60 Day Notice

Federal Register / Vol. 89, No. 113 / Tuesday, June 11, 2024 / Notices
public confidence in the markets is
solidified.
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 12 and Rule
19b–4(f)(6) thereunder.13 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 from the date on which it
was filed, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 14 and Rule 19b–
4(f)(6) thereunder.15
A proposed rule change filed under
Rule 19b–4(f)(6) 16 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),17 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has requested
that the Commission waive the 30-day
operative delay so that the proposed
rule change may become effective and
operative upon filing with the
Commission. The Exchange states that
the proposed rule change is tied to a
technological release that the Exchange
plans to implement by the end of June
2024, that such release may be ready
before the 30-day operative delay has
elapsed, and the Exchange seeks to
implement the proposed rule change
without delay. The Exchange explains
that the proposed rule change will assist
Entering Firms in minimizing their risk
exposure, which could enhance the
integrity of trading on the securities
markets and help to assure the stability
12 15

U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
14 15 U.S.C. 78s(b)(3)(A).
15 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.
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6)(iii).

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of the financial system, and that the
proposed rule change is not novel as it
is based on existing risk settings already
in place on other exchanges. For these
reasons, and because the proposed rule
change does not raise any new or novel
regulatory issues, the Commission
believes that waiver of the 30-day
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.18
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
to determine whether the proposed rule
change should be approved or
disapproved.

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–NYSEARCA–2024–46 and should be
submitted on or before July 2, 2024.

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:

For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Sherry R. Haywood,
Assistant Secretary.

Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
NYSEARCA–2024–46 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–NYSEARCA–2024–46. 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
18 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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[FR Doc. 2024–12687 Filed 6–10–24; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–348, OMB Control No.
3235–0394]

Proposed Collection; Comment
Request; Extension: Rule 15g–5
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 15g–5—Disclosure
of Compensation to Associated Persons
in Connection with Penny Stock
Transactions—(17 CFR 240.15g–5)
under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.). The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget
(‘‘OMB’’) for extension and approval.
19 17

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Federal Register / Vol. 89, No. 113 / Tuesday, June 11, 2024 / Notices

Rule 15g–5 requires brokers and
dealers to disclose to customers the
amount of compensation to be received
by their sales agents in connection with
penny stock transactions. The purpose
of the rule is to increase the level of
disclosure to investors concerning
penny stocks generally and specific
penny stock transactions.
The Commission estimates that
approximately 170 broker-dealers will
spend an average of approximately 87
hours annually to comply with the rule.
Thus, the total time burden is
approximately 14,790 hours per year.
Written comments are invited on: (a)
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted by
August 12, 2024.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
[email protected].

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on May 31,
2024, NYSE National, Inc. (‘‘NYSE
National’’ 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.

Dated: June 5, 2024.
Sherry R. Haywood,
Assistant Secretary.

1. Purpose
The Exchange proposes to amend
Rule 7.19 to make additional pre-trade
risk controls available to Entering Firms.

[FR Doc. 2024–12672 Filed 6–10–24; 8:45 am]
BILLING CODE 8011–01–P

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COMMISSION

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[Release No. 34–100279; File No. SR–
NYSENAT–2024–17]

Self-Regulatory Organizations; NYSE
National, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 7.19
June 5, 2024.

Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
1 15

U.S.C. 78s(b)(1).

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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 7.19 to make additional pre-trade
risk controls available to Entering Firms.
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

Background and Proposal
In 2020, in order to assist ETP
Holders’ efforts to manage their risk, the
Exchange amended its rules to add Rule
7.19 (Pre-Trade Risk Controls),4 which
established a set of optional pre-trade
risk controls by which Entering Firms
2 15

U.S.C. 78a.
CFR 240.19b–4.
4 See Securities Exchange Act Release No. 88905
(May 19, 2020), 85 FR 31582 (May 26, 2020) (SR–
NYSENAT–2020–17). Later, in 2023, the Exchange
amended its rules to make additional pre-trade risk
controls available to Entering Firms. See Securities
Exchange Act Release No. 96919 (February 14,
2023), 88 FR 10569 (February 21, 2023) (SR–
NYSENAT–2023–07).
3 17

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and their designated Clearing Firms 5
could set credit limits and other pretrade risk controls for an Entering Firm’s
trading on the Exchange and authorize
the Exchange to take action if those
credit limits or other pre-trade risk
controls are exceeded.
The Exchange has recently received
several requests from market
participants to create an additional risk
control to restrict the overall rate of
orders. The Exchange notes that several
other exchanges—including the Cboe
equities exchanges, MEMX, and the
MIAX Pearl equities exchange (‘‘MIAX
Pearl’’) 6—currently offer risk controls
substantially similar to the one
proposed here. As such, market
participants are already familiar with
these risk checks, such that the ones
proposed by the Exchange in this filing
are not novel.
In light of these requests, the
Exchange proposes to amend Rule
7.19(b)(2) to add a new subparagraph
(G), which would provide that the
Single Order Risk Controls available to
Entering Firms would include ‘‘controls
to restrict the overall rate of orders.’’
As with the Exchange’s existing risk
controls, use of the pre-trade risk
controls proposed herein would be
optional. The Exchange proposes no
other changes to Rule 7.19 or its
Commentary.
Continuing Obligations of ETP Holders
Under Rule 15c3–5
The proposed Pre-Trade Risk Controls
described here are meant to supplement,
and not replace, the ETP Holders’ own
internal systems, monitoring, and
procedures related to risk management.
The Exchange does not guarantee that
these controls will be sufficiently
comprehensive to meet all of an ETP
Holder’s needs, the controls are not
designed to be the sole means of risk
management, and using these controls
will not necessarily meet an ETP
Holder’s obligations required by
Exchange or federal rules (including,
without limitation, the Rule 15c3–5
under the Act 7 (‘‘Rule 15c3–5’’)). Use of
the Exchange’s Pre-Trade Risk Controls
will not automatically constitute
compliance with Exchange or federal
rules and responsibility for compliance
5 The terms ‘‘Entering Firm’’ and ‘‘Clearing Firm’’
are defined in Rule 7.19.
6 See, e.g., Cboe BZX Equities Rule 11.13
Interpretations and Policies .01 paragraph (f); Cboe
BYX Equities Rule 11.13 Interpretations and
Policies .01 paragraph (f); Cboe EDGA Equities Rule
11.10 Interpretations and Policies .01 paragraph (f);
Cboe EDGX Equities Rule 11.10 Interpretations and
Policies .01 paragraph (f); MEMX Rule 11.10
Interpretations and Policies .01 paragraph (f); and
MIAX Pearl Equities Rule 2618(a)(1)(H).
7 See 17 CFR 240.15c3–5.

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