Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 519, MIAX Emerald Order Monitor, 47608-47610 [2019-19466]
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47608
Federal Register / Vol. 84, No. 175 / Tuesday, September 10, 2019 / Notices
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 such
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–NYSENAT–2019–19, and
should be submitted on or before
October 1, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–19460 Filed 9–9–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86700A; File No. SR–
FINRA–2019–017]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Order Approving a
Proposed Rule Change To Amend
FINRA Rules 2210 (Communications
With the Public) and 2241 (Research
Analysts and Research Reports);
Correction
September 4, 2019.
Securities and Exchange
Commission.
ACTION: Notice; correction.
AGENCY:
The Securities and Exchange
Commission published a document in
the Federal Register on August 22,
2019, concerning a Financial Industry
Regulatory Authority, Inc., Order
Approving a Proposed Rule Change to
Amend FINRA Rules 2210
(Communications with the Public) and
2241 (Research Analysts and Research
Reports). The document contained a
typographical error.
FOR FURTHER INFORMATION CONTACT:
Daniel Fisher, Division of Trading and
Markets, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549, (202) 551–5550.
khammond on DSKBBV9HB2PROD with NOTICES
SUMMARY:
Correction
In the Federal Register of August 22,
2019 in FR Doc. 2019–18076, on page
43836, in the third and fourth lines
under the heading ‘‘Conclusion’’ in the
second column, correct the reference to
‘‘(SR–FINRA–2018–019)’’ instead to
‘‘(SR–FINRA–2019–017).’’
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–19465 Filed 9–9–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86864; File No. SR–
EMERALD–2019–32]
Self-Regulatory Organizations; MIAX
Emerald, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Exchange
Rule 519, MIAX Emerald Order Monitor
September 4, 2019.
Pursuant to the provisions of 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 30, 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 Exchange Rule 519, MIAX
Emerald Order Monitor.
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/emerald at MIAX Emerald’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
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
CFR 200.30–3(a)(12).
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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
Exchange Rule 519, MIAX Emerald
Order Monitor, to remove a term in the
Exchange’s rule which creates an
ambiguity concerning the application of
the rule. Specifically, subsection (4) of
paragraph (a), Limit Orders to Sell,
provides that ‘‘[f]or options with a
National Best Bid (‘‘NBB’’) equal to or
greater than $0.25 the System 3 will
reject an incoming limit order that has
a limit price equal to or less than the
NBB by the lesser of (i) $2.50, or (ii)
50% of the NBB price.’’ The second
provision of the rule provides that,
‘‘[f]or options with an NBB of $0.25 or
less the System will accept any
incoming limit order.’’
The statements an NBB ‘‘equal to or
greater than $0.25’’ and ‘‘an NBB of
$0.25 or less’’ both contemplate the NBB
being equal to $0.25. The operation of
the rule requires a bifurcation at $0.25
and only one action (accepting or
rejecting an incoming order) can occur
when the NBB is equal to $0.25. The
desired behavior by the Exchange, for
limit orders to sell, is to accept an order
at any price when the NBB is equal to
$0.25 or less. Therefore the Exchange
proposes to remove the phrase ‘‘equal to
or’’ from the first sentence in the rule.
The new proposed rule text will
provide that, ‘‘[f]or options with a
National Best Bid (‘‘NBB’’) greater than
$0.25 the System will reject an
incoming limit order that has a limit
price equal to or less than the NBB by
the lesser of (i) $2.50, or (ii) 50% of the
NBB price. For options with an NBB of
$0.25 or less the System will accept any
incoming limit order.
The Exchange believes its proposed
change provides additional detail and
clarity to the Exchange’s rule and
eliminates any inadvertent ambiguity in
the rule text concerning order
protections for incoming limit orders to
sell.
2. Statutory Basis
MIAX Emerald believes that its
proposed rule change is consistent with
3 The term ‘‘System’’ means the automated
trading system used by the Exchange for the trading
of securities. See Exchange Rule 100.
1 15
27 17
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.
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khammond on DSKBBV9HB2PROD with NOTICES
Federal Register / Vol. 84, No. 175 / Tuesday, September 10, 2019 / Notices
Section 6(b) of the Act 4 in general, and
furthers the objectives of Section 6(b)(5)
of the Act 5 in particular, in that it is
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
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
The Exchange believes its proposal
promotes just and equitable principles
of trade, removes impediments to and
perfects the mechanisms of a free and
open market and a national market
system, and in general, protects
investors and the public interest by
providing clarity and precision in the
Exchange’s rule text.
The Exchange believes that the
proposed change to the rule text
provides further clarification to
Members,6 investors, and the public,
regarding the Exchange’s handling of
limit orders to sell. The Exchange
believes it is in the interest of investors
and the public to accurately describe the
behavior of the Exchange’s System in its
rules as this information may be used by
investors to make decisions concerning
the submission of their orders.
Transparency and clarity are consistent
with the Act because it removes
impediments to and helps perfect the
mechanism of a free and open market
and a national market system, and, in
general, protects investors and the
public interest by accurately describing
the behavior of the Exchange’s System.
The Exchange believes that the
proposed change promotes just and
equitable principles of trade and
removes impediments to and perfects
the mechanism of a free and open
market and a national market system
and, in general, protects investors and
the public interest by providing
additional detail and clarity in the
Exchange’s rules. Further, the
Exchange’s proposal provides
transparency and clarity in the rule and
is consistent with the Act because it
removes impediments to and helps
perfect the mechanism of a free and
open market and a national market
system, and, in general, protects
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
6 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.
5 15
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Jkt 247001
investors and the public interest by
accurately describing the behavior of the
Exchange’s System. In particular, the
Exchange believes that the proposed
rule change will provide greater clarity
to Members and the public regarding the
Exchange’s Rules, and it is in the public
interest for rules to be accurate and
concise so as to eliminate the potential
for confusion.
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 is designed to
remove an unintentional ambiguity
introduced in a recent rule change.7
The Exchange does not believe that
the proposed rule change will impose
any burden on inter-market competition
as the Rules apply equally to all
Exchange Members. The proposed rule
change is not a competitive filing and is
intended to improve the clarity and
precision of the Exchange’s rule text.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor 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 after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to 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
7 See Securities Exchange Release No. 85164
(February 19, 2019), 84 FR 6036 (February 25, 2019)
(SR–EMERALD–2019–03).
8 15 U.S.C. 78s(b)(3)(A).
9 17 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.
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47609
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
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–
EMERALD–2019–32 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–EMERALD–2019–32. 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–EMERALD–2019–32 and
E:\FR\FM\10SEN1.SGM
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47610
Federal Register / Vol. 84, No. 175 / Tuesday, September 10, 2019 / Notices
should be submitted on or before
October 1, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–19466 Filed 9–9–19; 8:45 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86868; File No. SR–
NYSEArca–2019–61]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change To Amend the NYSE Arca
Options Fees and Charges and the
NYSE Arca Equities Fees and Charges
Related to Co-Location Services
September 4, 2019.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on August
22, 2019, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or the ‘‘Exchange’’) 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 self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
khammond on DSKBBV9HB2PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
NYSE Arca Options Fees and Charges
(the ‘‘Options Fee Schedule’’) and the
NYSE Arca Equities Fees and Charges
(the ‘‘Equities Fee Schedule’’ and,
together with the Options Fee Schedule,
the ‘‘Fee Schedules’’) related to colocation services to provide access to
NMS feeds. The proposed change is
available on the Exchange’s website at
www.nyse.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
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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16:56 Sep 09, 2019
Jkt 247001
and discussed any comments it received
on the proposed rule change. The text
of those 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 parts of such
statements.
1. Purpose
The Exchange proposes to amend the
Fee Schedules related to co-location 4
services offered by the Exchange to
provide Users 5 with an alternate,
dedicated network connection to access
the NMS feeds for which the Securities
Industry Automation Corporation
(‘‘SIAC’’) is engaged as the securities
information processor (‘‘SIP’’).6
As described below, today Users can
connect to Regulation NMS equities and
options feeds 7 disseminated by the SIP
using either of the co-location local area
networks. Users do not pay an
additional charge to connect to the NMS
feeds: It comes with their connection to
the local area network.
The Exchange has recently been
authorized to build a new network in
the Mahwah data center (the ‘‘NMS
network’’) that will only connect to the
NMS feeds. The new network will
connect to the NMS feeds faster than
either of the existing local area
networks. The Exchange believes that
under most circumstances, none of the
Users that currently connect to the NMS
4 The Exchange initially filed rule changes
relating to its co-location services with the
Commission in 2010. See Securities Exchange Act
Release No. 63275 (November 8, 2010), 75 FR 70048
(November 16, 2010) (SR–NYSEArca–2010–100).
The Exchange operates a data center in Mahwah,
New Jersey (the ‘‘data center’’) from which it
provides co-location services to Users.
5 For purposes of the Exchange’s co-location
services, a ‘‘User’’ means any market participant
that requests to receive co-location services directly
from the Exchange. See Securities Exchange Act
Release No. 76010 (September 29, 2015), 80 FR
60197 (October 5, 2015) (SR–NYSEArca–2015–82).
As specified in the Fee Schedules, a User that
incurs co-location fees for a particular co-location
service pursuant thereto would not be subject to colocation fees for the same co-location service
charged by the Exchange’s affiliates New York
Stock Exchange LLC (‘‘NYSE’’), NYSE American
LLC (‘‘NYSE American’’), and NYSE National, Inc.
(‘‘NYSE National’’ and together, the ‘‘Affiliate
SROs’’). See Securities Exchange Act Release No.
70173 (August 13, 2013), 78 FR 50459 (August 19,
2013) (SR–NYSEArca–2013–80).
6 See Securities Exchange Act Release No. 79729
(January 4, 2017), 82 FR 3061 (January 10, 2017)
(SR–NYSEArca–2016–172).
7 The NMS feeds include the Consolidated Tape
System and Consolidated Quote System data
streams, as well as Options Price Reporting
Authority (‘‘OPRA’’) feeds. See id.
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Frm 00137
Fmt 4703
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feeds will have to pay any additional
fees to connect to the NMS network. As
described in detail below, there are
limited circumstances when a User may
incur a unique fee to connect to the
NMS network. However, the Exchange
does not expect to earn net revenue
from any such fees for connecting to the
NMS network.
As explained in more detail below,
the Exchange proposes to amend the
General Notes to provide that:
a. Users will have the option to use
the NMS network or either of the
existing local area networks to connect
to the NMS feeds.
b. For each connection a User and its
Affiliates have to the local area
networks, the User and its Affiliates,
together, will get a free connection to
the NMS network, subject to a
maximum limit of eight, so long as the
User meets the requirements set forth
below.
c. If a User wants to separately
purchase an NMS network connection,
it would pay the same fee as the samesized 10 Gigabit (‘‘Gb’’) or 40 Gb
internet protocol (‘‘IP’’) network circuit.
Subject to approval of this proposed
rule change, the Exchange proposes to
implement the rule change on the first
day of the month after the NMS network
is available. The Exchange will
announce the implementation date
through a customer notice.
Background
The Exchange’s affiliate, SIAC, is
engaged as the SIP for three separate
Regulation NMS plans (collectively, the
‘‘NMS Plans’’).8 SIAC operates as the
SIP for the NMS Plans in the same data
center where the Exchange and its
Affiliate SROs operate. In that data
center, Users can access SIAC as the SIP
over the same network connections
through which they access other
services. Specifically, a User can access
the SIAC SIP environment via either the
IP network or the Liquidity Center
8 SIAC has been engaged as the SIP to, among
other things, receive, process, validate and
disseminate: (1) Last-sale price information in Tape
A and Tape B-listed securities pursuant to the CTA
Plan (‘‘CTA Plan’’), which is available here: https://
www.nyse.com/publicdocs/ctaplan/notifications/
trader-update/CTA%20Plan%20-%20
Composite%20as%20of%20August
%2027,%202018.pdf; (2) quotation information in
Tape A and B-listed securities pursuant to the CQ
Plan (‘‘CQ Plan’’), which is available here: https://
www.nyse.com/publicdocs/ctaplan/notifications/
trader-update/CQ_Plan_Composite_as_of_July_9_
2018.pdf; and (3) quotation and last-sale price
information in all exchange options trading
pursuant to the OPRA Plan (‘‘OPRA Plan’’), which
is available here: https://uploads-ssl.webflow.com/
5ba40927ac854d8c97bc92d7/5bf419a6b7c4f
5085340f9af_opra_plan.pdf.
E:\FR\FM\10SEN1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 175 (Tuesday, September 10, 2019)]
[Notices]
[Pages 47608-47610]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19466]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86864; File No. SR-EMERALD-2019-32]
Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Exchange Rule 519, MIAX Emerald Order Monitor
September 4, 2019.
Pursuant to the provisions of 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 30, 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.
---------------------------------------------------------------------------
\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 is filing a proposal to amend Exchange Rule 519, MIAX
Emerald Order Monitor.
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxoptions.com/rule-filings/emerald at MIAX
Emerald'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 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 Exchange Rule 519, MIAX Emerald
Order Monitor, to remove a term in the Exchange's rule which creates an
ambiguity concerning the application of the rule. Specifically,
subsection (4) of paragraph (a), Limit Orders to Sell, provides that
``[f]or options with a National Best Bid (``NBB'') equal to or greater
than $0.25 the System \3\ will reject an incoming limit order that has
a limit price equal to or less than the NBB by the lesser of (i) $2.50,
or (ii) 50% of the NBB price.'' The second provision of the rule
provides that, ``[f]or options with an NBB of $0.25 or less the System
will accept any incoming limit order.''
---------------------------------------------------------------------------
\3\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
---------------------------------------------------------------------------
The statements an NBB ``equal to or greater than $0.25'' and ``an
NBB of $0.25 or less'' both contemplate the NBB being equal to $0.25.
The operation of the rule requires a bifurcation at $0.25 and only one
action (accepting or rejecting an incoming order) can occur when the
NBB is equal to $0.25. The desired behavior by the Exchange, for limit
orders to sell, is to accept an order at any price when the NBB is
equal to $0.25 or less. Therefore the Exchange proposes to remove the
phrase ``equal to or'' from the first sentence in the rule.
The new proposed rule text will provide that, ``[f]or options with
a National Best Bid (``NBB'') greater than $0.25 the System will reject
an incoming limit order that has a limit price equal to or less than
the NBB by the lesser of (i) $2.50, or (ii) 50% of the NBB price. For
options with an NBB of $0.25 or less the System will accept any
incoming limit order.
The Exchange believes its proposed change provides additional
detail and clarity to the Exchange's rule and eliminates any
inadvertent ambiguity in the rule text concerning order protections for
incoming limit orders to sell.
2. Statutory Basis
MIAX Emerald believes that its proposed rule change is consistent
with
[[Page 47609]]
Section 6(b) of the Act \4\ in general, and furthers the objectives of
Section 6(b)(5) of the Act \5\ in particular, in that it is 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 mechanisms of
a free and open market and a national market system and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes its proposal promotes just and equitable
principles of trade, removes impediments to and perfects the mechanisms
of a free and open market and a national market system, and in general,
protects investors and the public interest by providing clarity and
precision in the Exchange's rule text.
The Exchange believes that the proposed change to the rule text
provides further clarification to Members,\6\ investors, and the
public, regarding the Exchange's handling of limit orders to sell. The
Exchange believes it is in the interest of investors and the public to
accurately describe the behavior of the Exchange's System in its rules
as this information may be used by investors to make decisions
concerning the submission of their orders. Transparency and clarity are
consistent with the Act because it removes impediments to and helps
perfect the mechanism of a free and open market and a national market
system, and, in general, protects investors and the public interest by
accurately describing the behavior of the Exchange's System.
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\6\ 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.
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The Exchange believes that the proposed change promotes just and
equitable principles of trade and removes impediments to and perfects
the mechanism of a free and open market and a national market system
and, in general, protects investors and the public interest by
providing additional detail and clarity in the Exchange's rules.
Further, the Exchange's proposal provides transparency and clarity in
the rule and is consistent with the Act because it removes impediments
to and helps perfect the mechanism of a free and open market and a
national market system, and, in general, protects investors and the
public interest by accurately describing the behavior of the Exchange's
System. In particular, the Exchange believes that the proposed rule
change will provide greater clarity to Members and the public regarding
the Exchange's Rules, and it is in the public interest for rules to be
accurate and concise so as to eliminate the potential for confusion.
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 is
designed to remove an unintentional ambiguity introduced in a recent
rule change.\7\
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\7\ See Securities Exchange Release No. 85164 (February 19,
2019), 84 FR 6036 (February 25, 2019) (SR-EMERALD-2019-03).
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The Exchange does not believe that the proposed rule change will
impose any burden on inter-market competition as the Rules apply
equally to all Exchange Members. The proposed rule change is not a
competitive filing and is intended to improve the clarity and precision
of the Exchange's rule text.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor 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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) \9\
thereunder.
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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)
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.
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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 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- EMERALD-2019-32 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-EMERALD-2019-32. 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-EMERALD-2019-32 and
[[Page 47610]]
should be submitted on or before October 1, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-19466 Filed 9-9-19; 8:45 am]
BILLING CODE 8011-01-P
