Voglio sapere a riguardo di…

jbell on DSKJLSW7X2PROD with NOTICES2

36444

Federal Register / Vol. 86, No. 129 / Friday, July 9, 2021 / Notices
NBBO, and would determine the NBBO
for options in the same way that the Exchange determines the NBBO for cash equity securities traded on the Exchange. As described in detail below, the Exchange will specify in its rules when it would be not be using an adjusted NBBO for purposes of a specific rule.
The Exchange further proposes that the term Away Market NBBO would refer to a calculation of the NBBO that excludes the Exchanges BBO.
NYSE Arca Book: The Exchange proposes to amend the Rule 1.1
definition of NYSE Arca Book to specify that this term is applicable only for cash equity securities traded on the Exchange. As noted above, the Exchange uses the term Consolidated Book for options traded on the Exchange.
NYSE Arca Marketplace: The Exchange proposes to amend the Rule 1.1 definition of NYSE Arca Marketplace to specify that this term is applicable only for cash equity securities traded on the Exchange.
Order Flow Provider or OFP: The Exchange proposes to add the definition of Order Flow Provider or OFP to Rule 1.1 to mean any OTP Holder that submits, as agent, orders to the Exchange. This proposed definition is based on the Rule 6.1AOa21
definition of Order Flow Provider without any differences.
Trading Center: The Exchange proposes to amend the Rule 1.1
definition of Trading Center to add how this term would be used for options trading. As proposed: with respect to options traded on the Exchange, for purposes of Rule 6O, the term Trading Center means a national securities exchange that has qualified for participation in the Options Clearing Corporation pursuant to the provisions of the rules of the Options Clearing Corporation. This proposed definition is based on the Rule 6.1AOa6
definition of Market Center with a non-substantive difference to use the term Trading Center instead of Market Center.
User: The Exchange proposes to amend the Rule 1.1 definition of User to add how this term would be used for options trading. As proposed: with respect to options traded on the Exchange, the term User shall mean any OTP Holder or OTP Firm who is authorized to obtain access to the Exchange pursuant to Rule 6.2AO.
This proposed definition is based on the Rule 6.1AOa19 definition of User with non-substantive differences to use Pillar terminology.
User Agreement: The Exchange proposes a non-substantive amendment
VerDate Sep<11>2014

20:01 Jul 08, 2021

Jkt 253001

to the Rule 1.1 definition of User Agreement to replace the term NYSE
Arca, L.L.C with the term the Exchange.
In addition to proposed amendments to Rule 1.1, the Exchange proposes to amend Rule 6.96O to add the definition of Routing Broker, which is currently defined in Rule 6.1AOa15.
For options trading on Pillar, the Exchange proposes to define the term in Rule 6.96O Operation of a Routing Broker to mean the broker-dealer affiliate of NYSE Arca, Inc. and any other non-affiliate that provides services for routing orders submitted to the Exchange to other Trading Facilities for execution whenever such routing is required by NYSE Arca Rules and federal securities laws. 15 The proposed rule text is based on the current definition in Rule 6.1A
Oa15, with non-substantive amendments to use Pillar terminology.
In connection with the proposed amendments to Rule 1.1, the Exchange proposes to add the following preamble to Rule 6.1AO: This Rule will not be applicable to trading on Pillar. This proposed preamble is designed to promote clarity and transparency in Exchange rules that Rule 6.1AO would not be applicable to trading on Pillar.
Proposed Rule 6.1PO: Applicability Current Rule 6.1O sets forth the applicability, definitions, and references in connection with options trading. As noted above, the definitions in Rule 6.1
Ob and reference to LMMs being included in the definition of Market Maker will be copied to proposed Rule 1.1 for purposes of trading on Pillar.
The Exchange proposes new Rule 6.1PO to include only those portions of Rule 6.1O relating to applicability of Exchange Rules that would continue to be applicable after the transition to Pillar. Proposed Rule 6.1POa would be based on current Rule 6.1Oa with differences that would streamline the proposed rule and reduce duplication of terms defined in Rule 1.1. Proposed Rule 6.1POb would be based in part on Rule 6.1Oe regarding the Applicability of Other Exchange Rules, with changes to eliminate obsolete and duplicative text and to clarify the proposed rule to provide that unless stated otherwise, Exchange Rules would be applicable to transactions on the Exchange in option contracts.
In connection with proposed Rule 6.1PO, the Exchange proposes to add 15 The Exchange also proposes non-substantive amendments to Rule 6.96O to renumber current paragraphs a, b, and c, as paragraphs b, c, and d.

PO 00000

Frm 00006

Fmt 4701

Sfmt 4703

the following preamble to Rule 6.1O:
This Rule will not be applicable to trading on Pillar. This proposed preamble is designed to promote clarity and transparency in Exchange rules that Rule 6.1O would not be applicable to trading on Pillar.
Proposed Rule 6.76PO: Order Ranking and Display Rule 6.76O governs order ranking and display for the current Exchange options trading system. Proposed Rule 6.76PO would address order ranking and display for options trading under Pillar.
With the transition to Pillar, the Exchange does not propose any substantive differences to how orders would be ranked and displayed on the Exchange. However, the Exchange proposes to eliminate the terminology relating to the Display Order Process and Working Order Process and instead use Pillar terminology based on Rule 7.36E, which governs order ranking and display on the Exchanges cash equity market. The Exchange proposes a difference between proposed Pillar options rules and the existing cash equity Pillar rules to reflect that, in addition to entering orders, Market Makers enter quotes on the options trading platform. Accordingly, when the cash equity rules refer to orders, the proposed options Pillar rules would refer to both orders and quotes.
As discussed in detail below, the Exchange believes that the proposed new rule text provides transparency with respect to how the Exchanges price-time priority model would operate through the use of new terminology applicable to all orders and quotes on the Pillar trading platform.
Proposed Rule 6.76POa would set forth definitions for purposes of all of Rule 6O Options Trading on the Pillar trading platform, including proposed Rule 6.76APO Order Execution and Routing, described below. The proposed definitions are based on Rule 7.36Ea definitions for purposes of Rule 7E cash equity trading, with differences, as noted above, to reference orders and quotes throughout proposed Rule 6.76PO. The Exchange believes that these proposed definitions would provide transparency regarding how the Exchange would operate its options platform on Pillar, and serve as the foundation for how orders and modifiers would be described for options trading on Pillar, as discussed in more detail below.
Proposed Rule 6.76POa1 would define the term display price to mean the price at which an order or quote ranked Priority 2Display Orders or
E:FRFM09JYN2.SGM

09JYN2