Sunshine Act Meeting; Cancellation, 27811-27812 [2019-12775]
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Federal Register / Vol. 84, No. 115 / Friday, June 14, 2019 / Notices
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) 7 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
allows for an extension of the Pilot
Program prior to its expiration on June
30, 2019 for the benefit of market
participants. The Exchange believes that
the Pilot Program promotes just and
equitable principles of trade by enabling
public customers and other market
participants to express their true prices
to buy and sell options. The Exchange
notes that this proposal does not
propose any new policies or provisions
that are unique or unproven, but instead
relates to the continuation of an existing
program that operates on a pilot basis.
comments from members or other
interested parties.
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. Specifically,
the Exchange believes that, by extending
the expiration of the Pilot Program, the
proposed rule change will allow for
further analysis of the Pilot Program and
a determination of how the Program
should be structured in the future. In
doing so, the proposed rule change will
also serve to promote regulatory clarity
and consistency, thereby reducing
burdens on the marketplace and
facilitating investor protection. In
addition, the Exchange has been
authorized to act jointly in extending
the Pilot Program and believes the other
exchanges will be filing similar
extensions.
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:
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
7 Id.
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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 8 and Rule 19b–4(f)(6) 9 thereunder.
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
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–
CboeEDGX–2019–036 on the subject
line.
Paper Comments
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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.
9 17
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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–CboeEDGX–2019–036 and
should be submitted on or before July 5,
2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–12546 Filed 6–13–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting; Cancellation
• 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–CboeEDGX–2019–036. This
file number should be included on the
subject line if email is used. To help the
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FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: To Be Published.
PREVIOUSLY ANNOUNCED TIME AND DATE OF
THE MEETING: Monday, June 17, 2019 at
10:30 a.m.
The Closed
Meeting scheduled for Monday, June 17,
2019 at 10:30 a.m., has been cancelled.
CHANGES IN THE MEETING:
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
10 17
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CFR 200.30–3(a)(12).
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Federal Register / Vol. 84, No. 115 / Friday, June 14, 2019 / Notices
Dated: June 12, 2019.
Vanessa A. Countryman,
Acting Secretary.
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.
[FR Doc. 2019–12775 Filed 6–12–19; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[Release No. 34–86076; File No. SR–
CboeEDGX–2019–035]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Relating To
Adopt Limit-on-Close (‘‘LOC’’) and
Market-on-Close (‘‘MOC’’) Orders
June 10, 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 June 6,
2019, Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) 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.
jbell on DSK3GLQ082PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX Options’’)
proposes to adopt limit-on-close
(‘‘LOC’’) and market-on-close (‘‘MOC’’)
orders. 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/
options/regulation/rule_filings/edgx/),
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
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).
5 The Exchange also notes that its affiliated
exchanges, C2 and BZX Options, are
simultaneously proposing to make similar changes
in order to align functionality with Cboe Options.
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1. Purpose
In 2016, the Exchange’s parent
company, Cboe Global Markets, Inc.
(‘‘Cboe Global’’), which is also the
parent company of Cboe Exchange, Inc.
(‘‘Cboe Options’’) and Cboe C2
Exchange, Inc. (‘‘C2’’), acquired the
Exchange, Cboe EDGA Exchange, Inc.
(‘‘EDGA’’), Cboe BZX Exchange, Inc.
(‘‘BZX or BZX Options’’), and Cboe BYX
Exchange, Inc. (‘‘BYX’’ and, together
with the Exchange, C2, Cboe Options,
EDGA, and BZX, the ‘‘Cboe Affiliated
Exchanges’’). The Cboe Affiliated
Exchanges are working to align certain
system functionality, retaining only
intended differences between the Cboe
Affiliated Exchanges, in the context of a
technology migration. Cboe Options
intends to migrate its technology to the
same trading platform used by the
Exchange, C2 and BZX Options in the
fourth quarter of 2019. The proposal set
forth below is intended to add certain
functionality to the Exchange’s System
that is available on Cboe Options in
order to ultimately provide a consistent
technology offering for market
participants who interact with the Cboe
Affiliated Exchanges.5 Although the
Exchange intentionally offers certain
features that differ from those offered by
its affiliates and will continue to do so,
the Exchange believes that offering
similar functionality to the extent
practicable will reduce potential
confusion for Users.
The Exchange proposes to adopt LOC
and MOC orders under Rule 21.1(f).
Proposed Rule 21.1(f)(7) defines an LOC
order as a limit order, and proposed
Rule 21.1(f)(8) defines a MOC order as
a market order, respectively, that it may
only execute on the Exchange no earlier
than three minutes prior to Regular
Trading Hours (‘‘RTH’’) market close.
The System enters LOC and MOC orders
into the Book in time sequence (based
on the times at which the Exchange
initially received them), where they may
be processed in accordance with Rule
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21.8.6 The Exchange notes that it does
not have a closing auction in which
market participants may participate in
an auction rotation that determines the
closing price for a series, like that of the
equities space, but that the proposed
MOC and LOC orders merely become
executable three minutes prior to the
close of RTH. The Exchange queues
LOC and MOC orders in the System
until three minutes before the RTH
market close. At that time, the System
handles a LOC or MOC order as a limit
order or market order, as applicable, and
processes them in accordance with Rule
21.8. The Exchange believes that three
minutes prior to the RTH market close
is a reasonable time prior to the market
close to trigger MOC and LOC orders, as
it provides those orders with sufficient
time to interact with contra-side interest
and potentially execute at a time close
to the RTH market close.7 The proposed
LOC and MOC order definitions also
provide that the System cancels an LOC
order or an MOC order (or an
unexecuted portion of an LOC or MOC
order) that does not execute by the RTH
market close. This is consistent with the
purpose of these orders, which is to
execute near the RTH market close on
the day they were submitted to the
Exchange. As the execution of MOC and
LOC orders is linked to the RTH market
close, such orders will be valid only
during RTH; however, the System will
accept such orders during any trading
session.8 A User may not designate an
MOC or LOC order as ‘‘All Sessions’’; 9
any MOC or LOC order designated as
All Sessions will be rejected. In addition
to this, the Exchange notes that Users
may not designate bulk messages as
MOC or LOC, which is consistent with
the current requirement that bulk
messages must have a time-in-force of
Day to encourage Users to provide
6 Rule 21.8 describes how the System processes
orders and quotes in the Book.
7 The Exchange notes that Cboe Options currently
triggers the MOC and LOC orders three minutes
prior to the RTH market close.
8 The Exchange notes that an RTH Only MOC or
LOC order submitted during Global Trading Hours
(‘‘GTH’’) will remain on the book until the close of
RTH.
9 See Rule 21.1(d)(13) which defines ‘‘All
Sessions’’ as an order a User designates as eligible
to trade during both Global Trading Hours (‘‘GTH’’)
and RTH. The Exchange also notes that Rule
21.1(d)(14) defines ‘‘RTH Only’’ as an order a User
designates as eligible to trade only during RTH or
not designated as All Sessions. Therefore, the
default instruction is RTH Only and an unmarked
MOC or LOC order will be treated as RTH Only. See
also Securities Exchange Act Release No. 85797
(May 7, 2019), 84 FR 20920 (May 13, 2019) (Notice
of Filing and Immediate Effectiveness of a Proposed
Rule Change Relating to Amend the Exchange’s
Opening Process and add a Global Trading Hours
Session for XSP Options) (SR–CboeEDGX–2019–
027).
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[Federal Register Volume 84, Number 115 (Friday, June 14, 2019)]
[Notices]
[Pages 27811-27812]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12775]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meeting; Cancellation
FEDERAL REGISTER CITATION OF PREVIOUS ANNOUNCEMENT: To Be Published.
PREVIOUSLY ANNOUNCED TIME AND DATE OF THE MEETING: Monday, June 17,
2019 at 10:30 a.m.
CHANGES IN THE MEETING: The Closed Meeting scheduled for Monday, June
17, 2019 at 10:30 a.m., has been cancelled.
CONTACT PERSON FOR MORE INFORMATION: For further information; please
contact Vanessa A. Countryman from the Office of the Secretary at (202)
551-5400.
[[Page 27812]]
Dated: June 12, 2019.
Vanessa A. Countryman,
Acting Secretary.
[FR Doc. 2019-12775 Filed 6-12-19; 4:15 pm]
BILLING CODE 8011-01-P