Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend BX's Pricing Schedule at Options 7, Section 1, General Provisions, 71106-71108 [2021-26969]
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71106
Federal Register / Vol. 86, No. 237 / Tuesday, December 14, 2021 / Notices
This Notice will be published in the
Federal Register.
Erica A. Barker,
Secretary.
[FR Doc. 2021–27002 Filed 12–13–21; 8:45 am]
BILLING CODE 7710–FW–P
OFFICE OF SCIENCE AND
TECHNOLOGY POLICY
U.S. Global Change Research Program
(USGCRP) Prospectus for its National
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ACTION: Notice; correction.
AGENCY:
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18:24 Dec 13, 2021
Jkt 256001
Dated: December 9, 2021.
Stacy Murphy,
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[FR Doc. 2021–27037 Filed 12–13–21; 8:45 am]
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In notice document 2021–26729,
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[FR Doc. C1–2021–26729 Filed 12–13–21; 8:45 am]
BILLING CODE 0099–10–D
SECURITIES AND EXCHANGE
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[Release No. 34–93739; File No. SR–BX–
2021–053]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend BX’s Pricing
Schedule at Options 7, Section 1,
General Provisions
December 8, 2021.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’),2 and Rule 19b–4 thereunder,3
notice is hereby given that on December
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
PO 00000
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1, 2021, Nasdaq BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
BX’s Pricing Schedule at Options 7,
Section 1, General Provisions.
While the changes proposed herein
are effective upon filing, the Exchange
has designated the amendments become
operative on December 1, 2021.
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
BX proposes to amend its Pricing
Schedule at Options 7, Section 1,
General Provisions. Specifically, BX
proposes to amend the way an Exchange
Participant indicates its participation in
the Affiliated Entity Program.
Specifically, the Exchange proposes to
amend the description of ‘‘Affiliated
Entity’’ within Options 7, Section 1,
General Provisions. Currently, the term
‘‘Affiliated Entity’’ is described as,
a relationship between an Appointed MM
and an Appointed OFP for purposes of
aggregating eligible volume for pricing in
Options 7, Section 2(1) for which a volume
threshold or volume percentage is required to
qualify for higher rebates or lower fees. BX
Options Market Makers and OFPs are
required to send an email to the Exchange to
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Federal Register / Vol. 86, No. 237 / Tuesday, December 14, 2021 / Notices
appoint their counterpart, at least 3 business
days prior to the last day of the month to
qualify for the next month. The Exchange
will acknowledge receipt of the emails and
specify the date the Affiliated Entity is
eligible for applicable pricing in Options 7,
Section 2(1). Each Affiliated Entity
relationship will commence on the 1st of a
month and may not be terminated prior to
the end of any month. An Affiliated Entity
relationship will terminate after a one (1)
year period, unless either party terminates
earlier in writing by sending an email to the
Exchange at least 3 business days prior to the
last day of the month to terminate for the
next month. Affiliated Entity relationships
must be renewed annually. Participants
under Common Ownership may not qualify
as a counterparty comprising an Affiliated
Entity. Each Participant may qualify for only
one (1) Affiliated Entity relationship at any
given time.
jspears on DSK121TN23PROD with NOTICES1
Today, Participants are required to
annually renew their Affiliate Entity
relationship at the end of one year if
they desire to continue the relationship.
The parties must both send an email to
the Exchange to avoid termination of the
relationship, provided the relationship
was not terminated earlier in the year.
The Exchange believes that this process
is burdensome for Participants that
desire to remain in the program. The
consequence of not renewing is
termination. The Exchange desires to
remove the administrative burden
associated with the requirement to
annually renew and instead provide that
the Affiliated Entity relationship will
automatically renew each month, unless
otherwise terminated. The proposed
new rule text would provide,
The term ‘‘Affiliated Entity’’ is a
relationship between an Appointed MM and
an Appointed OFP for purposes of
aggregating eligible volume for pricing in
Options 7, Section 2(1) for which a volume
threshold or volume percentage is required to
qualify for higher rebates or lower fees. BX
Options Market Makers and OFPs are
required to send an email to the Exchange to
appoint their counterpart, at least 3 business
days prior to the last day of the month to
qualify for the next month. The Exchange
will acknowledge receipt of the emails and
specify the date the Affiliated Entity is
eligible for applicable pricing in Options 7,
Section 2(1). Each Affiliated Entity
relationship will commence on the 1st of a
month and may not be terminated prior to
the end of any month. An Affiliated Entity
relationship will automatically renew each
month until or unless either party terminates
earlier in writing by sending an email to the
Exchange at least 3 business days prior to the
last day of the month to terminate for the
next month. Participants under Common
Ownership may not qualify as a counterparty
comprising an Affiliated Entity. Each
Participant may qualify for only one (1)
Affiliated Entity relationship at any given
time.
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18:24 Dec 13, 2021
Jkt 256001
As is the case today, parties to the
Affiliated Entity relationship may
decide to terminate the relationship
during any month by sending an email
to the Exchange at least 3 business days
prior to the last day of the month to
terminate for the next month. Cboe
Exchange, Inc. (‘‘Cboe’’) has a similar
automatic renewal process for its
Appointed OFP and Appointed MarketMaker Program.4 The Exchange believes
that this amendment will streamline the
workflow for Participants by not
requiring Participants to renew each
year to continue the affiliated
relationship.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,5 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,6 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees, and other charges
among members and issuers and other
persons using any facility, and is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Exchange’s proposal to amend
the way Exchange Participants indicate
their participation in the Affiliated
Entity Program is reasonable. Today,
Participants are required to annually
renew their Affiliated Entity
relationship at the end of one year if
they desire to continue the relationship.
The parties must both send an email to
the Exchange to avoid termination of the
relationship, provided the relationship
was not terminated earlier in the year.
The Exchange believes that this process
is burdensome for Participants that
desire to remain in the program. The
consequence of not renewing is
termination of their participation in the
4 See Cboe’s Fees Schedule at footnote 23 ‘‘A
Market-Maker may designate an Order Flow
Provider (‘‘OFP’’) as its ‘‘Appointed OFP’’ and an
OFP may designate a Market-Maker to be its
‘‘Appointed Market-Maker’’ for purposes of
qualifying for credits under AVP. In order to
effectuate the appointment, the parties would need
to submit the Appointed Affiliate Form to the
Exchange by 3:00 p.m. CST on the first business day
of the month in order to be eligible to qualify for
credits under AVP for that month. The Exchange
will recognize only one such designation for each
party once every calendar month, which
designation will automatically renew each month
until or unless the Exchange receives an email from
either party indicating that the appointment has
been terminated. A Market-Maker that has both an
Affiliate OFP and Appointed OFP will only qualify
based upon the volume of its Appointed OFP. The
volume of an OFP that has both an Affiliate MarketMaker and Appointed Market-Maker will only
count towards qualifying the Appointed MarketMaker. Volume executed in open outcry is not
eligible to receive a credit under AVP.’’
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4) and (5).
PO 00000
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71107
program. The Exchange desires to
remove the administrative burden
associated with the requirement to
annually renew and instead provide that
the Affiliated Entity relationship will
automatically renew each month, unless
otherwise terminated. As is the case
today, parties to the Affiliated Entity
relationship may decide to terminate the
relationship during any month by
sending an email to the Exchange at
least 3 business days prior to the last
day of the month to terminate for the
next month. Also, Cboe has a similar
automatic renewal process for its
Appointed OFP and Appointed MarketMaker Program.7 The Exchange believes
that this amendment will streamline the
workflow for Participants by not
requiring Participants to renew each
year to continue the affiliated
relationship.
The Exchange’s proposal to amend
the way Exchange Participants indicate
their participation in the Affiliated
Entity Program is equitable and not
unfairly discriminatory. Today, any
Participant may participate in the
Affiliated Entity Program. The proposed
changes would impact all Participants
that voluntarily elect to participate in
the Affiliated Entity Program in a
uniform manner.
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.
Inter-Market Competition
The proposal does not impose an
undue burden on inter-market
competition. Cboe has a similar
automatic renewal process for its
Appointed OFP and Appointed Market7 See Cboe’s Fees Schedule at footnote 23 ‘‘A
Market-Maker may designate an Order Flow
Provider (‘‘OFP’’) as its ‘‘Appointed OFP’’ and an
OFP may designate a Market-Maker to be its
‘‘Appointed Market-Maker’’ for purposes of
qualifying for credits under AVP. In order to
effectuate the appointment, the parties would need
to submit the Appointed Affiliate Form to the
Exchange by 3:00 p.m. CST on the first business day
of the month in order to be eligible to qualify for
credits under AVP for that month. The Exchange
will recognize only one such designation for each
party once every calendar month, which
designation will automatically renew each month
until or unless the Exchange receives an email from
either party indicating that the appointment has
been terminated. A Market-Maker that has both an
Affiliate OFP and Appointed OFP will only qualify
based upon the volume of its Appointed OFP. The
volume of an OFP that has both an Affiliate MarketMaker and Appointed Market-Maker will only
count towards qualifying the Appointed MarketMaker. Volume executed in open outcry is not
eligible to receive a credit under AVP.’’
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Federal Register / Vol. 86, No. 237 / Tuesday, December 14, 2021 / Notices
Maker Program 8 as proposed herein for
the Affiliated Entity Program.
Intra-Market Competition
The Exchange’s proposal to amend
the way Exchange Participants indicate
their participation in the Affiliated
Entity Program does not impose an
undue burden on competition. Today,
any Participant may participate in an
Affiliated Entity relationship. The
proposed changes would impact all
Participants that voluntarily elect to
participate in the Affiliated Entity
Program in a uniform manner.
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
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) 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.
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:
jspears on DSK121TN23PROD with NOTICES1
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–2021–053 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–2021–053. 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–2021–053, and should
be submitted on or before January 4,
2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–26969 Filed 12–13–21; 8:45 am]
BILLING CODE 8011–01–P
U.S.C. 78s(b)(3)(A)(ii).
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34- 93733; File Nos. SR–MIAX–
2021–41, SR–PEARL–2021–45]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC,
MIAX PEARL, LLC; Notice of
Withdrawal of Proposed Rule Changes
to Amend the Fee Schedules To Adopt
a Tiered-Pricing Structure for Certain
Connectivity Fees
December 7, 2021.
On September 24, 2021, Miami
International Securities Exchange LLC
(‘‘MIAX’’) and MIAX PEARL, LLC
(‘‘MIAX Pearl’’) (collectively, the
VerDate Sep<11>2014
18:24 Dec 13, 2021
10 17
Jkt 256001
PO 00000
CFR 200.30–3(a)(12).
Frm 00107
Fmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–26861 Filed 12–13–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–298, OMB Control No.
3235–0337]
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
8 Id.
9 15
‘‘Exchanges’’) 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
(File Numbers SR–MIAX–2021–41 and
SR–PEARL–2021–45) to amend the
MIAX Fee Schedule and MIAX Pearl
Options Fee Schedule to adopt a tiered
pricing structure for certain connectivity
fees.
The proposed rule changes were
immediately effective upon filing with
the Commission pursuant to Section
19(b)(3)(A) of the Act.3 The proposed
rule changes were published for
comment in the Federal Register on
October 4, 2021.4 On November 22,
2021, the Commission temporarily
suspended the proposed rule changes
and instituted proceedings under
Section 19(b)(2)(B) of the Act 5 to
determine whether to approve or
disapprove the proposed rule changes.6
On December 1, 2021, the Exchanges
withdrew the proposed rule changes
(SR–MIAX–2021–41 and SR–PEARL–
2021–45).
Sfmt 4703
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A). A proposed rule change
may take effect upon filing with the Commission if
it is designated by the exchange as ‘‘establishing or
changing a due, fee, or other charge imposed by the
self-regulatory organization on any person, whether
or not the person is a member of the self-regulatory
organization.’’ 15 U.S.C. 78s(b)(3)(A)(ii).
4 See Securities Exchange Act Release Nos. 93165
(September 28, 2021), 86 FR 54750 (SR–MIAX–
2021–41); 93162 (September 28, 2021), 86 FR 54739
(SR–PEARL–2021–45). Comments received on the
proposed rule changes are available on the
Commission’s website at: https://www.sec.gov/
comments/sr-miax-2021-41/srmiax202141.htm
(SR–MIAX–2021–41); https://www.sec.gov/
comments/sr-pearl-2021-45/srpearl202145.htm
(SR–PEARL–2021–45).
5 15 U.S.C. 78s(b)(2)(B).
6 See Securities Exchange Act Release No. 93639,
86 FR 67758 (November 29, 2021).
7 17 CFR 200.30–3(a)(12).
2 17
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]]>Agencies
[Federal Register Volume 86, Number 237 (Tuesday, December 14, 2021)]
[Notices]
[Pages 71106-71108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26969]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93739; File No. SR-BX-2021-053]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend BX's
Pricing Schedule at Options 7, Section 1, General Provisions
December 8, 2021.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on December 1, 2021, Nasdaq BX, Inc. (``BX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
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\ 15 U.S.C. 78a.
\3\ 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 amend BX's Pricing Schedule at Options 7,
Section 1, General Provisions.
While the changes proposed herein are effective upon filing, the
Exchange has designated the amendments become operative on December 1,
2021.
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
BX proposes to amend its Pricing Schedule at Options 7, Section 1,
General Provisions. Specifically, BX proposes to amend the way an
Exchange Participant indicates its participation in the Affiliated
Entity Program. Specifically, the Exchange proposes to amend the
description of ``Affiliated Entity'' within Options 7, Section 1,
General Provisions. Currently, the term ``Affiliated Entity'' is
described as,
a relationship between an Appointed MM and an Appointed OFP for
purposes of aggregating eligible volume for pricing in Options 7,
Section 2(1) for which a volume threshold or volume percentage is
required to qualify for higher rebates or lower fees. BX Options
Market Makers and OFPs are required to send an email to the Exchange
to
[[Page 71107]]
appoint their counterpart, at least 3 business days prior to the
last day of the month to qualify for the next month. The Exchange
will acknowledge receipt of the emails and specify the date the
Affiliated Entity is eligible for applicable pricing in Options 7,
Section 2(1). Each Affiliated Entity relationship will commence on
the 1st of a month and may not be terminated prior to the end of any
month. An Affiliated Entity relationship will terminate after a one
(1) year period, unless either party terminates earlier in writing
by sending an email to the Exchange at least 3 business days prior
to the last day of the month to terminate for the next month.
Affiliated Entity relationships must be renewed annually.
Participants under Common Ownership may not qualify as a
counterparty comprising an Affiliated Entity. Each Participant may
qualify for only one (1) Affiliated Entity relationship at any given
time.
Today, Participants are required to annually renew their Affiliate
Entity relationship at the end of one year if they desire to continue
the relationship. The parties must both send an email to the Exchange
to avoid termination of the relationship, provided the relationship was
not terminated earlier in the year. The Exchange believes that this
process is burdensome for Participants that desire to remain in the
program. The consequence of not renewing is termination. The Exchange
desires to remove the administrative burden associated with the
requirement to annually renew and instead provide that the Affiliated
Entity relationship will automatically renew each month, unless
otherwise terminated. The proposed new rule text would provide,
The term ``Affiliated Entity'' is a relationship between an
Appointed MM and an Appointed OFP for purposes of aggregating
eligible volume for pricing in Options 7, Section 2(1) for which a
volume threshold or volume percentage is required to qualify for
higher rebates or lower fees. BX Options Market Makers and OFPs are
required to send an email to the Exchange to appoint their
counterpart, at least 3 business days prior to the last day of the
month to qualify for the next month. The Exchange will acknowledge
receipt of the emails and specify the date the Affiliated Entity is
eligible for applicable pricing in Options 7, Section 2(1). Each
Affiliated Entity relationship will commence on the 1st of a month
and may not be terminated prior to the end of any month. An
Affiliated Entity relationship will automatically renew each month
until or unless either party terminates earlier in writing by
sending an email to the Exchange at least 3 business days prior to
the last day of the month to terminate for the next month.
Participants under Common Ownership may not qualify as a
counterparty comprising an Affiliated Entity. Each Participant may
qualify for only one (1) Affiliated Entity relationship at any given
time.
As is the case today, parties to the Affiliated Entity relationship may
decide to terminate the relationship during any month by sending an
email to the Exchange at least 3 business days prior to the last day of
the month to terminate for the next month. Cboe Exchange, Inc.
(``Cboe'') has a similar automatic renewal process for its Appointed
OFP and Appointed Market-Maker Program.\4\ The Exchange believes that
this amendment will streamline the workflow for Participants by not
requiring Participants to renew each year to continue the affiliated
relationship.
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\4\ See Cboe's Fees Schedule at footnote 23 ``A Market-Maker may
designate an Order Flow Provider (``OFP'') as its ``Appointed OFP''
and an OFP may designate a Market-Maker to be its ``Appointed
Market-Maker'' for purposes of qualifying for credits under AVP. In
order to effectuate the appointment, the parties would need to
submit the Appointed Affiliate Form to the Exchange by 3:00 p.m. CST
on the first business day of the month in order to be eligible to
qualify for credits under AVP for that month. The Exchange will
recognize only one such designation for each party once every
calendar month, which designation will automatically renew each
month until or unless the Exchange receives an email from either
party indicating that the appointment has been terminated. A Market-
Maker that has both an Affiliate OFP and Appointed OFP will only
qualify based upon the volume of its Appointed OFP. The volume of an
OFP that has both an Affiliate Market-Maker and Appointed Market-
Maker will only count towards qualifying the Appointed Market-Maker.
Volume executed in open outcry is not eligible to receive a credit
under AVP.''
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\6\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among members and issuers and other persons using any facility,
and is not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange's proposal to amend the way Exchange Participants
indicate their participation in the Affiliated Entity Program is
reasonable. Today, Participants are required to annually renew their
Affiliated Entity relationship at the end of one year if they desire to
continue the relationship. The parties must both send an email to the
Exchange to avoid termination of the relationship, provided the
relationship was not terminated earlier in the year. The Exchange
believes that this process is burdensome for Participants that desire
to remain in the program. The consequence of not renewing is
termination of their participation in the program. The Exchange desires
to remove the administrative burden associated with the requirement to
annually renew and instead provide that the Affiliated Entity
relationship will automatically renew each month, unless otherwise
terminated. As is the case today, parties to the Affiliated Entity
relationship may decide to terminate the relationship during any month
by sending an email to the Exchange at least 3 business days prior to
the last day of the month to terminate for the next month. Also, Cboe
has a similar automatic renewal process for its Appointed OFP and
Appointed Market-Maker Program.\7\ The Exchange believes that this
amendment will streamline the workflow for Participants by not
requiring Participants to renew each year to continue the affiliated
relationship.
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\7\ See Cboe's Fees Schedule at footnote 23 ``A Market-Maker may
designate an Order Flow Provider (``OFP'') as its ``Appointed OFP''
and an OFP may designate a Market-Maker to be its ``Appointed
Market-Maker'' for purposes of qualifying for credits under AVP. In
order to effectuate the appointment, the parties would need to
submit the Appointed Affiliate Form to the Exchange by 3:00 p.m. CST
on the first business day of the month in order to be eligible to
qualify for credits under AVP for that month. The Exchange will
recognize only one such designation for each party once every
calendar month, which designation will automatically renew each
month until or unless the Exchange receives an email from either
party indicating that the appointment has been terminated. A Market-
Maker that has both an Affiliate OFP and Appointed OFP will only
qualify based upon the volume of its Appointed OFP. The volume of an
OFP that has both an Affiliate Market-Maker and Appointed Market-
Maker will only count towards qualifying the Appointed Market-Maker.
Volume executed in open outcry is not eligible to receive a credit
under AVP.''
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The Exchange's proposal to amend the way Exchange Participants
indicate their participation in the Affiliated Entity Program is
equitable and not unfairly discriminatory. Today, any Participant may
participate in the Affiliated Entity Program. The proposed changes
would impact all Participants that voluntarily elect to participate in
the Affiliated Entity Program in a uniform manner.
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.
Inter-Market Competition
The proposal does not impose an undue burden on inter-market
competition. Cboe has a similar automatic renewal process for its
Appointed OFP and Appointed Market-
[[Page 71108]]
Maker Program \8\ as proposed herein for the Affiliated Entity Program.
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\8\ Id.
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Intra-Market Competition
The Exchange's proposal to amend the way Exchange Participants
indicate their participation in the Affiliated Entity Program does not
impose an undue burden on competition. Today, any Participant may
participate in an Affiliated Entity relationship. The proposed changes
would impact all Participants that voluntarily elect to participate in
the Affiliated Entity Program in a uniform manner.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\9\
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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.
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-2021-053 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-2021-053. 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-2021-053, and should be submitted on
or before January 4, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-26969 Filed 12-13-21; 8:45 am]
BILLING CODE 8011-01-P
