Effectiveness of File No. SR–NASDAQ– 

2022–028); Securities Exchange Act Release No. 

95436 (August 5, 2022), 87 FR 49624 (August 11, 

2022) (Notice of Filing and Immediate Effectiveness 

of File No. SR–NASDAQ–2022–044); Securities 

Exchange Act Release No. 96282 (November 

9,2022), 87 FR 68788 (November 16, 2022) (Notice 

of Filing and Immediate Effectiveness of File No. 

SR–NASDAQ–2022–059). 

6 See Securities Exchange Act Release No. 97403 

(April 28, 2023), 88 FR 28645 (May 4, 2023) (SR– 

FINRA–2023–008). 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–NYSEARCA–2024–89 and should be 

submitted on or before January 21, 2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–30903 Filed 12–27–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–102006; File No. SR– 

NASDAQ–2024–085] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Exchange Rules 1015, 9261, 9341, 9524 

and 9830 To Permit Hearings by Video 

Conference 

December 19, 2024. 

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 December 

19, 2024, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule 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 

Exchange Rules 1015, 9261, 9341, 9524 

and 9830 to allow for video conference 

hearings before the Office of Hearing 

Officers (‘‘OHO’’) and the Exchange 

Review Council (‘‘ERC’’) under 

specified conditions. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to harmonize 

Exchange Rules 1015, 9261, 9341, 9524 

and 9830 with changes by the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) to its Rules 1015, 9261, 9341, 

9524 and 9830 that would allow for the 

use of video conference for reasons in 

addition to COVID–19. The proposal 

also deletes expired references to 

temporary amendments.3 The Exchange 

originally filed proposed rule change 

SR–NASDAQ–2020–076, which allowed 

the Exchange’s Office of Hearing 

Officers (‘‘OHO’’) and the Exchange 

Review Council (‘‘ERC’’) to conduct 

hearings, on a temporary basis, by video 

conference, if warranted by the COVID– 

19-related public health risks posed by 

an in-person hearing.4 These were 

extended several times due to the 

continuing public health risks and 

logistical challenges related to COVID– 

19, including whether hearing 

participants could safely travel and 

abide by state or local quarantine 

requirements.5 The use of high quality, 

secure and user-friendly video 

conference technology in hearings has 

demonstrated that video is an effective 

and efficient alternative to in-person 

hearings.6

The Exchange is proposing to make 

the temporary amendments regarding 

video conference hearings permanent, 

with some modifications that would 

allow for the use of video conference for 

reasons in addition to COVID–19. The 

proposed rule change will continue to 

improve and modernize the Exchange’s 

operations so that parties, panelists, and 

the Exchange staff may proceed 

expeditiously by video conference in 

the event of certain circumstances, 

including where unforeseen events 

make appearing in person difficult or 

impracticable. As described below, 

impracticability is intended to account 

for an uncommon situation or 

extraordinary circumstance. The 

proposed rule change further promotes 

efficiency by giving OHO and the ERC 

authority to act quickly if a future 

unexpected event impaired their ability 

to conduct in-person hearings safely. 

OHO conducts hearings in 

disciplinary proceedings and hearings 

for temporary and permanent cease and 

desist orders. When orders in 

disciplinary proceedings are appealed, 

the ERC holds hearings on oral 

argument. The ERC also conducts 

hearings in membership proceedings 

and eligibility proceedings. Under the 

proposed rule change, OHO and the 

ERC’s authority to order hearings by 


ddrumheller on DSK120RN23PROD with NOTICES1