Document ID: SEC-2022-0466-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange, LLC
Posted Date: 2022-04-05T04:00Z

[Federal Register Volume 87, Number 65 (Tuesday, April 5, 2022)]
[Notices]
[Pages 19722-19723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-07080]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94558; File No. SR-NYSE-2022-15]

Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend NYSE Rule 6A

March 30, 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 March 24, 2022, New York Stock Exchange LLC (``NYSE'' or 
the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I, 
II, and III 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 NYSE Rule 6A (``Trading Floor'') to 
exclude from the definition of Trading Floor the presence of fully 
enclosed telephone booths located in 18 Broad Street. 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 NYSE Rule 6A (``Trading Floor'') to 
exclude from the definition of ``Trading Floor'' the presence of fully 
enclosed telephone booths located in 18 Broad Street.
    The Exchange currently defines ``Trading Floor'' \4\ in Rule 6A(a) 
to mean the restricted-access physical areas designated by the Exchange 
for the trading of securities, commonly known as the ``Main Room'' and 
the ``Buttonwood Room.'' \5\ Rule 6A(b) currently specifies that the 
Exchange's Trading Floor does not include (i) areas designated by the 
Exchange where NYSE American-listed options are traded, commonly known 
as the ``Buttonwood Room,'' which, for the purposes of the Exchange's 
Rules, are referred to as the ``NYSE American Options Trading Floor,'' 
or (ii) the physical area within fully enclosed telephone booths 
located in 18 Broad Street at the Southeast wall of the Trading 
Floor.\6\
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    \4\ Access to the Trading Floor is restricted at each entrance 
by turnstiles and only authorized visitors, members or member firm 
employees are permitted to enter.
    \5\ See NYSE Rule 6A. The term ``Trading Floor'' is distinct 
from the term ``Floor.'' The term ``Floor'' means the trading Floor 
of the Exchange and the premises immediately adjacent thereto, such 
as the various entrances and lobbies of the 11 Wall Street, 18 New 
Street, 8 Broad Street, 12 Broad Street and 18 Broad Street 
Buildings, and also means the telephone facilities available in 
these locations. See NYSE Rule 6.
    \6\ See id. See also Securities Exchange Act Release Nos. 59479 
(March 2, 2009), 74 FR 10325 (March 10, 2009) (SR-NYSE-2009-23) 
(Notice of filing adopting NYSE Rule 6A and explaining that the 
proposed definition of ``Trading Floor'' will provide a more 
accurate description of the physical areas of the Floor where 
trading is actually conducted); and 78855 (September 15, 2016), 81 
FR 64966 (September 21, 2016) (SR-NYSE-2016-31) (Approval of filing 
amending Rule 6A renaming the physical area formerly known as the 
``Garage'' to the ``Buttonwood Room'' and excluding the physical 
area within fully enclosed telephone booths located in 18 Board 
Street from the definition of Trading Floor) (``2016 Filing'')).
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    The telephone booths were installed in 2016 to facilitate 
communication by DMMs with issuers but can be used by anyone on the 
Trading Floor.\7\ The telephone booths, however, have been 
underutilized. As a result, the Exchange has determined to completely 
remove the telephone booths at 18 Broad Street. To reflect this change, 
the Exchange proposes to delete the phrase ``the physical area within 
fully enclosed telephone booths located in 18 Broad Street at the 
Southeast wall of the Trading Floor'' from Rule 6A(b). The Exchange 
does not anticipate that removal of the telephone booths will in any 
way impede a DMM's obligation to regularly communicate with their 
listed issuers.\8\
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    \7\ See 2016 Filing, 81 FR at 64966.
    \8\ See Rule 104(j).
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    Once the telephone booths are removed, the area where the telephone 
booths are located will again be a part of the Trading Floor and would 
fall within the broader definition of Floor under Exchange rules. The 
Exchange will thus retain jurisdiction in this area to regulate conduct 
that is inconsistent with Exchange Rules and the federal securities 
laws and rules thereunder.
2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent 
with, and further the objectives of, Section 6(b)(5) of the Securities 
Exchange Act of 1934 \9\ (the ``Act''), in that they are designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, 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. The 
proposed rule

[[Page 19723]]

change would exclude from the definition of Trading Floor the presence 
of fully-enclosed telephone booths that are located on the perimeter of 
the Trading Floor. The Exchange believes that excluding the presence of 
these telephone booths from the definition of Trading Floor is designed 
to prevent fraudulent and manipulative acts and practices and to 
promote just and equitable principles of trade because the area where 
the telephone booths are located will once again become a part of the 
Trading Floor and thus allow the Exchange to regulate conduct that is 
inconsistent with Exchange Rules and the federal securities laws and 
rules thereunder. The Exchange also believes that the proposed change 
would protect investors and the public interest because removing 
reference to telephone booths from the definition of Trading Floor 
would make the Exchange's rulebook more transparent and facilitate 
market participants' understanding of the rules applicable to them.
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    \9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes 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 issues relating to competition. Rather, the 
proposed rule change would remove the physical area where telephone 
booths are located from the definition of Trading Floor and revert 
jurisdiction in that area back to the Exchange.

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 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.
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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 19b-4(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:

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-NYSE-2022-15 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2022-15. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549, on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSE-2022-15 and should be submitted on 
or before April 26, 2022.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-07080 Filed 4-4-22; 8:45 am]
BILLING CODE 8011-01-P