Document ID: SEC-2022-1690-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE American, LLC
Posted Date: 2022-12-29T05:00Z

[Federal Register Volume 87, Number 249 (Thursday, December 29, 2022)]
[Notices]
[Pages 80240-80245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-28299]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96572; File No. SR-NYSEAMER-2022-57]

Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Change To Amend Rules 
900.2NY, 925NY and 993NY

December 22, 2022.
    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 December 21, 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 900.2NY (Definitions), with 
conforming change to Rules 925NY (Obligations of Market Makers) and 
993NY (Operation of Routing Broker). 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 80241]]

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 900.2NY (Definitions), 
including to clarify and alphabetize existing definitions. As described 
in detail below, certain of the proposed modifications to existing 
definitions would update the Exchange's definitions regarding options 
trading to be substantively identical to the same defined terms as set 
forth in Rule 1.1 (referred to herein as ``Rule 1.1'') of NYSE Arca, 
Inc. (``NYSE Arca''), which is the Exchange's affiliated SRO.\4\ The 
Exchange is also proposing to make conforming change to Rules 925NY 
(Obligations of Market Makers) and 993NY (Operation of Routing Broker).
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    \4\ The proposed definitions that are based on NYSE Arca Rule 
1.1 (as identified herein) relate solely to options trading and, 
unlike Rule 1.1, do not include a description of how such terms 
relate to equities trading. Thus, when the Exchange states that the 
proposed definitions are substantively identical to the definitions 
in Rule 1.1, the Exchange means solely as relates to options 
trading. The Exchange believes this distinction is immaterial as 
Rule 900.2NY pertains solely to options trading, whereas Rule 1.1 
applies to both options and equities trading.
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    Rule 900.2NY sets forth definitions applicable to the trading of 
option contracts on the Exchange. The Exchange proposes to modify Rule 
900.2NY in a number of ways. First, the Exchange proposes to modify 
Rule 900.2NY to remove the numbering (of 1-88) associated with each 
defined term and to re-locate those definitions that are out of 
alphabetical order (which change impacts existing definitions: 
``Exchange System,'' ``ICE,'' and ``Short Term Option Series'').\5\ The 
Exchange does not believe that the sub-paragraph numbering is necessary 
because the definitions are (mostly) organized in alphabetical order 
and would continue to be organized in alphabetical order. In addition, 
removing the sub-paragraph numbering would make any future amendments 
to Rule 900.2NY easier to process as any new definitions would simply 
be added in alphabetical order. The Exchange believes this proposed 
change would add more clarity and transparency to Exchange rules making 
them easier to navigate and comprehend. The Exchange also proposes to 
change ``which'' to ``that'' in the proposed definitions of ``Clearing 
Member'' and ``Outstanding,'' as well as changing ``shall refer to'' 
with ``means'' to streamline the proposed definitions of ``BBO'' and 
``NBBO,'' which are stylistic preferences that would add consistency to 
Exchange rules.
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    \5\ The Exchange is not proposing any textual changes to the 
definition of ``Exchange System'' or ``ICE,'' but is merely 
relocating the definitions. The Exchange is not proposing to 
relocate the definition of ``Short Term Options Series'' in the 
proposed rule because it is duplicative of Rule 903(h) (describing 
the Short Term Option Series Program).
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    Second, the Exchange proposes to modify certain existing 
definitions as follows.
     The Exchange proposes to amend certain definitions to use 
the term ``underlying security'' rather than referring separately to an 
``underlying stock or Exchange-Traded Fund Share.'' The Exchange 
believes that this proposed change would not make any substantive 
changes because an Exchange-Traded Fund Share is a ``security'' as that 
term is defined in Rule 900.2NY(71) (i.e., that ``security'' refers to 
``any security as defined in Rule 3(a)(10) under the Securities 
Exchange Act of 1934''). Accordingly, the term ``underlying security,'' 
by definition, would include stock or Exchange-Traded Fund Shares. The 
Exchange proposes to make this change to the following definitions: 
``Aggregate Exercise Price,'' ``Call,'' ``Class of Options,'' 
``Covered,'' ``Exercise Price,'' ``Primary Market,'' ``Put,'' ``Option 
Issue,'' and ``Underlying Stock or Underlying Security.'' \6\ These 
proposed changes are substantively identical to how these terms are 
defined in NYSE Arca Rule 1.1.
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    \6\ The Exchange proposes to make a similar non-substantive 
change to delete the term ``Exchange-Trade Fund Share'' in Rule 
925NY(b) and (c).
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     The Exchange proposes to streamline the definitions of 
``Closing Purchase Transaction,'' ``Closing Sale Transaction,'' 
``Opening Purchase Transaction,'' and ``Opening Writing Transaction'' 
without any substantive differences, consistent with how these terms 
are defined per NYSE Arca Rule 1.1, as follows:
    [cir] The term ``Closing Purchase Transaction'' is currently 
defined in Rule 900.2NY(12) to mean ``an option transaction in which 
the purchaser's intention is to reduce or eliminate a short position in 
the series of options involved in such transaction.'' The proposed Rule 
900.2NY definition of this term would be ``a transaction in a series in 
which the purchaser intends to reduce or eliminate a short position in 
such series.''
    [cir] The term ``Closing Sale Transaction'' is currently defined in 
Rule 900.2NY(13) to mean an ``option transaction in which the seller's 
intention is to reduce or eliminate a long position in the series of 
options involved in such transaction.'' The proposed Rule 900.2NY 
definition of this term would be ``a transaction in a series in which 
the seller intends to reduce or eliminate a long position in such 
series.''
    [cir] The term ``Opening Purchase Transaction'' is currently 
defined in Rule 900.2NY(51) to mean ``an option transaction in which 
the purchaser's intention is to create or increase a long position in 
the series of options involved in such transaction.'' The proposed Rule 
900.2NY definition of this term would be ``a transaction in a series in 
which the purchaser intends to create or increase a long position in 
such series.''
    [cir] The term ``Opening Writing Transaction'' is currently defined 
in Rule 900.2NY(52) to mean ``an option transaction in which the 
seller's (writer's) intention is to create or increase a short position 
in the series of options involved in such transaction.'' The proposed 
Rule 900.2NY definition of this term would be ``a transaction in a 
series in which the seller (writer) intends to create or increase a 
short position in such series.''
     The Exchange proposes to revise the definition of ``ATP'' 
and ``ATP Holder'' to remove reference to 86 Trinity Holders as being 
included in these definitions because these permits are no longer valid 
and no participants of the Exchange hold such permits. Accordingly, the 
Exchange proposes to remove reference to this concept to add clarity 
and transparency to Exchange rules.
     The Exchange proposes to revise the definition of BBO, 
which is currently defined in Rule 900.2NY(7)(a) as ``the best bid or 
offer on the System,'' to instead be defined as ``the best displayed 
bid or best displayed offer on the Exchange.'' \7\ The Exchange 
believes that the proposed difference would add granularity to be clear 
that non-displayed quotes and orders would not be included in the BBO, 
which is consistent with current functionality. This proposed change is 
substantively identical to how this term is defined in NYSE Arca Rule 
1.1.
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    \7\ The Exchange is not proposing any changes to the definitions 
of Complex BBO or Derived BBO as set forth in Rule 900.2NY(7)(a).
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     The Exchange proposes to revise the definition of ``Class 
of Options,'' which is currently defined in Rule 900.2NY(10), to 
include ``class,'' and to refer to ``all series of options, both puts 
and calls, overlying the same underlying security. This proposed change 
is substantively identical to how this term is defined in NYSE Arca 
Rule 1.1.

[[Page 80242]]

     The Exchange proposes to revise the definition of 
``Consolidated Book,'' which is currently defined in Rule 900.2NY(14) 
as ``the Exchange's electronic book of limit orders for the accounts of 
Customers and broker-dealers, and Quotes with Size,'' and further 
provides that ``[a]ll orders and Quotes with Size that are entered into 
the Book will be ranked and maintained in accordance with the rules of 
priority as provided in Rule 964NY'' to include the shorthand ``Book'' 
in the title and to replace reference to ``Quotes with Size'' to 
``quotes,'' as the former concept incorporates to the definition of 
quotes set forth in Rule 925.1NY(a)(1)) and would thus streamline the 
proposed definition. The Exchange also proposes to refer simply to 
``orders'' and to remove reference to ``limit'' orders and ``orders for 
the accounts of Customers and broker-dealers,'' because the proposed 
use of the phrase ``electronic book of orders and quotes'' makes clear 
that the Consolidated Book would include all orders and quotes, 
including orders from both ``Customers and broker-dealers,'' and it is 
not necessary to separately reference what entity may be entering 
orders. This proposed change is substantively identical to how this 
term is defined in NYSE Arca Rule 1.1.\8\
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    \8\ The Exchange also proposes to remove as duplicative the 
definition of ``Book, Consolidated Book'' which is currently defined 
in Rule 900.2NY(46), as ``the System's electronic file of orders and 
quotes, which contains all of the orders in the Display Order 
Process and the Working Order File and all of the Market Makers' 
quotes in the Display Order Process,'' so as to avoid investor 
confusion and help streamline Exchange rules making them easier to 
follow and comprehend.
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    [cir] Relatedly, consistent with the foregoing argument to replace 
reference to ``Quotes with Size'' with ``quotes'' in the proposed 
definition of Consolidate Book, the Exchange proposes to delete as 
duplicative the definition of ``Quote with Size,'' which is currently 
defined in Rule 900.2NY(65) to mean ``a quotation (as defined in Rule 
925.1NY(a)(1)) to buy or sell a specific number of option contracts at 
a specific price that a Market Maker has submitted to the System 
through an electronic interface.'' Because the concept of Quote with 
Size cross-references and incorporates the definition of quotes set 
forth in Rule 925.1NY(a)(1)), the Exchange believes this proposed 
deletion would streamline and add internal consistent to Exchange 
rules.
     The Exchange proposes to revise the definition of ``Crowd 
Participants,'' which is currently defined in Rule 900.2NY(17) to mean 
``the Market Makers appointed to an option issue under Rule 923NY, and 
any Floor Brokers actively representing orders at the best bid or offer 
on the Exchange for a particular option series,'' to not include the 
clause ``for a particular option series'' as unnecessary text. This 
proposed change is substantively identical to how this term is defined 
in NYSE Arca Rule 1.1.
     The Exchange proposes to revise the definition of 
``Electronic Order Capture System,'' which is currently defined in Rule 
900.2NY(20), to include the shorthand ``EOC'' in the title and to 
eliminate reference to the Commission's order Instituting Public 
Administrative Proceedings Pursuant to Section 19(h)(1) of the 
Securities Exchange Act of 1934, Making Findings and Imposing Remedial 
Sanctions, which was the initial authority for the Exchange to specify 
requirements relating to the Electronic Order Capture System. The 
Exchange will continue to include requirements for the Electronic Order 
Capture System in its rules and does not believe it is necessary to 
continue to cite to the original authority for this requirement in 
Exchange rules. The Exchange also proposes to correct/delete the 
erroneous references to ``ATP Firms,'' which is not a defined concept 
on the Exchange. This proposed change is substantively identical to how 
this term is defined in NYSE Arca Rule 1.1.
     The Exchange proposes to streamline the definition of 
``Expiration Date,'' which is currently defined in Rule 900.2NY(26), to 
eliminate now obsolete language limiting the definition to options 
expiring before, on, or after February 15, 2015. In addition, the 
Exchange does not propose to include the following text in the proposed 
Rule 900.2NY definition of ``Expiration Date'': ``Notwithstanding the 
foregoing, in the case of certain long-term options expiring on or 
after February 1, 2015 that the Options Clearing Corporation has 
designated as grandfathered, the term ``expiration date'' shall mean 
the Saturday immediately following the third Friday of the expiration 
month.'' This rule text is now obsolete as the Exchange does not have 
any series trading on the Exchange with such Saturday expiration dates. 
This proposed change is substantively identical to how this term is 
defined in NYSE Arca Rule 1.1.
     The Exchange proposes to amend the definition of ``NBBO,'' 
which is currently defined in Rule 900.2NY(41)(a), to add language 
stating that ``[t]he terms `NBB' mean the national best bid and `NBO' 
means the national best offer,'' which would add clarity to Exchange 
rules.\9\
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    \9\ The Exchange notes that, unlike Rule 1.1, the proposed 
definition of NBBO does not include reference to the Exchange's 
adjustment of its calculation of the NBBO, as this language applies 
to options trading on the Pillar platform. The Exchange believes 
this distinction is immaterial and inapplicable as the Exchange has 
not migrated to the Pillar trading platform.
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     The Exchange proposes to amend the definition of ``Options 
Trading,'' which is currently defined in Rule 900.2NY(56), to delete 
the phrase ``issued by the Options Clearing Corporation.'' Accordingly, 
the proposed Rule 900.2NY definition of ``options trading'' would be as 
follows: ``when not preceded by the word `Exchange,' means trading in 
any option contract, whether or not approved for trading on the 
Exchange.'' The Exchange believes that this proposed change is 
immaterial because the Exchange trades only options that have been 
issued by the Options Clearing Corporation, and therefore reference to 
the OCC is redundant and unnecessary. The Exchange also proposes to 
delete as superfluous the reference to any ``class or series'' of 
option contract traded whether or not approved by the Exchange. This 
proposed change is substantively identical to how this term is defined 
in NYSE Arca Rule 1.1.
     The Exchange proposes to modify the definition of 
``Outstanding'' to replace the following (seemingly incomplete) Rule 
900.2NY(58) text, ``has neither been the subject of a closing sale 
transaction on the Exchange or a comparable expiration date,'' with the 
following, ``has not been the subject of a closing sale transaction, 
exercised, or expired.'' The Exchange believes that the proposed 
revised text is more complete. This proposed change is substantively 
identical to how this term is defined in NYSE Arca Rule 1.1.
     The Exchange proposes to modify the definition of 
``Trading Crowd,'' which is currently defined in Rule 900.2NY(80), to 
remove the text that limits Market Makers covered by the definition to 
those ``who hold an appointment in the option classes'' and to expand 
the definition to include Floor Brokers, which modified definition is 
substantially identical to how this term is defined in NYSE Arca Rule 
1.1, with the one difference that Rule 1.1 refers to the ``trading 
post'' whereas the proposed definition refers to the conceptually 
identical defined term ``Trading Zone.'' \10\
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    \10\ Including Floor Brokers in the definition of Trading Crowd 
is also consistent with how this concept is defined on other options 
exchanges. See also Cboe Exchange Inc. Rule 1.1 (defining the terms 
``in-crowd market participant'' and ``ICMP'' to include ``an in-
crowd Market-Maker, an on-floor DPM or LMM with an allocation in a 
class, or a Floor Broker or PAR Official representing an order in 
the trading crowd on the trading floor'').

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[[Page 80243]]

     The Exchange proposes to modify the definition of 
``Trading Facilities,'' which is currently defined in Rule 900.2NY(81), 
to remove the reference to ``11 Wall Street, New York, NY'' (i.e., the 
physical location of the Trading Floor) such that ``Trading 
Facilities'' would mean ``the Exchange's facilities for the trading of 
options, office space provided by the Exchange to ATP Holders in 
connection with their floor trading activities, and any and all 
electronic or automated order execution systems and reporting services 
provided by the Exchange to ATP Holders.'' \11\ This proposed change is 
substantively identical to how this term is defined in NYSE Arca Rule 
1.1.
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    \11\ See Rule 900.2NY(30) (defining the terms ``Floor'' and 
``Trading Floor'' as referring to ``the options trading floor 
located at 11 Wall Street, New York, NY.'').
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     The Exchange proposes to modify the definition of an 
``Uncovered'' position, which is currently defined in Rule 900.2NY(85) 
as ``in respect of a short position in an option contract means that 
the short position is not covered.'' Because a ``covered'' position is 
also defined in proposed Rule 900.2NY, the Exchange proposes to add 
quotation marks around ``covered'' and, immediately after this term, to 
add ``as defined above,'' to make clear the cross-reference is to 
another defined term, which would add transparency to the rule text and 
is consistent with how this term is defined in NYSE Arca Rule 1.1.
    In addition, the Exchange proposes to clarify, expand and/or 
streamline certain existing definitions, including to specify 
variations or abbreviations of the defined term, as follows.
     The Exchange proposes to revise the definition of 
``Board,'' which is currently defined in Rule 900.2NY(8) and refers to 
the Board of Directors of the Exchange to include the synonymous 
defined term ``Board of Directors,'' which term is used throughout 
existing Exchange rules and make two changes to add the article ``the'' 
immediately before ``Board of Directors'' and to remove the 
(superfluous) term ``shall.'' These proposed changes would add clarity 
and consistency to Exchange rules.
     The Exchange proposes to revise the definition of 
``Customer,'' which is currently defined in Rule 900.2NY(18), to 
include reference to the sub-category (and separate and distinct 
definition) of ``Professional Customer'' in the title. The Exchange 
also proposes to modify the definition of Professional Customer to 
align with how this term is defined in NYSE Arca Rule 1.1, i.e., to 
remove as superfluous the sub-heading ``Calculation of Professional 
Customer Orders,'' to modify the wording and numbering in the portion 
of the proposed definition that describes how the Exchange calculates 
orders for purposes of determining whether a market participant 
qualifies as a ``Professional Customer.''
     The Exchange proposes to revise the definition of 
``Floor,'' which is currently defined in Rule 900.2NY(30) and refers to 
the options trading floor, to include the synonymous defined terms 
``Trading Floor'' and ``Options Trading Floor,'' which terms are used 
throughout existing Exchange rules and make one change to remove the 
term ``shall.'' These proposed changes would add clarity and 
consistency to Exchange rules. which would add clarity and transparency 
to Exchange rules.
     The Exchange proposes to correct a typographical error in 
the definition of Marketable, which is currently defined in Rule 
900.2NY(39), to capitalize the reference to ``Orders'' as pertains to 
``Market Orders,'' which are defined in Rule 900.3NY(a). This proposed 
change would add transparency and internal consistency to Exchange 
rules.
     The Exchange proposes to revise the definition of ``Market 
Center,'' which is currently defined in Rule 900.2NY(36) and refers a 
national securities exchange that has qualified for participation in 
the Options Clearing Corporation pursuant to the provisions of the 
rules of the Options Clearing Corporation, to include the term 
``Trading Center.''
     The Exchange proposes to revise the definition of 
``Minimum Price Variation,'' which is currently defined in Rule 
900.2NY(40) and means the variations established by the Exchange 
pursuant to Rule 960NY(a), to include reference to the shorthand 
``MPV'' in the title. This proposed change would add transparency and 
internal consistency to Exchange rules.
     The Exchange proposes to revise the definition of ``Non-
Resident Organization,'' which is currently defined in Rule 
900.2NY(43), to revise the numbering of the sub-paragraphs to be 
consistent with the balance of the proposed rule. This proposed change 
would add internal consistency to Exchange rules.
     The Exchange proposes to revise the definition of ``NYSE 
American Options,'' which is currently defined in Rule 900.2NY(47), to 
include reference to the shorthand ``NYSE American'' in the title. This 
proposed change would add internal consistency to Exchange rules.
     The Exchange proposes to revise the definition of 
``Options Clearing Corporation,'' which is currently defined in Rule 
900.2NY(55), to include reference to the shorthand ``OCC'' in the 
title. This proposed change would add internal consistency to Exchange 
rules.
     The Exchange proposes to revise the definition of ``Order 
Flow Provider,'' which is currently defined in Rule 900.2NY(57), to 
include reference to the shorthand ``OFP'' in the title. This proposed 
change would add internal consistency to Exchange rules.
     The Exchange proposes to revise the definition of 
``Related Person,'' which is currently defined in Rule 900.2NY(67), to 
revise the numbering of the sub-paragraphs to be consistent with the 
balance of the proposed rule. This proposed change would add 
transparency and internal consistency to Exchange rules.
     The Exchange proposes to revise the definition of ``Series 
of Options,'' which is currently defined in Rule 900.2NY(73), to 
include ``option series'' or ``series,'' which change would add 
transparency and internal consistency to Exchange rules.
     The Exchange proposes to revise the definition of 
``Trading Official,'' which is currently defined in Rule 900.2NY(82), 
to add quotation marks around the defined term, which correction would 
add transparency and internal consistency to Exchange rules.
    Finally, the Exchange proposes to relocate (and revise) the 
definition of ``Routing Broker,'' which is currently defined in Rule 
900.2NY(69) to mean ``the broker-dealer affiliate of the Exchange and/
or any other non-affiliate third-party broker-dealer that acts as a 
facility of the Exchange for routing orders entered into the System of 
ATP Holders and Sponsored Participants to other Market Centers for 
execution whenever such routing is required by Exchange Rules.'' The 
Exchange proposes to re-locate this term to Rule 993NY (Operation of a 
Routing Broker) to mean ``the broker-dealer affiliate of the Exchange 
and/or any other non-affiliate that acts as a facility of the Exchange 
for routing orders submitted to the Exchange to other Market Centers 
for execution whenever such routing is required by Exchange Rules and 
federal securities laws.'' \12\ The proposed rule text is based on the 
current definition in Rule 900.2NY(69), with differences to

[[Page 80244]]

streamline the definition (i.e., by removing reference to the ATP 
Holder or Sponsoring Participant submitting the order). The Exchange 
notes that the proposal to include the definition of ``Routing Broker'' 
in its rule governing the operation of the routing broker (as well as 
the content of the revised definition) is consistent with the NYSE Arca 
Rule 6.96-O (Operation of Routing Broker).
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    \12\ See proposed Rule 993NY(a). The Exchange also proposes non-
substantive amendments to Rule 993NY to renumber current paragraphs 
(a), (b), and (c), as paragraphs (b), (c), and (d).
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2. Statutory Basis

    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (the ``Act''),\13\ in general, and 
furthers the objectives of Section 6(b)(5),\14\ 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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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed amendments to Rule 900.2NY 
would remove impediments to and perfect the mechanism of a free and 
open market and a national market system because the proposed changes 
are designed to promote clarity, transparency, and internal consistency 
in Exchange rules. The Exchange believes that the proposed changes to 
eliminate duplicative definitions that are used elsewhere in Exchange 
rules and to modify the text of certain existing definitions would 
further remove impediments to and perfect the mechanism of a free and 
open market and a national market system because it would ensure that 
the definitions used in Exchange rules are updated to accurately 
reflect (or more clearly describe) functionality and are internally 
consistent. In particular, the Exchange believes that the proposed 
updates to existing definitions would add further granularity, clarity 
and transparency to Exchange rules making them easier for the investing 
public to navigate. The proposed changes to existing definitions would 
also remove impediments to, and perfect the mechanism of, a free and 
open market and a national market system because the definitions, as 
modified, are substantively identical to how the same concepts are 
described in NYSE Arca Rule 1.1.
    Finally, the Exchange believes that the clarifying changes, 
including non-substantive and conforming changes, would remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, not significantly affect the protection of 
investors or the public interest because such changes add clarity, 
transparency, and internal consistency to Exchange rules to the benefit 
of all market participants.\15\ The Exchange believes that organizing 
Rule 900.2NY alphabetically and eliminating sub-paragraph numbering 
would make the proposed rules easier to navigate.
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    \15\ See e.g., notes 5, 6, 7 and 12, supra.
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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 intended to address competitive issues but is rather designed to 
add clarity, transparency, and internal consistency to Exchange rules 
making them easier to comprehend and navigate. Since the proposal does 
not substantively modify system functionality or processes on the 
Exchange, the proposed changes will not impose any burden on 
competition.

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 \16\ and Rule 19b-4(f)(6) thereunder.\17\ 
Because the foregoing 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 19(b)(3)(A) of the Act \18\ and Rule 19b-4(f)(6) 
\19\ thereunder.
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    \16\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 17 CFR 240.19b-4(f)(6). In addition, 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, 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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    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) \20\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \20\ 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-2022-57 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-2022-57. 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

[[Page 80245]]

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-2022-57 and 
should be submitted on or before January 19, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-28299 Filed 12-28-22; 8:45 am]
BILLING CODE 8011-01-P