Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Modify How Drill-Through Price Protection Applies to Users' Orders When Multiple Stop (Stop-Loss) and Stop-Limit Orders Are Triggered by the Same Price, 12523-12526 [2022-04562]
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Federal Register / Vol. 87, No. 43 / Friday, March 4, 2022 / Notices
19(b)(3)(A) of the Act 15 and Rule 19b–
4(f)(6) 16 thereunder.
The Exchange has asked the
Commission to waive the 30-day
operative delay such that Exchange
Users will be able to more quickly
benefit from the proposed Drill through
protections that are designed to: (1)
Prevent potentially erroneous
executions and (2) more closely align
the execution prices of Stop Orders and
Stop Limit Orders that become eligible
for potential execution at the same time
due to the same price triggering event.17
The Commission finds that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. Specifically, waiver of
the operative delay should allow
Exchange Users to utilize Stop Orders
and Stop Limit Orders with an
increased likelihood that the execution
price of such orders will be more closely
related to the market at the time the
order is triggered for entry onto the
EDGX Book. Accordingly, the
Commission designates the proposal
operative upon filing.18
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.
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–
15 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
17 17 CFR 240.19b–4(f)(6)(iii).
18 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule change’s impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
CboeEDGX–2022–007 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–94325; File No. SR–C2–
2022–005]
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CboeEDGX–2022–007. 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;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
CboeEDGX–2022–007 and should be
submitted on or before March 25, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–04566 Filed 3–3–22; 8:45 am]
BILLING CODE 8011–01–P
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16 17
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12523
Self-Regulatory Organizations; Cboe
C2 Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating To Modify How
Drill-Through Price Protection Applies
to Users’ Orders When Multiple Stop
(Stop-Loss) and Stop-Limit Orders Are
Triggered by the Same Price
February 28, 2022.
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 February
17, 2022, Cboe C2 Exchange, Inc. (the
‘‘Exchange’’ or ‘‘C2’’) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe C2 Exchange, Inc. (‘‘C2’’ or the
‘‘Exchange’’) is filing with the Securities
and Exchange Commission (the
‘‘Commission’’) a proposal to modify
how drill-through price protection
applies to Users’ 5 orders when multiple
Stop (Stop-Loss) and Stop-Limit orders
are triggered by the same price. The text
of the proposed rule change is provided
in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
options/regulation/rule_filings/ctwo/),
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
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).
5 The Term ‘‘User’’ shall mean any Trading
Privilege Holder (TPH) or Sponsored User who is
authorized to obtain access to the System pursuant
to Rule 5.5.
2 17
19 17
PO 00000
CFR 200.30–3(a)(12).
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Federal Register / Vol. 87, No. 43 / Friday, March 4, 2022 / Notices
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
The purpose of this rule filing is to
amend current Rule 5.34(a)(4), Order
and Quote Price Protection Mechanisms
and Risk Controls, to add new Rule
5.34(a)(4)(E), which modifies what the
drill-through price will be for Stop
(Stop-Loss) 6 and Stop-Limit 7 orders
when multiple Stop and Stop-Limit
orders are triggered by the same stop
price specified by Users.
Drill-through price protection is
currently described in Exchange Rule
5.34(a)(4)(A). Rule 5.34(a)(4)(A) equates
the drill-through reference price for a
buy (sell) order to a price up to a buffer
amount (the Exchange determines the
buffer amount on a class and premium
basis) above (below) the offer (bid) limit
of the Opening Collar or the NBO (NBB)
that existed at the time of order entry,
respectively (the, ‘‘drill-through
price’’).8
Currently, when multiple Stop (StopLoss) or Stop-Limit orders are triggered
by the same price, the System 9
considers them separate orders received
in sequence and enters them
6 A ‘‘Stop (Stop-Loss)’’ order is an order to buy
(sell) that becomes a market order when the
consolidated last sale price (excluding prices from
complex order trades if outside of the NBBO) or
NBB (NBO) for a particular option contract is equal
to or above (below) the stop price specified by the
User. Users may not designate a Stop Order as All
Sessions. Users may not designate bulk messages as
Stop Orders. A User may not designate a Stop order
as Direct to PAR. See Rule 5.6(c) (definition of
‘‘Stop (Stop-Loss)’’ order).
7 A ‘‘Stop-Limit’’ order is an order to buy (sell)
that becomes a limit order when the consolidated
last sale price (excluding prices from complex order
trades if outside the NBBO) or NBB (NBO) for a
particular option contract is equal to or above
(below) the stop price specified by the User. A User
may not designate a Stop-Limit Order as All
Sessions. Users may not designate bulk messages as
Stop-Limit Orders. A User may not designate a
Stop-Limit order as Direct to PAR. See Rule 5.6(c)
(definition of ‘‘Stop-Limit’’ order).
8 See Rule 5.34(a)(4)(A).
9 ‘‘System’’ means the Exchange’s hybrid trading
platform that integrates electronic and open outcry
trading of option contracts on the Exchange and
includes any connectivity to the foregoing trading
platform that is administered by or on behalf of the
Exchange, such as a communications hub. See Rule
1.1. (definition of, ‘‘System’’).
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sequentially into the Book.10 As such,
when determining the drill-through
price for each order, the System uses the
contra side NBBO that existed at the
time each of the orders was entered into
the Book.11 By applying drill-through
price protection in this manner, the
Exchange has observed, particularly in
thinly traded markets, that the first
order triggered will trade with the best
priced contra-side order, while the
second triggered order can trade at
prices that may be multiple price levels
away, as it is using the NBBO that
existed after the first triggered order
executed. Accordingly, the Exchange
seeks to enhance the drill-through price
functionality as it relates to Stop (StopLoss) and Stop Limit Orders, through
the addition of proposed Rule
5.34(a)(4)(E). Under proposed Rule
5.34(a)(4)(E), rather than using separate
drill-through prices for each individual
Stop and Stop-Limit order, the System
will instead use the contra-side NBBO
that existed at the time the first order in
sequence was entered into the Book as
the drill-through price, for all orders.
This is the drill-through price that
would apply to each Stop or Stop-Limit
order if it was the only one triggered at
that price. By way of illustration,
consider the following examples:
Example 1—Current Functionality
Assume that the drill-through price
buffer 12 for a certain option series is
$0.25, and that the following quotes are
in the Book: Quote 1 (NBBO): 5.00 ×
7.00; Quote 2: 4.00 × 8.00. Each quote
has a size of 1. Additionally, the
following Stop-Loss/Stop Limit orders
are being held in the System when the
Quote 1 offer is updated to $6.50 (they
were received by the System in
sequence):
Order 1: Sell 1 @Market, Stop Price =
$6.50
Order 2: Sell 1 @Market, Stop Price =
$6.55
Order 3: Sell 1 @Market, Stop Price =
$6.50
Per current Rule 5.34(a)(4), the
following will occur:
1. Orders 1, 2 and 3 are held in the
System, and handled as separate orders
received in sequence. Each have stop
prices less than the NBO, and are
therefore triggered by the 6.50 quote,
and enter the Book for execution or
posting. Under today’s functionality, the
10 ‘‘Book’’ means the electronic book of simple
orders and quotes maintained by the System, which
single book is used during both the regular trading
hours and global trading hours trading sessions. See
Rule 1.1 (definition of, ‘‘Book’’).
11 See Rule 5.34(a)(4)(A).
12 The Exchange determines the buffer amount on
a premium and class basis.
PO 00000
Frm 00102
Fmt 4703
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System assigns each order a separate
drill-through price, equal to the contraside NBBO in existence at the time each
order separately entered the Book for
execution.
2. Order 1 will execute against Quote
1 @$5.00. Using the NBB of $5.00 as the
drill-through price, the System would
prevent execution beyond $4.75.
3. When Order 1 executes against
Quote 1 @5.00, that NBB will no longer
be in the Book. Instead Order 2 will
execute against Quote 2 @4.00 and use
the NBB of 4.00 as the drill-through
price, and prevent execution beyond
$3.75.
4. Order 3 will cancel due to no
liquidity left at the drill-through price of
$3.75.
Example 2—Proposed Functionality
Again, assume that the drill-through
price buffer for a certain option series is
$0.25, and that the following quotes are
in the Book: Quote 1 (NBBO): 5.00 ×
7.00; Quote 2: 4.00 × 8.00. Each quote
has a size of 1. Additionally, the
following Stop-Loss/Stop Limit orders
are being held in the System when
Quote 1 offers is updated to $6.50 (they
were received by the System in
sequence):
Order 1: Sell 1 @Market, Stop Price =
$6.50
Order 2: Sell 1 @Market, Stop Price =
$6.55
Order 3: Sell 1 @Market, Stop Price =
$6.50
Per proposed Rule 5.34(a)(4)(E), the
following will occur:
1. Orders 1, 2 and 3 each have stop
prices less than the NBO, and will
therefore be triggered by the 6.50 quote,
and enter the Book for execution or
posting. A drill-through price for all
three orders is set at the contra-side
NBB of 5.00.
2. Order 1 will execute against Quote
1 @$5.00.
3. Orders 2 and 3 will cancel due to
no liquidity left at the drill-through
price of $4.75.
The Exchange notes that aside from
the difference in drill-through price, the
drill-through mechanism will apply in
the same manner to these orders. The
Exchange is not proposing wholly new
drill-through protection behavior, but
rather only seeks to modify the
reference price utilized by the drillthrough price protection for Stop (StopLoss) and Stop Limit orders if multiple
such orders are triggered and entered
into the Book for execution due to the
same price event. By using the same
drill-through price for all triggered
orders eligible for execution, the
proposed modification will help the
drill-through protection prevent
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Federal Register / Vol. 87, No. 43 / Friday, March 4, 2022 / Notices
executions too far away from the NBBO
when multiple Stop (Stop-Loss) and
Stop Limit orders become eligible for
execution. In doing so, Stop (Stop-Loss)
and Stop Limit orders will receive
executions at prices more closely
aligned to the stop prices specified by
Exchange Users.
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2. Statutory Basis
The Exchange believes the proposed
rule amendment is consistent with the
requirements of Section 6(b) of the
Act,13 in general, and Section 6(b)(5) of
the Act,14 in particular, in that it 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
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.
Specifically, the Exchange believes
that proposed Rule 5.34(a)(4)(E) does
not unfairly discriminate amongst
Users. Under proposed Rule
5.34(a)(4)(E), all Users with Stop (StopLoss) and Stop-Limit Orders triggered
by the same price event will have the
same drill-through reference price. The
primary purpose of the drill-through
price protection is to prevent orders
from executing at prices ‘‘too far away’’
from the market when they enter the
Book for potential execution. The
Exchange believes the proposed rule
change is consistent with this purpose,
and thus will promote just and equitable
principles of trade and protect investors,
because Users who submit Stop and
Stop-Limit Orders will receive the same
level of drill-through price protection
against execution at potentially
erroneous prices, regardless of the
sequence in which they enter the Book.
As a result of the proposed rule change,
all Users’ Stop and Stop-Limit Orders
will receive protection based on the
NBBO at the time those orders were
triggered to enter the Book for potential
execution, which is consistent with the
drill-through protection as well as Stop
Order functionality.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change imposes any
burden on intramarket competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
Under the current drill-through price
13 15
14 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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Jkt 256001
protection functionality, the System’s
use of separate drill-through prices can
result in Stop Orders executed later in
sequence being filled at prices several
levels away from the NBBO in existence
at the time they are triggered and
entered into the Book for execution
merely because those orders were
submitted after another Stop Order. As
discussed above, the proposed rule
change will apply the same drillthrough price (and thus the same level
of drill-through price protection) to Stop
and Stop-Limit Orders that become
eligible for potential execution at the
same time due to the same price
triggering event.
The Exchange does not believe that
the proposed rule change will impose
any burden on intermarket competition
that is not necessary or appropriate in
furtherance of the purposes of the Act
because it relates solely to how an
Exchange price protection applies to
Stop (Stop-Loss) and Stop Limit orders.
The proposed enhancement to the drillthrough protection is consistent with
the current protection and provides
orders subject to drill-through price
protection with improved protection
against execution at potentially
erroneous prices.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposal. No written comments
were solicited or received 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 after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 15 and Rule
19b–4(f)(6) 16 thereunder.
The Exchange has asked the
Commission to waive the 30-day
operative delay such that Exchange
15 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule
19b–4(f)(6) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change at least five business
days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
16 17
PO 00000
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Fmt 4703
Sfmt 4703
12525
Users will be able to more quickly
benefit from the proposed Drill through
protections that are designed to: (1)
Prevent potentially erroneous
executions and (2) more closely align
the execution prices of Stop Orders and
Stop Limit Orders that become eligible
for potential execution at the same time
due to the same price triggering event.17
The Commission finds that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. Specifically, waiver of
the operative delay should allow
Exchange Users to utilize Stop Orders
and Stop Limit Orders with an
increased likelihood that the execution
price of such orders will be more closely
related to the market at the time the
order is triggered for entry onto the C2
Book. Accordingly, the Commission
designates the proposal operative upon
filing.18
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.
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–
C2–2022–005 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–C2–2022–005. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
17 17
CFR 240.19b–4(f)(6)(iii).
purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule change’s impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
18 For
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Federal Register / Vol. 87, No. 43 / Friday, March 4, 2022 / Notices
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;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–C2–
2022–005 and should be submitted on
or before March 25, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–04562 Filed 3–3–22; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #17363 and #17364;
Kentucky Disaster Number KY–00092]
Presidential Declaration of a Major
Disaster for Public Assistance Only for
the Commonwealth of Kentucky
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the Commonwealth of Kentucky
(FEMA–4643–DR), dated 02/27/2022.
Incident: Severe Storms, Straight-line
Winds, Tornadoes, Flooding,
Landslides, and Mudslides.
Incident Period: 12/31/2021 through
01/02/2022.
DATES: Issued on 02/27/2022.
lotter on DSK11XQN23PROD with NOTICES1
SUMMARY:
19 17
Eric Temple (Applicant) has filed a
verified notice of exemption under 49
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:05 Mar 03, 2022
CFR 1180.2(d)(2) to continue in control
of Columbia Shipyards Railroad LLC, a
non-carrier controlled by Applicant,
upon CSBP’s becoming a Class III rail
carrier.
This transaction is related to a
verified notice of exemption filed
concurrently in Columbia Shipyards
Railroad—Change in Operator
Exemption—Portland Vancouver
Junction Railroad, Clark County, Wash.,
Docket No. FD 36582, in which CSBP
seeks to acquire from its corporate
affiliate, Portland Vancouver Junction
Railroad, LLC (PVJR), the rights and
obligations to perform common carrier
switching service over approximately
three miles of tracks owned by the
Columbia Business Center, a noncarrier.1
The transaction may be consummated
on or after March 20, 2022, the effective
date of the exemption (30 days after the
verified notice was filed).
According to the notice, Applicant is
a non-carrier who controls three Class
III railroads: Central Washington
Railroad Company (CWA), Columbia
Basin Railroad Company, Inc. (CBRW),
and PVJR, which all operate in
Washington.2 The continuance in
control exemption would allow
Applicant to control CSBP, which will
Percent
provide switching services for Columbia
Business Center in place of PVJR, once
For Physical Damage:
CSBP becomes a carrier.
Non-Profit Organizations with
Applicant represents that: (1) CSBP
Credit Available Elsewhere ...
1.875
will not connect with any other railroad
Non-Profit Organizations within Applicant’s corporate family; (2) the
out Credit Available Elsewhere .....................................
1.875 transaction is not part of a series of
For Economic Injury:
anticipated transactions that would
Non-Profit Organizations withconnect CSBP with any railroad in the
out Credit Available ElseApplicant’s corporate family; and (3) the
where .....................................
1.875
transaction does not involve a Class I
rail carrier. Therefore, the proposed
The number assigned to this disaster
transaction is exempt from the prior
for physical damage is 17363 B and for
approval requirements of 49 U.S.C.
economic injury is 17364 0.
11323. See 49 CFR 1180.2(d)(2).
(Catalog of Federal Domestic Assistance
Under 49 U.S.C. 10502(g), the Board
Number 59008)
may not use its exemption authority to
Barbara Carson,
relieve a rail carrier of its statutory
Acting Associate Administrator for Disaster
obligation to protect the interests of its
Assistance.
employees. However, 49 U.S.C. 11326(c)
[FR Doc. 2022–04596 Filed 3–3–22; 8:45 am]
does not provide for labor protection for
BILLING CODE 8026–03–P
transactions under 49 U.S.C. 11324 and
11325 that involve only Class III rail
carriers. Because this transaction
SURFACE TRANSPORTATION BOARD involves Class III rail carriers only, the
Board, under the statute, may not
[Docket No. FD 36583]
impose labor protective conditions for
this transaction.3
Eric Temple—Continuance in
Control—Central Washington Railroad
1 Applicant states that PVJR also operates over a
Company, Columbia Basin Railroad
33-mile line owned by Clark County, Washington.
Company, Inc., Portland Vancouver
2 According to the verified notice, Applicant
Junction Railroad, LLC, and Columbia
owns 45% of CWA’s stock, 50% of CBRW’s stock,
Shipyards Railroad LLC
and 100% of PVJR’s stock.
Physical Loan Application Deadline
Date: 04/28/2022.
Economic Injury (EIDL) Loan
Application Deadline Date: 11/28/2022.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
02/27/2022, Private Non-Profit
organizations that provide essential
services of a governmental nature may
file disaster loan applications at the
address listed above or other locally
announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: Boyd, Breathitt,
Carter, Christian, Clay, Floyd,
Green, Johnson, Knott, Lawrence,
Owsley, Pike, Taylor.
The Interest Rates are:
Jkt 256001
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
3 Applicant states that CSBP nonetheless intends
to offer employment to all of the PVJR employees
who currently operate within the business park.
E:\FR\FM\04MRN1.SGM
04MRN1
]]>Agencies
[Federal Register Volume 87, Number 43 (Friday, March 4, 2022)]
[Notices]
[Pages 12523-12526]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04562]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94325; File No. SR-C2-2022-005]
Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
To Modify How Drill-Through Price Protection Applies to Users' Orders
When Multiple Stop (Stop-Loss) and Stop-Limit Orders Are Triggered by
the Same Price
February 28, 2022.
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 February 17, 2022, Cboe C2 Exchange, Inc. (the ``Exchange'' or
``C2'') 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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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe C2 Exchange, Inc. (``C2'' or the ``Exchange'') is filing with
the Securities and Exchange Commission (the ``Commission'') a proposal
to modify how drill-through price protection applies to Users' \5\
orders when multiple Stop (Stop-Loss) and Stop-Limit orders are
triggered by the same price. The text of the proposed rule change is
provided in Exhibit 5.
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\5\ The Term ``User'' shall mean any Trading Privilege Holder
(TPH) or Sponsored User who is authorized to obtain access to the
System pursuant to Rule 5.5.
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The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/options/regulation/rule_filings/ctwo/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
[[Page 12524]]
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 purpose of this rule filing is to amend current Rule
5.34(a)(4), Order and Quote Price Protection Mechanisms and Risk
Controls, to add new Rule 5.34(a)(4)(E), which modifies what the drill-
through price will be for Stop (Stop-Loss) \6\ and Stop-Limit \7\
orders when multiple Stop and Stop-Limit orders are triggered by the
same stop price specified by Users.
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\6\ A ``Stop (Stop-Loss)'' order is an order to buy (sell) that
becomes a market order when the consolidated last sale price
(excluding prices from complex order trades if outside of the NBBO)
or NBB (NBO) for a particular option contract is equal to or above
(below) the stop price specified by the User. Users may not
designate a Stop Order as All Sessions. Users may not designate bulk
messages as Stop Orders. A User may not designate a Stop order as
Direct to PAR. See Rule 5.6(c) (definition of ``Stop (Stop-Loss)''
order).
\7\ A ``Stop-Limit'' order is an order to buy (sell) that
becomes a limit order when the consolidated last sale price
(excluding prices from complex order trades if outside the NBBO) or
NBB (NBO) for a particular option contract is equal to or above
(below) the stop price specified by the User. A User may not
designate a Stop-Limit Order as All Sessions. Users may not
designate bulk messages as Stop-Limit Orders. A User may not
designate a Stop-Limit order as Direct to PAR. See Rule 5.6(c)
(definition of ``Stop-Limit'' order).
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Drill-through price protection is currently described in Exchange
Rule 5.34(a)(4)(A). Rule 5.34(a)(4)(A) equates the drill-through
reference price for a buy (sell) order to a price up to a buffer amount
(the Exchange determines the buffer amount on a class and premium
basis) above (below) the offer (bid) limit of the Opening Collar or the
NBO (NBB) that existed at the time of order entry, respectively (the,
``drill-through price'').\8\
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\8\ See Rule 5.34(a)(4)(A).
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Currently, when multiple Stop (Stop-Loss) or Stop-Limit orders are
triggered by the same price, the System \9\ considers them separate
orders received in sequence and enters them sequentially into the
Book.\10\ As such, when determining the drill-through price for each
order, the System uses the contra side NBBO that existed at the time
each of the orders was entered into the Book.\11\ By applying drill-
through price protection in this manner, the Exchange has observed,
particularly in thinly traded markets, that the first order triggered
will trade with the best priced contra-side order, while the second
triggered order can trade at prices that may be multiple price levels
away, as it is using the NBBO that existed after the first triggered
order executed. Accordingly, the Exchange seeks to enhance the drill-
through price functionality as it relates to Stop (Stop-Loss) and Stop
Limit Orders, through the addition of proposed Rule 5.34(a)(4)(E).
Under proposed Rule 5.34(a)(4)(E), rather than using separate drill-
through prices for each individual Stop and Stop-Limit order, the
System will instead use the contra-side NBBO that existed at the time
the first order in sequence was entered into the Book as the drill-
through price, for all orders. This is the drill-through price that
would apply to each Stop or Stop-Limit order if it was the only one
triggered at that price. By way of illustration, consider the following
examples:
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\9\ ``System'' means the Exchange's hybrid trading platform that
integrates electronic and open outcry trading of option contracts on
the Exchange and includes any connectivity to the foregoing trading
platform that is administered by or on behalf of the Exchange, such
as a communications hub. See Rule 1.1. (definition of, ``System'').
\10\ ``Book'' means the electronic book of simple orders and
quotes maintained by the System, which single book is used during
both the regular trading hours and global trading hours trading
sessions. See Rule 1.1 (definition of, ``Book'').
\11\ See Rule 5.34(a)(4)(A).
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Example 1--Current Functionality
Assume that the drill-through price buffer \12\ for a certain
option series is $0.25, and that the following quotes are in the Book:
Quote 1 (NBBO): 5.00 x 7.00; Quote 2: 4.00 x 8.00. Each quote has a
size of 1. Additionally, the following Stop-Loss/Stop Limit orders are
being held in the System when the Quote 1 offer is updated to $6.50
(they were received by the System in sequence):
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\12\ The Exchange determines the buffer amount on a premium and
class basis.
Order 1: Sell 1 @Market, Stop Price = $6.50
Order 2: Sell 1 @Market, Stop Price = $6.55
Order 3: Sell 1 @Market, Stop Price = $6.50
Per current Rule 5.34(a)(4), the following will occur:
1. Orders 1, 2 and 3 are held in the System, and handled as
separate orders received in sequence. Each have stop prices less than
the NBO, and are therefore triggered by the 6.50 quote, and enter the
Book for execution or posting. Under today's functionality, the System
assigns each order a separate drill-through price, equal to the contra-
side NBBO in existence at the time each order separately entered the
Book for execution.
2. Order 1 will execute against Quote 1 @$5.00. Using the NBB of
$5.00 as the drill-through price, the System would prevent execution
beyond $4.75.
3. When Order 1 executes against Quote 1 @5.00, that NBB will no
longer be in the Book. Instead Order 2 will execute against Quote 2
@4.00 and use the NBB of 4.00 as the drill-through price, and prevent
execution beyond $3.75.
4. Order 3 will cancel due to no liquidity left at the drill-
through price of $3.75.
Example 2--Proposed Functionality
Again, assume that the drill-through price buffer for a certain
option series is $0.25, and that the following quotes are in the Book:
Quote 1 (NBBO): 5.00 x 7.00; Quote 2: 4.00 x 8.00. Each quote has a
size of 1. Additionally, the following Stop-Loss/Stop Limit orders are
being held in the System when Quote 1 offers is updated to $6.50 (they
were received by the System in sequence):
Order 1: Sell 1 @Market, Stop Price = $6.50
Order 2: Sell 1 @Market, Stop Price = $6.55
Order 3: Sell 1 @Market, Stop Price = $6.50
Per proposed Rule 5.34(a)(4)(E), the following will occur:
1. Orders 1, 2 and 3 each have stop prices less than the NBO, and
will therefore be triggered by the 6.50 quote, and enter the Book for
execution or posting. A drill-through price for all three orders is set
at the contra-side NBB of 5.00.
2. Order 1 will execute against Quote 1 @$5.00.
3. Orders 2 and 3 will cancel due to no liquidity left at the
drill-through price of $4.75.
The Exchange notes that aside from the difference in drill-through
price, the drill-through mechanism will apply in the same manner to
these orders. The Exchange is not proposing wholly new drill-through
protection behavior, but rather only seeks to modify the reference
price utilized by the drill-through price protection for Stop (Stop-
Loss) and Stop Limit orders if multiple such orders are triggered and
entered into the Book for execution due to the same price event. By
using the same drill-through price for all triggered orders eligible
for execution, the proposed modification will help the drill-through
protection prevent
[[Page 12525]]
executions too far away from the NBBO when multiple Stop (Stop-Loss)
and Stop Limit orders become eligible for execution. In doing so, Stop
(Stop-Loss) and Stop Limit orders will receive executions at prices
more closely aligned to the stop prices specified by Exchange Users.
2. Statutory Basis
The Exchange believes the proposed rule amendment is consistent
with the requirements of Section 6(b) of the Act,\13\ in general, and
Section 6(b)(5) of the Act,\14\ in particular, in that it 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 facilitating transactions in
securities, to remove impediments to, and perfect the mechanism of, a
free and open market and a national market system and, in general, to
protect investors and the public interest.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
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Specifically, the Exchange believes that proposed Rule
5.34(a)(4)(E) does not unfairly discriminate amongst Users. Under
proposed Rule 5.34(a)(4)(E), all Users with Stop (Stop-Loss) and Stop-
Limit Orders triggered by the same price event will have the same
drill-through reference price. The primary purpose of the drill-through
price protection is to prevent orders from executing at prices ``too
far away'' from the market when they enter the Book for potential
execution. The Exchange believes the proposed rule change is consistent
with this purpose, and thus will promote just and equitable principles
of trade and protect investors, because Users who submit Stop and Stop-
Limit Orders will receive the same level of drill-through price
protection against execution at potentially erroneous prices,
regardless of the sequence in which they enter the Book. As a result of
the proposed rule change, all Users' Stop and Stop-Limit Orders will
receive protection based on the NBBO at the time those orders were
triggered to enter the Book for potential execution, which is
consistent with the drill-through protection as well as Stop Order
functionality.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change imposes
any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. Under the
current drill-through price protection functionality, the System's use
of separate drill-through prices can result in Stop Orders executed
later in sequence being filled at prices several levels away from the
NBBO in existence at the time they are triggered and entered into the
Book for execution merely because those orders were submitted after
another Stop Order. As discussed above, the proposed rule change will
apply the same drill-through price (and thus the same level of drill-
through price protection) to Stop and Stop-Limit Orders that become
eligible for potential execution at the same time due to the same price
triggering event.
The Exchange does not believe that the proposed rule change will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because it
relates solely to how an Exchange price protection applies to Stop
(Stop-Loss) and Stop Limit orders. The proposed enhancement to the
drill-through protection is consistent with the current protection and
provides orders subject to drill-through price protection with improved
protection against execution at potentially erroneous prices.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposal. No written comments were solicited or
received 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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \15\ and Rule 19b-4(f)(6)
\16\ thereunder.
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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The Exchange has asked the Commission to waive the 30-day operative
delay such that Exchange Users will be able to more quickly benefit
from the proposed Drill through protections that are designed to: (1)
Prevent potentially erroneous executions and (2) more closely align the
execution prices of Stop Orders and Stop Limit Orders that become
eligible for potential execution at the same time due to the same price
triggering event.\17\ The Commission finds that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest. Specifically, waiver of the operative delay should
allow Exchange Users to utilize Stop Orders and Stop Limit Orders with
an increased likelihood that the execution price of such orders will be
more closely related to the market at the time the order is triggered
for entry onto the C2 Book. Accordingly, the Commission designates the
proposal operative upon filing.\18\
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\17\ 17 CFR 240.19b-4(f)(6)(iii).
\18\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. 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 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-C2-2022-005 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-C2-2022-005. This file
number should be included on the subject line if email is used. To help
the Commission process and review your
[[Page 12526]]
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; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-C2-2022-005 and should be submitted on or before March
25, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-04562 Filed 3-3-22; 8:45 am]
BILLING CODE 8011-01-P
