Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Clarify That BZX's Halt Auction Process Is Applicable Only To Halt Auctions Following a Regulatory Halt, 5506-5508 [2019-02903]
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Federal Register / Vol. 84, No. 35 / Thursday, February 21, 2019 / Notices
years 2010, 2011, 2012, and 2013 among
six claimant groups. On page 3600, in
the third column, correct footnote 169 to
read: See sections IV.C.3–IV.C.5. On
page 3566, in the second column,
correct footnote 61 to read: The Judges
discussed the distinction between an
‘‘effects’’ regression and a ‘‘prediction’’
regression at length, supra, section
II.B.2.j. On page 3588, in the second
column, correct footnote 132 to read:
See discussion at section III.D.2.b. On
page 3604, in the first column, correct
footnote 179 to read: The Judges discuss
the relevant prior rulings, infra, section
VII.B.5.
Dated: February 15, 2019.
Suzanne M. Barnett,
Chief United States Copyright Royalty Judge.
[FR Doc. 2019–02942 Filed 2–20–19; 8:45 am]
BILLING CODE 1410–72–P
NATIONAL SCIENCE FOUNDATION
Proposal Review Panel for Physics;
Notice of Meeting
In accordance with the Federal
Advisory Committee Act (Pub. L. 92–
463, as amended), the National Science
Foundation (NSF) announces the
following meeting:
Name and Committee Code: MidTerm Site Visit to BaPSF for the
Division of Physics (1208)—University
of California—Los Angeles.
Date and Time: March 25, 2019; 8:00
a.m.–6:30 p.m.
Place: University of California, 1000
Veteran Ave, Los Angeles, CA 90024.
Type of Meeting: Closed.
Contact Person: Lukin Vyacheslav,
Program Director for Plasma, Division of
Physics, National Science Foundation,
2415 Eisenhower Avenue, Room
W9218, Alexandria, VA 22314;
Telephone: (703) 292–7382.
Purpose of Meeting: Site visit to
provide an evaluation of the progress of
the projects at the host site for the
Division of Physics at the National
Science Foundation.
Agenda
amozie on DSK3GDR082PROD with NOTICES1
March 25, 2019; 8:00 a.m.–6:30 p.m.
8:00 a.m.–8:30 a.m. Executive Session
(Closed)
8:30 a.m.–9:00 a.m. Overview
9:00 a.m.–9:45 a.m. Physics Topic 1
9:45 a.m.–10:15 a.m. Lab Tour
10:15 a.m.–10:30 a.m. Break
10:30 a.m.–11:15 a.m. Physics Topic 2
11:15 a.m.–11:45 a.m. Physics Topic 3
12:00 p.m.–12:30 p.m. Executive
Session (Closed)
12:30 p.m.–1:15 p.m. Lunch with
Students
VerDate Sep<11>2014
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1:15 p.m.–2:00 p.m. Physics Topic 4
(Co-PIs)
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2:45 p.m.–3:15 p.m. Operations and
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3:45 p.m.–4:15 p.m. Executive Session
(Closed)
4:15 p.m.–4:45 p.m. Coffee with
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4:45 p.m.–5:05 p.m. Executive Session
with Dean and V.P. for Research
5:05 p.m.–6:05 p.m. Questions for PI’s
6:05 p.m.–6:30 p.m. Site Visitors and
NSF Staff Dinner (Closed)
Reason for Closing: Topics to be
discussed and evaluated during closed
portions of the site review will include
information of a proprietary or
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under 5 U.S.C. 552b(c), (4) and (6) of the
Government in the Sunshine Act.
Dated: February 14, 2019.
Crystal Robinson,
Committee Management Officer.
[FR Doc. 2019–02879 Filed 2–20–19; 8:45 am]
BILLING CODE 7555–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85142; File No. SR–
CboeBZX–2019–008]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Clarify That
BZX’s Halt Auction Process Is
Applicable Only To Halt Auctions
Following a Regulatory Halt
February 14, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on February
5, 2019, Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 The
Commission is publishing this notice to
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe BZX Exchange, Inc. (‘‘BZX’’ or
the ‘‘Exchange’’) is filing with the
Securities and Exchange Commission
(the ‘‘Commission’’) a proposed rule
change to clarify that BZX’s Halt
Auction process is applicable only to
Halt Auctions following a Regulatory
Halt. The text of the proposed rule
change is attached [sic] as Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/bzx/), at
the Exchange’s Office of the Secretary,
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
Exchange 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 these
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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to clarify that BZX’s Halt
Auction process is applicable only to
Halt Auctions following a Regulatory
Halt such as a material news halt, a
trading halt following the initiation of
the market wide circuit breaker
mechanism, or a Trading Pause initiated
pursuant to the Plan to Address
Extraordinary Market Volatility—i.e.,
the ‘‘Limit Up-Limit Down’’ or ‘‘LULD’’
Plan. On December 21, 2108, the
Exchange filed a proposed rule change
to amend the process for re-opening
BZX listed securities following a
Regulatory Halt.5 Specifically, the
Exchange amended BZX Rule 11.23(d)
to provide for a measured and
transparent process for re-opening BZX
listed securities after a Non-LULD
1 15
2 17
PO 00000
Frm 00103
Fmt 4703
Sfmt 4703
5 See Securities Exchange Act Release No. 34–
84927 (December 21, 2018), 83 FR 67768 (December
31, 2018) (SR–CboeBZX–2018–090).
E:\FR\FM\21FEN1.SGM
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Federal Register / Vol. 84, No. 35 / Thursday, February 21, 2019 / Notices
Regulatory Halt that mirrors the Halt
Auction process already used by the
Exchange following a Trading Pause
initiated pursuant to the LULD Plan. As
part of that rule filing, which became
operative on January 20, 2019, the
Exchange differentiated for the first time
between the process to be used for Halt
Auctions following a Regulatory Halt
and the process that would continue to
be used for IPO Auctions and Halt
Auctions following a Non-Regulatory
Halt. In practice, however, Halt
Auctions are not conducted in
situations where the Exchange has
determined to re-open trading in BZX
listed securities following a NonRegulatory Halt. In such rare instances
where the Exchange suspends trading
for non-regulatory reasons, such as due
to a technical or systems issue that is
limited to trading on BZX, the Exchange
re-opens trading without an auction.
The Exchange therefore proposes to
amend its rules to eliminate mistaken
references to Halt Auctions following a
Non-Regulatory Halt, as described
herein. First, BZX Rule 11.23(d)
provides that the Exchange will conduct
an IPO Auction or Halt Auction for
trading in a BZX listed security in an
IPO or following a trading halt in that
security. The Exchange proposes to
amend this rule to instead provide that
BZX Rule 11.23(d) applies to trading in
a BZX listed security in an IPO or
following a Regulatory Halt in that
security. The Exchange believes that
specifying in BZX Rule 11.23(d) that the
Halt Auction process applies
specifically to Regulatory Halts, rather
than the more generic trading halt,
would reduce potential confusion about
when a Halt Auction is initiated.
Second, the Exchange proposes to
amend portions of BZX Rules
11.23(d)(2)(B) and (E) to remove
incorrect references to Halt Auctions
following a Non-Regulatory Halt. As
proposed, BZX rule 11.23(d)(2)(B)
would be amended to provide that this
paragraph describes the process for
extending the Quote-Only Period for
IPO Auctions. In addition, BZX rule
11.23(d)(2)(B)(ii) would be amended to
remove the reference to IPO Auctions in
that subsection since all of BZX Rule
11.23(d)(2)(B) would be limited to such
auctions. Furthermore, BZX Rule
11.23(d)(2)(E) would be amended to
provide that, for IPO Auctions only,
rather than IPO Auctions and Halt
Auctions following a Non-Regulatory
Halt, orders will be executed at the price
level within the Collar Price Range that
maximizes the number of shares
executed in the auction. These changes
would properly reflect the current
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17:08 Feb 20, 2019
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operation of the Exchange by stating
that certain functionality applies
specifically to IPO Auctions, rather than
to both IPO Auctions and Halt Auctions
following a Non-Regulatory Halt.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
requirements of Section 6(b) of the Act,6
in general, and Section 6(b)(5) of the
Act,7 in particular, in that it is designed
to remove impediments to and perfect
the mechanism of a free and open
market and a national market system, to
promote just and equitable principles of
trade, and, in general, to protect
investors and the public interest and not
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
Specifically, the Exchange believes that
the proposed rule change is consistent
with the protection of investors and the
public interest as it is designed to
increase transparency around the
operation of Halt Auctions in BZX listed
securities.
The Exchange recently filed a
proposed rule change to amend its Halt
Auction process used to re-open BZX
listed securities following a Regulatory
Halt. The amended rules, which became
operative on January 20, 2019, suggest
that the Exchange’s Halt Auction
process is used to re-open securities
following either a Regulatory Halt or a
Non-Regulatory Halt. While the
substance of that proposed rule change
to amend the process for re-opening
BZX listed securities following a NonLULD Regulatory Halt is accurate, the
changes that referenced Halt Auctions
following a Non-Regulatory Halt were
made in error as the Exchange only uses
the Halt Auction process to re-open
trading in BZX listed securities
following a Regulatory Halt. Since a
Halt Auction is unnecessary to pool
liquidity following a Non-Regulatory
Halt, and indeed could be disruptive
where continuous trading has continued
on other equities markets, the Exchange
does not use its auction process
following such halts. Instead, the
Exchange immediately transitions into
continuous trading by entering
remaining orders into the BZX Book
after the halt is ended and trading can
resume. The proposed rule change
would correct BZX Rule 11.23(d) to
specify that Halt Auctions are only
initiated after a Regulatory Halt, and
make related changes, such as
eliminating incorrect references to Halt
Auctions following a Non-Regulatory
Halt. The proposed amendments to the
6 15
7 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00104
Fmt 4703
Sfmt 4703
5507
Halt Auction rules would therefore
serve to ensure that the Exchange’s rules
are clear and accurate. No changes to
the Exchange’s systems or procedures
are contemplated by this proposed rule
change.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is designed to
correct erroneous references in BZX
Rule 11.23(d) to Halt Auctions following
a Non-Regulatory Halt, and clarify that
BZX’s Halt Auction process is
applicable only to Halt Auctions
following a Regulatory Halt. As a result,
the Exchange believes that the proposed
rule change will have no impact on
competition but will rather serve to
reduce potential confusion about when
a Halt Auction is initiated.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No comments were solicited or
received on the proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 8 and
subparagraph (f)(6) of Rule 19b–4
thereunder.9
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 10 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 11
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
9 17
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Federal Register / Vol. 84, No. 35 / Thursday, February 21, 2019 / Notices
the Commission to waive the 30-day
operative delay so that the proposal may
become operative upon filing. The
Exchange states that waiver of the 30day operative delay would allow the
Exchange to immediately amend its
rules to correct an error, thereby
increasing transparency around the
Exchange’s use of the Halt Auction and
ensuring that members and investors are
appropriately apprised of the fact that
this auction is limited to the resumption
of trading following a Regulatory Halt,
as has always been its practice. For
these reasons, the Commission believes
that waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest.
Accordingly, the Commission hereby
waives the operative delay and
designates the proposed rule change
operative upon filing.12
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://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–CboeBZX–2019–008 and
should be submitted on or before March
14, 2019.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Eduardo A. Aleman,
Deputy Secretary.
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CboeBZX–2019–008 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
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–CboeBZX–2019–008. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
12 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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17:08 Feb 20, 2019
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[FR Doc. 2019–02903 Filed 2–20–19; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–85143; File No. SR–MRX–
2019–02]
Self-Regulatory Organizations; Nasdaq
MRX, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Pricing
Schedule at Options 7, Section 3
February 14, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
31, 2019, Nasdaq MRX, LLC (‘‘MRX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
change as described in Items I, II, and
III, below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Pricing Schedule at Options 7, Section
3, entitled ‘‘Regular Order Fees and
Rebates.’’
While these amendments are effective
upon filing, the Exchange has
designated the proposed amendments to
be operative on February 1, 2019.
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqmrx.cchwallstreet.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
Exchange 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 these
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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend the Pricing Schedule
at Options 7, Section 3, entitled
‘‘Regular Order Fees and Rebates’’ at
Table 2 to (1) amend PIM Fees for
Crossing Orders 3 for both Penny and
Non-Penny Symbols; (2) increase NonPenny Fees for Reponses to Crossing
Orders; (3) adopt a letter ‘‘(c)’’ within
Options 7, Section 1 for ease of
reference to defined terms. The
Exchange will describe each
amendment below.
3 A ‘‘Crossing Order’’ is an order executed in the
Exchange’s Facilitation Mechanism, Solicited Order
Mechanism, Price Improvement Mechanism
(‘‘PIM’’) or submitted as a Qualified Contingent
Cross order. For purposes of this Pricing Schedule,
orders executed in the Block Order Mechanism are
also considered Crossing Orders.
E:\FR\FM\21FEN1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 35 (Thursday, February 21, 2019)]
[Notices]
[Pages 5506-5508]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02903]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85142; File No. SR-CboeBZX-2019-008]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Clarify
That BZX's Halt Auction Process Is Applicable Only To Halt Auctions
Following a Regulatory Halt
February 14, 2019.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 5, 2019, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe BZX Exchange, Inc. (``BZX'' or the ``Exchange'') is filing
with the Securities and Exchange Commission (the ``Commission'') a
proposed rule change to clarify that BZX's Halt Auction process is
applicable only to Halt Auctions following a Regulatory Halt. The text
of the proposed rule change is attached [sic] as Exhibit 5.
The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary, 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 Exchange 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 these 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 aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to clarify that BZX's
Halt Auction process is applicable only to Halt Auctions following a
Regulatory Halt such as a material news halt, a trading halt following
the initiation of the market wide circuit breaker mechanism, or a
Trading Pause initiated pursuant to the Plan to Address Extraordinary
Market Volatility--i.e., the ``Limit Up-Limit Down'' or ``LULD'' Plan.
On December 21, 2108, the Exchange filed a proposed rule change to
amend the process for re-opening BZX listed securities following a
Regulatory Halt.\5\ Specifically, the Exchange amended BZX Rule
11.23(d) to provide for a measured and transparent process for re-
opening BZX listed securities after a Non-LULD
[[Page 5507]]
Regulatory Halt that mirrors the Halt Auction process already used by
the Exchange following a Trading Pause initiated pursuant to the LULD
Plan. As part of that rule filing, which became operative on January
20, 2019, the Exchange differentiated for the first time between the
process to be used for Halt Auctions following a Regulatory Halt and
the process that would continue to be used for IPO Auctions and Halt
Auctions following a Non-Regulatory Halt. In practice, however, Halt
Auctions are not conducted in situations where the Exchange has
determined to re-open trading in BZX listed securities following a Non-
Regulatory Halt. In such rare instances where the Exchange suspends
trading for non-regulatory reasons, such as due to a technical or
systems issue that is limited to trading on BZX, the Exchange re-opens
trading without an auction.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 34-84927 (December
21, 2018), 83 FR 67768 (December 31, 2018) (SR-CboeBZX-2018-090).
---------------------------------------------------------------------------
The Exchange therefore proposes to amend its rules to eliminate
mistaken references to Halt Auctions following a Non-Regulatory Halt,
as described herein. First, BZX Rule 11.23(d) provides that the
Exchange will conduct an IPO Auction or Halt Auction for trading in a
BZX listed security in an IPO or following a trading halt in that
security. The Exchange proposes to amend this rule to instead provide
that BZX Rule 11.23(d) applies to trading in a BZX listed security in
an IPO or following a Regulatory Halt in that security. The Exchange
believes that specifying in BZX Rule 11.23(d) that the Halt Auction
process applies specifically to Regulatory Halts, rather than the more
generic trading halt, would reduce potential confusion about when a
Halt Auction is initiated. Second, the Exchange proposes to amend
portions of BZX Rules 11.23(d)(2)(B) and (E) to remove incorrect
references to Halt Auctions following a Non-Regulatory Halt. As
proposed, BZX rule 11.23(d)(2)(B) would be amended to provide that this
paragraph describes the process for extending the Quote-Only Period for
IPO Auctions. In addition, BZX rule 11.23(d)(2)(B)(ii) would be amended
to remove the reference to IPO Auctions in that subsection since all of
BZX Rule 11.23(d)(2)(B) would be limited to such auctions. Furthermore,
BZX Rule 11.23(d)(2)(E) would be amended to provide that, for IPO
Auctions only, rather than IPO Auctions and Halt Auctions following a
Non-Regulatory Halt, orders will be executed at the price level within
the Collar Price Range that maximizes the number of shares executed in
the auction. These changes would properly reflect the current operation
of the Exchange by stating that certain functionality applies
specifically to IPO Auctions, rather than to both IPO Auctions and Halt
Auctions following a Non-Regulatory Halt.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the requirements of Section 6(b) of the Act,\6\ in general, and Section
6(b)(5) of the Act,\7\ in particular, in that it is designed to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, to promote just and equitable principles of
trade, and, in general, to protect investors and the public interest
and not to permit unfair discrimination between customers, issuers,
brokers, or dealers. Specifically, the Exchange believes that the
proposed rule change is consistent with the protection of investors and
the public interest as it is designed to increase transparency around
the operation of Halt Auctions in BZX listed securities.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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The Exchange recently filed a proposed rule change to amend its
Halt Auction process used to re-open BZX listed securities following a
Regulatory Halt. The amended rules, which became operative on January
20, 2019, suggest that the Exchange's Halt Auction process is used to
re-open securities following either a Regulatory Halt or a Non-
Regulatory Halt. While the substance of that proposed rule change to
amend the process for re-opening BZX listed securities following a Non-
LULD Regulatory Halt is accurate, the changes that referenced Halt
Auctions following a Non-Regulatory Halt were made in error as the
Exchange only uses the Halt Auction process to re-open trading in BZX
listed securities following a Regulatory Halt. Since a Halt Auction is
unnecessary to pool liquidity following a Non-Regulatory Halt, and
indeed could be disruptive where continuous trading has continued on
other equities markets, the Exchange does not use its auction process
following such halts. Instead, the Exchange immediately transitions
into continuous trading by entering remaining orders into the BZX Book
after the halt is ended and trading can resume. The proposed rule
change would correct BZX Rule 11.23(d) to specify that Halt Auctions
are only initiated after a Regulatory Halt, and make related changes,
such as eliminating incorrect references to Halt Auctions following a
Non-Regulatory Halt. The proposed amendments to the Halt Auction rules
would therefore serve to ensure that the Exchange's rules are clear and
accurate. No changes to the Exchange's systems or procedures are
contemplated by this proposed rule change.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
designed to correct erroneous references in BZX Rule 11.23(d) to Halt
Auctions following a Non-Regulatory Halt, and clarify that BZX's Halt
Auction process is applicable only to Halt Auctions following a
Regulatory Halt. As a result, the Exchange believes that the proposed
rule change will have no impact on competition but will rather serve to
reduce potential confusion about when a Halt Auction is initiated.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No comments were solicited or received on the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change does not: (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). In addition, Rule19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \10\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked
[[Page 5508]]
the Commission to waive the 30-day operative delay so that the proposal
may become operative upon filing. The Exchange states that waiver of
the 30-day operative delay would allow the Exchange to immediately
amend its rules to correct an error, thereby increasing transparency
around the Exchange's use of the Halt Auction and ensuring that members
and investors are appropriately apprised of the fact that this auction
is limited to the resumption of trading following a Regulatory Halt, as
has always been its practice. For these reasons, the Commission
believes that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest. Accordingly, the
Commission hereby waives the operative delay and designates the
proposed rule change operative upon filing.\12\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-CboeBZX-2019-008 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-CboeBZX-2019-008. 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 (https://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-CboeBZX-2019-008 and should be submitted
on or before March 14, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-02903 Filed 2-20-19; 8:45 am]
BILLING CODE 8011-01-P
