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Federal Register / Vol. 86, No. 103 / Tuesday, June 1, 2021 / Notices to permit unfair discrimination between customers, issuers, brokers, or dealers.
In particular, the Exchange believes the proposed definitions of Derivative Security and UTP Derivative Security are reasonable as the proposed substantive changes are substantially similar to other exchanges rules.
Specifically, the proposed definition of Derivative Security in Rule 1.5dd is substantially similar to the definition of Exchange Traded Product provided for in NYSE National Rule 1.1m, except that it better conforms to the defined term new derivative securities product of Rule 19b4e under the Act. The proposed definition of UTP
Derivative Securities is substantially similar to UTP Exchange Traded Product provided under NYSE National Rule 1.1m, but includes two additional Derivative Securities, SEEDS and Exchange-Traded Fund Shares. While SEEDS and Exchange-Traded Fund Shares are not included in NYSE
National Rule 1.1m, they are Derivative Securities set forth not only in Exchange Rules 14.11e12 and 14.11l, respectively, but also in section 5700 of the Nasdaq Rules.
Eliminating the requirement to file a Form 19b4e for each Derivative Security is consistent with the Act because the regulatory requirement was not intended to apply in the context of Derivative Securities trading on a UTP
basis. Moreover, the proposal to eliminate Rule 14.11j1 will provide for a more efficient process for adding Derivative Securities to trading on the Exchange on a UTP basis. The Exchange also notes that the proposal is substantially identical to other exchange rules.11
The Exchange believes that its proposal to amend the preamble to Rule 14.11j to correspond to Rule 1.5ee and the proposed defined term UTP
Derivative Security will add clarity to the Exchanges Rules. Further, the Exchange believes that its proposal to amend the preamble to Rule 14.11j1
to reference the proposed term UTP
Derivative Security rather than new derivative securities product will conform the Rule to proposed Rule 1.5dd and will add clarity to the Exchanges Rules. Additionally, the proposal to add Eastern Time to the description of the Early Trading Session in proposed Rule 14.11j1 will consistently reference the applicable time zone throughout the paragraph.
The proposed amendment to proposed Rule 14.11j3 is identical to a sentence provided in NYSE National Rule 5.1a2C trading halts.
11 See
supra note 8.

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Furthermore, the proposal reinforces existing Exchange Rule 11.18d. Lastly, the Exchanges proposal to renumber existing paragraphs 14.11j2j6
based on its proposal to eliminate Rule 14.11j1 will clarify and simplify the Exchanges Rules.
The Exchange believes that its proposal to amend Rule 3.21 to reference the proposed definition of UTP Derivative Securities in Rule 1.5ee will add clarity to the Exchanges Rules.
In light of the above proposals, the Exchange has also proposed to renumber and re-letter certain paragraphs or subparagraphs of Rules 1.5 and 14.11 and update applicable rule references.
The proposal is intended to simplify and clarify the Exchanges Rules as it relates to UTP Derivative Securities, which the Exchange believes will 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. The Exchange believes that renumbering and re-lettering current Rules to correspond to the proposed changes will allow the Exchange to maintain a clear and organized rule structure, thus preventing investor confusion. For these reasons, the Exchange believes the proposed rule change is consistent with the requirements of Section 6b5 of the Act.
B. Self-Regulatory Organizations Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not designed to address any competitive issues but rather to harmonize certain Exchange Rules with those of other exchanges which will simplify and clarify the Exchanges Rules. The Exchange further believes that the proposed rule change would promote transparency on the Exchange, thus making the Exchanges rules easier to navigate.
C. Self-Regulatory Organizations Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change.

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III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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 19b3A of the Act 12 and Rule 19b 4f6 thereunder.13
A proposed rule change filed under Rule 19b4f6 14 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4f6iii,15 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay. Waiver of the operative delay would allow certain of the Exchanges rules to conform to equivalent rules on other exchanges, as discussed herein, and to make clarifying and technical changes. The Commission therefore believes that waiver of the 30day 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.16
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.
IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule 12 15

U.S.C. 78sb3A.
CFR 240.19b4f6. In addition, Rule 19b 4f6iii under the Act 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.
14 17 CFR 240.19b4f6.
15 17 CFR 240.19b4f6iii.
16 For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rules impact on efficiency, competition, and capital formation. See 15 U.S.C. 78cf.
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