Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the Bulk Message Fat Finger Check, 44090-44092 [2021-17080]
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44090
Federal Register / Vol. 86, No. 152 / Wednesday, August 11, 2021 / Notices
of the purposes of the Act. The
Exchange does not believe the proposed
rule change will impose any burden on
intramarket competition, as the
proposed changes will apply in the
same manner to all Book Only orders
and bulk messages submitted through a
bulk port. The proposed rule change to
codify that bulk messages will only be
subject to single price adjust is
appropriate given that Market-Makers’
automated quote streaming systems
review their resting interest when the
markets change and update as
appropriate in accordance with their
business and risk models. Therefore, the
Exchange does not believe it is
necessary for it also to review resting
Market-Maker interest continuously and
reprice as the market changes. The
Exchange does not believe the proposed
rule change will impose any burden on
intermarket competition, as the
proposed rule change applies to
functionality that applies to incoming
interest that may only rest or execute on
the Exchange’s book.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
jbell on DSKJLSW7X2PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not:
A. Significantly affect the protection
of investors or the public interest;
B. impose any significant burden on
competition; and
C. become operative for 30 days from
the date on which it was filed, or such
shorter time as the Commission may
designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 22 and Rule 19b–4(f)(6) 23
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. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
22 15
23 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
VerDate Sep<11>2014
23:05 Aug 10, 2021
Jkt 253001
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–
CboeEDGX–2021–035 on the subject
line.
Paper Comments
All submissions should refer to File
Number SR–CboeEDGX–2021–035. 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–CboeEDGX–2021–035 and
should be submitted on or before
September 1, 2021.
Fmt 4703
BILLING CODE 8011–01–P
[Release No. 34–92575; File No. SR–
CboeBZX–2021–054]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Modify the
Bulk Message Fat Finger Check
August 5, 2021.
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
Frm 00103
[FR Doc. 2021–17081 Filed 8–10–21; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
PO 00000
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Jill M. Peterson,
Assistant Secretary.
Sfmt 4703
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 July 28,
2021, Cboe BZX Exchange, Inc.
(‘‘Exchange’’ or ‘‘BZX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX Options’’)
proposes to modify the bulk message fat
finger check. The text of the proposed
rule change is provided in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/bzx/), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
24 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
E:\FR\FM\11AUN1.SGM
11AUN1
Federal Register / Vol. 86, No. 152 / Wednesday, August 11, 2021 / Notices
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
jbell on DSKJLSW7X2PROD with NOTICES
1. Purpose
The Exchange proposes to modify the
bulk message 5 fat finger check in Rule
21.17(a)(6). In accordance with the fat
finger check, the System cancels or
rejects any bulk message bid (offer)
above (below) the national best offer
(‘‘NBO’’) (national best bid (‘‘NBB’’)) by
more than a specified amount
determined by the Exchange.6 The
proposed rule change indicates that the
Exchange may also determine a
minimum and maximum dollar value
for the bulk message fat finger check.7
The Exchange believes Market-Makers
may be willing to accept an execution
at a price beyond the NBBO at the time
of order entry, but not too far away. The
purpose of the fat finger check is
intended to reject bulk message bids and
offers that on their face are likely to be
entered at erroneous prices and thus
prevent potentially erroneous
executions. The proposed rule change to
permit the Exchange to set a minimum
and maximum value will provide the
Exchange with the opportunity to set a
meaningful buffer that is not ‘‘too close’’
to the NBBO (in other words, a de
minimis buffer) but not ‘‘too far’’ from
the NBBO (in other words, a buffer that
is more likely to accept erroneously
priced bulk messages). The proposed
rule change also permits the Exchange
to set the relevant amounts for the bulk
message fat finger check on a class-by5 The term ‘‘bulk message’’ means a bid or offer
included in a single electronic message a User
submits with an M Capacity to the Exchange in
which the User may enter, modify, or cancel up to
an Exchange-specified number of bids and offers
(which number the Exchange announces via
Exchange notice or publicly available technical
specifications). A User may submit a bulk message
through a bulk port as set forth in Rule 21.1(j)(3).
The System handles a bulk message in the same
manner as it handles an order or quote, unless the
Rules specify otherwise. See Rule 16.1.
6 This check does not apply to bulk messages
submitted prior to the conclusion of the opening
process or when no NBBO is available.
7 The proposed rule change also makes a
nonsubstantive change to say the System cancels or
rejects any bulk message bid (offer) more than a
buffer amount above (below) the NBO (NBB) to
align the language with other rules.
VerDate Sep<11>2014
23:05 Aug 10, 2021
Jkt 253001
class basis. Option classes have different
characteristics and trading models, and
the proposed flexibility will permit the
Exchange to apply different parameters
to address those differences.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.8 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 9 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 10 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the proposed change to
the bulk message fat finger check will
protect investors and the public interest
as the check will continue to mitigate
potential risks associated with MarketMakers submitting bulk message bids
and offers at unintended prices, and
risks associated with orders and quotes
trading at prices that are extreme and
potentially erroneous, which may likely
have resulted from human or
operational error. The proposed
enhancement that the Exchange will
apply a minimum and maximum to the
fat finger check will permit the
Exchange to apply the fat finger check
to bulk messages in a more meaningful
way. The Exchange believes class
flexibility is appropriate to permit the
Exchange to apply reasonable buffers to
classes, which may exhibit different
trading characteristics and have
different market models. The Exchange
has other price checks and risk controls
that permit it to set a minimum and
maximum, as well as apply parameters
on a class basis.11
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 Id.
11 See, e.g., Rule 21.17(a)(1) (market order NBBO
width protection).
9 15
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
44091
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe the proposed
rule change will impose any burden on
intramarket competition, as the
proposed changes will apply in the
same manner to all bulk messages
submitted through a bulk port. The
Exchange does not believe the proposed
rule change will impose any burden on
intermarket competition, as the
proposed rule change applies to
functionality that applies to incoming
interest that may only rest or execute on
the Exchange’s book.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not:
A. Significantly affect the protection
of investors or the public interest;
B. impose any significant burden on
competition; and
C. become operative for 30 days from
the date on which it was filed, or such
shorter time as the Commission may
designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 12 and Rule 19b–4(f)(6) 13
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. If the
Commission takes such action, the
Commission will 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.
12 15
13 17
E:\FR\FM\11AUN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11AUN1
44092
Federal Register / Vol. 86, No. 152 / Wednesday, August 11, 2021 / Notices
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
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–
CboeBZX–2021–054 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.
jbell on DSKJLSW7X2PROD with NOTICES
All submissions should refer to File
Number SR–CboeBZX–2021–054. 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–CboeBZX–2021–054 and
should be submitted on or before
September 1, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2021–17080 Filed 8–10–21; 8:45 am]
[Release No. 34–92577; File No. SR–ISE–
2021–16]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend ISE’s Options
Regulatory Fee
August 5, 2021.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 30,
2021, Nasdaq ISE, LLC (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II,
below, which Items have been prepared
by 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 amend
ISE’s Pricing Schedule at Options 7,
Section 9, Part C related to the Options
Regulatory Fee or ‘‘ORF’’.
While the changes proposed herein
are effective upon filing, the Exchange
has designated the amendments become
operative on October 1, 2021.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/ise/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.
BILLING CODE 8011–01–P
1 15
14 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
23:05 Aug 10, 2021
2 17
Jkt 253001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00105
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Currently, ISE assesses an ORF of
$0.0018 per contract side as specified in
ISE’s Pricing Schedule at Options 7,
Section 9, Part C. The Exchange
proposes to waive its ORF from October
1, 2021 to January 31, 2022, and then
recommence the ORF on February 1,
2022.
By way of background, the options
industry has experienced extremely
high options trading volumes and
volatility. This historical anomaly of
persistent increased options volumes
has impacted ISE’s ORF collection
which, in turn, has caused the Exchange
to continue to revisit its financial
forecast to reflect the sustained elevated
options volumes and volatility. As the
Exchange continues to monitor the
amount of revenue collected from the
ORF to ensure that our ORF collection,
in combination with other regulatory
fees and fines, does not exceed
regulatory costs, the Exchange has
found it difficult to determine when
volumes will return to more normal
levels. In order to avoid iterative rule
changes to amend its ORF, the Exchange
believes it is prudent to instead waive
its ORF from October 1, 2021 to January
31, 2022, to permit the Exchange to plan
future forecasts without the need to
account for any ORF collection during
that timeframe. This proposal would
ensure that revenue collected from the
ORF, in combination with other
regulatory fees and fines, would not
exceed the Exchange’s total regulatory
costs. ISE would recommence assessing
its current ORF rate of $0.0018 per
contract side as of February 1, 2022.
Furthermore, prior to February 1, 2022,
ISE will examine its ORF rate to
determine if the $0.0018 per contract
side ORF is justified given the current
volumes in 2022 as well as the current
Exchange regulatory expenses at that
time. ISE would file a proposed rule
change to amend its per contract ORF if
changes are necessary to ensure an
equitable allocation of reasonable ORF,
if e.g., the Exchange believes that the
volumes ISE experiences in the second
half of 2021 are likely to persist
throughout 2022. Of note, ISE proposes
to continue to operate with the ORF fee
waived in January 2022 to allow its
members and other broker dealers time
to align their systems for February 1,
2022, allowing for time after the holiday
period which traditionally have yearend code freezes in place.
E:\FR\FM\11AUN1.SGM
11AUN1
]]>Agencies
[Federal Register Volume 86, Number 152 (Wednesday, August 11, 2021)]
[Notices]
[Pages 44090-44092]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-17080]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92575; File No. SR-CboeBZX-2021-054]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Modify
the Bulk Message Fat Finger Check
August 5, 2021.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on July 28, 2021, Cboe BZX Exchange, Inc. (``Exchange'' or ``BZX'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Exchange filed the
proposal as a ``non-controversial'' proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6)
thereunder.\4\ The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX Options'')
proposes to modify the bulk message fat finger check. The text of the
proposed rule change is provided in Exhibit 5.
The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
[[Page 44091]]
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 modify the bulk message \5\ fat finger
check in Rule 21.17(a)(6). In accordance with the fat finger check, the
System cancels or rejects any bulk message bid (offer) above (below)
the national best offer (``NBO'') (national best bid (``NBB'')) by more
than a specified amount determined by the Exchange.\6\ The proposed
rule change indicates that the Exchange may also determine a minimum
and maximum dollar value for the bulk message fat finger check.\7\ The
Exchange believes Market-Makers may be willing to accept an execution
at a price beyond the NBBO at the time of order entry, but not too far
away. The purpose of the fat finger check is intended to reject bulk
message bids and offers that on their face are likely to be entered at
erroneous prices and thus prevent potentially erroneous executions. The
proposed rule change to permit the Exchange to set a minimum and
maximum value will provide the Exchange with the opportunity to set a
meaningful buffer that is not ``too close'' to the NBBO (in other
words, a de minimis buffer) but not ``too far'' from the NBBO (in other
words, a buffer that is more likely to accept erroneously priced bulk
messages). The proposed rule change also permits the Exchange to set
the relevant amounts for the bulk message fat finger check on a class-
by-class basis. Option classes have different characteristics and
trading models, and the proposed flexibility will permit the Exchange
to apply different parameters to address those differences.
---------------------------------------------------------------------------
\5\ The term ``bulk message'' means a bid or offer included in a
single electronic message a User submits with an M Capacity to the
Exchange in which the User may enter, modify, or cancel up to an
Exchange-specified number of bids and offers (which number the
Exchange announces via Exchange notice or publicly available
technical specifications). A User may submit a bulk message through
a bulk port as set forth in Rule 21.1(j)(3). The System handles a
bulk message in the same manner as it handles an order or quote,
unless the Rules specify otherwise. See Rule 16.1.
\6\ This check does not apply to bulk messages submitted prior
to the conclusion of the opening process or when no NBBO is
available.
\7\ The proposed rule change also makes a nonsubstantive change
to say the System cancels or rejects any bulk message bid (offer)
more than a buffer amount above (below) the NBO (NBB) to align the
language with other rules.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\8\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \9\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \10\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ Id.
---------------------------------------------------------------------------
In particular, the proposed change to the bulk message fat finger
check will protect investors and the public interest as the check will
continue to mitigate potential risks associated with Market-Makers
submitting bulk message bids and offers at unintended prices, and risks
associated with orders and quotes trading at prices that are extreme
and potentially erroneous, which may likely have resulted from human or
operational error. The proposed enhancement that the Exchange will
apply a minimum and maximum to the fat finger check will permit the
Exchange to apply the fat finger check to bulk messages in a more
meaningful way. The Exchange believes class flexibility is appropriate
to permit the Exchange to apply reasonable buffers to classes, which
may exhibit different trading characteristics and have different market
models. The Exchange has other price checks and risk controls that
permit it to set a minimum and maximum, as well as apply parameters on
a class basis.\11\
---------------------------------------------------------------------------
\11\ See, e.g., Rule 21.17(a)(1) (market order NBBO width
protection).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe the proposed rule change will impose any burden on intramarket
competition, as the proposed changes will apply in the same manner to
all bulk messages submitted through a bulk port. The Exchange does not
believe the proposed rule change will impose any burden on intermarket
competition, as the proposed rule change applies to functionality that
applies to incoming interest that may only rest or execute on the
Exchange's book.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
A. Significantly affect the protection of investors or the public
interest;
B. impose any significant burden on competition; and
C. become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \12\ and
Rule 19b-4(f)(6) \13\ 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. If the Commission takes such action, the
Commission will institute proceedings to determine whether the proposed
rule change should be approved or disapproved.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act.
[[Page 44092]]
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-CboeBZX-2021-054 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-CboeBZX-2021-054. 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-CboeBZX-2021-054 and should be submitted
on or before September 1, 2021.
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\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2021-17080 Filed 8-10-21; 8:45 am]
BILLING CODE 8011-01-P
