Self-Regulatory Organizations: MIAX Emerald, 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 and Quotes; Exchange Rule 516, Order Types Defined; Exchange Rule 517, Quote Types Defined; Exchange Rule 518, Complex Orders; and Exchange Rule 521, Nullification and Adjustment of Options Transactions Including Obvious Errors, 72086-72088 [2019-28086]
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72086
Federal Register / Vol. 84, No. 249 / Monday, December 30, 2019 / Notices
Statements also will be available for
website viewing and printing in the
Commission’s Public Reference Room,
100 F Street NE, Room 1580,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. All statements
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
submissions. You should submit only
information that you wish to make
available publicly.
FOR FURTHER INFORMATION CONTACT:
Christian Broadbent or Mark Uyeda,
Senior Special Counsels, or Sirimal
Mukerjee, Senior Counsel, at (202) 551–
6720, Division of Investment
Management, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–3628.
SUPPLEMENTARY INFORMATION: In
accordance with Section 10(a) of the
Federal Advisory Committee Act, 5
U.S.C.—App. 1, and the regulations
thereunder, Dalia Blass, Designated
Federal Officer of the Committee, has
ordered publication of this notice.
Dated: December 20, 2019.
Vanessa A. Countryman,
Committee Management Officer.
[FR Doc. 2019–28003 Filed 12–27–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87823; File No. SR–
EMERALD–2019–038]
Self-Regulatory Organizations: MIAX
Emerald, 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 and Quotes; Exchange Rule
516, Order Types Defined; Exchange
Rule 517, Quote Types Defined;
Exchange Rule 518, Complex Orders;
and Exchange Rule 521, Nullification
and Adjustment of Options
Transactions Including Obvious Errors
khammond on DSKJM1Z7X2PROD with NOTICES
December 20, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
19, 2019, MIAX Emerald, LLC (‘‘MIAX
Emerald’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
1 15
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend Exchange Rule 100, Definitions;
Exchange Rule 503, Openings on the
Exchange; Exchange Rule 515,
Execution of Orders and Quotes;
Exchange Rule 516, Order Types
Defined; Exchange Rule 517, Quote
Types Defined; Exchange Rule 518,
Complex Orders; 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/emerald at MIAX Emerald’s
principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Exchange Rule 100, Definitions;
Exchange Rule 503, Openings on the
Exchange; Exchange Rule 515,
Execution of Orders and Quotes;
Exchange Rule 516, Order Types
Defined; Exchange Rule 517, Quote
Types Defined; Exchange Rule 518,
Complex Orders; and Exchange Rule
521, Nullification and Adjustment of
Options Transactions Including Obvious
Errors, to make minor 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
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incorporates by reference a number of
MIAX Exchange rules into its rulebook.
The MIAX Exchange recently amended
Rule 1400, Definitions, found in Chapter
XIV of the MIAX Exchange rules, which
are 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
MIAX Exchange Rule 1400, a number of
non-substantive amendments must be
made to correct internal cross references
within the Exchange’s rulebook.
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(e)(1)(iii) must be updated from Rule
1400(f) to Rule 1400(g). The internal
cross-reference to Intermarket Sweep
Orders in Rule 503(f)(2)(iv)(A)2. must be
updated from Rule 1400(h) to Rule
1400(i). 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 Quotes 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). The internal crossreferences to Protected Bid and
Protected Offer in Exchange Rule
517(a)(2)(v) must be updated from
1400(o) to 1400(p). The internal crossreference to Eligible Exchanges in
Exchange Rule 518(a)(1) must be
updated from Rule 1400(f) to Rule
1400(g). Finally, the internal crossreference 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 these changes
add clarity and precision to the
Exchange’s rules.
3 See Securities Exchange Act Release No. 87693
(December 9, 2019), 84 FR 68264 (December 13,
2019) (SR–MIAX–2019–48).
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Federal Register / Vol. 84, No. 249 / Monday, December 30, 2019 / Notices
2. Statutory Basis
MIAX Emerald believes that its
proposed rule change is consistent with
Section 6(b) of the Act 4 in general, and
furthers the objectives of Section 6(b)(5)
of the Act 5 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in, securities, to
remove impediments to and perfect the
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
The Exchange believes 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.
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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
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
6 The term ‘‘Member’’ means an individual or
organization approved to exercise the trading rights
associate with a Trading Permit. Members are
deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
5 15
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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 7 and
subparagraph (f)(6) of Rule 19b–4
thereunder.8
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 9 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 10
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.11
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
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
9 17 CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
11 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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72087
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
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
EMERALD–2019–038 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–EMERALD–2019–038. 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
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72088
Federal Register / Vol. 84, No. 249 / Monday, December 30, 2019 / Notices
to make available publicly. All
submissions should refer to File
Number SR–EMERALD–2019–038 and
should be submitted on or before
January 21, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019–28086 Filed 12–27–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87810; File No. SR–FINRA–
2019–030]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a
Proposed Rule Change To Amend the
Membership Application Program
(‘‘MAP’’) Rules To Address the Issue of
Pending Arbitration Claims
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
13, 2019, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
substantially prepared by FINRA. 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
FINRA is proposing to amend the
Membership Application Program
(‘‘MAP’’) rules to help further address
the issue of pending arbitration claims,
as well as arbitration awards and
settlement agreements related to
arbitrations that have not been paid in
full in accordance with their terms.3
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Effective May 8, 2019, FINRA adopted the
NASD Rule 1010 Series (Membership Proceedings),
among other rules, in the consolidated FINRA
rulebook, without substantive change. The MAP
rules now reside under the FINRA Rule 1000 Series
(Member Application and Associated Person
Registration) as FINRA Rules 1011 through 1019.
See Securities Exchange Act Release No. 85589
(April 10, 2019), 84 FR 15646 (April 16, 2019)
(Notice of Filing and Immediate Effectiveness of
File No. SR–FINRA–2019–009). For purposes of this
filing, all references to the MAP rules are to the
FINRA Rule 1000 Series. The proposed rule change
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1 15
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Specifically, the proposed rule change
would: (1) Amend Rule 1014
(Department Decision) to: (a) Create a
rebuttable presumption that an
application for new membership should
be denied if the applicant or its
associated persons are subject to a
pending arbitration claim, and (b)
permit an applicant to overcome a
presumption of denial by demonstrating
its ability to satisfy an unpaid
arbitration award, other adjudicated
customer award, unpaid arbitration
settlement or pending arbitration claim;
(2) adopt a new requirement for a
member, that is not otherwise required
to submit an application for continuing
membership for a specified change in
ownership, control or business
operations, including business
expansion, to seek a materiality
consultation if the member or its
associated persons have a defined
‘‘covered pending arbitration claim,’’
unpaid arbitration award, or an unpaid
arbitration settlement; (3) amend Rule
1017 (Application for Approval of
Change in Ownership, Control, or
Business Operations) to require a
member to demonstrate its ability to
satisfy an unpaid arbitration award or
unpaid settlement related to an
arbitration before effecting the proposed
change thereunder; (4) amend Rule 1013
(New Member Application and
Interview) and Rule 1017 to require an
applicant to provide prompt written
notification of any pending arbitration
claim that is filed, awarded, settled or
becomes unpaid before a decision on an
application constituting final action on
FINRA is served on the applicant; and
(5) make other non-substantive and
technical changes in the specified MAP
rules due to the proposed amendments.4
The text of the proposed rule change
is available on FINRA’s website at
https://www.finra.org, at the principal
office of FINRA 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,
FINRA included statements concerning
the purpose of and basis for the
would also update cross-references and make other
non-substantive, technical changes, and make
corresponding changes to the Forms NMA and
CMA. FINRA is separately developing changes to
the MAP rules in connection with the retrospective
review of this rule set. See Regulatory Notice 18–
23 (July 2018) (‘‘Notice 18–23’’) (requesting
comment on a proposal regarding the MAP rules).
4 For example, the proposed rule change would
require the renumbering of some paragraphs in
Rules 1011 and 1014 and the updating of crossreferences.
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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. FINRA 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
Background
The MAP rules govern the way in
which FINRA reviews a new
membership application (‘‘NMA’’) and a
continuing membership application
(‘‘CMA’’).5 These rules require an
applicant to demonstrate its ability to
comply with applicable securities laws
and FINRA rules, including observing
high standards of commercial honor and
just and equitable principles of trade.
FINRA evaluates an applicant’s
financial, operational, supervisory and
compliance systems to ensure that the
applicant meets the standards set forth
in the MAP rules. Among other factors,
the MAP rules require FINRA to
consider whether persons associated
with an applicant have material
disciplinary actions taken against them
by industry authorities, customer
complaints, adverse arbitrations,
pending arbitration claims, unpaid
arbitration awards, pending or
unadjudicated matters, civil actions,
remedial actions imposed or other
industry-related matters that could pose
a threat to public investors.6
FINRA is proposing to amend the
MAP rules in several ways. First, FINRA
is proposing to amend one standard for
admission and the corresponding factors
therein relating to the presumption to
deny an application for new or
continuing membership. Second, FINRA
is proposing to clarify the various ways
in which an applicant for new or
continuing membership may
demonstrate its ability to satisfy an
unpaid arbitration award, other
adjudicated customer award, unpaid
arbitration settlement, or a pending
arbitration claim during the application
review process, and to preclude an
applicant from effecting any
contemplated change in ownership,
control or business operations until
such demonstration is made and FINRA
approves the application. Third, FINRA
5 Unless otherwise specified, the term
‘‘application’’ refers to either an NMA (or Form
NMA) or CMA (or Form CMA), depending on
context.
6 See generally Rules 1014(a)(3) and 1014(a)(10).
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]]>Agencies
[Federal Register Volume 84, Number 249 (Monday, December 30, 2019)]
[Notices]
[Pages 72086-72088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-28086]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87823; File No. SR-EMERALD-2019-038]
Self-Regulatory Organizations: MIAX Emerald, 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 and Quotes; Exchange
Rule 516, Order Types Defined; Exchange Rule 517, Quote Types Defined;
Exchange Rule 518, Complex Orders; 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
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on December 19, 2019, MIAX Emerald, LLC (``MIAX Emerald'' or
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend Exchange Rule 100,
Definitions; Exchange Rule 503, Openings on the Exchange; Exchange Rule
515, Execution of Orders and Quotes; Exchange Rule 516, Order Types
Defined; Exchange Rule 517, Quote Types Defined; Exchange Rule 518,
Complex Orders; 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/emerald at MIAX
Emerald's principal office, and at the Commission's Public Reference
Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Exchange Rule 100, Definitions;
Exchange Rule 503, Openings on the Exchange; Exchange Rule 515,
Execution of Orders and Quotes; Exchange Rule 516, Order Types Defined;
Exchange Rule 517, Quote Types Defined; Exchange Rule 518, Complex
Orders; and Exchange Rule 521, Nullification and Adjustment of Options
Transactions Including Obvious Errors, to make minor 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. The MIAX Exchange recently amended
Rule 1400, Definitions, found in Chapter XIV of the MIAX Exchange
rules, which are 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 MIAX
Exchange Rule 1400, a number of non-substantive amendments must be made
to correct internal cross references within the Exchange's rulebook.
---------------------------------------------------------------------------
\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(e)(1)(iii) must be
updated from Rule 1400(f) to Rule 1400(g). The internal cross-reference
to Intermarket Sweep Orders in Rule 503(f)(2)(iv)(A)2. must be updated
from Rule 1400(h) to Rule 1400(i). 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
Quotes 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). The internal cross-references to Protected
Bid and Protected Offer in Exchange Rule 517(a)(2)(v) must be updated
from 1400(o) to 1400(p). The internal cross-reference to Eligible
Exchanges in Exchange Rule 518(a)(1) must be updated from Rule 1400(f)
to Rule 1400(g). 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 these changes add clarity and precision to
the Exchange's rules.
[[Page 72087]]
2. Statutory Basis
MIAX Emerald 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.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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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\
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\6\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associate with a Trading
Permit. 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 \7\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \9\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \10\ 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.\11\
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\9\ 17 CFR 240.19b-4(f)(6).
\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ 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
Send an email to [email protected]. Please include
File Number SR-EMERALD-2019-038 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-EMERALD-2019-038. 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
[[Page 72088]]
to make available publicly. All submissions should refer to File Number
SR-EMERALD-2019-038 and should be submitted on or before January 21,
2020.
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\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019-28086 Filed 12-27-19; 8:45 am]
BILLING CODE 8011-01-P
