Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Introduce a Liquidity Provider Protection Delay Mechanism on EDGA, 70231-70232 [2019-27453]

Download as PDF Federal Register / Vol. 84, No. 245 / Friday, December 20, 2019 / Notices 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 9 and Rule 19b– 4(f)(6) 10 thereunder. A proposed rule changed filed under Rule 19b–4(f)(6) 11 normally does not become operative prior to 30 days after the date of filing. However, pursuant to Rule 19b–4(f)(6),12 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because doing so will allow the Pilot Program to continue without interruption in a manner that is consistent with the Commission’s prior approval of the extension and expansion of the Pilot Program.13 Accordingly, the Commission designates the proposed rule change as operative upon filing with the Commission.14 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, 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 just 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)(iii). 13 See Securities Exchange Act Release No. 61061 (November 24, 2009), 74 FR 62857 (December 1, 2009) (SR–NYSEArca–2009–44) 14 For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). jbell on DSKJLSW7X2PROD with NOTICES 10 17 VerDate Sep<11>2014 18:30 Dec 19, 2019 Jkt 250001 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– ISE–2019–33 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–ISE–2019–33. 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–ISE–2019–33 and should be submitted on or before January 10, 2020. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2019–27448 Filed 12–19–19; 8:45 am] BILLING CODE 8011–01–P 15 17 PO 00000 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–87757; File No. SR– CboeEDGA–2019–012] Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Introduce a Liquidity Provider Protection Delay Mechanism on EDGA December 16, 2019. On June 7, 2019, Cboe EDGA Exchange, Inc. (‘‘EDGA’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’) 1 and Rule 19b–4 thereunder,2 a proposal to introduce an intentional, asymmetric delay mechanism on EDGA. The proposed rule change was published for comment in the Federal Register on June 26, 2019.3 On August 5, 2019, pursuant to Section 19(b)(2) of the Exchange Act,4 the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved.5 The Commission received twenty-one comment letters from eighteen commenters, including a response from the Exchange, in response to the Notice.6 On September 24, 2019, the 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 86168 (June 20, 2019), 84 FR 30282 (‘‘Notice’’). 4 15 U.S.C. 78s(b)(2). 5 See Securities Exchange Act Release No. 86567, 84 FR 39385 (Aug. 9, 2019). The Commission designated September 24, 2019, as the date by which it should approve, disapprove, or institute proceedings to determine whether to disapprove the proposed rule change. 6 See Letters from: R.T. Leuchtkafer, dated July 12, 2019; Steve Crutchfield, Head of Market Structure, CTC Trading Group, LLC, dated July 15, 2019; Tyler Gellasch, Executive Director, Healthy Markets, dated July 16, 2019; Larry Tabb, Founder and Research Chairman, TABB Group, dated July 16, 2019; Stephen John Berger, Managing Director, Global Head of Government and Regulatory Policy, Citadel Securities, dated July 16, 2019; Mehmet Kinak, Vice President & Global Head of Systematic Trading & Market Structure, and Jonathan D. Siegel, Vice President & Senior Legal Counsel (Legislative & Regulatory Affairs), T. Rowe Price, dated July 16, 2019; Adam Nunes, Head of Business Development, Hudson River Trading LLC, dated July 16, 2019; Joanna Mallers, Secretary, FIA Principal Traders Group, dated July 16, 2019; Ray Ross, Chief Technology Officer, Clearpool, dated July 16, 2019; Eric Swanson, CEO, XTX Markets LLC (Americas), dated July 16, 2019; John Thornton, Co-Chair, Hal S. Scott, President, and R. Glenn Hubbard, CoChair, Committee on Capital Markets Regulation, 2 17 CFR 200.30–3(a)(12). Frm 00086 Fmt 4703 Sfmt 4703 70231 Continued E:\FR\FM\20DEN1.SGM 20DEN1 70232 Federal Register / Vol. 84, No. 245 / Friday, December 20, 2019 / Notices jbell on DSKJLSW7X2PROD with NOTICES Commission instituted proceedings to determine whether to approve or disapprove the proposed rule changes.7 The Commission received twelve additional comments in response to the Notice and OIP.8 Section 19(b)(2) of the Act 9 provides that, after initiating proceedings, the Commission shall issue an order approving or disapproving the proposed rule change not later than 180 days after the date of publication of notice of filing of the proposed rule change. The Commission may extend the period for issuing an order approving or disapproving the proposed rule change, however, by not more than 60 days if the Commission determines that a longer period is appropriate and publishes the reasons for such determination. The proposed rule change was published for notice and dated July 16, 2019; Kirsten Wegner, Chief Executive Officer, Modern Markets Initiative, dated July 17, 2019; Theodore R. Lazo, Managing Director and Associate General Counsel, SIFMA, dated July 18, 2019; Eric Swanson, CEO, XTX Markets LLC (Americas), dated July 31, 2019; Mark D. Epley, Executive Vice President & Managing Director, General Counsel, and Jennifer W. Han, Associate General Counsel, Managed Funds Association, dated August 2, 2019; Hubert De Jesus, Managing Director, Global Head of Market Structure and Electronic Trading, and Joanne Medero, Managing Director, Global Public Policy, Black Rock, dated August 2, 2019; Rich Steiner, Head of Client Advocacy and Market Innovation, RBC Capital Markets, dated August 15, 2019; Adrian Griffiths, Assistant General Counsel, Cboe Global Markets, dated August 22, 2019; R.T. Leuchtkafer, dated August 23, 2019; R.T. Leuchtkafer, dated September 9, 2019; Joshua Mollner, Assistant Professor, Kellogg School of Management, Northwestern University, and Markus Baldauf, Assistant Professor, Sauder School of Business, University of British Columbia, dated September 12, 2019 available at https://www.sec.gov/comments/srcboeedga-2019-012/srcboeedga2019012.htm. 7 See Securities Exchange Act Release No. 87096, 84 FR 51657 (September 30, 2019) (‘‘OIP’’). 8 See Letters from: Eric Swanson, CEO, XTX Markets LLC (Americas), dated October 18, 2019; Tom Quaadman, Executive Vice President, Center for Capital Markets Competitiveness, U.S. Chamber of Commerce (dated October 18, 2019); R.T. Leuchtkafer, dated October 21, 2019; Doug Clark, Chairman, and James Toes, President & CEO, Security Traders Association, dated October 21, 2019; Joanna Mallers, Secretary, FIA Principal Traders Group, dated October 21, 2019; Ray Ross, Chief Technology Officer, Clearpool, dated Oct. 21, 2019; Tyler Gellasch, Executive Director, Healthy Markets Association, dated Oct. 21, 2019; Dorothy Donohue, Deputy General Counsel, Investment Company Institute, dated Oct. 21, 2019; Tim Lang, Chief Executive Officer, ACS Execution Services, dated Oct. 21, 2019; Stephen John Berger, Managing Director, Global Head of Government and Regulatory Policy, Citadel Securities, dated October 21, 2019; Mark D. Epley, Executive Vice President & Managing Director, General Counsel, and Jennifer W. Han, Associate General Counsel, Managed Funds Association, dated October 22, 2019; Steve Crutchfield, Head of Market Structure, CTC Trading Group, LLC, dated October 28, 2019 available at https://www.sec.gov/comments/srcboeedga-2019012/srcboeedga2019012.htm. 9 15 U.S.C. 78s(b)(2). VerDate Sep<11>2014 18:30 Dec 19, 2019 Jkt 250001 comment in the Federal Register on June 26, 2019.10 December 23, 2019 is 180 days from that date, and February 21, 2020 is 240 days from that date. The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change, the issues raised in the comment letters that have been submitted in connection therewith, and the Exchange’s response to comments. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,11 designates February 21, 2020 as the date by which the Commission should either approve or disapprove the proposed rule change (File No. SR–CboeEDGA–2019–012). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2019–27453 Filed 12–19–19; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–87754; File No. SR–BX– 2019–046] Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend Through June 30, 2020 or The Date of Permanent Approval, if Earlier, the Penny Pilot Program December 16, 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 December 12, 2019, Nasdaq BX, Inc. (‘‘BX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I and II, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Options 3, Section 3 (Minimum 10 See Notice, supra note 3. U.S.C. 78s(b)(2). 12 17 CFR 200.30–3(a)(57). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 11 15 PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 Increments) to extend through June 30, 2020 or the date of permanent approval, if earlier, the Penny Pilot Program in options classes in certain issues (‘‘Penny Pilot’’ or ‘‘Pilot’’). The text of the proposed rule change is available on the Exchange’s website at https://nasdaqbx.cchwallstreet.com/, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to amend Options 3, Section 3 to extend the Penny Pilot through June 30, 2020 or the date of permanent approval, if earlier.3 Under the Penny Pilot, the minimum price variation for all participating options classes, except for options overlying the PowerShares QQQ Trust (‘‘QQQQ’’), the SPDR S&P 500 Exchange Traded Fund (‘‘SPY’’) and the iShares Russell 2000 Index Fund (‘‘IWM’’), is $0.01 for all quotations in options series that are quoted at less than $3 per contract and $0.05 for all quotations in options series that are quoted at $3 per contract or greater. Options overlying QQQQ, SPY and IWM are quoted in $0.01 increments for all options series. The Penny Pilot is currently scheduled to expire on December 31, 2019.4 The Exchange now proposes to extend the time period of the Penny Pilot through June 30, 2020 or the date of permanent approval, if earlier. This filing does not propose any substantive changes to the Penny Pilot Program; all classes currently 3 The options exchanges in the U.S. that have pilot programs similar to the Penny Pilot (together ‘‘pilot programs’’) are currently working on a proposal for permanent approval of the respective pilot programs. 4 See Securities Exchange Act Release No. 86137 (June 18, 2019), 84 FR 29563 (June 24, 2019) (SR– BX–2019–020). E:\FR\FM\20DEN1.SGM 20DEN1

Agencies

[Federal Register Volume 84, Number 245 (Friday, December 20, 2019)]
[Notices]
[Pages 70231-70232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27453]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87757; File No. SR-CboeEDGA-2019-012]


Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice 
of Designation of Longer Period for Commission Action on Proceedings To 
Determine Whether To Approve or Disapprove a Proposed Rule Change To 
Introduce a Liquidity Provider Protection Delay Mechanism on EDGA

December 16, 2019.
    On June 7, 2019, Cboe EDGA Exchange, Inc. (``EDGA'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Exchange Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposal to introduce an intentional, asymmetric delay 
mechanism on EDGA. The proposed rule change was published for comment 
in the Federal Register on June 26, 2019.\3\ On August 5, 2019, 
pursuant to Section 19(b)(2) of the Exchange Act,\4\ the Commission 
designated a longer period within which to approve the proposed rule 
change, disapprove the proposed rule change, or institute proceedings 
to determine whether the proposed rule change should be disapproved.\5\ 
The Commission received twenty-one comment letters from eighteen 
commenters, including a response from the Exchange, in response to the 
Notice.\6\ On September 24, 2019, the

[[Page 70232]]

Commission instituted proceedings to determine whether to approve or 
disapprove the proposed rule changes.\7\ The Commission received twelve 
additional comments in response to the Notice and OIP.\8\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 86168 (June 20, 
2019), 84 FR 30282 (``Notice'').
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 86567, 84 FR 39385 
(Aug. 9, 2019). The Commission designated September 24, 2019, as the 
date by which it should approve, disapprove, or institute 
proceedings to determine whether to disapprove the proposed rule 
change.
    \6\ See Letters from: R.T. Leuchtkafer, dated July 12, 2019; 
Steve Crutchfield, Head of Market Structure, CTC Trading Group, LLC, 
dated July 15, 2019; Tyler Gellasch, Executive Director, Healthy 
Markets, dated July 16, 2019; Larry Tabb, Founder and Research 
Chairman, TABB Group, dated July 16, 2019; Stephen John Berger, 
Managing Director, Global Head of Government and Regulatory Policy, 
Citadel Securities, dated July 16, 2019; Mehmet Kinak, Vice 
President & Global Head of Systematic Trading & Market Structure, 
and Jonathan D. Siegel, Vice President & Senior Legal Counsel 
(Legislative & Regulatory Affairs), T. Rowe Price, dated July 16, 
2019; Adam Nunes, Head of Business Development, Hudson River Trading 
LLC, dated July 16, 2019; Joanna Mallers, Secretary, FIA Principal 
Traders Group, dated July 16, 2019; Ray Ross, Chief Technology 
Officer, Clearpool, dated July 16, 2019; Eric Swanson, CEO, XTX 
Markets LLC (Americas), dated July 16, 2019; John Thornton, Co-
Chair, Hal S. Scott, President, and R. Glenn Hubbard, Co-Chair, 
Committee on Capital Markets Regulation, dated July 16, 2019; 
Kirsten Wegner, Chief Executive Officer, Modern Markets Initiative, 
dated July 17, 2019; Theodore R. Lazo, Managing Director and 
Associate General Counsel, SIFMA, dated July 18, 2019; Eric Swanson, 
CEO, XTX Markets LLC (Americas), dated July 31, 2019; Mark D. Epley, 
Executive Vice President & Managing Director, General Counsel, and 
Jennifer W. Han, Associate General Counsel, Managed Funds 
Association, dated August 2, 2019; Hubert De Jesus, Managing 
Director, Global Head of Market Structure and Electronic Trading, 
and Joanne Medero, Managing Director, Global Public Policy, Black 
Rock, dated August 2, 2019; Rich Steiner, Head of Client Advocacy 
and Market Innovation, RBC Capital Markets, dated August 15, 2019; 
Adrian Griffiths, Assistant General Counsel, Cboe Global Markets, 
dated August 22, 2019; R.T. Leuchtkafer, dated August 23, 2019; R.T. 
Leuchtkafer, dated September 9, 2019; Joshua Mollner, Assistant 
Professor, Kellogg School of Management, Northwestern University, 
and Markus Baldauf, Assistant Professor, Sauder School of Business, 
University of British Columbia, dated September 12, 2019 available 
at https://www.sec.gov/comments/sr-cboeedga-2019-012/srcboeedga2019012.htm.
    \7\ See Securities Exchange Act Release No. 87096, 84 FR 51657 
(September 30, 2019) (``OIP'').
    \8\ See Letters from: Eric Swanson, CEO, XTX Markets LLC 
(Americas), dated October 18, 2019; Tom Quaadman, Executive Vice 
President, Center for Capital Markets Competitiveness, U.S. Chamber 
of Commerce (dated October 18, 2019); R.T. Leuchtkafer, dated 
October 21, 2019; Doug Clark, Chairman, and James Toes, President & 
CEO, Security Traders Association, dated October 21, 2019; Joanna 
Mallers, Secretary, FIA Principal Traders Group, dated October 21, 
2019; Ray Ross, Chief Technology Officer, Clearpool, dated Oct. 21, 
2019; Tyler Gellasch, Executive Director, Healthy Markets 
Association, dated Oct. 21, 2019; Dorothy Donohue, Deputy General 
Counsel, Investment Company Institute, dated Oct. 21, 2019; Tim 
Lang, Chief Executive Officer, ACS Execution Services, dated Oct. 
21, 2019; Stephen John Berger, Managing Director, Global Head of 
Government and Regulatory Policy, Citadel Securities, dated October 
21, 2019; Mark D. Epley, Executive Vice President & Managing 
Director, General Counsel, and Jennifer W. Han, Associate General 
Counsel, Managed Funds Association, dated October 22, 2019; Steve 
Crutchfield, Head of Market Structure, CTC Trading Group, LLC, dated 
October 28, 2019 available at https://www.sec.gov/comments/srcboeedga-2019-012/srcboeedga2019012.htm.
---------------------------------------------------------------------------

    Section 19(b)(2) of the Act \9\ provides that, after initiating 
proceedings, the Commission shall issue an order approving or 
disapproving the proposed rule change not later than 180 days after the 
date of publication of notice of filing of the proposed rule change. 
The Commission may extend the period for issuing an order approving or 
disapproving the proposed rule change, however, by not more than 60 
days if the Commission determines that a longer period is appropriate 
and publishes the reasons for such determination. The proposed rule 
change was published for notice and comment in the Federal Register on 
June 26, 2019.\10\ December 23, 2019 is 180 days from that date, and 
February 21, 2020 is 240 days from that date.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(2).
    \10\ See Notice, supra note 3.
---------------------------------------------------------------------------

    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed 
rule change so that it has sufficient time to consider the proposed 
rule change, the issues raised in the comment letters that have been 
submitted in connection therewith, and the Exchange's response to 
comments. Accordingly, the Commission, pursuant to Section 19(b)(2) of 
the Act,\11\ designates February 21, 2020 as the date by which the 
Commission should either approve or disapprove the proposed rule change 
(File No. SR-CboeEDGA-2019-012).
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019-27453 Filed 12-19-19; 8:45 am]
 BILLING CODE 8011-01-P
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