Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Replace Obsolete Terminology, 18899-18901 [2019-08914]
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Federal Register / Vol. 84, No. 85 / Thursday, May 2, 2019 / Notices
SECURITIES AND EXCHANGE
COMMISSION
the most significant aspects of such
statements.
[Release No. 34–85729; File No. SR–
CboeBZX–2019–030]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Relating To
Replace Obsolete Terminology
April 26, 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 April 17,
2019, Cboe BZX Exchange, Inc.
(‘‘Exchange’’ or ‘‘BZX’’) filed with the
Securities and Exchange Commission
(‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) is filing with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change
to replace obsolete terminology. The
text of the proposed rule change is
provided in 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.
khammond on DSKBBV9HB2PROD with NOTICES
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
5 See Securities Exchange Act Release No. 84777
(December 10, 2018), 83 FR 64397 (December 14,
2018) (Notice of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating To Amend Its
Provision Related to Its Risk Monitor Mechanism)
(SR–CboeBZX–2018–086).
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).
VerDate Sep<11>2014
18:51 May 01, 2019
1. Purpose
The Exchange proposes to amend its
rules to replace certain obsolete terms
and correct an inaccurate reference
within its rules. Specifically, on
November 29, 2018, the Exchange filed
rule filing SR–CboeBZX–2018–086
which, among other things, adopted the
definition of ‘‘EFID’’ in Rule 21.1(k).
More specifically, ‘‘EFID’’ is an
executing firm ID and refers to what the
automated trading system used by BZX
Options for the trading of options
contracts (‘‘System’’) uses to identify the
Member and the clearing number for the
execution of orders and quotes
submitted to the System on its options
platform.5 At the time, the Exchange
noted that BZX’s rules had referred only
to the term ‘‘MPID’’, which is a
Member’s market participant identifier
and generally equivalent to an EFID.
The Exchange also noted however, that
MPIDs are only used for equities trading
and that the Exchange does not utilize
MPIDs on its options platform, but
rather uses EFIDs. As such, the
Exchange now proposes to update all
references to ‘‘market participant ID’’
and ‘‘MPID’’ to ‘‘executing Firm ID’’ and
‘‘EFID’’, respectively under Chapter
XXI, which chapter relates to the trading
of options listed on BZX Options (i.e.,
update terms in Rule 21.1(c)(1), Rule
21.1(g), and Rule 21.10(a)). In addition
to this, the Exchange proposed to
update an inaccurate reference within
Rule 21.1(g) to restrictions with respect
to bulk messaging in paragraph (j) to
paragraph (l), in which bulk messaging
restrictions are currently set forth.
The Exchange also proposes to further
clarify Rule 21.1(c)(1), which rule
defines ‘‘Attributable Orders’’.
Particularly, an Attributable Order is
currently defined as orders that are
designated for display (price and size)
including the User’s market participant
identifier (‘‘MPID’’). As discussed
above, the Exchange proposes to replace
the reference to ‘‘market participant
identifier (‘‘MPID’’)’’ to ‘‘executing Firm
ID (‘‘EFID’’)’’. The Exchange proposes to
also make clear that User’s may use
other unique identifiers on Attributable
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18899
Orders in addition to, or in lieu of,
EFIDs. More specifically, unique
identifiers are other identifiers chosen
by a User and currently comprised of a
combination of four alpha characters
appended to an Attributable Order.
These identifiers allow users to apply a
more granular, user-defined identifier
on an Attributable Order to better track
their orders. The Exchange notes that
Attributable Orders are optional order
designations and Users are currently
able to allocate a user-defined unique
identifier for internal, order tracking
purposes. Additionally, the Exchange
notes regardless of whether a User uses
an Attributable Order and regardless of
whether a User determines to display its
EFID and/or another unique identifier
on such Attributable Order, there is no
impact on the Exchange’s audit trail, its
ability to surveil, its ability to match or
clear trades, its ability to disseminate
real-time or near real time trade
information or any risk control
functionality. Indeed, such identifiers
on Attributable Orders are for display
purposes only. Even where a User
determines to append a unique
identifier and not an EFID on an
Attributable Order, the User’s EFID will
still be associated with such order and
the Exchange’s system will continue to
be able to identify the Member and the
clearing number for the execution of the
order. The Exchange further notes that
the proposed definition under Rule
21.1(c)(1) is consistent with the
definition of Attributable Orders on its
affiliate, Cboe C2 Exchange, Inc.
(‘‘C2’’).6 The proposed rule change to
Rule 21.1(c)(1) provides Members
flexibility in what identifiers it may use
on Attributable Orders and also makes
clear that User’s may use unique
identifiers other than EFIDs. The
Exchange notes no substantive change is
being made by this rule change. The
Exchange is merely updating its options
rules to reflect the accurate terminology
relating to market participant identifiers
and clarifying the current ways in
which a User may designate an optional
display feature.
Lastly, the Exchange notes that
although rule filing SR–CboeBZX–086
proposed to replace references to ‘‘User’’
with ‘‘Member’’, it inadvertently failed
to update this reference in Rule
21.1(k)(3). The Exchange therefore seeks
to correct this oversight and update the
reference to ‘‘Users’’ in Rule 21.1(k)(3)
to ‘‘Members’’. No substantive changes
are being made by the proposed rule
change.
6 See
E:\FR\FM\02MYN1.SGM
C2 Rule 6.10.
02MYN1
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Federal Register / Vol. 84, No. 85 / Thursday, May 2, 2019 / Notices
khammond on DSKBBV9HB2PROD with NOTICES
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.7 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 8 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 9 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes its proposed
rule change to update inaccurately
defined terms or references under Rule
21.1(c)(1), Rule 21.1(g), Rule 21.1(k)(3),
and Rule 21.10(a) will provide
consistency and transparency in the
rules and alleviate potential confusion,
thereby removing impediments to and
perfecting the mechanism of a free and
open market and a national market
system and protecting investors and the
public interest. Additionally, the
Exchange believes that the proposed
change to the definition of Attributable
Orders provides consistency across the
corresponding C2 Rule 6.10 and makes
clear that User’s may use other unique
identifiers, which, as discussed above,
are defined by the User and are
currently comprised of a combination of
four alpha characters. As a result, the
proposed change to this definition
provides further consistency and
transparency in the Exchange’s rules
and with that of its affiliate’s rules and
alleviates potential confusion
surrounding the designation of
Attributable Orders, which protects
investors and the public interest. The
Exchange also believes that providing
Users the option of using identifiers
other than EFIDs provides Users more
flexibility and ability to better track
their orders. As noted above, the
7 15
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
9 Id.
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18:51 May 01, 2019
Jkt 247001
proposed filing does not substantively
change any Member abilities under the
rules, nor does it impact the Exchange’s
audit trail, its ability to surveil, its
ability to match or clear trades, its
ability to disseminate real-time or near
real time trade information or any risk
control functionality. The proposed
change merely corrects inadvertent
oversights with respect to terminology
and makes explicit that a User may
designate Attributable Orders by using
EFIDs and/or other unique identifiers,
which is an optional feature for display
purposes only and that is currently
available to all Users.
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
proposed rule change does not address
competitive issues, but rather, as
discussed above, is merely intended to
correct inadvertent uses of inaccurate or
obsolete terms, which will alleviate
potential confusion.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not:
A. Significantly affect the protection
of investors or the public interest;
B. impose any significant burden on
competition; and
C. 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 10 and Rule 19b–4(f)(6) 11
thereunder.12
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative prior to 30 days after
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
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.
13 17 CFR 240.19b–4(f)(6).
11 17
PO 00000
Frm 00138
Fmt 4703
Sfmt 4703
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),14 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has requested
that the Commission waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest as it
will allow the Exchange to immediately
update its rulebook to reflect current
terminology and reflect how Users can
designate Attributable Orders. The
Exchange has represented that no
substantive changes are being made to
its rules and further, that the proposed
rule change will have no impact on (i)
its ability to surveil, match or clear
trades, and disseminate trade
information; (ii) risk control
functionality; or (iii) the Exchange’s
audit trail. Accordingly, the
Commission waives the 30-day
operative delay and designates the
proposed rule change operative upon
filing.15
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 will 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–2019–030 on the subject line.
14 17
CFR 240.19b–4(f)(6)(iii).
purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
15 For
E:\FR\FM\02MYN1.SGM
02MYN1
Federal Register / Vol. 84, No. 85 / Thursday, May 2, 2019 / Notices
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–2019–030. 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–2019–030 and
should be submitted on or before May
23, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–08914 Filed 5–1–19; 8:45 am]
Dated: April 29, 2019.
Vanessa A. Countryman,
Acting Secretary.
[FR Doc. 2019–09039 Filed 4–30–19; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85732; File No. SR–CBOE–
2019–024]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Rule 6.49A To
Eliminate the Exchange’s On-Floor
Position Transfer Procedure
April 26, 2019.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
khammond on DSKBBV9HB2PROD with NOTICES
public roundtable on Monday May 6,
2019 at 9:30 a.m.
PLACE: The roundtable will be held in
the Multi-Purpose Room LL–006 at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: The meeting will begin at 9:30
a.m. (ET) and will be open to the public.
Seating will be on a first-come, firstserved basis. Doors will open at 9:00
a.m. Visitors will be subject to security
checks. The meeting will be webcast on
the Commission’s website at
www.sec.gov.
MATTERS TO BE CONSIDERED: The
Commission staff will host a roundtable
on small business capital formation,
with a focus on the experiences of
investors and companies raising capital
between the U.S. coasts. The roundtable
is open to the public. This Sunshine Act
notice is being issued because a majority
of the Commission may attend the
meeting.
The agenda for the roundtable will
focus on successes and challenges faced
by small businesses and their investors
as they seek to raise capital, including
the impact of rules and regulations
under the federal securities laws.
CONTACT PERSON FOR MORE INFORMATION:
For further information, please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Sunshine Act Meetings
Notice is hereby given,
pursuant to the provisions of the
Government in the Sunshine Act, Public
Law 94–409, that the Securities and
Exchange Commission staff will hold a
TIME AND DATE:
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 April 16,
2019, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) 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
1 15
16 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
18:51 May 01, 2019
2 17
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PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00139
Fmt 4703
Sfmt 4703
18901
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to amend
Rule 6.49A to eliminate the Exchange’s
on-floor position transfer procedure.
The text of the proposed rule change is
provided in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/CBOELegalRegulatory
Home.aspx), 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 Exchange proposes to amend
Rule 6.49A to delete the provisions
related to on-floor position transfers and
amend the provision regarding
presidential exemptions. Rule 6.49A
specifies the circumstances under
which Trading Permit Holders may
effect transfers of positions, both on and
off the trading floor, notwithstanding
the prohibition in Rule 6.49(a).5 Rule
6.49A(a)(2) permits certain position
transfers to occur on the floor of the
exchange or on another options
exchange. The procedures for such on3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 Rule 6.49 generally requires transactions of
option contracts listed on the Exchange for a
premium in excess of $1.00 to be effected on the
floor of the Exchange or on another exchange.
4 17
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]]>Agencies
[Federal Register Volume 84, Number 85 (Thursday, May 2, 2019)]
[Notices]
[Pages 18899-18901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08914]
[[Page 18899]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85729; File No. SR-CboeBZX-2019-030]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
To Replace Obsolete Terminology
April 26, 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 April 17, 2019, Cboe BZX Exchange, Inc. (``Exchange'' or ``BZX'')
filed with the Securities and Exchange Commission (``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. (the ``Exchange'' or ``BZX'') is filing
with the Securities and Exchange Commission (``Commission'') a proposed
rule change to replace obsolete terminology. The text of the proposed
rule change is provided in 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 Exchange proposes to amend its rules to replace certain
obsolete terms and correct an inaccurate reference within its rules.
Specifically, on November 29, 2018, the Exchange filed rule filing SR-
CboeBZX-2018-086 which, among other things, adopted the definition of
``EFID'' in Rule 21.1(k). More specifically, ``EFID'' is an executing
firm ID and refers to what the automated trading system used by BZX
Options for the trading of options contracts (``System'') uses to
identify the Member and the clearing number for the execution of orders
and quotes submitted to the System on its options platform.\5\ At the
time, the Exchange noted that BZX's rules had referred only to the term
``MPID'', which is a Member's market participant identifier and
generally equivalent to an EFID. The Exchange also noted however, that
MPIDs are only used for equities trading and that the Exchange does not
utilize MPIDs on its options platform, but rather uses EFIDs. As such,
the Exchange now proposes to update all references to ``market
participant ID'' and ``MPID'' to ``executing Firm ID'' and ``EFID'',
respectively under Chapter XXI, which chapter relates to the trading of
options listed on BZX Options (i.e., update terms in Rule 21.1(c)(1),
Rule 21.1(g), and Rule 21.10(a)). In addition to this, the Exchange
proposed to update an inaccurate reference within Rule 21.1(g) to
restrictions with respect to bulk messaging in paragraph (j) to
paragraph (l), in which bulk messaging restrictions are currently set
forth.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 84777 (December 10,
2018), 83 FR 64397 (December 14, 2018) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change Relating To Amend
Its Provision Related to Its Risk Monitor Mechanism) (SR-CboeBZX-
2018-086).
---------------------------------------------------------------------------
The Exchange also proposes to further clarify Rule 21.1(c)(1),
which rule defines ``Attributable Orders''. Particularly, an
Attributable Order is currently defined as orders that are designated
for display (price and size) including the User's market participant
identifier (``MPID''). As discussed above, the Exchange proposes to
replace the reference to ``market participant identifier (``MPID'')''
to ``executing Firm ID (``EFID'')''. The Exchange proposes to also make
clear that User's may use other unique identifiers on Attributable
Orders in addition to, or in lieu of, EFIDs. More specifically, unique
identifiers are other identifiers chosen by a User and currently
comprised of a combination of four alpha characters appended to an
Attributable Order. These identifiers allow users to apply a more
granular, user-defined identifier on an Attributable Order to better
track their orders. The Exchange notes that Attributable Orders are
optional order designations and Users are currently able to allocate a
user-defined unique identifier for internal, order tracking purposes.
Additionally, the Exchange notes regardless of whether a User uses an
Attributable Order and regardless of whether a User determines to
display its EFID and/or another unique identifier on such Attributable
Order, there is no impact on the Exchange's audit trail, its ability to
surveil, its ability to match or clear trades, its ability to
disseminate real-time or near real time trade information or any risk
control functionality. Indeed, such identifiers on Attributable Orders
are for display purposes only. Even where a User determines to append a
unique identifier and not an EFID on an Attributable Order, the User's
EFID will still be associated with such order and the Exchange's system
will continue to be able to identify the Member and the clearing number
for the execution of the order. The Exchange further notes that the
proposed definition under Rule 21.1(c)(1) is consistent with the
definition of Attributable Orders on its affiliate, Cboe C2 Exchange,
Inc. (``C2'').\6\ The proposed rule change to Rule 21.1(c)(1) provides
Members flexibility in what identifiers it may use on Attributable
Orders and also makes clear that User's may use unique identifiers
other than EFIDs. The Exchange notes no substantive change is being
made by this rule change. The Exchange is merely updating its options
rules to reflect the accurate terminology relating to market
participant identifiers and clarifying the current ways in which a User
may designate an optional display feature.
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\6\ See C2 Rule 6.10.
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Lastly, the Exchange notes that although rule filing SR-CboeBZX-086
proposed to replace references to ``User'' with ``Member'', it
inadvertently failed to update this reference in Rule 21.1(k)(3). The
Exchange therefore seeks to correct this oversight and update the
reference to ``Users'' in Rule 21.1(k)(3) to ``Members''. No
substantive changes are being made by the proposed rule change.
[[Page 18900]]
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\7\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \8\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, 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. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \9\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ Id.
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The Exchange believes its proposed rule change to update
inaccurately defined terms or references under Rule 21.1(c)(1), Rule
21.1(g), Rule 21.1(k)(3), and Rule 21.10(a) will provide consistency
and transparency in the rules and alleviate potential confusion,
thereby removing impediments to and perfecting the mechanism of a free
and open market and a national market system and protecting investors
and the public interest. Additionally, the Exchange believes that the
proposed change to the definition of Attributable Orders provides
consistency across the corresponding C2 Rule 6.10 and makes clear that
User's may use other unique identifiers, which, as discussed above, are
defined by the User and are currently comprised of a combination of
four alpha characters. As a result, the proposed change to this
definition provides further consistency and transparency in the
Exchange's rules and with that of its affiliate's rules and alleviates
potential confusion surrounding the designation of Attributable Orders,
which protects investors and the public interest. The Exchange also
believes that providing Users the option of using identifiers other
than EFIDs provides Users more flexibility and ability to better track
their orders. As noted above, the proposed filing does not
substantively change any Member abilities under the rules, nor does it
impact the Exchange's audit trail, its ability to surveil, its ability
to match or clear trades, its ability to disseminate real-time or near
real time trade information or any risk control functionality. The
proposed change merely corrects inadvertent oversights with respect to
terminology and makes explicit that a User may designate Attributable
Orders by using EFIDs and/or other unique identifiers, which is an
optional feature for display purposes only and that is currently
available to all Users.
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 proposed rule change
does not address competitive issues, but rather, as discussed above, is
merely intended to correct inadvertent uses of inaccurate or obsolete
terms, which will alleviate potential confusion.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
A. Significantly affect the protection of investors or the public
interest;
B. impose any significant burden on competition; and
C. 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 \10\ and
Rule 19b-4(f)(6) \11\ thereunder.\12\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-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 under Rule 19b-4(f)(6) \13\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest as
it will allow the Exchange to immediately update its rulebook to
reflect current terminology and reflect how Users can designate
Attributable Orders. The Exchange has represented that no substantive
changes are being made to its rules and further, that the proposed rule
change will have no impact on (i) its ability to surveil, match or
clear trades, and disseminate trade information; (ii) risk control
functionality; or (iii) the Exchange's audit trail. Accordingly, the
Commission waives the 30-day operative delay and designates the
proposed rule change operative upon filing.\15\
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ For purposes only of waiving the 30-day operative delay,
the Commission 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 will 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 [email protected]. Please include
File Number SR-CboeBZX-2019-030 on the subject line.
[[Page 18901]]
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-2019-030. 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-2019-030 and should be submitted
on or before May 23, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-08914 Filed 5-1-19; 8:45 am]
BILLING CODE 8011-01-P
