Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 100, Definitions, Exchange Rule 503, Openings on the Exchange, Exchange Rule 515, Execution of Orders, Exchange Rule 516, Order Types, and Exchange Rule 521, Nullification and Adjustment of Options Transactions Including Obvious Errors, 72061-72063 [2019-28085]
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Federal Register / Vol. 84, No. 249 / Monday, December 30, 2019 / Notices
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only with respect to government and/or
public assets.
4. Member countries have requested
that the Applicant provide them with
asset management and related services
(back office, risk, accounting, advisory
and other support services) to help them
develop additional internal capacities.
The Applicant would exercise
discretionary authority with respect to
the assets, acting as the agent for
Potential Clients.
5. Member countries have also
requested advice and instruction
relating to hedging activities and to
capital markets borrowings. The
Applicant proposes to provide detailed
advice on debt management, hedging
techniques for specific transactions, and
capital markets borrowings. The
Applicant also proposes to provide
targeted training seminars and courses
at the IDB’s offices, at Potential Clients’
locations, or online.
6. The Applicant expects to charge a
fee for the activities/services it provides
that would allow it to recover the
associated costs.
Applicants’ Legal Analysis
1. Section 202(a)(11) of the Advisers
Act defines ‘‘investment adviser’’ to
mean ‘‘any person who, for
compensation, engages in the business
of advising others . . . as to the value
of securities or as to the advisability of
investing in, purchasing, or selling
securities, or who, for compensation
and as a part of a regular business,
issues or promulgates analyses or
reports concerning securities . . . .’’
2. The Applicant proposes to offer
asset management and advisory services
on a regular, recurring basis and to
charge recipients a fee for these services.
Accordingly, the Applicant would be
‘‘in the business of’’ providing
investment advice for compensation and
would be an ‘‘investment adviser’’ for
purposes of the Advisers Act.
3. Section 202(a)(11)(H) of the
Advisers Act authorizes the
Commission to exclude from the
definition of ‘‘investment adviser’’
persons that are not within the intent of
section 202(a)(11). The Applicant
requests that the Commission issue an
order under section 202(a)(11)(H)
declaring it to be a person not within
the intent of section 202(a)(11).
4. The Applicant argues that the
Advisers Act contemplates the
regulation of private sector entities and
was not intended to regulate an entity
that is an organization of sovereign
nations providing investment advice to
Potential Clients. The Applicant states
that section 202(b) of the Advisers Act
provides that the Advisers Act is not
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applicable to the ‘‘United States, a State,
or any political subdivision of a State,
or any agency, authority, or
instrumentality of any one or more of
the foregoing, or any corporation which
is wholly owned directly or indirectly
by any one or more of the foregoing, or
any officer, agent, or employee of any of
the foregoing acting as such in the
course of his official duty, unless such
provision makes specific reference
thereto.’’ While the Applicant
acknowledges that the Advisers Act
does not expressly exempt international
organizations made up solely of
sovereign nations, the Applicant argues
that the Advisers Act seems clearly
intended not to apply to such
organizations.
5. The Applicant acknowledges that a
foreign individual or corporation would
reasonably expect the protections of the
U.S. securities laws to apply when
doing business with an investment
adviser resident in the United States.
The Applicant asserts, however, that,
given the particular nature of the IDB,
its unique purposes, and the nature of
its constituent members, recipients of
the proposed investment advice would
not reasonably expect the Advisers Act
to apply to those services.
For the Commission, by the Division of
Investment Management, under delegated
authority.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019–28050 Filed 12–27–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87829; File No. SR–
PEARL–2019–35]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Exchange
Rule 100, Definitions, Exchange Rule
503, Openings on the Exchange,
Exchange Rule 515, Execution of
Orders, Exchange Rule 516, Order
Types, and Exchange Rule 521,
Nullification and Adjustment of
Options Transactions Including
Obvious Errors
December 20, 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
19, 2019, MIAX PEARL, LLC (‘‘MIAX
PEARL’’ or the ‘‘Exchange’’) filed with
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00172
Fmt 4703
Sfmt 4703
72061
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 Rule 100, Definitions; Exchange
Rule 503, Openings on the Exchange;
Exchange Rule 515, Execution of
Orders; Exchange Rule 516, Order
Types; and Exchange Rule 521,
Nullification and Adjustment of Options
Transactions Including Obvious Errors.
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 100, Definitions;
Exchange Rule 503, Openings on the
Exchange; Exchange Rule 515,
Execution of Orders; Exchange Rule
516, Order Types; and Exchange Rule
521, Nullification and Adjustment of
Options Transactions Including Obvious
Errors, to make non-substantive edits to
update internal cross references in the
Exchange’s rulebook.
The Exchange is an affiliate of the
Miami International Securities
Exchange, LLC (‘‘MIAX’’) and
incorporates by reference a number of
MIAX Exchange rules into its rulebook.
MIAX Exchange recently amended Rule
1400, Definitions, found in Chapter XIV
of the MIAX Exchange rules, which are
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Federal Register / Vol. 84, No. 249 / Monday, December 30, 2019 / Notices
its rules pertaining to the Options Order
Protection and Locked and Crossed
Market Plan.3 The MIAX Exchange
adopted a definition for Complex Trade
which, when inserted into its proper
alphabetical position in MIAX Exchange
Rule 1400, caused the subsequent
following definitions to be renumbered
(e.g., the existing subparagraph (d)
became new subparagraph (e); existing
subparagraph (e) became new
subparagraph (f), etc . . .). As a result
of the change to the MIAX Exchange
Rule 1400, a number of internal cross
references contained in the Exchange’s
rulebook must be updated.
Specifically, the internal crossreference to Eligible Exchanges in the
definition of ABBO or Away Best Bid or
Offer, in Exchange Rule 100, must be
updated from Rule 1400(f) to Rule
1400(g). The internal cross-reference to
Eligible Exchanges in Exchange Rule
503(a)(5) must be updated from Rule
1400(f) to Rule 1400(g). The internal
cross-reference to the NBBO in
Exchange Rule 515(a) must be updated
from Rule 1400(j) to Rule 1400(k). The
internal cross-reference to Intermarket
Sweep Orders in Exchange Rule 516(f)
must be updated from Rule 1400(h) to
Rule 1400(i). Similarly in Rule 516(f)
the internal cross-references to
Protected Quotations and Eligible
Exchanges must be updated from
1400(p) and (f) to 1400(q) and (g)
respectively. Lastly, in Rule 516(f), the
internal cross-reference to Protected Bid
or Protected Offer must be updated from
1400(o) to 1400 (p). Finally, the internal
cross-reference to the Options Order
Protection and Locked/Crossed Market
Plan in Exchange Rule 521(j) must be
updated from Rule 1400(n) to Rule
1400(o).
The Exchange believes that these nonsubstantive changes will add clarity and
precision to the Exchange’s rules.
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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
3 See
Securities Exchange Act Release No. 87693
(December 9, 2019), 84 FR 68264 (December 13,
2019) (SR–MIAX–2019–48).
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
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20:00 Dec 27, 2019
Jkt 250001
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 that the
proposed non-substantive rule changes
to update internal cross-references
within the Exchange’s Rules 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 clarity and
precision in the Exchange’s rules. The
Exchange believes it is in the public
interest for rules to be accurate and
precise 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 Exchange does not believe that
the proposed rule change will impose
any burden on intermarket competition
as the proposed change is nonsubstantive in nature. The nonsubstantive edits to update internal
cross-references in the Exchange’s
rulebook provides precision and
accuracy in the Exchange’s rules.
The Exchange does not believe that
the proposed rule change will impose
any burden on intramarket competition
as the non-substantive edits to update
internal cross-references in the
Exchange’s rulebook provide additional
detail and clarity in the Exchange’s
rules, which apply equally to all
Exchange Members.6
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 proposed rule change
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
6 The term ‘‘Member’’ means an individual or
organization that is registered with the Exchange
pursuant to Chapter II of the MIAX PEARL Rules
for purposes of trading on the Exchange as an
‘‘Electronic Exchange Member’’ or ‘‘Market Maker.’’
Members are deemed ‘‘members’’ under the
Exchange Act. See Exchange Rule 100.
PO 00000
Frm 00173
Fmt 4703
Sfmt 4703
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 and subparagraph
(f)(6) of Rule 19b–4 thereunder.
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 7 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 8
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has
requested that the Commission waive
the 30-day operative delay so that the
proposed rule change may become
operative upon filing. Waiver of the
operative delay would allow the
Exchange to immediately harmonize its
rules to MIAX Options to ensure that
the internal cross-references in the
Exchange’s rulebook are correct.
Therefore, the Commission believes that
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest.
Accordingly, the Commission hereby
waives the operative delay and
designates the proposed rule change
operative upon filing.9
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
7 17
CFR 240.19b–4(f)(6).
CFR 240.19b–4(f)(6)(iii).
9 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).
8 17
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Federal Register / Vol. 84, No. 249 / Monday, December 30, 2019 / Notices
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
PEARL–2019–35 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–87844; File No. SR–GEMX–
2019–18]
• 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–2019–35. 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–2019–35 and
should be submitted on or before
January 21, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
J. Matthew DeLesDernier,
Assistant Secretary.
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[FR Doc. 2019–28085 Filed 12–27–19; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations; Nasdaq
GEMX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Adopt a Mass
Cancellation Rule and Amend Other
Sections of the Rulebook
December 23, 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
9, 2019, Nasdaq GEMX, LLC (‘‘GEMX’’
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
definitions within General 1, Section 1,
adopt a new definition for ‘‘Away Best
Bid or Offer’’ within Options 1, Section
1, and update rule citations in various
other rules.
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqgemx.cchwallstreet.com/,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
1 15
10 17
CFR 200.30–3(a)(12).
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20:00 Dec 27, 2019
2 17
Jkt 250001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00174
Fmt 4703
72063
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to adopt a
new rule at Options 3, Section 19 titled
‘‘Mass Cancellation of Trading Interest.’’
The Exchange also proposes to amend
definitions within General 1, Section 1,
adopt a new definition for ‘‘Away Best
Bid or Offer within Options 1, Section
1, and update rule citations in various
other rules.
Mass Cancellation of Trading Interest
The Exchange proposes to adopt a
new rule at Options 3, Section 19 titled
‘‘Mass Cancellation of Trading Interest.’’
The Nasdaq Options Market LLC
(‘‘NOM’’) and Nasdaq BX, Inc. (‘‘BX’’)
rules at Chapter VII, Section 11 permit
Participants on those markets to contact
market operations and manually request
cancellation of interest. The Exchange
proposes to adopt a rule which also
permits Members to contact market
operations and request the Exchange to
manually cancel interest. The proposed
new rule would state, ‘‘A Member may
cancel any bids, offers, and orders in
any series of options by requesting
GEMX Market Operations 3 staff to effect
such cancellation as per the instructions
of the Member.’’ This new rule reflects
the Exchange’s current practice of
allowing Members to contact GEMX
Market Operations and request the
Exchange to cancel any bid, offer or
order in any series of options. The
Exchange would cancel such bid, offer
or order pursuant to the Member’s
instruction. The Exchange desires to
memorialize the availability of this
service.
Definitions
The Exchange proposes to make a
technical amendment to General 1,
Section 1(a)(6) to note the acronym for
an Electronic Access Member, an
‘‘EAM’’ within the definition. The
acronym is utilized throughout the
Rulebook. Defining the acronym within
the definition will add transparency to
the Rulebook.
The Exchange proposes to add the
definition of an ‘‘Away Best Bid or
Offer’’ or ‘‘ABBO’’ within Options 1,
Section 1(a)(4). This term is utilized
throughout the Rulebook. Defining this
term will bring greater transparency to
the Rulebook. The Exchange also
proposes to update the numbering in the
remainder of the rule and also update
3 The request to Market Operations is a manual
request which is made telephonically.
Sfmt 4703
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]]>Agencies
[Federal Register Volume 84, Number 249 (Monday, December 30, 2019)]
[Notices]
[Pages 72061-72063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-28085]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87829; File No. SR-PEARL-2019-35]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange
Rule 100, Definitions, Exchange Rule 503, Openings on the Exchange,
Exchange Rule 515, Execution of Orders, Exchange Rule 516, Order Types,
and Exchange Rule 521, Nullification and Adjustment of Options
Transactions Including Obvious Errors
December 20, 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 19, 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 Rule 100, Definitions;
Exchange Rule 503, Openings on the Exchange; Exchange Rule 515,
Execution of Orders; Exchange Rule 516, Order Types; and Exchange Rule
521, Nullification and Adjustment of Options Transactions Including
Obvious Errors.
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 100, Definitions;
Exchange Rule 503, Openings on the Exchange; Exchange Rule 515,
Execution of Orders; Exchange Rule 516, Order Types; and Exchange Rule
521, Nullification and Adjustment of Options Transactions Including
Obvious Errors, to make non-substantive edits to update internal cross
references in the Exchange's rulebook.
The Exchange is an affiliate of the Miami International Securities
Exchange, LLC (``MIAX'') and incorporates by reference a number of MIAX
Exchange rules into its rulebook. MIAX Exchange recently amended Rule
1400, Definitions, found in Chapter XIV of the MIAX Exchange rules,
which are
[[Page 72062]]
its rules pertaining to the Options Order Protection and Locked and
Crossed Market Plan.\3\ The MIAX Exchange adopted a definition for
Complex Trade which, when inserted into its proper alphabetical
position in MIAX Exchange Rule 1400, caused the subsequent following
definitions to be renumbered (e.g., the existing subparagraph (d)
became new subparagraph (e); existing subparagraph (e) became new
subparagraph (f), etc . . .). As a result of the change to the MIAX
Exchange Rule 1400, a number of internal cross references contained in
the Exchange's rulebook must be updated.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 87693 (December 9,
2019), 84 FR 68264 (December 13, 2019) (SR-MIAX-2019-48).
---------------------------------------------------------------------------
Specifically, the internal cross-reference to Eligible Exchanges in
the definition of ABBO or Away Best Bid or Offer, in Exchange Rule 100,
must be updated from Rule 1400(f) to Rule 1400(g). The internal cross-
reference to Eligible Exchanges in Exchange Rule 503(a)(5) must be
updated from Rule 1400(f) to Rule 1400(g). The internal cross-reference
to the NBBO in Exchange Rule 515(a) must be updated from Rule 1400(j)
to Rule 1400(k). The internal cross-reference to Intermarket Sweep
Orders in Exchange Rule 516(f) must be updated from Rule 1400(h) to
Rule 1400(i). Similarly in Rule 516(f) the internal cross-references to
Protected Quotations and Eligible Exchanges must be updated from
1400(p) and (f) to 1400(q) and (g) respectively. Lastly, in Rule
516(f), the internal cross-reference to Protected Bid or Protected
Offer must be updated from 1400(o) to 1400 (p). Finally, the internal
cross-reference to the Options Order Protection and Locked/Crossed
Market Plan in Exchange Rule 521(j) must be updated from Rule 1400(n)
to Rule 1400(o).
The Exchange believes that these non-substantive changes will add
clarity and precision to the Exchange's rules.
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 that the proposed non-substantive rule
changes to update internal cross-references within the Exchange's Rules
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 clarity and precision in the
Exchange's rules. The Exchange believes it is in the public interest
for rules to be accurate and precise 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 Exchange does not believe that the proposed rule change will
impose any burden on intermarket competition as the proposed change is
non-substantive in nature. The non-substantive edits to update internal
cross-references in the Exchange's rulebook provides precision and
accuracy in the Exchange's rules.
The Exchange does not believe that the proposed rule change will
impose any burden on intramarket competition as the non-substantive
edits to update internal cross-references in the Exchange's rulebook
provide additional detail and clarity in the Exchange's rules, which
apply equally to all Exchange Members.\6\
---------------------------------------------------------------------------
\6\ The term ``Member'' means an individual or organization that
is registered with the Exchange pursuant to Chapter II of the MIAX
PEARL Rules for purposes of trading on the Exchange as an
``Electronic Exchange Member'' or ``Market Maker.'' Members are
deemed ``members'' under the Exchange Act. See Exchange Rule 100.
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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 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 and subparagraph (f)(6) of Rule 19b-4
thereunder.
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \7\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \8\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposed rule change may become operative upon filing. Waiver
of the operative delay would allow the Exchange to immediately
harmonize its rules to MIAX Options to ensure that the internal cross-
references in the Exchange's rulebook are correct. Therefore, the
Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
Accordingly, the Commission hereby waives the operative delay and
designates the proposed rule change operative upon filing.\9\
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\7\ 17 CFR 240.19b-4(f)(6).
\8\ 17 CFR 240.19b-4(f)(6)(iii).
\9\ For purposes only of waiving the 30-day operative delay, the
Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
[[Page 72063]]
Send an email to [email protected]. Please include
File Number SR-PEARL-2019-35 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-2019-35. 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-2019-35 and should be submitted on
or before January 21, 2020.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019-28085 Filed 12-27-19; 8:45 am]
BILLING CODE 8011-01-P
