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Federal Register / Vol. 86, No. 129 / Friday, July 9, 2021 / Notices
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based on current Rule 6.1AOa3
without substantive changes.12
Customer and Professional Customer: The Exchange proposes to amend Rule 1.1 to add the definitions of Customer and Professional Customer. The proposed definitions are based on the definitions of Customer and Professional Customer set forth in Rule 6.1AOa4 and 4A with nonsubstantive differences only to specify that these definitions would be applicable for options traded on the Exchange, eliminate redundant headers, and re-number the sub-paragraphs. The Exchange also proposes to include a cross-reference to the definition of a broker or dealer as defined Sections 3a4 and 3a5 of the Exchange Act and rules thereunder.13 The Exchange believes that this specificity adds clarity and transparency to the proposed definition.
Lead Market Maker: The Exchange proposes to amend the Rule 1.1
definition of Lead Market Maker to add how that term would be used for options trading. As proposed, the new text would provide that for options traded on the Exchange, the term Lead Market Maker or LMM would mean a person that has been deemed qualified by the Exchange for the purpose of making transactions on the Exchange in accordance with Rule 6.82O. Each LMM must be registered with the Exchange as a Market Maker. Any OTP
Holder or OTP Firm registered as a Market Maker with the Exchange is eligible to be qualified as an LMM.
This proposed definition is based on the Rule 6.1AOa5 definition of Lead Market Maker without any differences.
Marketable: The Exchange proposes to amend the Rule 1.1 definition of Marketable to extend it to address options traded on the Exchange. The current description of the term Marketable for purposes of Market Orders is the same in both Rules 1.1 and 6.1AOa7. With respect to Limit Orders, in Rule 1.1, the term Marketable currently means an order that can be immediately executed or routed. The current Rule 6.1AOa7
definition of the term Marketable for Limit Orders means when the price of the order matches or crosses the NBBO
on the other side of the market. The current Rule 1.1 definition relating to 12 The Exchange does not propose to include text regarding trading that continues 15 minutes after the regular time set for the normal close of trading in the primary markets with respect to index options classes, as this is already addressed in Rule 5.20Oa Trading Sessions.
13 The Exchange does not propose to carry over the definition of Customer that is set forth in Rule 6.1Ob29 as unnecessary.

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Limit Orders means substantively the same thing as the Rule 6.1AOa7
description for Limit Orders, and the Exchange proposes using the existing Rule 1.1 definition of the term Marketable for both cash equity and options trading of Limit Orders. The Exchange also proposes a nonsubstantive amendment to add a comma after the phrase, the term Marketable means and before for a Limit Order.
Market Maker: The Exchange proposes to amend the Rule 1.1
definition of Market Maker to add how that term would be used for options trading. As proposed, the new text would provide that for options traded on the Exchange, the term Market Maker would refer to an OTP
Holder or OTP Firm that acts as a Market Maker pursuant to Rule 6.32
O. This proposed definition is based on the Rule 6.1AOa8 definition of Market Maker without any differences.
The Exchange also proposes to include in the definition of Market Maker that for purposes of the NYSE Arca rules, the term Market Maker includes Lead Market Makers, unless the context otherwise indicates. This proposed text is based on Rule 6.1Oc, References, without substantive differences. The Exchange believes this proposed change would streamline and clarify this definition.
Market Maker Authorized Trader:
The Exchange proposes to amend the Rule 1.1 definition of Market Maker Authorized Trader to add how that term would be used for options trading.
As proposed, the new text would provide that for options traded on the Exchange, the term Market Maker Authorized Trader or MMAT would mean an authorized trader who performs market making activities pursuant to Rule 6O on behalf of an OTP Firm or OTP Holder registered as a Market Maker. This proposed definition is based on the Rule 6.1A
Oa9 definition of Market Maker Authorized Trader without any differences.
Market Participant Identifier MPID: The Exchange proposes to add a new definition to Rule 1.1 for Market Participant Identifier MPID.
This term is currently used in Rules 7.19E and 7.31Ei2. Because this term would also be used for options trading, the Exchange believes that defining this term in Rule 1.1 would promote clarity and transparency. The proposed definition would provide that Market Participant Identifier or MPID refers to the identification numbers assigned to the orders and quotes of a single ETP Holder, OTP
Holder, or OTP Firm for the execution
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and clearing of trades on the Exchange by that permit holder. The definition would further provide that an ETP
Holder, OTP Holder, or OTP Firm may obtain multiple MPIDs and each such MPID may be associated with one or more sub-identifiers of that MPID.
Minimum Price Variation or MPV:
The Exchange proposes to amend Rule 1.1 to add the definition of Minimum Price Variation or MPV for both cash equity securities and options that are traded on the Exchange. The Exchange proposes that the term Minimum Price Variation or MPV means the minimum price variations established by the Exchange. The Exchange further proposes that the MPV for quoting cash equity securities traded on the Exchange are set forth in Rule 7.6E. The Exchange further proposes that the MPV
for quoting and trading options traded on the Exchange are set forth in Rule 6.72Oa. The proposed definition as it relates to options trading is based on the Rule 6.1AOa10 definition of MPV.
NBBO: The Exchange proposes to amend the Rule 1.1 definition of NBBO, Best Protected Bid, Best Protected Offer, Protected Best Bid and Offer PBBO to add how the term NBBO would be used for options trading. The Exchange proposes that:
with respect to options traded on the Exchange, the term NBBO means the national best bid or offer. The terms NBB means the national best bid and NBO means the national best offer.
This proposed definition is based on the Rule 6.1AOa11a definition of NBBO without any differences. In addition, unless otherwise specified, for options trading, the Exchange may adjust its calculation of the NBBO based on information about orders it sends to Away Markets, execution reports received from those Away Markets, and certain orders received by the Exchange.
This proposed text reflects how the Exchange currently calculates the NBBO
for options trading and is based on how the PBBO is calculated on the Exchanges cash equity market, as described in Rule 7.37Ed2.14 The Exchange proposes that it would adjust its calculation of the NBBO for options traded on the Exchange in the same manner that the Exchange calculates the PBBO for cash equity securities traded on the Exchange. The Exchange further notes that there are limited circumstances when the Exchange would not adjust its calculation of the 14 See Securities Exchange Act Release No. 91564
April 14, 2021, 86 FR 20541 April 20, 2021 SR
NYSEArca202121 Notice of filing and immediate effectiveness of proposed rule change to specify when the Exchange may adjust its calculation of the PBBO.

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