Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend EDGX Rule 11.1(a)(1) To Begin Accepting Orders at 2:30 a.m. Eastern Time, 51402-51404 [2021-19859]
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51402
Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices
19(b)(3)(A) 23 of the Act and
subparagraph (f)(2) of Rule 19b–4 24
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such 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
under Section 19(b)(2)(B) 25 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
khammond on DSKJM1Z7X2PROD with NOTICES
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEArca–2021–79 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–NYSEArca–2021–79. 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–NYSEArca–2021–79, and
should be submitted on or before
October 6, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.26
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–19862 Filed 9–14–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92914; File No. SR–
CboeEDGX–2021–037]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend
EDGX Rule 11.1(a)(1) To Begin
Accepting Orders at 2:30 a.m. Eastern
Time
September 9, 2021.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on August
31, 2021, Cboe EDGX Exchange, Inc.
(the ‘‘Exchange’’ or ‘‘EDGX’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II 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.
26 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
23 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
25 15 U.S.C. 78s(b)(2)(B).
24 17
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) proposes to
amend EDGX Rule 11.1(a)(1) to begin
accepting orders at 2:30 a.m. Eastern
Time. 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/
options/regulation/rule_filings/edgx/),
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
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
EDGX Rule 11.1 (Hours of Trading and
Trading Days) to begin accepting orders
at 2:30 a.m. Eastern Time rather than
3:30 a.m. Eastern Time. The proposal is
substantially similar to NYSE Arca, LLC
(‘‘Arca’’) Rule 7.34–E(a)(1) that provides
Arca may accept orders 90 minutes
before its early trading session begins.5
Currently EDGX Rule 11.1(a)(1)
provides that orders may be entered into
the System from 3:30 a.m. until 8:00
p.m. Eastern Time. The rule provides
that orders entered between 3:30 a.m.
and 4:00 a.m. Eastern Time are not
eligible for execution until the start of
the Early Trading Session,6 Pre-Opening
Session 7 or Regular Trading Hours,8
depending on the time in force selected
5 The Arca early trading session begins at 4:00
a.m. Eastern Time.
6 The term ‘‘Early Trading Session’’ shall mean
the time between 4:00 a.m. and 8:00 a.m. Eastern
Time. See EDGX Rule 1.5(ii).
7 The term ‘‘Pre-Opening Session’’ shall mean the
time between 8:00 a.m. and 9:30 a.m. Eastern Time.
See EDGX Rule 1.5(s).
8 The term ‘‘Regular Trading Hours’’ shall mean
the time between 9:30 a.m. and 4:00 p.m. Eastern
Time. See EDGX Rule 1.5(y).
E:\FR\FM\15SEN1.SGM
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Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices
by the User.9 The rule further provides
that at the commencement of the Early
Trading Session, orders entered between
3:30 a.m. and 4 a.m. Eastern Time will
become eligible for execution (‘‘4:00
a.m. Start’’), unless designated as
eligible for execution during the Early
Trading Session beginning at 7:00 a.m.
Eastern Time (‘‘7:00 a.m. Start’’). Orders
with a 7:00 a.m. Start designation may
be entered between 3:30 a.m. and 7:00
a.m. Eastern Time.
The Exchange proposes to amend
Rule 11.1(a)(1) to provide that the
Exchange would begin accepting orders
at 2:30 a.m. Eastern Time. The Exchange
proposes to begin accepting earlier
orders to compete with non-exchange
trading venues that begin accepting
orders before 3:30 a.m. Eastern Time. By
moving the Exchange’s order acceptance
time earlier, Members that route orders
to multiple venues before 3:30 a.m.
Eastern Time would be able to include
the Exchange in their early morning
routing determinations. The Exchange
does not propose to change the time
when the Early Trading Session would
begin or many any other rule changes.
Because of the technology changes
required to implement this change,
subject to effectiveness of this proposed
rule change, the Exchange will notify
Members when the Exchange would
begin accepting orders at 2:30 a.m.
Eastern Time, which the Exchange
anticipates would be in September
2021.
khammond on DSKJM1Z7X2PROD with NOTICES
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.10 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 11 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
9 The term ‘‘User’’ shall mean any Member or
Sponsored Participant who is authorized to obtain
access to the System pursuant to Rule 11.3. See
EDGX Rule 1.5(ee).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
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17:08 Sep 14, 2021
Jkt 253001
system, and, in general, to protect
investors and the public interest.
The Exchange believes that the
proposed rule change would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system because it
would not change any trading functions
on the Exchange and would only move
up the time when the Exchange would
begin accepting order flow for trading in
the Early Trading Session. In addition,
a Member that opts to send in orders
during this earlier time period could, as
today, designate which trading session
such orders would be eligible to trade,
including per Rule 11.1(a)(1), a 4:00
a.m. Start or a 7:00 a.m. Start. The
Exchange further believes that the
proposed rule change would promote
competition among the exchanges and
non-exchange venues because it would
allow Members that currently route to
non-exchange trading venues prior to
3:30 a.m. Eastern Time to include the
Exchange in their early morning routing
determinations.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that the proposed
rule change would promote intermarket
competition between the Exchange and
non-exchange trading venues that
accept order flow before 3:30 a.m.
Eastern Time. Further, the Exchange
believes the proposed rule change
would impose no burden on intramarket
competition as all Members could
submit order flow to the Exchange
beginning at 2:30 a.m. Eastern Time.
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: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
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51403
19(b)(3)(A)(iii) of the Act 12 and
subparagraph (f)(6) of Rule 19b–4
thereunder.13
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),15 the
Commission may designate a shorter
time if such action is consistent with
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 upon
filing. According to the Exchange, the
technology supporting the proposed
rule change would be available less than
30 days after filing, and the Exchange
would be able to implement the change
before the 30-day operative delay ends.
The Exchange also states that the
proposed rule change would promote
competition by providing Members that
route orders to non-exchange venues or
another exchange that accepts order
flow before 3:30 a.m. Eastern Time 16 the
opportunity to include the Exchange on
its early morning routing
determinations. The Commission
believes that the Exchange’s proposal
does not raise any new or novel issues
and that waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest.
Accordingly, the Commission
designates the proposed rule change to
be operative on upon filing.17
12 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6).
16 See Arca Rule 7.34–E(a)(1). See also Securities
and Exchange Act No. 92657 (August 12, 2021) 86
FR 46296 (August 18, 2021) (SR–NYSEArca–2021–
71).
17 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
13 17
E:\FR\FM\15SEN1.SGM
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15SEN1
51404
Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CboeEDGX–2021–037 on the subject
line.
Paper Comments
khammond on DSKJM1Z7X2PROD with NOTICES
• 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–CboeEDGX–2021–037. 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–2021–037 and
should be submitted on or before
October 6, 2021.
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Sep<11>2014
17:08 Sep 14, 2021
Jkt 253001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–19859 Filed 9–14–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92906; File No. SR–Phlx–
2021–49]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Expiration
Date of the Temporary Amendments
Concerning Video Conference
Hearings
September 9, 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 August
31, 2021, Nasdaq PHLX LLC (‘‘Phlx’’ 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 Exchange has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
change under paragraph (f)(6) of Rule
19b–4 under the Act,3 which renders
the proposal effective upon receipt of
this filing by the Commission. 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 extend the
expiration date of the temporary
amendments in SR–Phlx–2020–53 from
August 31, 2021, to December 31, 2021.4
The proposed rule change would not
make any changes to the text of the
Exchange rules.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
4 If the Exchange seeks to provide additional
temporary relief from the rule requirements
identified in this proposed rule change beyond
December 31, 2021, the Exchange will submit a
separate rule filing to further extend the temporary
extension of time. The amended Exchange rules
will revert to their original form at the conclusion
of the temporary relief period and any extension
thereof.
1 15
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
rulebook/phlx/rules, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to continue to
harmonize Exchange Rule General 3,
Section 16 with recent changes by the
Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) to its Rule
1015 in response to the COVID–19
global health crisis and the
corresponding need to restrict in-person
activities.5 The Exchange originally
filed proposed rule change SR–Phlx–
2020–53, which allows the Exchange
Review Council (‘‘ERC’’) to conduct
hearings in connection with appeals of
Membership Application Program
decisions, on a temporary basis, by
video conference, if warranted by the
current COVID–19-related public health
risks posed by an in-person hearing. In
April 2021, the Exchange filed a
proposed rule change, SR–Phlx–2021–
027, to extend the expiration date of the
temporary amendments in SR–Phlx–
2020–53 from April 30, 2021, to August
31, 2021.6 While there are signs of
5 See Securities Exchange Act Release No. 92685
(August 17, 2021), No. 92685 (August 17, 2021), 86
FR 47169 (August 23, 2021) (SR–FINRA–2021–019)
(‘‘FINRA Filing’’). The Exchange notes that the
FINRA Filing also proposed to temporarily amend
FINRA Rules 9261, 9524, and 9830, which govern
hearings in connection with appeals of disciplinary
actions, eligibility proceedings, and temporary and
permanent cease and desist orders. The Exchange’s
Rules 9261, 9524, and 9830 incorporate by
reference The Nasdaq Stock Market LLC rules,
which are the subject of a separate filing. See SR–
NASDAQ–2021–067 (August 30, 2021). Therefore,
the Exchange is not proposing to adopt that aspect
of the FINRA Filing.
6 See Securities Exchange Act Release No. 91766
(May 4, 2021), 86 FR 25014 (May 10, 2021) (Notice
of Filing and Immediate Effectiveness of File No.
SR–Phlx–2021–027); see also Securities Exchange
Act Release No. 90758 (December 21, 2020), 85 FR
85782 (December 29, 2020) (Notice of Filing and
E:\FR\FM\15SEN1.SGM
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]]>Agencies
[Federal Register Volume 86, Number 176 (Wednesday, September 15, 2021)]
[Notices]
[Pages 51402-51404]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19859]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92914; File No. SR-CboeEDGX-2021-037]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend EDGX Rule 11.1(a)(1) To Begin Accepting Orders at 2:30 a.m.
Eastern Time
September 9, 2021.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on August 31, 2021, Cboe EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
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 EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') proposes to
amend EDGX Rule 11.1(a)(1) to begin accepting orders at 2:30 a.m.
Eastern Time. 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/options/regulation/rule_filings/edgx/), 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
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 EDGX Rule 11.1 (Hours of Trading and
Trading Days) to begin accepting orders at 2:30 a.m. Eastern Time
rather than 3:30 a.m. Eastern Time. The proposal is substantially
similar to NYSE Arca, LLC (``Arca'') Rule 7.34-E(a)(1) that provides
Arca may accept orders 90 minutes before its early trading session
begins.\5\
---------------------------------------------------------------------------
\5\ The Arca early trading session begins at 4:00 a.m. Eastern
Time.
---------------------------------------------------------------------------
Currently EDGX Rule 11.1(a)(1) provides that orders may be entered
into the System from 3:30 a.m. until 8:00 p.m. Eastern Time. The rule
provides that orders entered between 3:30 a.m. and 4:00 a.m. Eastern
Time are not eligible for execution until the start of the Early
Trading Session,\6\ Pre-Opening Session \7\ or Regular Trading
Hours,\8\ depending on the time in force selected
[[Page 51403]]
by the User.\9\ The rule further provides that at the commencement of
the Early Trading Session, orders entered between 3:30 a.m. and 4 a.m.
Eastern Time will become eligible for execution (``4:00 a.m. Start''),
unless designated as eligible for execution during the Early Trading
Session beginning at 7:00 a.m. Eastern Time (``7:00 a.m. Start'').
Orders with a 7:00 a.m. Start designation may be entered between 3:30
a.m. and 7:00 a.m. Eastern Time.
---------------------------------------------------------------------------
\6\ The term ``Early Trading Session'' shall mean the time
between 4:00 a.m. and 8:00 a.m. Eastern Time. See EDGX Rule 1.5(ii).
\7\ The term ``Pre-Opening Session'' shall mean the time between
8:00 a.m. and 9:30 a.m. Eastern Time. See EDGX Rule 1.5(s).
\8\ The term ``Regular Trading Hours'' shall mean the time
between 9:30 a.m. and 4:00 p.m. Eastern Time. See EDGX Rule 1.5(y).
\9\ The term ``User'' shall mean any Member or Sponsored
Participant who is authorized to obtain access to the System
pursuant to Rule 11.3. See EDGX Rule 1.5(ee).
---------------------------------------------------------------------------
The Exchange proposes to amend Rule 11.1(a)(1) to provide that the
Exchange would begin accepting orders at 2:30 a.m. Eastern Time. The
Exchange proposes to begin accepting earlier orders to compete with
non-exchange trading venues that begin accepting orders before 3:30
a.m. Eastern Time. By moving the Exchange's order acceptance time
earlier, Members that route orders to multiple venues before 3:30 a.m.
Eastern Time would be able to include the Exchange in their early
morning routing determinations. The Exchange does not propose to change
the time when the Early Trading Session would begin or many any other
rule changes.
Because of the technology changes required to implement this
change, subject to effectiveness of this proposed rule change, the
Exchange will notify Members when the Exchange would begin accepting
orders at 2:30 a.m. Eastern Time, which the Exchange anticipates would
be in September 2021.
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.\10\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \11\ 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.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change would remove
impediments to and perfect the mechanism of a free and open market and
a national market system because it would not change any trading
functions on the Exchange and would only move up the time when the
Exchange would begin accepting order flow for trading in the Early
Trading Session. In addition, a Member that opts to send in orders
during this earlier time period could, as today, designate which
trading session such orders would be eligible to trade, including per
Rule 11.1(a)(1), a 4:00 a.m. Start or a 7:00 a.m. Start. The Exchange
further believes that the proposed rule change would promote
competition among the exchanges and non-exchange venues because it
would allow Members that currently route to non-exchange trading venues
prior to 3:30 a.m. Eastern Time to include the Exchange in their early
morning routing determinations.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes that
the proposed rule change would promote intermarket competition between
the Exchange and non-exchange trading venues that accept order flow
before 3:30 a.m. Eastern Time. Further, the Exchange believes the
proposed rule change would impose no burden on intramarket competition
as all Members could submit order flow to the Exchange beginning at
2:30 a.m. Eastern Time.
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: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \12\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ the Commission
may designate a shorter time if such action is consistent with
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 upon filing. According to the
Exchange, the technology supporting the proposed rule change would be
available less than 30 days after filing, and the Exchange would be
able to implement the change before the 30-day operative delay ends.
The Exchange also states that the proposed rule change would promote
competition by providing Members that route orders to non-exchange
venues or another exchange that accepts order flow before 3:30 a.m.
Eastern Time \16\ the opportunity to include the Exchange on its early
morning routing determinations. The Commission believes that the
Exchange's proposal does not raise any new or novel issues and that
waiver of the 30-day operative delay is consistent with the protection
of investors and the public interest. Accordingly, the Commission
designates the proposed rule change to be operative on upon filing.\17\
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6).
\16\ See Arca Rule 7.34-E(a)(1). See also Securities and
Exchange Act No. 92657 (August 12, 2021) 86 FR 46296 (August 18,
2021) (SR-NYSEArca-2021-71).
\17\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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[[Page 51404]]
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-CboeEDGX-2021-037 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-CboeEDGX-2021-037. 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-2021-037 and should be
submitted on or before October 6, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-19859 Filed 9-14-21; 8:45 am]
BILLING CODE 8011-01-P
