Quiero saber acerca de...

40892

Federal Register / Vol. 86, No. 143 / Thursday, July 29, 2021 / Notices
Auctions.34 In response to the questions raised in the Order Instituting Proceedings, the Exchange submitted Amendment No. 2, which changed 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 from 10%, as originally proposed, to 5%.
IV. Discussion and Commission Findings After careful review, the Commission is approving the proposed rule change, as modified by Amendment No. 2, for the reasons discussed below.35 The Commission finds that the proposed rule change, as modified, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange, including Section 6b5 of the Exchange Act,36 which requires, among other things, that the rules of a national securities exchange be 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; and are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers.

jbell on DSKJLSW7X2PROD with NOTICES

Parameters for DMM-Facilitated Electronic Auctions The Commission finds that the proposed change to establish wider permanent parameters for DMMfacilitated electronic Core Open Auctions and Closing Auctions is reasonably designed to promote fair and orderly Auctions on the Exchange. The Commission notes that DMMs have had over six months of experience of electronically facilitating Auctions within these parameters under temporary rules of the Exchange and that the Exchanges proposal includes statistics indicating that, during this sixmonth period, a higher percentage of Core Open Auctions and Closing Auctions have occurred shortly after 9:30 a.m. or 4:00 p.m., respectively, and that this increase has not been accompanied by an increase in auction price dislocation, but has instead been accompanied by a modest improvement.
34 See Order Instituting Proceedings, supra note 6, 86 FR at 12993.
35 In approving this proposed rule change, the Commission has considered the proposed rule changes impact on efficiency, competition, and capital formation. See 15 U.S.C. 78cf.
36 15 U.S.C. 78fb5.

VerDate Sep<11>2014

19:19 Jul 28, 2021

Jkt 253001

The Commission also finds that the proposed 5% percentage parameter for DMM-facilitated electronic Trading Halt Auctions is reasonably designed to remove impediments to and perfect the mechanism of a free and open market and a national market system because this change would align the percentage parameters for immediate electronic reopening auctions after a MWCB halt or trading pause with the initial collars applicable to electronic reopening auctions on the other primary listing exchanges.37
Applicable Price Range for Pre-Opening Indications The Exchange proposes to make permanent that the Applicable Price Range for determining whether to publish a pre-opening indication for a Core Open Auction would 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. The Exchange also proposes to change its rules to provide for an Applicable Price Range for Trading Halt Auctions of 5%
for securities with an Indication Reference Price higher than $3.00 and $0.15 for securities with an Indication Reference Price equal to or lower than $3.00. The Commission finds that these changes are reasonably designed to remove impediments to and perfect the mechanism of a free and open market and a national market system by promoting fair and orderly Auctions on the Exchange because they would align the parameters within which a DMM
may facilitate an Auction electronically and the Applicable Price Range for determining whether to disseminate a pre-opening indication which, under the Exchanges rules, prevents a DMM
from facilitating an auction electronically. Additionally, the Commission does not believe that widening the Applicable Price Range that governs when a DMM is required to publish a pre-opening indication would reduce transparency in the market because all buy and sell orders entered in advance of Core Open and Trading Halt Auctions are already reflected in Auction Imbalance Information.
Proposed Changes to Floor Broker Interest for the Closing Auction The Commission finds that the proposal to make permanent that Floor Broker Interestorders represented orally by a Floor broker at the point of salewould not be eligible to 37 See, e.g., NYSE Arca, Inc. Rule 7.35Ee7
specifying initial Auction Collars for Trading Halt Auctions.

PO 00000

Frm 00091

Fmt 4703

Sfmt 4703

participate in the Closing Auction is reasonably designed to remove impediments to and perfect the mechanism of a free and open market by promoting fair and orderly Closing Auctions on the Exchange, because precluding participation by Floor Broker Interest has enabled the exchange to hold DMM-facilitated electronic Closing Auctions more quickly after the 4:00
p.m. scheduled close of trading and because Floor brokers will remain able to participate in the Closing Auction through the use of Closing D Orders.38
For the reasons discussed above, the Commission finds that the proposed rule change, as modified by Amendment No. 2, is consistent with the requirements of the Act and in particular Section 6b5 because it is reasonably 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, and to remove impediments to and perfect the mechanism of a free and open market and a national market system.
V. Solicitation of Comments on Amendment No. 2 to the Proposed Rule Change Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether Amendment No. 2 is consistent with the Act. Comments may be submitted by any of the following methods:
Electronic Comments Use the Commissions internet comment form http www.sec.gov/
rules/sro.shtml; or Send an email to rule-comments@
sec.gov. Please include File Number SR
NYSE202095 on the subject line.
Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 205491090.
All submissions should refer to File Number SRNYSE202095. 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 Commissions 38 In fact, the Exchange represents that Floor broker participation in the Closing Auction has increased despite the absence of Floor Broker Interest, as compared to the level of Floor broker participation in the Closing Auction for February 2020.

E:FRFM29JYN1.SGM

29JYN1