Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.22 To Introduce a Product To Be Known as “Cboe Premium Exchange Tools” and To Amend Its Fee Schedule To Establish a Fee for a User Login That Elects To Subscribe to the Cboe Premium Exchange Tools, 52261-52265 [2021-20210]

Download as PDF Federal Register / Vol. 86, No. 179 / Monday, September 20, 2021 / Notices of investors and the public interest for the Exchange to delete its OATS reporting because FINRA has retired OATS. Accordingly, the Commission hereby waives the 30-day operative delay and designates the proposal operative upon filing.40 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. 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–NYSECHX–2021–12, and should be submitted on or before October 12, 2021. IV. Solicitation of Comments For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.41 Matthew DeLesDernier, Assistant Secretary. 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– NYSECHX–2021–12 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–NYSECHX–2021–12. 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 40 For purposed 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). VerDate Sep<11>2014 16:49 Sep 17, 2021 Jkt 253001 [FR Doc. 2021–20218 Filed 9–17–21; 8:45 am] 52261 The subject matter of the closed meeting will consist of the following topics: Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings; Resolution of litigation claims; and Other matters relating to examinations and enforcement proceedings. At times, changes in Commission priorities require alterations in the scheduling of meeting agenda items that may consist of adjudicatory, examination, litigation, or regulatory matters. CONTACT PERSON FOR MORE INFORMATION: For further information; please contact Vanessa A. Countryman from the Office of the Secretary at (202) 551–5400. Dated: September 16, 2021. Jill M. Peterson, Assistant Secretary. [FR Doc. 2021–20402 Filed 9–16–21; 4:15 pm] BILLING CODE 8011–01–P BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meetings 2:00 p.m. on Thursday, September 23, 2021. PLACE: The meeting will be held via remote means and/or at the Commission’s headquarters, 100 F Street NE, Washington, DC 20549. STATUS: This meeting will be closed to the public. MATTERS TO BE CONSIDERED: Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the closed meeting. Certain staff members who have an interest in the matters also may be present. In the event that the time, date, or location of this meeting changes, an announcement of the change, along with the new time, date, and/or place of the meeting will be posted on the Commission’s website at https:// www.sec.gov. The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) and (10) and 17 CFR 200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10), permit consideration of the scheduled matters at the closed meeting. TIME AND DATE: 41 17 PO 00000 CFR 200.30–3(a)(12). Frm 00139 Fmt 4703 Sfmt 4703 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–92970; File No. SR– CboeBZX–2021–047] Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.22 To Introduce a Product To Be Known as ‘‘Cboe Premium Exchange Tools’’ and To Amend Its Fee Schedule To Establish a Fee for a User Login That Elects To Subscribe to the Cboe Premium Exchange Tools September 14, 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 BZX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘BZX’’) 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). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(6). 2 17 E:\FR\FM\20SEN1.SGM 20SEN1 52262 Federal Register / Vol. 86, No. 179 / Monday, September 20, 2021 / Notices I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Cboe BZX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘BZX’’) proposes to amend Rule 11.22 to introduce a new product to be known as ‘‘Cboe Premium Exchange Tools’’ and to amend its Fee Schedule to establish a fee for a user login that elects to subscribe to the Cboe Premium Exchange Tools. 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 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 Rule 11.22(b) to introduce a new product to be known as Cboe Premium Exchange Tools, as further described below, and to amend its Fee Schedule to adopt a monthly fee assessed to users that elect to subscribe to such Cboe Premium Exchange Tools, effective August 31, 2021. Cboe Premium Exchange Tools Currently, Members,5 Sponsored Participants,6 and service bureaus are leveraging certain value-added tools (i.e., Cboe Premium Exchange Tools) on the Exchange to obtain certain information free of charge. Particularly, Cboe Premium Exchange Tools offers an easily accessible internet-based tool that allows users access to certain execution information for their firm through a single interface. Now, the Exchange 5 See 6 See Exchange Rule 1.5(n). Exchange Rule 1.5(x). VerDate Sep<11>2014 16:49 Sep 17, 2021 Jkt 253001 proposes to amend Rule 11.22(b) to describe the Cboe Premium Exchange Tools in its Rules. Specifically, proposed Rule 11.22(b) provides that the Cboe Premium Exchange Tools is a web-based tool designed to give a subscribing user the ability to track latency statics of the user’s logical order entry ports or execution information of the Member or a Sponsored Participant of the Member. The proposed rule also provides that a user may obtain historical reports of such execution information, as further described below.7 Cboe Premium Exchange Tools is currently comprised of the following three reports: (i) Trade data report,8 (ii) latency statistics report,9 and (iii) volume history report.10 Trade Data Report The trade data report offers the ability for a user to view and/or export its Member’s and, if applicable, a Sponsored Participant of the Member, granular execution detail.11 Specifically, the report currently includes the following information: Date, time, Member identifier, clearing member identifier, session, order identification, symbol, side (i.e., buy, sell, sell short), price, quantity, capacity (e.g., agent, principal), liquidity indicator (i.e., adder or remover of liquidity), order type,12 indicator as to whether order set or joined the national best bid or offer (‘‘NBBO’’),13 and associated fee code(s). The information is provided in order to aid Members in conducting their own reconciliations and assist in report generation, and, unlike the Volume History Report, is available on an execution-by-execution basis. Latency Statistics Report The latency statistics report offers functionality to view latency statistics relating to logical order entry ports, including a Member’s orders, acknowledgements, and cancels, including roundtrip data from into the 7 All information available to Members as described herein is historical information. 8 Trade Data Reports may be obtained by a Member, or if authorized to do so a Sponsored Participant. 9 Latency Statistics Reports may be obtained by a Member, Sponsored Participant or service bureaus as it relates to their respective logical order entry ports. 10 Volume History Reports may be obtained by a Member. 11 Sponsored Participants may also subscribe to the Trade Data Report, provided that its Sponsoring Member provides the Exchange authorization to do so. Trade Data Reports provided to Sponsored Participants only include execution detail related to the Sponsored Participant. 12 See Exchange Rule 11.9. 13 Hidden orders that neither set or join the NBBO are identified as such within the report. PO 00000 Frm 00140 Fmt 4703 Sfmt 4703 edge network device and back, which accounts for latency within the Exchange order gateways and matching engines. Specifically, the latency statistics report includes the following information: (i) The roundtrip time between the order entering the Exchange’s network and the time the order acknowledgement leaves the Exchange’s network, (ii) the roundtrip time between an order cancellation request and the time the order cancellation request acknowledgement leaves the Exchange’s network, (iii) the roundtrip time between an order entering the Exchange’s network and the time that the order appears on the Multicast PITCH feed, (iv) the roundtrip time for a Transmission Control Protocol (‘‘TCP’’) 14 message sent by the Exchange to be acknowledged by the Member, and (v) averages a Member can expect for items (i) through (iii) across their own ports and across the entire system (i.e., across all Members). A Member, service bureau, or Sponsored Participant may view the latency statistics for orders that they send to the Exchange through their own respective logical order entry ports. The information included in the latency statistics report is designed to give users insight into the performance characteristics of their logical order entry ports. Volume History Report The volume history report provides users the functionality to view the Member’s, high level volume history on the Exchange, as well as more granular added, removed, and routed orders at a per Tape and MPID level or a per security level for the purpose of tracking and measuring outcomes.15 The tools offer functionality to allow a user to view aggregated volume history reports on behalf of the Member or a Sponsored Participant of the Member for the purpose of firm or client-level reporting, administration, and risk management. Cboe Premium Exchange Tools Fee The Exchange also proposes to adopt a fee applicable to users that subscribe to the proposed Cboe Premium Exchange Tools. Specifically, as proposed, the Exchange would assess a monthly fee of $65 for each user login that subscribes to any of the reports and services that comprise the Cboe 14 TCP is a communications standard that enables application programs and computing devises to exchange messages over a network. 15 Information included in the Volume History Report includes all activity, including that executed on behalf of Sponsored Participants. Execution volume made on behalf of a Sponsored Participant is not delineated within the Volume History Report. E:\FR\FM\20SEN1.SGM 20SEN1 Federal Register / Vol. 86, No. 179 / Monday, September 20, 2021 / Notices Premium Exchange Tools. As discussed above, Premium Exchange Tools provides users with an easily accessible tool that allows them to access certain execution and latency information from a single interface and provides such information in a convenient, userfriendly format. Further, a number of enhancements have recently been made to the various reports and services included in the Cboe Premium Exchange Tools. For example, the trade data report has recently been enhanced to provide timestamps with microsecond granularity for added detail on a per trade basis. Therefore, the Exchange believes the assessment of such a fee aligns with the additional value and benefits provided to users that choose to subscribe to the Cboe Premium Exchange Tools. The Exchange also believes that the proposal is appropriate to balance the Exchange resource requirements in creating, managing, and supporting the services and reports provided by the Cboe Premium Exchange Tools. The Cboe Premium Exchange Tools fee will be assessed to a user for the entire month regardless of when the user receives access to the Premium Exchange Tools. If a user obtains or cancels a subscription to the Cboe Premium Exchange Tools on or after the first business day of the month, the user will be required to pay the entire Cboe Premium Exchange Tools fee for that month. The Exchange anticipates a number of users will subscribe to the Cboe Premium Exchange Tools. It is a completely voluntary product, in that the Exchange is not required by any rule or regulation to make the reports or services available and that potential subscribers may purchase it only if they voluntarily choose to do so. Further, the Exchange notes that other exchanges offer similar products.16 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.17 Specifically, the Exchange believes the proposed rule change is consistent with Section 6(b)(4) of the Act,18 which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Members and other persons using its facilities. The Exchange also believes the proposed rule change is consistent with the Section 6(b)(5) 19 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) 20 requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Exchange believes the proposal to amend Rule 11.22(b) to provide for the Cboe Premium Exchange Tools is reasonable for several reasons. First, certain of the underlying information available via the Cboe Premium Exchange Tools is otherwise generally available to users. While the proposal provides a value-added service by setting forth such information in a userfriendly format, the underlying data included in the trade data report and volume history report contains general Member-specific execution information to which a Member would have access to without subscribing to Premium Exchange Tools, (e.g., via their own order entry ports which include Member-provided order instructions, exchange-sent acknowledgement messages, and drop copies). Moreover, the data included in the trade data report and volume history report is substantially similar to data offered in the Nasdaq TradeInfo tool, which provides detailed data on the status of orders executions, cancels and breaks, and generates reports for download, and allows the member to cancel or correct open orders.21 While certain underlying data included in the latency statistics report such as latency averages across the System is not otherwise available to Members, or where applicable, 19 15 U.S.C. 78f(b)(5). 20 Id. 16 See the ‘‘TradeInfo Fees’’ offered on the Nasdaq Stock Exchange (‘‘Nasdaq’’), Nasdaq BX, Inc. (‘‘Nasdaq BX’’), and the Nasdaq PHLX LLC (‘‘Phlx’’), each of which assess a fee of $95 per user per month. 17 15 U.S.C. 78f(b). 18 15 U.S.C. 78f(b)(4). VerDate Sep<11>2014 16:49 Sep 17, 2021 Jkt 253001 21 See Securities and Exchange Act No. 90772 (December 22, 2020) 85 FR 86632 (December 30, 2020) (SR–NASDAQ–2020–088) (Proposed rule change describing the withdrawal of Nasdaq’s QView product from sale and that the information included therein will continue to be available via TradeInfo). PO 00000 Frm 00141 Fmt 4703 Sfmt 4703 52263 Sponsored Participants, or service bureaus, the Exchange notes such users can obtain similar information on their own latency statistics relating to their orders, acknowledgements, TCP messages, and cancels, including roundtrip data from out of their edge network device and back without subscribing to Premium Exchange Tools. Particularly, users are able to calculate these latencies on their own servers as the underlying transaction information is timestamped, which would similarly account for the latency throughout the Exchange side of the network (i.e., the Exchange does not believe latency statistics calculated by users themselves would be materially different from the Exchange’s calculations). The Exchange notes that although latency information related to averages across the system would not otherwise be available to Members, Sponsored Participants or service bureaus absent subscribing to Premium Exchange Tools, providing users such information is not novel as similar information was historically made available in an offering by Nasdaq. Specifically, prior to its decommission in December of 2020, Nasdaq provided summary latency statistics via its QView tool which provided members that subscribed to QView Latency Optics add-on service the ability to monitor three types of latency for order messages and compare that latency to the average on the Nasdaq System.22 The specific latency statistics included: (i) The roundtrip time between order entry and receipt of acknowledgement; (ii) roundtrip time between order entry and the time that the order appears on the TotalView ITCH multicast feed; and (iii) the roundtrip time between the entry of an order cancellation request and the time that the message in reply is received by the client device.23 Similarly as noted above, the Exchange’s proposed latency statistics report provides users averages across the entire System for three types of latency: (i) The roundtrip time between the order entering the Exchange’s network and the time the order acknowledgement leaves the Exchange’s network, (ii) the roundtrip time between an order cancellation request and the 22 See Securities Exchange Act Release No. 68617 (January 10, 2013), 78 FR 3480 (January 16, 2013) (SR–Nasdaq–2013–005) (introducing the Latency Optics add-on). See also Securities Exchange Act Release No. 82003 (November 2, 2017), 82 FR 51894 (November 8, 2017) (SR–Nasdaq–2017–113) (proposed rule change that also describes the Latency Optics add-on service, which provided, among other things, subscribing members the ability to compare their latency to the average of the Nasdaq system). 23 Id. E:\FR\FM\20SEN1.SGM 20SEN1 52264 Federal Register / Vol. 86, No. 179 / Monday, September 20, 2021 / Notices time the order cancellation request acknowledgement leaves the Exchange’s network, (iii) the roundtrip time between an order entering the Exchange’s network and the time that the order appears on the Multicast PITCH feed. Even after QView was decommissioned, the underlying data needed to generate the latency statistics (other than for averages across the Nasdaq system) for each member was and continues to be available via the Nasdaq TradeInfo tool.24 The Exchange believes that the proposed fee for the Cboe Premium Exchange Tools is consistent with the Act in that it is reasonable, equitable, and not unfairly discriminatory. In particular, the Exchange believes that the proposed fee is reasonable because it is reasonably aligned with the value and benefits provided to users that choose to subscribe to the Cboe Premium Exchange Tools on the Exchange. As discussed above, Premium Exchange Tools provides users with an easily accessible tool that allows them to access certain execution and latency information from a single interface and provides such information in a convenient, user-friendly format. Also as described above, information provided by Premium Exchange Tools relates to the subscribing user’s activity on the Exchange, and users may generally access and aggregate this information by other means, including its own internal systems, without a subscription to Premium Exchange Tools. As such, the Exchange believes that if a user determines that the fee is not cost-efficient for its needs, it may decline to subscribe to Premium Exchange Tools and access such information from other sources. Indeed, the Cboe Premium Tools is a completely voluntary product, and the Exchange is not required by any rule or regulation to offer the reports or services provided under the Cboe Premium Exchange Tools. Nonetheless, such tools may be beneficial to Members and nonMembers as they provide various valueadded Exchange reports and services. Providing the Cboe Premium Exchange Tools to users requires the Exchange to allocate additional resources to create, manage, and support the services and reports. Therefore, the Exchange believes that it is reasonable to assess a modest fee to users that subscribe to the Cboe Premium Exchange Tools. 24 Nasdaq similarly noted that users of TradeInfo are able to calculate latencies included in the Latency Optics add-on service as the underlying transaction information is timestamped. See Securities and Exchange Act No. 90772 (December 22, 2020) 85 FR 86632 (December 30, 2020) (SR– NASDAQ–2020–088). VerDate Sep<11>2014 16:49 Sep 17, 2021 Jkt 253001 The Exchange further believes the proposed fee is reasonable because the amount assessed is less than the analogous fees charged by Nasdaq, Nasdaq BX, and PHLX. The TradeInfo product offered by the aforementioned exchanges provides users the status of orders, executions, cancels and breaks, and provides the ability to cancel orders. Further, to view a variety of trading data, users can generate several different types of reports such as execution reports.25 As described above, the Cboe Premium Exchange Tools will offer similar data to that provided by Nasdaq, Nasdaq BX, and PHLX while, the Exchange’s proposed fee for the Cboe Premium Tools at $65 per month per user, is lower than each of the Nasdaq, Nasdaq BX, and PHLX fees for similar information which charge $95 per user. The Exchange believes that the proposed fee is equitable and not unfairly discriminatory because it will apply to all Members and non-Members that choose to subscribe to the Cboe Premium Exchange Tools equally. As stated, the services and reports provided by the Cboe Premium Exchange Tools are completely optional and not necessary for trading. Rather, the Exchange voluntarily makes the Cboe Premium Exchange Tools available and users may choose to subscribe (and pay for) the Cboe Premium Exchange Tools based on their own individual business needs. Potential subscribers may subscribe to Cboe Premium Exchange Tools at any time if they believe it to be valuable or may decline to purchase such services and reports. 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 because the proposed Cboe Premium Exchange Tools will be available equally to all Members and non-Members that choose to subscribe to such tools. As stated, the Cboe Premium Exchange Tools are optional and Members and nonMembers may choose to subscribe to such tools, or not, based on their view of the additional benefits and added value provided by utilizing the reports or services offered by the Cboe Premium Exchange Tools. Next, the Exchange believes the proposed rule change does not impose any burden on intermarket competition that is not necessary or appropriate in 25 See https://www.nasdaqtrader.com/ Trader.aspx?id=tradeinfo. PO 00000 Frm 00142 Fmt 4703 Sfmt 4703 furtherance of the purposes of the Act. As previously discussed, Nasdaq currently offers products that include similar information to that proposed under the Cboe Premium Exchange Tools. Moreover, the Commission has repeatedly expressed its preference for competition over regulatory intervention in determining prices, products, and services in the securities markets. Specifically, in Regulation NMS, the Commission highlighted the importance of market forces in determining prices and SRO revenues and, also, recognized that current regulation of the market system ‘‘has been remarkably successful in promoting market competition in its broader forms that are most important to investors and listed companies.’’ The fact that this market is competitive has also long been recognized by the courts. In NetCoalition v. Securities and Exchange Commission, the D.C. Circuit stated as follows: ‘‘[N]o one disputes that competition for order flow is ‘fierce.’ ’’ . . . As the SEC explained, ‘[i]’n the U.S. national market system, buyers and sellers of securities, and the broker-dealers that act as their orderrouting agents, have a wide range of choices of where to route orders for execution’; [and] ‘no exchange can afford to take its market share percentages for granted’ because ‘no exchange possesses a monopoly, regulatory or otherwise, in the execution of order flow from broker dealers’ . . . .’’. Accordingly, the Exchange does not believe its proposal imposes any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. 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 E:\FR\FM\20SEN1.SGM 20SEN1 Federal Register / Vol. 86, No. 179 / Monday, September 20, 2021 / Notices 19(b)(3)(A) of the Act 26 and Rule 19b– 4(f)(6) thereunder.27 A proposed rule change filed under Rule 19b–4(f)(6) 28 normally does not become operative prior to 30 days after the date of the filing. However, Rule 19b–4(f)(6)(iii) 29 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has proposed to implement this proposed rule change on August 31, 2021 and has asked the Commission to waive the 30-day operative delay for this filing. The Exchange states that the proposed data to be included in the proposed Cboe Premium Exchange Tools is already generally available to all users without a subscription to Cboe Premium Exchange Tools and/or is substantially similar to information that was historically, or currently is, included in similar products offered on Nasdaq.30 The Commission believes waiver of the operative delay will allow a description of Cboe Premium Exchange Tools product to be immediately reflected in the Exchange’s rules and is consistent with the protection of investors and the public interest because the proposed rule change does not raise any new or novel issues. Accordingly, the Commission hereby waives the 30-day operative delay and designates the proposed rule change as operative upon filing.31 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. 26 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its 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 Commission has waived that requirement in this case. 28 17 CFR 240.19b–4(f)(6). 29 17 CFR 240.19b–4(f)(6)(iii). 30 See supra notes 21–24. 31 For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 27 17 VerDate Sep<11>2014 16:49 Sep 17, 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 No. SR– CboeBZX–2021–047 on the subject line. • 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 No. SR-CboeBZX–2021–047. 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 No. SR–CboeBZX–2021–047, and should be submitted on or before October 12, 2021. CFR 200.30–3(a)(12). Frm 00143 Fmt 4703 [FR Doc. 2021–20210 Filed 9–17–21; 8:45 am] BILLING CODE 8011–01–P [Investment Company Act Release No. 34374; File No. 812–15218] Pomona Investment Fund, et al. September 14, 2021. Securities and Exchange Commission (‘‘Commission’’). ACTION: Notice. AGENCY: Paper Comments PO 00000 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.32 J. Matthew DeLesDernier, Assistant Secretary. SECURITIES AND EXCHANGE COMMISSION Electronic Comments 32 17 52265 Sfmt 4703 Notice of application for an order under section 17(d) of the Investment Company Act of 1940 (the ‘‘Act’’) and rule 17d–1 under the Act to permit certain joint transactions otherwise prohibited by section 17(d) of the Act and rule 17d–1 under the Act. SUMMARY OF APPLICATION: Applicants request an order to permit certain closed-end management investment companies to co-invest in portfolio companies with each other and with certain affiliated investment funds and accounts. APPLICANTS: Pomona Investment Fund (the ‘‘Fund’’); Pomona Management LLC (‘‘Pomona’’); Pomona Capital X, L.P., Pomona Capital IX L.P. and Pomona Partnership Holdings VIII, L.P., (collectively, the ‘‘Existing Affiliated Funds’’). FILING DATES: The application was filed on April 19, 2021, and amended on July 13, 2021. HEARING OR NOTIFICATION OF HEARING: An order granting the requested relief will be issued unless the Commission orders a hearing. Interested persons may request a hearing by emailing the Commission’s Secretary at SecretarysOffice@sec.gov and serving Applicants with a copy of the request by email. Hearing requests should be received by the Commission by 5:30 p.m. on October 12, 2021 and should be accompanied by proof of service on the Applicants, in the form of an affidavit or, for lawyers, a certificate of service. Pursuant to rule 0–5 under the Act, hearing requests should state the nature of the writer’s interest, any facts bearing upon the desirability of a hearing on the matter, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by emailing the E:\FR\FM\20SEN1.SGM 20SEN1

Agencies

[Federal Register Volume 86, Number 179 (Monday, September 20, 2021)]
[Notices]
[Pages 52261-52265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-20210]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92970; File No. SR-CboeBZX-2021-047]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Rule 11.22 To Introduce a Product To Be Known as ``Cboe Premium 
Exchange Tools'' and To Amend Its Fee Schedule To Establish a Fee for a 
User Login That Elects To Subscribe to the Cboe Premium Exchange Tools

September 14, 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 BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') 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.
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    \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).

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[[Page 52262]]

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

    Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') proposes to 
amend Rule 11.22 to introduce a new product to be known as ``Cboe 
Premium Exchange Tools'' and to amend its Fee Schedule to establish a 
fee for a user login that elects to subscribe to the Cboe Premium 
Exchange Tools. 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 
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 Rule 11.22(b) to introduce a new 
product to be known as Cboe Premium Exchange Tools, as further 
described below, and to amend its Fee Schedule to adopt a monthly fee 
assessed to users that elect to subscribe to such Cboe Premium Exchange 
Tools, effective August 31, 2021.
Cboe Premium Exchange Tools
    Currently, Members,\5\ Sponsored Participants,\6\ and service 
bureaus are leveraging certain value-added tools (i.e., Cboe Premium 
Exchange Tools) on the Exchange to obtain certain information free of 
charge. Particularly, Cboe Premium Exchange Tools offers an easily 
accessible internet-based tool that allows users access to certain 
execution information for their firm through a single interface. Now, 
the Exchange proposes to amend Rule 11.22(b) to describe the Cboe 
Premium Exchange Tools in its Rules. Specifically, proposed Rule 
11.22(b) provides that the Cboe Premium Exchange Tools is a web-based 
tool designed to give a subscribing user the ability to track latency 
statics of the user's logical order entry ports or execution 
information of the Member or a Sponsored Participant of the Member. The 
proposed rule also provides that a user may obtain historical reports 
of such execution information, as further described below.\7\ Cboe 
Premium Exchange Tools is currently comprised of the following three 
reports: (i) Trade data report,\8\ (ii) latency statistics report,\9\ 
and (iii) volume history report.\10\
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    \5\ See Exchange Rule 1.5(n).
    \6\ See Exchange Rule 1.5(x).
    \7\ All information available to Members as described herein is 
historical information.
    \8\ Trade Data Reports may be obtained by a Member, or if 
authorized to do so a Sponsored Participant.
    \9\ Latency Statistics Reports may be obtained by a Member, 
Sponsored Participant or service bureaus as it relates to their 
respective logical order entry ports.
    \10\ Volume History Reports may be obtained by a Member.
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Trade Data Report
    The trade data report offers the ability for a user to view and/or 
export its Member's and, if applicable, a Sponsored Participant of the 
Member, granular execution detail.\11\ Specifically, the report 
currently includes the following information: Date, time, Member 
identifier, clearing member identifier, session, order identification, 
symbol, side (i.e., buy, sell, sell short), price, quantity, capacity 
(e.g., agent, principal), liquidity indicator (i.e., adder or remover 
of liquidity), order type,\12\ indicator as to whether order set or 
joined the national best bid or offer (``NBBO''),\13\ and associated 
fee code(s). The information is provided in order to aid Members in 
conducting their own reconciliations and assist in report generation, 
and, unlike the Volume History Report, is available on an execution-by-
execution basis.
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    \11\ Sponsored Participants may also subscribe to the Trade Data 
Report, provided that its Sponsoring Member provides the Exchange 
authorization to do so. Trade Data Reports provided to Sponsored 
Participants only include execution detail related to the Sponsored 
Participant.
    \12\ See Exchange Rule 11.9.
    \13\ Hidden orders that neither set or join the NBBO are 
identified as such within the report.
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Latency Statistics Report
    The latency statistics report offers functionality to view latency 
statistics relating to logical order entry ports, including a Member's 
orders, acknowledgements, and cancels, including roundtrip data from 
into the edge network device and back, which accounts for latency 
within the Exchange order gateways and matching engines. Specifically, 
the latency statistics report includes the following information: (i) 
The roundtrip time between the order entering the Exchange's network 
and the time the order acknowledgement leaves the Exchange's network, 
(ii) the roundtrip time between an order cancellation request and the 
time the order cancellation request acknowledgement leaves the 
Exchange's network, (iii) the roundtrip time between an order entering 
the Exchange's network and the time that the order appears on the 
Multicast PITCH feed, (iv) the roundtrip time for a Transmission 
Control Protocol (``TCP'') \14\ message sent by the Exchange to be 
acknowledged by the Member, and (v) averages a Member can expect for 
items (i) through (iii) across their own ports and across the entire 
system (i.e., across all Members). A Member, service bureau, or 
Sponsored Participant may view the latency statistics for orders that 
they send to the Exchange through their own respective logical order 
entry ports. The information included in the latency statistics report 
is designed to give users insight into the performance characteristics 
of their logical order entry ports.
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    \14\ TCP is a communications standard that enables application 
programs and computing devises to exchange messages over a network.
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Volume History Report
    The volume history report provides users the functionality to view 
the Member's, high level volume history on the Exchange, as well as 
more granular added, removed, and routed orders at a per Tape and MPID 
level or a per security level for the purpose of tracking and measuring 
outcomes.\15\ The tools offer functionality to allow a user to view 
aggregated volume history reports on behalf of the Member or a 
Sponsored Participant of the Member for the purpose of firm or client-
level reporting, administration, and risk management.
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    \15\ Information included in the Volume History Report includes 
all activity, including that executed on behalf of Sponsored 
Participants. Execution volume made on behalf of a Sponsored 
Participant is not delineated within the Volume History Report.
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Cboe Premium Exchange Tools Fee
    The Exchange also proposes to adopt a fee applicable to users that 
subscribe to the proposed Cboe Premium Exchange Tools. Specifically, as 
proposed, the Exchange would assess a monthly fee of $65 for each user 
login that subscribes to any of the reports and services that comprise 
the Cboe

[[Page 52263]]

Premium Exchange Tools. As discussed above, Premium Exchange Tools 
provides users with an easily accessible tool that allows them to 
access certain execution and latency information from a single 
interface and provides such information in a convenient, user-friendly 
format. Further, a number of enhancements have recently been made to 
the various reports and services included in the Cboe Premium Exchange 
Tools. For example, the trade data report has recently been enhanced to 
provide timestamps with microsecond granularity for added detail on a 
per trade basis. Therefore, the Exchange believes the assessment of 
such a fee aligns with the additional value and benefits provided to 
users that choose to subscribe to the Cboe Premium Exchange Tools. The 
Exchange also believes that the proposal is appropriate to balance the 
Exchange resource requirements in creating, managing, and supporting 
the services and reports provided by the Cboe Premium Exchange Tools.
    The Cboe Premium Exchange Tools fee will be assessed to a user for 
the entire month regardless of when the user receives access to the 
Premium Exchange Tools. If a user obtains or cancels a subscription to 
the Cboe Premium Exchange Tools on or after the first business day of 
the month, the user will be required to pay the entire Cboe Premium 
Exchange Tools fee for that month.
    The Exchange anticipates a number of users will subscribe to the 
Cboe Premium Exchange Tools. It is a completely voluntary product, in 
that the Exchange is not required by any rule or regulation to make the 
reports or services available and that potential subscribers may 
purchase it only if they voluntarily choose to do so. Further, the 
Exchange notes that other exchanges offer similar products.\16\
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    \16\ See the ``TradeInfo Fees'' offered on the Nasdaq Stock 
Exchange (``Nasdaq''), Nasdaq BX, Inc. (``Nasdaq BX''), and the 
Nasdaq PHLX LLC (``Phlx''), each of which assess a fee of $95 per 
user per month.
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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.\17\ Specifically, the 
Exchange believes the proposed rule change is consistent with Section 
6(b)(4) of the Act,\18\ which requires that Exchange rules provide for 
the equitable allocation of reasonable dues, fees, and other charges 
among its Members and other persons using its facilities. The Exchange 
also believes the proposed rule change is consistent with the Section 
6(b)(5) \19\ 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) \20\ requirement that the rules of an exchange not be designed 
to permit unfair discrimination between customers, issuers, brokers, or 
dealers.
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    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(4).
    \19\ 15 U.S.C. 78f(b)(5).
    \20\ Id.
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    The Exchange believes the proposal to amend Rule 11.22(b) to 
provide for the Cboe Premium Exchange Tools is reasonable for several 
reasons. First, certain of the underlying information available via the 
Cboe Premium Exchange Tools is otherwise generally available to users. 
While the proposal provides a value-added service by setting forth such 
information in a user-friendly format, the underlying data included in 
the trade data report and volume history report contains general 
Member-specific execution information to which a Member would have 
access to without subscribing to Premium Exchange Tools, (e.g., via 
their own order entry ports which include Member-provided order 
instructions, exchange-sent acknowledgement messages, and drop copies). 
Moreover, the data included in the trade data report and volume history 
report is substantially similar to data offered in the Nasdaq TradeInfo 
tool, which provides detailed data on the status of orders executions, 
cancels and breaks, and generates reports for download, and allows the 
member to cancel or correct open orders.\21\
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    \21\ See Securities and Exchange Act No. 90772 (December 22, 
2020) 85 FR 86632 (December 30, 2020) (SR-NASDAQ-2020-088) (Proposed 
rule change describing the withdrawal of Nasdaq's QView product from 
sale and that the information included therein will continue to be 
available via TradeInfo).
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    While certain underlying data included in the latency statistics 
report such as latency averages across the System is not otherwise 
available to Members, or where applicable, Sponsored Participants, or 
service bureaus, the Exchange notes such users can obtain similar 
information on their own latency statistics relating to their orders, 
acknowledgements, TCP messages, and cancels, including roundtrip data 
from out of their edge network device and back without subscribing to 
Premium Exchange Tools. Particularly, users are able to calculate these 
latencies on their own servers as the underlying transaction 
information is timestamped, which would similarly account for the 
latency throughout the Exchange side of the network (i.e., the Exchange 
does not believe latency statistics calculated by users themselves 
would be materially different from the Exchange's calculations). The 
Exchange notes that although latency information related to averages 
across the system would not otherwise be available to Members, 
Sponsored Participants or service bureaus absent subscribing to Premium 
Exchange Tools, providing users such information is not novel as 
similar information was historically made available in an offering by 
Nasdaq. Specifically, prior to its decommission in December of 2020, 
Nasdaq provided summary latency statistics via its QView tool which 
provided members that subscribed to QView Latency Optics add-on service 
the ability to monitor three types of latency for order messages and 
compare that latency to the average on the Nasdaq System.\22\ The 
specific latency statistics included: (i) The roundtrip time between 
order entry and receipt of acknowledgement; (ii) roundtrip time between 
order entry and the time that the order appears on the TotalView ITCH 
multicast feed; and (iii) the roundtrip time between the entry of an 
order cancellation request and the time that the message in reply is 
received by the client device.\23\ Similarly as noted above, the 
Exchange's proposed latency statistics report provides users averages 
across the entire System for three types of latency: (i) The roundtrip 
time between the order entering the Exchange's network and the time the 
order acknowledgement leaves the Exchange's network, (ii) the roundtrip 
time between an order cancellation request and the

[[Page 52264]]

time the order cancellation request acknowledgement leaves the 
Exchange's network, (iii) the roundtrip time between an order entering 
the Exchange's network and the time that the order appears on the 
Multicast PITCH feed. Even after QView was decommissioned, the 
underlying data needed to generate the latency statistics (other than 
for averages across the Nasdaq system) for each member was and 
continues to be available via the Nasdaq TradeInfo tool.\24\
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    \22\ See Securities Exchange Act Release No. 68617 (January 10, 
2013), 78 FR 3480 (January 16, 2013) (SR-Nasdaq-2013-005) 
(introducing the Latency Optics add-on). See also Securities 
Exchange Act Release No. 82003 (November 2, 2017), 82 FR 51894 
(November 8, 2017) (SR-Nasdaq-2017-113) (proposed rule change that 
also describes the Latency Optics add-on service, which provided, 
among other things, subscribing members the ability to compare their 
latency to the average of the Nasdaq system).
    \23\ Id.
    \24\ Nasdaq similarly noted that users of TradeInfo are able to 
calculate latencies included in the Latency Optics add-on service as 
the underlying transaction information is timestamped. See 
Securities and Exchange Act No. 90772 (December 22, 2020) 85 FR 
86632 (December 30, 2020) (SR-NASDAQ-2020-088).
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    The Exchange believes that the proposed fee for the Cboe Premium 
Exchange Tools is consistent with the Act in that it is reasonable, 
equitable, and not unfairly discriminatory. In particular, the Exchange 
believes that the proposed fee is reasonable because it is reasonably 
aligned with the value and benefits provided to users that choose to 
subscribe to the Cboe Premium Exchange Tools on the Exchange. As 
discussed above, Premium Exchange Tools provides users with an easily 
accessible tool that allows them to access certain execution and 
latency information from a single interface and provides such 
information in a convenient, user-friendly format. Also as described 
above, information provided by Premium Exchange Tools relates to the 
subscribing user's activity on the Exchange, and users may generally 
access and aggregate this information by other means, including its own 
internal systems, without a subscription to Premium Exchange Tools. As 
such, the Exchange believes that if a user determines that the fee is 
not cost-efficient for its needs, it may decline to subscribe to 
Premium Exchange Tools and access such information from other sources. 
Indeed, the Cboe Premium Tools is a completely voluntary product, and 
the Exchange is not required by any rule or regulation to offer the 
reports or services provided under the Cboe Premium Exchange Tools. 
Nonetheless, such tools may be beneficial to Members and non-Members as 
they provide various value-added Exchange reports and services. 
Providing the Cboe Premium Exchange Tools to users requires the 
Exchange to allocate additional resources to create, manage, and 
support the services and reports. Therefore, the Exchange believes that 
it is reasonable to assess a modest fee to users that subscribe to the 
Cboe Premium Exchange Tools.
    The Exchange further believes the proposed fee is reasonable 
because the amount assessed is less than the analogous fees charged by 
Nasdaq, Nasdaq BX, and PHLX. The TradeInfo product offered by the 
aforementioned exchanges provides users the status of orders, 
executions, cancels and breaks, and provides the ability to cancel 
orders. Further, to view a variety of trading data, users can generate 
several different types of reports such as execution reports.\25\ As 
described above, the Cboe Premium Exchange Tools will offer similar 
data to that provided by Nasdaq, Nasdaq BX, and PHLX while, the 
Exchange's proposed fee for the Cboe Premium Tools at $65 per month per 
user, is lower than each of the Nasdaq, Nasdaq BX, and PHLX fees for 
similar information which charge $95 per user.
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    \25\ See https://www.nasdaqtrader.com/Trader.aspx?id=tradeinfo.
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    The Exchange believes that the proposed fee is equitable and not 
unfairly discriminatory because it will apply to all Members and non-
Members that choose to subscribe to the Cboe Premium Exchange Tools 
equally. As stated, the services and reports provided by the Cboe 
Premium Exchange Tools are completely optional and not necessary for 
trading. Rather, the Exchange voluntarily makes the Cboe Premium 
Exchange Tools available and users may choose to subscribe (and pay 
for) the Cboe Premium Exchange Tools based on their own individual 
business needs. Potential subscribers may subscribe to Cboe Premium 
Exchange Tools at any time if they believe it to be valuable or may 
decline to purchase such services and reports.

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 because the proposed Cboe 
Premium Exchange Tools will be available equally to all Members and 
non-Members that choose to subscribe to such tools. As stated, the Cboe 
Premium Exchange Tools are optional and Members and non-Members may 
choose to subscribe to such tools, or not, based on their view of the 
additional benefits and added value provided by utilizing the reports 
or services offered by the Cboe Premium Exchange Tools.
    Next, the Exchange believes the proposed rule change does not 
impose any burden on intermarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. As previously 
discussed, Nasdaq currently offers products that include similar 
information to that proposed under the Cboe Premium Exchange Tools. 
Moreover, the Commission has repeatedly expressed its preference for 
competition over regulatory intervention in determining prices, 
products, and services in the securities markets. Specifically, in 
Regulation NMS, the Commission highlighted the importance of market 
forces in determining prices and SRO revenues and, also, recognized 
that current regulation of the market system ``has been remarkably 
successful in promoting market competition in its broader forms that 
are most important to investors and listed companies.'' The fact that 
this market is competitive has also long been recognized by the courts. 
In NetCoalition v. Securities and Exchange Commission, the D.C. Circuit 
stated as follows: ``[N]o one disputes that competition for order flow 
is `fierce.' '' . . . As the SEC explained, `[i]'n the U.S. national 
market system, buyers and sellers of securities, and the broker-dealers 
that act as their order-routing agents, have a wide range of choices of 
where to route orders for execution'; [and] `no exchange can afford to 
take its market share percentages for granted' because `no exchange 
possesses a monopoly, regulatory or otherwise, in the execution of 
order flow from broker dealers' . . . .''. Accordingly, the Exchange 
does not believe its proposal imposes any burden on competition that is 
not necessary or appropriate in furtherance of the purposes of the Act.

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

[[Page 52265]]

19(b)(3)(A) of the Act \26\ and Rule 19b-4(f)(6) thereunder.\27\
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    \26\ 15 U.S.C. 78s(b)(3)(A).
    \27\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its 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 Commission has waived that requirement in this case.
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    A proposed rule change filed under Rule 19b-4(f)(6) \28\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, Rule 19b-4(f)(6)(iii) \29\ permits the Commission to 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has 
proposed to implement this proposed rule change on August 31, 2021 and 
has asked the Commission to waive the 30-day operative delay for this 
filing. The Exchange states that the proposed data to be included in 
the proposed Cboe Premium Exchange Tools is already generally available 
to all users without a subscription to Cboe Premium Exchange Tools and/
or is substantially similar to information that was historically, or 
currently is, included in similar products offered on Nasdaq.\30\ The 
Commission believes waiver of the operative delay will allow a 
description of Cboe Premium Exchange Tools product to be immediately 
reflected in the Exchange's rules and is consistent with the protection 
of investors and the public interest because the proposed rule change 
does not raise any new or novel issues. Accordingly, the Commission 
hereby waives the 30-day operative delay and designates the proposed 
rule change as operative upon filing.\31\
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    \28\ 17 CFR 240.19b-4(f)(6).
    \29\ 17 CFR 240.19b-4(f)(6)(iii).
    \30\ See supra notes 21-24.
    \31\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-CboeBZX-2021-047 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 No. SR-CboeBZX-2021-047. 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 No. SR-CboeBZX-2021-047, and should be submitted 
on or before October 12, 2021.
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    \32\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\32\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-20210 Filed 9-17-21; 8:45 am]
BILLING CODE 8011-01-P
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