[Federal Register Volume 85, Number 174 (Tuesday, September 8, 2020)]
[Notices]
[Pages 55562-55566]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19714]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89723; File No. SR-NYSEAMER-2020-64]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing of Proposed Rule Change To Modify Rules 971.1NY and 971.2NY

September 1, 2020.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that, on August 19, 2020, NYSE American LLC (``NYSE American'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to modify Rules 971.1NY and 971.2NY regarding 
its Customer Best Execution (``CUBE'') auction to provide optional all-
or-none functionality for larger-sized orders. The proposed rule change 
is available on the

[[Page 55563]]

Exchange's website at www.nyse.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to expand its electronic crossing mechanism--
the CUBE Auction, to provide optional all-or-none (``AON'') \4\ 
functionality for ATP Holders to execute larger-sized orders (i.e., 500 
or more contracts) in both the Single-Leg and Complex CUBE Auctions 
(collectively, referred to herein as the ``CUBE Auction'' 
functionality).\5\ As proposed, a CUBE Order would execute in full at 
the single stop price against the Contra Order, unless RFR Responses 
that provide price improvement to the CUBE Order or customer interest 
that is priced equal to the CUBE Order, or both, can in the aggregate, 
satisfy the full quantity of the CUBE Order, in which case, the Contra 
Order would not receive an allocation.\6\
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    \4\ An All-or-None Order or AON Order is a ``Market or Limit 
Order that is to be executed on the Exchange in its entirety or not 
at all.'' See Rule 900.3NY(d)(4).
    \5\ See proposed Rules 971.1NY, Commentary .05 and 971.2NY, 
Commentary .04.
    \6\ Capitalized terms have the same meaning as the defined terms 
in Rules 971.1NY and 971.2NY. See Securities and Exchange Act 
Release Nos. 71655 (March 5, 2014) 79 FR 13711 (March 11, 2014) (SR-
NYSEMKT-2014-17) (the ``Single-Leg CUBE Notice''); 82802 (March 2, 
2018), 83 FR 9769 (March 7, 2018) (SR-NYSEAMER-2018-05) (the 
``Complex CUBE Notice'').
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Priority of Resting Customer Interest at Start of CUBE Auctions
    The CUBE Auction operates seamlessly with the Consolidated Book--
while still affording Single-Leg and Complex CUBE Orders an opportunity 
to receive price improvement.\7\ In the case of the Single-Leg CUBE, to 
assure that a CUBE Order does not execute ahead of Customer interest 
resting on the Book at the initiation of an Auction, the Exchange has 
established that the CUBE Order may only execute within a defined range 
of permissible executions, which range is based on a snapshot of the 
market at the initiation of the Auction.\8\ Specifically, for a CUBE 
Order to buy (sell) 50 or more contracts, the Auction begins with an 
``initiating price,'' which is the lower (higher) of the CUBE Order's 
limit price or the NBO (NBB); however, if there is Customer interest on 
the Book at the BB (BO), the lower (upper) bound of permissible 
executions is the higher (lower) of the BB plus one cent (BO minus one 
cent) or the NBB (NBO).\9\ This latter structure (when there is resting 
Customer interest) ensures that any Customer interest at the BB (BO) 
retains priority at that price, and is not circumvented by the interest 
in the CUBE Auction, including the CUBE Order. As discussed below, the 
proposed AON CUBE Order, which is 500 or more contracts, would be 
subject to the same requirements regarding how the range of permissible 
executions and initiating price of the CUBE Order would be determined, 
which are designed to honor the priority of Customer interest on the 
Book.
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    \7\ See Rule 900.2NY(14) (defining Consolidated Book (or 
``Book'') and providing that all quotes and orders ``that are 
entered into the Book will be ranked and maintained in accordance 
with the rules of priority as provided in Rule 964NY''). Rule 964NY 
(Display, Priority and Order Allocation--Trading Systems) dictates 
the priority of quotes and orders. The Exchange has integrated the 
Complex CUBE Auction into the Complex Matching Engine (or CME), 
which ensures that the Complex CUBE Auction respects the priority of 
interest in the Consolidated Book. See Rule 971.2NY(a).
    \8\ See generally Rule 971.1NY (for detailed description of 
operation of Single-Leg CUBE Auction). This proposal focuses solely 
on requirements of Single-Leg CUBE Order of 50 or more contracts 
because the proposed AON CUBE Order is for more than 50 contracts 
(i.e., at least 500). See, e.g., Rule 971.1NY(b)(1)(A) (regarding 50 
or more contracts), (B) (regarding pricing for CUBE Order of 50 or 
fewer contracts).
    \9\ See Rule 971.1NY(b)(1)(A). See supra note 6, Single-Leg CUBE 
Notice, 79 FR 13711, at 13713 (examples #1 and 2 setting forth the 
initiating price and range of permissible executions based on 
resting Customer interest at the BBO at the start of the Auction).
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    Once an Auction for a CUBE Order is commenced, such order is deemed 
executed (as it is guaranteed).\10\ However, to respect the priority of 
the Consolidated Book, the Auction for a CUBE Order ends early upon the 
arrival of certain price-improving interest--including Customer 
interest that improves the stop price.\11\
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    \10\ See Rule 971.1NY(b) (providing that ``[t]he time at which 
the Auction is initiated shall also be considered the time of 
execution for the CUBE Order . . .).
    \11\ See 971.1NY(c)(4) (setting forth the type of interest that 
causes the early end to a Single-Leg CUBE Auction).
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    In the case of Complex CUBE, the Exchange utilizes the concept of a 
CUBE BBO, which requires price improvement over resting interest to 
initiate a Complex CUBE Auction.\12\ Upon entry of a Complex CUBE Order 
in the System, the CUBE BBO is determined to be the more aggressive of 
(i) the Complex BBO improved by $0.01, or (ii) the Derived BBO improved 
by: $0.01 multiplied by the smallest leg of the complex order 
strategy.\13\ As with Single-Leg, a Complex CUBE Auction begins with an 
``initiating price,'' which for a Complex CUBE Order is the less 
aggressive of the net debit/credit price of such order or the price 
that locks the contra-side CUBE BBO and the range of permissible 
executions of a Complex CUBE Order is all prices equal to or between 
the initiating price and the same-side CUBE BBO.\14\ Thus, to initiate 
a Complex CUBE Auction, the Complex CUBE Order must be priced better 
than the interest resting on the Consolidated Book, i.e., the CUBE BBO, 
which ensures that price-time priority--including for Customer 
interest--is respected.\15\ As discussed below, the proposed AON 
Complex CUBE Order must likewise rely on the CUBE BBO to determine the 
initiating price and therefore honor Customer (and all other resting) 
interest.
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    \12\ See generally Rule 971.2NY and Commentary .02 
(definitions). See also Rule 900.2NY(7)(b),(c) (defining Complex BBO 
and Derived BBO). The ``same-side CUBE BBO'' and ``contra-side CUBE 
BBO'' refer to the CUBE BBO on the same or opposite side of the 
market as the Complex CUBE Order, respectively. See Rule 
971.2NY(a)(2).
    \13\ See Rule 971.2NY(a)(2). A complex order strategy is entered 
with the ratio expressed in the fewest number of contracts for each 
leg of the ratio. For a complex order strategy with a ratio of 2, 3, 
and 6 contracts per leg, the $0.01 figure would be multiplied by 2 
contracts, which represents the smallest leg. To calculate the CUBE 
BBO for this strategy, the Derived BBO would need to be priced 
improved by $0.02.
    \14\ See Rule 971.2NY(a)(2)-(4).
    \15\ See supra note 6, Complex CUBE Notice, 83 FR 9769, at 83 FR 
9772 (example illustrating the initiating price and range of 
permissible executions for a Complex CUBE Order per Rule 
971.2NY(a)(2)-(4)).
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    Like a Single-Leg CUBE Order, once an Auction for a Complex CUBE 
Order is commenced, such order is deemed executed (as it is 
guaranteed).\16\ As such, to respect the priority of the Consolidated 
Book, the Auction for a Complex CUBE Order ends early upon the arrival 
of certain price-improving

[[Page 55564]]

interest--including Customer interest that improves the stop price.\17\
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    \16\ See Rule 971.2NY(c) (providing that ``[t]he time at which 
the Auction is initiated will also be considered the time of 
execution for the Complex CUBE Order'').
    \17\ See 971.1NY(c)(3) (setting forth the type of interest that 
causes the early end to a Complex CUBE Auction).
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    The proposal to expand the current CUBE Auction functionality by 
providing an additional (optional) method for market participants to 
effect larger-sized orders in the CUBE Auction would likewise operate 
seamlessly with the Consolidated Book. The Exchange also believes this 
proposal would encourage ATP Holders to compete vigorously to provide 
the opportunity for price improvement for larger-sized orders in a 
competitive auction process, which may lead to enhanced liquidity and 
tighter markets.
Proposed AON CUBE Functionality
AON CUBE Order for Single-Leg CUBE
    The Exchange proposes to add new Commentary .05 to Rule 971.1NY to 
provide that a CUBE Order of at least 500 contracts would execute in 
full at the single stop price against the Contra Order, except under 
specified circumstances (the ``AON CUBE Order'').\18\ As further 
proposed, a Contra Order would not be permitted to guarantee an AON 
CUBE Order for auto-match or an auto-match limit, which features are 
otherwise available in a Single-Leg CUBE Auction.\19\
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    \18\ See proposed Commentary .05, Rule 971.1NY. See Rule 
971.1NY(c)(1)(A) (setting forth parameters for single stop price). 
An AON CUBE Order would be rejected for the same reasons as a CUBE 
Order (see Rule 971.1NY(b)(2)-(10)), except that the minimum size is 
500 contracts, as opposed to one contract, as set forth in Rule 
971.1NY(b)(8).
    \19\ See proposed Commentary .05, Rule 971.1NY. See also Rule 
971.1NY(c)(1)(B)-(C) (regarding parameters for auto-match and auto-
match limit price).
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    The initiating price and permissible range of executions for a 
proposed AON CUBE Order would be determined in the same manner as for a 
standard CUBE Order, which means it must improve the price of any 
resting Customer interest to maintain the priority of such resting 
interest at the start of the Auction.\20\ An AON CUBE Order Auction 
would also be subject to the same early end events as a Singe-Leg CUBE 
Order, including the arrival of Customer interest that improves the 
stop price.\21\
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    \20\ An AON CUBE Order and its paired Contra Order would be 
rejected if it failed to meet the pricing parameters. See Rule 
971.1NY(b) (regarding auction eligibility requirements). See supra 
note 9 (regarding examples in Single-Leg CUBE Notice setting forth 
the initiating price and range of permissible executions based on 
resting Customer interest at the BBO at the start of the Auction).
    \21\ See 971.1NY(c)(4) (setting forth the type of interest that 
causes the early end to an Single-Leg CUBE Auction).
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    As proposed, an AON CUBE Order to buy (sell) would not execute with 
the Contra Order if the entire AON CUBE Order can be satisfied in full 
by contra-side Customer interest at the stop price or contra-side 
interest that price improves the stop price, or both. To effect this, 
the Exchange proposes that paragraph (a) to Commentary .05 to Rule 
971.1NY would provide that the Contra Order would not receive an 
allocation if:

    (a) RFR Responses to sell (buy) at prices lower (higher) than 
the stop price or Customer interest to sell (buy) at a price equal 
to the stop price, or both, that in the aggregate can satisfy the 
full quantity of the AON CUBE Order, in which case, the RFR 
Responses will be allocated as provided for in paragraphs (c)(5)(A) 
and (c)(5)(B)(i) of this Rule, as applicable.\22\
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    \22\ See proposed Commentary .05, Rule 971.1NY(a).

    Thus, any Customer RFR Responses that equal the price of the AON 
CUBE Order may on its own or in combination with any non-Customer RFR 
Responses that improve the price of the AON CUBE Order, execute against 
the AON CUBE Order, provided that the size contingency of the order is 
met. The Exchange believes that providing RFR Responses an opportunity 
for an allocation in these specified circumstances is consistent with 
the Exchange's priority rules that give priority first to customer 
orders, and second to orders that provide price improvement.\23\
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    \23\ See Rule 971.1NY (c)(5)(A) (providing Customer interest 
first priority to trade with the CUBE Order, pursuant to the size 
pro rata algorithm set forth in Rule 964NY(b)(3) at each price 
point) and (c)(5)(B)(i) (providing that, second to Customer 
interest, RFR Responses priced below (above) the stop price, 
beginning with the lowest (highest) price within the range of 
permissible executions will execute with the CUBE Order, pursuant to 
the size pro rata algorithm set forth in Rule 964NY(b)(3) at each 
price point).
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    As further proposed, if RFR Responses and Customer interest to sell 
(buy) do not meet the requirements of proposed Commentary .05(a) to 
Rule 971.1NY, RFR Responses would not receive an allocation in the 
Auction for the AON CUBE Order. The Exchange believes that this 
proposal is consistent with the terms of how AONs function generally 
without violating the Exchange's general priority rules.\24\
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    \24\ See Rule 964NY (regarding order ranking and priority).
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    With respect to allocation, the Exchange notes that the proposed 
functionality differs from the allocation of a standard Single-Leg CUBE 
Order in that the Contra Order is not guaranteed a minimum allocation 
at the stop price. Instead, given the AON nature of the functionality, 
the Contra Order either trades with the entire AON CUBE Order or not at 
all.\25\
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    \25\ See Rule 971.1NY(c)(5)(B)(i)(b) (providing that, ``if there 
is sufficient size of the CUBE Order still available after executing 
at better prices or against Customer interest, the Contra Order 
shall receive additional contracts required to achieve an allocation 
of the greater of 40% of the original CUBE Order size or one 
contract (or the greater of 50% of the original CUBE Order size or 
one contract if there is only one RFR Response)'').
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    With the exception of differences to the minimum size and 
allocation described in proposed Commentary .05 to Rule 971.1NY, an AON 
CUBE Order would otherwise be subject to Rule 971.1NY with respect to 
all other aspects of the CUBE Auction functionality.
AON Complex CUBE Order for Complex CUBE \26\
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    \26\ See generally Rule 971.2NY (for detailed description of 
operation of Complex CUBE Auction).
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    The Exchange also proposes to adopt substantially similar rule text 
to likewise offer ATP Holders the option of executing larger-sized 
orders in the Complex CUBE Auction. Specifically, as proposed, 
Commentary .04 to Rule 971.2NY would provide that a Complex CUBE Order 
Auction of at least 500 contracts would execute in full at the single 
stop price against the Complex Contra Order under specified 
circumstances (the ``AON Complex CUBE Order'').\27\ As further 
proposed, a Complex Contra Order would not be permitted to guarantee an 
AON Complex CUBE Order for auto-match limit, which feature is otherwise 
available in a Complex CUBE Auction.\28\
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    \27\ See also proposed Commentary .04, Rule 971.2NY. See Rule 
971.2NY(b)(1)(A) (setting forth parameters for single stop price). 
An AON Complex CUBE Order would be rejected for the same reasons as 
a Complex CUBE Order (see Rule 971.2NY(b)(2)-(5)).
    \28\ See Rule 971.2NY(b)(1)(B) (regarding parameters for auto-
match limit price).
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    The CUBE BBO for a proposed AON Complex CUBE Order would be 
determined in the same manner as for a Complex CUBE Order, which means 
an AON Complex CUBE Order would ensure the priority of such resting 
interest at the start of the Auction.\29\ An AON Complex CUBE Order 
Auction would also be subject to the same early end events as a Complex 
CUBE Order, including the arrival of Customer interest that improves 
the stop price.\30\
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    \29\ A Complex AON CUBE Order and its paired Complex Contra 
Order would be rejected if it failed to meet the pricing parameters. 
See Rule 971.2NY(b) (regarding auction eligibility requirements). 
See supra note 15 (regarding example in Complex CUBE Notice setting 
forth the initiating price and range of permissible executions based 
CUBE BBO).
    \30\ See 971.1NY(c)(3) (setting forth the type of interest that 
causes the early end to a Complex CUBE Auction).

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[[Page 55565]]

    As proposed, an AON Complex CUBE Order to buy (sell) would not 
execute in full with the Complex Contra Order if the entire AON Complex 
CUBE Order can be satisfied in full by contra-side Customer interest at 
the stop price or RFR Responses that price improve the stop price, or 
both. To effect this, the Exchange proposes that paragraph (a) to 
Commentary .04 to Rule 971.2NY would provide that the Complex Contra 
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Order would not receive an allocation if:

    (a) RFR Responses to sell (buy) at prices more aggressive than 
the stop price or Customer interest to sell (buy) at a price equal 
to the stop price, or both, that in the aggregate can satisfy the 
full quantity of the AON Complex CUBE Order, in which case, the RFR 
Responses will be allocated as provided for in paragraphs (c)(4)(A) 
and (c)(4)(B)(i) of this Rule, as applicable.\31\
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    \31\ See proposed Commentary .04, Rule 971.2NY(a).

    Thus, any Customer RFR Responses that equal the price of the AON 
Complex CUBE Order may on its own or in combination with any non-
Customer RFR Responses that improve the price of the AON CUBE Order, 
execute against the AON Complex CUBE Order provided that the size 
contingency of the order is met. The Exchange believes that providing 
RFR Responses an opportunity for an allocation in these specified 
circumstances is consistent with the Exchange's priority rules that 
give priority first to customer orders, and second to orders that 
provide price improvement.\32\
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    \32\ See also Rule 971.2NY (c)(4)(A) (providing Customer 
interest first priority to trade with the Complex CUBE Order, at 
each price level, pursuant to the size pro rata algorithm set forth 
in Rule 964NY(b)(3) at each price point) and (c)(4)(B)(i) (providing 
that, second to Customer interest, RFR Responses priced below 
(above) the stop price, beginning with the lowest (highest) price 
within the range of permissible executions will execute with the 
Complex CUBE Order, pursuant to the size pro rata algorithm set 
forth in Rule 964NY(b)(3) at each price point).
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    As further proposed, if RFR Responses and Customer interest to sell 
(buy) do not meet the requirements of proposed Commentary .04(a) to 
Rule 971.2NY, RFR Responses would not receive an allocation in the 
Auction for the AON Complex CUBE Order. The Exchange believes that this 
proposal is consistent with the terms of how AONs function generally 
without violating the Exchange's general priority rules.\33\
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    \33\ See Rule 980NY(b) (``Priority of Electronic Complex Orders 
in the Consolidated Book''). See also Rule 971.2NY (regarding 
processing of Complex CUBE Orders per Rule 980NY).
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    With respect to allocation, the Exchange notes that the proposed 
functionality differs from the allocation of a standard Complex CUBE 
Order in that the Complex Contra Order is not guaranteed a minimum 
allocation at the stop price. Instead, given the AON nature of the 
functionality, the Complex Contra Order either trades with the entire 
AON Complex CUBE Order or not at all.\34\
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    \34\ See Rule 971.2NY(c)(4)(B)(i)(b) (providing that, ``[a]t the 
stop price, if there is sufficient size of the Complex CUBE Order 
still available after executing at prices better than the stop price 
or against Customer interest, the Complex Contra Order will receive 
an allocation of the greater of 40% of the original Complex CUBE 
Order size or one contract (or the greater of 50% of the original 
Complex CUBE Order size or one contract if there is only one RFR 
Response)'').
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    With the exception of differences to the minimum size and 
allocation described in proposed Commentary .04 to Rule 971.2NY, an AON 
Complex CUBE Order would otherwise be subject to Rule 971.2NY with 
respect to all other aspects of the Complex CUBE Auction functionality.
Implementation
    The Exchange will announce the implementation date of the proposed 
rule change in a Trader Update following the approval of this proposed 
rule change.
2. Statutory Basis
    For the reasons set forth above, the Exchange believes the proposed 
rule change is consistent with Section 6(b) of the Act in general, and 
furthers the objectives of Section 6(b)(5) of the Act, in that it is 
designed to promote just and equitable principles of trade, remove 
impediments to and perfect the mechanisms of a free and open market and 
a national market system and, in general, to protect investors and the 
public interest.
    The proposed functionality is intended to benefit investors, 
because it is designed to provide investors seeking to execute large 
option orders in the CUBE Auction with greater certainty regarding the 
price at which the order would be executed. This proposal would remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system because it would provide ATP Holders that 
locate liquidity for their customers' larger-sized orders a facility in 
which to execute those orders at the agreed-upon price, while also 
providing an opportunity for such orders to be price improved if the 
full quantity can be price improved. The Exchange believes the proposed 
functionality would promote and foster competition and provide more 
options contracts with the opportunity for price improvement.
    The Exchange believes that the proposed functionality would provide 
more efficient transactions, reduce execution risk to ATP Holders, and 
afford greater execution opportunities for larger-sized orders. The 
proposed functionality would operate within the Single-Leg CUBE and 
Complex CUBE (including by integrating Complex CUBE into the Complex 
Matching Engine, per Rule 971.2NY(a)) such that--because of the 
existing price-improvement requirements to initiate the respective CUBE 
Auctions that would be applicable to an AON CUBE Order or AON Complex 
CUBE Order--the Exchange is able to assure that the proposed 
functionality would continue to respect the priority of interest, in 
particular Customer interest, resting on the Consolidated Book when an 
Auction commences.
    Further, the proposed functionality is reasonable and promotes a 
fair and orderly market and national market system, because it is 
substantially similar to the price improvement mechanisms for larger-
sized orders available on other options exchanges. The Exchange 
believes this proposal may lead to an increase in Exchange volume and 
should allow the Exchange to better compete against other markets that 
already offer an all-or-none electronic solicitation mechanism for 
larger-sized orders. The Exchange believes that its proposal would 
allow the Exchange to better compete for solicited transactions, while 
providing an opportunity for price improvement on the larger-sized 
orders. In addition, the proposed functionality should promote and 
foster competition and provide more options contracts with the 
opportunity for price improvement, which should benefit market 
participants.

B. Self-Regulatory Organization's 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 Exchange is proposing 
the functionality as an optional market enhancement that, if utilized, 
should increase competition for ATP Holders seeking to execute larger-
sized orders in an electronic auction mechanism. The Exchange notes 
that other options exchanges offer electronic auction mechanisms for 
larger-sized orders on an AON basis. While the Exchange has not 
conducted a comparison of the proposed functionality to the mechanisms 
that are available on other exchanges, the Exchange nonetheless 
believes the

[[Page 55566]]

proposed functionality would provide ATP Holders with a greater choice 
of exchanges from which to execute such orders. The proposal is 
structured to offer the same enhancement to all market participants and 
would not impose an intra-market competitive burden on any participant. 
The price improvement functionality for the AON functionality for both 
Single-Leg and CUBE Auctions are designed to promote competition for 
ATP Holders to compete amongst each other by responding with not only 
their best price, but also the full size for a particular auction.
    The Exchange notes that it operates in a highly competitive market 
in which market participants can readily direct order flow to competing 
venues who offer similar functionality. The Exchange believes that the 
proposed rule change will relieve any burden on, or otherwise promote, 
competition. The Exchange believes this proposed rule change is 
necessary to permit fair competition among the options exchanges and to 
establish more uniform price improvement auction rules on the various 
options exchanges. The proposed functionality may lead to an increase 
in Exchange volume and should allow the Exchange to better compete 
against other markets that already offer similar price improvement 
mechanisms for larger-sized orders. The Exchange anticipates that this 
proposal will create new opportunities for the Exchange to attract new 
business and compete on equal footing with those options exchanges that 
offer auction AON functionality for larger-sized orders and for this 
reason the proposal does not create an undue burden on intermarket 
competition. By contrast, not having the proposed functionality places 
the Exchange at a competitive disadvantage vis-[agrave]-vis other 
exchanges that offer similar price improvement mechanisms for larger-
sized orders.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 45 days of the date of publication of this notice in the 
Federal Register or up to 90 days (i) as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or (ii) as to which the self-regulatory 
organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NYSEAMER-2020-64 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEAMER-2020-64. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549, on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSEAMER-2020-64, and should be 
submitted on or before September 29, 2020.
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    \35\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\35\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-19714 Filed 9-4-20; 8:45 am]
BILLING CODE 8011-01-P


