Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Current Pilot Program Related to BX Equity 11, Rule 11890 to the Close of Business on October 20, 2021, 20779-20781 [2021-08146]
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Federal Register / Vol. 86, No. 75 / Wednesday, April 21, 2021 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
currently approved burden of Form N–
PX for portfolios holding equity
securities is 7.2 hours per response, the
current burden estimate for funds
holding no equity securities is 0.17
hours (10 minutes) per response, and
the current burden estimate for fund of
funds is 1 hour per response. Therefore,
the number of aggregate burden hours,
when calculated using the current
number of portfolios, is approximately
47,984 hours.2 We continue to believe
that these estimates for Form N–PX’s
current burden are appropriate. Based
on the Commission’s estimate of 47,984
burden hours and an estimated wage
rate of approximately $368 per hour,3
the total cost to reporting persons of the
hour burden for filing Form N–PX is
approximately $17.66 million.4
The estimated cost burden of Form N–
PX is $1,000 in external costs per
portfolio holding equity securities that
is paid to third-party service providers.
External costs for portfolios holding no
equity securities have previously been
estimated to be zero because portfolios
holding no equity securities generally
have no proxy votes to report and
therefore do not require third-party
service providers to assist with proxy
voting and preparing reports on Form
N–PX. The estimated cost burden of
Form N–PX for fund of funds is
estimated to be $100 per portfolio
because fund of funds generally either
have no proxy votes to report; or if
proxy votes are reported, they are
generally limited in the number of
securities and the number of voting
matters relative to portfolios holding
equity securities. Therefore, the
aggregate cost burden, when calculated
using the current number of portfolios,
is approximately $6.54 million in
external costs.5 We continue to believe
that these estimates for Form N–PX’s
current cost burden are appropriate.
Estimates of average burden hours
and costs are made solely for the
Company Institute, Closed-End Fund Assets and
Net Issuance (Fourth Quarter 2019); Investment
Company Institute, ETF Assets and Net Issuance
(February 2020).
2 (6,392 portfolios that hold equity securities × 7.2
hours per year) + (2,857 portfolios holding no
equity securities × 0.17 hours per year) + (1,476
portfolios holding fund securities x 1 hour per year)
= 47,984 hours.
3 The hourly wage figure for a compliance
attorney is from the Securities Industry and
Financial Markets Association’s Management &
Professional Salaries in the Securities Industry
2013, modified by Commission staff to account for
an 1800-hour work-year and inflation and
multiplied by5.35 to account for bonuses, firm size,
employee benefits and overhead.
4 47,984 hours × $368 per hour = $17,658,112.
5 (6,392 portfolios holding equity securities ×
$1,000 per year) + (2,857 portfolios holding no
equity securities × $0 per year) + (1,476 fund of
funds x $100) = $6,539,600
VerDate Sep<11>2014
18:12 Apr 20, 2021
Jkt 253001
purposes of the Paperwork Reduction
Act and are not derived from a
comprehensive or even representative
survey or study of the costs of
Commission rules and forms.
Compliance with the collection of
information requirements of Form N–PX
is mandatory. Responses to the
collection of information will not be
kept confidential. An agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
>www.reginfo.gov<. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) >www.reginfo.gov/public/
do/PRAMain< and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o Cynthia Roscoe, 100 F Street, NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: April 15, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–08143 Filed 4–20–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91575; File No. SR–BX–
2021–016]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Current
Pilot Program Related to BX Equity 11,
Rule 11890 to the Close of Business on
October 20, 2021
April 15, 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 April 14,
2021, Nasdaq BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) 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 Commission is
publishing this notice to solicit
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00128
Fmt 4703
Sfmt 4703
20779
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 extend the
current pilot program related to BX
Equity 11, Rule 11890 (Clearly
Erroneous Transactions) to the close of
business on October 20, 2021.3
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/bx/rules, 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
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 extend the current pilot
program related to Equity 11, Rule
11890, Clearly Erroneous Transactions,
to the close of business on October 20,
2021. The pilot program is currently due
to expire on April 20, 2021.
On September 10, 2010, the
Commission approved, on a pilot basis,
changes to Equity 11, Rule 11890 that,
among other things: (i) Provided for
uniform treatment of clearly
erroneous execution reviews in multistock events involving twenty or more
securities; and (ii) reduced the ability of
the Exchange to deviate from the
objective standards set forth in the rule.4
In 2013, the Exchange adopted a
provision designed to address the
3 The Exchange recently filed a proposed rule
change to relocate the Rule 11000 Series, including
Rule 11890, into Equity 11. See SR–BX–2021–012
(not yet published). This filing reflects the rule
relocation changes in SR–BX–2021–012.
4 See Securities Exchange Act Release No. 62886
(September 10, 2010), 75 FR 56613 (September 16,
2010) (SR–BX–2010–040).
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Federal Register / Vol. 86, No. 75 / Wednesday, April 21, 2021 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
operation of the Plan.5 Finally, in 2014,
the Exchange adopted two additional
provisions providing that: (i) A series of
transactions in a particular security on
one or more trading days may be viewed
as one event if all such transactions
were effected based on the same
fundamentally incorrect or grossly
misinterpreted issuance information
resulting in a severe valuation error for
all such transactions; and (ii) in the
event of any disruption or malfunction
in the operation of the electronic
communications and trading facilities of
an Exchange, another SRO, or
responsible single plan processor in
connection with the transmittal or
receipt of a trading halt, an Officer,
acting on his or her own motion, shall
nullify any transaction that occurs after
a trading halt has been declared by the
primary listing market for a security and
before such trading halt has officially
ended according to the primary listing
market.6
These changes were originally
scheduled to operate for a pilot period
to coincide with the pilot period for the
Plan to Address Extraordinary Market
Volatility (the ‘‘Limit Up-Limit Down
Plan’’ or ‘‘LULD Plan’’).7 In April 2019,
the Commission approved an
amendment to the LULD Plan for it to
operate on a permanent, rather than
pilot, basis.8 In light of that change, the
Exchange amended Equity 11, Rule
11890 to untie the pilot program’s
effectiveness from that of the LULD Plan
and to extend the pilot’s effectiveness to
the close of business on October 18,
2019.9 Subsequently, the Exchange
amended Rule 11890 to extend the
pilot’s effectiveness to the close of
business on April 20, 2021.10
The Exchange now proposes to amend
Equity 11, Rule 11890 to extend the
pilot’s effectiveness for a further six
months until the close of business on
October 20, 2021. If the pilot period is
not either extended, replaced or
approved as permanent, the prior
versions of paragraphs (a)(2)(C), (c)(1),
(b)(i), and (b)(ii) shall be in effect, and
5 See Securities Exchange Act Release No. 68818
(February 1, 2013), 78 FR 9100 (February 7, 2013)
(SR–BX–2013–010).
6 See Securities Exchange Act Release No. 72434
(June 19, 2014), 79 FR 36110 (June 25, 2014) (SR–
BX–2014–021).
7 See Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498 (June 6, 2012) (the
‘‘Limit Up-Limit Down Release’’).
8 See Securities Exchange Act Release No. 85623
(April 11, 2019), 84 FR 16086 (April 17, 2019)
(approving Eighteenth Amendment to LULD Plan).
9 See Securities Exchange Act Release No. 85613
(April 11, 2019), 84 FR 16077 (April 17, 2019) (SR–
BX–2019–009).
10 See Securities Exchange Act Release No. 90206
(October 15, 2020), 85 FR 67078 (October 21, 2020)
(SR–BX–2020–031).
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18:12 Apr 20, 2021
Jkt 253001
the provisions of paragraphs (g) through
(i) shall be null and void.11 In such an
event, the remaining sections of Rule
11890 would continue to apply to all
transactions executed on the Exchange.
The Exchange understands that the
other national securities exchanges and
Financial Industry Regulatory Authority
(‘‘FINRA’’) will also file similar
proposals to extend their respective
clearly erroneous execution pilot
programs, the substance of which are
identical to Rule 11890.
The Exchange does not propose any
additional changes to Equity 11, Rule
11890. Extending the effectiveness of
Rule 11890 for an additional six months
will provide the Exchange and other
self-regulatory organizations additional
time to consider whether further
amendments to the clearly erroneous
execution rules are appropriate.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
requirements of Section 6(b) of the
Act,12 in general, and Section 6(b)(5) of
the Act,13 in particular, in that it is
designed to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, to promote just and equitable
principles of trade, and, in general, to
protect investors and the public interest
and not to permit unfair discrimination
between customers, issuers, brokers, or
dealers.
The Exchange believes that the
proposed rule change promotes just and
equitable principles of trade in that it
promotes transparency and uniformity
across markets concerning review of
transactions as clearly erroneous. The
Exchange believes that extending the
clearly erroneous execution pilot under
Equity 11, Rule 11890 for an additional
six months would help assure that the
determination of whether a clearly
erroneous trade has occurred will be
based on clear and objective criteria,
and that the resolution of the incident
will occur promptly through a
transparent process. The proposed rule
change would also help assure
consistent results in handling erroneous
trades across the U.S. equities markets,
thus furthering fair and orderly markets,
the protection of investors and the
public interest. Based on the foregoing,
the Exchange believes the amended
clearly erroneous executions rule
should continue to be in effect on a pilot
11 See notes 4–6, supra. The prior versions of
paragraphs (a)(2)(C), (c)(1), (b)(i), and (b)(ii)
generally provided greater discretion to the
Exchange with respect to breaking erroneous trades.
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
basis while the Exchange and other selfregulatory organizations consider
whether further amendments to these
rules are appropriate.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The proposal
would ensure the continued,
uninterrupted operation of harmonized
clearly erroneous execution rules across
the U.S. equities markets while the
Exchange and other self-regulatory
organizations consider whether further
amendments to these rules are
appropriate. The Exchange understands
that the other national securities
exchanges and FINRA will also file
similar proposals to extend their
respective clearly erroneous execution
pilot programs. Thus, the proposed rule
change will help to ensure consistency
across market centers without
implicating any competitive issues.
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
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 14 and Rule 19b–
4(f)(6) thereunder.15
A proposed rule change filed under
Rule 19b–4(f)(6) 16 normally does not
become operative prior to 30 days after
the date of the filing. However, Rule
19b–4(f)(6)(iii) 17 permits the
Commission to designate a shorter time
if such action is consistent with the
protection of investors and the public
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6)(iii).
15 17
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Federal Register / Vol. 86, No. 75 / Wednesday, April 21, 2021 / Notices
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposed
rule change may become operative
immediately upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest, as it will allow the
current clearly erroneous execution
pilot program to continue
uninterrupted, without any changes,
while the Exchange and the other
national securities exchanges consider a
permanent proposal for clearly
erroneous execution reviews. For this
reason, the Commission hereby waives
the 30-day operative delay and
designates the proposed rule change as
operative upon filing.18
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–
BX–2021–016 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–BX–2021–016. 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
18 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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21:28 Apr 20, 2021
Jkt 253001
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–BX–2021–016 and should
be submitted on or before May 12, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–08146 Filed 4–20–21; 8:45 am]
BILLING CODE 8011–01–P
20781
Form 15 (17 CFR 249.323) is a
certification of termination of a class of
security under Section 12(g) or notice of
suspension of duty to file reports
pursuant to Sections 13 and 15(d) of the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.). All information is
provided to the public for review. We
estimate that approximately 1,062
issuers file Form 15 annually and it
takes approximately 1.5 hours per
response to prepare for a total of 1,593
annual burden hours (1.5 hours per
response × 1,062 responses).
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) www.reginfo.gov/public/do/
PRAMain and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o Cynthia Roscoe, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: April 15, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–08140 Filed 4–20–21; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–170, OMB Control No.
3235–0167]
Submission for OMB Review;
Comment Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Form 15
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget this
request for extension of the previously
approved collection of information
discussed below.
19 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00130
Fmt 4703
Sfmt 4703
BILLING CODE 8011–01–P
SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA–2020–0041]
Privacy Act of 1974; Matching Program
AGENCY:
Social Security Administration
(SSA).
Notice of a new matching
program.
ACTION:
In accordance with the
provisions of the Privacy Act, as
amended, this notice announces a new
matching program with the Bureau of
the Fiscal Service (Fiscal Service),
Department of the Treasury (Treasury).
Under this matching program, Fiscal
Service, Treasury will disclose savings
security data to SSA. SSA will use the
data to determine continued eligibility
for Supplemental Security Income (SSI)
applicants and recipients, or the correct
benefit amount for recipients and
deemors who did not report or
SUMMARY:
E:\FR\FM\21APN1.SGM
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]]>Agencies
[Federal Register Volume 86, Number 75 (Wednesday, April 21, 2021)]
[Notices]
[Pages 20779-20781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-08146]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91575; File No. SR-BX-2021-016]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Extend the
Current Pilot Program Related to BX Equity 11, Rule 11890 to the Close
of Business on October 20, 2021
April 15, 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 April 14, 2021, Nasdaq BX, Inc. (``BX'' or ``Exchange'') 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 Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend the current pilot program related
to BX Equity 11, Rule 11890 (Clearly Erroneous Transactions) to the
close of business on October 20, 2021.\3\
---------------------------------------------------------------------------
\3\ The Exchange recently filed a proposed rule change to
relocate the Rule 11000 Series, including Rule 11890, into Equity
11. See SR-BX-2021-012 (not yet published). This filing reflects the
rule relocation changes in SR-BX-2021-012.
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/bx/rules, 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 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 extend the current
pilot program related to Equity 11, Rule 11890, Clearly Erroneous
Transactions, to the close of business on October 20, 2021. The pilot
program is currently due to expire on April 20, 2021.
On September 10, 2010, the Commission approved, on a pilot basis,
changes to Equity 11, Rule 11890 that, among other things: (i) Provided
for uniform treatment of clearly erroneous execution reviews in multi-
stock events involving twenty or more securities; and (ii) reduced the
ability of the Exchange to deviate from the objective standards set
forth in the rule.\4\ In 2013, the Exchange adopted a provision
designed to address the
[[Page 20780]]
operation of the Plan.\5\ Finally, in 2014, the Exchange adopted two
additional provisions providing that: (i) A series of transactions in a
particular security on one or more trading days may be viewed as one
event if all such transactions were effected based on the same
fundamentally incorrect or grossly misinterpreted issuance information
resulting in a severe valuation error for all such transactions; and
(ii) in the event of any disruption or malfunction in the operation of
the electronic communications and trading facilities of an Exchange,
another SRO, or responsible single plan processor in connection with
the transmittal or receipt of a trading halt, an Officer, acting on his
or her own motion, shall nullify any transaction that occurs after a
trading halt has been declared by the primary listing market for a
security and before such trading halt has officially ended according to
the primary listing market.\6\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 62886 (September 10,
2010), 75 FR 56613 (September 16, 2010) (SR-BX-2010-040).
\5\ See Securities Exchange Act Release No. 68818 (February 1,
2013), 78 FR 9100 (February 7, 2013) (SR-BX-2013-010).
\6\ See Securities Exchange Act Release No. 72434 (June 19,
2014), 79 FR 36110 (June 25, 2014) (SR-BX-2014-021).
---------------------------------------------------------------------------
These changes were originally scheduled to operate for a pilot
period to coincide with the pilot period for the Plan to Address
Extraordinary Market Volatility (the ``Limit Up-Limit Down Plan'' or
``LULD Plan'').\7\ In April 2019, the Commission approved an amendment
to the LULD Plan for it to operate on a permanent, rather than pilot,
basis.\8\ In light of that change, the Exchange amended Equity 11, Rule
11890 to untie the pilot program's effectiveness from that of the LULD
Plan and to extend the pilot's effectiveness to the close of business
on October 18, 2019.\9\ Subsequently, the Exchange amended Rule 11890
to extend the pilot's effectiveness to the close of business on April
20, 2021.\10\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012) (the ``Limit Up-Limit Down
Release'').
\8\ See Securities Exchange Act Release No. 85623 (April 11,
2019), 84 FR 16086 (April 17, 2019) (approving Eighteenth Amendment
to LULD Plan).
\9\ See Securities Exchange Act Release No. 85613 (April 11,
2019), 84 FR 16077 (April 17, 2019) (SR-BX-2019-009).
\10\ See Securities Exchange Act Release No. 90206 (October 15,
2020), 85 FR 67078 (October 21, 2020) (SR-BX-2020-031).
---------------------------------------------------------------------------
The Exchange now proposes to amend Equity 11, Rule 11890 to extend
the pilot's effectiveness for a further six months until the close of
business on October 20, 2021. If the pilot period is not either
extended, replaced or approved as permanent, the prior versions of
paragraphs (a)(2)(C), (c)(1), (b)(i), and (b)(ii) shall be in effect,
and the provisions of paragraphs (g) through (i) shall be null and
void.\11\ In such an event, the remaining sections of Rule 11890 would
continue to apply to all transactions executed on the Exchange. The
Exchange understands that the other national securities exchanges and
Financial Industry Regulatory Authority (``FINRA'') will also file
similar proposals to extend their respective clearly erroneous
execution pilot programs, the substance of which are identical to Rule
11890.
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\11\ See notes 4-6, supra. The prior versions of paragraphs
(a)(2)(C), (c)(1), (b)(i), and (b)(ii) generally provided greater
discretion to the Exchange with respect to breaking erroneous
trades.
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The Exchange does not propose any additional changes to Equity 11,
Rule 11890. Extending the effectiveness of Rule 11890 for an additional
six months will provide the Exchange and other self-regulatory
organizations additional time to consider whether further amendments to
the clearly erroneous execution rules are appropriate.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the requirements of Section 6(b) of the Act,\12\ in general, and
Section 6(b)(5) of the Act,\13\ in particular, in that it is designed
to remove impediments to and perfect the mechanism of a free and open
market and a national market system, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest and not to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change promotes just
and equitable principles of trade in that it promotes transparency and
uniformity across markets concerning review of transactions as clearly
erroneous. The Exchange believes that extending the clearly erroneous
execution pilot under Equity 11, Rule 11890 for an additional six
months would help assure that the determination of whether a clearly
erroneous trade has occurred will be based on clear and objective
criteria, and that the resolution of the incident will occur promptly
through a transparent process. The proposed rule change would also help
assure consistent results in handling erroneous trades across the U.S.
equities markets, thus furthering fair and orderly markets, the
protection of investors and the public interest. Based on the
foregoing, the Exchange believes the amended clearly erroneous
executions rule should continue to be in effect on a pilot basis while
the Exchange and other self-regulatory organizations consider whether
further amendments to these rules are appropriate.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposal would ensure
the continued, uninterrupted operation of harmonized clearly erroneous
execution rules across the U.S. equities markets while the Exchange and
other self-regulatory organizations consider whether further amendments
to these rules are appropriate. The Exchange understands that the other
national securities exchanges and FINRA will also file similar
proposals to extend their respective clearly erroneous execution pilot
programs. Thus, the proposed rule change will help to ensure
consistency across market centers without implicating any competitive
issues.
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
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-
4(f)(6) thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \17\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public
[[Page 20781]]
interest. The Exchange has asked the Commission to waive the 30-day
operative delay so that the proposed rule change may become operative
immediately upon filing. The Commission believes that waiving the 30-
day operative delay is consistent with the protection of investors and
the public interest, as it will allow the current clearly erroneous
execution pilot program to continue uninterrupted, without any changes,
while the Exchange and the other national securities exchanges consider
a permanent proposal for clearly erroneous execution reviews. For this
reason, the Commission hereby waives the 30-day operative delay and
designates the proposed rule change as operative upon filing.\18\
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\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6)(iii).
\18\ 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-BX-2021-016 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-BX-2021-016. 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-BX-2021-016 and should be submitted on
or before May 12, 2021.
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\19\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-08146 Filed 4-20-21; 8:45 am]
BILLING CODE 8011-01-P
