[Federal Register Volume 84, Number 208 (Monday, October 28, 2019)]
[Notices]
[Pages 57789-57793]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23427]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87382; File No. SR-NYSEArca-2019-04]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Amendment No. 3 and Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified by Amendment No. 3, To Amend NYSE
Arca Rule 5.2-E(j)(3) To Adopt Generic Listing Standards for Investment
Company Units Based on an Index or Portfolio of Municipal Securities
October 22, 2019.
I. Introduction
On February 8, 2019, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (the ``Act'' or the ``Exchange Act'') \1\ and Rule
19b-4 thereunder,\2\ a proposed rule change to adopt generic listing
standards for Investment Company Units (``Units'') based on an index or
portfolio of municipal securities. The proposed rule change was
published for comment in the Federal Register on February 27, 2019.\3\
On April 9, 2019, pursuant to Section 19(b)(2) of the Exchange Act,\4\
the Commission designated a longer period within which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether to disapprove the proposed rule
change.\5\ On May 28, 2019, the Commission instituted proceedings under
Section 19(b)(2)(B) of the Exchange Act \6\ to determine whether to
approve or disapprove the proposed rule change.\7\
[[Page 57790]]
On August 13, 2019, the Commission further extended the period for
consideration of the proposed rule change to October 25, 2019.\8\ On
September 27, 2019, NYSE Arca filed Amendment No. 1 to the proposed
rule change, which replaced and superseded the proposed rule change as
originally filed.\9\ On October 2, 2019, NYSE Arca filed Amendment No.
2 to the proposed rule change, which replaced and superseded the
proposed rule change as modified by Amendment No. 1.\10\ On October 10,
2019, the Exchange filed Amendment No. 3 to the proposed rule change,
which replaced and superseded the proposed rule change as modified by
Amendment No. 2.\11\ The Commission has received no comments on the
proposal.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 85170 (Feb. 21,
2019), 84 FR 6451.
\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 85573, 84 FR 15239
(Apr. 15, 2019). The Commission designated May 28, 2019, as the date
by which it should approve, disapprove, or institute proceedings to
determine whether to disapprove the proposed rule change.
\6\ 15 U.S.C. 78s(b)(2)(B).
\7\ See Securities Exchange Act Release No. 85946, 84 FR 25599
(June 3, 2019).
\8\ See Securities Exchange Act Release No. 86643, 84 FR 42963
(Aug. 19, 2019).
\9\ Amendment No. 1 is available at: https://www.sec.gov/comments/sr-nysearca-2019-04/srnysearca201904-6224879-192613.pdf.
\10\ Amendment No. 2 is available at: https://www.sec.gov/comments/sr-nysearca-2019-04/srnysearca201904-6245350-192767.pdf.
\11\ In Amendment No. 3, the Exchange: (1) Clarified that its
proposed requirement that an underlying index or portfolio must
include a minimum of 13 ``non-affiliated'' issuers means a minimum
of 13 ``unique'' issuers; (2) corrected the numbering of one
provision of the proposed rule text; (3) made a conforming change
within Commentary .03 to NYSE Arca Rule 5.2-E(j)(3); (4) prohibited
its listing of Units issued by an open-end management investment
company that seeks to provide investment results, before fees and
expenses, in an amount that exceeds -300% of the percentage
performance on a given day of an index of Municipal Securities (as
defined below); and (5) conformed its description of the scope of
Commentary .03 to NYSE Arca Rule 5.2-E(j)(3) to the rule text.
Amendment No. 3 is available at: https://www.sec.gov/comments/sr-nysearca-2019-04/srnysearca201904-6283314-193347.pdf.
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The Commission is publishing this notice and order to solicit
comments from interested persons on the proposed rule change, as
modified by Amendment No. 3, and is approving the proposed rule change,
as modified by Amendment No. 3, on an accelerated basis.
II. Description of the Proposed Rule Change, as Modified by Amendment
No. 3 12
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\12\ For a full description of the proposed rule change, see
Amendment No. 3, supra note 11.
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NYSE Arca Rule 5.2-E(j)(3) permits the Exchange to list a series of
Units based on an index or portfolio of underlying securities.
Currently, NYSE Arca Rule 5.2-E(j)(3) includes generic listing
standards for Units based on an index or portfolio of equity or fixed
income securities or a combination thereof.
Municipal Securities \13\ are a type of fixed income security, and
therefore currently the Exchange may generically list and trade Units
overlying an index or portfolio of Municipal Securities that satisfies
the criteria of Commentary .02 to NYSE Arca Rule 5.2-E(j)(3). According
to the Exchange, however, indexes and portfolios of Municipal
Securities typically do not satisfy one of those requirements--namely,
that components comprising at least 75% of the Fixed Income Securities
\14\ portion of the weight of the index or portfolio each shall have a
minimum original principal amount outstanding of $100 million or
more.\15\ The Exchange states that Municipal Securities are generally
issued with individual maturities of relatively small size, although
they generally are constituents of a much larger municipal bond
offering.\16\
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\13\ The proposed rule defines the term ``Municipal Securities''
by incorporating the definition in Section 3(a)(29) of the Act. See
Amendment No. 3, supra note 11, at 4 n.4.
\14\ ``Fixed Income Securities'' are defined in Commentary .02
to NYSE Arca Rule 5.2-E(j)(3).
\15\ See Amendment No. 3, supra note 11, at 4 n.5.
\16\ See Amendment No. 3, supra note 11, at 4 n.5.
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A. Proposed Commentary .02A to NYSE Arca Rule 5.2-E(j)(3)
1. Applicability
Proposed Commentary .02A to NYSE Arca Rule 5.2-E(j)(3) provides
generic listing standards for Units based on an index or portfolio
comprised solely of Municipal Securities or Municipal Securities and
cash. Because the current Commentary .02 to NYSE Arca Rule 5.2-E(j)(3)
also applies to Units based on an index or portfolio of Municipal
Securities, the Exchange represents that it would apply existing
Commentary .02 and proposed Commentary .02A in a ``waterfall''
manner.\17\ Initially, the Exchange would evaluate the eligibility of a
series of Units based on an index or portfolio of Municipal Securities
(or Municipal Securities and cash) for listing pursuant to the generic
listing standards of Commentary .02; if the underlying index or
portfolio satisfies those criteria, the Exchange would list and trade
the Units pursuant to that rule.\18\ If, however, Units whose
underlying index or portfolio of Municipal Securities does not satisfy
all of the requirements of Commentary .02, the Exchange would apply
proposed Commentary .02A.\19\
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\17\ See id. at 5.
\18\ See id. at 5-6.
\19\ See proposed Commentary .02A to NYSE Arca Rule 5.2-E(j)(3).
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2. Proposed Generic Listing Standards
The Exchange states that Commentary .02A to NYSE Arca Rule 5.2-
E(j)(3) includes many requirements that are more stringent than those
applicable to an index or portfolio of fixed-income securities and
cash. These heightened requirements, according to the Exchange, would
deter potential manipulation of such Municipal Securities indices, even
though the index or portfolio may include securities that have smaller
original principal amounts outstanding than required under the existing
Commentary .02 to NYSE Arca Rule 5.2-E(j)(3). The proposed quantitative
requirements described below would apply on both an initial and
continued basis to a Municipal Securities index or portfolio underlying
a series of Units.
a. Original Principal Amount Outstanding
As mentioned above, according to the Exchange, Municipal Securities
are typically issued with individual maturities of relatively small
size, although they generally are constituents of a much larger
municipal bond offering.\20\ In recognition of these smaller offering
sizes, the Exchange proposes to reduce the minimum original principal
amount outstanding requirement for component securities from at least
$100 million to at least $5 million.\21\ The Exchange also proposes
that qualifying securities must be issued as part of a transaction of
at least $20 million.\22\ Lastly, the Exchange proposes to increase the
percentage weight of an index or portfolio that must satisfy the
original principal amount outstanding requirement from 75% to 90%.\23\
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\20\ See supra note 16 and accompanying text.
\21\ See Amendment No. 3, supra note 11, at 6.
\22\ See id.
\23\ See id.
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The Exchange asserts that reducing the minimum original principal
amount outstanding requirement for component securities will not make
an index or portfolio more susceptible to manipulation.\24\ The
Exchange believes that its proposal to require that 90% of the weight
of a Municipal Securities index or portfolio meet the original
principal amount outstanding requirement (as opposed to 75% for fixed-
income indices) will deter potential manipulation by ensuring that a
greater portion of the index or portfolio meet this minimum size
requirement.\25\ The Exchange also notes that the Commission previously
approved the listing and trading of Units where components comprising
at least 90% of the weight of the underlying index have a minimum
original principal amount outstanding of at least $5 million and are
issued as
[[Page 57791]]
part of a transaction of at least $20 million.\26\
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\24\ See id. at 7.
\25\ See id. at 7-8.
\26\ See, e.g., Securities Exchange Act Release No. 84049 (Sep.
6, 2018), 83 FR 46228 (Sep. 12, 2018) (SR-NYSEArca-2018-38) (order
approving, among other things, revisions to the continued listing
criteria applicable to the iShares New York AMT-Free Muni Bond ETF).
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b. Component Concentration
The Exchange proposes to reduce the maximum weight that any
individual Municipal Security, and a group of five Municipal
Securities, may comprise in a Municipal Securities index or
portfolio.\27\ The current generic listing standards for Units based on
a fixed-income index or portfolio permit individual component
securities to account for up to 30% of the weight of such index or
portfolio and the top-five weighted component securities to account for
up to 65% of the weight of such index or portfolio.\28\ The Exchange
proposes to reduce these thresholds to 10% for individual Municipal
Securities and 30% for the five most heavily-weighted Municipal
Securities in an index or portfolio.\29\ The Exchange believes that
this requirement will reduce the susceptibility to manipulation of a
Municipal Securities index or portfolio underlying a series of
Units.\30\
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\27\ See Amendment No. 3, supra note 11, at 8.
\28\ See id.
\29\ See id.
\30\ See id.
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c. Issuer Diversification
The current generic listing standards for Units based on an index
or portfolio of Fixed Income Securities do not include an issuer
diversification requirement for indices comprised solely of Municipal
Securities.\31\
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\31\ Commentary .02(a)(5) to NYSE Arca Rule 5.2-E(j)(3) provides
that an index or portfolio--other than one consisting entirely of
exempted securities--must include securities from at least 13 non-
affiliated issuers. Municipal Securities are included in the
definition of exempted securities. Accordingly, the requirement
related to 13 non-affiliated issuers does not apply to Municipal
Securities. See Section 3(a)(12) of the Act.
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The Exchange proposes a generic listing criterion that would
require an index or portfolio of Municipal Securities or Municipal
Securities and cash to include securities from at least 13 unique
issuers.\32\ The Exchange states that requiring such diversification
will reduce the likelihood that an index or portfolio may be
manipulated by ensuring that securities from a variety of issuers are
represented in an index or portfolio of Municipal Securities.\33\
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\32\ See Amendment No. 3, supra note 11, at 9.
\33\ See id.
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d. Minimum Number of Components
The current generic listing standards applicable to an index or
portfolio of Fixed Income Securities do not require a minimum number of
components.\34\ In the proposed Commentary .02A to NYSE Arca Rule 5.2-
E(j)(3), the Exchange proposes to require that an index or portfolio of
Municipal Securities contain at least 500 component securities.\35\ The
Exchange asserts that this proposed requirement will ensure that a
Municipal Securities index or portfolio would be sufficiently broad-
based and diversified to make it less susceptible to manipulation.\36\
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\34\ See id.
\35\ See id.
\36\ See id. at 10.
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e. Listing of Units With Inverse Leveraged Exposure to an Index of
Municipal Securities
Consistent with the requirement for an index or portfolio of Fixed
Income Securities under the current Commentary .02 to NYSE Arca Rule
5.2-E(j)(3), the Exchange would not list Units issued by an open-end
management investment company that seeks to provide investment results,
before fees and expenses, in an amount that exceeds -300% of the
percentage performance on a given day of an index of Municipal
Securities.\37\
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\37\ See proposed Commentary .02A to NYSE Arca Rule 5.2-E(j)(3).
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f. Additional Requirements
In addition to the quantitative requirements described above, the
Exchange proposes to adopt additional rules related to: (1) Index
methodology and calculation; (2) dissemination of information; (3)
initial shares outstanding; (4) hours of trading; (5) surveillance
procedures; and (6) disclosures.
The Exchange proposes Commentary .02A(b) to NYSE Arca Rule 5.2-
E(j)(3), which requires that: (i) If a Municipal Securities index is
maintained by a broker-dealer or fund advisor, the broker-dealer or
fund advisor shall erect and maintain a ``firewall'' around the
personnel who have access to information concerning changes and
adjustments to the index; (ii) the current index value for Units listed
pursuant to proposed Commentary .02A(a) to NYSE Arca Rule 5.2-E(j)(3)
will be widely disseminated by one or more major market data vendors at
least once per day and, if the index value does not change during some
or all of the period when trading is occurring on the NYSE Arca
Marketplace, the last official calculated index value must remain
available throughout NYSE Arca Marketplace trading hours; and (iii) any
advisory committee, supervisory board, or similar entity that advises a
Reporting Authority \38\ or that makes decisions on the index
composition, methodology and related matters, must implement and
maintain, or be subject to, procedures designed to prevent the use and
dissemination of material non-public information regarding the
applicable Municipal Securities index.\39\
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\38\ ``Reporting Authority'' is defined in NYSE Arca Rule 5.1-
E(b)(16). See Amendment No. 3, supra note 11, at 11 n.14.
\39\ See Amendment No. 3, supra note 11, at 10-11.
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The Exchange proposes Commentary .02A(c) to NYSE Arca Rule 5.2-
E(j)(3), which requires that one or more major market data vendors
shall disseminate for each series of Units based on an index or
portfolio of Municipal Securities an estimate, updated at least every
15 seconds during the Core Trading Session, of the value of a share of
each series (the ``Intraday Indicative Value'' or ``IIV'').\40\ The
Intraday Indicative Value may be based, for example, upon current
information regarding the required deposit of securities and cash
amount to permit creation of new shares of the series or upon the index
value.\41\ The Intraday Indicative Value may be calculated by the
Exchange or by an independent third party throughout the day using
prices obtained from independent market data providers or other
independent pricing sources such as a broker-dealer or price evaluation
services.\42\ If the Intraday Indicative Value does not change during
some or all of the period when trading is occurring on the Exchange,
then the last official calculated Intraday Indicative Value must remain
available throughout Exchange trading hours.\43\
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\40\ See id. at 11.
\41\ See id.
\42\ See id.
\43\ See id.
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The Exchange proposes Commentary .02A(d) to NYSE Arca Rule 5.2-
E(j)(3), which requires that a minimum of 100,000 shares of a series of
Units will be required to be outstanding at commencement of
trading.\44\
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\44\ See id.
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The Exchange proposes Commentary .02A(e) to NYSE Arca Rule 5.2-
E(j)(3), which specifies that the hours of trading for the Units will
be as governed by NYSE Arca Rule 7.34-E(a).\45\
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\45\ See id.
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The Exchange proposes Commentary .02A(f) to NYSE Arca Rule 5.2-
E(j)(3), which specifies that Units that are listed
[[Page 57792]]
or traded pursuant to unlisted trading privileges will be subject to
the Exchange's written surveillance procedures.\46\
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\46\ See id.
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Lastly, proposed Commentary .02A(g) to NYSE Arca Rule 5.2-E(j)(3)
incorporates the information circular requirement of Commentary .01(g)
NYSE Arca Rule 5.2-E(j)(3).\47\
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\47\ See id. at 42.
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B. Proposed Amendments to Commentary .03 to NYSE Arca Rule 5.2-E(j)(3)
The Exchange also proposes to amend Commentary .03 to NYSE Arca
Rule 5.2-E(j)(3) to allow the generic listing and trading of Units
based on a combination of two or more types of indexes, including a
combination index that includes Municipal Securities.\48\ Currently,
the scope of the rule allows the Exchange to generically list Units
overlying a combination of indexes or an index or portfolio of
component securities representing: (1) The U.S. or domestic equity
market; (2) the international equity market; and (3) the fixed income
market. To the extent that an index or portfolio of Municipal
Securities is included in a combination, the proposed rule specifies
that the Municipal Securities index or portfolio must satisfy all
requirements of Commentary .02A to NYSE Arca Rule 5.2-E(j)(3).\49\
Further, the Exchange's proposed rule would provide that it would not
list Units issued by an open-end management investment company that
seeks to provide investment results, before fees and expenses, in an
amount that exceeds -300% of the percentage performance on a
combination of indices that include a Municipal Securities Index.\50\
The Exchange also proposes other conforming changes to Commentary .03
to specify that the current requirements related to index value
dissemination and related continued listing standards will apply to
indexes of Municipal Securities.\51\
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\48\ See id. at 10.
\49\ See id.
\50\ See id.
\51\ See id.
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III. Discussion and Commission's Findings
After careful review, the Commission finds that the proposed rule
change, as modified by Amendment No. 3, is consistent with the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\52\ In particular, the Commission finds that the
proposal is consistent with Section 6(b)(5) of the Act,\53\ which
requires, among other things, that the Exchange's rules be designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to 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.
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\52\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\53\ 15 U.S.C. 78f(b)(5).
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With respect to the quantitative requirements of Commentary .02A to
NYSE Arca Rule 5.2-E(j)(3), the proposed original principal amount
outstanding requirement is lower than what is currently applicable to
Units based on an index or portfolio of Fixed Income Securities. The
Commission notes, however, that the other proposed quantitative
requirements (i.e., component concentration, issuer diversification,
and minimum number of components) are stricter than the existing
generic listing requirements. Accordingly, the Commission believes
that, taken together, the proposed Commentary .02A is sufficiently
designed to prevent fraudulent and manipulative acts and practices.
Specifically, the Commission believes that the generic listing
requirements for an index or portfolio of Municipal Securities should
help to ensure that an index underlying a series of Units will be
sufficiently large, not concentrated, and diversified to prevent
manipulation of that benchmark. The Commission further notes that it
has previously approved proposed listing and trading of exchange traded
funds with similar quantitative standards and those funds have not
raised concerns regarding manipulation.\54\
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\54\ The Commission has previously approved the listing and
trading of Units overlying municipal securities indices that satisfy
the proposed initial and continued generic listing criteria. See,
e.g., Securities Exchange Act Releases No. 82295 (Dec. 12, 2017), 82
FR 60056 (Dec. 18, 2017) (SR-NYSEArca-2017-56) and 84049, supra note
25.
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The Commission also finds that the other proposed provisions of
Commentary .02A to NYSE Arca Rule 5.2-E(j)(3) and the proposed
amendments to Commentary .03 to NYSE Arca Rule 5.2-E(j)(3) are
consistent with the Act. The provisions in the proposed Commentary .02A
governing index methodology and calculation, dissemination of
information, minimum number of shares outstanding at the commencement
of trading, hours of trading, surveillance procedures, and information
circulars are consistent with the existing requirements applicable to
Units based on an index of U.S. fixed-income securities. Further, the
proposed amendments to Commentary .03 are designed to extend the
requirements related to the generic listing and trading of Units based
on a combination of two or more types of indexes to an index of
Municipal Securities.
In support of its proposal, the Exchange represents the following:
(1) Units listed pursuant to proposed Commentary .02A to NYSE
Arca Rule 5.2-E(j)(3) will be subject to the existing trading
surveillances, administered by the Financial Industry Regulatory
Authority (``FINRA'') on behalf of the Exchange, which are designed
to detect violations of Exchange rules and applicable federal
securities laws.\55\ The Exchange represents that these procedures
are adequate to properly monitor Exchange trading of the Shares in
all trading sessions and to deter and detect violations of Exchange
rules and applicable federal securities laws.\56\ FINRA, on behalf
of the Exchange, will communicate as needed regarding trading in the
Shares with other markets that are members of the Intermarket
Surveillance Group (``ISG'') or with which the Exchange has in place
a comprehensive surveillance sharing agreement.\57\ FINRA also can
access data obtained from the MSRB relating to municipal bond
trading activity for surveillance purposes in connection with
trading in the Shares.\58\ FINRA, on behalf of the Exchange, is able
to access, as needed, trade information for certain fixed income
securities held by a Fund reported to FINRA's Trade Reporting and
Compliance Engine.\59\
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\55\ See Amendment No. 3, supra note 11, at 12.
\56\ See id.
\57\ See id.
\58\ See id.
\59\ See id.
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(2) Units listed pursuant to the proposed generic listing rule
will comply with all other requirements applicable to Units
including, but not limited to, the applicable rules governing the
trading of equity securities, trading hours, trading halts,
surveillance, information barriers and the Information Bulletin to
ETP Holders, as set forth in Exchange rules applicable to Units.\60\
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\60\ See id. at 13.
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(3) The Exchange has in place surveillance procedures relating
to trading in the Units and may obtain information via ISG from
other exchanges that are members of ISG or with which the Exchange
has entered into a comprehensive surveillance sharing agreement.\61\
In addition, investors will have ready access to information
regarding the IIV and quotation and last-sale information for the
Units. Trade price and other information relating to municipal bonds
is available through EMMA.\62\
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\61\ See id. at 14.
\62\ See id.
This approval order is based on all of the Exchange's
representations, including those set forth above. For the foregoing
reasons, the Commission finds
[[Page 57793]]
that the proposed rule change, as modified by Amendment No. 3, is
consistent with Section 6(b)(5) of the Act \63\ and the rules and
regulations thereunder applicable to a national securities exchange.
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\63\ 15 U.S.C. 78f(b)(5).
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IV. Solicitation of Comments on Amendment No. 3 to the Proposed Rule
Change
Interested persons are invited to submit written views, data, and
arguments concerning whether Amendment No. 3 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 [email protected]. Please include
File Number SR-NYSEArca-2019-04 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-NYSEArca-2019-04. 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-NYSEArca-2019-04 and should be submitted
on or before November 18, 2019.
V. Accelerated Approval of the Proposed Rule Change, as Modified by
Amendment No. 3
The Commission finds good cause to approve the proposed rule
change, as modified by Amendment No. 3, prior to the thirtieth day
after the date of publication of notice of the filing of Amendment No.
3 in the Federal Register. The Commission notes that Amendment No. 3
narrowed the scope of the proposal by prohibiting the of listing Units
issued by an open-end management investment company that seeks to
provide investment results, before fees and expenses, in an amount that
exceeds -300% of the percentage performance on a given day of an index
of Municipal Securities. Amendment No. 3 also provided useful
clarifications and corrections. The changes and additional information
in Amendment No. 3 assisted the Commission in evaluating the Exchange's
proposal and in determining that the proposed amendments to NYSE Arca
Rule 5.2-E(j)(3) are consistent with the Act. Accordingly, the
Commission finds good cause, pursuant to Section 19(b)(2) of the
Act,\64\ to approve the proposed rule change, as modified by Amendment
No. 3, on an accelerated basis.
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\64\ 15 U.S.C. 78s(b)(2).
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VI. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\65\ that the proposed rule change (SR-NYSEArca-2019-04), as
modified by Amendment No. 3, be, and it hereby is, approved on an
accelerated basis.
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\65\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\66\
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\66\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-23427 Filed 10-25-19; 8:45 am]
BILLING CODE 8011-01-P