Document ID: SEC-2019-1753-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE American LLC
Posted Date: 2019-11-21T05:00Z

[Federal Register Volume 84, Number 225 (Thursday, November 21, 2019)]
[Notices]
[Pages 64359-64363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25207]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87550; File No. SR-NYSEAMER-2019-48]

Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Exchange Rules 1.1E and 7.29E To Eliminate the Delay Mechanism and 
Amend Exchange Rule 7.31E and Related Exchange Rules To Re-Introduce 
Previously-Approved Order Types and Modifiers

November 15, 2019.
    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 4, 2019, NYSE American LLC (``NYSE American'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rules 1.1E and 7.29E to eliminate 
the Delay Mechanism and amend Rule 7.31E and related rules to re-
introduce previously-approved order types and modifiers. 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to decommission its Delay Mechanism and re-
introduce orders and modifiers that were eliminated in connection with 
launching the Delay Mechanism. To effect these changes, the Exchange 
proposes to amend Rules 1.1E and 7.29E to eliminate the Delay Mechanism 
and amend Rule 7.31E and related rules to re-introduce previously-
approved order types and modifiers.
Background
    In 2017, the Exchange transitioned to trading on the Pillar trading 
platform. In advance of that transition, the Exchange amended its rules 
to transition from a Floor-based point-of-sale trading model to a fully 
automated price-time priority allocation model.\4\ In the Pillar 
Filing, the Exchange added Rule 7.31E, which describes the order types 
and modifiers that would be available on the Exchange once it 
transitioned to Pillar, and which was based on NYSE Arca, Inc. (``NYSE 
Arca'') Rule 7.31-E. Among the orders and modifiers that were approved 
in the Pillar Filing were ALO Orders, Intermarket Sweep Orders 
designated Day (``Day ISO''), Non-Display Remove Modifiers, and MPL-ALO 
Orders.\5\
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    \4\ See Securities Exchange Act Release Nos. 79993 (February 9, 
2017), 82 FR 10814 (February 15, 2017) (SR-NYSEMKT-2017-01) 
(``Pillar Filing'') and 80590 (May 4, 2017), 82 FR 21843 (May 10, 
2017) (SR-NYSEMKT-2017-01) (Approval Order). The Exchange separately 
filed to establish the rules governing market makers on the 
Exchange. See Securities Exchange Act Release No. 80577 (May 2, 
2017), 82 FR 21446 (May 8, 2017) (SR-NYSEMKT-2017-04) (Approval 
Order).
    \5\ See Pillar Filing, id. (Rules 7.31E(e)(2), 7.31E(e)(3)(D), 
7.31E(e)(2)(B)(iv)(b), 7.31E(3)(F), 7.31E(d)(3)(G)).
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    In connection with the transition to the Pillar trading platform, 
the Exchange introduced the Delay Mechanism, which was approved in a 
separate proposed rule change.\6\ Rule 1.1E(y) defines the Delay 
Mechanism to mean a delay that is 350 microseconds of latency that is 
added to specified order processing. That rule further provides that 
due to force majeure events and acts of third parties, the Exchange 
does not guarantee that the delay will always be 350 microseconds. 
Finally, that Rule provides that the Exchange will periodically monitor 
such latency, and will make adjustments to the latency as reasonably 
necessary to achieve consistency with the 350 microsecond target as 
soon as commercially practicable and that if the Exchange determines to 
increase or decrease the delay period, it will submit a rule filing 
pursuant to Section 19 of the Act.
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    \6\ See Securities Exchange Act Release No. 79998 (February 9, 
2017), 82 FR 10828 (February 15, 2017) (SR-NYSEMKT-2017-05) (``Delay 
Mechanism Filing'') and 80700 (May 16, 2017), 82 FR 23381 (May 22, 
2017) (SR-NYSEMKT-2017-05) (Approval Order).
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    Rule 7.29E(b)(1) provides that the Exchange will apply the Delay 
Mechanism to:
    (A) All inbound communications from an ETP Holder to the NYSE 
American Marketplace;
    (B) all outbound communications to an ETP Holder from the NYSE 
American Marketplace;
    (C) all outbound communications the NYSE American Marketplace 
routes to an Away Market;
    (D) all inbound communications from an Away Market about a routed 
order; and
    (E) all outbound communications (e.g., bids, offers, and trades) to 
the Exchange's proprietary data feeds.
    Rule 7.29E(b)(2) provides that the Exchange will not apply the 
Delay Mechanism to:
    (A) All inbound communications from data feeds;
    (B) order processing and order execution on the Exchange's Book; 
and
    (C) all outbound communications (e.g., bids, offers, and trades) to 
the single plan processors under Rules 601 and 602 of Regulation NMS.
    In the Delay Mechanism Filing, the Exchange noted that in 
conjunction with implementing the Delay Mechanism, the Exchange would 
no longer offer ALO Orders or Day ISO functionality.\7\ Accordingly, 
before transitioning to Pillar, the Exchange filed a separate proposed 
rule change to eliminate ALO Orders and Day ISOs and related 
functionality.\8\ To effect the

[[Page 64360]]

elimination of ALO Orders, the Exchange made the following changes to 
the rules that were approved in the Pillar Filing:
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    \7\ See Delay Mechanism Filing, supra note 6.
    \8\ See Securities Exchange Act Release No. 81115 (July 11, 
2017), 82 FR 32745 (July 17, 2017) (SR-NYSEMKT-2017-38) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change).
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     Deleted Rule 7.31E(e)(2) and its subparagraphs, which 
described ALO Orders, and replaced that section of the Rule with the 
term ``Reserved.''
     Deleted Rule 7.31E(d)(2)(B), which provided that Limit 
Non-Display Orders may be designated with a Non-Display Remove 
Modifier.
     Deleted the last sentence of Rule 7.31E(d)(3)(E) and Rules 
7.31E(d)(3)(F) and (G), which described MPL-ALO Orders and related Non-
Display Remove Modifier functionality.
     Deleted Rule 7.31E(e)(1)(C), which provided that an MKT 
Only Order may be designated with a Non-Display Remove Modifier.
     Amended Rule 7.31E(j)(1) to delete the reference to ``ALO 
Order.''
     Amended Rules 7.46E(f)(5)(F)(ii) and (iii) to delete 
references to ALO Orders.
    To effect the changes described in the Delay Mechanism Filing to 
eliminate Day ISO Orders, the Exchange made the following changes to 
the rules that were approved in the Pillar Filing:
     Deleted Rules 7.31E(e)(3)(C) and (D), which described Day 
ISO and Day ISO ALO Orders. The Exchange also amended Rule 7.31E(e)(3) 
to provide that an ISO must be designated IOC and deleted the specific 
reference to ``IOC ISO'' in Rule 7.31E(e)(3)(B).
     Amended Rules 7.11E(a)(5)(A) and 7.11E(a)(5)(A)(ii) to 
delete references to ``Day ISO'' and make related conforming changes.
     Amended Rule 7.31E(a)(2)(C) to delete the last two 
sentences, which described how Limit Orders are repriced upon arrival 
of a Day ISO.
     Amended Rule 7.35E(h)(3)(C) to delete the last sentence, 
which described how Day ISOs are processed when transitioning to 
continuous trading.
     Deleted current Rule 7.46E(f)(5)(F)(i)(a), which relates 
to Day ISO Orders, and the designation of subparagraph (b). The text of 
then-approved Rule 7.46E(f)(5)(F)(i)(b) became the last sentence of 
7.46E(f)(5)(F)(i).
Proposed Amendments
    In the Delay Mechanism Filing, the Exchange noted that the Delay 
Mechanism was designed to provide a competitive trading model to those 
ETP Holders and issuers that prefer to trade or list on an exchange 
that offers an intentional, symmetrical delay.
    The Exchange has now been operating with the Delay Mechanism for 
over two years. However, we have not had any issuers interested in 
listing because of the Delay Mechanism. Additionally, market 
participants have not increased their trading volume on the Exchange as 
a result of adding the Delay Mechanism. For example, since introducing 
the Delay Mechanism, market share on the Exchange has not materially 
changed, and some market quality measures have declined. Specifically, 
when comparing monthly statistics for Exchange-listed securities for 
the first six months of trading on the Exchange in 2017 (pre-Delay 
Mechanism) with trading on the Exchange for the period July 2017 
through September 2019 (post-Delay Mechanism), the Exchange has 
observed the following changes in market performance.

------------------------------------------------------------------------
                                             Pre-delay      Post-delay
                                             mechanism       mechanism
------------------------------------------------------------------------
NYSE American's Average Quoted Spread              208.2           292.4
 (bps)..................................
NYSE American's Average Quoted Shares at           2,762           1,197
 the BBO................................
NYSE American's Average Quoted Notional          $13,342          $9,549
 at the BBO.............................
NYSE American's % of trading day quoting           71.3%           68.4%
 at the NBBO............................
NYSE American's Market Share............           12.1%           11.5%
Consolidated Average Daily Volume.......     123,906,053     113,831,729
------------------------------------------------------------------------

    The Exchange believes that if market participants were interested 
in trading on an exchange with an intentional, symmetrical delay, more 
order flow would have been directed to the Exchange. But it simply has 
not.
    The Exchange therefore proposes to eliminate the Delay Mechanism. 
To effect this change, the Exchange proposes to delete the definition 
of ``Delay Mechanism'' in Rule 1.1E(y) and delete Rule 7.29E(b), which 
are the rules that were added in the Delay Mechanism Filing to 
establish the Delay Mechanism.
    The Exchange also proposes to re-introduce previously-approved 
order types and modifiers that were deleted in anticipation of 
launching the Delay Mechanism, with specified differences described 
below. Specifically, the Exchange proposes to add back rules to support 
ALO and related functionality, as follows:
     Amend Rule 7.31E(e)(2) to delete the term ``Reserved'' and 
add back the rule text that describes ALO Orders, as approved in the 
Pillar Filing. The Exchange proposes a non-substantive difference from 
the version of the rule approved in the Pillar Filing to use the term 
``Non-Routable Limit Order'' instead of ``MKT-Only Order.''
     Amend Rule 7.31E(d)(2) to add back sub-paragraph (B), as 
approved in the Pillar Filing, which would provide that Non-Displayed 
Limit Orders may be designated with a Non-Display Remove Modifier. The 
Exchange proposes a non-substantive difference from the version of the 
rule approved in the Pillar Filing to use the term ``Non-Displayed 
Limit Order'' instead of ``Limit Non-Display Order.''
     Amend Rule 7.31E(d)(3) relating to MPL Orders to re-
introduce MPL-ALO Orders and the Non-Display Remove Modifier. Since the 
Pillar Filing, Rule 7.31E(d)(3) has been amended, which resulted in 
changes to sub-numbering.\9\ With respect to the Non-Display Remove 
Modifier, the Exchange proposes to re-introduce rule text previously 
approved in the Pillar Filing as Rule 7.31E(d)(3)(G) with a non-
substantive difference that it would be numbered Rule 7.31E(d)(3)(F). 
The Exchange also proposes to re-introduce a new last sentence to Rule 
7.31E(d)(3)(D), which was previously approved in the Pillar Filing as 
the last sentence of Rule 7.31E(d)(3)(E).
    With respect to MPL-ALO Orders, as noted in the Pillar Filing, at 
that time, Rule 7.31E(d)(3) was based on NYSE Arca Rule 7.31-E(d)(3) 
without any substantive differences. Since approval

[[Page 64361]]

of the Pillar Filing, NYSE Arca has amended Rule 7.31-E(d)(3) relating 
to MPL-ALO Orders.\10\ The Exchange proposes that when re-introducing 
MPL-ALO Orders on the Exchange, Rule 7.31E(d)(3) would be amended to 
add new sub-paragraph (E) to reflect the changes described in the Arca 
MPL Filing; the Exchange will not re-introduce the text that was 
approved in the Pillar Filing as Rule 7.31E(d)(3)(F).
    As proposed, Rule 7.31E(d)(3)(E) would provide that an MPL Order 
may be designated with an ALO Modifier, which would be defined as an 
MPL-ALO Order. The proposed rule would further provide that an MPL-ALO 
Order to buy (sell) will trade with resting orders to sell (buy) with a 
working price below (above) the midpoint of the PBBO at the working 
price of the resting orders, but will not trade with resting orders to 
sell (buy) priced at the midpoint of the PBBO unless such resting order 
is designated with a Non-Display Remove Modifier pursuant to Rule 
7.31E(d)(3)(F). Finally, the Rule would provide that if an MPL-ALO 
Order to buy (sell) cannot trade with a same-priced resting order to 
sell (buy), a subsequently arriving order to sell (buy) eligible to 
trade at the midpoint will trade ahead of a resting order to sell (buy) 
that is not displayed at that price. If such resting order to sell 
(buy) is displayed, the MPL-ALO Order to buy (sell) will not be 
eligible to trade at that price. As noted above, this proposed rule 
text is based on NYSE Arca Rule 7.31-E(d)(3)(E), NYSE National Rule 
7.31(d)(3)(E), and NYSE Chicago Rule 7.31(d)(3)(E) without any 
differences.
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    \9\ See Securities Exchange Act Release No. 85144 (September 21, 
2017), 82 FR 45099 (September 27, 2017) (SR-NYSEAmer-2017-17) 
(Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change) (``Pillar ALO/Day ISO Filing'').
    \10\ See Securities Exchange Act Release No. 82504 (January 16, 
2018), 83 FR 3038 (January 22, 2018) (SR-NYSEArca-2018-01) (Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change) 
(``Arca MPL Filing''). The rules of the Exchange's affiliates--New 
York Stock Exchange LLC (``NYSE''), NYSE National, Inc. (``NYSE 
National''), and most recently approved, NYSE Chicago, Inc. (``NYSE 
Chicago'')--that describe MPL-ALO Orders and related Non-Display 
Remove Modifier are similarly based on the NYSE Arca rule, as 
amended in the Arca MPL Filing. See NYSE Rule 7.31(d)(3)(E) (except 
does not include reference to a Non-Display Remove Modifier, which 
is not currently available on NYSE); NYSE National Rule 
7.31(d)(3)(E); and NYSE Chicago Rule 7.31(d)(3)(E).
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     Amend Rule 7.31E(e)(1) to add back sub-paragraph (C), as 
approved in the Pillar Filing, which would provide that a Non-Routable 
Limit Order may be designated with a Non-Display Remove Modifier. The 
Exchange proposes a non-substantive difference from the version of the 
rule approved in the Pillar Filing to use the term ``Non-Routable Limit 
Order'' instead of ``MKT-Only Order.''
     Amend Rule 7.31E(j)(1) to add back the reference to ``ALO 
Order,'' as approved in the Pillar Filing.
    The Exchange also proposes to add back rules to support Day ISO, as 
follows:
     Amend Rule 7.31E(e)(3) to add back subparagraphs (C) and 
(D), as approved in the Pillar Filing, which describe Day ISO and Day 
ISO ALO Orders. The Exchange proposes non-substantive differences from 
the version of the rule approved in the Pillar Filing to use the terms 
``Non-Routable Limit Order'' instead of ``MKT-Only Order'' and ``Non-
Displayed Limit Order'' instead of ``Limit Non-Displayed Order.''
     Amend Rule 7.31E(e)(3) to delete the requirement that an 
ISO must be designated IOC and amend Rule 7.31E(e)(3)(B) to add back 
the term ``IOC ISO,'' both of which were approved in the Pillar Filing.
     Amend Rules 7.11E(a)(5)(A) and 7.11E(a)(5)(A)(ii) to add 
back references to ``Day ISO'' and make related conforming changes, as 
approved in the Pillar Filing.
     Amend Rule 7.31E(a)(2)(C) to add back rule text describing 
when Limit Orders would be repriced under this provision. The Exchange 
proposes that the text that would be added to this Rule would be based 
on the rules of NYSE Arca, NYSE, NYSE National, and NYSE Chicago, which 
were amended/adopted after the Pillar Filing, without any 
differences.\11\ As proposed, the text that would be added to this rule 
would provide that if a Day ISO to buy (sell) arrives before the PBO 
(PBB) is updated, such re-priced Limit Order(s) to buy (sell) would be 
repriced to the lower (higher) of the display price of the Day ISO or 
the original price of the Limit Order(s).
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    \11\ See, e.g., Securities Exchange Act Release No. 85265 (March 
7, 2019), 84 FR 9175 (March 13, 2019) (SR-NYSEArca-2019-08). See 
also NYSE Rule 7.31(a)(2)(C), NYSE National Rule 7.31(a)(2)(C), and 
NYSE Chicago Rule 7.31(a)(2)(C).
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     Amend Rule 7.35E(h)(3) to add back the last sentence under 
subparagraph (C) of that Rule that was approved in the Pillar Filing, 
which describes how Day ISOs are processed when transitioning to 
continuous trading. The Exchange proposes a non-substantive difference 
to include this sentence under new subparagraph (D) to Rule 
7.35E(h)(3).\12\
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    \12\ See NYSE Arca Rule 7.35-E(h)(3)(D).
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    At this time, the Exchange does not propose to revert any of the 
other changes made in the Pillar ALO/Day ISO Filing. Specifically, the 
Exchange does not propose any changes to Pegged Orders and does not 
propose to amend Rule 7.46 relating to the Tick Size Pilot, which is no 
longer operative.
    With the elimination of the Delay Mechanism and re-introduction of 
ALO Orders, Day ISO, Non-Display Remove Modifiers, and MPL-ALOs, the 
Exchange will operate on a fully-automated price-time priority trading 
model that is substantially identical to the trading models of its 
affiliated exchanges NYSE Arca and NYSE National. The Exchange is not 
proposing to change its transaction fees for trading on the Exchange. 
The Exchange currently charges a flat fee for orders that provide or 
remove liquidity, provided that it does not charge for orders that 
provide displayed liquidity.\13\ This pricing model differs from the 
pricing model on NYSE Arca, which uses a maker-taker model, and NYSE 
National, which uses a taker-maker model.
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    \13\ See NYSE American Equities Fee Schedule, available here: 
https://www.nyse.com/publicdocs/nyse/markets/nyse-american/NYSE_America_Equities_Price_List.pdf.
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* * * * *
    Because of the technology changes associated with this proposed 
rule change, the Exchange will announce the implementation date of this 
proposed rule change by Trader Update. The Exchange anticipates that 
the implementation date will be in November 2019.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\14\ in general, and furthers the objectives of Section 
6(b)(5),\15\ 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.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that eliminating the Delay Mechanism by 
deleting Rules 1.1E(y) and 7.29E(b) would remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system because the reasons for establishing the Delay Mechanism no 
longer exist. Specifically, the Delay Mechanism was designed to provide 
a competitive trading model for those ETP Holders and issuers that 
prefer to trade or list on an exchange that offers such a delay.
    Following two years of operating an exchange with the Delay 
Mechanism, the Exchange believes market

[[Page 64362]]

participants are not interested in this trading model. The Exchange 
believes that if market participants were interested in trading on an 
exchange with an intentional, symmetrical delay, more order flow would 
have been directed to the Exchange. But it simply has not. Accordingly, 
the Exchange believes that decommissioning the Delay Mechanism would be 
consistent with the protection of investors and the public interest, as 
they have not chosen to use this trading model.
    In addition, comparison of numerous market quality metrics for 
Exchange-listed securities between the Pre-Delay Mechanism and Post-
Delay Mechanism periods indicate that the Delay Mechanism resulted in a 
degradation of the Exchange's displayed liquidity. Eliminating the 
Delay Mechanism is expected to reverse this trend.
    The Exchange believes that the proposed re-introduction of ALO 
Orders, Day ISO, Non-Display Remove Modifiers, and MPL-ALO Orders would 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system because the Exchange is proposing 
rules that either have already been approved in the Pillar Filing, or 
are based on the rules of NYSE Arca, NYSE, NYSE National, and NYSE 
Chicago. Accordingly, the Exchange is not proposing new or novel order 
types, but rather, will make available on the Exchange order types and 
modifiers that are already available on affiliated exchanges.

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 Exchange anticipated 
that the Delay Mechanism would provide a competitive trading model for 
those ETP Holders and issuers that prefer to trade or list on an 
exchange that offers an intentional, symmetrical delay. Following two 
years of operating an exchange with the Delay Mechanism, the Exchange 
believes that market participants are not interested in this trading 
model. Accordingly, the Exchange does not believe that eliminating the 
Delay Mechanism would impose any burden on competition.
    The Exchange further believes that re-introducing ALO Orders, Day 
ISO, Non-Display Remove Modifiers, and MPL-ALO Orders would promote 
competition by offering ETP Holders greater choice among the Exchange 
and its affiliated exchanges that offer similar trading functionality. 
With the decommissioning of the Delay Mechanism and re-introduction of 
order types and modifiers, the Exchange does not propose to change its 
transaction fee model, and therefore would be differentiated from NYSE 
Arca and NYSE National because it charges a flat fee for all orders, 
regardless of whether an order provides or removes liquidity (except 
for orders that provide displayed liquidity, which are not charged at 
all). Accordingly, the Exchange believes that the proposed rule change 
would promote competition by providing greater optionality to ETP 
Holders that are interested in using the re-introduced order types on 
an exchange that offers a flat-fee pricing model.

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) of the Act \16\ and Rule 19b-4(f)(6) thereunder.\17\ 
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.\18\
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ In addition, Rule 19b-4(f)(6) requires the Exchange to give 
the Commission written notice of the Exchange's 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.
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    A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\20\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Exchange has 
represented that the existing delay mechanism has not attracted new 
issuers or additional trading volume to the Exchange, and that re-
introducing previously approved order types would allow the Exchange to 
have similar trading functionality with other exchanges. The Commission 
believes that waiver of the 30-day operative delay period is consistent 
with the protection of investors and the public interest and hereby 
waives the 30-day operative delay and designates the proposed rule 
change operative upon filing.\21\
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    \19\ 17 CFR 240.19b-4(f)(6).
    \20\ 17 CFR 240.19b-4(f)(6)(iii).
    \21\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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) \22\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \22\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSEAMER-2019-48 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-2019-48. This 
file number should be included on the subject line if email is used. To 
help the

[[Page 64363]]

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-NYSEAMER-2019-48 and should be submitted 
on or before December 12, 2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-25207 Filed 11-20-19; 8:45 am]
 BILLING CODE 8011-01-P