Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish a New Rule Requiring Members To Input Accurate Information Into BX Systems, 54770-54772 [2021-21481]
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54770
Federal Register / Vol. 86, No. 189 / Monday, October 4, 2021 / Notices
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–EMERALD–2021–29. 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–EMERALD–2021–29 and
should be submitted on or before
October 25, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.59
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–21492 Filed 10–1–21; 8:45 am]
BILLING CODE 8011–01–P
59 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
22:52 Oct 01, 2021
Jkt 256001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93160; File Nos. SR–NYSE–
2021–25, SR–NYSEAMER–2021–21, SR–
NYSEArca–2021–24, SR–NYSECHX–2021–
07, SR–NYSENAT–2021–09]
Self-Regulatory Organizations; New
York Stock Exchange LLC, NYSE
American LLC, NYSE Arca, Inc., NYSE
Chicago, Inc., and NYSE National, Inc.;
Notice of Designation of a Longer
Period for Commission Action on
Proceedings To Determine Whether To
Approve or Disapprove Proposed Rule
Changes To Amend the Fee Schedule
To Add Meet-Me-Room Connectivity
Services Available at the Mahwah Data
Center
September 28, 2021.
On April 9, 2021, New York Stock
Exchange LLC, NYSE American LLC,
NYSE Arca, Inc., NYSE Chicago, Inc.,
and NYSE National, Inc. each filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend the schedule of
connectivity services available at the
Mahwah data center to add services
available to customers in the meet me
rooms in the Mahwah data center and
procedures for the allocation of cabinets
and power to such customers. The
proposed rule changes were published
for comment in the Federal Register on
April 22, 2021.3 On June 2, 2021,
pursuant to Section 19(b)(2) of the Act,4
the Commission designated a longer
period within which to either approve
the proposed rule changes, disapprove
the proposed rule changes, or institute
proceedings to determine whether to
approve or disapprove the proposed
rule changes.5 On July 9, 2021, the
Commission instituted proceedings to
determine whether to approve or
disapprove the proposed rule changes.6
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release Nos. 91598
(April 16, 2021), 86 FR 21373 (April 22, 2021) (SR–
NYSE–2021–25); 91599 (April 16, 2021), 86 FR
21365 (April 22, 2021) (SR–NYSEAMER–2021–21);
91600 (April 16, 2021), 86 FR 21384 (April 22,
2021) (SR–NYSEArca–2021–24); 91601 (April 16,
2021), 86 FR 21410 (April 22, 2021) (SR–
NYSECHX–2021–07); and 91602 (April 16, 2021),
86 FR 21393 (April 22, 2021) (SR–NYSENAT–2021–
09) (collectively, the ‘‘Notices’’).
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 92089
(June 2, 2021), 86 FR 30510 (June 8, 2021). The
Commission designated July 21, 2021, as the date
by which it should approve, disapprove, or institute
proceedings to determine whether to approve or
disapprove the proposed rule changes.
6 See Securities Exchange Act Release No. 92368
(July 9, 2021), 86 FR 37356 (July 15, 2021).
2 17
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
The Commission has received no
comment letters on the proposed rule
changes.
Section 19(b)(2) of the Act 7 provides
that, after initiating proceedings, the
Commission shall issue an order
approving or disapproving the proposed
rule change not later than 180 days after
the date of publication of notice of filing
of the proposed rule change. The
Commission may extend the period for
issuing an order approving or
disapproving the proposed rule change,
however, by not more than 60 days if
the Commission determines that a
longer period is appropriate and
publishes the reasons for such
determination. The proposed rule
changes were published for notice and
comment in the Federal Register on
April 22, 2021.8 October 19, 2021 is 180
days from that date, and December 18,
2021 is 240 days from that date.
The Commission finds it appropriate
to designate a longer period within
which to issue an order approving or
disapproving the proposed rule changes
so that it has sufficient time to consider
the proposed rule changes. Accordingly,
the Commission, pursuant to Section
19(b)(2) of the Act,9 designates
December 18, 2021 as the date by which
the Commission should either approve
or disapprove the proposed rule changes
(File Nos. SR–NYSE–2021–25, SR–
NYSEAMER–2021–21, SR–NYSEArca–
2021–24, SR–NYSECHX–2021–07, SR–
NYSENAT–2021–09).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–21489 Filed 10–1–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93143; File No. SR–BX–
2021–042]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Establish a New Rule
Requiring Members To Input Accurate
Information Into BX Systems
September 28, 2021.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
7 15
U.S.C. 78s(b)(2).
Notices, supra note 3.
9 15 U.S.C. 78s(b)(2).
10 17 CFR 200.30–3(a)(31).
8 See
E:\FR\FM\04OCN1.SGM
04OCN1
Federal Register / Vol. 86, No. 189 / Monday, October 4, 2021 / Notices
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 22, 2021, Nasdaq BX, Inc.
(‘‘BX’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to establish a
new rule applicable to the Nasdaq BX
Equities Market (the ‘‘Equities Market’’)
that explicitly requires members to
input accurate information into BX
systems.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/bx/rules, at the principal office
of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In 2009, The Nasdaq Stock Market
LLC (‘‘Nasdaq’’) adopted provisions that
required its members to input accurate
information into the Nasdaq Market
Center and Nasdaq Options Market.3
The Exchange proposes to adopt a rule
identical to Nasdaq Equity 2, Section
3(a)(6) 4 that makes clear its members’
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Securities Exchange Act Release No. 59547
(March 10, 2009), 74 FR 11386 (March 17, 2009)
(SR–NASDAQ–2009–014).
4 Nasdaq Equity 2, Section 3 was previously
numbered Nasdaq Rule 4611; however, the rule was
renumbered and relocated in 2020. See Securities
Exchange Act Release No. 34–90577 (December 7,
2 17
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22:52 Oct 01, 2021
Jkt 256001
responsibility to input accurate
quotation and order information into the
Equities Market.5 The Equities Market
requires entry of certain information to
post a quote or to enter an order. Such
information, among other things,
identifies the member, the size and
price of the order or quote, and the
member’s capacity in placing an order.
Accurate trade and quote information is
fundamental to the operation of an
efficient and fair market.
Moreover, the information input by
members when posting a quote or
placing an order is used for purposes of
policing the Equities Market. For
instance, the Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
conducts trade abuse surveillances of
the Equities Market on the Exchange’s
behalf. The trade abuse surveillances
use capacity information input by
members. A member’s capacity in a
trade concerns whether the member is
acting as an agent, principal, or
‘‘riskless’’ principal in the transaction.
Accordingly, accurate input of capacity
information is of fundamental
regulatory importance. BX does not
have a rule that makes an explicit
statement regarding a member’s
obligation to input accurate information
into the Equities Market. (That said, BX
believes that disciplinary cases against
members entering inaccurate or
incomplete information may be brought
appropriately under BX General 9,
Section 1(a), which requires members to
observe high standards of commercial
honor and just and equitable principles
of trade. BX General 9, Section 1(a) also
protects the investing public and the
securities industry from dishonest
practices that are unfair to investors or
hinder the functioning of a free and
open market, even though those
practices may not be illegal or violate a
specific rule or regulation.) Because of
the regulatory importance of accurate
information input into the Equities
Market, the Exchange believes rules that
directly address members’ obligation to
provide accurate information are
appropriate. The proposed rule makes
clear the members’ obligation to input
accurate information into the Equities
Market, and that failure to do so would
be considered a violation of BX rules.
The Exchange notes that FINRA has
rules that require the accurate entry of
certain trade information into its
systems. For example, FINRA Rule
7330(d) requires FINRA members to
report to the OTC Reporting Facility
certain specific trade-related
2020), 85 FR 80202 (December 11, 2020) (SR–
NASDAQ–2020–079).
5 As defined in BX Equity 1, Section 1(a)(6).
PO 00000
Frm 00099
Fmt 4703
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54771
information. A failure to provide such
information represents a violation of
FINRA rules, and may result in
disciplinary action. FINRA has
substantially similar requirements for
other trade reporting systems it
operates.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,6 in general, and furthers the
objectives of Section 6(b)(5) of the Act,7
in particular, in that the proposal is
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. The proposed
amendments will serve to promote the
accuracy of information input into the
Equities Market. Accurate information is
necessary for the efficient and fair
operation of the Equities Market, and
will assist the Exchange in surveilling
the markets for fraudulent activity.
The Exchange also believes that the
creation of this rule will bring greater
transparency and will harmonize its
rules with those of its affiliated
exchange, Nasdaq, by giving its
members the ability to compare the
rules in their respective rulebooks.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that the proposed
amendments do not impose an undue
burden on competition because the
proposed rule will make clear the
members’ obligation to input accurate
quotation and order information into the
Equities Market. Moreover, the
proposed rule will align the rules of the
Exchange closer to the rules of The
Nasdaq Stock Market, which previously
adopted an identical provision.
6 15
7 15
E:\FR\FM\04OCN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
04OCN1
54772
Federal Register / Vol. 86, No. 189 / Monday, October 4, 2021 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) thereunder.9
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 rule-comments@
sec.gov. Please include File Number SR–
BX–2021–042 on the subject line.
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–BX–2021–042 and should
be submitted on or before October 25,
2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–21481 Filed 10–1–21; 8:45 am]
BILLING CODE 8011–01–P
9 17
22:52 Oct 01, 2021
Jkt 256001
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Order Granting
Approval of a Proposed Rule Change
To Amend Rule 14.11(m) (Tracking
Fund Shares) To Provide for the Use of
Custom Baskets Consistent With the
Exemptive Relief Issued Pursuant to
the Investment Company Act of 1940
Applicable to a Series of Tracking
Fund Shares
September 28, 2021.
I. Introduction
On August 3, 2021, Cboe BZX
Exchange, Inc. (‘‘Exchange’’ or ‘‘BZX’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Exchange
Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change to amend BZX
Rule 14.11(m) (Tracking Fund Shares) to
provide for the use of custom baskets
consistent with the exemptive relief
issued pursuant to the Investment
Company Act of 1940 (‘‘1940 Act’’) 3
applicable to a series of Tracking Fund
Shares. The proposed rule change was
published for comment in the Federal
Register on August 16, 2021.4 The
Commission has received no comments
on the proposed rule change. The
Commission is approving the proposed
rule change.
II. Description
The Exchange proposes to amend
BZX Rule 14.11(m), which permits the
listing and trading of series of Tracking
Fund Shares. BZX Rule 14.11(m)
currently requires that Tracking Fund
Shares be issued and redeemed in a
specified aggregate minimum number in
return for the Tracking Basket 5 and/or
cash.6 The Exchange proposes to amend
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 80a.
4 See Securities Exchange Act Release No. 92626
(August 10, 2021), 86 FR 45792.
5 The term ‘‘Tracking Basket’’ means the
identities and quantities of the securities and other
assets included in a basket that is designed to
closely track the daily performance of the Fund
Portfolio, as provided in the exemptive relief under
the 1940 Act applicable to a series of Tracking Fund
Shares. See BZX Rule 14.11(m)(3)(E). The term
‘‘Fund Portfolio’’ means the identities and
quantities of the securities and other assets held by
the investment company registered under the 1940
Act (‘‘Investment Company’’) that will form the
basis for the Investment Company’s calculation of
net asset value (‘‘NAV’’) at the end of the business
day. See BZX Rule 14.11(m)(3)(B).
6 See BZX Rule 14.11(m)(3)(A) (defining the term
‘‘Tracking Fund Share’’).
2 17
8 15
VerDate Sep<11>2014
[Release No. 34–93147; File No. SR–
CboeBZX–2021–053]
1 15
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BX–2021–042. This file
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 Exchange
has satisfied this requirement.
SECURITIES AND EXCHANGE
COMMISSION
10 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00100
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]]>Agencies
[Federal Register Volume 86, Number 189 (Monday, October 4, 2021)]
[Notices]
[Pages 54770-54772]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-21481]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93143; File No. SR-BX-2021-042]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Establish a New
Rule Requiring Members To Input Accurate Information Into BX Systems
September 28, 2021.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 54771]]
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 22, 2021, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to establish a new rule applicable to the
Nasdaq BX Equities Market (the ``Equities Market'') that explicitly
requires members to input accurate information into BX systems.
The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/bx/rules, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
In 2009, The Nasdaq Stock Market LLC (``Nasdaq'') adopted
provisions that required its members to input accurate information into
the Nasdaq Market Center and Nasdaq Options Market.\3\ The Exchange
proposes to adopt a rule identical to Nasdaq Equity 2, Section 3(a)(6)
\4\ that makes clear its members' responsibility to input accurate
quotation and order information into the Equities Market.\5\ The
Equities Market requires entry of certain information to post a quote
or to enter an order. Such information, among other things, identifies
the member, the size and price of the order or quote, and the member's
capacity in placing an order. Accurate trade and quote information is
fundamental to the operation of an efficient and fair market.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 59547 (March 10, 2009),
74 FR 11386 (March 17, 2009) (SR-NASDAQ-2009-014).
\4\ Nasdaq Equity 2, Section 3 was previously numbered Nasdaq
Rule 4611; however, the rule was renumbered and relocated in 2020.
See Securities Exchange Act Release No. 34-90577 (December 7, 2020),
85 FR 80202 (December 11, 2020) (SR-NASDAQ-2020-079).
\5\ As defined in BX Equity 1, Section 1(a)(6).
---------------------------------------------------------------------------
Moreover, the information input by members when posting a quote or
placing an order is used for purposes of policing the Equities Market.
For instance, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') conducts trade abuse surveillances of the Equities Market
on the Exchange's behalf. The trade abuse surveillances use capacity
information input by members. A member's capacity in a trade concerns
whether the member is acting as an agent, principal, or ``riskless''
principal in the transaction. Accordingly, accurate input of capacity
information is of fundamental regulatory importance. BX does not have a
rule that makes an explicit statement regarding a member's obligation
to input accurate information into the Equities Market. (That said, BX
believes that disciplinary cases against members entering inaccurate or
incomplete information may be brought appropriately under BX General 9,
Section 1(a), which requires members to observe high standards of
commercial honor and just and equitable principles of trade. BX General
9, Section 1(a) also protects the investing public and the securities
industry from dishonest practices that are unfair to investors or
hinder the functioning of a free and open market, even though those
practices may not be illegal or violate a specific rule or regulation.)
Because of the regulatory importance of accurate information input into
the Equities Market, the Exchange believes rules that directly address
members' obligation to provide accurate information are appropriate.
The proposed rule makes clear the members' obligation to input accurate
information into the Equities Market, and that failure to do so would
be considered a violation of BX rules.
The Exchange notes that FINRA has rules that require the accurate
entry of certain trade information into its systems. For example, FINRA
Rule 7330(d) requires FINRA members to report to the OTC Reporting
Facility certain specific trade-related information. A failure to
provide such information represents a violation of FINRA rules, and may
result in disciplinary action. FINRA has substantially similar
requirements for other trade reporting systems it operates.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\7\ in particular, in that the proposal is 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. The proposed amendments will
serve to promote the accuracy of information input into the Equities
Market. Accurate information is necessary for the efficient and fair
operation of the Equities Market, and will assist the Exchange in
surveilling the markets for fraudulent activity.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange also believes that the creation of this rule will
bring greater transparency and will harmonize its rules with those of
its affiliated exchange, Nasdaq, by giving its members the ability to
compare the rules in their respective rulebooks.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes that the
proposed amendments do not impose an undue burden on competition
because the proposed rule will make clear the members' obligation to
input accurate quotation and order information into the Equities
Market. Moreover, the proposed rule will align the rules of the
Exchange closer to the rules of The Nasdaq Stock Market, which
previously adopted an identical provision.
[[Page 54772]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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 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 change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-BX-2021-042 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-BX-2021-042. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-BX-2021-042 and should be submitted on
or before October 25, 2021.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-21481 Filed 10-1-21; 8:45 am]
BILLING CODE 8011-01-P
