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Federal Register / Vol. 86, No. 143 / Thursday, July 29, 2021 / Notices
proposal, disapprove the proposal, or institute proceedings to determine whether to approve or disapprove the proposal.4 On March 1, 2021, the Commission instituted proceedings under Section 19b2B of the Act 5 to determine whether to approve or disapprove the proposed rule change.6
On April 12, 2021, the Exchange filed Amendment No. 1 to the proposed rule change with the Commission and submitted Amendment No. 1 for inclusion in the public comment file.7
On May 17, 2021, the Exchange filed Amendment No. 2 to the proposed rule change with the Commission, which superseded the original filing, as amended by Amendment No. 1, in its entirety, and submitted Amendment No.
2 for inclusion in the public comment file.8 On May 24, 2021, the Commission extended to July 29, 2021, the time period in which to approve or disapprove the proposal.9 The Commission has received no comment letters on the proposed rule change.
The Commission is publishing notice of the filing of Amendment No. 2 to solicit comment from interested persons, and is approving the proposed rule change, as modified by Amendment No. 2, on an accelerated basis.

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II. Self-Regulatory Organizations Description of the Proposal, as Modified by Amendment No. 2
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.
4 See Securities Exchange Act Release No. 90917
Jan. 13, 2021, 86 FR 6403 Jan. 21, 2021.
5 15 U.S.C. 78sb2B.
6 See Securities Exchange Act Release No. 91227, Mar. 1, 2021, 86 FR 12991 Mar. 5, 2021 Order Instituting Proceedings.
7 See Letter from Martha Redding, Associate General Counsel, NYSE LLC, to Secretary, Commission April 12, 2021. Amendment No. 1 is available at https www.sec.gov/comments/sr-nyse2020-95/srnyse202095-8662901-235314.pdf.
8 In Amendment No. 2, the Exchange proposes to:
i Amend Rule 7.35Ac1H to provide a 5%
price parameter and eliminate the volume restrictions for DMM-facilitated Trading Halt Auctions; and ii amend Rule 7.35Ad3B to provide that the Applicable Price Range for determining whether to publish a pre-opening indication for a Trading Halt Auction would be 5%
for securities with an Indication Reference Price over $3.00 and $0.15 for securities with an Indication Reference Price equal to or lower than $3.00. See Letter from Martha Redding, Associate General Counsel, NYSE LLC, to Secretary, Commission May 17, 2021. Amendment No. 2 is available at https www.sec.gov/comments/sr-nyse2020-95/srnyse202095-8807418-237986.pdf.
9 See Securities Exchange Act Release No. 91975
May 24, 2021, 86 FR 28921 May 28, 2021.

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The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.

to DMMs or after the Exchange closes on April 30, 2021.15
Specifically, Commentary .01 to Rule 7.35A provides:

A. Self-Regulatory Organizations Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change
For a temporary period that begins March 23, 2020, when the Trading Floor facilities have been closed pursuant to Rule 7.1c3, and ends on the earlier of a full reopening of the Trading Floor facilities to DMMs or after the Exchange closes on December 31, 2020:
a The percentage price parameters in paragraph c1G and c2 of this Rule are suspended and a DMM may not effect a Core Open or Trading Halt Auction electronically if the Core Open or Trading Halt Auction Price will be more than 10% away from the Consolidated Last Sale Price.
b The volume parameters in paragraph c1H of this Rule are suspended.
c The requirement to publish a preopening indication pursuant to paragraph d of this Rule before either a Core Open or Trading Halt Auction is suspended.

1. Purpose The Exchange proposes to make permanent Commentaries .01a and b and .06 to Rule 7.35A DMM-Facilitated Core Open and Trading Halt Auctions and Commentaries .01 and .03 to Rule 7.35B DMM-Facilitated Closing Auctions and make related changes to Rules 7.32 Order Entry, 7.35C
Exchange-Facilitated Closing Auctions, 46B Regulatory Trading Official, and 47 Floor Officials Unusual Situations.10
Background In connection with the closing of the Trading Floor facilities located at 11
Wall Street in New York City as of March 23, 2020 and moving the Exchange, on a temporary basis, to fully electronic trading,11 and subsequent reopening of the Trading Floor on a limited basis first to Floor Brokers on May 26, 2020 12 and then to DMMs on June 15, 2020,13 the Exchange added Commentaries .01 and .06 to Rule 7.35A
and Commentaries .01 and .03 to 7.35B.14 Currently, these Commentaries are in effect until the earlier of a full reopening of the Trading Floor facilities 10 In this Amendment No. 2, the Exchange proposes that the percentage parameter that would be applicable to when a DMM may electronically facilitate a Trading Halt Auction or would be required to publish a pre-opening indication would be 5% instead of 10%.
11 Pursuant to Rule 7.1e, the CEO notified the Board of Directors of the Exchange of her determination under Rule 7.1c3. The Exchanges rules establish how the Exchange will function fully-electronically. See Press Release, dated March 18, 2020, available here: https ir.theice.com/press/
press-releases/all-categories/2020/03-18-2020204202110.
12 See Securities Exchange Act Release No. 88933
May 22, 2020, 85 FR 32059 May 28, 2020 SR
NYSE202047 Notice of filing and immediate effectiveness of proposed rule change.
13 See Securities Exchange Act Release No. 89086
June 17, 2020 SRNYSE202052 Notice of filing and immediate effectiveness of proposed rule change.
14 See Securities Exchange Act Release Nos.
88444 March 20, 2020, 85 FR 17141 March 26, 2020 SRNYSE202022 amending Rules 7.35A
to add Commentary .01, 7.35B to add Commentary .01, and 7.35C to add Commentary .02 and 89086
June 17, 2020, 85 FR 37712 SRNYSE202052
amending Rules 7.35A to add Commentary .06, 7.35B to add Commentary .03, 76 to add Supplementary Material 20, and Supplementary Material .30 to Rule 36.

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Commentary .06 to Rule 7.35A
provides:
For a temporary period that begins on June 17, 2020 and ends on the earlier of a full reopening of the Trading Floor facilities to DMMs or after the Exchange closes on December 31, 2020, the Applicable Price Range specified in paragraphs d3A and B of this Rule is suspended and the Applicable Price Range will be 10% for securities with an Indication Reference Price higher than $3.00 and $0.30 for securities with an Indication Reference Price equal to or lower than $3.00.

Commentary .01 to Rule 7.35B
provides:
For a temporary period that begins March 23, 2020, when the Trading Floor facilities have been closed pursuant to Rule 7.1c3, and ends on the earlier of a full reopening of the Trading Floor facilities to DMMs or after the Exchange closes on December 31, 2020:
a The percentage price parameters in paragraph c1G of this Rule are suspended and a DMM may not effect a Closing Auction electronically if the Closing Auction Price will be more than 10% away from the Exchange Last Sale Price.
b The volume parameters in paragraph c1H of this Rule are suspended
Finally, Commentary .03 to Rule 7.35B provides:
15 See Securities Exchange Act Release No. 90795
December 23, 2020, 85 FR 86608 December 30, 2020 SRNYSE2020106 Notice of filing and immediate effectiveness of proposed rule change to extend the temporary period for Commentaries to Rules 7.35, 7.35A, 7.35B, and 7.35C; and temporary rule relief in Rule 36.30 to end on the earlier of a full reopening of the Trading Floor facilities to DMMs or after the Exchange closes on April 30, 2021. The Commission notes that, after Amendment No. 2 was filed, the Exchange extended the outside date for effectiveness of the temporary relief from April 30, 2021, to August 31, 2021. See Securities Exchange Act Release No.
91778 May 5, 2021, 85 FR 25902 May 11, 2021.

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