Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.11 (Routing to Away Trading Centers), as Well as Its Fee Schedule, To Delete References to the INET and RDOX Routing Options and To Delete All References to the C-LNK Routing and Connectivity Option From Its Fee Schedule, 13933-13935 [2021-05031]

Download as PDF Federal Register / Vol. 86, No. 46 / Thursday, March 11, 2021 / Notices commence delisting procedures under NYSE Arca Rule 5.5–E(m). For the foregoing reasons, the Commission finds that the proposed rule change, as modified by Amendments No. 2, is consistent with Section 6(b)(5) of the Act 24 and Section 11A(a)(1)(C)(iii) of the Act 25 and the rules and regulations thereunder applicable to a national securities exchange. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act 26 that the proposed rule change (SR–NYSEArca– 2020–104), as modified by Amendment No. 2, be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.27 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–05029 Filed 3–10–21; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–91271; File No. SR– CboeEDGA–2021–007] Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.11 (Routing to Away Trading Centers), as Well as Its Fee Schedule, To Delete References to the INET and RDOX Routing Options and To Delete All References to the C–LNK Routing and Connectivity Option From Its Fee Schedule March 5, 2021. khammond on DSKJM1Z7X2PROD with NOTICES 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 March 1, 2021, Cboe EDGA Exchange, Inc. (‘‘Exchange’’ or ‘‘EDGA’’) filed with the Securities and Exchange Commission (‘‘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 25 15 U.S.C. 78f(b)(5). U.S.C. 78k–1(a)(1)(C)(iii). 26 Id. 27 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(6). 1 15 VerDate Sep<11>2014 16:53 Mar 10, 2021 Jkt 253001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Cboe EDGA Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGA’’) proposes to amend Rules [sic] 11.11 (Routing to Away Trading Centers), as well as its Fee Schedule, to delete references to the INET and RDOX routing options. Additionally, the Exchange proposes to delete all references to the C–LNK routing and connectivity option from the Exchange’s Fee Schedule. The text of the proposed rule change is provided in Exhibit 5. The text of the proposed rule change is also available on the Exchange’s website (https://markets.cboe.com/us/ equities/regulation/rule_filings/edga/), 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 SECURITIES AND EXCHANGE COMMISSION 24 15 Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend paragraphs (4) and (6) under Exchange Rule 11.11(g) and 11.11(a) to delete all references to the INET and RDOX routing options. The Exchange also proposes to delete all references to the INET routing option from the EDGA Fee Schedule, as provided in fee codes 2 and L. Additionally, the Exchange proposes to delete the C–LNK routing and connectivity option from the Fee Schedule. The Exchange intends to implement the proposed rule changes on March 1, 2021. Exchange Rule 11.11(g) provides for various routing options available on the Exchange. Specifically, Rule 11.11(g)(4) provides for the INET routing option, under which an order checks the PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 13933 System 5 for available shares and then is sent to Nasdaq. If shares remain unexecuted after routing, they are posted on the Nasdaq book, unless otherwise instructed by the User.6 Similarly, Exchange Rule 11.11(g)(6) provides for the RDOX routing option, under which an order checks the System for available shares and then is sent to the NYSE and can be re-routed by the NYSE. If shares remain unexecuted after routing, they are posted on the NYSE book, unless otherwise instructed by the User. The Exchange has determined because few Users select the INET or RDOX routing options, the current demand does not warrant the infrastructure and ongoing maintenance expenses required to support the product. Therefore, the Exchange now proposes to delete INET and RDOX as a routing option as provided by Rule 11.11(g)(4) and (6), respectively. Given the proposed changes described above, the Exchange also proposes to amend Rules 11.11(a) and 11.11(g)(14) to eliminate any reference to the INET and RDOX routing strategies. Specifically, Rule 11.11(a) provides that unless a User selects the Post to Away, RDOT, RDOX, or INET routing option, an order that includes a Short Sale instruction when a Short Sale Circuit Breaker pursuant to Rule 201 of Regulation SHO is in effect is not eligible for routing by the Exchange. Alternatively, Rule 11.11(g)(14) provides for the Post to Away routing option, which routes the remainder of a routed order to and posts such order on the order book of a destination on the System routing table 7 as specified by the User, and lists the specific routing options for which the Post to Away routing option may be combined. Both INET and RDOX are listed under Rule 11.11(g)(14) as routing options that may be combined with the Post to Away routing option. Based on the proposal to eliminate INET and RDOX from Exchange Rules, the Exchange is proposing to eliminating [sic] all such 5 The term ‘‘System’’ shall mean the electronic communications and trading facility designated by the Board through which securities orders of Users are consolidated for ranking, execution and, when applicable, routing away. See Exchange Rule 1.5(cc). 6 The term ‘‘User’’ shall mean any Member or Sponsored Participant who is authorized to obtain access to the System pursuant to Rule 11.3. See Exchange Rule 1.5(ee). 7 The Exchange reserves the right to maintain a different System routing table for different routing options and to modify the System routing table at any time without notice. See Exchange Rule 11.11(g). E:\FR\FM\11MRN1.SGM 11MRN1 13934 Federal Register / Vol. 86, No. 46 / Thursday, March 11, 2021 / Notices references to INET and RDOX in Rules 11.11(a) and 11.11(g)(14). As the Exchange is proposing to eliminate the INET routing option from the EDGA Rulebook, the Exchange also proposes to eliminate any such reference to those routing options [sic] on the EDGA Fee Schedule. Specifically, the Exchange proposes to eliminate Fee Codes 2 8 and L.9 Under Cboe Connect,10 the Exchange offers C–LNK routing and connectivity which provides routing to single-dealer platforms through a connectivity option. Currently, the Exchange charges of a fee of $0.0002 for each share executed by a single-dealer platform for orders routed via Cboe Connect. The Exchange has determined because few Users utilize C– LNK, the current demand does not warrant the infrastructure and ongoing maintenance expenses required to support the product. Therefore, the Exchange now proposes to remove all references to C–LNK routing and connectivity from the Exchange’s Fee Schedule. khammond on DSKJM1Z7X2PROD with NOTICES 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ‘‘Act’’) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.11 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 12 requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 13 requirement that the rules of an exchange not be designed 8 Orders that yield fee code 2 are routed to Nasdaq using the INET routing strategy (Tape B), and are charged a fee of $0.00300. 9 Orders that yield fee code L are routed to Nasdaq using the INET routing strategy (Tape A or C), and are charged a fee of $0.00300. 10 Cboe Connect is a communication service that provides Members an additional means to receive market data from and route orders to any destination connected to the Exchange’s network. See Exchange Rule 13.9. 11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(5). 13 Id. VerDate Sep<11>2014 16:53 Mar 10, 2021 Jkt 253001 to permit unfair discrimination between customers, issuers, brokers, or dealers. In particular, the Exchange believes the proposed rule change to remove references to the RDOX and INET routing options and the C–LNK routing and connectivity option will remove impediments to the mechanism of a free and open market, thereby protecting investors and the public interest. As stated, the Exchange has noted that few Users elect the RDOX and INET routing options or the C–LNK routing and connectivity option and has determined that the current demand does not warrant the infrastructure and ongoing maintenance expense required to support these products. Therefore, the Exchange is discontinuing these options. The Exchange notes that routing through the Exchange is voluntary and alternative routing options offered by the Exchange as well as other methods remain available to Users that wish to route to other trading centers. In addition, neither the RDOX or INET routing options nor the C–LNK routing and connectivity option are core product offerings by the Exchange, nor is the Exchange required by the Act to offer such products. By removing references to routing and connectivity options that will no longer be offered by the Exchange, the Exchange believes the proposed rule change will remove impediments to the mechanism of a free and open market and protect investors by providing investors with rules that accurately reflect routing options currently available on the Exchange. The Exchange does not believe that this proposal will permit unfair discrimination among customers, brokers, or dealers because the RDOX and INET routing options and the C– LNK routing and connectivity option will no longer be available to all Users. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change to remove RDOX, INET, and C–LNK is not designed to address any competitive issues but rather to delete the RDOX and INET routing options and C–LNK routing and connectivity option that are rarely used on the Exchange. As stated, the Exchange has noted that few Users elect the RDOX or INET routing options or the C–LNK routing and connectivity option and has determined that the current demand does not warrant the infrastructure and ongoing maintenance expense required to support these PO 00000 Frm 00061 Fmt 4703 Sfmt 4703 products. Therefore, the Exchange is discontinuing these routing options. The Exchange notes that routing through the Exchange is voluntary and alternative routing options offered by the Exchange as well as other methods remain available to Users that wish to route to other trading centers. In addition, neither INET, RDOX, nor C– LNK are core product offerings by the Exchange, nor is the Exchange required by the Act to offer such products. 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 foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 14 and Rule 19b–4(f)(6) 15 thereunder because the proposal does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) by its terms, become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest.16 A proposed rule change filed pursuant to Rule 19b–4(f)(6) under the Act 17 normally does not become operative for 30 days after the date of its filing. However, Rule 19b–4(f)(6)(iii) 18 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange states that waiver of the 30-day operative delay would immediately eliminate rules and references that account for services the Exchange planned to discontinue on March 1, 2021, thereby avoiding potential investor confusion during the 14 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 16 In addition, Rule 19b–4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange’s intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 17 17 CFR 240.19b–4(f)(6). 18 17 CFR 240.19b–4(f)(6)(iii). 15 17 E:\FR\FM\11MRN1.SGM 11MRN1 13935 Federal Register / Vol. 86, No. 46 / Thursday, March 11, 2021 / Notices operative delay period. Based on the foregoing, the Commission believes the waiver of the operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.19 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.20 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: khammond on DSKJM1Z7X2PROD with NOTICES Electronic Comments • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– CboeEDGA–2021–007 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–CboeEDGA–2021–007. 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 19 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). 20 15 U.S.C. 78s(b)(3)(C). VerDate Sep<11>2014 16:53 Mar 10, 2021 Jkt 253001 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–CboeEDGA–2021–007 and should be submitted on or before April 1, 2021. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–05031 Filed 3–10–21; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–91262; File No. SR–FINRA– 2021–003] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Permit Firms To File a Form U4 Based on an Electronically Signed Copy of the Form March 5, 2021. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act,’’ ‘‘Exchange Act,’’ or ‘‘SEA’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on February 23, 2021, the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by FINRA. FINRA has designated the proposed rule change as constituting a ‘‘non-controversial’’ rule change under paragraph (f)(6) of Rule 19b–4 under the Act,3 which renders the proposal effective upon receipt of this filing by the Commission. The Commission is publishing this notice to 21 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 1 15 PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 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 FINRA is proposing to amend FINRA Rule 1010 (Electronic Filing Requirements for Uniform Forms) to permit firms to file a Form U4 (Uniform Application for Securities Industry Registration or Transfer) based on an electronically signed copy of the form. In addition, FINRA proposes to make a conforming amendment to FINRA Rule 2263 (Arbitration Disclosure to Associated Persons Signing or Acknowledging Form U4). Below is the text of the proposed rule change. Proposed new language is italicized; proposed deletions are in brackets. * * * * * 1000. MEMBER APPLICATION AND ASSOCIATED PERSON REGISTRATION 1010. Electronic Filing Requirements for Uniform Forms (a) through (b) No Change. (c) Form U4 Filing Requirements. (1) Except as provided in paragraphs (c)(2) and (c)(3) of this Rule [below], every initial and transfer electronic Form U4 filing and any amendments to the disclosure information on Form U4 shall be based on a [manually] signed Form U4 provided to the member or applicant for membership by the person on whose behalf the Form U4 is being filed. As part of the member’s recordkeeping requirements, it shall retain the person’s [manually] signed Form U4 or amendments to the disclosure information on Form U4 in accordance with SEA Rule 17a–4(e)(1) and make them available promptly upon regulatory request. An applicant for membership also shall retain in accordance with SEA Rule 17a–4(e)(1) every [manually] signed Form U4 it receives during the application process and make them available promptly upon regulatory request. (2) A member may file electronically amendments to the disclosure information on Form U4 without obtaining the subject associated person’s [manual] signature on the form, provided that the member shall use reasonable efforts to: (A) Provide the associated person with a copy of the amended disclosure information prior to filing; and (B) obtain the associated person’s written acknowledgment (which may be electronic) prior to filing that the information has been received and reviewed. As part of the member’s recordkeeping requirements, the member shall retain this acknowledgment in accordance with SEA Rule 17a–4(e)(1) and make it available promptly upon regulatory request. (3) In the event a member is not able to obtain an associated person’s [manual] signature or written acknowledgement of amended disclosure information on Form U4 prior to filing of such information pursuant E:\FR\FM\11MRN1.SGM 11MRN1

Agencies

[Federal Register Volume 86, Number 46 (Thursday, March 11, 2021)]
[Notices]
[Pages 13933-13935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05031]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91271; File No. SR-CboeEDGA-2021-007]


Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend Rule 11.11 (Routing to Away Trading Centers), as Well as Its Fee 
Schedule, To Delete References to the INET and RDOX Routing Options and 
To Delete All References to the C-LNK Routing and Connectivity Option 
From Its Fee Schedule

March 5, 2021.
    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 March 1, 2021, Cboe EDGA Exchange, Inc. (``Exchange'' or ``EDGA'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the Exchange. The Exchange filed the proposal as 
a ``non-controversial'' proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    Cboe EDGA Exchange, Inc. (the ``Exchange'' or ``EDGA'') proposes to 
amend Rules [sic] 11.11 (Routing to Away Trading Centers), as well as 
its Fee Schedule, to delete references to the INET and RDOX routing 
options. Additionally, the Exchange proposes to delete all references 
to the C-LNK routing and connectivity option from the Exchange's Fee 
Schedule. The text of the proposed rule change is provided in Exhibit 
5.
    The text of the proposed rule change is also available on the 
Exchange's website (https://markets.cboe.com/us/equities/regulation/rule_filings/edga/), 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 Exchange proposes to amend paragraphs (4) and (6) under 
Exchange Rule 11.11(g) and 11.11(a) to delete all references to the 
INET and RDOX routing options. The Exchange also proposes to delete all 
references to the INET routing option from the EDGA Fee Schedule, as 
provided in fee codes 2 and L. Additionally, the Exchange proposes to 
delete the C-LNK routing and connectivity option from the Fee Schedule. 
The Exchange intends to implement the proposed rule changes on March 1, 
2021.
    Exchange Rule 11.11(g) provides for various routing options 
available on the Exchange. Specifically, Rule 11.11(g)(4) provides for 
the INET routing option, under which an order checks the System \5\ for 
available shares and then is sent to Nasdaq. If shares remain 
unexecuted after routing, they are posted on the Nasdaq book, unless 
otherwise instructed by the User.\6\ Similarly, Exchange Rule 
11.11(g)(6) provides for the RDOX routing option, under which an order 
checks the System for available shares and then is sent to the NYSE and 
can be re-routed by the NYSE. If shares remain unexecuted after 
routing, they are posted on the NYSE book, unless otherwise instructed 
by the User.
---------------------------------------------------------------------------

    \5\ The term ``System'' shall mean the electronic communications 
and trading facility designated by the Board through which 
securities orders of Users are consolidated for ranking, execution 
and, when applicable, routing away. See Exchange Rule 1.5(cc).
    \6\ The term ``User'' shall mean any Member or Sponsored 
Participant who is authorized to obtain access to the System 
pursuant to Rule 11.3. See Exchange Rule 1.5(ee).
---------------------------------------------------------------------------

    The Exchange has determined because few Users select the INET or 
RDOX routing options, the current demand does not warrant the 
infrastructure and ongoing maintenance expenses required to support the 
product. Therefore, the Exchange now proposes to delete INET and RDOX 
as a routing option as provided by Rule 11.11(g)(4) and (6), 
respectively.
    Given the proposed changes described above, the Exchange also 
proposes to amend Rules 11.11(a) and 11.11(g)(14) to eliminate any 
reference to the INET and RDOX routing strategies. Specifically, Rule 
11.11(a) provides that unless a User selects the Post to Away, RDOT, 
RDOX, or INET routing option, an order that includes a Short Sale 
instruction when a Short Sale Circuit Breaker pursuant to Rule 201 of 
Regulation SHO is in effect is not eligible for routing by the 
Exchange. Alternatively, Rule 11.11(g)(14) provides for the Post to 
Away routing option, which routes the remainder of a routed order to 
and posts such order on the order book of a destination on the System 
routing table \7\ as specified by the User, and lists the specific 
routing options for which the Post to Away routing option may be 
combined. Both INET and RDOX are listed under Rule 11.11(g)(14) as 
routing options that may be combined with the Post to Away routing 
option. Based on the proposal to eliminate INET and RDOX from Exchange 
Rules, the Exchange is proposing to eliminating [sic] all such

[[Page 13934]]

references to INET and RDOX in Rules 11.11(a) and 11.11(g)(14).
---------------------------------------------------------------------------

    \7\ The Exchange reserves the right to maintain a different 
System routing table for different routing options and to modify the 
System routing table at any time without notice. See Exchange Rule 
11.11(g).
---------------------------------------------------------------------------

    As the Exchange is proposing to eliminate the INET routing option 
from the EDGA Rulebook, the Exchange also proposes to eliminate any 
such reference to those routing options [sic] on the EDGA Fee Schedule. 
Specifically, the Exchange proposes to eliminate Fee Codes 2 \8\ and 
L.\9\
---------------------------------------------------------------------------

    \8\ Orders that yield fee code 2 are routed to Nasdaq using the 
INET routing strategy (Tape B), and are charged a fee of $0.00300.
    \9\ Orders that yield fee code L are routed to Nasdaq using the 
INET routing strategy (Tape A or C), and are charged a fee of 
$0.00300.
---------------------------------------------------------------------------

    Under Cboe Connect,\10\ the Exchange offers C-LNK routing and 
connectivity which provides routing to single-dealer platforms through 
a connectivity option. Currently, the Exchange charges of a fee of 
$0.0002 for each share executed by a single-dealer platform for orders 
routed via Cboe Connect. The Exchange has determined because few Users 
utilize C-LNK, the current demand does not warrant the infrastructure 
and ongoing maintenance expenses required to support the product. 
Therefore, the Exchange now proposes to remove all references to C-LNK 
routing and connectivity from the Exchange's Fee Schedule.
---------------------------------------------------------------------------

    \10\ Cboe Connect is a communication service that provides 
Members an additional means to receive market data from and route 
orders to any destination connected to the Exchange's network. See 
Exchange Rule 13.9.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\11\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \12\ requirements that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest. Additionally, 
the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \13\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
    \13\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes the proposed rule change to 
remove references to the RDOX and INET routing options and the C-LNK 
routing and connectivity option will remove impediments to the 
mechanism of a free and open market, thereby protecting investors and 
the public interest. As stated, the Exchange has noted that few Users 
elect the RDOX and INET routing options or the C-LNK routing and 
connectivity option and has determined that the current demand does not 
warrant the infrastructure and ongoing maintenance expense required to 
support these products. Therefore, the Exchange is discontinuing these 
options. The Exchange notes that routing through the Exchange is 
voluntary and alternative routing options offered by the Exchange as 
well as other methods remain available to Users that wish to route to 
other trading centers. In addition, neither the RDOX or INET routing 
options nor the C-LNK routing and connectivity option are core product 
offerings by the Exchange, nor is the Exchange required by the Act to 
offer such products. By removing references to routing and connectivity 
options that will no longer be offered by the Exchange, the Exchange 
believes the proposed rule change will remove impediments to the 
mechanism of a free and open market and protect investors by providing 
investors with rules that accurately reflect routing options currently 
available on the Exchange. The Exchange does not believe that this 
proposal will permit unfair discrimination among customers, brokers, or 
dealers because the RDOX and INET routing options and the C-LNK routing 
and connectivity option will no longer be available to all Users.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change to 
remove RDOX, INET, and C-LNK is not designed to address any competitive 
issues but rather to delete the RDOX and INET routing options and C-LNK 
routing and connectivity option that are rarely used on the Exchange. 
As stated, the Exchange has noted that few Users elect the RDOX or INET 
routing options or the C-LNK routing and connectivity option and has 
determined that the current demand does not warrant the infrastructure 
and ongoing maintenance expense required to support these products. 
Therefore, the Exchange is discontinuing these routing options. The 
Exchange notes that routing through the Exchange is voluntary and 
alternative routing options offered by the Exchange as well as other 
methods remain available to Users that wish to route to other trading 
centers. In addition, neither INET, RDOX, nor C-LNK are core product 
offerings by the Exchange, nor is the Exchange required by the Act to 
offer such products.

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 foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6) \15\ thereunder 
because the proposal does not: (i) Significantly affect the protection 
of investors or the public interest; (ii) impose any significant burden 
on competition; and (iii) by its terms, become operative for 30 days 
from the date on which it was filed, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest.\16\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to 
give the Commission written notice of the Exchange's intent to file 
the proposed rule change, along with a brief description and text of 
the proposed rule change, at least five business days prior to the 
date of filing of the proposed rule change, or such shorter time as 
designated by the Commission. The Exchange has satisfied this 
requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \17\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \18\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay so that 
the proposal may become operative immediately upon filing. The Exchange 
states that waiver of the 30-day operative delay would immediately 
eliminate rules and references that account for services the Exchange 
planned to discontinue on March 1, 2021, thereby avoiding potential 
investor confusion during the

[[Page 13935]]

operative delay period. Based on the foregoing, the Commission believes 
the waiver of the operative delay is consistent with the protection of 
investors and the public interest. Therefore, the Commission hereby 
waives the operative delay and designates the proposal operative upon 
filing.\19\
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    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 17 CFR 240.19b-4(f)(6)(iii).
    \19\ 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).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.\20\
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    \20\ 15 U.S.C. 78s(b)(3)(C).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

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-CboeEDGA-2021-007 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-CboeEDGA-2021-007. 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-CboeEDGA-2021-007 and should be 
submitted on or before April 1, 2021.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-05031 Filed 3-10-21; 8:45 am]
BILLING CODE 8011-01-P
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