Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Manner in Which It Calculates Volume, Liquidity and Quoting Thresholds Applicable to Billing on the Exchange in Relation to a Systems Issue Experienced by SIAC on August 12, 2019, 47007-47009 [2019-19220]
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Federal Register / Vol. 84, No. 173 / Friday, September 6, 2019 / 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–
MIAX–2019–38 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.
jspears on DSK3GMQ082PROD with NOTICES
All submissions should refer to File
Number SR–MIAX–2019–38. 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–MIAX–2019–38 and should
be submitted on or before September
27,2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.56
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–19221 Filed 9–5–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86840; File No. SR–BX–
2019–029]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify the Manner in
Which It Calculates Volume, Liquidity
and Quoting Thresholds Applicable to
Billing on the Exchange in Relation to
a Systems Issue Experienced by SIAC
on August 12, 2019
August 30, 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 August
28, 2019, Nasdaq BX, Inc. (‘‘BX’’ 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 proposal
to modify the manner in which it
calculates volume, liquidity and quoting
thresholds applicable to billing on the
Exchange in relation to a systems issue
experienced by SIAC on August 12,
2019, which impacted trade and quote
dissemination across all markets.
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqbx.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.
1 15
56 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
16:53 Sep 05, 2019
2 17
Jkt 247001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00076
Fmt 4703
Sfmt 4703
47007
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to modify the
manner in which it calculates volume,
liquidity and quoting thresholds
applicable to billing on the Exchange in
relation to the August 12, 2019 systems
issue, which impacted trade and quote
dissemination across all markets.3
Specifically, on August 12, 2019, SIAC 4
determined to fail over to back up
servers after receiving indications that
its primary systems had become
unstable, causing connectivity
disruptions. The fail over to secondary
systems failed to cure the problem,
resulting in market-wide issues with the
Consolidated Quote System and the
Consolidated Tape System, including
gaps in the intra-day trades, quotes, and
other messages that were attempted to
be sent to it. Consequently, the accuracy
of the transaction and quotation data for
August 12, 2019 is unknown.
As a result, the Exchange is unable to
accurately calculate member transaction
fees and credits, including calculations
for the Exchange’s incentive programs,
since several of the Exchange’s
transaction fees and credits are based on
trading, quoting and liquidity
thresholds that members must satisfy in
order to qualify for the particular rates
(e.g., percentage of Consolidated
Volume, Average Daily Volume, and
time at the NBBO). The Exchange
therefore proposes to exclude August
12, 2019 from all tier calculations
described in Equity 7, Section 118 5 in
order to reasonably ensure that a
member that would otherwise qualify
for a particular threshold during August
2019, and the corresponding transaction
rate and/or incentive, would not be
negatively impacted by the August 12,
2019 systems issue.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,6 in general, and furthers the
objectives of Sections 6(b)(4) and (5) of
3 See https://www.ctaplan.com/
alerts#110000144324.
4 SIAC is the operator of the Consolidated Quote
System and Consolidated Tape System, which
disseminate real-time trade and quote information
in New York Stock Exchange LLC (Network A) and
Bats, NYSE Arca, NYSE American and other
regional exchange (Network B) listed securities.
5 Equity 7, Section 118 provides the fees and
credits for use of the Exchange’s order execution
and routing services.
6 15 U.S.C. 78f(b).
E:\FR\FM\06SEN1.SGM
06SEN1
47008
Federal Register / Vol. 84, No. 173 / Friday, September 6, 2019 / Notices
jspears on DSK3GMQ082PROD with NOTICES
the Act,7 in particular, in that it is
designed to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general to protect investors and the
public interest. In this regard, because
the accuracy of the transaction and
quotation data disseminated by SIAC for
August 12, 2019 is unknown, the
Exchange believes that it is reasonable
to exclude August 12, 2019 from all tier
calculations described in Equity 7,
Section 118, which would reasonably
ensure that a member’s qualification for
various pricing programs would be
based on the data that the Exchange
believes is accurate. The Exchange also
believes that the proposed rule change
is reasonable because the SIAC systems
issue that caused inaccurate transaction
and quotation data was not within
Exchange’s control nor can the
Exchange correct or otherwise remediate
the issue. Including August 12, 2019
transaction and quotation data for
purposes of tier calculations described
in Equity 7, Section 118 could result in
inaccurate determinations for member
rates based on the extent to which their
transactions and quotations were
impacted by the August 12, 2019 event
in comparison to the overall
inaccuracies in the data provided by
SIAC for that date. Consequently, the
Exchange believes that the proposed
change is equitable and not unfairly
discriminatory because it would result
in all market participants on the
Exchange being treated equally by
excluding August 12, 2019 from all tier
calculations described in Equity 7,
Section 118. Last, excluding August 12,
2019 from all tier calculations described
in Equity 7, Section 118 is in the public
interest because it will provide
Exchange members with the closest
approximation of the fees and credits
that they would have been eligible for
if accurate data for August 12, 2019
were available and included in the
monthly calculation.
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 not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change would treat all
market participants on the Exchange
equally by excluding August 12, 2019
from all tier calculations described in
Equity 7, Section 118. Moreover, the
Exchange believes that the proposed
7 15
U.S.C. 78f(b)(4) and (5).
VerDate Sep<11>2014
16:53 Sep 05, 2019
Jkt 247001
change would enhance competition
between competing marketplaces by
enabling the Exchange to fairly assess its
members fees and to apply credits in
light of systems issues that occurred,
which are beyond the control of the
Exchange.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
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) of the Act 8 and Rule 19b–
4(f)(6) 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
requested that the Commission waive
the 30-day operative delay. The
Exchange begins the calculation and
billing of member fees and credits under
Equity 7, Section 118 at the close of
each month, and an operative delay
would disrupt the normal billing
process, which may cause expense and
potential investor confusion. Therefore,
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
proposal as operative upon filing.12
8 15
U.S.C. 78s(b)(3)(A).
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.
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).
9 17
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
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–
BX–2019–029 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–BX–2019–029. 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
E:\FR\FM\06SEN1.SGM
06SEN1
Federal Register / Vol. 84, No. 173 / Friday, September 6, 2019 / Notices
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–BX–2019–029 and should
be submitted on or before September 27,
2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Jill M. Peterson,
Assistant Secretary.
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. 2019–19223 Filed 9–5–19; 8:45 am]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Jill M. Peterson,
Assistant Secretary.
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2019–19220 Filed 9–5–19; 8:45 am]
Self-Regulatory Organizations; MIAX
Emerald, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Adopt System
Connectivity Fees
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; BOX
Exchange LLC; Notice of Withdrawal of
Proposed Rule Change To Amend the
Fee Schedule on the BOX Options
Market LLC Facility To Establish BOX
Connectivity Fees for Participants and
Non-Participants Who Connect to the
BOX Network
August 30, 2019.
On June 26, 2019, BOX Exchange LLC
(‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend the Exchange’s fee schedule to
establish certain connectivity fees and
reclassify its high speed vendor feed
connection as a port fee. The proposed
rule change was immediately effective
upon filing with the Commission
pursuant to Section 19(b)(3)(A) of the
Act.3 The proposed rule change was
published for comment in the Federal
Register on July 15, 2019.4 The
Commission received two comment
letters on the proposal.5 On August 22,
2019, the Exchange withdrew the
proposed rule change (SR–BOX–2019–
22).
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 See Securities Exchange Act Release No. 86335
(July 9, 2019), 84 FR 33788.
5 See Letters to Vanessa Countryman, Secretary,
Commission, from Theodore R. Lazo, Managing
Director and Associate General Counsel, and Ellen
Greene, Managing Director, Financial Services
Operations, Securities Industry and Financial
Markets Association, dated August 5, 2019 and
Tyler Gellasch, Executive Director, Healthy Markets
Association, dated August 5, 2019.
6 17 CFR 200.30–3(a)(12).
1 15
VerDate Sep<11>2014
16:53 Sep 05, 2019
Jkt 247001
BILLING CODE 8011–01–P
[Release No. 34–86839; File No. SR–
EMERALD–2019–31]
August 30, 2019.
[Release No. 34–86835; File No. SR–BOX–
2019–22]
jspears on DSK3GMQ082PROD with NOTICES
47009
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 August
23, 2019, MIAX Emerald, LLC (‘‘MIAX
Emerald’’ or ‘‘Exchange’’), filed with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule 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 is filing a proposal to
amend the MIAX Emerald Fee Schedule
(the ‘‘Fee Schedule’’) to adopt the
Exchange’s system connectivity fees.
The Exchange previously filed the
proposal on June 26, 2019 (SR–
EMERALD–2019–24). That filing has
been withdrawn and replaced with the
current filing (SR–EMERALD–2019–31).
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/emerald, at MIAX’s principal
office, 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
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00078
Fmt 4703
Sfmt 4703
1. Purpose
The Exchange is refiling its proposal
to amend the Fee Schedule regarding
connectivity to the Exchange in order to
provide greater detail and clarity
concerning the Exchange’s cost
allocation, as it pertains to the
Exchange’s expenses for network
connectivity services. In order to
determine the Exchange’s costs
associated with providing network
connectivity services, the Exchange
conducted an extensive cost allocation
review process in which the Exchange
did a line-by-line analysis of the
Exchange’s general expense ledger to
determine which of those expenses
relate to the provision of network
connectivity services, and, if related,
what portion (or allocation) of such
expense should be attributed to the cost
of providing network connectivity
services. The Exchange is now
presenting the results of the cost
allocation review in a way that
corresponds directly with income
statement expense line items to provide
greater transparency into its actual costs
associated with providing network
connectivity services. Based on this
analysis, the Exchange believes that its
proposed fees are fair and reasonable
because they will permit recovery of
less than all of the Exchange’s costs for
providing connectivity and will not
result in excessive pricing or
supracompetitive profit, when
comparing the Exchange’s total annual
expense associated with providing the
network connectivity services versus the
total projected annual revenue the
Exchange projects to collect for
providing the network connectivity
services.
Specifically, the Exchange proposes to
amend Sections 5a) and b) of the Fee
Schedule to adopt the network
connectivity fees for the 1 Gigabit
(‘‘Gb’’) fiber connection and the 10Gb
ultra-low latency (‘‘ULL’’) fiber
connection, which are charged to both
Members 3 and non-Members of the
3 The term ‘‘Member’’ means an individual or
organization approved to exercise the trading rights
associated with a Trading Permit. Members are
deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
E:\FR\FM\06SEN1.SGM
06SEN1
]]>Agencies
[Federal Register Volume 84, Number 173 (Friday, September 6, 2019)]
[Notices]
[Pages 47007-47009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19220]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86840; File No. SR-BX-2019-029]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Modify the
Manner in Which It Calculates Volume, Liquidity and Quoting Thresholds
Applicable to Billing on the Exchange in Relation to a Systems Issue
Experienced by SIAC on August 12, 2019
August 30, 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 August 28, 2019, Nasdaq BX, Inc. (``BX'' 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to a proposal to modify the manner in which
it calculates volume, liquidity and quoting thresholds applicable to
billing on the Exchange in relation to a systems issue experienced by
SIAC on August 12, 2019, which impacted trade and quote dissemination
across all markets.
The text of the proposed rule change is available on the Exchange's
website at https://nasdaqbx.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 modify the manner in which it calculates
volume, liquidity and quoting thresholds applicable to billing on the
Exchange in relation to the August 12, 2019 systems issue, which
impacted trade and quote dissemination across all markets.\3\
Specifically, on August 12, 2019, SIAC \4\ determined to fail over to
back up servers after receiving indications that its primary systems
had become unstable, causing connectivity disruptions. The fail over to
secondary systems failed to cure the problem, resulting in market-wide
issues with the Consolidated Quote System and the Consolidated Tape
System, including gaps in the intra-day trades, quotes, and other
messages that were attempted to be sent to it. Consequently, the
accuracy of the transaction and quotation data for August 12, 2019 is
unknown.
---------------------------------------------------------------------------
\3\ See https://www.ctaplan.com/alerts#110000144324.
\4\ SIAC is the operator of the Consolidated Quote System and
Consolidated Tape System, which disseminate real-time trade and
quote information in New York Stock Exchange LLC (Network A) and
Bats, NYSE Arca, NYSE American and other regional exchange (Network
B) listed securities.
---------------------------------------------------------------------------
As a result, the Exchange is unable to accurately calculate member
transaction fees and credits, including calculations for the Exchange's
incentive programs, since several of the Exchange's transaction fees
and credits are based on trading, quoting and liquidity thresholds that
members must satisfy in order to qualify for the particular rates
(e.g., percentage of Consolidated Volume, Average Daily Volume, and
time at the NBBO). The Exchange therefore proposes to exclude August
12, 2019 from all tier calculations described in Equity 7, Section 118
\5\ in order to reasonably ensure that a member that would otherwise
qualify for a particular threshold during August 2019, and the
corresponding transaction rate and/or incentive, would not be
negatively impacted by the August 12, 2019 systems issue.
---------------------------------------------------------------------------
\5\ Equity 7, Section 118 provides the fees and credits for use
of the Exchange's order execution and routing services.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Sections
6(b)(4) and (5) of
[[Page 47008]]
the Act,\7\ in particular, in that it is designed to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general to protect investors and the public interest. In this
regard, because the accuracy of the transaction and quotation data
disseminated by SIAC for August 12, 2019 is unknown, the Exchange
believes that it is reasonable to exclude August 12, 2019 from all tier
calculations described in Equity 7, Section 118, which would reasonably
ensure that a member's qualification for various pricing programs would
be based on the data that the Exchange believes is accurate. The
Exchange also believes that the proposed rule change is reasonable
because the SIAC systems issue that caused inaccurate transaction and
quotation data was not within Exchange's control nor can the Exchange
correct or otherwise remediate the issue. Including August 12, 2019
transaction and quotation data for purposes of tier calculations
described in Equity 7, Section 118 could result in inaccurate
determinations for member rates based on the extent to which their
transactions and quotations were impacted by the August 12, 2019 event
in comparison to the overall inaccuracies in the data provided by SIAC
for that date. Consequently, the Exchange believes that the proposed
change is equitable and not unfairly discriminatory because it would
result in all market participants on the Exchange being treated equally
by excluding August 12, 2019 from all tier calculations described in
Equity 7, Section 118. Last, excluding August 12, 2019 from all tier
calculations described in Equity 7, Section 118 is in the public
interest because it will provide Exchange members with the closest
approximation of the fees and credits that they would have been
eligible for if accurate data for August 12, 2019 were available and
included in the monthly calculation.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
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 not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change would
treat all market participants on the Exchange equally by excluding
August 12, 2019 from all tier calculations described in Equity 7,
Section 118. Moreover, the Exchange believes that the proposed change
would enhance competition between competing marketplaces by enabling
the Exchange to fairly assess its members fees and to apply credits in
light of systems issues that occurred, which are beyond the control of
the Exchange.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
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) of the Act \8\ and Rule 19b-
4(f)(6) 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, 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 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 requested that the Commission waive the 30-day operative delay. The
Exchange begins the calculation and billing of member fees and credits
under Equity 7, Section 118 at the close of each month, and an
operative delay would disrupt the normal billing process, which may
cause expense and potential investor confusion. Therefore, 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 proposal as 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 [email protected]. Please include
File Number SR-BX-2019-029 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-BX-2019-029. 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
[[Page 47009]]
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-BX-2019-029 and should be submitted on
or before September 27, 2019.
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\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-19220 Filed 9-5-19; 8:45 am]
BILLING CODE 8011-01-P
