Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 531, Reports and Market Data Products, To Adopt the Liquidity Taker Event Report for Options Trading, 30337-30341 [2021-11798]

Download as PDF Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / Notices The General Counsel of the Corporation has certified that in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552 (b)(2) and (4) permit closure of the following portion(s) of this meeting: • Executive Session Agenda I. Call to Order II. Executive Session Discussion with General Counsel and Chief Audit Executive III. Executive Session Executive Compensation Review IV. Executive Session: Report from CEO V. Executive Session: Report from CFO VI. NeighborWorks CompassTM Update VII. Action Item Approval of Minutes VIII. Action Item Board Elections and Appointments IX. Action Item Revision of Bylaws for Creation of the Chief Information Officer Position X. Action Item Management Elections XI. Action Item Grants to the Capital Corporations XII. Action Item HPN Launchpad Contract Extension XIII. Action Item LIFT 8.0 XIV. Discussion Item Annual Ethics Review XV. Discussion Item Annual Review of Governance Operations Guide XVI. Discussion Item Investment Policy Review XVII. Management Program Background and Updates XVIII. Adjournment Portions Open to the Public: Everything except the Executive Session. Portions Closed to the Public: Executive Session. CONTACT PERSON FOR MORE INFORMATION: Lakeyia Thompson, Special Assistant, (202) 524–9940; Lthompson@nw.org. Lakeyia Thompson, Special Assistant. Week of June 7, 2021 Tuesday, June 8, 2021 10 a.m. Briefing on Human Capital and Equal Employment Opportunity (Public Meeting); (Contact: Anne DeFrancisco: 610–337–5078) Additional Information: Due to COVID–19, there will be no physical public attendance. The public is invited to attend the Commission’s meeting live by webcast at the Web address—https:// video.nrc.gov/. Thursday, June 10, 2021 10 a.m. Briefing on Results of the Agency Action Review Meeting (Public Meeting); (Contact: Nicole Fields: 630–829–9570) Additional Information: Due to COVID–19, there will be no physical public attendance. The public is invited to attend the Commission’s meeting live by webcast at the Web address—https:// video.nrc.gov/. Week of June 14, 2021—Tentative There are no meetings scheduled for the week of June 14, 2021. Week of June 21, 2021—Tentative Week of June 28, 2021—Tentative There are no meetings scheduled for the week of June 28, 2021. Week of July 5, 2021—Tentative There are no meetings scheduled for the week of July 12, 2021. CONTACT PERSON FOR MORE INFORMATION: NUCLEAR REGULATORY COMMISSION [NRC–2021–0001] khammond on DSKJM1Z7X2PROD with NOTICES Sunshine Act Meetings Weeks of June 7, 14, 21, 28, July 5, 12, 2021. PLACE: Commissioners’ Conference Room, 11555 Rockville Pike, Rockville, Maryland. STATUS: Public. MATTERS TO BE CONSIDERED: TIME AND DATE: VerDate Sep<11>2014 20:21 Jun 04, 2021 Jkt 253001 For more information or to verify the status of meetings, contact Wesley Held at 301–287–3591 or via email at Wesley.Held@nrc.gov. The schedule for Commission meetings is subject to change on short notice. The NRC Commission Meeting Schedule can be found on the internet at: https://www.nrc.gov/public-involve/ public-meetings/schedule.html. The NRC provides reasonable accommodation to individuals with disabilities where appropriate. If you PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 Dated: June 3, 2021. For the Nuclear Regulatory Commission. Wesley W. Held, Policy Coordinator, Office of the Secretary. BILLING CODE 7590–01–P 9 a.m. Briefing on Transformation at the NRC—Midyear Review (Public Meeting); (Contact: Maria ArribasColon: 301–415–6026) Additional Information: Due to COVID–19, there will be no physical public attendance. The public is invited to attend the Commission’s meeting live by webcast at the Web address—https:// video.nrc.gov/. Week of July 12, 2021—Tentative BILLING CODE 7570–02–P need a reasonable accommodation to participate in these public meetings or need this meeting notice or the transcript or other information from the public meetings in another format (e.g., braille, large print), please notify Anne Silk, NRC Disability Program Specialist, at 301–287–0745, by videophone at 240–428–3217, or by email at Anne.Silk@nrc.gov. Determinations on requests for reasonable accommodation will be made on a case-by-case basis. Members of the public may request to receive this information electronically. If you would like to be added to the distribution, please contact the Nuclear Regulatory Commission, Office of the Secretary, Washington, DC 20555, at 301–415–1969, or by email at Wendy.Moore@nrc.gov or Tyesha.Bush@ nrc.gov. The NRC is holding the meetings under the authority of the Government in the Sunshine Act, 5 U.S.C. 552b. [FR Doc. 2021–12016 Filed 6–3–21; 4:15 pm] Tuesday, June 22, 2021 There are no meetings scheduled for the week of July 5, 2021. [FR Doc. 2021–12020 Filed 6–3–21; 4:15 pm] 30337 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–92082; File No. SR– PEARL–2021–25] Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 531, Reports and Market Data Products, To Adopt the Liquidity Taker Event Report for Options Trading June 1, 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 19, 2021, MIAX PEARL, LLC (‘‘MIAX Pearl’’ 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 2 17 E:\FR\FM\07JNN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 07JNN1 30338 Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / Notices I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to provide for the new ‘‘Liquidity Taker Event Report’’. The text of the proposed rule change is available on the Exchange’s website at https://www.miaxoptions.com/rulefilings/pearl at MIAX Pearl’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 khammond on DSKJM1Z7X2PROD with NOTICES 1. Purpose The Exchange proposes to amend Exchange Rule 531(a) to provide for the new ‘‘Liquidity Taker Event Report’’ (the ‘‘Report’’). The proposed Report is identical to that previously adopted by the Exchange’s affiliate, MIAX Emerald, LLC (‘‘MIAX Emerald’’), and approved by the Securities and Exchange Commission (‘‘Commission’’).3 The proposed Report would only be available for options trading on the Exchange. The Report is an optional product 4 available to Members.5 Currently, the Exchange provides real-time prices and analytics in the marketplace. The Exchange believes the additional data points from the matching engine outlined below may help Members gain a better understanding about their 3 See Securities Exchange Act Release No. 91787 (May 6, 2021), 85 FR 26111 (May 12, 2021) (SR– EMERALD–2021–09) (Order Approving Proposed Rule Change to Adopt Exchange Rule 531(a), Reports, to Provide for a New ‘‘Liquidity Taker Event Report’’). 4 The Exchange intends to submit a separate filing with the Commission pursuant to Section 19(b)(1) to propose fees for the Liquidity Taker Event Report. 5 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. VerDate Sep<11>2014 17:36 Jun 04, 2021 Jkt 253001 interactions with the Exchange. The Exchange believes the Report will provide Members with an opportunity to learn more about better opportunities to access liquidity and receive better execution rates. The proposed Report will increase transparency and democratize information so that all firms that subscribe to the Report have access to the same information on an equal basis, even for firms that do not have the appropriate resources to generate a similar report regarding interactions with the Exchange. None of the components of the proposed Report include real-time market data. Members generally would use a liquidity accessing order if there is a high probability that it will execute against an order resting on the Exchange’s Book.6 The proposed Report would identify by how much time an order that may have been marketable missed an execution. The proposed Report will provide greater visibility into the missed trading execution, which will allow Members to optimize their models and trading patterns to yield better execution results. The proposed Report will be a Member-specific report and will help Members to better understand by how much time a particular order missed executing against a specific resting order, thus allowing that Member to determine whether it wants to invest in the necessary resources and technology to mitigate missed executions against certain resting orders on the Exchange’s Book. For example, Member A submits an order that is posted to the Book and then Member B enters a marketable order to execute against Member A’s resting order. Immediately thereafter, Member C sends a marketable order to execute against Member A’s resting Order. Because Member B’s order is received by the Exchange before Member C’s order, Member B’s order executes against Member A’s resting order. The proposed Report would provide Member C the data points necessary for that firm to calculate by how much time they missed executing against Member A’s resting order. The Exchange proposes to provide the Report on a T+1 basis. As further described below, the Report will be specific and tailored to the Member that is subscribed to the Report and any data included in the Report that relates to a Member other than the Member receiving the Report will be anonymized. 6 The term ‘‘Book’’ means the electronic book of buy and sell orders and quotes maintained by the System. See Exchange Rule 100. The term ‘‘System’’ means the automated trading system used by the Exchange for the trading of securities. See id. PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 The Exchange proposes to provide the Report in response to Member demand for data concerning the timeliness of their incoming orders and executions against resting orders. Members have periodically requested from the Exchange’s trading operations personnel information concerning the timeliness of their incoming orders and efficacy of their attempts to execute against resting liquidity on the Exchange’s Book. The purpose of the Report is to provide Members the necessary data in a standardized format on a T+1 basis to those that subscribe to the Report on an equal basis. Proposed Exchange Rule 531(a) would provide that the Report is a daily report that provides a Member (‘‘Recipient Member’’) with its liquidity response time details for executions of an order resting on the Book, where that Recipient Member attempted to execute against such resting order within a certain timeframe. Report Content Paragraph (a)(1) of Rule 531 would describe the content of the Report and delineate which information would be provided regarding the resting order,7 the response that successfully executed against the resting order, and the response submitted by the Recipient Member that missed executing against the resting order. It is important to note that the content of the Report will be specific to the Recipient Member and the Report will not include any information related to any Member other than the Recipient Member. The Exchange will restrict all other market participants, including the Recipient Member, from receiving another market participant’s data. Resting Order Information. Rule 531(a)(1)(i) would provide that the following information would be included in the Report regarding the resting order: (A) The time the resting order was received by the Exchange; 8 (B) symbol; (C) order reference number, which is a unique reference number assigned to a new order at the time of receipt; (D) whether the Recipient Member is an Affiliate 9 of the Member 7 Only displayed orders will be included in the Report. The Exchange notes that it does not currently offer any non-displayed orders types on its options trading platform. 8 The time the Exchange received the resting order would be in nanoseconds and is the time the resting order was received by the Exchange’s System. 9 The term ‘‘affiliate’’ of or person ‘‘affiliated with’’ another person means a person who, directly, or indirectly, controls, is controlled by, or is under common control with, such other person. See Exchange Rule 100. E:\FR\FM\07JNN1.SGM 07JNN1 Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / Notices khammond on DSKJM1Z7X2PROD with NOTICES that entered the resting order; 10 (E) origin type (e.g., Priority Customer,11 Market Maker 12); (F) side (buy or sell); and (G) displayed price and size of the resting order.13 Execution Information. Rule 531(a)(1)(ii) would provide that the following information would be included in the Report regarding the execution of the resting order: (A) The PBBO 14 at the time of execution; 15 (B) the ABBO 16 at the time of execution; 17 (C) the time first response that executes against the resting order was received by the Exchange and the size of the execution and type of the response; 18 (D) the time difference between the time the resting order was received by the Exchange and the time the first response that executes against the resting order was received by the Exchange; 19 and (E) whether the response was entered by the Recipient Member. If the resting order executes against multiple contraside responses, only the PBBO and ABBO at the time of the execution 10 The Report will simply indicate whether the Recipient Member is an Affiliate of the Member that entered the resting order and not include any other information that may indicate the identity of the Member that entered the resting order. 11 The term ‘‘Priority Customer’’ means a person or entity that (i) is not a broker or dealer in securities, and (ii) does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). The number of orders shall be counted in accordance with Interpretation and Policy .01 to Exchange Rule 100. See Exchange Rule 100. 12 The term ‘‘Market Maker’’ refers to ‘‘Lead Market Makers’’, ‘‘Primary Lead Market Makers’’ and ‘‘Registered Market Makers’’ collectively. See Exchange Rule 100. 13 The Exchange notes that the displayed price and size are also disseminated via the Exchange’s proprietary data feeds and the Options Price Reporting Authority (‘‘OPRA’’). The Exchange also notes that the displayed price of the resting order may be different than the ultimate execution price. This may occur when a resting order is displayed and ranked at different prices upon entry to avoid a locked or crossed market. 14 The term ‘‘PBBO’’ means the best bid or offer on the Exchange. See Exchange Rule 100. 15 Exchange Rule 531(a)(1)(ii)(A) would further provide that if the resting order executes against multiple contra-side responses, only the PBBO at the time of the execution against the first response will be included. 16 The term ‘‘ABBO’’ or ‘‘Away Best Bid or Offer’’ means the best bid(s) or offer(s) disseminated by other Eligible Exchanges (defined in Exchange Rule 1400(g)) and calculated by the Exchange based on market information received by the Exchange from OPRA. See Exchange Rule 100. 17 Exchange Rule 531(a)(1)(ii)(B) would further provide that if the resting order executes against multiple contra-side responses, only the ABBO at the time of the execution against the first response will be included. 18 The time the Exchange received the response order would be in nanoseconds and would be the time the response was received by the Exchange’s network, which is before the time the response would be received by the System. 19 The time difference would be provided in nanoseconds. VerDate Sep<11>2014 17:36 Jun 04, 2021 Jkt 253001 against the first response will be included. Recipient Member’s Response Information. Rule 531(a)(1)(iii) would provide that the following information would be included in the Report regarding response(s) sent by the Recipient Member: (A) Recipient Member identifier; (B) the time difference between the time the first response that executes against the resting order was received by the Exchange and the time of each response sent by the Recipient Member, regardless of whether it executed or not; 20 (C) size and type of each response submitted by Recipient Member; and (D) response reference number, which is a unique reference number attached to the response by the Recipient Member. Timeframe for Data Included in Report Paragraph (a)(2) of Rule 531 would provide that the Report would include the data set forth under Rule 531(a)(1) described above for executions and contra-side responses that occurred within 200 microseconds of the time the resting order was received by the Exchange. Scope of Data Included in the Report Paragraph (a)(3) of Rule 531 would provide that the Report will only include trading data related to the Recipient Member and, subject to the proposed paragraph (4) of Rule 531(a) described below, will not include any other Member’s trading data other than that listed in paragraphs (1)(i) and (ii) of Exchange Rule 531(a) described above. Historical Data Paragraph (a)(4) of Rule 531 would specify that the Report will contain historical data from the prior trading day and will be available after the end of the trading day, generally on a T+1 basis. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.21 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 22 requirements that the rules of an exchange be designed to prevent 20 For purposes of calculating this duration of time, the Exchange will use the time the resting order and the Recipient Member’s response(s) is received by the Exchange’s network, both of which would be before the order and response(s) would be received by the System. This time difference would be provided in nanoseconds. 21 15 U.S.C. 78f(b). 22 15 U.S.C. 78f(b)(5). PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 30339 fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. This proposal is in keeping with those principles in that it promotes increased transparency through the dissemination of the optional Report to those interested in subscribing to receive the data. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 23 requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The proposed Report is also identical to a report previously adopted by the Exchange’s affiliate, MIAX Emerald, and approved by the Commission.24 Therefore, the proposed rule change does not present any new or novel issues not previously considered by the Commission. The Exchange believes the proposed Report will serve to promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general protect investors and the public interest because it will benefit investors by facilitating their prompt access to the value added information that is included in the proposed Report. The Report will allow Members to access information regarding their trading activity that they may utilize to evaluate their own trading behavior and order interactions. The proposed Report is designed for Members that are interested in gaining insight into latency in connection with orders that failed to execute against an order resting on the Exchange’s Book by providing those Members data to analyze by how much time their order may have missed an execution against a contra-side order resting on the Book. The Exchange believes that providing this optional latency data to interested Members is consistent with facilitating transactions in securities, removing impediments to and perfecting the mechanism of a free and open market and a national market system, and, in general, protecting investors and the public interest because it provides 23 Id. 24 See E:\FR\FM\07JNN1.SGM supra note 3. 07JNN1 khammond on DSKJM1Z7X2PROD with NOTICES 30340 Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / Notices greater visibility into the latency of Members’ incoming orders. Members may use this data to optimize their models and trading patterns in an effort to yield better execution results by calculating by how much time their order may have missed an execution. As discussed above, the Exchange currently fields ad hoc requests from Members for information regarding the timeliness of their attempts to execute against resting options liquidity on the Exchange’s Book. The proposal is designed to offer this type of latency information in a systematized way and standardized format to any Member that chooses to subscribe to the Report. As a result, the proposal will make latency information for liquidity-seeking orders available in a more equalized manner and will increase transparency, particularly for Recipient Members that may not have the expertise to generate the same information on their own. The proposed Report may better enable Recipient Members to increase the fill rates for their liquidity-seeking orders. At the same time, as is also discussed above, the Report is designed to prevent a Recipient Member from learning other Members’ sensitive trading information. The Report would not be a real-time market data product, as it would provide only historical trading data for the previous trading day, generally on a T+1 basis. In addition, the data in the Report regarding incoming orders that failed to execute would be specific to the Recipient Member’s orders, and other information in the proposed Report regarding resting orders and executions would be anonymized if it relates to a Member other than the Recipient Member. The Report generally contains three buckets of information. The first two buckets include information about the resting order and the execution of the resting order. This information is generally available from other public sources, such as OPRA and the Exchange’s proprietary data feeds, or is similar to information included in a report offered by another exchange. For example, OPRA provides bids, offers, and consolidated last sale and quotation information for options trading on all national securities exchanges, including the Exchange. In addition, the Exchange offers the Top of Market (‘‘ToM’’) feed which provides real-time quote and last sale information for all displayed orders on the Book.25 Specifically, the first bucket of information contained in the Report for the resting order includes the time the resting order was received by the 25 See Section 6)a) of the Exchange’s fee schedule. VerDate Sep<11>2014 17:36 Jun 04, 2021 Jkt 253001 Exchange, the symbol, unique reference number assigned at the time of receipt, side (buy or sell), and the displayed price and size of the resting order. Further, the symbol, origin type, side (buy or sell), and displayed price and size are also available either via OPRA or the Exchange’s proprietary data feeds. The first bucket of information also indicates whether the Recipient Member is an Affiliate of the Member that entered the resting order. This data field will not indicate the identity of the Member that entered the resting order and would simply allow the Recipient Member to better understand the scenarios in which it may execute against the orders of its Affiliates.26 The second bucket of information contained in the Report regards the execution of the resting order and includes the PBBO and ABBO at the time of execution. These data points are also available either via OPRA or the Exchange’s proprietary data feeds. The second bucket of information will also indicate whether the response was entered by the Recipient Member. This data point is simply provided as a convenience. If not entered by the Recipient Member, this data point will be left blank so as not to include any identifying information about other Member activity. The second bucket of information also includes the size, time and type of first response that executes against the resting order; as well as the time difference between the time the resting order and first response that executes against the resting order are received by the Exchange. These data points would assist the Recipient Member in analyzing by how much time their order may have missed an execution against a contra-side order resting on the Book. The third bucket of information is about the Recipient Member’s response(s) and the time their response(s) is received by the Exchange. This includes the time difference between the time the first response that executes against the resting order was received by the Exchange and the time of each response sent by the Recipient Member, regardless of whether it executed or not. As above, this data point would assist the Recipient Member in analyzing by how much time their order may have missed an execution against a contra-side order resting on the Book. This bucket would also include the size and type of each response submitted by the Recipient Member, the Recipient Member 26 The Exchange’s surveils to monitor for abhorrent behavior related to internalized trades and identify potential wash sales. PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 identifier, and a response reference number which is selected by the Recipient Member. Each of these data points are unique to the Recipient Member and should already be known by Recipient Member even if not included in the Report. The Exchange proposes to provide the Report on a voluntary basis and no Member will be required to subscribe to the Report. The Exchange notes that there is no rule or regulation that requires the Exchange to produce, or that a Member elect to receive, the Report. It is entirely a business decision of each Member to subscribe to the Report. The Exchange proposes to offer the Report as a convenience to Members to provide them with additional information regarding trading activity on the Exchange on a delayed basis after the close of regular trading hours. A Member that chooses to subscribe to the Report may discontinue receiving the Report at any time if that Member determines that the information contained in the Report is no longer useful. In summary, the proposed Report will help to protect a free and open market by providing additional data (offered on an optional basis) to the marketplace and by providing investors with greater choices.27 Additionally, the proposal would not permit unfair discrimination because the proposed Report will be available to all Exchange Members. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. The Exchange believes that the proposed Report will enhance competition 28 by providing a new option for receiving market data to Members. The proposed Report will also further enhance competition between exchanges by allowing the Exchange to expand its product offerings to include a report similar to that currently offered by the NASDAQ Stock Market LLC (‘‘NASDAQ’’).29 In this instance, the proposed rule change to offer the optional Report is in response to Member interest and requests for such information. The Exchange does not believe the proposed Report will have an inappropriate 27 See Sec. Indus. Fin. Mkts. Ass’n (SIFMA), Initial Decision Release No. 1015, 2016 SEC LEXIS 2278 (ALJ June 1, 2016) (finding the existence of vigorous competition with respect to non-core market data). 28 Id. 29 See NASDAQ Equity Section 7, Rule 146(a)(2). E:\FR\FM\07JNN1.SGM 07JNN1 Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / Notices burden on intra-market competition between Recipient Members and other Members who do not receive the Report. As discussed above, the first two buckets of information included in the Report contain information about the resting order and the execution of the resting order, both of which are generally available to Members that choose not to receive the Report from other public sources, such as OPRA and the Exchange’s proprietary data feeds. The third bucket of information is about the Recipient Member’s response and the time their response is received by the Exchange, information which the Recipient Member would be able to obtain without receiving the Report. Additionally, some Members may already be able to derive a substantial amount of the same data that is provided by some of the components based on their own executions and algorithms. In sum, if the proposed Report is unattractive to Members, Members will opt not to receive it. Accordingly, the Exchange does not believe that the proposed change will impair the ability of Members or competing order execution venues to maintain their competitive standing in the financial markets. khammond on DSKJM1Z7X2PROD with NOTICES 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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 30 and Rule 19b–4(f)(6) thereunder.31 Because the 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, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 32 and Rule 19b–4(f)(6) thereunder.33 30 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 32 15 U.S.C. 78s(b)(3)(A). 33 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange’s intent to file the proposed rule change, along with a brief 31 17 VerDate Sep<11>2014 17:36 Jun 04, 2021 Jkt 253001 A proposed rule change filed under Rule 19b–4(f)(6) 34 normally does not become operative for 30 days after the date of the filing. However, pursuant to Rule 19b–4(f)(6)(iii),35 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposed rule change may become operative immediately. The Exchange states that it is prepared to begin offering the Report upon the effectiveness of this proposed rule change. The Exchange also argues that waiver of the operative delay would allow the Exchange to provide a product offering identical to that of its affiliate, MIAX Emerald, as soon as practicable, which in turn would reduce potential confusion in the near term about whether the Exchange is offering the same report as its affiliate offers currently. 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. Accordingly, the Commission hereby waives the 30-day operative delay and designates the proposal operative upon filing.36 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: 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. 34 17 CFR 240.19b–4(f)(6). 35 17 CFR 240.19b–4(f)(6)(iii). 36 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 30341 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–2021–25 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–2021–25. 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–PEARL–2021–25, and should be submitted on or before June 28, 2021. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.37 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–11798 Filed 6–4–21; 8:45 am] BILLING CODE 8011–01–P 37 17 E:\FR\FM\07JNN1.SGM CFR 200.30–3(a)(12), (59). 07JNN1

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[Federal Register Volume 86, Number 107 (Monday, June 7, 2021)]
[Notices]
[Pages 30337-30341]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11798]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92082; File No. SR-PEARL-2021-25]


Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 
531, Reports and Market Data Products, To Adopt the Liquidity Taker 
Event Report for Options Trading

June 1, 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 19, 2021, MIAX PEARL, LLC (``MIAX Pearl'' 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.

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[[Page 30338]]

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

    The Exchange is filing a proposal to provide for the new 
``Liquidity Taker Event Report''.
    The text of the proposed rule change is available on the Exchange's 
website at https://www.miaxoptions.com/rule-filings/pearl at MIAX 
Pearl'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 Exchange Rule 531(a) to provide for 
the new ``Liquidity Taker Event Report'' (the ``Report''). The proposed 
Report is identical to that previously adopted by the Exchange's 
affiliate, MIAX Emerald, LLC (``MIAX Emerald''), and approved by the 
Securities and Exchange Commission (``Commission'').\3\ The proposed 
Report would only be available for options trading on the Exchange.
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    \3\ See Securities Exchange Act Release No. 91787 (May 6, 2021), 
85 FR 26111 (May 12, 2021) (SR-EMERALD-2021-09) (Order Approving 
Proposed Rule Change to Adopt Exchange Rule 531(a), Reports, to 
Provide for a New ``Liquidity Taker Event Report'').
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    The Report is an optional product \4\ available to Members.\5\ 
Currently, the Exchange provides real-time prices and analytics in the 
marketplace. The Exchange believes the additional data points from the 
matching engine outlined below may help Members gain a better 
understanding about their interactions with the Exchange. The Exchange 
believes the Report will provide Members with an opportunity to learn 
more about better opportunities to access liquidity and receive better 
execution rates. The proposed Report will increase transparency and 
democratize information so that all firms that subscribe to the Report 
have access to the same information on an equal basis, even for firms 
that do not have the appropriate resources to generate a similar report 
regarding interactions with the Exchange. None of the components of the 
proposed Report include real-time market data.
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    \4\ The Exchange intends to submit a separate filing with the 
Commission pursuant to Section 19(b)(1) to propose fees for the 
Liquidity Taker Event Report.
    \5\ 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.
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    Members generally would use a liquidity accessing order if there is 
a high probability that it will execute against an order resting on the 
Exchange's Book.\6\ The proposed Report would identify by how much time 
an order that may have been marketable missed an execution. The 
proposed Report will provide greater visibility into the missed trading 
execution, which will allow Members to optimize their models and 
trading patterns to yield better execution results.
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    \6\ The term ``Book'' means the electronic book of buy and sell 
orders and quotes maintained by the System. See Exchange Rule 100. 
The term ``System'' means the automated trading system used by the 
Exchange for the trading of securities. See id.
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    The proposed Report will be a Member-specific report and will help 
Members to better understand by how much time a particular order missed 
executing against a specific resting order, thus allowing that Member 
to determine whether it wants to invest in the necessary resources and 
technology to mitigate missed executions against certain resting orders 
on the Exchange's Book. For example, Member A submits an order that is 
posted to the Book and then Member B enters a marketable order to 
execute against Member A's resting order. Immediately thereafter, 
Member C sends a marketable order to execute against Member A's resting 
Order. Because Member B's order is received by the Exchange before 
Member C's order, Member B's order executes against Member A's resting 
order. The proposed Report would provide Member C the data points 
necessary for that firm to calculate by how much time they missed 
executing against Member A's resting order. The Exchange proposes to 
provide the Report on a T+1 basis. As further described below, the 
Report will be specific and tailored to the Member that is subscribed 
to the Report and any data included in the Report that relates to a 
Member other than the Member receiving the Report will be anonymized.
    The Exchange proposes to provide the Report in response to Member 
demand for data concerning the timeliness of their incoming orders and 
executions against resting orders. Members have periodically requested 
from the Exchange's trading operations personnel information concerning 
the timeliness of their incoming orders and efficacy of their attempts 
to execute against resting liquidity on the Exchange's Book. The 
purpose of the Report is to provide Members the necessary data in a 
standardized format on a T+1 basis to those that subscribe to the 
Report on an equal basis.
    Proposed Exchange Rule 531(a) would provide that the Report is a 
daily report that provides a Member (``Recipient Member'') with its 
liquidity response time details for executions of an order resting on 
the Book, where that Recipient Member attempted to execute against such 
resting order within a certain timeframe.
Report Content
    Paragraph (a)(1) of Rule 531 would describe the content of the 
Report and delineate which information would be provided regarding the 
resting order,\7\ the response that successfully executed against the 
resting order, and the response submitted by the Recipient Member that 
missed executing against the resting order. It is important to note 
that the content of the Report will be specific to the Recipient Member 
and the Report will not include any information related to any Member 
other than the Recipient Member. The Exchange will restrict all other 
market participants, including the Recipient Member, from receiving 
another market participant's data.
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    \7\ Only displayed orders will be included in the Report. The 
Exchange notes that it does not currently offer any non-displayed 
orders types on its options trading platform.
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    Resting Order Information. Rule 531(a)(1)(i) would provide that the 
following information would be included in the Report regarding the 
resting order: (A) The time the resting order was received by the 
Exchange; \8\ (B) symbol; (C) order reference number, which is a unique 
reference number assigned to a new order at the time of receipt; (D) 
whether the Recipient Member is an Affiliate \9\ of the Member

[[Page 30339]]

that entered the resting order; \10\ (E) origin type (e.g., Priority 
Customer,\11\ Market Maker \12\); (F) side (buy or sell); and (G) 
displayed price and size of the resting order.\13\
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    \8\ The time the Exchange received the resting order would be in 
nanoseconds and is the time the resting order was received by the 
Exchange's System.
    \9\ The term ``affiliate'' of or person ``affiliated with'' 
another person means a person who, directly, or indirectly, 
controls, is controlled by, or is under common control with, such 
other person. See Exchange Rule 100.
    \10\ The Report will simply indicate whether the Recipient 
Member is an Affiliate of the Member that entered the resting order 
and not include any other information that may indicate the identity 
of the Member that entered the resting order.
    \11\ The term ``Priority Customer'' means a person or entity 
that (i) is not a broker or dealer in securities, and (ii) does not 
place more than 390 orders in listed options per day on average 
during a calendar month for its own beneficial account(s). The 
number of orders shall be counted in accordance with Interpretation 
and Policy .01 to Exchange Rule 100. See Exchange Rule 100.
    \12\ The term ``Market Maker'' refers to ``Lead Market Makers'', 
``Primary Lead Market Makers'' and ``Registered Market Makers'' 
collectively. See Exchange Rule 100.
    \13\ The Exchange notes that the displayed price and size are 
also disseminated via the Exchange's proprietary data feeds and the 
Options Price Reporting Authority (``OPRA''). The Exchange also 
notes that the displayed price of the resting order may be different 
than the ultimate execution price. This may occur when a resting 
order is displayed and ranked at different prices upon entry to 
avoid a locked or crossed market.
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    Execution Information. Rule 531(a)(1)(ii) would provide that the 
following information would be included in the Report regarding the 
execution of the resting order: (A) The PBBO \14\ at the time of 
execution; \15\ (B) the ABBO \16\ at the time of execution; \17\ (C) 
the time first response that executes against the resting order was 
received by the Exchange and the size of the execution and type of the 
response; \18\ (D) the time difference between the time the resting 
order was received by the Exchange and the time the first response that 
executes against the resting order was received by the Exchange; \19\ 
and (E) whether the response was entered by the Recipient Member. If 
the resting order executes against multiple contra-side responses, only 
the PBBO and ABBO at the time of the execution against the first 
response will be included.
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    \14\ The term ``PBBO'' means the best bid or offer on the 
Exchange. See Exchange Rule 100.
    \15\ Exchange Rule 531(a)(1)(ii)(A) would further provide that 
if the resting order executes against multiple contra-side 
responses, only the PBBO at the time of the execution against the 
first response will be included.
    \16\ The term ``ABBO'' or ``Away Best Bid or Offer'' means the 
best bid(s) or offer(s) disseminated by other Eligible Exchanges 
(defined in Exchange Rule 1400(g)) and calculated by the Exchange 
based on market information received by the Exchange from OPRA. See 
Exchange Rule 100.
    \17\ Exchange Rule 531(a)(1)(ii)(B) would further provide that 
if the resting order executes against multiple contra-side 
responses, only the ABBO at the time of the execution against the 
first response will be included.
    \18\ The time the Exchange received the response order would be 
in nanoseconds and would be the time the response was received by 
the Exchange's network, which is before the time the response would 
be received by the System.
    \19\ The time difference would be provided in nanoseconds.
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    Recipient Member's Response Information. Rule 531(a)(1)(iii) would 
provide that the following information would be included in the Report 
regarding response(s) sent by the Recipient Member: (A) Recipient 
Member identifier; (B) the time difference between the time the first 
response that executes against the resting order was received by the 
Exchange and the time of each response sent by the Recipient Member, 
regardless of whether it executed or not; \20\ (C) size and type of 
each response submitted by Recipient Member; and (D) response reference 
number, which is a unique reference number attached to the response by 
the Recipient Member.
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    \20\ For purposes of calculating this duration of time, the 
Exchange will use the time the resting order and the Recipient 
Member's response(s) is received by the Exchange's network, both of 
which would be before the order and response(s) would be received by 
the System. This time difference would be provided in nanoseconds.
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Timeframe for Data Included in Report
    Paragraph (a)(2) of Rule 531 would provide that the Report would 
include the data set forth under Rule 531(a)(1) described above for 
executions and contra-side responses that occurred within 200 
microseconds of the time the resting order was received by the 
Exchange.
Scope of Data Included in the Report
    Paragraph (a)(3) of Rule 531 would provide that the Report will 
only include trading data related to the Recipient Member and, subject 
to the proposed paragraph (4) of Rule 531(a) described below, will not 
include any other Member's trading data other than that listed in 
paragraphs (1)(i) and (ii) of Exchange Rule 531(a) described above.
Historical Data
    Paragraph (a)(4) of Rule 531 would specify that the Report will 
contain historical data from the prior trading day and will be 
available after the end of the trading day, generally on a T+1 basis.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\21\ Specifically, the Exchange believes the proposed rule change 
is consistent with the Section 6(b)(5) \22\ requirements that the rules 
of an exchange be designed to prevent fraudulent and manipulative acts 
and practices, to promote just and equitable principles of trade, to 
foster cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest. 
This proposal is in keeping with those principles in that it promotes 
increased transparency through the dissemination of the optional Report 
to those interested in subscribing to receive the data. Additionally, 
the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \23\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. The proposed Report is also identical to a report 
previously adopted by the Exchange's affiliate, MIAX Emerald, and 
approved by the Commission.\24\ Therefore, the proposed rule change 
does not present any new or novel issues not previously considered by 
the Commission.
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    \21\ 15 U.S.C. 78f(b).
    \22\ 15 U.S.C. 78f(b)(5).
    \23\ Id.
    \24\ See supra note 3.
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    The Exchange believes the proposed Report will serve to promote 
just and equitable principles of trade, remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general protect investors and the public interest 
because it will benefit investors by facilitating their prompt access 
to the value added information that is included in the proposed Report. 
The Report will allow Members to access information regarding their 
trading activity that they may utilize to evaluate their own trading 
behavior and order interactions.
    The proposed Report is designed for Members that are interested in 
gaining insight into latency in connection with orders that failed to 
execute against an order resting on the Exchange's Book by providing 
those Members data to analyze by how much time their order may have 
missed an execution against a contra-side order resting on the Book. 
The Exchange believes that providing this optional latency data to 
interested Members is consistent with facilitating transactions in 
securities, removing impediments to and perfecting the mechanism of a 
free and open market and a national market system, and, in general, 
protecting investors and the public interest because it provides

[[Page 30340]]

greater visibility into the latency of Members' incoming orders. 
Members may use this data to optimize their models and trading patterns 
in an effort to yield better execution results by calculating by how 
much time their order may have missed an execution.
    As discussed above, the Exchange currently fields ad hoc requests 
from Members for information regarding the timeliness of their attempts 
to execute against resting options liquidity on the Exchange's Book. 
The proposal is designed to offer this type of latency information in a 
systematized way and standardized format to any Member that chooses to 
subscribe to the Report. As a result, the proposal will make latency 
information for liquidity-seeking orders available in a more equalized 
manner and will increase transparency, particularly for Recipient 
Members that may not have the expertise to generate the same 
information on their own. The proposed Report may better enable 
Recipient Members to increase the fill rates for their liquidity-
seeking orders. At the same time, as is also discussed above, the 
Report is designed to prevent a Recipient Member from learning other 
Members' sensitive trading information. The Report would not be a real-
time market data product, as it would provide only historical trading 
data for the previous trading day, generally on a T+1 basis. In 
addition, the data in the Report regarding incoming orders that failed 
to execute would be specific to the Recipient Member's orders, and 
other information in the proposed Report regarding resting orders and 
executions would be anonymized if it relates to a Member other than the 
Recipient Member.
    The Report generally contains three buckets of information. The 
first two buckets include information about the resting order and the 
execution of the resting order. This information is generally available 
from other public sources, such as OPRA and the Exchange's proprietary 
data feeds, or is similar to information included in a report offered 
by another exchange. For example, OPRA provides bids, offers, and 
consolidated last sale and quotation information for options trading on 
all national securities exchanges, including the Exchange. In addition, 
the Exchange offers the Top of Market (``ToM'') feed which provides 
real-time quote and last sale information for all displayed orders on 
the Book.\25\
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    \25\ See Section 6)a) of the Exchange's fee schedule.
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    Specifically, the first bucket of information contained in the 
Report for the resting order includes the time the resting order was 
received by the Exchange, the symbol, unique reference number assigned 
at the time of receipt, side (buy or sell), and the displayed price and 
size of the resting order. Further, the symbol, origin type, side (buy 
or sell), and displayed price and size are also available either via 
OPRA or the Exchange's proprietary data feeds. The first bucket of 
information also indicates whether the Recipient Member is an Affiliate 
of the Member that entered the resting order. This data field will not 
indicate the identity of the Member that entered the resting order and 
would simply allow the Recipient Member to better understand the 
scenarios in which it may execute against the orders of its 
Affiliates.\26\
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    \26\ The Exchange's surveils to monitor for abhorrent behavior 
related to internalized trades and identify potential wash sales.
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    The second bucket of information contained in the Report regards 
the execution of the resting order and includes the PBBO and ABBO at 
the time of execution. These data points are also available either via 
OPRA or the Exchange's proprietary data feeds. The second bucket of 
information will also indicate whether the response was entered by the 
Recipient Member. This data point is simply provided as a convenience. 
If not entered by the Recipient Member, this data point will be left 
blank so as not to include any identifying information about other 
Member activity. The second bucket of information also includes the 
size, time and type of first response that executes against the resting 
order; as well as the time difference between the time the resting 
order and first response that executes against the resting order are 
received by the Exchange. These data points would assist the Recipient 
Member in analyzing by how much time their order may have missed an 
execution against a contra-side order resting on the Book.
    The third bucket of information is about the Recipient Member's 
response(s) and the time their response(s) is received by the Exchange. 
This includes the time difference between the time the first response 
that executes against the resting order was received by the Exchange 
and the time of each response sent by the Recipient Member, regardless 
of whether it executed or not. As above, this data point would assist 
the Recipient Member in analyzing by how much time their order may have 
missed an execution against a contra-side order resting on the Book. 
This bucket would also include the size and type of each response 
submitted by the Recipient Member, the Recipient Member identifier, and 
a response reference number which is selected by the Recipient Member. 
Each of these data points are unique to the Recipient Member and should 
already be known by Recipient Member even if not included in the 
Report.
    The Exchange proposes to provide the Report on a voluntary basis 
and no Member will be required to subscribe to the Report. The Exchange 
notes that there is no rule or regulation that requires the Exchange to 
produce, or that a Member elect to receive, the Report. It is entirely 
a business decision of each Member to subscribe to the Report. The 
Exchange proposes to offer the Report as a convenience to Members to 
provide them with additional information regarding trading activity on 
the Exchange on a delayed basis after the close of regular trading 
hours. A Member that chooses to subscribe to the Report may discontinue 
receiving the Report at any time if that Member determines that the 
information contained in the Report is no longer useful.
    In summary, the proposed Report will help to protect a free and 
open market by providing additional data (offered on an optional basis) 
to the marketplace and by providing investors with greater choices.\27\ 
Additionally, the proposal would not permit unfair discrimination 
because the proposed Report will be available to all Exchange Members.
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    \27\ See Sec. Indus. Fin. Mkts. Ass'n (SIFMA), Initial Decision 
Release No. 1015, 2016 SEC LEXIS 2278 (ALJ June 1, 2016) (finding 
the existence of vigorous competition with respect to non-core 
market data).
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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 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. The 
Exchange believes that the proposed Report will enhance competition 
\28\ by providing a new option for receiving market data to Members. 
The proposed Report will also further enhance competition between 
exchanges by allowing the Exchange to expand its product offerings to 
include a report similar to that currently offered by the NASDAQ Stock 
Market LLC (``NASDAQ'').\29\
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    \28\ Id.
    \29\ See NASDAQ Equity Section 7, Rule 146(a)(2).
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    In this instance, the proposed rule change to offer the optional 
Report is in response to Member interest and requests for such 
information. The Exchange does not believe the proposed Report will 
have an inappropriate

[[Page 30341]]

burden on intra-market competition between Recipient Members and other 
Members who do not receive the Report. As discussed above, the first 
two buckets of information included in the Report contain information 
about the resting order and the execution of the resting order, both of 
which are generally available to Members that choose not to receive the 
Report from other public sources, such as OPRA and the Exchange's 
proprietary data feeds. The third bucket of information is about the 
Recipient Member's response and the time their response is received by 
the Exchange, information which the Recipient Member would be able to 
obtain without receiving the Report. Additionally, some Members may 
already be able to derive a substantial amount of the same data that is 
provided by some of the components based on their own executions and 
algorithms.
    In sum, if the proposed Report is unattractive to Members, Members 
will opt not to receive it. Accordingly, the Exchange does not believe 
that the proposed change will impair the ability of Members or 
competing order execution venues to maintain their competitive standing 
in the financial markets.

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \30\ and Rule 19b-4(f)(6) thereunder.\31\ 
Because the 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, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \32\ and Rule 19b-
4(f)(6) thereunder.\33\
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    \30\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \31\ 17 CFR 240.19b-4(f)(6).
    \32\ 15 U.S.C. 78s(b)(3)(A).
    \33\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \34\ normally 
does not become operative for 30 days after the date of the filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\35\ the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposed 
rule change may become operative immediately. The Exchange states that 
it is prepared to begin offering the Report upon the effectiveness of 
this proposed rule change. The Exchange also argues that waiver of the 
operative delay would allow the Exchange to provide a product offering 
identical to that of its affiliate, MIAX Emerald, as soon as 
practicable, which in turn would reduce potential confusion in the near 
term about whether the Exchange is offering the same report as its 
affiliate offers currently. 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. Accordingly, the 
Commission hereby waives the 30-day operative delay and designates the 
proposal operative upon filing.\36\
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    \34\ 17 CFR 240.19b-4(f)(6).
    \35\ 17 CFR 240.19b-4(f)(6)(iii).
    \36\ For purposes only of waiving the 30-day operative delay, 
the Commission has 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-PEARL-2021-25 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-2021-25. 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-PEARL-2021-25, and should be submitted 
on or before June 28, 2021.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\37\
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    \37\ 17 CFR 200.30-3(a)(12), (59).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-11798 Filed 6-4-21; 8:45 am]
BILLING CODE 8011-01-P


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