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Federal Register / Vol. 86, No. 129 / Friday, July 9, 2021 / Notices
Purchase Transaction, Closing Sale Transaction, Opening Purchase Transaction, and Opening Writing Transaction without any substantive differences.
The Exchange proposes to revise the definition of Electronic Order Capture System to eliminate reference to the Commissions order Instituting Public Administrative Proceedings Pursuant to Section 19h1 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 proposes to streamline the definition of Expiration Date 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 Rule 1.1
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.
The Exchange proposes to add to the definition of option contract that option contracts would include within the definition of security or securities as such terms are used in the Bylaws and Rules of the Exchange.
This proposed text is copied from the last sentence of current Rule 6.1Oa.
As described below, proposed Rule 6.1PO would not include this text.
The Exchange proposes to amend the definition of option issue to mean the security underlying a class of options.
The Exchange proposes to streamline the definition of outstanding without any substantive differences.
The Exchange proposes to use the term underlying security rather than referring separately to an underlying stock or Exchange-Traded Fund Share, as an Exchange-Traded Fund Share is a security as that term is defined in Rule 1.1 and is also an NMS stock.

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Second, definitions set forth in Rule 6.1AOa would be moved and added to Rule 1.1 in alphabetical order without any substantive differences.10 Because certain of these definitions are already set forth in Rule 1.1 for cash equity trading, the Exchange proposes to amend those existing definitions to specify that they would be applicable to options trading, and if applicable, set forth differences for options trading, as described in more detail below. The Exchange does not propose to move the definition of Directed Order Market Maker to Rule 1.1 because in Pillar, the Exchange would no longer support Directed Order Market Makers. In addition, the Exchange does not propose to move the definitions of Complex BBO or Complex NBBO to Rule 1.1, and instead will be proposing to define those terms in a separate proposed rule change relating to electronic complex trading. As noted above, the terms OX
and OX Book will not be used in Pillar rules.
Finally, in addition to definitions that are being moved without any substantive changes, the Exchange proposes the following specific changes to Rule 1.1 definitions: 11
Approved Person: The Exchange proposes a non-substantive amendment to change the word a to an before OTP Firm.
Authorized Trader: The Exchange proposes to amend the Rule 1.1
definition of Authorized Trader to remove the limitation to equities trading so that it is applicable to both cash equity securities and options traded on the Exchange, and to add that it can mean a person who may submit orders to the Exchanges Trading Facilities on behalf of his or her OTP Holder. These proposed amendments combine the definition of Authorized Trader currently set forth in Rule 6.1AOa1
with the existing Rule 1.1 definition of Authorized Trader without any substantive differences.
Away Market: The Exchange proposes to amend the Rule 1.1
definition of Away Market to add how that term would be used for options trading on the Exchange. As proposed, the new text would provide:
10 Rule 6.1AOa has definitions for: Authorized Trader, BBO, Complex BBO, Core Trading Hours, Customer, Professional Customer, Lead Market Maker, Market Center, Marketable, Market Maker, Market Maker Authorized Trader, Minimum Price Variation, NBBO, Complex NBBO, NOW Recipient, OX, OX Book, Routing Broker, Sponsored Participant, Sponsoring OTP Firm, Sponsorship Provisions, User, Directed Order Market Maker, and Order Flow Provider.
11 The Exchange also proposes a non-substantive amendment to the definition of Exchange to add a period at the end of the sentence.

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with respect to options traded on the Exchange, the term Away Market means any Trading Center 1 with which the Exchange maintains an electronic linkage, and 2 that provides instantaneous responses to orders routed from the Exchange. This proposed definition is based on the Rule 6.1AOa12 definition of NOW
Recipient with only a non-substantive difference to use the Pillar term of Away Market instead of the term NOW Recipient. The Exchange does not include in this definition reference to designating and publishing to its website certain Away Markets because such markets are by definition those with which the Exchange maintains electronic linkage i.e., pursuant to the Options Order Protection and Locked/
Crossed Market Plan.
BBO: The Exchange proposes to amend the Rule 1.1 definition of BBO
to add how that term would be used for options trading on the Exchange. As proposed, with respect to options traded on the Exchange, BBO would mean the best displayed bid or best displayed offer on the Exchange. This definition is based on the Rule 6.1AOa2a definition of BBO without any substantive differences.
Consolidated Book: The term Consolidated Book is currently defined in Rule 6.1Ob37 and the term OX Book is currently defined in Rule 6.1AOa14. For Pillar, the Exchange proposes to define the term Consolidated Book based on both of those existing definitions and would provide that for options traded on the Exchange, the term Consolidated Book would mean the Exchanges electronic book of orders and quotes and that all orders and quotes that are entered into the Consolidated Book would be ranked and maintained in accordance with the rules of priority, as provided for in proposed Rule 6.76PO.
This proposed definition is also similar to the existing Rule 1.1 definition of NYSE Arca Book, which would be amended to specify that the definition would only be for cash equity securities traded on the Exchange.
Core Trading Hours: The definition of Core Trading Hours would be applicable to both cash equity securities and options trading on the Exchange.
Because options trading may extend past 4:00 p.m., the Exchange proposes to amend the Rule 1.1 to provide that for options traded on the Exchange, transactions may be effected on the Exchange for an equity options class until close of trading of the primary market for the securities underlying an options class. This proposed text is
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