Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update Exchange Rule 13.4(a) Regarding the Exchange's Usage of Data Feeds, 47799-47800 [2022-16659]
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Federal Register / Vol. 87, No. 149 / Thursday, August 4, 2022 / Notices
Expirations in the Pilot Program,
together with the data and analysis that
the Exchange will provide to the
Commission, will allow the Exchange
and the Commission to monitor for and
assess any potential for adverse market
effects of allowing Tuesday and
Thursday NDXP Expirations, including
on the underlying component stocks. In
particular, the data collected from the
Pilot Program will help inform the
Commission’s consideration of whether
the Pilot Program, as amended to
include Tuesday and Thursday NDXP
Expirations, should be modified,
discontinued, extended, or permanently
approved. Furthermore, the Exchange’s
ongoing analysis of the Pilot Program
should help it monitor any potential
risks from large P.M.-settled positions
and take appropriate action if
warranted.
Finally, the Commission believes that
the proposed non-substantive technical
amendments would remove or correct
obsolete text and ensure internal
consistency within the Exchange’s rules.
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with the Ac t.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,34 that the
proposed rule change (SR–Phlx–2022–
22), be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.35
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–16658 Filed 8–3–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–95395; File No. SR–MEMX–
2022–20]
Self-Regulatory Organizations; MEMX
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Update Exchange Rule
13.4(a) Regarding the Exchange’s
Usage of Data Feeds
jspears on DSK121TN23PROD with NOTICES
July 29, 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 July 26,
2022, MEMX LLC (‘‘MEMX’’ or the
‘‘Exchange’’) filed with the Securities
34 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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
The Exchange is filing with the
Commission a proposed rule change to
update Exchange Rule 13.4(a) regarding
the sources of data that the Exchange
utilizes for the handling, execution and
routing of orders, as well as for
surveillance necessary to monitor
compliance with applicable securities
laws and Exchange rules, with respect
to certain market centers. The text of the
proposed rule change is provided in
Exhibit 5.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to update
Exchange Rule 13.4(a) regarding the
sources of data that the Exchange
utilizes for the handling, execution and
routing of orders, as well as for
surveillance necessary to monitor
compliance with applicable securities
laws and Exchange rules, with respect
to certain market centers. Specifically,
the Exchange proposes to amend
Exchange Rule 13.4(a) to reflect that it
will no longer utilize direct data feeds
and instead will utilize market data
from the Consolidated Quotation
System (‘‘CQS’’)/UTP Quotation Data
35 17
VerDate Sep<11>2014
17:25 Aug 03, 2022
Feed (‘‘UQDF’’) for such purposes with
respect to the following markets centers:
Cboe BYX, Cboe EDGA, Nasdaq BX,
Nasdaq PSX, NYSE American, NYSE
Chicago, and NYSE National. The
Exchange will not have a secondary
source for data for these market centers.
The Exchange proposes for this
proposed rule change to become
operative on August 1, 2022, which is
the date that the Exchange intends to
switch data sources with respect to
these market centers, as described
above.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,5 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,6 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
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 Exchange believes that its
proposal to update Exchange Rule
13.4(a) to reflect that it will utilize
market data from the CQS/UQDF with
respect to Cboe BYX, Cboe EDGA,
Nasdaq BX, Nasdaq PSX, NYSE
American, NYSE Chicago, and NYSE
National is consistent with the Act
because it will ensure that the Rule
correctly identifies and publicly states
on a market-by-market basis all of the
specific network processor and
proprietary data feeds that the Exchange
utilizes for the handling, routing, and
execution of orders, and for performing
the regulatory compliance checks
related to each of those functions. In
particular, the Exchange receives and
processes data feeds to facilitate
compliance with the applicable
requirements of Regulation NMS,
including SEC Rule 611 (i.e., the Order
Protection Rule).7 The proposed rule
change also removes impediments to
and perfects the mechanism of a free
and open market and protects investors
and the public interest because it
provides additional specificity, clarity
and transparency.
5 15
3 15
U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
Jkt 256001
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
47799
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
7 17 CFR 242.611.
6 15
E:\FR\FM\04AUN1.SGM
04AUN1
47800
Federal Register / Vol. 87, No. 149 / Thursday, August 4, 2022 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes its proposed
rule change would not impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, the Exchange believes the
proposal would enhance competition
because disclosing the primary and
secondary data sources utilized by the
Exchange with respect to all of the
exchanges enhances transparency and
enables investors to better assess the
quality of the Exchange’s execution and
routing services.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) thereunder.9
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 10 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 11
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay.
The Exchange believes that waiver of
the operative delay is appropriate
because the Commission previously
approved MEMX Rule 13.4 to permit the
Exchange to disclose via its rules the
data feeds it utilizes for order handling,
routing and execution, and related
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
compliance processes, and the proposed
changes merely provide necessary
updates to such disclosure. The
Commission believes that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest because the proposed
rule change does not raise any new or
novel issues and does not alter the
Exchange’s functionality. Rather, the
proposal memorializes that MEMX has
chosen not to subscribe to the direct
proprietary market data feeds of several
exchanges, most of which currently
have relatively low market share (e.g.,
below 1%), and will instead utilize the
applicable consolidated market data
source for those exchanges. MEMX’s
proposal is not novel, as other
exchanges also use the consolidated
data feeds to receive data from certain
other exchanges.12 Therefore, the
Commission hereby waives the
operative delay and designates the
proposal as operative upon filing.13
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 14 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–
MEMX–2022–20 on the subject line.
jspears on DSK121TN23PROD with NOTICES
9 17
VerDate Sep<11>2014
17:25 Aug 03, 2022
Jkt 256001
12 See, e.g., NYSE American Rule 7.37E(d)
(showing that NYSE American uses the
consolidated data for several exchanges, including
MEMX).
13 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
14 15 U.S.C. 78s(b)(2)(B).
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
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–MEMX–2022–20. 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–MEMX–2022–20 and
should be submitted on or before
August 25, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–16659 Filed 8–3–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–116, OMB Control No.
3235–0109]
Proposed Collection; Comment
Request: Extension: Rule 12d1–3
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
15 17
E:\FR\FM\04AUN1.SGM
CFR 200.30–3(a)(12).
04AUN1
]]>Agencies
[Federal Register Volume 87, Number 149 (Thursday, August 4, 2022)]
[Notices]
[Pages 47799-47800]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16659]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95395; File No. SR-MEMX-2022-20]
Self-Regulatory Organizations; MEMX LLC; Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change To Update Exchange
Rule 13.4(a) Regarding the Exchange's Usage of Data Feeds
July 29, 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 July 26, 2022, MEMX LLC (``MEMX'' or the ``Exchange'') filed
with the Securities and Exchange Commission (the ``Commission'') the
proposed rule change as described in Items I, and II below, which Items
have been prepared by the Exchange. The Exchange filed the proposal as
a ``non-controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing with the Commission a proposed rule change
to update Exchange Rule 13.4(a) regarding the sources of data that the
Exchange utilizes for the handling, execution and routing of orders, as
well as for surveillance necessary to monitor compliance with
applicable securities laws and Exchange rules, with respect to certain
market centers. The text of the proposed rule change is provided in
Exhibit 5.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to update Exchange Rule 13.4(a) regarding the
sources of data that the Exchange utilizes for the handling, execution
and routing of orders, as well as for surveillance necessary to monitor
compliance with applicable securities laws and Exchange rules, with
respect to certain market centers. Specifically, the Exchange proposes
to amend Exchange Rule 13.4(a) to reflect that it will no longer
utilize direct data feeds and instead will utilize market data from the
Consolidated Quotation System (``CQS'')/UTP Quotation Data Feed
(``UQDF'') for such purposes with respect to the following markets
centers: Cboe BYX, Cboe EDGA, Nasdaq BX, Nasdaq PSX, NYSE American,
NYSE Chicago, and NYSE National. The Exchange will not have a secondary
source for data for these market centers.
The Exchange proposes for this proposed rule change to become
operative on August 1, 2022, which is the date that the Exchange
intends to switch data sources with respect to these market centers, as
described above.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\6\ 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 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that its proposal to update Exchange Rule
13.4(a) to reflect that it will utilize market data from the CQS/UQDF
with respect to Cboe BYX, Cboe EDGA, Nasdaq BX, Nasdaq PSX, NYSE
American, NYSE Chicago, and NYSE National is consistent with the Act
because it will ensure that the Rule correctly identifies and publicly
states on a market-by-market basis all of the specific network
processor and proprietary data feeds that the Exchange utilizes for the
handling, routing, and execution of orders, and for performing the
regulatory compliance checks related to each of those functions. In
particular, the Exchange receives and processes data feeds to
facilitate compliance with the applicable requirements of Regulation
NMS, including SEC Rule 611 (i.e., the Order Protection Rule).\7\ The
proposed rule change also removes impediments to and perfects the
mechanism of a free and open market and protects investors and the
public interest because it provides additional specificity, clarity and
transparency.
---------------------------------------------------------------------------
\7\ 17 CFR 242.611.
---------------------------------------------------------------------------
[[Page 47800]]
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes its proposed rule change would not impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, the Exchange
believes the proposal would enhance competition because disclosing the
primary and secondary data sources utilized by the Exchange with
respect to all of the exchanges enhances transparency and enables
investors to better assess the quality of the Exchange's execution and
routing services.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.\9\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \10\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay.
---------------------------------------------------------------------------
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The Exchange believes that waiver of the operative delay is
appropriate because the Commission previously approved MEMX Rule 13.4
to permit the Exchange to disclose via its rules the data feeds it
utilizes for order handling, routing and execution, and related
compliance processes, and the proposed changes merely provide necessary
updates to such disclosure. The Commission believes that waiver of the
30-day operative delay is consistent with the protection of investors
and the public interest because the proposed rule change does not raise
any new or novel issues and does not alter the Exchange's
functionality. Rather, the proposal memorializes that MEMX has chosen
not to subscribe to the direct proprietary market data feeds of several
exchanges, most of which currently have relatively low market share
(e.g., below 1%), and will instead utilize the applicable consolidated
market data source for those exchanges. MEMX's proposal is not novel,
as other exchanges also use the consolidated data feeds to receive data
from certain other exchanges.\12\ Therefore, the Commission hereby
waives the operative delay and designates the proposal as operative
upon filing.\13\
---------------------------------------------------------------------------
\12\ See, e.g., NYSE American Rule 7.37E(d) (showing that NYSE
American uses the consolidated data for several exchanges, including
MEMX).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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 under
Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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-MEMX-2022-20 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-MEMX-2022-20. 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-MEMX-2022-20 and should be submitted on
or before August 25, 2022.
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-16659 Filed 8-3-22; 8:45 am]
BILLING CODE 8011-01-P
