Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay the Implementation of BX's Request for PRISM, 27003-27005 [2021-10386]
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Federal Register / Vol. 86, No. 94 / Tuesday, May 18, 2021 / Notices
what is required by statute, the impact
of the proposed changes on the
Members and Limited Members would
be minimal. As discussed above, NSCC
believes that the proposed changes to
the notice provisions are removing
unnecessary and impractical timing
requirements for notices, and Members
and Limited Members would continue
to receive adequate notice under the
rule change process and continue to be
treated equally with respect to such
notices. As such, NSCC believes the
proposed rule changes would not have
any impact on competition.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants, or Others
NSCC has not received or solicited
any written comments relating to this
proposal. NSCC will notify the
Commission of any written comments
received by NSCC.
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) 21 of the Act and paragraph
(f) 22 of Rule 19b–4 thereunder. At any
time within 60 days of the filing of the
proposed rule change, the Commission
summarily may temporarily suspend
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
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–
NSCC–2021–006 on the subject line.
jbell on DSKJLSW7X2PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
21 15
22 17
U.S.C 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Sep<11>2014
16:40 May 17, 2021
All submissions should refer to File
Number SR–NSCC–2021–006. 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 NSCC and on DTCC’s website
(https://dtcc.com/legal/sec-rulefilings.aspx). 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–NSCC–
2021–006 and should be submitted on
or before June 8, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–10392 Filed 5–17–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91864; File No. SR–BX–
2021–022]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Delay the
Implementation of BX’s Request for
PRISM
May 12, 2021.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
23 17
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PO 00000
CFR 200.30–3(a)(12).
Frm 00112
Fmt 4703
Sfmt 4703
27003
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 4,
2021, Nasdaq BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to delay the
implementation of an amendment to
Options 3, Section 7(d)(1)(A) relating to
‘‘Financial Information eXchange’’ or
‘‘FIX’’ in connection with offering BX
Participants the ability to utilize FIX to
submit orders to its Price Improvement
Auction (‘‘PRISM’’) mechanism.
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
BX received approval 3 to amend
Options 3, Section 7(d)(1)(A), relating to
FIX, to offer BX Participants the ability
to utilize FIX to submit orders to its
PRISM mechanism. BX’s amendment
permitted it to offer Participants a
manner in which to send messages
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 91124
(February 12, 2021), 86 FR 10363 (February 19,
2021) (SR–BX–2020–033) (Order Granting Approval
of a Proposed Rule Change To Utilize the FIX
Protocol To Submit Orders to BX’s Price
Improvement Auction Mechanism) (‘‘Approval
Order’’).
2 17
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27004
Federal Register / Vol. 86, No. 94 / Tuesday, May 18, 2021 / Notices
through FIX, to other BX Participants,
for the specific purpose of requesting
another BX Participant submit an
‘‘Initiating Order’’ 4 along with the
sender’s PRISM Order 5 into the PRISM
mechanism 6 for execution pursuant to
Options 3, Section 13.
Specifically, the amendment
expanded the capabilities of the FIX
protocol to allow a BX Participant
(sender) to utilize FIX to send a message
to other BX Participants (responders)
with an order the sender represents as
agent (‘‘PRISM Order’’) on behalf of a
Public Customer, broker dealer or other
entity requesting the responders provide
a contra-side Initiating Order (a
‘‘response’’) and begin a PRISM auction
(collectively a ‘‘Request for PRISM’’).7 If
a BX Participant desires to respond to
the request, the BX Participant adds an
Initiating Order to the sender’s PRISM
Order and submits the paired order
directly into PRISM, through FIX, for
processing in accordance with Options
3, Section 13.8
The Exchange intended to begin
implementation of the proposed rule
change by June 30, 2021.9 At this time,
the Exchange proposes to delay the
implementation so that it would begin
implementation prior to November 1,
2021. The Exchange will issue an
Options Trader Alert to Participants
with the date of implementation.
jbell on DSKJLSW7X2PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal 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
promote just and equitable principles of
4 An Initiating Order is an order executed against
principal interest or against any other order it
represents as agent. See Options 3, Section 13.
5 A PRISM Order is an order submitted by a BX
Participant that it represents as agent on behalf of
a Public Customer, broker dealer, or any other
entity, electronically, for execution. See Options 3,
Section 13.
6 This proposal does not amend the PRISM rule
within Options 3, Section 13 in connection with
offering Participants the ability to submit a Request
for PRISM through FIX.
7 The Request for PRISM, if accepted and
submitted into PRISM, would become the ‘‘PRISM
Order’’ pursuant to Options 3, Section 13.
8 BX Participants may elect to ‘‘opt in’’ to receive
Requests for PRISM. BX Participants that do not
elect to ‘‘opt in’’ will not receive such requests.
Once a BX Participant elects to receive Requests for
PRISM, they would receive all requests from any
BX Participant submitting a Request for PRISM. The
BX Participant cannot elect to only receive requests
from certain Participants and the sender may not
elect to send the request to a select group of BX
Participants.
9 See Approval Order page 10364, ‘‘The Exchange
intends to begin implementation of the proposed
rule change by June 30, 2021.’’
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
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16:40 May 17, 2021
Jkt 253001
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest, by
delaying the implementation of its
amendment to Options 3, Section
7(d)(1)(A) to allow the Exchange
additional time to develop and test this
functionality. The Exchange believes
that additional testing will ensure a
successful launch of the functionality.
to determine whether the proposed rule
should be approved or disapproved.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange’s proposal to delay the
adoption of the amendment to Options
3, Section 7(d)(1)(A) does not impose an
undue burden on competition. Delaying
the implementation of the functionality
will allow the Exchange additional time
to develop and test the functionality.
Electronic Comments
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.
All submissions should refer to File
Number SR–BX–2021–022. 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–2021–022 and should
be submitted on or before June 8, 2021.
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)(iii) of the Act 12 and
subparagraph (f)(6) of Rule 19b–4
thereunder.13
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
12 15
U.S.C. 78s(b)(3)(A)(iii).
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.
13 17
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
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:
• 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–2021–022 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.
E:\FR\FM\18MYN1.SGM
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Federal Register / Vol. 86, No. 94 / Tuesday, May 18, 2021 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–10386 Filed 5–17–21; 8:45 am]
BILLING CODE 8011–01–P
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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91876; File No. SR–FINRA–
2021–009]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a
Proposed Rule Change To Adopt a
Supplemental Liquidity Schedule, and
Instructions Thereto, Pursuant to
FINRA Rule 4524 (Supplemental
FOCUS Information)
May 12, 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 30,
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, II,
and III below, which Items have been
prepared by FINRA. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to adopt a
Supplemental Liquidity Schedule, and
Instructions thereto, pursuant to FINRA
Rule 4524 (Supplemental FOCUS
Information).
The text of the proposed rule change
is available on FINRA’s website at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
jbell on DSKJLSW7X2PROD with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA 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. FINRA has prepared
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
16:40 May 17, 2021
Jkt 253001
FINRA Rule 4524 provides in part
that, as a supplement to filing FOCUS
Reports required pursuant to SEA Rule
17a–5 3 and FINRA Rule 2010, each
member, as FINRA shall designate, shall
file such additional financial or
operational schedules or reports as
FINRA may deem necessary or
appropriate for the protection of
investors or in the public interest.
Pursuant to FINRA Rule 4524, FINRA is
proposing to adopt a Supplemental
Liquidity Schedule (‘‘SLS’’), and
Instructions thereto (the
‘‘Instructions’’).4 The proposed SLS,
which would be filed as a supplement
to the FOCUS Report, is tailored to
apply only to members with the largest
customer and counterparty exposures,
as discussed further below. The SLS is
designed to improve FINRA’s ability to
monitor for events that signal an adverse
change in the liquidity risk of the
members that would be subject to the
requirement.
Effective monitoring of liquidity and
funding risks is an essential element of
members’ financial responsibility and
an ongoing focus for FINRA’s financial
supervision programs. Liquidity and
funding stress was a significant factor in
the financial crisis of 2008.5 Since that
time, FINRA has looked closely at
members’ liquidity and funding risk
management practices.6 Regulatory
3 17 CFR 240.17a–5 (hereinafter cited as SEA
‘‘Rule 17a–5’’). SEA Rule 17a–5 governs financial
and operational reporting by brokers and dealers.
Members are required to file with FINRA, through
the eFOCUS System, reports concerning their
financial and operational status using SEC Form X–
17A–5 (the ‘‘FOCUS Report’’). See, e.g., Information
Notice, November 23, 2020 (2021 and First Quarter
of 2022 Report Filing Due Dates); Regulatory Notice
18–38 (November 2018) (Amendments to the SEC’s
Financial Reporting Requirements—eFOCUS
System Updates and Annual Audit Requirements).
‘‘FOCUS’’ stands for Financial and Operational
Combined Uniform Single.
4 The proposed SLS and Instructions are included
as Exhibit 3 to this rule filing.
5 See, e.g., Final Report of the National
Commission on the Causes of the Financial and
Economic Crisis in the United States (January
2011), available at: <https://fraser.stlouisfed.org/
title/financial-crisis-inquiry-report-5034>.
6 See Regulatory Notice 10–57 (November 2010)
(Risk Management) and Regulatory Notice 15–33
(September 2015) (Liquidity Risk). However, even
prior to the financial crisis, FINRA noted the
importance of risk management practices. See, e.g.,
Notice to Members 99–92 (November 1999) (Risk
Management Practices) (setting forth a joint
PO 00000
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27005
Notice 10–57 expressed FINRA’s
expectation that members develop and
maintain robust funding and liquidity
risk management practices and
discussed results of examinations that
FINRA had conducted of the practices
of selected members. In addition,
Regulatory Notice 15–33 provided
guidance on liquidity risk management
practices and described FINRA’s review
of policies and practices at selected
members related to managing liquidity
needs in a stressed environment. FINRA
believes that the proposed SLS is a
logical complement to these ongoing
priorities and guidance that FINRA has
communicated to members and would
provide essential information about
members’ sources and uses of liquidity
to enable FINRA to better understand
their liquidity profile. FINRA notes that
events in connection with market
volatility and other stress stemming
from the COVID–19 pandemic,7 and
events such as the extreme price
volatility of certain stocks in January
2021,8 have reinforced the importance
of effective liquidity risk monitoring. As
such, FINRA believes that the proposed
SLS is necessary to enhance its ongoing
monitoring of members’ liquidity risk
and to have additional information that
can be used to assess the impact of
stress events on a member’s liquidity.
Members that would be subject to the
SLS requirement would provide
detailed reporting, using the SLS, as to
their:
• Reverse repurchase and repurchase
agreements;
• securities borrowed and securities
loaned;
• non-cash reverse repurchase and
securities borrowed transactions;
• non-cash repurchase and securities
loaned transactions;
• bank loan and other committed and
uncommitted credit facilities;
• total available collateral in the
member’s custody;
• margin and non-purpose loans;
statement by the SEC, NASD and NYSE on brokerdealer risk management practices). FINRA has also
discussed liquidity risk in its Annual Regulatory
and Examination Priorities Letters. See, e.g., 2019
Annual Risk Monitoring and Examination Priorities
Letter, available at: <finra.org>.
7 See, e.g., S.P. Kothari et al., U.S. Credit Markets:
Interconnectedness and the Effects of the COVID–
19 Economic Shock (October 2020) (report of the
SEC Division of Economic and Risk Analysis
regarding market stress during the COVID–19 shock
of March 2020), available at: <https://www.sec.gov/
files/US-Credit-Markets_COVID-19_Report.pdf>.
8 See Acting Chair Allison Herren Lee,
Commissioners Hester M. Peirce, Elad L. Roisman,
and Caroline A. Crenshaw, Public Statement
Regarding Recent Market Volatility (January 29,
2021), available at: <https://www.sec.gov/news/
public-statement/joint-statement-market-volatility2021-01-29>.
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]]>Agencies
[Federal Register Volume 86, Number 94 (Tuesday, May 18, 2021)]
[Notices]
[Pages 27003-27005]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10386]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91864; File No. SR-BX-2021-022]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Delay the
Implementation of BX's Request for PRISM
May 12, 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 May 4, 2021, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed with the
Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I, II, and III, 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 delay the implementation of an amendment
to Options 3, Section 7(d)(1)(A) relating to ``Financial Information
eXchange'' or ``FIX'' in connection with offering BX Participants the
ability to utilize FIX to submit orders to its Price Improvement
Auction (``PRISM'') mechanism.
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
BX received approval \3\ to amend Options 3, Section 7(d)(1)(A),
relating to FIX, to offer BX Participants the ability to utilize FIX to
submit orders to its PRISM mechanism. BX's amendment permitted it to
offer Participants a manner in which to send messages
[[Page 27004]]
through FIX, to other BX Participants, for the specific purpose of
requesting another BX Participant submit an ``Initiating Order'' \4\
along with the sender's PRISM Order \5\ into the PRISM mechanism \6\
for execution pursuant to Options 3, Section 13.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 91124 (February 12,
2021), 86 FR 10363 (February 19, 2021) (SR-BX-2020-033) (Order
Granting Approval of a Proposed Rule Change To Utilize the FIX
Protocol To Submit Orders to BX's Price Improvement Auction
Mechanism) (``Approval Order'').
\4\ An Initiating Order is an order executed against principal
interest or against any other order it represents as agent. See
Options 3, Section 13.
\5\ A PRISM Order is an order submitted by a BX Participant that
it represents as agent on behalf of a Public Customer, broker
dealer, or any other entity, electronically, for execution. See
Options 3, Section 13.
\6\ This proposal does not amend the PRISM rule within Options
3, Section 13 in connection with offering Participants the ability
to submit a Request for PRISM through FIX.
---------------------------------------------------------------------------
Specifically, the amendment expanded the capabilities of the FIX
protocol to allow a BX Participant (sender) to utilize FIX to send a
message to other BX Participants (responders) with an order the sender
represents as agent (``PRISM Order'') on behalf of a Public Customer,
broker dealer or other entity requesting the responders provide a
contra-side Initiating Order (a ``response'') and begin a PRISM auction
(collectively a ``Request for PRISM'').\7\ If a BX Participant desires
to respond to the request, the BX Participant adds an Initiating Order
to the sender's PRISM Order and submits the paired order directly into
PRISM, through FIX, for processing in accordance with Options 3,
Section 13.\8\
---------------------------------------------------------------------------
\7\ The Request for PRISM, if accepted and submitted into PRISM,
would become the ``PRISM Order'' pursuant to Options 3, Section 13.
\8\ BX Participants may elect to ``opt in'' to receive Requests
for PRISM. BX Participants that do not elect to ``opt in'' will not
receive such requests. Once a BX Participant elects to receive
Requests for PRISM, they would receive all requests from any BX
Participant submitting a Request for PRISM. The BX Participant
cannot elect to only receive requests from certain Participants and
the sender may not elect to send the request to a select group of BX
Participants.
---------------------------------------------------------------------------
The Exchange intended to begin implementation of the proposed rule
change by June 30, 2021.\9\ At this time, the Exchange proposes to
delay the implementation so that it would begin implementation prior to
November 1, 2021. The Exchange will issue an Options Trader Alert to
Participants with the date of implementation.
---------------------------------------------------------------------------
\9\ See Approval Order page 10364, ``The Exchange intends to
begin implementation of the proposed rule change by June 30, 2021.''
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal 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
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest, by delaying the implementation of its amendment to Options 3,
Section 7(d)(1)(A) to allow the Exchange additional time to develop and
test this functionality. The Exchange believes that additional testing
will ensure a successful launch of the functionality.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange's proposal to
delay the adoption of the amendment to Options 3, Section 7(d)(1)(A)
does not impose an undue burden on competition. Delaying the
implementation of the functionality will allow the Exchange additional
time to develop and test the functionality.
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)(iii) of the Act \12\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 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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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 [email protected]. Please include
File Number SR-BX-2021-022 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-2021-022. 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-2021-022 and should be submitted on
or before June 8, 2021.
[[Page 27005]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-10386 Filed 5-17-21; 8:45 am]
BILLING CODE 8011-01-P
