Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Continue Suspending the Application of Order Price Collars in Rule 11.190(f)(1) Until December 8, 2020, 65882-65884 [2020-22734]

Download as PDF 65882 Federal Register / Vol. 85, No. 201 / Friday, October 16, 2020 / Notices Document description ADAMS Accession No. Peach Bottom Atomic Power Station, Units 2 and 3 Docket Nos. 50–277 and 50–278 Peach Bottom Atomic Power Station, Units 2 and 3—COVID–19 related request for exemption from 10 CFR part 26 work hours requirements, dated August 28, 2020. Peach Bottom Atomic Power Station, Units 2 and 3—exemption from select requirements of 10 CFR part 26 (EPID L–2020–LLE–0138), dated September 10, 2020. ML20241A078. ML20247J620. Perry Nuclear Power Plant, Unit No. 1 Docket No. 50–440 Perry Nuclear Power Plant, Unit No. 1—request for one-time exemption from 10 CFR part 50, appendix E, biennial emergency preparedness exercise requirements due to COVID–19 pandemic, dated August 3, 2020. Perry Nuclear Power Plant, Unit No. 1—one-time exemption from biennial emergency preparedness exercise requirements of 10 CFR part 50, appendix E, ‘‘Emergency Planning and Preparedness for Production and Utilization Facilities,’’ section IV.F (EPID L–2020–LLE–0125 [COVID 19]), dated September 11, 2020. ML20216A258. ML20246G054. Surry Power Station, Unit Nos. 1 and 2 Docket Nos. 50–280 and 50–281 Surry Power Station, Unit Nos. 1 and 2—request for exemption from select requirements of 10 CFR part 73, appendix B, section VI, dated August 20, 2020. Surry Power Station, Unit Nos. 1 and 2—temporary exemption from certain requirements of 10 CFR part 73, appendix B, ‘‘General Criteria for Security Personnel,’’ section VI (EPID L–2020–LLE–0137 [COVID– 19]), dated September 16, 2020. non-public, withheld pursuant to 10 CFR 2.390. ML20241A000. Susquehanna Steam Electric Station, Units 1 and 2 Docket No. 50–387 and 50–388 Susquehanna Steam Electric Station, Units 1 and 2—request for exemption from 10 CFR part 73, appendix B, section VI, during the COVID–19 PHE, dated August 18, 2020. Susquehanna Steam Electric Station, Units 1 and 2—exemption request from certain requirements of 10 CFR part 73, appendix B, ‘‘General Criteria for Security Personnel’’ (EPID L–2020–LLE–0094 [COVID– 19]), dated September 22, 2020. Dated: October 13, 2020. For the Nuclear Regulatory Commission. James G. Danna, Chief, Plant Licensing Branch I, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation. [FR Doc. 2020–22970 Filed 10–15–20; 8:45 am] BILLING CODE 7590–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–90141; File No. SR–LTSE– 2020–19] Self-Regulatory Organizations; LongTerm Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Continue Suspending the Application of Order Price Collars in Rule 11.190(f)(1) Until December 8, 2020 jbell on DSKJLSW7X2PROD with NOTICES October 8, 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 October 7, 2020, Long-Term Stock Exchange, 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. VerDate Sep<11>2014 18:59 Oct 15, 2020 Jkt 253001 Inc. (‘‘LTSE’’ or 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 self-regulatory organization. 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 LTSE proposes to continue suspending until December 8, 2020, the provisions of Rule 11.190(f)(1) pending further systems development work. The text of the proposed rule change is available at the Exchange’s website at https://longtermstockexchange.com/, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement on the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 non-public, withheld pursuant to 10 CFR 2.390. ML20232C272. 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 self-regulatory organization 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 on the Purpose of, and the Statutory Basis for, the Proposed Rule Change 3 1. Purpose LTSE Rule 11.190(f)(1) prevents an incoming order or order resting on the Order Book, including those marked ISO, from executing at a price outside the Order Collar price range (i.e., prevents buy orders from trading at prices above the collar and prevents sell orders from trading at prices below the collar). The Order Collar price range is calculated using the numerical guidelines for clearly erroneous executions (‘‘CEE’’).4 Under Rule 11.190(f)(1), executions are permitted at 3 Unless otherwise defined, capitalized terms are used herein as defined in the LTSE Rulebook. 4 See LTSE Rule 11.270(f)(1)(D). E:\FR\FM\16OCN1.SGM 16OCN1 Federal Register / Vol. 85, No. 201 / Friday, October 16, 2020 / Notices prices within the Order Collar price range, inclusive of the boundaries. Thus, Rule 11.190(f)(1) seeks to prevent an execution that would otherwise be handled under the CEE procedures. The Exchange became operational on August 28, 2020.5 However, the automated processes to set the Order Collar price range pursuant to Rule 11.190(f)(1) were not yet fully operational at that time, and the Exchange temporarily suspended Rule 11.190(f)(1) until October 8, 2020.6 It is anticipated that the automated processes will still not be fully operational on October 8, 2020. Therefore, to ensure the Exchange operates in conformity with its Rule Book, the Exchange proposes to continue suspending Rule 11.190(f)(1) until December 8, 2020, pending further systems development work. The Exchange will continue to work diligently to finalize the implementation of the Order Collar price range as described in Rule 11.190(f)(1). The Exchange previously issued a Regulatory Information Circular alerting its Members of the prior delay until October 8, 2020,7 and will promptly issue a new Regulatory Information Circular regarding the continued suspension of Rule 11.190(f)(1). jbell on DSKJLSW7X2PROD with NOTICES 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,8 in general, and furthers the objectives of Section 6(b)(5) of the Act,9 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system 5 See LTSE Production Securities Phase-In Set for Friday, August 28, LTSE (August 24, 2010), available at https://assets.ctfassets.net/ cchj2z2dcfyd/4Ul3ygPsrihSz4lpQnBThu/ 56a54c087891a5aa20152398bdb51cea/MA-2020022__Reminder_Production_Securities_Launching_ August_28_-_Google_Docs.pdf. 6 See Securities Exchange Act Release No. 89766 (September 3, 2020), 85 FR 55872 (September 10, 2020) (File No. SR–LTSE–2020–15). LTSE previously suspended Rule 11.190(f)(1) until September 8, 2020. See Securities Exchange Act Release No. 89710. (August 28, 2020), 85 FR 55052 (September 3, 2020) (File No. SR–LTSE–2020–14). 7 See Notice of Rule Filing to Continue Suspending the Application of Rule 11.190(f)(1) Until October 8, 2020, LTSE (September 8, 2020), available at https://assets.ctfassets.net/ cchj2z2dcfyd/m7BwE3CzkQ0CdiJFe6VNq/ 0dd30317270d951116253a4d301036cf/RIC-202008_.pdf. 8 15 U.S.C. 78f. 9 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 18:59 Oct 15, 2020 Jkt 253001 and, in general, to protect investors and the public interest. The Order Collar provisions of Rule 11.190(f)(1) are a prophylactic measure to prevent trade executions outside of certain price bands. The Exchange has in effect other provisions to address trade executions at prices outside of these price bands, such as Rule 11.270 (Clearly Erroneous Executions). Additionally, Rule 11.281 (Limit-Up Limit-Down) prevents trades in NMS Stocks from occurring outside specified price bands.10 The Exchange further notes that other national securities exchanges operate without order price collars during their regular, continuous market trading sessions.11 B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change is not designed to address any competitive issue, but rather would provide the public and market participants with clarity and certainty regarding the operations of the Exchange. Additionally, the proposed rule change would not be an inappropriate burden on intramarket competition as it would be applied equally to all Members. It also is not a burden on intermarket competition as other exchange similarly operate without order price collars. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the 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 10 Rule 11.281 was adopted under the LULD Plan, see Securities Exchange Act Release No. 85623 (April 11, 2019), 84 FR 16086 (April 17, 2019), and is designed to prevent trades in NMS Stocks from occurring outside specified price bands, which are set at a percentage level above and below the average reference price of a security over the preceding five-minute period. 11 See, e.g., MEMX Rulebook (8.17.20), available at https://info.memxtrading.com/wp-content/ uploads/2020/08/MEMX-Rulebook-8.17.20.pdf; Rulebook—The Nasdaq Stock Market, available at https://listingcenter.nasdaq.com/rulebook/nasdaq/ rules (last accessed September 3, 2020). PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 65883 as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 12 and Rule 19b– 4(f)(6) thereunder.13 A proposed rule change filed pursuant to Rule 19b–4(f)(6) under the Act 14 normally does not become operative for 30 days after the date of its filing. However, Rule 19b–4(f)(6)(iii) 15 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 proposed rule change may become operative immediately. According to the Exchange, waiver of the 30-day operative delay will allow the suspension to remain in effect while the Exchange continues to pursue the necessary systems development work. The Exchange notes that operations of the Exchange will not change and Members are aware 16 and will continue to be aware that the Order Collar functionality is currently not being deployed. The Exchange believes that the proposed rule change does not significantly affect the protection of investors or the public interest or impose a significant burden on competition because it is designed to continue the suspension of a prophylactic rule and that the proposed rule change does not impose any burden on Members or market participants. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest, as doing so will ensure that the rule change becomes operative before the date that the existing temporary suspension of Rule 11.190(f)(1) expires. Accordingly, the Commission hereby waives the operative delay and designates the proposed rule change operative upon filing.17 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may 12 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 Commission has waived the five business day notification requirement for this proposed rule change. 14 17 CFR 240.19b–4(f)(6). 15 17 CFR 240.19b–4(f)(6)(iii). 16 See supra note 6. 17 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). 13 17 E:\FR\FM\16OCN1.SGM 16OCN1 65884 Federal Register / Vol. 85, No. 201 / Friday, October 16, 2020 / Notices 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: jbell on DSKJLSW7X2PROD 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– LTSE–2020–19 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–LTSE–2020–19. 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 VerDate Sep<11>2014 18:59 Oct 15, 2020 Jkt 253001 submit only information that you wish to make available publicly. All submissions should refer to File Number SR–LTSE–2020–19 and should be submitted on or before November 6, 2020. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–22734 Filed 10–15–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–90142; File No. SR– CboeEDGX–2020–046] Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule October 8, 2020. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on October 1, 2020, Cboe EDGX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Cboe EDGX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) is filing with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change to amend the fee schedule. 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. 18 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its fee schedule applicable to its equities trading platform (‘‘EDGX Equities’’), effective October 1, 2020. The Exchange first notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive or incentives to be insufficient. More specifically, the Exchange is only one of 16 registered equities exchanges, as well as a number of alternative trading systems and other off-exchange venues that do not have similar self-regulatory responsibilities under the Exchange Act, to which market participants may direct their order flow. Based on publicly available information,3 no single registered equities exchange has more than 19% of the market share. Thus, in such a low-concentrated and highly competitive market, no single equities exchange possesses significant pricing power in the execution of order flow. The Exchange in particular operates a ‘‘Maker-Taker’’ model whereby it pays credits to members that provide liquidity and assesses fees to those that remove liquidity. The Exchange’s fee schedule sets forth the standard rebates and rates applied per share for orders that provide and remove liquidity, respectively. Currently, for orders priced at or above $1.00, the Exchange provides a standard rebate of $0.0017 per share for orders that add liquidity and assesses a fee of $0.0027 per share for orders that remove liquidity. For orders priced below $1.00, the Exchange a standard rebate of $0.00003 [sic] per 3 See Cboe Global Markets, U.S. Equities Market Volume Summary, Month-to-Date (September 28, 2020), available at https://markets.cboe.com/us/ equities/market_statistics/. E:\FR\FM\16OCN1.SGM 16OCN1

Agencies

[Federal Register Volume 85, Number 201 (Friday, October 16, 2020)]
[Notices]
[Pages 65882-65884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22734]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90141; File No. SR-LTSE-2020-19]


Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Continue Suspending the Application of Order Price Collars in Rule 
11.190(f)(1) Until December 8, 2020

October 8, 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 October 7, 2020, Long-Term Stock Exchange, Inc. (``LTSE'' or 
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 self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    LTSE proposes to continue suspending until December 8, 2020, the 
provisions of Rule 11.190(f)(1) pending further systems development 
work.
    The text of the proposed rule change is available at the Exchange's 
website at https://longtermstockexchange.com/, at the principal office 
of the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement on the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
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 self-regulatory organization 
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 on the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change \3\
---------------------------------------------------------------------------

    \3\ Unless otherwise defined, capitalized terms are used herein 
as defined in the LTSE Rulebook.
---------------------------------------------------------------------------

1. Purpose
    LTSE Rule 11.190(f)(1) prevents an incoming order or order resting 
on the Order Book, including those marked ISO, from executing at a 
price outside the Order Collar price range (i.e., prevents buy orders 
from trading at prices above the collar and prevents sell orders from 
trading at prices below the collar). The Order Collar price range is 
calculated using the numerical guidelines for clearly erroneous 
executions (``CEE'').\4\ Under Rule 11.190(f)(1), executions are 
permitted at

[[Page 65883]]

prices within the Order Collar price range, inclusive of the 
boundaries. Thus, Rule 11.190(f)(1) seeks to prevent an execution that 
would otherwise be handled under the CEE procedures.
---------------------------------------------------------------------------

    \4\ See LTSE Rule 11.270(f)(1)(D).
---------------------------------------------------------------------------

    The Exchange became operational on August 28, 2020.\5\ However, the 
automated processes to set the Order Collar price range pursuant to 
Rule 11.190(f)(1) were not yet fully operational at that time, and the 
Exchange temporarily suspended Rule 11.190(f)(1) until October 8, 
2020.\6\ It is anticipated that the automated processes will still not 
be fully operational on October 8, 2020. Therefore, to ensure the 
Exchange operates in conformity with its Rule Book, the Exchange 
proposes to continue suspending Rule 11.190(f)(1) until December 8, 
2020, pending further systems development work. The Exchange will 
continue to work diligently to finalize the implementation of the Order 
Collar price range as described in Rule 11.190(f)(1). The Exchange 
previously issued a Regulatory Information Circular alerting its 
Members of the prior delay until October 8, 2020,\7\ and will promptly 
issue a new Regulatory Information Circular regarding the continued 
suspension of Rule 11.190(f)(1).
---------------------------------------------------------------------------

    \5\ See LTSE Production Securities Phase-In Set for Friday, 
August 28, LTSE (August 24, 2010), available at https://assets.ctfassets.net/cchj2z2dcfyd/4Ul3ygPsrihSz4lpQnBThu/56a54c087891a5aa20152398bdb51cea/MA-2020-022__Reminder_Production_Securities_Launching_August_28_-_Google_Docs.pdf.
    \6\ See Securities Exchange Act Release No. 89766 (September 3, 
2020), 85 FR 55872 (September 10, 2020) (File No. SR-LTSE-2020-15). 
LTSE previously suspended Rule 11.190(f)(1) until September 8, 2020. 
See Securities Exchange Act Release No. 89710. (August 28, 2020), 85 
FR 55052 (September 3, 2020) (File No. SR-LTSE-2020-14).
    \7\ See Notice of Rule Filing to Continue Suspending the 
Application of Rule 11.190(f)(1) Until October 8, 2020, LTSE 
(September 8, 2020), available at https://assets.ctfassets.net/cchj2z2dcfyd/m7BwE3CzkQ0CdiJFe6VNq/0dd30317270d951116253a4d301036cf/RIC-2020-08_.pdf.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\8\ in general, and 
furthers the objectives of Section 6(b)(5) of the Act,\9\ in 
particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, promote just and equitable principles 
of trade, to foster cooperation and coordination with persons engaged 
in 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Order Collar provisions of Rule 11.190(f)(1) are a prophylactic 
measure to prevent trade executions outside of certain price bands. The 
Exchange has in effect other provisions to address trade executions at 
prices outside of these price bands, such as Rule 11.270 (Clearly 
Erroneous Executions). Additionally, Rule 11.281 (Limit-Up Limit-Down) 
prevents trades in NMS Stocks from occurring outside specified price 
bands.\10\ The Exchange further notes that other national securities 
exchanges operate without order price collars during their regular, 
continuous market trading sessions.\11\
---------------------------------------------------------------------------

    \10\ Rule 11.281 was adopted under the LULD Plan, see Securities 
Exchange Act Release No. 85623 (April 11, 2019), 84 FR 16086 (April 
17, 2019), and is designed to prevent trades in NMS Stocks from 
occurring outside specified price bands, which are set at a 
percentage level above and below the average reference price of a 
security over the preceding five-minute period.
    \11\ See, e.g., MEMX Rulebook (8.17.20), available at https://info.memxtrading.com/wp-content/uploads/2020/08/MEMX-Rulebook-8.17.20.pdf; Rulebook--The Nasdaq Stock Market, available at https://listingcenter.nasdaq.com/rulebook/nasdaq/rules (last accessed 
September 3, 2020).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The proposed 
change is not designed to address any competitive issue, but rather 
would provide the public and market participants with clarity and 
certainty regarding the operations of the Exchange. Additionally, the 
proposed rule change would not be an inappropriate burden on 
intramarket competition as it would be applied equally to all Members. 
It also is not a burden on intermarket competition as other exchange 
similarly operate without order price collars.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the 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 \12\ and Rule 19b-
4(f)(6) thereunder.\13\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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 Commission has waived the five business day notification 
requirement for this proposed rule change.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \14\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \15\ 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 proposed rule change may become operative immediately. According to 
the Exchange, waiver of the 30-day operative delay will allow the 
suspension to remain in effect while the Exchange continues to pursue 
the necessary systems development work. The Exchange notes that 
operations of the Exchange will not change and Members are aware \16\ 
and will continue to be aware that the Order Collar functionality is 
currently not being deployed. The Exchange believes that the proposed 
rule change does not significantly affect the protection of investors 
or the public interest or impose a significant burden on competition 
because it is designed to continue the suspension of a prophylactic 
rule and that the proposed rule change does not impose any burden on 
Members or market participants. The Commission believes that waiving 
the 30-day operative delay is consistent with the protection of 
investors and the public interest, as doing so will ensure that the 
rule change becomes operative before the date that the existing 
temporary suspension of Rule 11.190(f)(1) expires. Accordingly, the 
Commission hereby waives the operative delay and designates the 
proposed rule change operative upon filing.\17\
---------------------------------------------------------------------------

    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
    \16\ See supra note 6.
    \17\ 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).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may

[[Page 65884]]

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-LTSE-2020-19 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-LTSE-2020-19. 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-LTSE-2020-19 and should be submitted on 
or before November 6, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-22734 Filed 10-15-20; 8:45 am]
BILLING CODE 8011-01-P
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