Voglio sapere a riguardo di…

jbell on DSKJLSW7X2PROD with NOTICES2

Federal Register / Vol. 86, No. 129 / Friday, July 9, 2021 / Notices Proposed Rule 6.62POg2C
would specify rules governing QCC
Orders entered off-Floor and that OTP
Holders must maintain books and records demonstrating that each such order was so routed. This proposed rule is based on Commentary .02 to Rule 6.90O without any substantive differences.
To promote clarity, the Exchange proposes to amend Rule 6.90O to specify that the rule would not be applicable to trading on Pillar.
Orders Available Only in Open Outcry. The Exchange proposes to add to Rule 6.62POh orders that are available only in open outcry, most of which are currently defined in Rule 6.62O.
First, proposed Rule 6.62POh1
would codify an existing order type, the Clear-the-Book CTB Order, which is currently only described in a Regulatory Bulletin.42 The proposed definition would describe the CTB Order, which would be an order type available in open outcry that would interface with the Consolidated Book, and therefore with Pillar. As proposed, a CTB Order would be a Limit IOC Order that may be entered only by a Floor Broker, subsequent to executing an order in open outcry, that is approved by a Trading Official the TO Approval.
The CTB Order would be eligible to trade only with contra-side orders and quotes that were resting in the Consolidated Book prior to the TO
Approval. In addition, proposed Rule 6.62POh1AC would provide that:
A CTB Order to buy sell would trade with contra-side orders and quotes with a display price below above the limit price of the CTB Order proposed Rule 6.62POh1A;
A CTB Order to buy sell would trade with contra-side orders and quotes that have a display price and working price equal to the limit price of the CTB
Order only if there is displayed Customer sell buy interest at that price, in which case, the CTB Order to buy sell would trade with the displayed Customer interest to sell buy and any non-Customer interest to sell buy with a working time earlier than the latest-arriving displayed Customer interest to sell buy proposed Rule 6.62POh1B; and Any unexecuted portion of the CTB
Order would cancel after trading with all better-priced interest and eligible 42 See NYSE Arca Options RB1604, dated February 19, 2016 Rules of Priority and Order Protection in Open Outcry, available here: https
www.nyse.com/publicdocs/nyse/markets/arcaoptions/rule-interpretations/2016/
NYSE%20Arca%20Options%20RB%2016-04.pdf.

VerDate Sep<11>2014

20:01 Jul 08, 2021

Jkt 253001

same-priced interest on the Consolidated Book proposed Rule 6.62POh1C.
Currently, CTB Orders only trade with displayed Customer interest and any same-priced displayed non-Customer interest ranked ahead of such interest in time priority, but do not trade with better-priced displayed non-Customer interest. In Pillar, per Rule 6.62P
Oh1B, CTB Orders would trade with displayed non-Customer interest priced better than the latest-arriving displayed Customer interest i.e., a CTB
order buying with a $1.00 limit would now trade with any displayed interest offered at $0.99. The Exchange believes that this proposed change would increase execution opportunities and achieve the goal of a CTB Order, which is to clear priority on the Consolidated Book at the time of the TO Approval.
In addition, proposed Rule 6.62P
Oh1D would codify existing regulatory responsibilities of Floor Brokers utilizing CTB Orders to submit such orders in a timely manner after receiving TO Approval and would also provide that because CTB Orders are non-routable, Floor Brokers would be obligated to route orders to better-priced interest to Away Markets per Rule 6.94
O.43
The Exchange also proposes to include in Rule 6.62PO additional open outcry order types that are currently defined in Rule 6.62O:
Proposed Rule 6.62POh2 would define Facilitation Order and is based on the Rule 6.62Oj definition of Facilitation Order without any differences.
Proposed Rule 6.62POh3 would define Mid-Point Crossing Order and is based on the Rule 6.62Oq definition of Mid-Point Crossing Order without any differences.
Proposed Rule 6.62POh4 would define Not Held Order and is based on the Rule 6.62Of definition of Not Held Order without any differences.
Proposed Rule 6.62POh5 would define Single Stock Future SSF/
Option Order and is based on the Rule 6.62Oi definition of Single Stock Future SSF/Option Order without any differences.
Proposed Rule 6.62POh6A
would define a Stock/Option Order and is based on the Rule 6.62Oh1
definition of Stock/Option Order without any differences.
Proposed Rule 6.62POh6B and subparagraphs i and ii would define a Stock/Complex Order and is based on the Rule 6.62Oh2 definition of 43 See id. at p. 23 describing regulatory responsibilities related to CTB Orders.

PO 00000

Frm 00021

Fmt 4701

Sfmt 4703

36459

Stock/Complex Order with its subparagraphs without any differences.
The Exchange proposes that after the transition to Pillar, the following open outcry order types, which are currently described in Rule 6.62O but are not used by Floor Brokers, would not be added to proposed Rule 6.62PO
governing orders and modifiers: One cancels the other OCO Order and Stock Contingency Order.
Additional Order Instructions and Modifiers. The Exchange proposes to specify the additional order instructions and modifiers that would be available in Pillar in proposed Rule 6.62POi.
Proactive if Locked/Crossed Modifier.
Proposed Rule 6.62POi1 would provide that a Limit Order that is displayed and eligible to route and designated with a Proactive if Locked/
Crossed Modifier would route to an Away Market if the Away Market locks or crosses the display price of the order and that if any quantity of the routed order is returned unexecuted, the order would be displayed in the Consolidated Book. This would be new functionality for options trading on the Exchange and is based on the Proactive if Locked/
Crossed Modifier available on the Exchanges cash equity platform, as described in Rule 7.31Ei1 without any differences.
Self-Trade Prevention STP
Modifier. Self-Trade Prevention STP
Modifiers are currently defined in Commentary .01 to Rule 6.76AO and are available only for Market Maker orders and quotes. On Pillar, the Exchange proposes to expand the availability of STP to all orders and quotes. Because STP Modifiers are an instruction that can be added to an order or quote, the Exchange proposes that for Pillar, STP Modifiers would be described in proposed Rule 6.62P
Oi2. This is based on the structure of the Exchanges cash equity rules, which also describe the STP Modifier in Rule 7.31Ei.
Proposed Rule 6.62POi2 would provide that an Aggressing Order or Aggressing Quote to buy sell designated with one of the STP
modifiers in proposed Rule 6.62P
Oi2 would be prevented from trading with a resting order or quote to sell buy also designated with an STP
modifier from the same MPID, and, if specified, any sub-identifier of that MPID and that the STP modifier on the Aggressing Order or Aggressing Quote would control the interaction between two orders and/or quotes marked with STP modifiers. In addition, STP would not be applicable during an auction or to Cross Orders or when a Complex Order legs out. This proposed rule text
E:FRFM09JYN2.SGM

09JYN2