Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 519, MIAX PEARL Order Monitor, 55601-55603 [2019-22597]
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Federal Register / Vol. 84, No. 201 / Thursday, October 17, 2019 / Notices
including those providing sponsored or
direct market access to customers or
other persons, to implement risk
management controls and supervisory
procedures reasonably designed to
manage the financial, regulatory, and
other risks of this business activity.
The rule requires brokers or dealers to
establish, document, and maintain
certain risk management controls and
supervisory procedures as well as
regularly review such controls and
procedures, and document the review,
and remediate issues discovered to
assure overall effectiveness of such
controls and procedures. Each such
broker or dealer is required to preserve
a copy of its supervisory procedures and
a written description of its risk
management controls as part of its books
and records in a manner consistent with
Rule 17a–4(e)(7) under the Exchange
Act. Such regular review is required to
be conducted in accordance with
written procedures and is required to be
documented. The broker or dealer is
required to preserve a copy of such
written procedures, and documentation
of each such review, as part of its books
and records in a manner consistent with
Rule 17a–4(e)(7) under the Exchange
Act, and Rule 17a–4(b) under the
Exchange Act, respectively.
In addition, the Chief Executive
Officer (or equivalent officer) is required
to certify annually that the broker or
dealer’s risk management controls and
supervisory procedures comply with the
rule, and that the broker-dealer
conducted such review. Such
certifications are required to be
preserved by the broker or dealer as part
of its books and records in a manner
consistent with Rule 17a–4(b) under the
Exchange Act. Compliance with Rule
15c3–5 is mandatory.
Respondents consist of broker-dealers
with access to trading directly on an
exchange or ATS. The Commission
estimates that there are currently 570
respondents. To comply with Rule
15c3–5, these respondents will spend a
total of approximately 91,200 hours per
year (160 hours per broker-dealer × 570
broker-dealers = 91,200 hours). At an
average internal cost per burden hour of
approximately $358.51, the resultant
total related internal cost of compliance
for these respondents is $32,696,340 per
year (91,200 burden hours multiplied by
approximately $358.51/hour). In
addition, for hardware and software
expenses, the Commission estimates
that the average annual external cost
would be approximately $20,500 per
broker-dealer, or $11,685,000 in the
aggregate ($20,500 per broker-dealer ×
570 brokers and dealers = $11,685,000).
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An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to:
Lindsay.M.Abate@omb.eop.gov; and (ii)
Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Candace
Kenner, 100 F Street NE, Washington,
DC 20549, or by sending an email to:
PRA_Mailbox@sec.gov. Comments must
be submitted to OMB within 30 days of
this notice.
Dated: October 10, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–22580 Filed 10–16–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87279; File No. SR–
PEARL–2019–28]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Exchange
Rule 519, MIAX PEARL Order Monitor
October 10, 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 October 3, 2019, MIAX PEARL, LLC
(‘‘MIAX PEARL’’ or the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) a
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 is filing a proposal to
amend Exchange Rule 519, MIAX
PEARL Order Monitor (‘‘MOM’’).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Frm 00062
Fmt 4703
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/pearl at MIAX PEARL’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 PEARL Order
Monitor (‘‘MOM’’) 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
3 The term ‘‘System’’ means the automated
trading system used by the Exchange for the trading
of securities. See Exchange Rule 100.
1 15
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Federal Register / Vol. 84, No. 201 / Thursday, October 17, 2019 / Notices
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 PEARL believes that its
proposed rule change is consistent with
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. Additionally, the
proposed change is consistent with the
current System behavior as described in
the Exchange’s User Manual.6
The Exchange believes that the
proposed change to the rule text
provides further clarification to
Members,7 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
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
6 MIAX PEARL User’s Manual, August 2019, p 14,
https://www.miaxoptions.com/exchangefunctionality-data/pearl.
7 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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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
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 prior rule change.8
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
8 See Securities Exchange Release No. 84887
(December 20, 2018), 83 FR 67452 (December 28,
2018) (SR–PEARL–2018–25).
PO 00000
Frm 00063
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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 9 and Rule 19b–4(f)(6) 10
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 11 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),12 the
Commission may designate a shorter
time if such action is consistent with
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay. The Exchange believes
that waiver is consistent with the
protection of investors and the public
interest because it would remove any
ambiguity in the Exchange’s rule
concerning its handling of limit orders
to sell. The Commission believes that
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest
because the proposal does not raise any
new or novel issues and makes a nonsubstantive change to clarify the rule
text. Accordingly, the Commission
designates the proposed rule change to
be operative on upon filing.13
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
9 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.
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6).
13 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).
10 17
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Federal Register / Vol. 84, No. 201 / Thursday, October 17, 2019 / Notices
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–87292; File No. SR–
NYSEArca–2019–70]
• 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–
PEARL–2019–28 on the subject line.
Paper Comments
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the NYSE Arca
Equities Fees and Charges
October 11, 2019.
• 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–PEARL–2019–28. 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–PEARL–2019–28 and
should be submitted on or before
November 7, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Jill M. Peterson,
Assistant Secretary.
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 October
1, 2019, NYSE Arca, Inc. (‘‘NYSE Arca’’
or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the 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 proposes to amend the
NYSE Arca Equities Fees and Charges
(‘‘Fee Schedule’’) to (1) modify the
requirements associated with the Step
Up Tier 4, and (2) adopt a new pricing
tier, Tape B Step Up Tier. The Exchange
proposes to implement the fee changes
effective October 1, 2019. The proposed
rule 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
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.
[FR Doc. 2019–22597 Filed 10–16–19; 8:45 am]
BILLING CODE 8011–01–P
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
14 17
CFR 200.30–3(a)(12).
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55603
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Fee Schedule to (1) modify the volume
requirements applicable to ETP Holders
(including Market Makers) to qualify for
the per share credits for orders that
provide displayed liquidity under the
Step Up Tier 4,4 and (2) adopt a new
pricing tier, the Tape B Step Up Tier.
The proposed changes respond to the
current competitive environment where
order flow providers have a choice of
where to direct liquidity-providing
orders by offering further incentives for
ETP Holders 5 to send additional
displayed liquidity to the Exchange.
The Exchange proposes to implement
the fee changes effective October 1,
2019.
Background
The Commission has repeatedly
expressed its preference for competition
over regulatory intervention in
determining prices, products, and
services in the securities markets. In
Regulation NMS, the Commission
highlighted the importance of market
forces in determining prices and SRO
revenues and, also, recognized that
current regulation of the market system
‘‘has been remarkably successful in
promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 6
As the Commission itself recognized,
the market for trading services in NMS
stocks has become ‘‘more fragmented
and competitive.’’ 7 Indeed, equity
trading is currently dispersed across 13
exchanges,8 31 alternative trading
systems,9 and numerous broker-dealer
internalizers and wholesalers, all
competing for order flow. Based on
publicly-available information for
4 See Securities Exchange Act Release No. 85311
(March 14, 2019), 84 FR 10348 (March 20, 2019)
(SR–NYSEArca–2019–10).
5 All references to ETP Holders in connection
with the Step Up Tier 4 and the Tape B Step Up
Tier include Market Makers.
6 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
7 See Securities Exchange Act Release No. 51808,
84 FR 5202, 5253 (February 20, 2019) (File No. S7–
05–18) (Final Rule).
8 See Cboe U.S Equities Market Volume
Summary, available at https://markets.cboe.com/us/
equities/market_share. See generally https://
www.sec.gov/fast-answers/
divisionsmarketregmrexchangesshtml.html.
9 See FINRA ATS Transparency Data, available at
https://otctransparency.finra.org/otctransparency/
AtsIssueData. A list of alternative trading systems
registered with the Commission is available at
https://www.sec.gov/foia/docs/atslist.htm.
E:\FR\FM\17OCN1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 201 (Thursday, October 17, 2019)]
[Notices]
[Pages 55601-55603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22597]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87279; File No. SR-PEARL-2019-28]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange
Rule 519, MIAX PEARL Order Monitor
October 10, 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 October 3, 2019, MIAX PEARL, LLC (``MIAX
PEARL'' or the ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') a 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 is filing a proposal to amend Exchange Rule 519, MIAX
PEARL Order Monitor (``MOM'').
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxoptions.com/rule-filings/pearl at MIAX
PEARL'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 PEARL Order
Monitor (``MOM'') 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
[[Page 55602]]
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 PEARL believes that its proposed rule change is consistent
with 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. Additionally, the proposed
change is consistent with the current System behavior as described in
the Exchange's User Manual.\6\
---------------------------------------------------------------------------
\6\ MIAX PEARL User's Manual, August 2019, p 14, https://www.miaxoptions.com/exchange-functionality-data/pearl.
---------------------------------------------------------------------------
The Exchange believes that the proposed change to the rule text
provides further clarification to Members,\7\ 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.
---------------------------------------------------------------------------
\7\ 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.
---------------------------------------------------------------------------
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 prior
rule change.\8\
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\8\ See Securities Exchange Release No. 84887 (December 20,
2018), 83 FR 67452 (December 28, 2018) (SR-PEARL-2018-25).
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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 \9\ and Rule 19b-4(f)(6) \10\
thereunder.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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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A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\12\ the Commission
may designate a shorter time if such action is consistent with
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay. The Exchange
believes that waiver is consistent with the protection of investors and
the public interest because it would remove any ambiguity in the
Exchange's rule concerning its handling of limit orders to sell. The
Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest
because the proposal does not raise any new or novel issues and makes a
non-substantive change to clarify the rule text. Accordingly, the
Commission designates the proposed rule change to be operative on upon
filing.\13\
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ 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 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
[[Page 55603]]
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-PEARL-2019-28 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-PEARL-2019-28. 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-PEARL-2019-28 and should be submitted on
or before November 7, 2019.
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\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-22597 Filed 10-16-19; 8:45 am]
BILLING CODE 8011-01-P
