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Federal Register / Vol. 86, No. 129 / Friday, July 9, 2021 / Notices
is based on Commentary .01 to Rule 6.76A with non-substantive differences to use Pillar terminology.
Proposed Rule 6.62POi2 would further provide that if the condition for a Limit Order designated FOK, an AON
Order, or an order with an MTS
modifier cannot be met because of STP
modifiers, such order would either be cancelled or placed on the Consolidated Book, as applicable. This proposed rule text provides clarity that if a condition of an order cannot be met because of STP modifiers, the order would either cancel i.e., a Limit Order designated FOK, or be added to the Consolidated Book i.e., an AON Order or an order with an MTS modifier, and then such resting orders would function as described in Rule 6.62PO.
The proposed rule would further provide that Aggressing Orders or Aggressing Quotes would be processed as follows:
Proposed Rule 6.62POi2A
would describe STP Cancel Newest STPN and provide that an Aggressing Order or Aggressing Quote to buy sell marked with the STPN
modifier would not trade with resting interest to sell buy marked with any STP modifier from the same MPID; that the Aggressing Order or Aggressing Quote marked with the STPN modifier would be cancelled; and that the resting order or quote marked with one of the STP modifiers will remain on the Consolidated Book. This proposed rule is based on Commentary .01a to Rule 6.76AO with non-substantive differences to use Pillar terminology.
Proposed Rule 6.62POi2B
would describe STP Cancel Oldest STPO and provide that an Aggressing Order or Aggressing Quote to buy sell marked with the STPO
modifier would not trade with resting interest to sell buy marked with any STP modifier from the same MPID; that the resting order or quote marked with the STP modifier would be cancelled;
and that the Aggressing Order or Aggressing Quote marked with the STPO modifier would be placed on the Consolidated Book. This proposed rule is based on Commentary .01b to Rule 6.76AO with non-substantive differences to use Pillar terminology.
Proposed Rule 6.62POi2C
would describe STP Cancel Both STPC and provide that an Aggressing Order or Aggressing Quote to buy sell marked with the STPC
modifier would not trade with resting interest to sell buy marked with any STP modifier from the same MPID and that the entire size of both orders and/
or quotes would be cancelled. This proposed rule is based on Commentary
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.01c to Rule 6.76AO with nonsubstantive differences to use Pillar terminology.
Minimum Trade Size Modifier. The Exchange proposes to add the Minimum Trade Size MTS Modifier, which would be new functionality for options trading on Pillar that is based on the same functionality currently available for cash equity securities trading on Pillar, as described in Rule 7.31Ei3.
As with the MTS Modifier for cash equity trading, the proposed MTS
Modifier for options traded on Pillar would be available only for nondisplayed orders. Accordingly, proposed Rule 6.62POi3 would provide that a Limit IOC Order or NonDisplayed Limit Order may be designated with an MTS Modifier.44
Proposed Rule 6.62POi3A
would provide that the quantity of the MTS Modifier may be less than the order quantity; however, an order would be rejected if it has an MTS Modifier quantity that is larger than the size of the order. This proposed rule is based on Rule 7.31Ei3A with differences only to reflect that the concept of a round lot is not applicable for options trading.
Proposed Rule 6.62POi3B would provide that one of the following instructions must be specified with respect to whether an order to buy sell with an MTS Modifier would trade on arrival with: i Orders or quotes to sell buy in the Consolidated Book that in the aggregate meet such orders MTS; or ii only individual orders or quotes to sell buy in the Consolidated Book that each meets such orders MTS. This proposed rule is based on Rule 7.31
Ei3B and sub-paragraphs i and ii with only non-substantive differences to use options trading terminology e.g., Consolidated Book instead of NYSE
Arca Book and reference to quotes.
Otherwise, the functionality would be identical on both the options and cash equity trading platforms.
Proposed Rule 6.62POi3C would provide that an order with an MTS
Modifier that is designated Day or GTC
that cannot be executed immediately on arrival would not trade and would be ranked in the Consolidated Book. In such case, the order to buy sell with an MTS Modifier to buy sell that is ranked in the Consolidated Book would not be eligible to trade: i At a price equal to or above below any orders or quotes to sell buy that are displayed at 44 For cash equity trading, the MTS Modifier is also available for an MPL Order or Tracking Order, which are non-displayed order types available on the Exchanges cash equity trading platform that would not be available for options trading on Pillar.
See Rule 7.31Ei3.

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a price equal to or below above the working price of such order with an MTS Modifier; or ii at a price above below any orders or quotes to sell buy that are not displayed and that have a working price below above the working price of such order with an MTS Modifier. This proposed rule is based on Rule 7.31Ei3C and subparagraphs i and ii with only nonsubstantive differences to use options trading terminology and to reflect the availability of the GTC time-in-force modifier for Non-Displayed Limit Orders. Otherwise, the functionality would be identical on both the options and cash equity trading platforms.
Proposed Rule 6.62POi3D would provide that an order with an MTS
Modifier that is designated IOC and cannot be immediately executed would be cancelled. This proposed rule is based on Rule 7.31Ei3D without any differences and the functionality would be identical on both the options and cash equity trading platforms.
Proposed Rule 6.62POi3E would provide that a resting order to buy sell with an MTS Modifier would trade with individual orders and quotes to sell buy that each meet the MTS and that i if an Aggressing Order or Aggressing Quote to sell buy does not meet the MTS of the resting order to buy sell with an MTS Modifier, that Aggressing Order or Aggressing Quote would not trade with, and may trade, through such resting order with an MTS Modifier; and ii if a resting non-displayed order or quote to sell buy did not meet the MTS
of a same-priced resting order or quote to buy sell with an MTS Modifier, a subsequently arriving order or quote to sell buy that meets the MTS would trade before such resting non-displayed order or quote to sell buy at that price.
This proposed rule is based on Rule 7.31Ei3E and sub-paragraphs i and ii with only non-substantive differences to use options trading terminology. Otherwise, the functionality would be identical on both the options and cash equity trading platforms.
Proposed Rule 6.62POi3F would provide that a resting order with an MTS Modifier would be cancelled if it is traded in part or reduced in size and the remaining quantity is less than such orders MTS. This proposed rule is based on Rule 7.31Ei3F without any differences and the functionality would be identical on both the options and cash equity trading platforms.
In connection with proposed Rule 6.62PO, the Exchange proposes to add the following preamble to Rule 6.62O:
This Rule will not be applicable to trading on Pillar. This proposed
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