Document ID: SEC-2023-0650-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange, LLC
Posted Date: 2023-06-21T04:00Z

[Federal Register Volume 88, Number 118 (Wednesday, June 21, 2023)]
[Notices]
[Pages 40364-40366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13107]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97725; File No. SR-NYSE-2023-22]

Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Rule 308

June 14, 2023.
    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 June 5, 2023, New York Stock Exchange LLC (``NYSE'' or the 
``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 Rule 308 to correct an obsolete 
reference. 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.

[[Page 40365]]

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 proposes to amend Rule 308 (Acceptability 
Proceedings) to correct an obsolete reference.
    In March 2023, the Exchange amended Rule 308 to reflect the 
consolidation of the Acceptability Board with the Hearing Board as 
defined in Rule 9232(b) (Criteria for Selection of Panelists, 
Replacement Panelists, and Floor-Based Panelists).\4\ At the same time, 
the Exchange removed the reference to offices of a member in the second 
paragraph of Rule 308(d) by deleting ``member or'' from the final 
sentence of that paragraph.\5\ In an omission, it did not delete 
``member or'' from the final sentence of the first paragraph of Rule 
308(d). It proposes to do so now.
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    \4\ See Securities Exchange Act Release No. 97206 (March 27, 
2023), 88 FR 19334 (March 31, 2023) (SR-NYSE-2023-19) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change to Amend 
Rule 308 as Defined in Rule 9232(b) and Delete and Replace Certain 
Obsolete References). The rule change included the deletion and, 
where applicable, replacement of obsolete references in the NYSE 
rules and Listed Company Manual.
    \5\ See Exhibit 5 of SR-NYSE-2023-19 (March 17, 2023), p. 37 
(``March Filing'').
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    The Exchange proposes to delete the reference because under Rule 
2(a) (``Member,'' ``Membership,'' ``Member Firm,'' etc.), a member is a 
natural person associated with a member organization who has been 
approved by the Exchange and designated by such member organization to 
effect transactions on the trading floor of the Exchange or any 
facility thereof. As such, a member cannot be a license holder or a 
registered broker-dealer, and thus would not have an office that 
``engages in a business involving substantial direct contact with 
securities customers'' as set forth in Rule 308(d), unlike member 
organizations.\6\
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    \6\ See Rules 2(a) (definition of member); 2(b)(i) (defining a 
member organization as a registered broker or dealer); & 300(a) 
(providing that trading licenses are issued to member 
organizations). Accordingly, references to offices of a Member 
Organization are not proposed to be deleted.
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    The proposed change would be consistent with both the change made 
to the second paragraph of Rule 308(d) in the March Filing and with 
changes made to Rule 308-Equities(d) (Acceptability Proceedings) of the 
Exchange's affiliate NYSE American LLC.\7\
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    \7\ See Exhibit 5 of SR-NYSEAmer-2023-29 (May 16, 2023), p. 30. 
See also Securities Exchange Act Release No. 97581 (May 25, 2023), 
88 FR 35968 (June 1, 2023) (SR-NYSEAmer-2023-29) (Notice of Filing 
and Immediate Effectiveness of Proposed Change to Amend Rule 9232 
and Rule 308-Equities).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\9\ in particular, 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.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that deletion of the obsolete reference to a 
member in Rule 308(d) would increase the clarity and transparency of 
the Exchange's rules and remove impediments to and perfect the 
mechanism of a free and open market by ensuring that persons subject to 
the Exchange's jurisdiction, regulators, and the investing public could 
more easily navigate and understand the Exchange rules. The Exchange 
believes that it would alleviate any possible confusion that could 
result from the current reference to the offices of a member or member 
organization in paragraph one of Rule 308(d) and the offices of a 
member organization in paragraph two of Rule 308(d). The Exchange 
further believes that the proposed change 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 and clarity, 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 rule change 
does not address competitive issues but rather proposes the deletion of 
an obsolete reference in Rule 308(d).

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\ 
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 for 30 
days after the date of the filing, 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.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\13\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
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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) \14\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \14\ 15 U.S.C. 78s(b)(2)(B).
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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:

[[Page 40366]]

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-NYSE-2023-22 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-2023-22. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for website viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE, 
Washington, DC 20549 on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection. All 
submissions should refer to file number SR-NYSE-2023-22 and should be 
submitted on or before July 12, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-13107 Filed 6-20-23; 8:45 am]
BILLING CODE 8011-01-P