Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 13.4(a) To Add LTSE as a Source for Market Data for Certain Purposes, 23396-23398 [2020-08819]
Download as PDF
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23396
Federal Register / Vol. 85, No. 81 / Monday, April 27, 2020 / Notices
lotter on DSKBCFDHB2PROD with NOTICES
price requirement, as provided under
Nasdaq’s current rules, prior to
commencing delisting proceedings. The
Commission believes that shortening the
available compliance periods in the
described situations, and immediately
commencing delisting proceedings,
should therefore help to ensure that
only those securities that are suitable for
continued Exchange trading remain
listed on the Exchange.
Further, the low-priced stocks
identified in the criteria raise concerns
about their susceptibility to
manipulation and the prevention of
fraudulent and manipulative acts and
practices as well as the ability to
promote fair and orderly markets on the
Exchange in such securities. As Nasdaq
stated in its proposal, securities listed
on the Exchange are exempt from the
Penny Stock Rules, which provide
enhanced investor protections, among
other things, to prevent fraud and
safeguard against potential market
manipulation.25 The Exchange stated in
support of its proposal that it believes
such exemption may not be appropriate
for abnormally low-priced securities
and securities that are trading below
$1.00 after completing one or more
reverse stock splits with a cumulative
ratio of 250 shares to one or more over
the prior two-year period because these
securities, in the Exchange’s view, may
have similar characteristics to penny
stocks.26 Given the historical concerns
regarding penny stocks, the Commission
believes Nasdaq’s proposal to
commence delisting proceedings sooner
in the process for those companies
meeting the criteria identified in the
proposed rule that fail to satisfy the bid
price requirement is appropriate.
The Commission also notes that
companies that have shortened
compliance periods as a result of the
proposed changes being approved
herein will still be able to appeal the
Staff Delisting Determination to the
Hearings Panel.27 The Hearings Panel,
as noted above, can grant the company
an additional 180 days to comply with
the bid price requirement should the
Hearings Panel determine that the facts
warrant such additional time. The
Commission believes that the shortening
25 See 17 CFR 240.3a51–1(a)(1); 17 CFR 240.15g–
1 to –9. In particular, the Penny Stock Rules
provide protections to investors in low-priced
stocks requiring, among other things, that brokerdealers provide a disclosure document to their
customers describing the risk of investing in penny
stocks and approve customer accounts for
transactions in penny stocks.
26 See Notice, supra note 3, 85 FR at 3738.
27 A timely request for a hearing shall ordinarily
stay the suspension and delisting action pending
the issuance of a written Panel Decision. See Rule
5815(A)(1)(b).
VerDate Sep<11>2014
17:32 Apr 24, 2020
Jkt 250001
of the 180 or 360 calendar day period
to regain compliance with a bid price
deficiency in the situations described
above is appropriate in light of the need
to protect investors and the public
interest and that the Hearings Panel
review process should continue, as it
currently does, to provide a fair
procedure for the review of the Staff
Delisting Determination in accordance
with Section 6(b)(7) of the Act.
Finally, the Commission notes that,
for the same reasons discussed above, it
is appropriate and consistent with the
protection of investors for Nasdaq to
amend its recurring deficiency
provisions to include companies that
fall out of compliance with the bid price
requirement within a year of regaining
such compliance after being granted an
exception from the Hearings Panel, in
those cases where such companies were
previously not eligible for a compliance
period due to a low stock price or
excessive reverse stock splits. The
Commission believes it is reasonable for
the Exchange to determine that such
recurrent violators of the bid price
requirement may not be able to regain
compliance during the compliance
periods and as such should be subject
to an immediate Staff Delisting
Determination, which can then be
appealed to the Hearings Panel.28
The Exchange’s proposal identifies
securities listed on its market that have
had serious and recurrent issues in
meeting and regaining compliance with
the $1.00 bid price continued listing
requirement and proposes to prohibit
such companies from utilizing the
compliance periods and instead
commence immediate delisting
proceedings. This should help to protect
investors and the public interest, while
at the same time providing a fair
procedure for companies to appeal the
Staff Delisting Determination to the
Hearings Panel. Based on the above, the
Commission believes that the proposed
rule change can help to ensure that the
Exchange lists only securities with a
sufficient market, with adequate depth
and liquidity, and with sufficient
investor interest to support an exchange
listing.
Based on the foregoing, the
Commission finds that the proposed
rule change is consistent with the Act.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,29 that the
proposed rule change (SR–NASDAQ–
2020–001) be, and hereby is, approved.
28 See
29 15
PO 00000
Notice, supra note 3, 85 FR at 3738.
U.S.C. 78s(b)(2).
Frm 00072
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–08814 Filed 4–24–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88706; File No. SR–
CboeEDGX–2020–016]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Rule
13.4(a) To Add LTSE as a Source for
Market Data for Certain Purposes
April 21, 2020.
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 April 6,
2020, Cboe EDGX Exchange, Inc. (the
‘‘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 Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGX Exchange, Inc. proposes
to amend Rule 13.4(a), stating it will
utilize LTSE market data from the CQS/
UQDF for purposes of order handling,
routing, execution, and related
compliance processes. The text of the
proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
options/regulation/rule_filings/edgx/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
30 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
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Federal Register / Vol. 85, No. 81 / Monday, April 27, 2020 / Notices
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.
lotter on DSKBCFDHB2PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to update
Rule 13.4(a) regarding the public
disclosure of the sources of data that the
Exchange utilizes when performing: (i)
Order handling; (ii) order routing; (iii)
order execution; and (iv) related
compliance processes to reflect the
operation of the LTSE as a registered
national securities exchange.
On May 10, 2019, the Commission
approved LTSE’s application to register
as a national securities exchange.5 As
part of its transition to exchange status,
LTSE announced that it plans to
commence the entry of orders in test
symbols on April 24, 2020 and plans to
gradually phase in non-test securities no
earlier than May 15, 2020, which may
continue for a period of at least four
weeks.6 The Exchange, therefore,
proposes to update Rule 13.4(a)
regarding the public disclosure of the
sources of data that the Exchange
utilizes when performing: (i) Order
handling; (ii) order routing; (iii) order
execution; and (iv) related compliance
processes to reflect the operation [sic]
the test phase of LTSE as a registered
national securities exchange beginning
on April 24, 2020. Specifically, the
Exchange proposes to amend Rule
13.4(a) to include LTSE by stating it will
utilize LTSE market data from the
Consolidated Quotation System
(‘‘CQS’’)/UTP Quotation Data Feed
(‘‘UQDF’’) for purposes of order
handling, routing, execution, and
related compliance processes.
Additionally, the Exchange proposes
to update the names of the Chicago
Stock Exchange, NSX, Nasdaq OMX
PHLX, and Nasdaq OMX BX noted in
Rule 13.4(a) to NYSE Chicago, NYSE
5 See
6 See
supra note 2 [sic].
supra note 3 [sic].
VerDate Sep<11>2014
17:32 Apr 24, 2020
National, Nasdaq PSX, and Nasdaq BX,
respectively.
unsolicited written comments from
Members or other interested parties.
2. Statutory Basis
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,7 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,8 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
mechanism 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 its
proposal to update Exchange Rule
13.4(a) to include LTSE and update the
names of other exchanges will ensure
that the Rule correctly identifies and
publicly states on a market-by-market
basis all of the specific network
processor and proprietary data feeds
that the Exchange utilizes for the
handling, routing, and execution of
orders, and for performing the
regulatory compliance checks related to
each of those functions. The proposed
rule changes also remove impediments
to and perfects the mechanism of a free
and open market and protects investors
and the public interest because it
provides additional specificity, clarity
and transparency.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes its proposed
rule change would not impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, the Exchange believes the
proposal would enhance competition
because including all of the exchanges
enhances transparency and enables
investors to better assess the quality of
the Exchange’s execution and routing
services.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
7 15
8 15
Jkt 250001
23397
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(5).
Frm 00073
Fmt 4703
Sfmt 4703
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 9 and Rule
19b–4(f)(6) thereunder.10 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
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 11 and Rule 19b–4(f)(6)(iii)
thereunder.12
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),14 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 Exchange states that waiver of the
operative delay would allow the
Exchange to implement the proposed
rule change in anticipation of LTSE’s
launch, thereby providing clarity to
market participants with respect to the
specific network processor and
proprietary data feeds that the Exchange
utilizes for the handling, routing, and
execution of orders, and for performing
the regulatory compliance checks
related to each of those functions. For
this reason, 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 30-day operative delay and
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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.
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
10 17
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23398
Federal Register / Vol. 85, No. 81 / Monday, April 27, 2020 / Notices
designates the proposal operative upon
filing.15
At any time within 60 days of the
filing of this proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–CboeEDGX–2020–016, and
should be submitted on or before May
18, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–08819 Filed 4–24–20; 8:45 am]
BILLING CODE 8011–01–P
lotter on DSKBCFDHB2PROD with NOTICES
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–
CboeEDGX–2020–016 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
AGENCY:
• 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–CboeEDGX–2020–016. 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,
Notice of an application for an order
under sections 6(c) and 17(b) of the
Investment Company Act of 1940
(‘‘Act’’) for exemptions from section
17(a) of the Act, and under section 17(d)
of the Act and rule 17d-1 thereunder to
permit certain joint transactions.
Summary of Application: Applicants
request an order that would permit
certain registered management
investment companies or series thereof
that are advised by Principal Global
Investors, LLC (‘‘PGI’’) 1 to invest in a
private investment vehicle established
by PGI to invest directly in real estate.
Applicants: Principal Funds, Inc.
(‘‘PFI’’), Principal Variable Contracts
Funds, Inc. (‘‘PVC’’), PGI, Principal
Direct Property Fund, LP (‘‘PDPF’’),
Principal Direct Property Fund GP, LLC
(‘‘PDPGP’’) and Principal Commercial
Property Fund REIT, LLC (‘‘PCP REIT’’).
15 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Sep<11>2014
17:32 Apr 24, 2020
Jkt 250001
[Investment Company Act Release No.
33843; 812–14866]
Principal Funds, Inc. et al.
April 21, 2020.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice.
16 17
CFR 200.30–3(a)(12).
includes any successor entity to PGI or an
entity controlling, controlled by, or under common
control with PGI. For purposes of the application,
the term ‘‘successor’’ is limited to an entity that
results from a reorganization into another
jurisdiction or a change in the type of business
organization.
1 PGI
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
Filing Dates: The application was
filed on January 16, 2018 and amended
on June 27, 2018, July 11, 2019,
September 6, 2019, February 5, 2020,
and March 17, 2020.
Hearing or Notification of Hearing: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by emailing the
Commission’s Secretary at SecretarysOffice@sec.gov and serving applicants
with a copy of the request by email.
Hearing requests should be received by
the Commission by 5:30 p.m. on May
18, 2020, and should be accompanied
by proof of service on applicants, in the
form of an affidavit or, for lawyers, a
certificate of service. Pursuant to rule 0–
5 under the Act, hearing requests should
state the nature of the writer’s interest,
any facts bearing upon the desirability
of a hearing on the matter, the reason for
the request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
emailing the Commission’s Secretary at
Secretarys-Office@sec.gov.
ADDRESSES: The Commission:
Secretarys-Office@sec.gov. Applicants:
PGI, Attn: Adam U. Shaikh, Assistant
General Counsel, shaikh.adam@
principal.com.
FOR FURTHER INFORMATION CONTACT:
Laura J. Riegel, Senior Counsel, at (202)
551–3038, or Trace W. Rakestraw,
Branch Chief, at (202) 551–6825
(Division of Investment Management,
Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
website by searching for the file
number, or for an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
Applicants’ Representations
1. Each of PFI and PVC is organized
as a Maryland corporation and is an
open-end management investment
company registered under the Act. PFI
and PVC each consist of multiple Funds
(as defined below).
2. PDPF is organized as a limited
partnership, and applicants state that it
will rely on an exception from the
definition of ‘‘investment company’’
such as section 3(c)(1) or section 3(c)(7)
of the Act (or any other applicable
exclusion). PDPGP, the general partner
of PDPF, is organized as a limited
liability company and will be a direct or
indirect wholly owned subsidiary of
Principal Financial Group, Inc. (‘‘PFG’’).
As general partner of PDPF, PDPGP will
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]]>Agencies
[Federal Register Volume 85, Number 81 (Monday, April 27, 2020)]
[Notices]
[Pages 23396-23398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08819]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88706; File No. SR-CboeEDGX-2020-016]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Rule 13.4(a) To Add LTSE as a Source for Market Data for Certain
Purposes
April 21, 2020.
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 April 6, 2020, Cboe EDGX Exchange, Inc. (the ``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 Exchange filed the
proposal as a ``non-controversial'' proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6)
thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe EDGX Exchange, Inc. proposes to amend Rule 13.4(a), stating it
will utilize LTSE market data from the CQS/UQDF for purposes of order
handling, routing, execution, and related compliance processes. The
text of the proposed rule change is provided in Exhibit 5.
The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/options/regulation/rule_filings/edgx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
[[Page 23397]]
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 update Rule 13.4(a) regarding the public
disclosure of the sources of data that the Exchange utilizes when
performing: (i) Order handling; (ii) order routing; (iii) order
execution; and (iv) related compliance processes to reflect the
operation of the LTSE as a registered national securities exchange.
On May 10, 2019, the Commission approved LTSE's application to
register as a national securities exchange.\5\ As part of its
transition to exchange status, LTSE announced that it plans to commence
the entry of orders in test symbols on April 24, 2020 and plans to
gradually phase in non-test securities no earlier than May 15, 2020,
which may continue for a period of at least four weeks.\6\ The
Exchange, therefore, proposes to update Rule 13.4(a) regarding the
public disclosure of the sources of data that the Exchange utilizes
when performing: (i) Order handling; (ii) order routing; (iii) order
execution; and (iv) related compliance processes to reflect the
operation [sic] the test phase of LTSE as a registered national
securities exchange beginning on April 24, 2020. Specifically, the
Exchange proposes to amend Rule 13.4(a) to include LTSE by stating it
will utilize LTSE market data from the Consolidated Quotation System
(``CQS'')/UTP Quotation Data Feed (``UQDF'') for purposes of order
handling, routing, execution, and related compliance processes.
---------------------------------------------------------------------------
\5\ See supra note 2 [sic].
\6\ See supra note 3 [sic].
---------------------------------------------------------------------------
Additionally, the Exchange proposes to update the names of the
Chicago Stock Exchange, NSX, Nasdaq OMX PHLX, and Nasdaq OMX BX noted
in Rule 13.4(a) to NYSE Chicago, NYSE National, Nasdaq PSX, and Nasdaq
BX, respectively.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\8\ 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 mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that its proposal to update Exchange Rule
13.4(a) to include LTSE and update the names of other exchanges will
ensure that the Rule correctly identifies and publicly states on a
market-by-market basis all of the specific network processor and
proprietary data feeds that the Exchange utilizes for the handling,
routing, and execution of orders, and for performing the regulatory
compliance checks related to each of those functions. The proposed rule
changes also remove impediments to and perfects the mechanism of a free
and open market and protects investors and the public interest because
it provides additional specificity, clarity and transparency.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes its proposed rule change would not impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, the Exchange
believes the proposal would enhance competition because including all
of the exchanges enhances transparency and enables investors to better
assess the quality of the Exchange's execution and routing services.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from Members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6)(iii) thereunder.\12\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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 under Rule 19b-4(f)(6) \13\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\14\ 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.
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
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The Exchange states that waiver of the operative delay would allow
the Exchange to implement the proposed rule change in anticipation of
LTSE's launch, thereby providing clarity to market participants with
respect to the specific network processor and proprietary data feeds
that the Exchange utilizes for the handling, routing, and execution of
orders, and for performing the regulatory compliance checks related to
each of those functions. For this reason, 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 30-day operative delay and
[[Page 23398]]
designates the proposal operative upon filing.\15\
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\15\ For purposes only of waiving the 30-day operative delay,
the Commission 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 this proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, 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-CboeEDGX-2020-016 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-CboeEDGX-2020-016. 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-CboeEDGX-2020-016, and should be
submitted on or before May 18, 2020.
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\16\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-08819 Filed 4-24-20; 8:45 am]
BILLING CODE 8011-01-P
