Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Paragraph (a) of Rule 11.1 To Allow the Exchange To Accept Stop Orders Entered Between 6:00 and 7:00 a.m. Eastern Time, 65854-65856 [2019-25840]
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65854
Federal Register / Vol. 84, No. 230 / Friday, November 29, 2019 / Notices
determination for the life of the UIT and
for five years thereafter. We estimate
that 1,385 newly registered UITs will be
subject to the UIT liquidity
determination requirement under rule
22e–4 each year. We estimate that the
total burden for the initial
documentation and review of UIT
funds’ written liquidity risk
management program would be 13,850
hours. We estimate that the total burden
for recordkeeping related to UIT
liquidity risk management programs
will be 2,770 hours.
Compliance with the collection of
information requirements of the rule is
necessary to obtain the benefit of relying
on the rule. An agency may not conduct
or sponsor, and a person is not required
to respond to, a collection of
information unless it displays a
currently valid control number.
Written comments are invited on: (a)
Whether the collection of information is
necessary for the proper performance of
the functions of the Commission,
including whether the information has
practical utility; (b) the accuracy of the
Commission’s estimate of the burden of
the collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days after this
publication.
Please direct your written comments
to Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
Mailbox@sec.gov.
SECURITIES AND EXCHANGE
COMMISSION
Dated: November 25, 2019.
Eduardo A. Aleman,
Deputy Secretary.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2019–25868 Filed 11–27–19; 8:45 am]
khammond on DSKJM1Z7X2PROD with NOTICES
BILLING CODE 8011–01–P
[Release No. 34–87602; File No. SR–
CboeBYX–2019–022]
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend
Paragraph (a) of Rule 11.1 To Allow the
Exchange To Accept Stop Orders
Entered Between 6:00 and 7:00 a.m.
Eastern Time
November 22, 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 November
19, 2019, Cboe BYX Exchange, Inc.
(‘‘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
Cboe BYX Exchange, Inc. (‘‘BYX’’ or
the ‘‘Exchange’’) is filing with the
Securities and Exchange Commission
(the ‘‘Commission’’) a proposed rule
change to amend paragraph (a) of Rule
11.1 to allow the Exchange to accept
Stop Orders entered between 6:00 and
7:00 a.m. Eastern Time. The text of the
proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/byx/), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
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
1 15
2 17
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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
paragraph (a) of Rule 11.1 to allow the
Exchange to accept Stop Orders 3
entered between 6:00 and 7:00 a.m.
Eastern Time.
Paragraph (a) of Rule 11.1 provides
that orders entered between 6:00 a.m.
and 7:00 a.m. Eastern Time are not
eligible for execution until the start of
the Early Trading Session,4 Pre-Opening
Session 5 or Regular Trading Hours,6
depending on the Time in Force
selected by the User.7 Paragraph (a) also
provides that the Exchange will not
accept certain orders 8 entered prior to
7:00 a.m. Eastern Time including BYX
Market Orders 9 with a Time in Force
other than Regular Hours Only
(‘‘RHO’’).10 BYX Market Orders with a
Time in Force other than RHO are
rejected by the Exchange prior to 7:00
a.m. Eastern Time because BYX Market
Orders are not eligible to trade prior to
the start of Regular Trading Hours and
such orders are generally not designated
to queue for later entry onto the
Exchange’s order book. Rather, BYX
Market Orders with a Time in Force
other than RHO are designed to
immediately execute at the NBBO when
3 A Stop Order is an order that becomes a BYX
market order when the stop price is elected. A Stop
Order to buy is elected when the consolidated last
sale in the security occurs at, or above, the specified
stop price. A Stop Order to sell is elected when the
consolidated last sale in the security occurs at, or
below, the specified stop price. See Exchange Rule
11.9(c)(16).
4 See Exchange Rule 1.5(ee).
5 See Exchange Rule 1.5(r).
6 See Exchange Rule 1.5(w).
7 See Exchange Rule 1.5(cc).
8 Specifically, Exchange Rule 11.1(a) provides
that BYX Post Only Orders, Partial Post Only at
Limit Orders, Intermarket Sweep Orders (‘‘ISOs’’),
BYX Market Orders with a Time in Force other than
Regular Hours Only, Minimum Quantity Orders
that also include a Time in Force of Regular Hours
Only, RPI Orders and all orders with a Time in
Force of Immediate-or-Cancel (‘‘IOC’’) or Fill-or-Kill
(‘‘FOK’’) are not accepted if entered prior to 7:00
a.m. Eastern Time.
9 A BYX Market Order is an ‘‘order to buy or sell
a stated amount of a security that is to be executed
at the NBBO when the order reaches the Exchange.
BYX market orders shall not trade through
Protected Quotations . . . BYX Market Orders are
not eligible for execution during the Early Trading
Session, Pre-Opening Session or the After Hours
Trading Session.’’ See Exchange Rule 11.9(a)(2).
10 RHO refers to a ‘‘limit or market order that is
designated for execution only during Regular
Trading Hours, which includes the Opening
Process, as defined in Rule 11.23.’’ See Exchange
Rule 11.9(b)(7).
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the order reaches the Exchange, and
thus are generally intended for entry
during a trading session where
continuous trading is occurring.
Alternatively, other order types and
modifiers, such as BYX Market Orders
with a Time in Force of RHO and Limit
Orders,11 including Stop Limit Orders,12
are allowed for entry on the Exchange
between 6:00 and 7:00 a.m. Eastern
Time as those order types and modifiers
are consistent with an order designated
to queue for later entry on to the
Exchange’s order book. Specifically,
BYX Market Orders with a Time in
Force of RHO are effectively for use in
the Opening Auction and are cancelled
if not executed in the Opening
Auction.13 Therefore, BYX Market
Orders with a Time in Force of RHO
would be queued until the start of the
regular trading session for participation
in the Opening Auction. Similarly, the
stop price of a Stop Limit Order can
only be triggered by a consolidated last
sale eligible trade.14 Therefore, a Stop
Limit Order would be queued until the
time the stop price of the order is
triggered by a consolidated last sale
eligible trade occurring Regular Trading
Hours.
As proposed, the amendment would
allow the Exchange to accept Stop
Orders entered between 6:00 and 7:00
a.m. Eastern Time, which is consistent
with an order designated to queue for
later entry on to the Exchange’s order
book. Similar to a Stop Limit Order, the
stop price of a Stop Order can only be
triggered by a consolidated last sale
eligible trade.15 Therefore, a Stop Order
can only become a BYX Market Order
after at least the start of Regular Trading
Hours. Further, Stop Orders entered on
the Exchange between 6:00 and 7:00
a.m. Eastern Time would behave similar
to Stop Limit Orders between the time
of entry up to at least the start of Regular
Trading Hours.
11 A Limit Order is an ‘‘order to buy or sell a
stated amount of a security at a specified price or
better.’’ See Exchange Rule 11.9(a)(1).
12 A Stop Limit Order is ‘‘an order that becomes
a limit order when the stop price is elected. A Stop
Limit Order to buy is elected when the consolidated
last sale in the security occurs at, or above, the
specified stop price. A Stop Limit Order to sell
becomes a sell limit order when the consolidated
last sale in the security occurs at, or below, the
specified stop price.’’ See Exchange Rule
11.9(c)(17).
13 An order with a Time in Force of RHO is a limit
or market order that is designated for execution
only during Regular Trading Hours, which includes
the Opening Auction and Closing Auction. See
Exchange Rule 11.9(b)(7).
14 See supra note 12.
15 See supra note 3.
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2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.16 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 17 requirements that the rules of
an exchange be designed to promote just
and equitable principles of trade, to
foster cooperation and coordination
with persons engaged in regulating,
clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
As discussed above, all Stop Orders
are designed to queue until at least the
start of Regular Trading Hours as such
orders are only eligible to be elected
based on the consolidated last sale set
during Regular Trading Hours.
Therefore, the proposed amendment to
allow the entry of Stop Orders between
6:00 and 7:00 a.m. Eastern Time would
not allow such Stop Orders to be elected
and execute prior to the start of Regular
Trading Hours. Prior to the start of
Regular Trading Hours, Stop Orders
entered between 6:00 and 7:00 a.m.
Eastern Time would behave similar to
Stop Limit Orders entered during that
time. Therefore, the Exchange believes
the proposed amendment would
consistently allow order types and
modifiers that are consistent with orders
designated to queue to be entered on the
Exchange between 6:00 and 7:00 a.m.
Eastern Time.
Additionally, the Exchange believes
the proposed amendment would allow
Members the convenience to enter all
Stop Orders and Stop Limit Orders
between 6:00 and 7:00 a.m. Eastern
Time without those orders being eligible
for election, and consequently
execution, until at least the start of the
Regular Trading Hours. Thus, the
proposed amendment would provide
Members with both greater convenience
and flexibility in managing their Stop
Orders and Stop Limit Orders without
impacting how those orders trade.
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
16 15
17 15
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Fmt 4703
necessary or appropriate in furtherance
of the purposes of the Act. Rather, the
proposed rule change would
consistently allow for the entry of order
types and modifiers that are designated
to queue between 6:00 and 7:00 a.m.
Eastern Time. Stop Limit Orders are
currently allowed for entry on the
Exchange between 6:00 and 7:00 a.m.
Eastern Time and behave similar to the
manner in which a Stop Order would
behave prior to the start of Regular
Trading Hours if allowed entry during
that time. The Exchange therefore
believes that the proposed rule change
would increase consistency around the
operation of the Exchange to the benefit
of Members and investors as well as
provide greater flexibility to Members in
managing their Stop Orders, without
imposing any significant burden on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not:
(i) significantly affect the protection of
investors or the public interest;
(ii) impose any significant burden on
competition; and
(iii) become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 18 and Rule 19b–4(f)(6) 19
thereunder.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
18 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
19 17
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CFR 240.19b–4(f)(6).
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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–
CboeBYX–2019–022 on the subject line.
khammond on DSKJM1Z7X2PROD with NOTICES
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–CboeBYX–2019–022. 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–CboeBYX–2019–022, and
should be submitted on or before
December 20, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–25840 Filed 11–27–19; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
the most significant aspects of such
statements.
[Release No. 34–87592; File No. SR–
CboeEDGA–2019–020]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend
Subparagraph (a)(1) of Rule 11.1 To
Allow the Exchange To Accept Market
Orders With a Stop Price Entered
Between 6:00 and 7:00 a.m. Eastern
Time
November 22, 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 November
19, 2019, Cboe EDGA Exchange, Inc.
(‘‘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
Cboe EDGA Exchange, Inc. (‘‘EDGA’’
or the ‘‘Exchange’’) is filing with the
Securities and Exchange Commission
(the ‘‘Commission’’) a proposed rule
change to amend subparagraph (a)(1) of
Rule 11.1 to allow the Exchange to
accept Market Orders with a Stop Price
entered between 6:00 and 7:00 a.m.
Eastern Time. The text of the proposed
rule change is provided in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/edga/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
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
BILLING CODE 8011–01–P
1 15
20 17
CFR 200.30–3(a)(12).
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1. Purpose
The Exchange proposes to amend
subparagraph (a)(1) of Rule 11.1 to allow
the Exchange to accept Market Orders 3
with a Stop Price 4 (a ‘‘Stop Order’’)
entered between 6:00 and 7:00 a.m.
Eastern Time.
Subparagraph (a)(1) of Rule 11.1
provides that orders entered between
6:00 a.m. and 7:00 a.m. Eastern Time are
not eligible for execution until the start
of the Early Trading Session,5 PreOpening Session 6 or Regular Trading
Hours,7 depending on the Time in Force
selected by the User.8 Subparagraph
(a)(1) also provides that the Exchange
will not accept certain orders 9 entered
prior to 7:00 a.m. Eastern Time
including Market Orders with a Time in
Force other than Regular Hours Only
(‘‘RHO’’).10 Market Orders with a Time
in Force other than RHO are rejected by
the Exchange prior to 7:00 a.m. Eastern
Time because Market Orders are not
eligible to trade prior to the start of
Regular Trading Hours and such orders
are generally not designated to queue for
later entry onto the Exchange’s order
book. Rather, Market Orders with a
Time in Force other than RHO are
designed to immediately execute at the
NBBO when the order reaches the
Exchange, and thus are generally
3 A Market Order is an order to buy or sell a stated
amount of a security that is to be executed at the
NBBO or better when the order reaches the
Exchange. See Exchange Rule 11.8(a).
4 A Market Order ‘‘may include a Stop Price
which will convert the order into a Market Order
when the Stop Price is triggered. An order to buy
converts to a Market Order when the consolidated
last sale in the security occurs at, or above, the
specified Stop Price. An order to sell converts into
a Market Order when the consolidated last sale in
the security occurs at, or below, the specified Stop
Price.’’ See Exchange Rule 11.8(a)(1).
5 See Exchange Rule 1.5(ii).
6 See Exchange Rule 1.5(s).
7 See Exchange Rule 1.5(y).
8 See Exchange Rule 1.5(ee).
9 Specifically, Exchange Rule11.1(a)(1) provides
that orders with a Post Only instruction,
Intermarket Sweep Orders (‘‘ISOs’’), Market Orders
with a Time in Force instruction other that Regular
Hours Only, orders with a Minimum Execution
Quantity instruction that also include a Time in
Force instruction of Regular Hours Only, and all
orders with a Time in Force of Immediate-or-Cancel
(‘‘IOC’’) or Fill-or-Kill (‘‘FOK’’) are not accepted if
entered prior to 7:00 a.m. Eastern Time.
10 RHO is an ‘‘instruction a User may attach to an
order designating it for execution only during
Regular Trading Hours, which includes the
Opening Process and Re-Opening Process following
a halt suspension or pause.’’ See Exchange Rule
11.6(q)(6).
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]]>Agencies
[Federal Register Volume 84, Number 230 (Friday, November 29, 2019)]
[Notices]
[Pages 65854-65856]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25840]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87602; File No. SR-CboeBYX-2019-022]
Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Paragraph (a) of Rule 11.1 To Allow the Exchange To Accept Stop Orders
Entered Between 6:00 and 7:00 a.m. Eastern Time
November 22, 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 November 19, 2019, Cboe BYX Exchange, Inc. (``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
Cboe BYX Exchange, Inc. (``BYX'' or the ``Exchange'') is filing
with the Securities and Exchange Commission (the ``Commission'') a
proposed rule change to amend paragraph (a) of Rule 11.1 to allow the
Exchange to accept Stop Orders entered between 6:00 and 7:00 a.m.
Eastern Time. The text of the proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/equities/regulation/rule_filings/byx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed 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 paragraph (a) of Rule 11.1 to allow
the Exchange to accept Stop Orders \3\ entered between 6:00 and 7:00
a.m. Eastern Time.
---------------------------------------------------------------------------
\3\ A Stop Order is an order that becomes a BYX market order
when the stop price is elected. A Stop Order to buy is elected when
the consolidated last sale in the security occurs at, or above, the
specified stop price. A Stop Order to sell is elected when the
consolidated last sale in the security occurs at, or below, the
specified stop price. See Exchange Rule 11.9(c)(16).
---------------------------------------------------------------------------
Paragraph (a) of Rule 11.1 provides that orders entered between
6:00 a.m. and 7:00 a.m. Eastern Time are not eligible for execution
until the start of the Early Trading Session,\4\ Pre-Opening Session
\5\ or Regular Trading Hours,\6\ depending on the Time in Force
selected by the User.\7\ Paragraph (a) also provides that the Exchange
will not accept certain orders \8\ entered prior to 7:00 a.m. Eastern
Time including BYX Market Orders \9\ with a Time in Force other than
Regular Hours Only (``RHO'').\10\ BYX Market Orders with a Time in
Force other than RHO are rejected by the Exchange prior to 7:00 a.m.
Eastern Time because BYX Market Orders are not eligible to trade prior
to the start of Regular Trading Hours and such orders are generally not
designated to queue for later entry onto the Exchange's order book.
Rather, BYX Market Orders with a Time in Force other than RHO are
designed to immediately execute at the NBBO when
[[Page 65855]]
the order reaches the Exchange, and thus are generally intended for
entry during a trading session where continuous trading is occurring.
Alternatively, other order types and modifiers, such as BYX Market
Orders with a Time in Force of RHO and Limit Orders,\11\ including Stop
Limit Orders,\12\ are allowed for entry on the Exchange between 6:00
and 7:00 a.m. Eastern Time as those order types and modifiers are
consistent with an order designated to queue for later entry on to the
Exchange's order book. Specifically, BYX Market Orders with a Time in
Force of RHO are effectively for use in the Opening Auction and are
cancelled if not executed in the Opening Auction.\13\ Therefore, BYX
Market Orders with a Time in Force of RHO would be queued until the
start of the regular trading session for participation in the Opening
Auction. Similarly, the stop price of a Stop Limit Order can only be
triggered by a consolidated last sale eligible trade.\14\ Therefore, a
Stop Limit Order would be queued until the time the stop price of the
order is triggered by a consolidated last sale eligible trade occurring
Regular Trading Hours.
---------------------------------------------------------------------------
\4\ See Exchange Rule 1.5(ee).
\5\ See Exchange Rule 1.5(r).
\6\ See Exchange Rule 1.5(w).
\7\ See Exchange Rule 1.5(cc).
\8\ Specifically, Exchange Rule 11.1(a) provides that BYX Post
Only Orders, Partial Post Only at Limit Orders, Intermarket Sweep
Orders (``ISOs''), BYX Market Orders with a Time in Force other than
Regular Hours Only, Minimum Quantity Orders that also include a Time
in Force of Regular Hours Only, RPI Orders and all orders with a
Time in Force of Immediate-or-Cancel (``IOC'') or Fill-or-Kill
(``FOK'') are not accepted if entered prior to 7:00 a.m. Eastern
Time.
\9\ A BYX Market Order is an ``order to buy or sell a stated
amount of a security that is to be executed at the NBBO when the
order reaches the Exchange. BYX market orders shall not trade
through Protected Quotations . . . BYX Market Orders are not
eligible for execution during the Early Trading Session, Pre-Opening
Session or the After Hours Trading Session.'' See Exchange Rule
11.9(a)(2).
\10\ RHO refers to a ``limit or market order that is designated
for execution only during Regular Trading Hours, which includes the
Opening Process, as defined in Rule 11.23.'' See Exchange Rule
11.9(b)(7).
\11\ A Limit Order is an ``order to buy or sell a stated amount
of a security at a specified price or better.'' See Exchange Rule
11.9(a)(1).
\12\ A Stop Limit Order is ``an order that becomes a limit order
when the stop price is elected. A Stop Limit Order to buy is elected
when the consolidated last sale in the security occurs at, or above,
the specified stop price. A Stop Limit Order to sell becomes a sell
limit order when the consolidated last sale in the security occurs
at, or below, the specified stop price.'' See Exchange Rule
11.9(c)(17).
\13\ An order with a Time in Force of RHO is a limit or market
order that is designated for execution only during Regular Trading
Hours, which includes the Opening Auction and Closing Auction. See
Exchange Rule 11.9(b)(7).
\14\ See supra note 12.
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As proposed, the amendment would allow the Exchange to accept Stop
Orders entered between 6:00 and 7:00 a.m. Eastern Time, which is
consistent with an order designated to queue for later entry on to the
Exchange's order book. Similar to a Stop Limit Order, the stop price of
a Stop Order can only be triggered by a consolidated last sale eligible
trade.\15\ Therefore, a Stop Order can only become a BYX Market Order
after at least the start of Regular Trading Hours. Further, Stop Orders
entered on the Exchange between 6:00 and 7:00 a.m. Eastern Time would
behave similar to Stop Limit Orders between the time of entry up to at
least the start of Regular Trading Hours.
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\15\ See supra note 3.
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\16\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \17\ requirements that the rules of an exchange be
designed to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
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\16\ 15 U.S.C. 78f(b).
\17\ 15 U.S.C. 78f(b)(5).
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As discussed above, all Stop Orders are designed to queue until at
least the start of Regular Trading Hours as such orders are only
eligible to be elected based on the consolidated last sale set during
Regular Trading Hours. Therefore, the proposed amendment to allow the
entry of Stop Orders between 6:00 and 7:00 a.m. Eastern Time would not
allow such Stop Orders to be elected and execute prior to the start of
Regular Trading Hours. Prior to the start of Regular Trading Hours,
Stop Orders entered between 6:00 and 7:00 a.m. Eastern Time would
behave similar to Stop Limit Orders entered during that time.
Therefore, the Exchange believes the proposed amendment would
consistently allow order types and modifiers that are consistent with
orders designated to queue to be entered on the Exchange between 6:00
and 7:00 a.m. Eastern Time.
Additionally, the Exchange believes the proposed amendment would
allow Members the convenience to enter all Stop Orders and Stop Limit
Orders between 6:00 and 7:00 a.m. Eastern Time without those orders
being eligible for election, and consequently execution, until at least
the start of the Regular Trading Hours. Thus, the proposed amendment
would provide Members with both greater convenience and flexibility in
managing their Stop Orders and Stop Limit Orders without impacting how
those orders trade.
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. Rather, the proposed rule
change would consistently allow for the entry of order types and
modifiers that are designated to queue between 6:00 and 7:00 a.m.
Eastern Time. Stop Limit Orders are currently allowed for entry on the
Exchange between 6:00 and 7:00 a.m. Eastern Time and behave similar to
the manner in which a Stop Order would behave prior to the start of
Regular Trading Hours if allowed entry during that time. The Exchange
therefore believes that the proposed rule change would increase
consistency around the operation of the Exchange to the benefit of
Members and investors as well as provide greater flexibility to Members
in managing their Stop Orders, without imposing any significant burden
on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
(i) significantly affect the protection of investors or the public
interest;
(ii) impose any significant burden on competition; and
(iii) become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \18\ and
Rule 19b-4(f)(6) \19\ thereunder.
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\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 17 CFR 240.19b-4(f)(6).
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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 will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing,
[[Page 65856]]
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-CboeBYX-2019-022 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-CboeBYX-2019-022. 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-CboeBYX-2019-022, and should be
submitted on or before December 20, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-25840 Filed 11-27-19; 8:45 am]
BILLING CODE 8011-01-P
