Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Provide Members Certain Optional Risk Settings Under Proposed Interpretation and Policy .03 of Rule 11.10, 26991-26994 [2020-09639]
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Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Notices
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88783; File No. SR–
CboeEDGX–2020–017]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Provide
Members Certain Optional Risk
Settings Under Proposed
Interpretation and Policy .03 of Rule
11.10
April 30, 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 23,
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 the Substance
of the Proposed Rule Change
Cboe EDGX Exchange, Inc. (‘‘EDGX’’
or the ‘‘Exchange’’) proposes to provide
Members certain optional risk settings
under proposed Interpretation and
Policy .03 of Rule 11.10. 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.
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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to provide Members 5 the
option to utilize certain risk settings
under proposed Interpretation and
Policy .03 of Rule 11.10.6 In order to
help Members manage their risk, the
Exchange proposes to offer optional risk
settings that would authorize the
Exchange to take automated action if a
designated limit for a Member is
breached. Such risk settings would
provide Members with enhanced
abilities to manage their risk with
respect to orders on the Exchange.
Paragraph (a) of proposed Interpretation
and Policy .03 of Rule 11.10 sets forth
the specific risk controls the Exchange
proposes to offer. Specifically, the
Exchange proposes to offer two credit
risk settings as follows:
• The ‘‘Gross Credit Risk Limit’’,
which refers to a pre-established
maximum daily dollar amount for
purchases and sales across all symbols,
where both purchases and sales are
counted as positive values. For purposes
of calculating the Gross Credit Risk
Limit, only executed orders are
included; and
• The ‘‘Net Credit Risk Limit’’, which
refers to a pre-established maximum
daily dollar amount for purchases and
sales across all symbols, where
purchases are counted as positive values
and sales are counted as negative
values. For purposes of calculating the
Net Credit Risk Limit, only executed
orders are included.
The Gross Credit and Net Credit risk
settings are similar to credit controls
measuring both gross and net exposure
provided for in paragraph (h) of
Interpretation and Policy .01 of Rule
11.10, but with certain notable
differences. Importantly, the proposed
risk settings would be applied at a
Market Participant Identifier (‘‘MPID’’)
level, while the controls noted in
paragraph (h) of Interpretation and
Policy .01 are applied at the logical port
level.7 Therefore, the proposed risk
5 See
Exchange Rule 1.5(n).
proposed rule changes are substantially
similar to a recent rule amendment by Cboe BZX
Exchange, Inc. (‘‘BZX’’). See Securities Exchange
Act No. 88599 (April 8, 2020) 85 FR 20793 (April
14, 2020) (the ‘‘BZX Approval’’).
7 A logical port represents a port established by
the Exchange within the Exchange’s System for
6 The
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26991
management functionality would allow
a Member to manage its risk more
comprehensively, instead of relying on
the more limited port level functionality
offered today. Further, the proposed risk
settings would be based on a notional
execution value, while the controls
noted in paragraph (h) of Interpretation
and Policy .03 are applied based on a
combination of outstanding orders on
the Exchange’s book and notional
execution value. The Exchange notes
that the current gross and net notional
controls noted in paragraph (h) of
Interpretation and Policy .03 will
continue to be available in addition to
the proposed risk settings.
Paragraph (c) of proposed
Interpretation and Policy .03 of Rule
11.10 provides that a Member that does
not self-clear may allocate and revoke 8
the responsibility of establishing and
adjusting the risk settings identified in
proposed paragraph (a) to a Clearing
Member that clears transactions on
behalf of the Member, if designated in
a manner prescribed by the Exchange.
The Exchange proposes to harmonize
Exchange Rule 11.13(a) with BZX and
Cboe BYX Exchange, Inc. (‘‘BYX’’) Rules
11.15(a). Specifically, in proposed Rule
11.13(a), the Exchange proposes to (i)
define the term ‘‘Clearing Member’’; 9
(ii) memorialize in its rules the process
by which a Clearing Member shall
affirm its responsibility for clearing any
and all trades executed by the Member
designating it as its Clearing Firm; and
(iii) memorialize the fact that the rules
of a Qualified Clearing Agency shall
govern with respect to the clearance and
settlement of any transactions executed
by the Member on the Exchange. While
the foregoing proposed changes to Rule
11.13(a) were not previously
memorialized in Exchange Rules, they
were contemplated in Exhibit F of the
Exchange’s original Form 1
application.10 As such, the proposed
changes to Rule 11.13(a) involve no
substantive changes.
By way of background, Exchange Rule
11.13(a) requires that all transactions
passing through the facilities of the
trading and billing purposes. Each logical port
established is specific to a Member or non-Member
and grants that Member or non-Member the ability
to accomplish a specific function, such as order
entry, order cancellation, or data receipt.
8 As discussed below, if a Member revokes the
responsibility of establishing and adjusting the risk
settings identified in proposed paragraph (a), the
settings applied by the Member would be
applicable.
9 As proposed, the term ‘‘Clearing Member’’ refers
to a Member that is a member of a Qualified
Clearing Agency and clears transactions on behalf
of another Member. See proposed Rule 11.13(a).
10 Specifically, see item 3 entitled ‘‘Clearing
Letter of Guarantee’’ included in Exhibit F of the
Exchange’s original Form 1 application.
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Exchange shall be cleared and settled
through a Qualified Clearing Agency
using a continuous net settlement
system.11 As reflected in the proposed
changes to Rule 11.13(a) above, this
requirement may be satisfied by direct
participation, use of direct clearing
services, or by entry into a
corresponding clearing arrangement
with another Member that clears
through a Qualified Clearing Agency
(i.e., a Clearing Member). If a Member
clears transactions through another
Member that is a Clearing Member, such
Clearing Member shall affirm to the
Exchange in writing, through letter of
authorization, letter of guarantee or
other agreement acceptable to the
Exchange, its agreement to assume
responsibility for clearing and settling
any and all trades executed by the
Member designating it as its clearing
firm.12 Thus, while not all Members are
Clearing Members, all Members are
required to either clear their own
transactions or to have in place a
relationship with a Clearing Member
that has agreed to clear transactions on
their behalf in order to conduct business
on the Exchange. Therefore, the Clearing
Member that guarantees the Member’s
transactions on the Exchange has a
financial interest in the risk settings
utilized within the System 13 by the
Member.
Paragraph (c) is proposed by the
Exchange in order to offer Clearing
Members an opportunity to manage
their risk of clearing on behalf of other
Members, if authorized to do so by the
Member trading on the Exchange.
Specifically, the Exchange believes such
functionality would help Clearing
Members to better monitor and manage
the potential risks that they assume
when clearing for Members of the
Exchange. A Member may allocate or
revoke the responsibility of establishing
and adjusting the risk settings identified
in proposed paragraph (a) to its Clearing
Member via the risk management tool
available on the web portal at any time.
By allocating such responsibility, a
Member would thereby cede all control
11 The term ‘‘Qualified Clearing Agency’’ means
a clearing agency registered with the Commission
pursuant to Section 17A of the Act that is deemed
qualified by the Exchange. See Exchange Rule
1.5(w). The rules of any such clearing agency shall
govern with the respect to the clearance and
settlement of any transactions executed by the
Member on the Exchange.
12 A Member can designate one Clearing Member
per Market Participant Identifier (‘‘MPID’’)
associated with the Member.
13 System is defined as ‘‘the electronic
communications and trading facility designated by
the Board through which securities orders of
Members are consolidated for ranking, execution
and, when applicable, routing away.’’ See Exchange
Rule 1.5(cc).
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and ability to establish and adjust such
risk settings to its Clearing Member
unless and until such responsibility is
revoked by the Member, as discussed in
further detail below. Because the
Member is responsible for its own
trading activity, the Exchange will not
provide a Clearing Member
authorization to establish and adjust
risk settings on behalf of a Member
without first receiving consent from the
Member. The Exchange would consider
a Member to have provided such
consent if it allocates the responsibility
to establish and adjust risk settings to its
Clearing Member via the risk
management tool available on the web
portal. By allocating such
responsibilities to its Clearing Member,
the Member consents to the Exchange
taking action, as set forth in proposed
paragraph (d) of Interpretation and
Policy .03, with respect to the Member’s
trading activity. Specifically, if the risk
setting(s) established by the Clearing
Member are breached, the Member
consents that the Exchange will
automatically block new orders
submitted and cancel open orders until
such time that the applicable risk setting
is adjusted to a higher limit by the
Clearing Member. A Member may also
revoke responsibility allocated to its
Clearing Member pursuant to this
paragraph at any time via the risk
management tool available on the web
portal.
Paragraph (b) of proposed
Interpretation and Policy .03 of Rule
11.10 provides that either a Member or
its Clearing Member, if allocated such
responsibility pursuant to paragraph (c)
of the proposed Interpretation and
Policy, may establish and adjust limits
for the risk settings provided in
proposed paragraph (a) of Interpretation
and Policy .03. A Member or Clearing
Member may establish and adjust limits
for the risk settings through the
Exchange’s risk management tool
available on the web portal. The risk
management web portal page will also
provide a view of all applicable limits
for each Member, which will be made
available to the Member and its Clearing
Member, as discussed in further detail
below.
Proposed paragraph (d) of
Interpretation and Policy .03 of Rule
11.10 would provide optional alerts to
signal when a Member is approaching
its designated limit. If enabled, the
alerts would generate when the Member
breaches certain percentage thresholds
of its designated risk limit, as
determined by the Exchange. Based on
current industry standards, the
Exchange anticipates initially setting
these thresholds at fifty, seventy, or
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ninety percent of the designated risk
limit. Both the Member and Clearing
Member 14 would have the option to
enable the alerts via the risk
management tool on the web portal and
designate email recipients of the
notification.15 The proposed alert
system is meant to warn a Member and
Clearing Member of the Member’s
trading activity, and will have no
impact on the Member’s order and trade
activity if a warning percentage is
breached. Proposed paragraph (e) of
Interpretation and Policy .03 of Rule
11.10 would authorize the Exchange to
automatically block new orders
submitted and cancel all open orders in
the event that a risk setting is breached.
The Exchange will continue to block
new orders submitted until the Member
or Clearing Member, if allocated such
responsibility pursuant to paragraph (c)
of proposed Interpretation and Policy
.03, adjusts the risk settings to a higher
threshold. The proposed functionality is
designed to assist Members and Clearing
Members in the management of, and
risk control over, their credit risk.
Further, the proposed functionality
would allow the Member to seamlessly
avoid unintended executions that
exceed their stated risk tolerance.
The Exchange does not guarantee that
the proposed risk settings described in
proposed Interpretation and Policy .03,
are sufficiently comprehensive to meet
all of a Member’s risk management
needs. Pursuant to Rule 15c3–5 under
the Act,16 a broker-dealer with market
access must perform appropriate due
diligence to assure that controls are
reasonably designed to be effective, and
otherwise consistent with the rule.17
Use of the Exchange’s risk settings
included in proposed Interpretation and
Policy .03 will not automatically
constitute compliance with Exchange or
federal rules and responsibility for
compliance with all Exchange and SEC
rules remains with the Member.
Lastly, as the Exchange currently has
the authority to share any of a Member’s
risk settings specified in Interpretation
and Policy .01 of Rule 11.10 under
Exchange Rule 11.13(f) with the
Clearing Member that clears
transactions on behalf of the Member,
14 A Clearing Member would have the ability to
enable alerts regardless of whether it was allocated
responsibilities pursuant to proposed paragraph (c).
15 The Member and Clearing Member may input
any email address for which an alert will be sent
via the risk management tool on the web portal.
16 17 CFR 240.15c3–5.
17 See Division of Trading and Markets,
Responses to Frequently Asked Questions
Concerning Risk Management Controls for Brokers
or Dealers with Market Access, available at https://
www.sec.gov/divisions/marketreg/faq-15c-5-riskmanagement-controls-bd.htm.
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the Exchange also seeks such authority
as it pertains to risk settings specified in
proposed Interpretation and Policy .03.
Existing Rule 11.13(f) provides the
Exchange with authority to directly
provide Clearing Members that clear
transactions on behalf of a Member, to
share any of the Member’s risk settings
set forth under Interpretation and Policy
.01 to Rule 11.10.18 The purpose of such
a provision under Rule 11.13(f) was
implemented in order to reduce the
administrative burden on participants
on the Exchange, including both
Clearing Members and Members, and to
ensure that Clearing Members receive
information that is up to date and
conforms to the settings active in the
System. Further, the provision was
implemented because the Exchange
believed such functionality would help
Clearing Members to better monitor and
manage the potential risks that they
assume when clearing for Members of
the Exchange. Now, the Exchange also
proposes to amend paragraph (f) of
Exchange Rule 11.13 to authorize the
Exchange to share any of a Member’s
risk settings specified in proposed
Interpretation and Policy .03 to Rule
11.10 with the Clearing Member that
clears transactions on behalf of the
Member and to update the term clearing
firm to the proposed defined term
Clearing Member. The Exchange notes
that the use by a Member of the risk
settings offered by the Exchange is
optional. By using these proposed
optional risk settings, a Member
therefore also opts-in to the Exchange
sharing its designated risk settings with
its Clearing Member. The Exchange
believes that its proposal to offer
additional risk settings will allow
Members to better manage their credit
risk. Further, by allowing Members to
allocate the responsibility for
establishing and adjusting such risk
settings to its Clearing Member, the
Exchange believes Clearing Members
may reduce potential risks that they
assume when clearing for Members of
the Exchange. The Exchange also
believes that its proposal to share a
Member’s risk settings set forth under
proposed Interpretation and Policy .03
to Rule 11.10 directly with Clearing
Members reduces the administrative
burden on participants on the Exchange,
including both Clearing Members and
18 By using the optional risk settings provided in
Interpretation and Policy .01, a Member opts-in to
the Exchange sharing its risk settings with its
Clearing Member. Any Member that does not wish
to share such risk settings with its Clearing Member
can avoid sharing such settings by becoming a
Clearing Member. See Securities Exchange Act
Release No. 80607 (May 5, 2017) 82 FR 22027 (May
11, 2017) (SR–BatsEDGX–2017–16).
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Members, and ensures that Clearing
Members are receiving information that
is up to date and conforms to the
settings active in the System.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.19 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 20 requirements that the rules of
an exchange be 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.
Specifically, the Exchange believes
the proposed amendment will remove
impediments to and perfect the
mechanism of a free and open market
and a national market system because it
provides additional functionality for a
Member to manage its credit risk. In
addition, the proposed risk settings
could provide Clearing Members, who
have assumed certain risks of Members,
greater control over risk tolerance and
exposure on behalf of their
correspondent Members, if allocated
responsibility pursuant to proposed
paragraph (c), while also providing an
alert system that would help to ensure
that both Members and its Clearing
Member are aware of developing issues.
As such, the Exchange believes that the
proposed risk settings would provide a
means to address potentially marketimpacting events, helping to ensure the
proper functioning of the market.
In addition, the Exchange believes
that the proposed rule change is
designed to protect investors and the
public interest because the proposed
functionality is a form of risk mitigation
that will aid Members and Clearing
Members in minimizing their financial
exposure and reduce the potential for
disruptive, market-wide events. In turn,
the introduction of such risk
management functionality could
enhance the integrity of trading on the
securities markets and help to assure the
stability of the financial system.
19 15
20 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00071
Fmt 4703
Further, the Exchange believes that
the proposed rule will foster
cooperation and coordination with
persons facilitating transactions in
securities because the Exchange will
provide alerts when a Member’s trading
activity reaches certain thresholds,
which will be available to both the
Member and Clearing Member. As such,
the Exchange may help Clearing
Members monitor the risk levels of
correspondent Members and provide
tools for Clearing Members, if allocated
such responsibility, to take action.
The proposal will permit Clearing
Members who have a financial interest
in the risk settings of Members to better
monitor and manage the potential risks
assumed by Clearing Members, thereby
providing Clearing Members with
greater control and flexibility over
setting their own risk tolerance and
exposure. To the extent a Clearing
Member might reasonably require a
Member to provide access to its risk
settings as a prerequisite to continuing
to clear trades on the Member’s behalf,
the Exchange’s proposal to share those
risk settings directly reduces the
administrative burden on participants
on the Exchange, including both
Clearing Members and Members.
Moreover, providing Clearing Members
with the ability to see the risk settings
established for Members for which they
clear will foster efficiencies in the
market and remove impediments to and
perfect the mechanism of a free and
open market and a national market
system. The proposal also ensures that
Clearing Members are receiving
information that is up to date and
conforms to the settings active in the
System. The Exchange believes that the
proposal is consistent with the Act,
particularly Section 6(b)(5),21 because it
will foster cooperation and coordination
with persons engaged in facilitating
transactions in securities and more
generally, will protect investors and the
public interest, by allowing Clearing
Members to better monitor their risk
exposure and by fostering efficiencies in
the market and removing impediments
to and perfect the mechanism of a free
and open market and a national market
system.
Finally, the Exchange believes that
the proposed rule change does not
unfairly discriminate among the
Exchange’s Members because use of the
risk settings is optional and are not a
prerequisite for participation on the
Exchange. The proposed risk settings
are completely voluntary and, as they
relate solely to optional risk
management functionality, no Member
21 15
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U.S.C. 78f(b)(5).
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is required or under any regulatory
obligation to utilize them.
19(b)(3)(A) of the Act 23 and Rule 19b–
4(f)(6) thereunder.24
The proposed amendments to Rule
11.13(a) will harmonize Exchange Rules
with BZX and BYX Rules 11.15(a).
While the proposed changes to Rule
11.13(a) were not previously
memorialized in Exchange Rules, they
were contemplated in Exhibit F of the
Exchange’s original Form 1 application.
As such, the proposed changes to Rule
11.13(a) involve no substantive changes.
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 25 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 26
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 asked
the Commission to waive the 30-day
operative delay so that the Exchange
may implement the proposed risk
controls on the anticipated launch date
of April 24, 2020. The Exchange states
that waiver of the operative delay would
allow Members to immediately utilize
the proposed functionality to manage
their risk. 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. Therefore, the
Commission hereby waives the
operative delay and designates the
proposal as operative upon filing.27
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. In fact, the
Exchange believes that the proposal may
have a positive effect on competition
because it would allow the Exchange to
offer risk management functionality that
is comparable to functionality that has
been adopted by other national
securities exchanges.22 Further, by
providing Members and their Clearing
Members additional means to monitor
and control risk, the proposed rule may
increase confidence in the proper
functioning of the markets and
contribute to additional competition
among trading venues and brokerdealers. Rather than impede
competition, the proposal is designed to
facilitate more robust risk management
by Members and Clearing Members,
which, in turn, could enhance the
integrity of trading on the securities
markets and help to assure the stability
of the financial system.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
note 6.
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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:
The Exchange neither solicited nor
received comments on the proposed
rule change.
22 Supra
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.
23 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
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.
25 17 CFR 240.19b–4(f)(6).
26 17 CFR 240.19b–4(f)(6)(iii).
27 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).
24 17
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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–2020–017 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–2020–017. 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 such
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–2020–017, and
should be submitted on or before May
27, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.28
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–09639 Filed 5–5–20; 8:45 am]
BILLING CODE 8011–01–P
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[Federal Register Volume 85, Number 88 (Wednesday, May 6, 2020)]
[Notices]
[Pages 26991-26994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09639]
[[Page 26991]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88783; File No. SR-CboeEDGX-2020-017]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Provide Members Certain Optional Risk Settings Under Proposed
Interpretation and Policy .03 of Rule 11.10
April 30, 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 23, 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.
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\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).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
Cboe EDGX Exchange, Inc. (``EDGX'' or the ``Exchange'') proposes to
provide Members certain optional risk settings under proposed
Interpretation and Policy .03 of Rule 11.10. 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.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to provide Members \5\
the option to utilize certain risk settings under proposed
Interpretation and Policy .03 of Rule 11.10.\6\ In order to help
Members manage their risk, the Exchange proposes to offer optional risk
settings that would authorize the Exchange to take automated action if
a designated limit for a Member is breached. Such risk settings would
provide Members with enhanced abilities to manage their risk with
respect to orders on the Exchange. Paragraph (a) of proposed
Interpretation and Policy .03 of Rule 11.10 sets forth the specific
risk controls the Exchange proposes to offer. Specifically, the
Exchange proposes to offer two credit risk settings as follows:
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\5\ See Exchange Rule 1.5(n).
\6\ The proposed rule changes are substantially similar to a
recent rule amendment by Cboe BZX Exchange, Inc. (``BZX''). See
Securities Exchange Act No. 88599 (April 8, 2020) 85 FR 20793 (April
14, 2020) (the ``BZX Approval'').
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The ``Gross Credit Risk Limit'', which refers to a pre-
established maximum daily dollar amount for purchases and sales across
all symbols, where both purchases and sales are counted as positive
values. For purposes of calculating the Gross Credit Risk Limit, only
executed orders are included; and
The ``Net Credit Risk Limit'', which refers to a pre-
established maximum daily dollar amount for purchases and sales across
all symbols, where purchases are counted as positive values and sales
are counted as negative values. For purposes of calculating the Net
Credit Risk Limit, only executed orders are included.
The Gross Credit and Net Credit risk settings are similar to credit
controls measuring both gross and net exposure provided for in
paragraph (h) of Interpretation and Policy .01 of Rule 11.10, but with
certain notable differences. Importantly, the proposed risk settings
would be applied at a Market Participant Identifier (``MPID'') level,
while the controls noted in paragraph (h) of Interpretation and Policy
.01 are applied at the logical port level.\7\ Therefore, the proposed
risk management functionality would allow a Member to manage its risk
more comprehensively, instead of relying on the more limited port level
functionality offered today. Further, the proposed risk settings would
be based on a notional execution value, while the controls noted in
paragraph (h) of Interpretation and Policy .03 are applied based on a
combination of outstanding orders on the Exchange's book and notional
execution value. The Exchange notes that the current gross and net
notional controls noted in paragraph (h) of Interpretation and Policy
.03 will continue to be available in addition to the proposed risk
settings.
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\7\ A logical port represents a port established by the Exchange
within the Exchange's System for trading and billing purposes. Each
logical port established is specific to a Member or non-Member and
grants that Member or non-Member the ability to accomplish a
specific function, such as order entry, order cancellation, or data
receipt.
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Paragraph (c) of proposed Interpretation and Policy .03 of Rule
11.10 provides that a Member that does not self-clear may allocate and
revoke \8\ the responsibility of establishing and adjusting the risk
settings identified in proposed paragraph (a) to a Clearing Member that
clears transactions on behalf of the Member, if designated in a manner
prescribed by the Exchange. The Exchange proposes to harmonize Exchange
Rule 11.13(a) with BZX and Cboe BYX Exchange, Inc. (``BYX'') Rules
11.15(a). Specifically, in proposed Rule 11.13(a), the Exchange
proposes to (i) define the term ``Clearing Member''; \9\ (ii)
memorialize in its rules the process by which a Clearing Member shall
affirm its responsibility for clearing any and all trades executed by
the Member designating it as its Clearing Firm; and (iii) memorialize
the fact that the rules of a Qualified Clearing Agency shall govern
with respect to the clearance and settlement of any transactions
executed by the Member on the Exchange. While the foregoing proposed
changes to Rule 11.13(a) were not previously memorialized in Exchange
Rules, they were contemplated in Exhibit F of the Exchange's original
Form 1 application.\10\ As such, the proposed changes to Rule 11.13(a)
involve no substantive changes.
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\8\ As discussed below, if a Member revokes the responsibility
of establishing and adjusting the risk settings identified in
proposed paragraph (a), the settings applied by the Member would be
applicable.
\9\ As proposed, the term ``Clearing Member'' refers to a Member
that is a member of a Qualified Clearing Agency and clears
transactions on behalf of another Member. See proposed Rule
11.13(a).
\10\ Specifically, see item 3 entitled ``Clearing Letter of
Guarantee'' included in Exhibit F of the Exchange's original Form 1
application.
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By way of background, Exchange Rule 11.13(a) requires that all
transactions passing through the facilities of the
[[Page 26992]]
Exchange shall be cleared and settled through a Qualified Clearing
Agency using a continuous net settlement system.\11\ As reflected in
the proposed changes to Rule 11.13(a) above, this requirement may be
satisfied by direct participation, use of direct clearing services, or
by entry into a corresponding clearing arrangement with another Member
that clears through a Qualified Clearing Agency (i.e., a Clearing
Member). If a Member clears transactions through another Member that is
a Clearing Member, such Clearing Member shall affirm to the Exchange in
writing, through letter of authorization, letter of guarantee or other
agreement acceptable to the Exchange, its agreement to assume
responsibility for clearing and settling any and all trades executed by
the Member designating it as its clearing firm.\12\ Thus, while not all
Members are Clearing Members, all Members are required to either clear
their own transactions or to have in place a relationship with a
Clearing Member that has agreed to clear transactions on their behalf
in order to conduct business on the Exchange. Therefore, the Clearing
Member that guarantees the Member's transactions on the Exchange has a
financial interest in the risk settings utilized within the System \13\
by the Member.
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\11\ The term ``Qualified Clearing Agency'' means a clearing
agency registered with the Commission pursuant to Section 17A of the
Act that is deemed qualified by the Exchange. See Exchange Rule
1.5(w). The rules of any such clearing agency shall govern with the
respect to the clearance and settlement of any transactions executed
by the Member on the Exchange.
\12\ A Member can designate one Clearing Member per Market
Participant Identifier (``MPID'') associated with the Member.
\13\ System is defined as ``the electronic communications and
trading facility designated by the Board through which securities
orders of Members are consolidated for ranking, execution and, when
applicable, routing away.'' See Exchange Rule 1.5(cc).
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Paragraph (c) is proposed by the Exchange in order to offer
Clearing Members an opportunity to manage their risk of clearing on
behalf of other Members, if authorized to do so by the Member trading
on the Exchange. Specifically, the Exchange believes such functionality
would help Clearing Members to better monitor and manage the potential
risks that they assume when clearing for Members of the Exchange. A
Member may allocate or revoke the responsibility of establishing and
adjusting the risk settings identified in proposed paragraph (a) to its
Clearing Member via the risk management tool available on the web
portal at any time. By allocating such responsibility, a Member would
thereby cede all control and ability to establish and adjust such risk
settings to its Clearing Member unless and until such responsibility is
revoked by the Member, as discussed in further detail below. Because
the Member is responsible for its own trading activity, the Exchange
will not provide a Clearing Member authorization to establish and
adjust risk settings on behalf of a Member without first receiving
consent from the Member. The Exchange would consider a Member to have
provided such consent if it allocates the responsibility to establish
and adjust risk settings to its Clearing Member via the risk management
tool available on the web portal. By allocating such responsibilities
to its Clearing Member, the Member consents to the Exchange taking
action, as set forth in proposed paragraph (d) of Interpretation and
Policy .03, with respect to the Member's trading activity.
Specifically, if the risk setting(s) established by the Clearing Member
are breached, the Member consents that the Exchange will automatically
block new orders submitted and cancel open orders until such time that
the applicable risk setting is adjusted to a higher limit by the
Clearing Member. A Member may also revoke responsibility allocated to
its Clearing Member pursuant to this paragraph at any time via the risk
management tool available on the web portal.
Paragraph (b) of proposed Interpretation and Policy .03 of Rule
11.10 provides that either a Member or its Clearing Member, if
allocated such responsibility pursuant to paragraph (c) of the proposed
Interpretation and Policy, may establish and adjust limits for the risk
settings provided in proposed paragraph (a) of Interpretation and
Policy .03. A Member or Clearing Member may establish and adjust limits
for the risk settings through the Exchange's risk management tool
available on the web portal. The risk management web portal page will
also provide a view of all applicable limits for each Member, which
will be made available to the Member and its Clearing Member, as
discussed in further detail below.
Proposed paragraph (d) of Interpretation and Policy .03 of Rule
11.10 would provide optional alerts to signal when a Member is
approaching its designated limit. If enabled, the alerts would generate
when the Member breaches certain percentage thresholds of its
designated risk limit, as determined by the Exchange. Based on current
industry standards, the Exchange anticipates initially setting these
thresholds at fifty, seventy, or ninety percent of the designated risk
limit. Both the Member and Clearing Member \14\ would have the option
to enable the alerts via the risk management tool on the web portal and
designate email recipients of the notification.\15\ The proposed alert
system is meant to warn a Member and Clearing Member of the Member's
trading activity, and will have no impact on the Member's order and
trade activity if a warning percentage is breached. Proposed paragraph
(e) of Interpretation and Policy .03 of Rule 11.10 would authorize the
Exchange to automatically block new orders submitted and cancel all
open orders in the event that a risk setting is breached. The Exchange
will continue to block new orders submitted until the Member or
Clearing Member, if allocated such responsibility pursuant to paragraph
(c) of proposed Interpretation and Policy .03, adjusts the risk
settings to a higher threshold. The proposed functionality is designed
to assist Members and Clearing Members in the management of, and risk
control over, their credit risk. Further, the proposed functionality
would allow the Member to seamlessly avoid unintended executions that
exceed their stated risk tolerance.
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\14\ A Clearing Member would have the ability to enable alerts
regardless of whether it was allocated responsibilities pursuant to
proposed paragraph (c).
\15\ The Member and Clearing Member may input any email address
for which an alert will be sent via the risk management tool on the
web portal.
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The Exchange does not guarantee that the proposed risk settings
described in proposed Interpretation and Policy .03, are sufficiently
comprehensive to meet all of a Member's risk management needs. Pursuant
to Rule 15c3-5 under the Act,\16\ a broker-dealer with market access
must perform appropriate due diligence to assure that controls are
reasonably designed to be effective, and otherwise consistent with the
rule.\17\ Use of the Exchange's risk settings included in proposed
Interpretation and Policy .03 will not automatically constitute
compliance with Exchange or federal rules and responsibility for
compliance with all Exchange and SEC rules remains with the Member.
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\16\ 17 CFR 240.15c3-5.
\17\ See Division of Trading and Markets, Responses to
Frequently Asked Questions Concerning Risk Management Controls for
Brokers or Dealers with Market Access, available at https://www.sec.gov/divisions/marketreg/faq-15c-5-risk-management-controls-bd.htm.
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Lastly, as the Exchange currently has the authority to share any of
a Member's risk settings specified in Interpretation and Policy .01 of
Rule 11.10 under Exchange Rule 11.13(f) with the Clearing Member that
clears transactions on behalf of the Member,
[[Page 26993]]
the Exchange also seeks such authority as it pertains to risk settings
specified in proposed Interpretation and Policy .03. Existing Rule
11.13(f) provides the Exchange with authority to directly provide
Clearing Members that clear transactions on behalf of a Member, to
share any of the Member's risk settings set forth under Interpretation
and Policy .01 to Rule 11.10.\18\ The purpose of such a provision under
Rule 11.13(f) was implemented in order to reduce the administrative
burden on participants on the Exchange, including both Clearing Members
and Members, and to ensure that Clearing Members receive information
that is up to date and conforms to the settings active in the System.
Further, the provision was implemented because the Exchange believed
such functionality would help Clearing Members to better monitor and
manage the potential risks that they assume when clearing for Members
of the Exchange. Now, the Exchange also proposes to amend paragraph (f)
of Exchange Rule 11.13 to authorize the Exchange to share any of a
Member's risk settings specified in proposed Interpretation and Policy
.03 to Rule 11.10 with the Clearing Member that clears transactions on
behalf of the Member and to update the term clearing firm to the
proposed defined term Clearing Member. The Exchange notes that the use
by a Member of the risk settings offered by the Exchange is optional.
By using these proposed optional risk settings, a Member therefore also
opts-in to the Exchange sharing its designated risk settings with its
Clearing Member. The Exchange believes that its proposal to offer
additional risk settings will allow Members to better manage their
credit risk. Further, by allowing Members to allocate the
responsibility for establishing and adjusting such risk settings to its
Clearing Member, the Exchange believes Clearing Members may reduce
potential risks that they assume when clearing for Members of the
Exchange. The Exchange also believes that its proposal to share a
Member's risk settings set forth under proposed Interpretation and
Policy .03 to Rule 11.10 directly with Clearing Members reduces the
administrative burden on participants on the Exchange, including both
Clearing Members and Members, and ensures that Clearing Members are
receiving information that is up to date and conforms to the settings
active in the System.
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\18\ By using the optional risk settings provided in
Interpretation and Policy .01, a Member opts-in to the Exchange
sharing its risk settings with its Clearing Member. Any Member that
does not wish to share such risk settings with its Clearing Member
can avoid sharing such settings by becoming a Clearing Member. See
Securities Exchange Act Release No. 80607 (May 5, 2017) 82 FR 22027
(May 11, 2017) (SR-BatsEDGX-2017-16).
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\19\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \20\ requirements that the rules of an exchange be
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.
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\19\ 15 U.S.C. 78f(b).
\20\ 15 U.S.C. 78f(b)(5).
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Specifically, the Exchange believes the proposed amendment will
remove impediments to and perfect the mechanism of a free and open
market and a national market system because it provides additional
functionality for a Member to manage its credit risk. In addition, the
proposed risk settings could provide Clearing Members, who have assumed
certain risks of Members, greater control over risk tolerance and
exposure on behalf of their correspondent Members, if allocated
responsibility pursuant to proposed paragraph (c), while also providing
an alert system that would help to ensure that both Members and its
Clearing Member are aware of developing issues. As such, the Exchange
believes that the proposed risk settings would provide a means to
address potentially market-impacting events, helping to ensure the
proper functioning of the market.
In addition, the Exchange believes that the proposed rule change is
designed to protect investors and the public interest because the
proposed functionality is a form of risk mitigation that will aid
Members and Clearing Members in minimizing their financial exposure and
reduce the potential for disruptive, market-wide events. In turn, the
introduction of such risk management functionality could enhance the
integrity of trading on the securities markets and help to assure the
stability of the financial system.
Further, the Exchange believes that the proposed rule will foster
cooperation and coordination with persons facilitating transactions in
securities because the Exchange will provide alerts when a Member's
trading activity reaches certain thresholds, which will be available to
both the Member and Clearing Member. As such, the Exchange may help
Clearing Members monitor the risk levels of correspondent Members and
provide tools for Clearing Members, if allocated such responsibility,
to take action.
The proposal will permit Clearing Members who have a financial
interest in the risk settings of Members to better monitor and manage
the potential risks assumed by Clearing Members, thereby providing
Clearing Members with greater control and flexibility over setting
their own risk tolerance and exposure. To the extent a Clearing Member
might reasonably require a Member to provide access to its risk
settings as a prerequisite to continuing to clear trades on the
Member's behalf, the Exchange's proposal to share those risk settings
directly reduces the administrative burden on participants on the
Exchange, including both Clearing Members and Members. Moreover,
providing Clearing Members with the ability to see the risk settings
established for Members for which they clear will foster efficiencies
in the market and remove impediments to and perfect the mechanism of a
free and open market and a national market system. The proposal also
ensures that Clearing Members are receiving information that is up to
date and conforms to the settings active in the System. The Exchange
believes that the proposal is consistent with the Act, particularly
Section 6(b)(5),\21\ because it will foster cooperation and
coordination with persons engaged in facilitating transactions in
securities and more generally, will protect investors and the public
interest, by allowing Clearing Members to better monitor their risk
exposure and by fostering efficiencies in the market and removing
impediments to and perfect the mechanism of a free and open market and
a national market system.
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\21\ 15 U.S.C. 78f(b)(5).
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Finally, the Exchange believes that the proposed rule change does
not unfairly discriminate among the Exchange's Members because use of
the risk settings is optional and are not a prerequisite for
participation on the Exchange. The proposed risk settings are
completely voluntary and, as they relate solely to optional risk
management functionality, no Member
[[Page 26994]]
is required or under any regulatory obligation to utilize them.
The proposed amendments to Rule 11.13(a) will harmonize Exchange
Rules with BZX and BYX Rules 11.15(a). While the proposed changes to
Rule 11.13(a) were not previously memorialized in Exchange Rules, they
were contemplated in Exhibit F of the Exchange's original Form 1
application. As such, the proposed changes to Rule 11.13(a) involve no
substantive changes.
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. In fact, the Exchange
believes that the proposal may have a positive effect on competition
because it would allow the Exchange to offer risk management
functionality that is comparable to functionality that has been adopted
by other national securities exchanges.\22\ Further, by providing
Members and their Clearing Members additional means to monitor and
control risk, the proposed rule may increase confidence in the proper
functioning of the markets and contribute to additional competition
among trading venues and broker-dealers. Rather than impede
competition, the proposal is designed to facilitate more robust risk
management by Members and Clearing Members, which, in turn, could
enhance the integrity of trading on the securities markets and help to
assure the stability of the financial system.
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\22\ Supra note 6.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \23\ and Rule 19b-
4(f)(6) thereunder.\24\
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\23\ 15 U.S.C. 78s(b)(3)(A).
\24\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-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 \25\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \26\ 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 asked the Commission to waive the 30-day operative delay so that
the Exchange may implement the proposed risk controls on the
anticipated launch date of April 24, 2020. The Exchange states that
waiver of the operative delay would allow Members to immediately
utilize the proposed functionality to manage their risk. 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. Therefore, the Commission hereby waives the operative delay
and designates the proposal as operative upon filing.\27\
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\25\ 17 CFR 240.19b-4(f)(6).
\26\ 17 CFR 240.19b-4(f)(6)(iii).
\27\ 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-CboeEDGX-2020-017 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-2020-017. 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 such 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-2020-017, and should be
submitted on or before May 27, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
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\28\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-09639 Filed 5-5-20; 8:45 am]
BILLING CODE 8011-01-P
