Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Amending Rule 21.7 Concerning Openings Following Trading Halts, 26496-26498 [2019-11804]
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26496
Federal Register / Vol. 84, No. 109 / Thursday, June 6, 2019 / Notices
additional 120 calendar days will
provide Commission staff an
opportunity to continue its review of the
initial Form ATS–N disclosures and
discussions with Magma ATS.
In the conversations between Magma
ATS and Commission staff about the
initial Form ATS–N disclosures and the
ATS operations, Commission staff and
Magma ATS have discussed a potential
amendment to update Magma ATS’s
disclosures regarding the complexities
of its operations. Extending the review
period will enable the NMS Stock ATS
to amend its disclosures, if appropriate,
and allow Commission staff to conduct
a thorough review of amendments to the
initial disclosures provided on the
initial Form ATS–N.
For the reasons given above, the
Commission is extending the review
period of the initial Form ATS–N
submitted by Magma ATS. Accordingly,
pursuant to Rule 304(a)(1)(iv)(B),
October 6, 2019 is the date by which the
Commission may declare the initial
Form ATS–N submitted by Magma ATS
ineffective.
By the Commission.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–11870 Filed 6–5–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85972; File No. 013–00031]
Initial Form ATS–N Filing; Notice of
Extension of Commission Review
Period
khammond on DSKBBV9HB2PROD with NOTICES
May 31, 2019.
On February 1, 2019, BIDS ATS filed
an initial Form ATS–N (‘‘Form ATS–
N’’) with the Securities and Exchange
Commission (‘‘Commission’’). Pursuant
to Rule 304 under the Securities and
Exchange Act of 1934 (‘‘Act’’), the
Commission may, after notice and an
opportunity for hearing, declare an
initial Form ATS–N ineffective no later
than 120 days from the date of filing
with the Commission, or, if applicable,
the extended review period. June 1,
2019 is 120 calendar days from the date
of filing. Pursuant to Rule
304(a)(1)(iv)(B), the Commission may
extend the initial Form ATS–N review
period for up to an additional 120
calendar days if the initial Form ATS–
N is unusually lengthy or raises novel
or complex issues that require
additional time for review.
BIDS ATS was operating pursuant to
an initial operation report on Form ATS
on file with the Commission as of
VerDate Sep<11>2014
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Jkt 247001
January 7, 2019.1 BIDS ATS filed an
initial Form ATS–N on February 1,
2019. During the initial 120 calendar
day review period, the Commission staff
has been reviewing the disclosures on
BIDS ATS’s initial Form ATS–N. In
addition, the staff has been engaged in
ongoing discussions with BIDS ATS
about its disclosures and manner of
operations, as well as the requirements
of Form ATS–N, to facilitate complete
and comprehensible disclosures that
reflect the complexities of those
operations.
Form ATS–N requires NMS Stock
ATSs to file with the Commission, and
disclose to the public for the first time,
certain information, including
descriptions by the NMS Stock ATSs of
their fees, the trading activities by their
broker-dealer operators and their
affiliates in the NMS Stock ATSs, their
use of market data, their written
standards for granting access to trading
on the NMS Stock ATSs, and their
written safeguards and procedures for
protecting their subscribers’ confidential
trading information required by revised
Rule 301(b)(10) of Regulation ATS. The
initial Form ATS–N disclosures and
discussions with Commission staff have
revealed complexities about the
operations of Legacy NMS Stock ATSs
including, among other things, matching
functionalities, means of order entry,
order interaction and execution
procedures, conditional order processes,
segmentation of orders, and
counterparty selection protocols. The
Commission staff needs additional time
to review novel and complex issues
such as these, which Commission staff
has discussed with BIDS ATS.
Extending the initial Form ATS–N
Commission review period for an
additional 120 calendar days will
provide Commission staff an
opportunity to continue its review of the
initial Form ATS–N disclosures and
discussions with BIDS ATS.
In the conversations between BIDS
ATS and Commission staff about the
initial Form ATS–N disclosures and the
ATS operations, Commission staff and
BIDS ATS have discussed a potential
amendment to update BIDS ATS’s
disclosures regarding the complexities
of its operations. Extending the review
period will enable the NMS Stock ATS
to amend its disclosures, if appropriate,
and allow Commission staff to conduct
a thorough review of amendments to the
initial disclosures provided on the
initial Form ATS–N.
1 An NMS Stock ATS (as defined in Rule 300(k)
of Regulation ATS) that was operating pursuant to
an initial operation report on Form ATS on file with
the Commission as of January 7, 2019 is a ‘‘Legacy
NMS Stock ATS.’’ 17 CFR 242.301(b)(2)(viii).
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Fmt 4703
Sfmt 4703
For the reasons given above, the
Commission is extending the review
period of the initial Form ATS–N
submitted by BIDS ATS. Accordingly,
pursuant to Rule 304(a)(1)(iv)(B),
September 29, 2019 is the date by which
the Commission may declare the initial
Form ATS–N submitted by BIDS ATS
ineffective.
By the Commission.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–11816 Filed 6–5–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85985; File No. SR–
CboeBZX–2019–046]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Amending Rule
21.7 Concerning Openings Following
Trading Halts
May 31, 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 May 22,
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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX Options’’)
proposes to amend Rule 21.7. 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.
1 15
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).
2 17
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Federal Register / Vol. 84, No. 109 / Thursday, June 6, 2019 / 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
the most significant aspects of such
statements.
khammond on DSKBBV9HB2PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The proposed rule change harmonizes
how the opening auction process will be
used following all trading halts.
Currently, the Exchange opens trading
following a Regulatory Halt (as defined
below) in a different manner than it
opens trading following a nonRegulatory Halt. Specifically, current
Rule 21.7(a) provides that the Exchange
will accept market and limit orders and
quotes for inclusion in the opening
process (the ‘‘Opening Process’’)
immediately upon trading being halted
in an option series due to the primary
listing market for the applicable
underlying security declaring a
regulatory trading halt, suspension, or
pause with respect to such security (a
‘‘Regulatory Halt’’), with respect to
equity options. For equity options,
where a User has entered instructions
not to cancel its open orders upon a halt
pursuant to Rule 20.3(b), such orders
will be queued for participation in the
Opening Process for a Regulatory Halt or
will be cancelled for a halt that is not
a Regulatory Halt. Where trading is
halted pursuant to Rule 20.3, but it is
not due to a Regulatory Halt, there will
be no Order Entry Period and trading
shall be resumed upon the
determination by the Exchange that the
conditions which led to the halt are no
longer present or that the interests of a
fair and orderly market are best served
by a resumption of trading.
The Exchange has determined to
eliminate the distinction between how
the opening auction process applies
following a Regulatory Halt and a nonRegulatory Halt. The proposed rule
change provides that the opening
auction process following any trading
halt will apply in the manner it
currently applies following a Regulatory
Halt. In other words, following a non-
VerDate Sep<11>2014
16:11 Jun 05, 2019
Jkt 247001
Regulatory Halt, there will be an Order
Entry Period that begins immediately
when the Exchange halts trading in a
class. Additionally, in the event of a
non-Regulatory Halt, the System will
queue a User’s orders and quotes resting
on the book at the time of the trading
halt for participation in the Opening
Process following the trading halt,
unless the User entered instructions to
cancels its resting orders and quotes.
This will provide Users with the ability
to decide how its resting orders and
quotes should be handled in the event
of a non-Regulatory Halt, as they are
currently able to do in the event of a
Regulatory Halt. The Exchange also
believes elimination of this distinction
will eliminate potential investor
confusion regarding how the System
will handle orders and quotes in the
event of a trading halt.5
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.6 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 7 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) 8 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the proposed rule change
will protect investors by eliminating
potential confusion regarding how the
Exchange will open series following
trading halts, and by providing Users
with flexibility regarding how the
System will handle their orders and
quotes following a non-Regulatory Halt
5 The
proposed rule change also makes
conforming changes throughout Rule 21.7, and
other nonsubstantive changes to Rule 21.7.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
8 Id.
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26497
(as they currently have following a
Regulatory Halt).
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 will not impose
any burden on intramarket competition
that is not necessary or appropriate in
furtherance of the purposes of the Act.
All Users will have the same flexibility
regarding how the System will handle
their orders and quotes following nonRegulatory Halts, which is the same
flexibility currently available to Users
following Regulatory Halts. If a User
wants its orders and quotes to be
handled following a non-Regulatory
Halt in the manner they are today, that
User can instruct the Exchange to do so.
The proposed rule change will not
impose any burden on intermarket
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act. The proposed rule
change only impacts how the Exchange
will open series following a nonRegulatory Halt. The proposed change is
not intended to be a competitive change,
but rather to provide Users with
flexibility with respect to the handling
of their orders and quotes following a
non-Regulatory Halt.
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: (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)(iii) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4
thereunder.10
9 15
U.S.C. 78s(b)(3)(A)(iii).
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
10 17
E:\FR\FM\06JNN1.SGM
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06JNN1
26498
Federal Register / Vol. 84, No. 109 / Thursday, June 6, 2019 / Notices
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:
khammond on DSKBBV9HB2PROD with NOTICES
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–2019–046 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–2019–046. 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
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
VerDate Sep<11>2014
16:11 Jun 05, 2019
Jkt 247001
submissions should refer to File
Number SR–CboeBZX–2019–046 and
should be submitted on or before June
27, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–11804 Filed 6–5–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85987; File No. SR–
NASDAQ–2019–046]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Relocate
the Order Audit Trail System Rules
May 31, 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 May 23,
2019, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) 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 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 (a) rename
the title of Equity 5 ‘‘Order Audit Trail
Services’’ under the Exchange’s
rulebook (‘‘Rulebook’’) shell structure 3
to Equity 5 ‘‘Order Audit Trail System’’;
(b) relocate its current Rule 7000A
Series concerning the Order Audit Trail
System (‘‘OATS’’) to Equity 5 ‘‘Order
Audit Trail System’’ (as renamed by this
proposal); and (c) make conforming
11 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In 2017, the Exchange added a shell structure to
its Rulebook with the purpose of improving
efficiency and readability and to align its rules
closer to those of its five sister exchanges, Nasdaq
BX, Inc. (‘‘BX’’); Nasdaq PHLX LLC (‘‘Phlx’’);
Nasdaq ISE, LLC; Nasdaq GEMX, LLC; and Nasdaq
MRX, LLC (‘‘Affiliated Exchanges’’). See Securities
Exchange Act Release No. 82175 (November 29,
2017), 82 FR 57494 (December 5, 2017) (SR–
NASDAQ–2017–125). This proposed change is the
first of a total of three, which will move the OATS
rules of Nasdaq, BX, and Phlx to their respective
shell structures.
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
cross-reference changes in Rules 5320A
and IM–9216.
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaq.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 Exchange proposes to (a) rename
the title of Equity 5 ‘‘Order Audit Trail
Services’’ under the Rulebook shell
structure to Equity 5 ‘‘Order Audit Trail
System’’; (b) relocate its current Rule
7000A Series concerning OATS to
Equity 5 ‘‘Order Audit Trail System’’ (as
renamed by this proposal); and (c) make
conforming cross-reference changes in
Rules 5320A and IM–9216, as detailed
below.
1. Rename the Title of Equity 5
The title of Equity 5 is currently
‘‘Order Audit Trail Services.’’ The word
‘‘Services’’ was erroneously inserted
when adopting the shell. The accurate
word is ‘‘System,’’ which reflects the
name of the FINRA Order Audit Trail
System to which the rules thereunder
apply. Consequently, the Exchange is
making a corrective change to the name
of the rule.
2. Relocation of the OATS Rules
The Exchange, as part of its continued
effort to promote efficiency and the
conformity of its rule structure with
those of the Affiliated Exchanges,4 and
the goal of harmonizing and making its
rule structure uniform, proposes to
relocate the OATS rules, currently
under the Rule 7000A Series, into
Equity 5 ‘‘Order Audit Trail System’’ of
the shell structure. Specifically, the
Exchange will add the word ‘‘Section’’
4 See
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footnote 3.
06JNN1
]]>Agencies
[Federal Register Volume 84, Number 109 (Thursday, June 6, 2019)]
[Notices]
[Pages 26496-26498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11804]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85985; File No. SR-CboeBZX-2019-046]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Amending
Rule 21.7 Concerning Openings Following Trading Halts
May 31, 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 May 22, 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. (the ``Exchange'' or ``BZX Options'')
proposes to amend Rule 21.7. 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.
[[Page 26497]]
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 proposed rule change harmonizes how the opening auction process
will be used following all trading halts. Currently, the Exchange opens
trading following a Regulatory Halt (as defined below) in a different
manner than it opens trading following a non-Regulatory Halt.
Specifically, current Rule 21.7(a) provides that the Exchange will
accept market and limit orders and quotes for inclusion in the opening
process (the ``Opening Process'') immediately upon trading being halted
in an option series due to the primary listing market for the
applicable underlying security declaring a regulatory trading halt,
suspension, or pause with respect to such security (a ``Regulatory
Halt''), with respect to equity options. For equity options, where a
User has entered instructions not to cancel its open orders upon a halt
pursuant to Rule 20.3(b), such orders will be queued for participation
in the Opening Process for a Regulatory Halt or will be cancelled for a
halt that is not a Regulatory Halt. Where trading is halted pursuant to
Rule 20.3, but it is not due to a Regulatory Halt, there will be no
Order Entry Period and trading shall be resumed upon the determination
by the Exchange that the conditions which led to the halt are no longer
present or that the interests of a fair and orderly market are best
served by a resumption of trading.
The Exchange has determined to eliminate the distinction between
how the opening auction process applies following a Regulatory Halt and
a non-Regulatory Halt. The proposed rule change provides that the
opening auction process following any trading halt will apply in the
manner it currently applies following a Regulatory Halt. In other
words, following a non-Regulatory Halt, there will be an Order Entry
Period that begins immediately when the Exchange halts trading in a
class. Additionally, in the event of a non-Regulatory Halt, the System
will queue a User's orders and quotes resting on the book at the time
of the trading halt for participation in the Opening Process following
the trading halt, unless the User entered instructions to cancels its
resting orders and quotes. This will provide Users with the ability to
decide how its resting orders and quotes should be handled in the event
of a non-Regulatory Halt, as they are currently able to do in the event
of a Regulatory Halt. The Exchange also believes elimination of this
distinction will eliminate potential investor confusion regarding how
the System will handle orders and quotes in the event of a trading
halt.\5\
---------------------------------------------------------------------------
\5\ The proposed rule change also makes conforming changes
throughout Rule 21.7, and other nonsubstantive changes to Rule 21.7.
---------------------------------------------------------------------------
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.\6\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \7\ 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) \8\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers. In particular, the proposed rule change will
protect investors by eliminating potential confusion regarding how the
Exchange will open series following trading halts, and by providing
Users with flexibility regarding how the System will handle their
orders and quotes following a non-Regulatory Halt (as they currently
have following a Regulatory Halt).
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
\8\ Id.
---------------------------------------------------------------------------
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
will not impose any burden on intramarket competition that is not
necessary or appropriate in furtherance of the purposes of the Act. All
Users will have the same flexibility regarding how the System will
handle their orders and quotes following non-Regulatory Halts, which is
the same flexibility currently available to Users following Regulatory
Halts. If a User wants its orders and quotes to be handled following a
non-Regulatory Halt in the manner they are today, that User can
instruct the Exchange to do so. The proposed rule change will not
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
rule change only impacts how the Exchange will open series following a
non-Regulatory Halt. The proposed change is not intended to be a
competitive change, but rather to provide Users with flexibility with
respect to the handling of their orders and quotes following a non-
Regulatory Halt.
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: (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)(iii) of the Act \9\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 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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[[Page 26498]]
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-2019-046 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-2019-046. 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-2019-046 and should be submitted
on or before June 27, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-11804 Filed 6-5-19; 8:45 am]
BILLING CODE 8011-01-P
