Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend EDGX Rule 11.8(g), Which Describes the Handling of MidPoint Discretionary Orders Entered on the Exchange, 84065-84069 [2020-28318]
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Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Notices
with other exchanges. For the reasons
described above, the Exchange believes
that the proposed rule change reflects
this competitive environment.
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that the proposed
changes to the Facilitation and
Solicitation Transaction fees will not
impose a burden on competition among
various Exchange Participants. Rather,
BOX believes that the change will result
in the Participants being charged
appropriately for these transactions and
are designed to enhance competition in
the Facilitation and Solicitation
mechanisms. Submitting an order is
entirely voluntary and Participants can
determine which order type they wish
to submit, if any, to the Exchange.
Further, the Exchange believes that this
proposal will enhance competition
between exchanges because it is
designed to allow the Exchange to better
compete with other exchanges for order
flow. The Exchange does not believe
that the proposed change will burden
competition by creating a disparity
between the fees an initiator pays and
the fees a competitive responder pays
that would result in certain Participants
being unable to compete with initiators.
In fact, the Exchange believes that these
changes will not impair these
Participants from adding liquidity and
competing in the Facilitation and
Solicitation mechanisms, and will help
promote competition by providing
incentives for market participants to
submit Facilitation and Solicitation
Orders, and thus benefit all Participants
trading on the Exchange by attracting
customer order flow.
Lastly, the Exchange believes that
eliminating the Liquidity Fees and
Credits for Facilitation and Solicitation
Transactions will not burden
competition as the proposed change
applies to all market participants. As
discussed above, the Exchange believes
that eliminating the Liquidity Fees and
Credits for Facilitation and Solicitation
Transactions is reasonable as the
Exchange, pursuant to this proposal, has
eliminated Facilitation and Solicitation
Order fees. Therefore, the credit for
removing liquidity is no longer needed
to incentivize Participants to submit
order flow to the Facilitation and
Solicitation auction mechanisms.
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Exchange Act 16
and Rule 19b–4(f)(2) thereunder,17
because it establishes or changes a due,
or fee.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend the rule change if
it appears to the Commission that the
action is necessary or appropriate in the
public interest, for the protection of
investors, or would otherwise further
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BOX–2020–39 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–BOX–2020–39. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–BOX–2020–39, and should
be submitted on or before January 13,
2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–28305 Filed 12–22–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90713; File No. SR–
CboeEDGX–2020–063]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend
EDGX Rule 11.8(g), Which Describes
the Handling of MidPoint Discretionary
Orders Entered on the Exchange
December 17, 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 December
15, 2020, Cboe EDGX Exchange, Inc.
(the ‘‘Exchange’’ or ‘‘EDGX’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Exchange filed the proposal as a
‘‘non-controversial’’ proposed rule
change pursuant to Section
18 17
16 15
U.S.C. 78s(b)(3)(A)(ii).
17 17 CFR 240.19b–4(f)(2).
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84065
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Notices
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(6) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGX Exchange, Inc. (‘‘EDGX’’
or the ‘‘Exchange’’) is filing with the
Securities and Exchange Commission
(the ‘‘Commission’’) a proposed rule
change to amend EDGX Rule 11.8(g),
which describes the handling of
MidPoint Discretionary Orders entered
on the Exchange.5 The text of the
proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
options/regulation/rule_filings/edgx/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
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The purpose of the proposed rule
change is to amend EDGX Rule 11.8(g)
to allow Users that enter MidPoint
Discretionary Orders (‘‘MDOs’’) with a
Quote Depletion Protection (‘‘QDP’’)
instruction 6 to also include an optional
instruction to allow the MDO to remove
liquidity. An MDO is a Limit Order that
when resting on the EDGX Book is
pegged to the NBB for an order to buy
or the NBO for an order to sell, with or
without an offset, with discretion to
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 17 CFR 240.19b–4(f)(6)(iii).
6 QDP is an optional instruction that a User may
include on an MDO to limit the order’s ability to
exercise discretion in certain circumstances. See
EDGX Rule 11.9(g)(10).
4 17
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execute at prices to and including the
midpoint of the NBBO.7 MDOs entered
on the Exchange today are designed to
only act as the provider of liquidity,
including when resting on the EDGX
Book and on entry.8 On June 4, 2020,
the Exchange received approval to
introduce a new QDP instruction that
Users can include on their MDOs to
limit the order’s ability to exercise
discretion in certain circumstances
where applicable market conditions
indicate that it may be less desirable to
execute within the order’s discretionary
range.9 QDP is designed to enable
market participants to enter orders that
may exercise discretion to trade at more
aggressive prices up to the midpoint of
the NBBO, while providing additional
protection to those orders at times
where the market for the security may
be about to transition to a worse price
from the perspective of the MDO. As
proposed, Users that enter an MDO with
a QDP instruction would be permitted
to include an optional instruction to
allow the MDO to remove liquidity,
thereby facilitating the ability of such
orders to aggressively seek an execution
on entry and when posted to the EDGX
Book.
Currently, an MDO entered on the
Exchange will only act as a liquidity
provider once resting on the EDGX
Book, and will only execute on entry in
limited circumstances where the resting
order includes a Super Aggressive or
Non-Displayed Swap (‘‘NDS’’)
instruction that allows for a liquidity
swap with the incoming MDO.10 As a
result, MDOs entered on the Exchange
will only act as liquidity provider—i.e.,
either as the resting order, or by
liquidity swapping with a resting order
that is willing to assume the role of the
liquidity remover in exchange for
obtaining an execution.11 By contrast,
MDOs entered on the Exchange’s
affiliate, Cboe EDGA Exchange, Inc.
(‘‘EDGA’’), are allowed to remove
liquidity.12 Although the Exchange
believes that certain Users will continue
to prefer to act solely as a liquidity
provider, additional flexibility may be
beneficial to market participants,
particularly those that have begun
entering MDOs with the recently7 See
EDGX Rule 11.8(g).
8 Id.
9 See Securities Exchange Act Release No. 89007
(June 4, 2020), 85 FR 35454 (June 10, 2020) (SR–
CboeEDGX–2020–010).
10 See EDGX Rule 11.8(g).
11 The Exchange’s Super Aggressive and NDS
instructions allow orders entered with those
instructions to trade as the remover of liquidity
with orders that are designated to act solely as the
liquidity provider. See EDGX Rules 11.6(n)(2),(7).
12 See EDGA Rule 11.8(e).
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introduced QDP instruction. Indeed, the
Exchange has received feedback from
Users that utilize the QDP instruction
on their MDOs indicating that they
appreciate the protective features
provided by QDP, but that it would also
be valuable to improve fill rates by
permitting such orders to remove
liquidity. The Exchange is thus
proposing to amend its rules such that
Users would have the flexibility to
allow such orders to remove liquidity.
MDOs entered with both a QDP
instruction and an instruction to allow
the order to remove liquidity would be
handled in the same manner as MDOs
entered with a QDP instruction on
EDGA today, thereby providing a
consistent and familiar experience for
market participants.
In addition, since the Exchange
believes that Users utilizing the MDO
order type with a QDP instruction are
more concerned with potential adverse
selection risks, and would generally
prefer to be able to secure an execution
when possible at times that the QDP
indicator does not predict a potential
adverse price change, i.e., regardless of
whether adding or removing liquidity,
the Exchange proposes to make the
ability to remove liquidity the default
instruction for such orders. However,
the Exchange would also retain the
current functionality that allows MDOs
to be entered that will only act as the
provider of liquidity. This functionality
would continue to apply to all MDOs
entered without a QDP instruction, as
well as to MDOs entered with a QDP
instruction if the User affirmatively
instructs the Exchange limit the order to
providing liquidity.13 Thus, Users that
prefer to only have their MDOs execute
exclusively as the provider of liquidity
would be able to continue to do so in
the same manner that they do today.
Introducing the ability for MDOs
entered with a QDP instruction to
remove liquidity, while retaining
current functionality, would therefore
provide additional flexibility to market
participants without impacting order
handling for Users that prefer the
current functionality.
The Exchange also proposes also
make certain conforming and nonsubstantive changes to EDGX Rule
11.8(g). Specifically, to increase the
readability of the MDO rule, the
Exchange proposes to move all rule
language associated with posting
instructions to EDGX Rule 11.8(g)(5),
labelled ‘‘routing/posting.’’ Currently,
13 A User would be able to instruct the Exchange
to limit the order to providing liquidity either on
an order-by-order basis, or through the use of a port
setting.
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this subparagraph only references the
fact that MDOs are not eligible for
routing to other national securities
exchanges, and does not reference order
handling related to posting
instructions—i.e., whether and when an
MDO is allowed to remove or add
liquidity. As proposed, EDGX Rule
11.8(g)(5) would incorporate language
currently included in the main section
of the MDO rule that describes how
such orders are handled consistent with
an instruction to only act as the
liquidity provider.
First, the current rule provides that
upon entry, an MDO will only execute
against resting orders that include a
Super Aggressive instruction priced at
the MDO’s pegged price if the MDO also
contains a Displayed instruction and
against orders with an NDS instruction
priced at the MDO’s pegged price or
within its discretionary range. The
Exchange proposes to move this
discussion to EDGX Rule 11.8(g)(5)
along with other language that addresses
order handling related to routing and
posting. Given the proposed ability for
such orders to remove liquidity in
certain circumstances, the Exchange has
proposed to preface this language in the
rule with language that explains that it
only applies to MDOs that do not
include instructions that permit the
removal of liquidity. Thus, as proposed,
EDGX Rule 11.8(g)(5) would provide
that if the instructions included on an
MDO do not permit the order to remove
liquidity, the MDO will only execute on
entry against resting orders that include
a Super Aggressive instruction priced at
the MDO’s pegged price if the MDO also
contains a Displayed instruction, and
against orders with an NDS instruction
priced at the MDO’s pegged price or
within its discretionary range. As
discussed, this functionality is the same
as currently applied to MDOs entered
on the Exchange.
Second, the current rule provides that
should a resting contra-side order
within the MDO’s discretionary range
not include an NDS instruction, the
incoming MDO will be placed on the
EDGX Book and its discretionary range
shortened to equal the limit price of the
contra-side resting order. Similar to the
above, the Exchange proposes to move
this discussion to EDGX Rule 11.8(g)(5),
and would make minor non-substantive
changes to the language to account for
the ability of certain MDOs to remove
liquidity under the proposal. Thus, as
proposed, EDGX Rule 11.8(g)(5) would
provide that if a resting contra-side
order that does not include an NDS
instruction is priced within the
discretionary range of an incoming
MDO that is not permitted to remove
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liquidity, the incoming MDO will be
placed on the EDGX Book and its
discretionary range will be shortened to
equal the limit price of the resting
contra-side order. This language relates
specifically to incoming MDOs that do
not remove liquidity and are therefore
not able to trade on entry with certain
orders that are unwilling to perform a
liquidity swap. The proposed edits to
the language would therefore make clear
that this handling does not apply in
circumstances where an MDO is entered
with instructions that permit liquidity
removal.
Third, the current rule provides that
where an incoming order with a Post
Only instruction does not remove
liquidity on entry pursuant to Rule
11.6(n)(4) against a resting MDO, the
discretionary range of the resting MDO
will be shortened to equal the limit
price of the incoming contra-side order
with a Post Only instruction. The
Exchange also proposes to move this
language to Rule 11.8(g)(5) as it relates
to relates generally to posting
instructions. However, since this
handling does not depend on whether
the MDO is only allowed to add
liquidity, or can both add or remove
liquidity, the Exchange is not proposing
to edit this language when moving it to
this subsection of the MDO rule.
Finally, in addition to the proposed
changes described above, the Exchange
also proposes to amend EDGX Rule
11.8(g)(2) to allow MDOs to be entered
for an odd lot size. Currently, EDGX
Rule 11.8(g)(2) specifies that MDOs may
be entered as a round lot or mixed lot
only, and the Exchange does not permit
Users odd lots to be entered using the
MDO order type. By contrast, the
Exchange’s affiliate, EDGA, does not
have a similar restriction, and MDOs
entered on that exchange may therefore
be entered for an odd lot size.14 The
Exchange is proposing to similarly
permit odd lot MDOs to be entered on
the EDGX Book, which would allow
market participants trading on the
Exchange to similarly utilize MDOs for
smaller order sizes.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,15 in general, and furthers the
objectives of Section 6(b)(5) of the Act,16
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
14 See
EDGA Rule 11.8(e)(2).
U.S.C. 78f(b).
16 15 U.S.C. 78f(b)(5).
15 15
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84067
system, and, in general to protect
investors and the public interest.
Specifically, the Exchange believes that
the proposed rule change is consistent
with the protection of investors and the
public interest as it would enable Users
that enter MDOs with a QDP instruction
to optionally remove liquidity, similar
to the current handling on its affiliate,
EDGA, which allows such orders to
remove liquidity today. In addition, the
proposed rule change would allow
Users to enter MDOs for an odd lot
quantity, which is similarly consistent
with the operation of MDOs entered on
EDGA.
Although MDOs are currently
designed to only act as the provider of
liquidity, the Exchange believes that
Users that enter MDOs with a QDP
instruction may benefit from the ability
to trade more aggressively as the
remover of liquidity. The Exchange is
therefore proposing to allow MDOs
entered with a QDP instruction to
remove liquidity, by default, while
allowing Users to alternatively select to
have such orders limited to providing
liquidity. MDOs that are not entered
with a QDP instruction, and MDOs
entered with a QDP instruction where
the User chooses to opt out of the ability
to remove liquidity, would be handled
in the same manner as they are today,
thereby allowing Users to properly
reflect their trading intent with their
choice of instruction. As discussed,
MDOs entered on the Exchange
currently only act as the provider of
liquidity, both on entry and upon
posting to the EDGX Book. By contrast,
the Exchange’s affiliate, EDGA, allows
such orders to both provide and remove
liquidity. The Exchange believes that
allowing MDOs entered with a QDP
instruction to optionally act as liquidity
remover, similar to the current handling
on its affiliate, EDGA, would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system.
With the recent introduction of the
QDP instruction, the Exchange has
decided to revisit whether these orders
should be allowed to remove liquidity,
and has determined that such handling
would be generally beneficial to market
participants trading on the Exchange as
it would increase the probability of such
orders obtaining an execution. This
change is consistent with customer
feedback as some Users have indicated
that they would prefer the ability to
remove liquidity in order to boost fill
rates for MDOs entered with a QDP
instruction. At the same time, the
Exchange understands that certain
market participants may wish to
continue to have these orders act solely
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Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Notices
as a liquidity provider. The proposed
rule change would therefore give Users
the flexibility to determine whether an
MDO entered with a QDP instruction
should act solely as a liquidity provider,
i.e., the current functionality, or
whether such orders should instead be
allowed to also remove liquidity. The
Exchange believes that this change will
benefit market participants by offering
functionality similar to that currently
offered by its affiliate, while providing
additional flexibility with respect to
how MDOs are handled by the
Exchange.
In addition, the Exchange believes
that the proposed non-substantive
changes to its MDO rule are consistent
with just and equitable principles of
trade as these changes are designed to
increase transparency around the
operation of the Exchange. As proposed,
the Exchange would move certain
language included in the MDO rule to
the subsection of the rule that
addressees routing and posting. The
proposed language to be included in
that subsection is substantively the
same as the language currently included
in the main text of the MDO rule, with
a handful of minor changes to reflect the
fact that certain MDOs may be permitted
to remove liquidity based on User
instructions. The Exchange believes that
consolidating all of this language in the
subsection on routing and posting
would increase the readability of the
rule, and the proposed edits to the
language included in that subsection are
merely designed to highlight where the
language is applicable specifically to
MDOs entered with instructions that
require that the order act as the provider
of liquidity. These changes are being
proposed to ensure that the language
remains accurate in light of the changes
to allow certain MDOs to remove
liquidity. As such, the Exchange
believes that those edits would increase
transparency around the operation of
the MDO order type in light of the other
proposed changes addressed in this
filing.
Finally, the Exchange believes that
allowing MDOs to be entered for an odd
lot quantity would promote just and
equitable principles of trade. As
discussed, the Exchange’s affiliate,
EDGA, similarly allows such orders to
be entered for an odd lot size, and the
Exchange believes that market
participants that trade on the EDGX
Book should similarly be able to enter
odd lot MDOs. While the Exchange
initially restricted MDOs to either round
lots or mixed lots, the Exchange now
believes that this limitation
unnecessarily limits the availability of
the MDO order type for market
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participants that are interested in
trading smaller sized orders. Expanding
MDOs to odd lot orders would therefore
increase the ability for market
participants to trade using this order
type, including potentially benefiting
Users of the recently introduced QDP
instruction.
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. The
proposed changes would allow MDOs
entered with a QDP instruction on
EDGX to remove liquidity, which would
increase flexibility offered by such
orders. Although these orders do not
remove liquidity today, the Exchange’s
affiliate, EDGA, already permits such
orders to do so. Thus, the proposed rule
change would allow market participants
that trade on EDGX to utilize similar
functionality to those that trade on its
affiliated exchange today. Further, the
Exchange has proposed to introduce the
ability to remove liquidity as the default
instruction for such orders, while
allowing Users that prefer the current
functionality to continue to have their
orders handled in the same manner as
they are today—i.e., Users could chose
to have these orders only add liquidity,
as is the case with the current
functionality. As a result, the Exchange
does not believe that the proposed
ability for these orders to remove
liquidity would impose any significant
burden on competition. Similarly, the
Exchange notes that MDOs entered on
the EDGA Book are permitted to be
entered for an odd lot quantity. The
Exchange believes that permitting odd
lot MDOs on the EDGX Book would
provide similar benefits to its Users by
expanding the potential use of this order
type, without imposing any significant
burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not:
A. Significantly affect the protection
of investors or the public interest;
B. impose any significant burden on
competition; and
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C. 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 17 and Rule 19b–4(f)(6) 18
thereunder. 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 will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CboeEDGX–2020–063 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CboeEDGX–2020–063. 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
17 15
18 17
E:\FR\FM\23DEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
23DEN1
Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Notices
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–CboeEDGX–2020–063 and
should be submitted on or before
January 13, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–28318 Filed 12–22–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting; Cancellation
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: 85 FR 81999, December
17, 2020.
PREVIOUSLY ANNOUNCED TIME AND DATE OF
THE MEETING: Monday, December 21,
2020 at 10:00 a.m.
The Open
Meeting scheduled for Monday,
December 21, 2020 at 10:00 a.m., has
been cancelled.
CHANGES IN THE MEETING:
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Dated: December 18, 2020.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2020–28521 Filed 12–21–20; 4:15 pm]
jbell on DSKJLSW7X2PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90708; File No. SR–
NYSECHX–2020–32]
Self-Regulatory Organizations; NYSE
Chicago, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Rule
6.6800 Series
December 17, 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 December
4, 2020, the NYSE Chicago, Inc. (‘‘NYSE
Chicago’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory 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
The Exchange proposes to amend the
Rule 6.6800 Series, the Exchange’s
compliance rule (‘‘Compliance Rule’’)
regarding the National Market System
Plan Governing the Consolidated Audit
Trail (the ‘‘CAT NMS Plan’’ or ‘‘Plan’’) 3
to be consistent with a conditional
exemption granted by the Commission
from certain allocation reporting
requirements set forth in Sections
6.4(d)(ii)(A)(1) and (2) of the CAT NMS
Plan (‘‘Allocation Exemption’’).4 The
proposed rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
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 those statements may be examined at
the places specified in Item IV below.
1 15
U.S.C. 78a.
CFR 240.19b–4.
3 Unless otherwise specified, capitalized terms
used in this rule filing are defined as set forth in
the Compliance Rule.
4 See Securities Exchange Act Rel. No. 90223
(October 19, 2020), 85 FR 67576 (October 23, 2020)
(‘‘Allocation Exemptive Order’’).
2 17
19 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
21:21 Dec 22, 2020
Jkt 253001
PO 00000
Frm 00187
Fmt 4703
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84069
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to amend the Rule 6.6800
Series to be consistent with the
Allocation Exemption. The Commission
granted the relief conditioned upon the
Participants’ adoption of Compliance
Rules that implement the alternative
approach to reporting allocations to the
Central Repository described in the
Allocation Exemption (referred to as the
‘‘Allocation Alternative’’).
(1) Request for Exemptive Relief
Pursuant to Section 6.4(d)(ii)(A) of the
CAT NMS Plan, each Participant must,
through its Compliance Rule, require its
Industry Members to record and report
to the Central Repository, if the order is
executed, in whole or in part: (1) An
Allocation Report; 5 (2) the SROAssigned Market Participant Identifier
of the clearing broker or prime broker,
if applicable; and the (3) CAT-Order-ID
of any contra-side order(s). Accordingly,
the Exchange and the other Participants
implemented Compliance Rules that
require their Industry Members that are
executing brokers to submit to the
Central Repository, among other things,
Allocation Reports and the SROAssigned Market Participant Identifier
of the clearing broker or prime broker,
if applicable.
On August 27, 2020, the Participants
submitted to the Commission a request
for an exemption from certain allocation
reporting requirements set forth in
Sections 6.4(d)(ii)(A)(1) and (2) of the
CAT NMS Plan (‘‘Exemption
Request’’).6 In the Exemption Request,
the Participants requested that they be
permitted to implement the Allocation
Alternative, which, as noted above, is an
alternative approach to reporting
5 Section 1.1 of the CAT NMS Plan defines an
‘‘Allocation Report’’ as ‘‘a report made to the
Central Repository by an Industry Member that
identifies the Firm Designated ID for any account(s),
including subaccount(s), to which executed shares
are allocated and provides the security that has
been allocated, the identifier of the firm reporting
the allocation, the price per share of shares
allocated, the side of shares allocated, the number
of shares allocated to each account, and the time of
the allocation; provided for the avoidance of doubt,
any such Allocation Report shall not be required to
be linked to particular orders or executions.’’
6 See letter from the Participants to Vanessa
Countryman, Secretary, Commission, dated August
27, 2020 (the ‘‘Exemption Request’’).
E:\FR\FM\23DEN1.SGM
23DEN1
]]>Agencies
[Federal Register Volume 85, Number 247 (Wednesday, December 23, 2020)]
[Notices]
[Pages 84065-84069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28318]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90713; File No. SR-CboeEDGX-2020-063]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend EDGX Rule 11.8(g), Which Describes the Handling of MidPoint
Discretionary Orders Entered on the Exchange
December 17, 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 December 15, 2020, Cboe EDGX Exchange, Inc. (the ``Exchange''
or ``EDGX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Exchange filed the proposal as a ``non-controversial'' proposed rule
change pursuant to Section
[[Page 84066]]
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe EDGX Exchange, Inc. (``EDGX'' or the ``Exchange'') is filing
with the Securities and Exchange Commission (the ``Commission'') a
proposed rule change to amend EDGX Rule 11.8(g), which describes the
handling of MidPoint Discretionary Orders entered on the Exchange.\5\
The text of the proposed rule change is provided in Exhibit 5.
---------------------------------------------------------------------------
\5\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/options/regulation/rule_filings/edgx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend EDGX Rule
11.8(g) to allow Users that enter MidPoint Discretionary Orders
(``MDOs'') with a Quote Depletion Protection (``QDP'') instruction \6\
to also include an optional instruction to allow the MDO to remove
liquidity. An MDO is a Limit Order that when resting on the EDGX Book
is pegged to the NBB for an order to buy or the NBO for an order to
sell, with or without an offset, with discretion to execute at prices
to and including the midpoint of the NBBO.\7\ MDOs entered on the
Exchange today are designed to only act as the provider of liquidity,
including when resting on the EDGX Book and on entry.\8\ On June 4,
2020, the Exchange received approval to introduce a new QDP instruction
that Users can include on their MDOs to limit the order's ability to
exercise discretion in certain circumstances where applicable market
conditions indicate that it may be less desirable to execute within the
order's discretionary range.\9\ QDP is designed to enable market
participants to enter orders that may exercise discretion to trade at
more aggressive prices up to the midpoint of the NBBO, while providing
additional protection to those orders at times where the market for the
security may be about to transition to a worse price from the
perspective of the MDO. As proposed, Users that enter an MDO with a QDP
instruction would be permitted to include an optional instruction to
allow the MDO to remove liquidity, thereby facilitating the ability of
such orders to aggressively seek an execution on entry and when posted
to the EDGX Book.
---------------------------------------------------------------------------
\6\ QDP is an optional instruction that a User may include on an
MDO to limit the order's ability to exercise discretion in certain
circumstances. See EDGX Rule 11.9(g)(10).
\7\ See EDGX Rule 11.8(g).
\8\ Id.
\9\ See Securities Exchange Act Release No. 89007 (June 4,
2020), 85 FR 35454 (June 10, 2020) (SR-CboeEDGX-2020-010).
---------------------------------------------------------------------------
Currently, an MDO entered on the Exchange will only act as a
liquidity provider once resting on the EDGX Book, and will only execute
on entry in limited circumstances where the resting order includes a
Super Aggressive or Non-Displayed Swap (``NDS'') instruction that
allows for a liquidity swap with the incoming MDO.\10\ As a result,
MDOs entered on the Exchange will only act as liquidity provider--i.e.,
either as the resting order, or by liquidity swapping with a resting
order that is willing to assume the role of the liquidity remover in
exchange for obtaining an execution.\11\ By contrast, MDOs entered on
the Exchange's affiliate, Cboe EDGA Exchange, Inc. (``EDGA''), are
allowed to remove liquidity.\12\ Although the Exchange believes that
certain Users will continue to prefer to act solely as a liquidity
provider, additional flexibility may be beneficial to market
participants, particularly those that have begun entering MDOs with the
recently-introduced QDP instruction. Indeed, the Exchange has received
feedback from Users that utilize the QDP instruction on their MDOs
indicating that they appreciate the protective features provided by
QDP, but that it would also be valuable to improve fill rates by
permitting such orders to remove liquidity. The Exchange is thus
proposing to amend its rules such that Users would have the flexibility
to allow such orders to remove liquidity. MDOs entered with both a QDP
instruction and an instruction to allow the order to remove liquidity
would be handled in the same manner as MDOs entered with a QDP
instruction on EDGA today, thereby providing a consistent and familiar
experience for market participants.
---------------------------------------------------------------------------
\10\ See EDGX Rule 11.8(g).
\11\ The Exchange's Super Aggressive and NDS instructions allow
orders entered with those instructions to trade as the remover of
liquidity with orders that are designated to act solely as the
liquidity provider. See EDGX Rules 11.6(n)(2),(7).
\12\ See EDGA Rule 11.8(e).
---------------------------------------------------------------------------
In addition, since the Exchange believes that Users utilizing the
MDO order type with a QDP instruction are more concerned with potential
adverse selection risks, and would generally prefer to be able to
secure an execution when possible at times that the QDP indicator does
not predict a potential adverse price change, i.e., regardless of
whether adding or removing liquidity, the Exchange proposes to make the
ability to remove liquidity the default instruction for such orders.
However, the Exchange would also retain the current functionality that
allows MDOs to be entered that will only act as the provider of
liquidity. This functionality would continue to apply to all MDOs
entered without a QDP instruction, as well as to MDOs entered with a
QDP instruction if the User affirmatively instructs the Exchange limit
the order to providing liquidity.\13\ Thus, Users that prefer to only
have their MDOs execute exclusively as the provider of liquidity would
be able to continue to do so in the same manner that they do today.
Introducing the ability for MDOs entered with a QDP instruction to
remove liquidity, while retaining current functionality, would
therefore provide additional flexibility to market participants without
impacting order handling for Users that prefer the current
functionality.
---------------------------------------------------------------------------
\13\ A User would be able to instruct the Exchange to limit the
order to providing liquidity either on an order-by-order basis, or
through the use of a port setting.
---------------------------------------------------------------------------
The Exchange also proposes also make certain conforming and non-
substantive changes to EDGX Rule 11.8(g). Specifically, to increase the
readability of the MDO rule, the Exchange proposes to move all rule
language associated with posting instructions to EDGX Rule 11.8(g)(5),
labelled ``routing/posting.'' Currently,
[[Page 84067]]
this subparagraph only references the fact that MDOs are not eligible
for routing to other national securities exchanges, and does not
reference order handling related to posting instructions--i.e., whether
and when an MDO is allowed to remove or add liquidity. As proposed,
EDGX Rule 11.8(g)(5) would incorporate language currently included in
the main section of the MDO rule that describes how such orders are
handled consistent with an instruction to only act as the liquidity
provider.
First, the current rule provides that upon entry, an MDO will only
execute against resting orders that include a Super Aggressive
instruction priced at the MDO's pegged price if the MDO also contains a
Displayed instruction and against orders with an NDS instruction priced
at the MDO's pegged price or within its discretionary range. The
Exchange proposes to move this discussion to EDGX Rule 11.8(g)(5) along
with other language that addresses order handling related to routing
and posting. Given the proposed ability for such orders to remove
liquidity in certain circumstances, the Exchange has proposed to
preface this language in the rule with language that explains that it
only applies to MDOs that do not include instructions that permit the
removal of liquidity. Thus, as proposed, EDGX Rule 11.8(g)(5) would
provide that if the instructions included on an MDO do not permit the
order to remove liquidity, the MDO will only execute on entry against
resting orders that include a Super Aggressive instruction priced at
the MDO's pegged price if the MDO also contains a Displayed
instruction, and against orders with an NDS instruction priced at the
MDO's pegged price or within its discretionary range. As discussed,
this functionality is the same as currently applied to MDOs entered on
the Exchange.
Second, the current rule provides that should a resting contra-side
order within the MDO's discretionary range not include an NDS
instruction, the incoming MDO will be placed on the EDGX Book and its
discretionary range shortened to equal the limit price of the contra-
side resting order. Similar to the above, the Exchange proposes to move
this discussion to EDGX Rule 11.8(g)(5), and would make minor non-
substantive changes to the language to account for the ability of
certain MDOs to remove liquidity under the proposal. Thus, as proposed,
EDGX Rule 11.8(g)(5) would provide that if a resting contra-side order
that does not include an NDS instruction is priced within the
discretionary range of an incoming MDO that is not permitted to remove
liquidity, the incoming MDO will be placed on the EDGX Book and its
discretionary range will be shortened to equal the limit price of the
resting contra-side order. This language relates specifically to
incoming MDOs that do not remove liquidity and are therefore not able
to trade on entry with certain orders that are unwilling to perform a
liquidity swap. The proposed edits to the language would therefore make
clear that this handling does not apply in circumstances where an MDO
is entered with instructions that permit liquidity removal.
Third, the current rule provides that where an incoming order with
a Post Only instruction does not remove liquidity on entry pursuant to
Rule 11.6(n)(4) against a resting MDO, the discretionary range of the
resting MDO will be shortened to equal the limit price of the incoming
contra-side order with a Post Only instruction. The Exchange also
proposes to move this language to Rule 11.8(g)(5) as it relates to
relates generally to posting instructions. However, since this handling
does not depend on whether the MDO is only allowed to add liquidity, or
can both add or remove liquidity, the Exchange is not proposing to edit
this language when moving it to this subsection of the MDO rule.
Finally, in addition to the proposed changes described above, the
Exchange also proposes to amend EDGX Rule 11.8(g)(2) to allow MDOs to
be entered for an odd lot size. Currently, EDGX Rule 11.8(g)(2)
specifies that MDOs may be entered as a round lot or mixed lot only,
and the Exchange does not permit Users odd lots to be entered using the
MDO order type. By contrast, the Exchange's affiliate, EDGA, does not
have a similar restriction, and MDOs entered on that exchange may
therefore be entered for an odd lot size.\14\ The Exchange is proposing
to similarly permit odd lot MDOs to be entered on the EDGX Book, which
would allow market participants trading on the Exchange to similarly
utilize MDOs for smaller order sizes.
---------------------------------------------------------------------------
\14\ See EDGA Rule 11.8(e)(2).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\15\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\16\ 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. Specifically, the Exchange believes that the proposed rule
change is consistent with the protection of investors and the public
interest as it would enable Users that enter MDOs with a QDP
instruction to optionally remove liquidity, similar to the current
handling on its affiliate, EDGA, which allows such orders to remove
liquidity today. In addition, the proposed rule change would allow
Users to enter MDOs for an odd lot quantity, which is similarly
consistent with the operation of MDOs entered on EDGA.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Although MDOs are currently designed to only act as the provider of
liquidity, the Exchange believes that Users that enter MDOs with a QDP
instruction may benefit from the ability to trade more aggressively as
the remover of liquidity. The Exchange is therefore proposing to allow
MDOs entered with a QDP instruction to remove liquidity, by default,
while allowing Users to alternatively select to have such orders
limited to providing liquidity. MDOs that are not entered with a QDP
instruction, and MDOs entered with a QDP instruction where the User
chooses to opt out of the ability to remove liquidity, would be handled
in the same manner as they are today, thereby allowing Users to
properly reflect their trading intent with their choice of instruction.
As discussed, MDOs entered on the Exchange currently only act as the
provider of liquidity, both on entry and upon posting to the EDGX Book.
By contrast, the Exchange's affiliate, EDGA, allows such orders to both
provide and remove liquidity. The Exchange believes that allowing MDOs
entered with a QDP instruction to optionally act as liquidity remover,
similar to the current handling on its affiliate, EDGA, would remove
impediments to and perfect the mechanism of a free and open market and
a national market system.
With the recent introduction of the QDP instruction, the Exchange
has decided to revisit whether these orders should be allowed to remove
liquidity, and has determined that such handling would be generally
beneficial to market participants trading on the Exchange as it would
increase the probability of such orders obtaining an execution. This
change is consistent with customer feedback as some Users have
indicated that they would prefer the ability to remove liquidity in
order to boost fill rates for MDOs entered with a QDP instruction. At
the same time, the Exchange understands that certain market
participants may wish to continue to have these orders act solely
[[Page 84068]]
as a liquidity provider. The proposed rule change would therefore give
Users the flexibility to determine whether an MDO entered with a QDP
instruction should act solely as a liquidity provider, i.e., the
current functionality, or whether such orders should instead be allowed
to also remove liquidity. The Exchange believes that this change will
benefit market participants by offering functionality similar to that
currently offered by its affiliate, while providing additional
flexibility with respect to how MDOs are handled by the Exchange.
In addition, the Exchange believes that the proposed non-
substantive changes to its MDO rule are consistent with just and
equitable principles of trade as these changes are designed to increase
transparency around the operation of the Exchange. As proposed, the
Exchange would move certain language included in the MDO rule to the
subsection of the rule that addressees routing and posting. The
proposed language to be included in that subsection is substantively
the same as the language currently included in the main text of the MDO
rule, with a handful of minor changes to reflect the fact that certain
MDOs may be permitted to remove liquidity based on User instructions.
The Exchange believes that consolidating all of this language in the
subsection on routing and posting would increase the readability of the
rule, and the proposed edits to the language included in that
subsection are merely designed to highlight where the language is
applicable specifically to MDOs entered with instructions that require
that the order act as the provider of liquidity. These changes are
being proposed to ensure that the language remains accurate in light of
the changes to allow certain MDOs to remove liquidity. As such, the
Exchange believes that those edits would increase transparency around
the operation of the MDO order type in light of the other proposed
changes addressed in this filing.
Finally, the Exchange believes that allowing MDOs to be entered for
an odd lot quantity would promote just and equitable principles of
trade. As discussed, the Exchange's affiliate, EDGA, similarly allows
such orders to be entered for an odd lot size, and the Exchange
believes that market participants that trade on the EDGX Book should
similarly be able to enter odd lot MDOs. While the Exchange initially
restricted MDOs to either round lots or mixed lots, the Exchange now
believes that this limitation unnecessarily limits the availability of
the MDO order type for market participants that are interested in
trading smaller sized orders. Expanding MDOs to odd lot orders would
therefore increase the ability for market participants to trade using
this order type, including potentially benefiting Users of the recently
introduced QDP instruction.
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. The proposed changes would
allow MDOs entered with a QDP instruction on EDGX to remove liquidity,
which would increase flexibility offered by such orders. Although these
orders do not remove liquidity today, the Exchange's affiliate, EDGA,
already permits such orders to do so. Thus, the proposed rule change
would allow market participants that trade on EDGX to utilize similar
functionality to those that trade on its affiliated exchange today.
Further, the Exchange has proposed to introduce the ability to remove
liquidity as the default instruction for such orders, while allowing
Users that prefer the current functionality to continue to have their
orders handled in the same manner as they are today--i.e., Users could
chose to have these orders only add liquidity, as is the case with the
current functionality. As a result, the Exchange does not believe that
the proposed ability for these orders to remove liquidity would impose
any significant burden on competition. Similarly, the Exchange notes
that MDOs entered on the EDGA Book are permitted to be entered for an
odd lot quantity. The Exchange believes that permitting odd lot MDOs on
the EDGX Book would provide similar benefits to its Users by expanding
the potential use of this order type, without imposing any significant
burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
A. Significantly affect the protection of investors or the public
interest;
B. impose any significant burden on competition; and
C. 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 \17\ and
Rule 19b-4(f)(6) \18\ thereunder. 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 will institute proceedings to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CboeEDGX-2020-063 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-CboeEDGX-2020-063. 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
[[Page 84069]]
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-CboeEDGX-2020-063 and should
be submitted on or before January 13, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------
\19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-28318 Filed 12-22-20; 8:45 am]
BILLING CODE 8011-01-P
