Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Related to the Market-Wide Circuit Breaker in Rule 11.16 and Amend Rule 11.16(b)(2) Concerning the Resumption of Trading Following a Level 3 Market-Wide Circuit Breaker Halt, 66373-66376 [2020-23011]
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Federal Register / Vol. 85, No. 202 / Monday, October 19, 2020 / Notices
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–NYSE–2020–81 and should
be submitted on or before November 9,
2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.25
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–23013 Filed 10–16–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90159; File No. SR–MEMX–
2020–12]
Self-Regulatory Organizations; MEMX
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Extend the Pilot Related to
the Market-Wide Circuit Breaker in
Rule 11.16 and Amend Rule 11.16(b)(2)
Concerning the Resumption of Trading
Following a Level 3 Market-Wide
Circuit Breaker Halt
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October 13, 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
9, 2020, MEMX LLC (‘‘MEMX’’ 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 Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing with the
Commission a proposed rule change to:
(i) Extend the pilot related to the
market-wide circuit breaker in Rule
11.16 and (ii) amend Rule 11.16(b)(2)
concerning the resumption of trading
following a Level 3 market-wide circuit
breaker halt. The text of the proposed
rule change is provided in Exhibit 5.
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
Extend the Market-Wide Circuit Breaker
Pilot
The Exchange proposes to extend the
effectiveness of the Exchange’s current
rule applicable to market-wide circuit
breakers (‘‘MWCB’’) to the close of
business on October 18, 2021. Portions
of Rule 11.16, explained in further
detail below, are currently operating as
a pilot program which is currently set to
expire at the close of business on
October 18, 2020.5
Rule 11.16 provides a methodology
for determining when to halt trading in
all stocks due to extraordinary market
volatility (i.e., market-wide circuit
breakers). The MWCB mechanism
adopted by other national securities
exchanges was originally approved by
the Commission to operate on a pilot
basis,6 the term of which was to
coincide with the pilot period for the
Plan to Address Extraordinary Market
4 17
CFR 240.19b–4.
Exchange Rule 11.16.
6 See, e.g., Securities Exchange Act Release No.
67090 (May 31, 2012), 77 FR 33531 (June 6, 2012)
(SR–NYSE–2011–48).
25 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
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5 See
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66373
Volatility Pursuant to Rule 608 of
Regulation NMS (the ‘‘LULD Plan’’),7
including any extensions to the pilot
period for the LULD Plan.8 In April
2019, the Commission approved an
amendment to the LULD Plan for it to
operate on a permanent, rather than
pilot, basis.9 In light of the proposal to
make the LULD Plan permanent, all U.S.
equity exchanges and the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) amended their rules to untie
the pilot’s effectiveness from that of the
LULD Plan and to extend the pilot’s
effectiveness to the close of business on
October 18, 2019.10 The pilot’s
effectiveness was subsequently
extended for an additional year to the
close of business on October 18, 2020.11
On May 4, 2020, the Commission
approved MEMX’s Form 1 Application
to register as a national securities
exchange with rules including, on a
pilot basis expiring on October 18, 2020,
certain portions of MEMX Rule 11.16.12
The Exchange now proposes to amend
Rule 11.16 to extend the pilot to the
close of business on October 18, 2021.
This filing does not propose any
substantive or additional changes to
Rule 11.16 other than the proposed
change to Rule 11.16(b)(2) concerning
the resumption of trading following a
Level 3 market-wide circuit breaker halt
as further described below.
The market-wide circuit breaker
under Rule 11.16 provides an important,
automatic mechanism that is invoked to
promote stability and investor
confidence during a period of
significant stress when securities
markets experience extreme broad-based
declines. All U.S. equity exchanges and
FINRA adopted uniform rules on a pilot
basis relating to market-wide circuit
breakers in 2012, which are designed to
slow the effects of extreme price
movement through coordinated trading
halts across securities markets when
7 See Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498 (June 6, 2012). The
LULD Plan provides a mechanism to address
extraordinary market volatility in individual
securities.
8 See, e.g., Securities Exchange Act Release Nos.
67090 (May 31, 2012), 77 FR 33531 (June 6, 2012)
(SR–NYSE–2011–48) (Approval Order); and 68784
(January 31, 2013), 78 FR 8662 (February 6, 2013)
(SR–NYSE–2013–10) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
Delaying the Operative Date of a Rule Change to
NYSE Rule 80B).
9 See Securities Exchange Act Release No. 85623
(April 11, 2019), 84 FR 16086 (April 17, 2019).
10 See, e.g., Securities Exchange Act Release No.
85560 (April 9, 2019), 84 FR 15247 (April 15, 2019)
(SR–NYSE–2019–19).
11 See, e.g., Securities Exchange Act Release No.
87016 (September 19, 2019), 84 FR 50502
(September 25, 2019) (SR–NYSE–2019–51).
12 See Securities Exchange Release No. 88806
(May 4, 2020), 85 FR 27451 (May 8, 2020).
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severe price declines reach levels that
may exhaust market liquidity.13 Marketwide circuit breakers provide for trading
halts in all equities and options markets
during a severe market decline as
measured by a single-day decline in the
S&P 500 Index.
Pursuant to Rule 11.16, a market-wide
trading halt will be triggered if the S&P
500 Index declines in price by specified
percentages from the prior day’s closing
price of that index. Currently, the
triggers are set at three circuit breaker
thresholds: 7% (Level 1), 13% (Level 2),
and 20% (Level 3). A market decline
that triggers a Level 1 or Level 2 halt
after 9:30 a.m. ET and before 3:25 p.m.
ET would halt market-wide trading for
15 minutes, while a similar market
decline at or after 3:25 p.m. ET would
not halt market-wide trading. Under
current Rule 11.16, a market decline
that triggers a Level 3 halt, at any time
during the trading day, would halt
market-wide trading until the primary
listing market opens the next trading
day.14
Since the MWCB pilot was last
extended in October 2019, the MWCB
mechanism has proven itself to be an
effective tool for protecting markets
through turbulent times. In the Spring of
2020, at the outset of the worldwide
COVID–19 pandemic, U.S. equities
markets experienced four MWCB Level
1 halts, on March 9, 12, 16, and 18,
2020. In each instance, the markets
halted as intended upon a 7% drop in
the S&P 500 Index, and resumed as
intended 15 minutes later.
In response to these events, the
previously-convened MWCB Taskforce
(‘‘Taskforce’’) reviewed the March 2020
halts and considered whether any
immediate changes to the MWCB
mechanism should be made. The
Taskforce, consisting of representatives
from equities exchanges, futures
exchanges, FINRA, broker-dealers, and
other market participants, had been
assembled in early 2020 to consider
more generally potential changes to the
MWCB mechanism. The Taskforce held
ten meetings in the Spring and Summer
of 2020 that were attended by
Commission staff to consider, among
other things: (1) Whether to retain the
13 See Securities Exchange Act Release No. 67090
(May 31, 2012), 77 FR 33531 (June 6, 2012) (SR–
BATS–2011–038; SR–BYX–2011–025; SR–BX–
2011–068; SR–CBOE–2011–087; SR–C2–2011–024;
SR–CHX–2011–30; SR–EDGA–2011–31; SR–EDGX–
2011–30; SR–FINRA–2011–054; SR–ISE–2011–61;
SR–NASDAQ–2011–131; SR–NSX–2011–11; SR–
NYSE–2011–48; SR–NYSEAmex–2011–73; SR–
NYSEArca–2011–68; SR–Phlx–2011–129) (‘‘MWCB
Approval Order’’).
14 As described in further detail below, the
Exchange proposes to amend this aspect of Rule
11.16 to conform to the rules of other exchanges.
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S&P 500 Index as the standard for
measuring market declines; (2) whether
halts that occur shortly after the 9:30
a.m. market open cause more harm than
good; and (3) what additional testing of
the MWCB mechanism should be done.
After considering data and anecdotal
reports of market participants’
experiences during the March 2020
MWCB events, the Taskforce did not
recommend immediate changes be made
to the use of the S&P 500 Index as the
reference price against which market
declines are measured, or to the current
MWCB mechanism which permits halts
even shortly after the 9:30 a.m. market
open. The Taskforce recommended
creating a process for a backup reference
price in the event that the S&P 500
Index becomes unavailable, and
enhancing functional MWCB testing.
The Taskforce also asked CME to
consider modifying its rules to enter
into a limit-down state in the futures
pre-market after a 7% decline instead of
5%.
On September 17, 2020, the Director
of the Division of Trading and Markets
requested that the equities exchanges
and FINRA prepare a more complete
study of the design and operation of the
MWCB mechanism and the LULD Plan
during the period of volatility in the
Spring of 2020. Based on the results of
that study, the Exchange expects to
work with the Commission, FINRA, the
other exchanges, and market
participants to determine if any
additional changes to the MWCB
mechanism should be made, including
consideration of rules and procedures
for the periodic testing of the MWCB
mechanism with industry participants.
In addition to the work of the
Taskforce, the equities exchanges also
moved forward in 2019 and 2020 with
a plan to normalize their Day 2 opening
procedures after a Level 3 MWCB halt,
such that all exchanges would reopen
on Day 2 with a standard opening
auction. Other exchanges filed rule
changes to that effect in March 2020,15
and successfully tested the
implementation of those changes on
September 12, 2020. The Exchange
proposes to adopt these changes as part
of this proposal, as further described
below.
15 See, e.g., Securities Exchange Act Release Nos.
88342 (March 6, 2020), 85 FR 14513 (March 12,
2020) (SR–NASDAQ–2020–003); 88420 (March 18,
2020), 85 FR 16696 (March 24, 2020) (SR–
CboeEDGX–2020–012); 88402 (March 17, 2020), 85
FR 16436 (March 23, 2020) (SR–NYSE–2020–20).
PO 00000
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Resumption of Trading Following a
Level 3 Market-Wide Circuit Breaker
Halt
Today, in the event that a Level 3
market decline occurs, the Exchange
would halt trading for the remainder of
the trading day, and would not resume
until the primary listing market opens
the next trading day, which time may
currently vary depending on the
primary listing market. For example, if
the primary listing market is the New
York Stock Exchange (‘‘NYSE’’), NYSE
would resume trading in its listed
securities at 9:30 a.m. ET on the next
trading day, and the Exchange would
not be able to resume trading during the
Exchange’s Pre-Market Session.16
Alternatively, if the primary listing
market is the Nasdaq Stock Market LLC
(‘‘Nasdaq’’), Nasdaq would resume
trading in its listed securities at 4:00
a.m. ET on the next trading day, and
therefore, the Exchange would resume
trading at the commencement of the PreMarket Session.
Earlier this year, other exchanges
adopted rule changes to standardize
their Day 2 opening procedures
following a Level 3 MWCB halt.17 The
Exchange proposes to adopt the
standardized approach for resuming
trading in all NMS Stocks following a
Level 3 halt. The proposed approach
would allow for the opening of all
securities the next trading day after a
Level 3 halt as a regular trading day, and
is designed to ensure that Level 3
MWCB events are handled in a more
consistent manner that is transparent for
market participants.18 As proposed, a
Level 3 halt would end at the end of the
trading day on which it is declared. This
proposed change would allow for nextday trading to resume in all NMS Stocks
no differently from any other trading
day. In other words, an exchange could
resume trading in any security when it
first begins trading under its rules and
would not need to wait for the primary
listing market to reopen trading in a
security before it could start trading
such security. Accordingly, under the
proposal, the Exchange could begin
trading all securities at the beginning of
the Exchange’s Pre-Market Session.
To effect this change, the Exchange
proposes to delete the language in Rule
11.16(b)(2) requiring the Exchange to
wait until the primary listing exchange
opens the next trading day following a
Level 3 market decline, and specify that
16 See
Exchange Rule 1.5(x).
supra note 15.
18 Of note, the U.S. futures markets, which have
similar rules for coordinated MWCB halts, normally
begin their ‘‘next day’’ trading session at 6:00 p.m.
ET (for CFE and CME) or at 8:00 p.m. ET (for ICE).
17 See
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the Exchange will halt trading for the
remainder of the trading day.19 The
proposed rule change would therefore
allow each exchange to resume trading
in all securities the next trading day
following a Level 3 halt at whatever
time such exchange normally begins
trading under its rules, which for the
Exchange would be at the beginning of
the Pre-Market Session at 7:00 a.m. ET
under its current rules. The Exchange
notes that the primary listing exchanges
have already made and tested changes
to facilitate this change by sending
resume messages to the applicable
securities information processor (‘‘SIP’’)
to lift the Level 3 trading halt message
in all securities. The resumption
messages will be disseminated after the
SIP has started on the next trading day
and before the start of the earliest premarket trading session of all exchanges.
If a security is separately subject to a
regulatory halt that has not ended, the
primary listing exchange would replace
the Level 3 halt message with the
applicable regulatory halt message.
Having a consistent approach for all
securities will make the opening process
the day after a Level 3 halt more
uniform and reduce complexity, which
the Exchange believes is important after
a significant market event. Based on
industry feedback, the Exchange
believes that opening in the normal
course in all equity securities will be
beneficial to the marketplace. By
allowing trading to resume after a Level
3 halt in all securities no differently
from any normal trading day under the
respective rules of each exchange, the
proposed rule change would provide
greater certainty to the marketplace by
ensuring a familiar experience for all
market participants that trade NMS
Stocks and balances out potential
concerns around volatility. While the
Exchange recognizes that the impact of
this proposal is to permit all securities
to be traded in the Pre-Market Session,
which does not have certain price
protections for volatility such as LULD
Bands or MWCB protections, the
Exchange nonetheless believes that this
outcome is outweighed by the benefits
provided by opening in the Pre-Market
Session in a manner that is more
familiar to the marketplace. Moreover,
allowing the resumption of trading to
occur on the Exchange at the beginning
of the Pre-Market Session in all NMS
Stocks will allow for price formation to
occur earlier in the trading day, which
in turn allows market participants to
react to news that has developed. As
19 Presently, the Exchange’s equities trading day
ends at 5:00 p.m. ET. See Exchange Rule 1.5(w).
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such, trading at the beginning of regular
hours may be more orderly.
2. Statutory Basis
Extend the Market-Wide Circuit Breaker
Pilot
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,20 in general, and furthers the
objectives of Section 6(b)(5) of the Act,21
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest. The
market-wide circuit breaker mechanism
under Rule 11.16 is an important,
automatic mechanism that is invoked to
promote stability and investor
confidence during a period of
significant stress when securities
markets experience extreme broad-based
declines. Extending the market-wide
circuit breaker pilot for an additional
year would ensure the continued,
uninterrupted operation of a consistent
mechanism to halt trading across the
U.S. markets while the Exchange and
the other SROs study the design and
operation of the MWCB mechanism and
the LULD Plan during the period of
volatility in the Spring of 2020. Based
on the results of that study, the
Exchange expects to work with the
Commission, FINRA, the other
exchanges, and market participants to
determine if any additional changes to
the MWCB mechanism should be made,
including consideration of rules and
procedures for the periodic testing of
the MWCB mechanism with industry
participants.
The Exchange also believes that the
proposed rule change promotes just and
equitable principles of trade in that it
promotes transparency and uniformity
across markets concerning when and
how to halt trading in all stocks as a
result of extraordinary market volatility.
Based on the foregoing, the Exchange
believes the benefits to market
participants from the MWCB under Rule
11.16 should continue on a pilot basis
because the MWCB will promote fair
and orderly markets, and protect
investors and the public interest.
Resumption of Trading Following a
Level 3 Market-Wide Circuit Breaker
Halt
The Exchange believes that the
proposed change to Rule 11.16(b)(2)
promotes just and equitable principles
of trade in that it promotes transparency
20 15
21 15
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U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00076
Fmt 4703
and uniformity across markets
concerning when and how to halt
trading in all stocks as a result of
extraordinary market volatility, and how
the markets will resume trading
following a Level 3 market decline. As
described above, the Exchange is
seeking to adopt a standardized
approach related to resuming trading in
NMS Stocks after a Level 3 MWCB halt;
this approach has already been adopted
and tested by other national securities
exchanges and FINRA.22 In this regard,
the Exchange believes that the proposal
to resume trading in all securities
following a Level 3 halt in the same
manner that securities would open
trading on a regular trading day (i.e.,
with continuous trading on the
Exchange at the beginning of the PreMarket Session at 7 a.m. ET) will benefit
investors, the national market system,
Exchange members, and the Exchange
market by promoting a fair and orderly
market and reducing confusion during a
significant cross-market event. By
allowing trading to resume after a Level
3 halt in all securities no differently
from any normal trading day under the
respective rules of each exchange, the
proposed rule changes would provide
greater certainty to the marketplace by
ensuring a familiar experience for all
market participants that trade NMS
Stocks. Based on the foregoing, the
Exchange believes the benefits to market
participants from the MWCB under Rule
11.16 with the proposed standardized
process for resuming trading in all
securities following a Level 3 halt will
promote fair and orderly markets, and
protect investors and the public interest.
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 not
necessary or appropriate in furtherance
of the purposes of the Act because the
proposal would ensure the continued,
uninterrupted operation of a consistent
mechanism to halt trading across the
U.S. markets while the Exchange and
the other SROs study the design and
operation of the MWCB mechanism and
the LULD Plan during the period of
volatility in the Spring of 2020.
Further, the Exchange understands
that FINRA and other national securities
exchanges will file proposals to extend
their rules regarding the market-wide
circuit breaker pilot. Thus, the proposed
rule change will help to ensure
consistency across market centers
without implicating any competitive
issues.
22 See
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The Exchange also does not believe
that the proposed change to Rule
11.16(b)(2) will impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act because the
proposed Level 3 rule change described
above would standardize the opening
process for all securities on the
Exchange, which would make the
opening process the day after a Level 3
halt more uniform and reduce
complexity. Further, the proposal is
based on filings of other markets that
have already adopted the proposed
Level 3 rule change.23
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
The Exchange has designated this rule
filing as non-controversial under
Section 19(b)(3)(A) 24 of the Act and
Rule 19b–4(f)(6) 25 thereunder. Because
the proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
for 30 days from the date on which it
was filed, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act and Rule 19b–
4(f)(6) thereunder.26
A proposed rule change filed under
Rule 19b–4(f)(6) 27 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii),28 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
upon filing. Extending the pilot for an
additional year will allow the
uninterrupted operation of the existing
23 See
id.
U.S.C. 78s(b)(3)(A).
25 17 CFR 240.19b–4(f)(6).
26 In addition, Rule 19b–4(f)(6)(iii) requires the
Exchange 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
filing of the proposed rule change, or such shorter
time as designated by the Commission. The
Commission has waived this requirement.
27 Id.
28 17 CFR 240.19b–4(f)(6)(iii).
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24 15
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pilot while the Exchange, FINRA, and
the other exchanges conduct a study of
the MWCB mechanism in consultation
with market participants and determine
if any additional changes to the MWCB
mechanism should be made, including
consideration of rules and procedures
for the periodic testing of the MWCB
mechanism with industry participants.
With respect to the proposed change
relating to the resumption of trading
after a Level 3 halt, the Commission
notes that it approved a substantively
similar proposed rule change submitted
by Nasdaq, and waiver of the operative
delay will ensure consistency across the
market centers and the timely
implementation of the proposed rule
change. Therefore, the Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest. The Commission hereby
designates the proposed rule change to
be operative upon filing.29
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.
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–MEMX–2020–12 and
should be submitted on or before
November 9, 2020.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
J. Matthew DeLesDernier,
Assistant Secretary.
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–
MEMX–2020–12 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
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–MEMX–2020–12. This file
29 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
PO 00000
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[FR Doc. 2020–23011 Filed 10–16–20; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–90154; File No. SR–
NYSEAMER–2020–73]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Current
Pilot Program Related to Rule 7.10E
October 13, 2020.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on October
30 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\19OCN1.SGM
19OCN1
]]>Agencies
[Federal Register Volume 85, Number 202 (Monday, October 19, 2020)]
[Notices]
[Pages 66373-66376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23011]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90159; File No. SR-MEMX-2020-12]
Self-Regulatory Organizations; MEMX LLC; Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot
Related to the Market-Wide Circuit Breaker in Rule 11.16 and Amend Rule
11.16(b)(2) Concerning the Resumption of Trading Following a Level 3
Market-Wide Circuit Breaker Halt
October 13, 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 9, 2020, MEMX LLC (``MEMX'' 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 Exchange. The Exchange filed the proposal as
a ``non-controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing with the Commission a proposed rule change
to: (i) Extend the pilot related to the market-wide circuit breaker in
Rule 11.16 and (ii) amend Rule 11.16(b)(2) concerning the resumption of
trading following a Level 3 market-wide circuit breaker halt. The text
of the proposed rule change is provided in Exhibit 5.
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
Extend the Market-Wide Circuit Breaker Pilot
The Exchange proposes to extend the effectiveness of the Exchange's
current rule applicable to market-wide circuit breakers (``MWCB'') to
the close of business on October 18, 2021. Portions of Rule 11.16,
explained in further detail below, are currently operating as a pilot
program which is currently set to expire at the close of business on
October 18, 2020.\5\
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\5\ See Exchange Rule 11.16.
---------------------------------------------------------------------------
Rule 11.16 provides a methodology for determining when to halt
trading in all stocks due to extraordinary market volatility (i.e.,
market-wide circuit breakers). The MWCB mechanism adopted by other
national securities exchanges was originally approved by the Commission
to operate on a pilot basis,\6\ the term of which was to coincide with
the pilot period for the Plan to Address Extraordinary Market
Volatility Pursuant to Rule 608 of Regulation NMS (the ``LULD
Plan''),\7\ including any extensions to the pilot period for the LULD
Plan.\8\ In April 2019, the Commission approved an amendment to the
LULD Plan for it to operate on a permanent, rather than pilot,
basis.\9\ In light of the proposal to make the LULD Plan permanent, all
U.S. equity exchanges and the Financial Industry Regulatory Authority,
Inc. (``FINRA'') amended their rules to untie the pilot's effectiveness
from that of the LULD Plan and to extend the pilot's effectiveness to
the close of business on October 18, 2019.\10\ The pilot's
effectiveness was subsequently extended for an additional year to the
close of business on October 18, 2020.\11\ On May 4, 2020, the
Commission approved MEMX's Form 1 Application to register as a national
securities exchange with rules including, on a pilot basis expiring on
October 18, 2020, certain portions of MEMX Rule 11.16.\12\
---------------------------------------------------------------------------
\6\ See, e.g., Securities Exchange Act Release No. 67090 (May
31, 2012), 77 FR 33531 (June 6, 2012) (SR-NYSE-2011-48).
\7\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012). The LULD Plan provides a
mechanism to address extraordinary market volatility in individual
securities.
\8\ See, e.g., Securities Exchange Act Release Nos. 67090 (May
31, 2012), 77 FR 33531 (June 6, 2012) (SR-NYSE-2011-48) (Approval
Order); and 68784 (January 31, 2013), 78 FR 8662 (February 6, 2013)
(SR-NYSE-2013-10) (Notice of Filing and Immediate Effectiveness of
Proposed Rule Change Delaying the Operative Date of a Rule Change to
NYSE Rule 80B).
\9\ See Securities Exchange Act Release No. 85623 (April 11,
2019), 84 FR 16086 (April 17, 2019).
\10\ See, e.g., Securities Exchange Act Release No. 85560 (April
9, 2019), 84 FR 15247 (April 15, 2019) (SR-NYSE-2019-19).
\11\ See, e.g., Securities Exchange Act Release No. 87016
(September 19, 2019), 84 FR 50502 (September 25, 2019) (SR-NYSE-
2019-51).
\12\ See Securities Exchange Release No. 88806 (May 4, 2020), 85
FR 27451 (May 8, 2020).
---------------------------------------------------------------------------
The Exchange now proposes to amend Rule 11.16 to extend the pilot
to the close of business on October 18, 2021. This filing does not
propose any substantive or additional changes to Rule 11.16 other than
the proposed change to Rule 11.16(b)(2) concerning the resumption of
trading following a Level 3 market-wide circuit breaker halt as further
described below.
The market-wide circuit breaker under Rule 11.16 provides an
important, automatic mechanism that is invoked to promote stability and
investor confidence during a period of significant stress when
securities markets experience extreme broad-based declines. All U.S.
equity exchanges and FINRA adopted uniform rules on a pilot basis
relating to market-wide circuit breakers in 2012, which are designed to
slow the effects of extreme price movement through coordinated trading
halts across securities markets when
[[Page 66374]]
severe price declines reach levels that may exhaust market
liquidity.\13\ Market-wide circuit breakers provide for trading halts
in all equities and options markets during a severe market decline as
measured by a single-day decline in the S&P 500 Index.
---------------------------------------------------------------------------
\13\ See Securities Exchange Act Release No. 67090 (May 31,
2012), 77 FR 33531 (June 6, 2012) (SR-BATS-2011-038; SR-BYX-2011-
025; SR-BX-2011-068; SR-CBOE-2011-087; SR-C2-2011-024; SR-CHX-2011-
30; SR-EDGA-2011-31; SR-EDGX-2011-30; SR-FINRA-2011-054; SR-ISE-
2011-61; SR-NASDAQ-2011-131; SR-NSX-2011-11; SR-NYSE-2011-48; SR-
NYSEAmex-2011-73; SR-NYSEArca-2011-68; SR-Phlx-2011-129) (``MWCB
Approval Order'').
---------------------------------------------------------------------------
Pursuant to Rule 11.16, a market-wide trading halt will be
triggered if the S&P 500 Index declines in price by specified
percentages from the prior day's closing price of that index.
Currently, the triggers are set at three circuit breaker thresholds: 7%
(Level 1), 13% (Level 2), and 20% (Level 3). A market decline that
triggers a Level 1 or Level 2 halt after 9:30 a.m. ET and before 3:25
p.m. ET would halt market-wide trading for 15 minutes, while a similar
market decline at or after 3:25 p.m. ET would not halt market-wide
trading. Under current Rule 11.16, a market decline that triggers a
Level 3 halt, at any time during the trading day, would halt market-
wide trading until the primary listing market opens the next trading
day.\14\
---------------------------------------------------------------------------
\14\ As described in further detail below, the Exchange proposes
to amend this aspect of Rule 11.16 to conform to the rules of other
exchanges.
---------------------------------------------------------------------------
Since the MWCB pilot was last extended in October 2019, the MWCB
mechanism has proven itself to be an effective tool for protecting
markets through turbulent times. In the Spring of 2020, at the outset
of the worldwide COVID-19 pandemic, U.S. equities markets experienced
four MWCB Level 1 halts, on March 9, 12, 16, and 18, 2020. In each
instance, the markets halted as intended upon a 7% drop in the S&P 500
Index, and resumed as intended 15 minutes later.
In response to these events, the previously-convened MWCB Taskforce
(``Taskforce'') reviewed the March 2020 halts and considered whether
any immediate changes to the MWCB mechanism should be made. The
Taskforce, consisting of representatives from equities exchanges,
futures exchanges, FINRA, broker-dealers, and other market
participants, had been assembled in early 2020 to consider more
generally potential changes to the MWCB mechanism. The Taskforce held
ten meetings in the Spring and Summer of 2020 that were attended by
Commission staff to consider, among other things: (1) Whether to retain
the S&P 500 Index as the standard for measuring market declines; (2)
whether halts that occur shortly after the 9:30 a.m. market open cause
more harm than good; and (3) what additional testing of the MWCB
mechanism should be done.
After considering data and anecdotal reports of market
participants' experiences during the March 2020 MWCB events, the
Taskforce did not recommend immediate changes be made to the use of the
S&P 500 Index as the reference price against which market declines are
measured, or to the current MWCB mechanism which permits halts even
shortly after the 9:30 a.m. market open. The Taskforce recommended
creating a process for a backup reference price in the event that the
S&P 500 Index becomes unavailable, and enhancing functional MWCB
testing. The Taskforce also asked CME to consider modifying its rules
to enter into a limit-down state in the futures pre-market after a 7%
decline instead of 5%.
On September 17, 2020, the Director of the Division of Trading and
Markets requested that the equities exchanges and FINRA prepare a more
complete study of the design and operation of the MWCB mechanism and
the LULD Plan during the period of volatility in the Spring of 2020.
Based on the results of that study, the Exchange expects to work with
the Commission, FINRA, the other exchanges, and market participants to
determine if any additional changes to the MWCB mechanism should be
made, including consideration of rules and procedures for the periodic
testing of the MWCB mechanism with industry participants.
In addition to the work of the Taskforce, the equities exchanges
also moved forward in 2019 and 2020 with a plan to normalize their Day
2 opening procedures after a Level 3 MWCB halt, such that all exchanges
would reopen on Day 2 with a standard opening auction. Other exchanges
filed rule changes to that effect in March 2020,\15\ and successfully
tested the implementation of those changes on September 12, 2020. The
Exchange proposes to adopt these changes as part of this proposal, as
further described below.
---------------------------------------------------------------------------
\15\ See, e.g., Securities Exchange Act Release Nos. 88342
(March 6, 2020), 85 FR 14513 (March 12, 2020) (SR-NASDAQ-2020-003);
88420 (March 18, 2020), 85 FR 16696 (March 24, 2020) (SR-CboeEDGX-
2020-012); 88402 (March 17, 2020), 85 FR 16436 (March 23, 2020) (SR-
NYSE-2020-20).
---------------------------------------------------------------------------
Resumption of Trading Following a Level 3 Market-Wide Circuit Breaker
Halt
Today, in the event that a Level 3 market decline occurs, the
Exchange would halt trading for the remainder of the trading day, and
would not resume until the primary listing market opens the next
trading day, which time may currently vary depending on the primary
listing market. For example, if the primary listing market is the New
York Stock Exchange (``NYSE''), NYSE would resume trading in its listed
securities at 9:30 a.m. ET on the next trading day, and the Exchange
would not be able to resume trading during the Exchange's Pre-Market
Session.\16\ Alternatively, if the primary listing market is the Nasdaq
Stock Market LLC (``Nasdaq''), Nasdaq would resume trading in its
listed securities at 4:00 a.m. ET on the next trading day, and
therefore, the Exchange would resume trading at the commencement of the
Pre-Market Session.
---------------------------------------------------------------------------
\16\ See Exchange Rule 1.5(x).
---------------------------------------------------------------------------
Earlier this year, other exchanges adopted rule changes to
standardize their Day 2 opening procedures following a Level 3 MWCB
halt.\17\ The Exchange proposes to adopt the standardized approach for
resuming trading in all NMS Stocks following a Level 3 halt. The
proposed approach would allow for the opening of all securities the
next trading day after a Level 3 halt as a regular trading day, and is
designed to ensure that Level 3 MWCB events are handled in a more
consistent manner that is transparent for market participants.\18\ As
proposed, a Level 3 halt would end at the end of the trading day on
which it is declared. This proposed change would allow for next-day
trading to resume in all NMS Stocks no differently from any other
trading day. In other words, an exchange could resume trading in any
security when it first begins trading under its rules and would not
need to wait for the primary listing market to reopen trading in a
security before it could start trading such security. Accordingly,
under the proposal, the Exchange could begin trading all securities at
the beginning of the Exchange's Pre-Market Session.
---------------------------------------------------------------------------
\17\ See supra note 15.
\18\ Of note, the U.S. futures markets, which have similar rules
for coordinated MWCB halts, normally begin their ``next day''
trading session at 6:00 p.m. ET (for CFE and CME) or at 8:00 p.m. ET
(for ICE).
---------------------------------------------------------------------------
To effect this change, the Exchange proposes to delete the language
in Rule 11.16(b)(2) requiring the Exchange to wait until the primary
listing exchange opens the next trading day following a Level 3 market
decline, and specify that
[[Page 66375]]
the Exchange will halt trading for the remainder of the trading
day.\19\ The proposed rule change would therefore allow each exchange
to resume trading in all securities the next trading day following a
Level 3 halt at whatever time such exchange normally begins trading
under its rules, which for the Exchange would be at the beginning of
the Pre-Market Session at 7:00 a.m. ET under its current rules. The
Exchange notes that the primary listing exchanges have already made and
tested changes to facilitate this change by sending resume messages to
the applicable securities information processor (``SIP'') to lift the
Level 3 trading halt message in all securities. The resumption messages
will be disseminated after the SIP has started on the next trading day
and before the start of the earliest pre-market trading session of all
exchanges. If a security is separately subject to a regulatory halt
that has not ended, the primary listing exchange would replace the
Level 3 halt message with the applicable regulatory halt message.
---------------------------------------------------------------------------
\19\ Presently, the Exchange's equities trading day ends at 5:00
p.m. ET. See Exchange Rule 1.5(w).
---------------------------------------------------------------------------
Having a consistent approach for all securities will make the
opening process the day after a Level 3 halt more uniform and reduce
complexity, which the Exchange believes is important after a
significant market event. Based on industry feedback, the Exchange
believes that opening in the normal course in all equity securities
will be beneficial to the marketplace. By allowing trading to resume
after a Level 3 halt in all securities no differently from any normal
trading day under the respective rules of each exchange, the proposed
rule change would provide greater certainty to the marketplace by
ensuring a familiar experience for all market participants that trade
NMS Stocks and balances out potential concerns around volatility. While
the Exchange recognizes that the impact of this proposal is to permit
all securities to be traded in the Pre-Market Session, which does not
have certain price protections for volatility such as LULD Bands or
MWCB protections, the Exchange nonetheless believes that this outcome
is outweighed by the benefits provided by opening in the Pre-Market
Session in a manner that is more familiar to the marketplace. Moreover,
allowing the resumption of trading to occur on the Exchange at the
beginning of the Pre-Market Session in all NMS Stocks will allow for
price formation to occur earlier in the trading day, which in turn
allows market participants to react to news that has developed. As
such, trading at the beginning of regular hours may be more orderly.
2. Statutory Basis
Extend the Market-Wide Circuit Breaker Pilot
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\20\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\21\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest. The market-wide circuit breaker mechanism under Rule 11.16 is
an important, automatic mechanism that is invoked to promote stability
and investor confidence during a period of significant stress when
securities markets experience extreme broad-based declines. Extending
the market-wide circuit breaker pilot for an additional year would
ensure the continued, uninterrupted operation of a consistent mechanism
to halt trading across the U.S. markets while the Exchange and the
other SROs study the design and operation of the MWCB mechanism and the
LULD Plan during the period of volatility in the Spring of 2020. Based
on the results of that study, the Exchange expects to work with the
Commission, FINRA, the other exchanges, and market participants to
determine if any additional changes to the MWCB mechanism should be
made, including consideration of rules and procedures for the periodic
testing of the MWCB mechanism with industry participants.
---------------------------------------------------------------------------
\20\ 15 U.S.C. 78f(b).
\21\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange also believes that the proposed rule change promotes
just and equitable principles of trade in that it promotes transparency
and uniformity across markets concerning when and how to halt trading
in all stocks as a result of extraordinary market volatility. Based on
the foregoing, the Exchange believes the benefits to market
participants from the MWCB under Rule 11.16 should continue on a pilot
basis because the MWCB will promote fair and orderly markets, and
protect investors and the public interest.
Resumption of Trading Following a Level 3 Market-Wide Circuit Breaker
Halt
The Exchange believes that the proposed change to Rule 11.16(b)(2)
promotes just and equitable principles of trade in that it promotes
transparency and uniformity across markets concerning when and how to
halt trading in all stocks as a result of extraordinary market
volatility, and how the markets will resume trading following a Level 3
market decline. As described above, the Exchange is seeking to adopt a
standardized approach related to resuming trading in NMS Stocks after a
Level 3 MWCB halt; this approach has already been adopted and tested by
other national securities exchanges and FINRA.\22\ In this regard, the
Exchange believes that the proposal to resume trading in all securities
following a Level 3 halt in the same manner that securities would open
trading on a regular trading day (i.e., with continuous trading on the
Exchange at the beginning of the Pre-Market Session at 7 a.m. ET) will
benefit investors, the national market system, Exchange members, and
the Exchange market by promoting a fair and orderly market and reducing
confusion during a significant cross-market event. By allowing trading
to resume after a Level 3 halt in all securities no differently from
any normal trading day under the respective rules of each exchange, the
proposed rule changes would provide greater certainty to the
marketplace by ensuring a familiar experience for all market
participants that trade NMS Stocks. Based on the foregoing, the
Exchange believes the benefits to market participants from the MWCB
under Rule 11.16 with the proposed standardized process for resuming
trading in all securities following a Level 3 halt will promote fair
and orderly markets, and protect investors and the public interest.
---------------------------------------------------------------------------
\22\ See supra note 15.
---------------------------------------------------------------------------
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 not necessary or appropriate in
furtherance of the purposes of the Act because the proposal would
ensure the continued, uninterrupted operation of a consistent mechanism
to halt trading across the U.S. markets while the Exchange and the
other SROs study the design and operation of the MWCB mechanism and the
LULD Plan during the period of volatility in the Spring of 2020.
Further, the Exchange understands that FINRA and other national
securities exchanges will file proposals to extend their rules
regarding the market-wide circuit breaker pilot. Thus, the proposed
rule change will help to ensure consistency across market centers
without implicating any competitive issues.
[[Page 66376]]
The Exchange also does not believe that the proposed change to Rule
11.16(b)(2) will impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act because the
proposed Level 3 rule change described above would standardize the
opening process for all securities on the Exchange, which would make
the opening process the day after a Level 3 halt more uniform and
reduce complexity. Further, the proposal is based on filings of other
markets that have already adopted the proposed Level 3 rule change.\23\
---------------------------------------------------------------------------
\23\ See id.
---------------------------------------------------------------------------
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
The Exchange has designated this rule filing as non-controversial
under Section 19(b)(3)(A) \24\ of the Act and Rule 19b-4(f)(6) \25\
thereunder. Because the proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\26\
---------------------------------------------------------------------------
\24\ 15 U.S.C. 78s(b)(3)(A).
\25\ 17 CFR 240.19b-4(f)(6).
\26\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange 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
filing of the proposed rule change, or such shorter time as
designated by the Commission. The Commission has waived this
requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \27\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\28\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative upon filing. Extending the pilot for an additional
year will allow the uninterrupted operation of the existing pilot while
the Exchange, FINRA, and the other exchanges conduct a study of the
MWCB mechanism in consultation with market participants and determine
if any additional changes to the MWCB mechanism should be made,
including consideration of rules and procedures for the periodic
testing of the MWCB mechanism with industry participants. With respect
to the proposed change relating to the resumption of trading after a
Level 3 halt, the Commission notes that it approved a substantively
similar proposed rule change submitted by Nasdaq, and waiver of the
operative delay will ensure consistency across the market centers and
the timely implementation of the proposed rule change. Therefore, the
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
The Commission hereby designates the proposed rule change to be
operative upon filing.\29\
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\27\ Id.
\28\ 17 CFR 240.19b-4(f)(6)(iii).
\29\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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 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-MEMX-2020-12 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-MEMX-2020-12. 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-MEMX-2020-12 and
should be submitted on or before November 9, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
---------------------------------------------------------------------------
\30\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-23011 Filed 10-16-20; 8:45 am]
BILLING CODE 8011-01-P
