Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Exchange Rule 515, Execution of Orders and Quotes; Rule 516, Order Types Defined; Rule 517, Quote Types Defined; Rule 605, Market Maker Orders; and Rule 612, Aggregate Risk Manager To Eliminate Fill-or-Kill (FOK) Orders and FOK eQuotes, 24117-24119 [2021-09431]
Download as PDF
Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Notices
interest.25 Accordingly, the Commission
hereby waives the 30-day operative
delay and designates the proposal
operative upon filing.26
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
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–
PEARL–2021–18 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–PEARL–2021–18. 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
25 As noted above by the Exchange, this proposal
is an extension of temporary relief provided in SR–
PEARL–2020–36 where the Exchange also
requested and the Commission granted a waiver of
the 30-day operative delay. See SR–PEARL–2020–
36, 86 FR at 635–36.
26 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule change’s impact on efficiency,
competition, and capital formation. See 15 U.S.C.
78c(f).
VerDate Sep<11>2014
23:06 May 04, 2021
Jkt 253001
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–PEARL–2021–18 and
should be submitted on or before May
26, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–09439 Filed 5–4–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91701; File No. SR–
EMERALD–2021–14]
Self-Regulatory Organizations; MIAX
Emerald, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Exchange
Rule 515, Execution of Orders and
Quotes; Rule 516, Order Types
Defined; Rule 517, Quote Types
Defined; Rule 605, Market Maker
Orders; and Rule 612, Aggregate Risk
Manager To Eliminate Fill-or-Kill (FOK)
Orders and FOK eQuotes
April 29, 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 19,
2021, MIAX Emerald, LLC (‘‘MIAX
Emerald’’ 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.
27 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
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24117
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Exchange Rule 515, Execution of Orders
and Quotes; Rule 516, Order Types
Defined; Rule 517 Quote Types Defined;
Rule 605, Market Maker Orders; and
Rule 612 Aggregate Risk Manager to
eliminate Fill-or-Kill (FOK) Orders and
FOK eQuotes from the rulebook and to
delete references to same.
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/emerald at MIAX Emerald’s
principal office, 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 its
rules to eliminate Fill-or-Kill Orders and
Fill-or-Kill eQuotes. A Fill-or-Kill
(‘‘FOK’’) Order is described by the
Exchange as a limit order that is to be
executed in its entirety at a single price
as soon as it is received and, if not so
executed is cancelled.3 A Fill-or-Kill
(‘‘FOK’’) eQuote is described by the
Exchange as an eQuote submitted by a
Market Maker 4 that must be matched
with another quote or order for an
execution in its entirety at a single price
upon receipt into the System 5 or will be
immediately cancelled.6
Specifically, the Exchange now
proposes to amend paragraph (c)(1) of
Exchange Rule 515 to remove the
3 See
Exchange Rule 516(b)(2).
term ‘‘Market Makers’’ refers to ‘‘Lead
Market Makers’’, ‘‘Primary Lead Market Makers’’
and ‘‘Registered Market Makers’’ collectively. See
Exchange Rule 100.
5 The term ‘‘System’’ means the automated
trading system used by the Exchange for the trading
of securities. See Exchange Rule 100.
6 See Exchange Rule 517(a)(2)(iv).
4 The
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24118
Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Notices
reference regarding Fill-or-Kill Orders.
The Exchange proposes to remove the
text in paragraph (f) in its entirety, but
to leave paragraph (f) in place and mark
it as reserved for future use. The
Exchange proposes to remove
subparagraph (2) of paragraph (b) of
Exchange Rule 516 in its entirety, and
to renumber current subparagraph (3) to
new subparagraph (2). The Exchange
proposes to remove subparagraph (iv) of
paragraph (a)(2) from Rule 517 in its
entirety, and to renumber current
subparagraph (v) to new subparagraph
(iv). Additionally, the Exchange
proposes to remove subparagraph (4) of
paragraph (d) from Rule 517 in its
entirety, and to renumber current
subparagraph (5) to new subparagraph
(4). The Exchange proposes to amend
paragraph (a) of Exchange Rule 605 to
remove a reference to Fill-or-Kill
Orders. The Exchange proposes to
amend subparagraph (c) of Policy .02 of
Exchange Rule 612 to remove a
reference to FOK eQuotes and to make
minor non substantive edits to the rule
text.
MIAX Emerald is an affiliate exchange
of the MIAX Options Exchange and
offers similar functionality and similar
order types as MIAX Options. MIAX
Options Exchange Rule 516 states,
It should be noted that some of the order
types defined below are valid only
during certain portions of the trading
day (e.g., Opening Orders) or during
certain events (e.g., Auction or Cancel
Orders). If a Member submits an order
type during a time period when the
order type is not valid, the System will
reject the order. It should also be noted
that not all of the order types listed and
described in this rule will be initially
available for use on the Exchange. The
Exchange will issue a Regulatory
Circular listing which order types,
among the order types set forth below,
are available. Additional Regulatory
Circulars will be issued as additional
order types, among those order types set
forth below, become available for use on
the Exchange. Regulatory Circulars will
also be issued when an order type that
had been in usage on the Exchange will
no longer be available for use.
MIAX Options recently issued
Regulatory Circulars indicating that
FOK Orders and FOK eQuotes will no
longer be available for use on the MIAX
Options Exchange.7 MIAX Emerald
7 See MIAX Options Regulatory Circular 2021–20,
Fill-or-Kill Orders will no longer be supported on
the MIAX Options Exchange (April 8, 2021)
available at https://www.miaxoptions.com/sites/
default/files/circular-files/MIAX_Options_RC_
2021_20.pdf; and MIAX Options Regulatory
Circular 2021–21, Fill-or-Kill eQuotes will no
longer be supported on the MIAX Options Exchange
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23:06 May 04, 2021
Jkt 253001
proposes to make both FOK Orders and
FOK eQuotes unavailable on the MIAX
Emerald Exchange so as to avoid
confusion among Members 8 that may be
Members of both MIAX Options and
MIAX Emerald.9
Emerald and MIAX Options may have a
number of common Members, and
where feasible the Exchange intends to
provide consistency between MIAX
Options and MIAX Emerald so as to
avoid confusion among Members.
2. Statutory Basis
The Exchange believes that its
proposed rule change is consistent with
Section 6(b) of the Act 10 in general, and
furthers the objectives of Section 6(b)(5)
of the Act 11 in particular, in that it is
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
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
The Exchange believes that its
proposal promotes just and equitable
principles of trade and removes
impediments to and perfects the
mechanisms of a free and open market
and a national market system and, in
general, protects investors and the
public interest by removing an order
type from the Exchange that is not
widely used by investors. Removing an
infrequently used order type from the
Exchange’s rulebook benefits investors
by simplifying the Exchange’s rulebook.
Additionally, the Exchange believes
that its proposal promotes just and
equitable principles of trade and
removes impediments to and perfects
the mechanism of a free and open
market and a national market system
and, in general, protects investors and
the public interest by aligning
functionality available on the Exchange
to that of its affiliate exchange.
Specifically, the Exchange believes that
although MIAX Emerald rules may, in
certain instances, intentionally differ
from MIAX Options rules, the proposed
change will promote uniformity with
the MIAX Options Exchange and allow
MIAX Emerald to provide functionality
similar to MIAX Options. MIAX
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
Exchange believes the proposed rule
change will not impose any burden on
intra-market competition because the
rules of the Exchange apply equally to
all Members. Members may still receive
an immediate execution on the
Exchange by using an Immediate-orCancel Order.12
The Exchange does not believe that
the proposed rule change will impose
any burden on inter-market competition
as the Exchange’s proposal is not
designed to address any competitive
issues. The Exchange’s proposal
removes an infrequently used order type
from the Exchange and aligns its
functionality to its affiliate Exchange,
MIAX Options. Additionally, the
Exchange believes the proposed rule
change will not impose any burden on
inter-market competition as option
exchanges offer a variety of order types
and not every option exchange offers
every order type.13
(April 9, 2021) available at: https://
www.miaxoptions.com/sites/default/files/circularfiles/MIAX_Options_RC_2021_21.pdf.
8 The term ‘‘Member’’ means an individual or
organization approved to exercise the trading rights
associated with a Trading Permit. Members are
deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
9 The Exchange notes that FOK Orders and FOK
eQuotes are not available on the Exchange’s other
affiliate exchange, MIAX Pearl Options Exchange.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00205
Fmt 4703
Sfmt 4703
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
12 An Immediate-or-Cancel Order is an order that
is to be executed in whole or in part upon receipt.
Any portion not so executed is cancelled. An
Immediate-or-Cancel Order is not valid during the
Opening Process described in MIAX Emerald Rule
503. See Exchange Rule 516(c).
13 BOX Options Exchange supports a Fill and Kill
(FAK) order type but not a Fill or Kill order type.
See BOX Exchange Rule 7110. Nasdaq Phlx
supports an All-or-None Order but not a Fill or Kill
order type. See Nasdaq Phlx Options 3, Section
7(b)(5).
E:\FR\FM\05MYN1.SGM
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Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Notices
19(b)(3)(A) of the Act 14 and Rule 19b–
4(f)(6) thereunder.15
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act normally does not become operative
for 30 days after the date of its filing.
However, Rule 19b–4(f)(6)(iii) 16 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 requested
that the Commission waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange asserted that the
waiver would allow the Exchange to
harmonize its functionality to that of
MIAX Options Exchange and thus
reduce the potential for confusion
among its Members. The Exchange also
stated that it does not believe that
removal of the FOK order type will
impact users as this order type is
infrequently used on the Exchange. For
these reasons, the Commission believes
that waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest, and
will allow the Exchange to immediately
align its functionality with MIAX
Options Exchange and simplify its
rulebook to remove an infrequently used
order type. Accordingly, the
Commission hereby waives the
operative delay and designates the
proposed rule change operative upon
filing.17
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
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
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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)(iii).
17 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).
15 17
VerDate Sep<11>2014
23:06 May 04, 2021
Jkt 253001
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–09431 Filed 5–4–21; 8:45 am]
Electronic Comments
BILLING CODE 8011–01–P
• 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–
EMERALD–2021–14 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–EMERALD–2021–14. 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–EMERALD–2021–14 and
should be submitted on or before May
26, 2021.
PO 00000
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91714; File No. SR–BOX–
2021–07]
Self-Regulatory Organizations; BOX
Exchange LLC; Notice of Filing of
Proposed Rule Change To Adopt BOX
Rule 7670 To Establish a Virtual
Trading Floor on BOX
April 29, 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 16,
2021, BOX Exchange LLC (‘‘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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to establish
BOX Rule 7670 to adopt a Virtual
Trading Floor on BOX. The text of the
proposed rule change is available from
the principal office of the Exchange, at
the Commission’s Public Reference
Room and also on the Exchange’s
internet website at https://
boxoptions.com.
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 these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Frm 00206
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24119
Sfmt 4703
E:\FR\FM\05MYN1.SGM
05MYN1
Agencies
[Federal Register Volume 86, Number 85 (Wednesday, May 5, 2021)]
[Notices]
[Pages 24117-24119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09431]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91701; File No. SR-EMERALD-2021-14]
Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Exchange Rule 515, Execution of Orders and Quotes; Rule 516, Order
Types Defined; Rule 517, Quote Types Defined; Rule 605, Market Maker
Orders; and Rule 612, Aggregate Risk Manager To Eliminate Fill-or-Kill
(FOK) Orders and FOK eQuotes
April 29, 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 19, 2021, MIAX Emerald, LLC (``MIAX Emerald'' 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 amend Exchange Rule 515, Execution of
Orders and Quotes; Rule 516, Order Types Defined; Rule 517 Quote Types
Defined; Rule 605, Market Maker Orders; and Rule 612 Aggregate Risk
Manager to eliminate Fill-or-Kill (FOK) Orders and FOK eQuotes from the
rulebook and to delete references to same.
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxoptions.com/rule-filings/emerald at MIAX
Emerald's principal office, 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 its rules to eliminate Fill-or-Kill
Orders and Fill-or-Kill eQuotes. A Fill-or-Kill (``FOK'') Order is
described by the Exchange as a limit order that is to be executed in
its entirety at a single price as soon as it is received and, if not so
executed is cancelled.\3\ A Fill-or-Kill (``FOK'') eQuote is described
by the Exchange as an eQuote submitted by a Market Maker \4\ that must
be matched with another quote or order for an execution in its entirety
at a single price upon receipt into the System \5\ or will be
immediately cancelled.\6\
---------------------------------------------------------------------------
\3\ See Exchange Rule 516(b)(2).
\4\ The term ``Market Makers'' refers to ``Lead Market Makers'',
``Primary Lead Market Makers'' and ``Registered Market Makers''
collectively. See Exchange Rule 100.
\5\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
\6\ See Exchange Rule 517(a)(2)(iv).
---------------------------------------------------------------------------
Specifically, the Exchange now proposes to amend paragraph (c)(1)
of Exchange Rule 515 to remove the
[[Page 24118]]
reference regarding Fill-or-Kill Orders. The Exchange proposes to
remove the text in paragraph (f) in its entirety, but to leave
paragraph (f) in place and mark it as reserved for future use. The
Exchange proposes to remove subparagraph (2) of paragraph (b) of
Exchange Rule 516 in its entirety, and to renumber current subparagraph
(3) to new subparagraph (2). The Exchange proposes to remove
subparagraph (iv) of paragraph (a)(2) from Rule 517 in its entirety,
and to renumber current subparagraph (v) to new subparagraph (iv).
Additionally, the Exchange proposes to remove subparagraph (4) of
paragraph (d) from Rule 517 in its entirety, and to renumber current
subparagraph (5) to new subparagraph (4). The Exchange proposes to
amend paragraph (a) of Exchange Rule 605 to remove a reference to Fill-
or-Kill Orders. The Exchange proposes to amend subparagraph (c) of
Policy .02 of Exchange Rule 612 to remove a reference to FOK eQuotes
and to make minor non substantive edits to the rule text.
MIAX Emerald is an affiliate exchange of the MIAX Options Exchange
and offers similar functionality and similar order types as MIAX
Options. MIAX Options Exchange Rule 516 states,
It should be noted that some of the order types defined below are valid
only during certain portions of the trading day (e.g., Opening Orders)
or during certain events (e.g., Auction or Cancel Orders). If a Member
submits an order type during a time period when the order type is not
valid, the System will reject the order. It should also be noted that
not all of the order types listed and described in this rule will be
initially available for use on the Exchange. The Exchange will issue a
Regulatory Circular listing which order types, among the order types
set forth below, are available. Additional Regulatory Circulars will be
issued as additional order types, among those order types set forth
below, become available for use on the Exchange. Regulatory Circulars
will also be issued when an order type that had been in usage on the
Exchange will no longer be available for use.
MIAX Options recently issued Regulatory Circulars indicating that
FOK Orders and FOK eQuotes will no longer be available for use on the
MIAX Options Exchange.\7\ MIAX Emerald proposes to make both FOK Orders
and FOK eQuotes unavailable on the MIAX Emerald Exchange so as to avoid
confusion among Members \8\ that may be Members of both MIAX Options
and MIAX Emerald.\9\
---------------------------------------------------------------------------
\7\ See MIAX Options Regulatory Circular 2021-20, Fill-or-Kill
Orders will no longer be supported on the MIAX Options Exchange
(April 8, 2021) available at https://www.miaxoptions.com/sites/default/files/circular-files/MIAX_Options_RC_2021_20.pdf; and MIAX
Options Regulatory Circular 2021-21, Fill-or-Kill eQuotes will no
longer be supported on the MIAX Options Exchange (April 9, 2021)
available at: https://www.miaxoptions.com/sites/default/files/circular-files/MIAX_Options_RC_2021_21.pdf.
\8\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
\9\ The Exchange notes that FOK Orders and FOK eQuotes are not
available on the Exchange's other affiliate exchange, MIAX Pearl
Options Exchange.
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2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) of the Act \10\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \11\ in particular, in that it
is 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 mechanisms of a free and open market and a national market
system and, in general, to protect investors and the public interest.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that its proposal promotes just and equitable
principles of trade and removes impediments to and perfects the
mechanisms of a free and open market and a national market system and,
in general, protects investors and the public interest by removing an
order type from the Exchange that is not widely used by investors.
Removing an infrequently used order type from the Exchange's rulebook
benefits investors by simplifying the Exchange's rulebook.
Additionally, the Exchange believes that its proposal promotes just
and equitable principles of trade and removes impediments to and
perfects the mechanism of a free and open market and a national market
system and, in general, protects investors and the public interest by
aligning functionality available on the Exchange to that of its
affiliate exchange. Specifically, the Exchange believes that although
MIAX Emerald rules may, in certain instances, intentionally differ from
MIAX Options rules, the proposed change will promote uniformity with
the MIAX Options Exchange and allow MIAX Emerald to provide
functionality similar to MIAX Options. MIAX Emerald and MIAX Options
may have a number of common Members, and where feasible the Exchange
intends to provide consistency between MIAX Options and MIAX Emerald so
as to avoid confusion among Members.
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 Exchange believes the
proposed rule change will not impose any burden on intra-market
competition because the rules of the Exchange apply equally to all
Members. Members may still receive an immediate execution on the
Exchange by using an Immediate-or-Cancel Order.\12\
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\12\ An Immediate-or-Cancel Order is an order that is to be
executed in whole or in part upon receipt. Any portion not so
executed is cancelled. An Immediate-or-Cancel Order is not valid
during the Opening Process described in MIAX Emerald Rule 503. See
Exchange Rule 516(c).
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The Exchange does not believe that the proposed rule change will
impose any burden on inter-market competition as the Exchange's
proposal is not designed to address any competitive issues. The
Exchange's proposal removes an infrequently used order type from the
Exchange and aligns its functionality to its affiliate Exchange, MIAX
Options. Additionally, the Exchange believes the proposed rule change
will not impose any burden on inter-market competition as option
exchanges offer a variety of order types and not every option exchange
offers every order type.\13\
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\13\ BOX Options Exchange supports a Fill and Kill (FAK) order
type but not a Fill or Kill order type. See BOX Exchange Rule 7110.
Nasdaq Phlx supports an All-or-None Order but not a Fill or Kill
order type. See Nasdaq Phlx Options 3, Section 7(b)(5).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section
[[Page 24119]]
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)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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 normally does not become operative for 30 days after the date of
its filing. However, Rule 19b-4(f)(6)(iii) \16\ 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
requested that the Commission waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
asserted that the waiver would allow the Exchange to harmonize its
functionality to that of MIAX Options Exchange and thus reduce the
potential for confusion among its Members. The Exchange also stated
that it does not believe that removal of the FOK order type will impact
users as this order type is infrequently used on the Exchange. For
these reasons, the Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest, and will allow the Exchange to immediately align its
functionality with MIAX Options Exchange and simplify its rulebook to
remove an infrequently used order type. Accordingly, the Commission
hereby waives the operative delay and designates the proposed rule
change operative upon filing.\17\
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\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ 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-EMERALD-2021-14 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-EMERALD-2021-14. 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-EMERALD-2021-14 and should be submitted
on or before May 26, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-09431 Filed 5-4-21; 8:45 am]
BILLING CODE 8011-01-P