Document ID: SEC-2022-0852-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE American, LLC
Posted Date: 2022-06-27T04:00Z

[Federal Register Volume 87, Number 122 (Monday, June 27, 2022)]
[Notices]
[Pages 38225-38226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13593]

[[Page 38225]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95135; File No. SR-NYSEAMER-2022-26]

Self-Regulatory Organizations; NYSE American, LLC.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Rule 902NY To Remove an Obsolete Reference

June 21, 2022.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on June 16, 2022, NYSE American, LLC (``NYSE American'' or 
the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I 
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 902NY(c) (Admission and Conduct 
on the Options Trading Floor) to remove 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.

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 amend Rule 902NY(c) regarding that 
Standards of Dress and Conduct on the Exchange to remove an obsolete 
reference.
    Rule 902NYspecifies the requirements for conduct and dress for 
person to follow while on the Options Trading Floor.\4\ Rule 902NY(c) 
``Standards of Dress and Conduct'', as follows:
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    \4\ The terms ``Floor'' and ``Trading Floor'' are defined in 
Rule 900.2NY(30) to mean ``the options trading floor located at 11 
Wall Street, New York, NY.''

    All ATP Holders are required to act in a manner consistent with 
a fair and orderly market and with the maintenance of public 
confidence in the Exchange. All persons on the Options Trading Floor 
shall comply with the standards of dress and conduct in Chapter 13, 
Floor Conduct Policy, of the NYSE Floor Officials Manual.\5\
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    \5\ See Rule 902NY(c).

    The reference to Chapter 13, Floor Conduct Policy, of the NYSE 
Floor Officials Manual is obsolete. Historically, the behavior and 
conduct of NYSE members on the NYSE equities trading Floor was 
regulated by Floor Conduct and Safety Guidelines administered by NYSE 
Floor Officials. In 2021, however, the NYSE eliminated the role and 
function of NYSE Floor Officials and adopted a new Rule 37, setting 
forth standards of dress and conduct for the NYSE equities trading 
Floor modeled on Rule 902NY.\6\ As such, the second sentence of current 
Rule 902NY(c) is no longer applicable and the Exchange proposes to 
eliminate it.
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    \6\ See Securities Exchange Act Release No. 94217 (February 10, 
2022), 87 FR 8901 (February 16, 2022) (SR-NYSE-2021-73) (Order).
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    In place of the obsolete reference, the Exchange proposes to revise 
Rule 902NY(c) to mirror language set forth in the analogous rule in 
place on the Exchange's affiliate NYSE Arca (``Arca''). Arca Rule 6.2-O 
(Admission to and Conduct on the Options Trading Floor), is 
substantially similar to Rule 902NY(c) in establishing standards of 
conduct and dress for persons while on the Arca options trading 
floors.\7\ Consistent with Arca Rule 6.2-O(c), proposed 902NY(c), 
regarding ``Standards of Dress and Conduct,'' would establish that:
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    \7\ See Rule 6.2-O(c) establishing the Standards of Dress and 
Conduct and requirement that ``[a]ll OTP Holders and OTP Firms are 
required to act in a manner consistent with a fair and orderly 
market and with the maintenance of public confidence in the 
Exchange. Accordingly, appropriate standards pertaining to dress and 
conduct on the Options Trading Floor, including, but not limited to, 
the following standards shall be observed:''

    All ATP Holders are required to act in a manner consistent with 
a fair and orderly market and with the maintenance of public 
confidence in the Exchange. Accordingly, appropriate standards 
pertaining to dress and conduct on the Options Trading Floor, 
including, but not limited to, the following standards shall be 
observed:'' (emphasis added).\8\
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    \8\ See proposed Rule 902NY(c).

    The Exchange is not proposing any other changes to the standards of 
dress and conduct expected of ATP Holders when on the Options Trading 
Floor.
2. Statutory Basis
    For the reasons set forth above, the Exchange believes the proposed 
rule change is consistent with Section 6(b) of the Act \9\ in general, 
and furthers the objectives of Sections 6(b)(4) and (5) of the Act,\10\ 
in that it is designed to promote just and equitable principles of 
trade, 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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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed rule change would remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system by removing an obsolete reference (to the no 
longer used NYSE Floor Conduct Policy) and replacing this text with 
substantially identical text in the analogous rule on Arca, the 
Exchange affiliate options market. Moreover, the Exchange believes that 
by providing greater harmonization between Exchange rules and those of 
its affiliates that also have trading floors regarding access, conduct 
and decorum, the proposed rule change will foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities and will remove impediments to and perfect the mechanism of 
a free and open market and a national market system.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change is 
not designed to address any competitive issues but rather relates to 
the removal of an outdated reference contained in rules regarding 
access, conduct and decorum on the Exchange's trading floor and 
replacing such reference with language that is consistent with that of 
the Exchange's affiliate options exchange--NYSE Arca, thus harmonizing 
rules across these exchanges.

[[Page 38226]]

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 \11\ and Rule 19b-4(f)(6) thereunder.\12\ 
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.\13\
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    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 15 U.S.C. 78s(b)(3)(A)(iii). Rule 19b-4(f)(6)(iii) requires 
a self-regulatory organization to give the Commission written notice 
of its intent to file the proposed rule change 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 
Commission notes that the Exchange satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ 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 it can 
immediately remove an obsolete reference in Rule 902NY. The Commission 
is waiving the 30-day operative delay as the proposal raises no new or 
novel issue and would allow the Exchange to immediately update its rule 
text to avoid potential investor confusion. Thus, the Commission 
believes waiving the operative delay is consistent with the protection 
of investors and the public interest. Accordingly, the Commission 
hereby waives the operative delay and designates the proposed rule 
change operative upon filing.\16\
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    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
    \16\ For purposes only of waiving the 30-day operative delay, 
the Commission also 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 the 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) of the Act \17\ to determine whether the proposed 
rule change should be approved or disapproved.
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    \17\ 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:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEAMER-2022-26 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-2022-26. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSEAMER-2022-26 and should be submitted 
on or before July 18, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-13593 Filed 6-24-22; 8:45 am]
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