Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by Miami International Securities Exchange, LLC To Amend Exchange Rule 519C, Mass Cancellation of Trading Interest, 66340-66342 [2022-23869]

Download as PDF 66340 Federal Register / Vol. 87, No. 212 / Thursday, November 3, 2022 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–96171; File No. SR–MIAX– 2022–37] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by Miami International Securities Exchange, LLC To Amend Exchange Rule 519C, Mass Cancellation of Trading Interest October 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 October 19, 2022, Miami International Securities Exchange, LLC (‘‘MIAX Options’’ or the ‘‘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 is filing a proposal to amend Exchange Rule 519C, Mass Cancellation of Trading Interest. The text of the proposed rule change is available on the Exchange’s website at https://www.miaxoptions.com/rulefilings/ at MIAX Options’ principal office, and at the Commission’s Public Reference Room. lotter on DSK11XQN23PROD with NOTICES1 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Interpretations and Policies .01 of 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Sep<11>2014 16:41 Nov 02, 2022 Jkt 259001 Exchange Rule 519C, Mass Cancellation of Trading Interest, to provide Members 3 the option of having the Exchange cancel all orders, including GTC Orders,4 if the Exchange detects a loss of communication on a FIX Order Interface (‘‘FOI’’) Session. Background Electronic Exchange Members (‘‘EEMs’’) 5 connect to the Exchange via the Financial Information eXchange (‘‘FIX’’) Protocol.6 An EEM connects to their assigned FIX port using the MIAX FIX Order Interface (‘‘FOI’’) which is a flexible interface that uses the FIX protocol for both application and session level messages. The Exchange relies on heartbeat 7 messages to determine the status of the connection to ensure bi-directional communication remains intact. Upon missing a single heartbeat, FOI will send a Test Request message 8 to the Member to check the status of the connection. Upon missing a certain number of heartbeats,9 FOI will send a logout message and terminate the connection. The Exchange currently offers Members certain order handling risk protection options in this scenario. Specifically, when a Loss of Communication is detected on a FOI 3 The term ‘‘Member’’ means an individual or organization approved to exercise the trading rights associated with a Trading Permit. Members are deemed ‘‘members’’ under the Exchange Act. See Exchange Rule 100. 4 A Good ‘til Cancelled or ‘‘GTC’’ Order is an order to buy or sell which remains in effect until it is either executed, cancelled or the underlying option expires. See Exchange Rule 516(l). 5 The term ‘‘Electronic Exchange Member’’ or ‘‘EEM’’ means the holder of a Trading Permit who is not a Market Maker. Electronic Exchange Members are deemed ‘‘members’’ under the Exchange Act. See Exchange Rule 100. 6 The Financial Information eXchange (FIX) is a vendor-neutral electronic communications protocol for the international real-time exchange of securities transaction information. Scott, Gordon, Financial Information eXchange (FIX), Investopedia (June 20, 2022), https://www.investopedia.com/terms/f/ financial-information-exchange.asp. 7 A ‘‘Heartbeat’’ message is a communication which acts as a virtual pulse between the Exchange System and the Member’s system. The heartbeat message sent by the Member and received by the Exchange allows the Exchange to continually monitor its connection with the Member. See Interpretations and Policies .02(i) of Exchange Rule 519C. 8 The test request message is a FIX Protocol message that forces a heartbeat from the opposing application. The test request message checks sequence numbers or verifies communication line status. The opposite application responds to the Test Request with a Heartbeat containing the Test Request ID. Financial Information Exchange Protocol (FIX), Version 4.2 with errata. May 1, 2001. 9 The Exchange notes that the current System setting is two (2) heartbeats, and that any change to this setting will be determined by the Exchange and communicated to Members via Regulatory Circular. PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 connection the System will logoff the Member’s session and (i) cancel all eligible orders for the FIX Session if instructed by the Member upon login, or (ii) cancel all eligible orders identified by the Member. Following a disconnection, a reconnection will not be permitted for a certain period of time (‘‘yy’’ seconds). The Exchange shall determine the appropriate period of (‘‘yy’’ seconds) and shall notify Members of the value of ‘‘yy’’ seconds via Regulatory Circular. In no event shall ‘‘yy’’ be less than one (1) second or greater than ten (10) seconds.10 At the time the Exchange adopted this functionality the Exchange created an exception for Good ‘Til Cancel Orders in Interpretations and Policies .01, which stated, Good ‘Til Cancelled (‘‘GTC’’) orders, as defined in Rule 516 and PRIME Orders, as defined in Rule 515A, are not eligible for automatic cancellation under paragraph (c) of Rule 519C.11 Proposal The Exchange now proposes to amend Interpretations and Policies .01 to allow GTC orders to also be eligible for cancellation when the Exchange detects a Loss of Communication. As proposed, if the Exchange determines that there is a Loss of Communication, the Exchange will cancel the orders as described above, additionally, if elected, the Exchange proposes to cancel all GTC orders submitted through that FIX Session. As proposed, Members would need to contact the Exchange’s Help Desk,12 in a form and manner to be determined by the Exchange and communicated via Regulatory Circular, to have this optional order protection (cancellation of GTC orders) configured. 2. Statutory Basis The Exchange believes that its proposed rule change is consistent with Section 6(b) of the Act 13 in general, and furthers the objectives of 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 10 See Exchange Rule 519C(c)(2). Securities Exchange Act Release No. 80151 (March 3, 2017), 82 FR 13146 (March 9, 2017) (SR– MIAX–2017–08). 12 The term ‘‘Help Desk’’ means the Exchange’s control room consisting of Exchange staff authorized to make certain trading determinations on behalf of the Exchange. The Help Desk shall report to and be supervised by a senior executive officer of the Exchange. See Exchange Rule 100. 13 15 U.S.C. 78f(b). 14 15 U.S.C. 78f(b)(5). 11 See E:\FR\FM\03NON1.SGM 03NON1 lotter on DSK11XQN23PROD with NOTICES1 Federal Register / Vol. 87, No. 212 / Thursday, November 3, 2022 / Notices regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. The disconnect feature of FIX connections is mandatory, however Members have the option to enable the cancellation of all orders for an entire session or select orders for cancellation on an order-by-order basis, which would result in the cancellation of orders submitted over a FIX Session when such session disconnects. The Exchange believes it is appropriate to offer an additional option for Members to have the Exchange cancel GTC orders from the order book when there is a communication issue between the Member and the Exchange, as a communication issue may or may not be quickly resolved. Offering to cancel all orders (including GTC orders) allows the Member to customize Exchange risk protection functionality to align to a Member’s business needs. Offering this type of order cancellation functionality to Members is consistent with the Act because it enables Members to have greater control over the execution of their orders in the event there is a communication issue with the Exchange. The proposed order cancellation functionality is designed to mitigate the risk of a missed execution associated with a loss of communication with the Exchange. The proposed rule change is not unfairly discriminatory among market participants, as it is available equally to all market participants utilizing a FOI connection to the Exchange. The Exchange believes that the proposed rule change will assist with the maintenance of a fair and orderly market by providing Members with greater control over their resting orders. The Exchange’s proposal is consistent with the Act because it will mitigate the risk of potential erroneous or unintended executions associated with a loss of communication which protects investors and the public interest. Additionally, the proposed rule adds another level of risk protection for Members and protects investors and the public interest by increasing the risk protection options available to Members of the Exchange. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not VerDate Sep<11>2014 16:41 Nov 02, 2022 Jkt 259001 necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed rule change to provide an additional risk protection imposes any burden on intra-market competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that adding an optional risk protection benefits all Members on the Exchange that use a FOI connection as any Member with a FOI connection can elect to use the risk protection described in the proposed rule. The Exchange does not believe the proposed rule change will impose any burden on inter-market competition that is not necessary or appropriate in furtherance of the purposes of the Act. For all the reasons stated, 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. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate, it has become effective pursuant to 19(b)(3)(A) of the Act 15 and Rule 19b–4(f)(6) 16 thereunder. 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. 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 Frm 00085 Fmt 4703 Sfmt 4703 66341 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– MIAX–2022–37. 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–MIAX–2022–37. 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–MIAX–2022–37, and should be submitted on or before November 25, 2022. E:\FR\FM\03NON1.SGM 03NON1 66342 Federal Register / Vol. 87, No. 212 / Thursday, November 3, 2022 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 J. Matthew DeLesDernier, Deputy Secretary. [FR Doc. 2022–23869 Filed 11–2–22; 8:45 am] BILLING CODE 8011–01–P [Investment Company Act Release No. 34743] Applications for Deregistration Under Section 8(f) of the Investment Company Act of 1940 October 28, 2022. Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’). ACTION: Notice. lotter on DSK11XQN23PROD with NOTICES1 AGENCY: The following is a notice of applications for deregistration under section 8(f) of the Investment Company Act of 1940 for the month of October 2022. A copy of each application may be obtained via the Commission’s website by searching for the applicable file number listed below, or for an applicant using the Company name search field, on the SEC’s EDGAR system. The SEC’s EDGAR system may be searched at https://www.sec.gov/edgar/searchedgar/ legacy/companysearch.html. You may also call the SEC’s Public Reference Room at (202) 551–8090. An order granting each application will be issued unless the SEC orders a hearing. Interested persons may request a hearing on any application by emailing the SEC’s Secretary at SecretarysOffice@sec.gov and serving the relevant applicant with a copy of the request by email, if an email address is listed for the relevant applicant below, or personally or by mail, if a physical address is listed for the relevant applicant below. Hearing requests should be received by the SEC by 5:30 p.m. on November 22, 2022, and should be accompanied by proof of service on applicants, in the form of an affidavit or, for lawyers, a certificate of service. Pursuant to Rule 0–5 under the Act, hearing requests should state the nature of the writer’s interest, any facts bearing upon the desirability of a hearing on the matter, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by writing to the Commission’s Secretary at SecretarysOffice@sec.gov. ADDRESSES: The Commission: Secretarys-Office@sec.gov. CFR 200.30–3(a)(12). VerDate Sep<11>2014 16:41 Nov 02, 2022 Jkt 259001 Shawn Davis, Assistant Director, at (202) 551–6413 or Chief Counsel’s Office at (202) 551–6821; SEC, Division of Investment Management, Chief Counsel’s Office, 100 F Street NE, Washington, DC 20549–8010. BMO Exchange Traded Funds [File No. 811–23313] SECURITIES AND EXCHANGE COMMISSION 17 17 FOR FURTHER INFORMATION CONTACT: Summary: Applicant seeks an order declaring that it has ceased to be an investment company. Applicant has never made a public offering of its securities and does not propose to make a public offering or engage in business of any kind. Filing Date: The application was filed on September 19, 2022. Applicant’s Address: Gisele.sutherland@bmo.com. Infusive US Trust [File No. 811–23426] Summary: Applicant seeks an order declaring that it has ceased to be an investment company. On June 21, 2022, applicant made a liquidating distribution to its shareholders based on net asset value. Expenses of $35,000 incurred in connection with the liquidation were paid by the applicant’s investment adviser. Filing Date: The application was filed on July 12, 2022. Applicant’s Address: brett@ infusive.com. Master Large Cap Series LLC [File No. 811–09739] Summary: Applicant seeks an order declaring that it has ceased to be an investment company. On April 25, 2022, applicant made a liquidating distribution to its shareholders based on net asset value. Expenses of $4,000 incurred in connection with the liquidation were paid by the applicant’s investment adviser or its affiliates. Filing Date: The application was filed on September 30, 2022. Applicant’s Address: jkean@ sidley.com. NexPoint Latin American Opportunities Fund [File No. 811–23153] Summary: Applicant, a closed-end investment company, seeks an order declaring that it has ceased to be an investment company. Applicant has never made a public offering of its securities and does not propose to make a public offering or engage in business of any kind. Filing Date: The application was filed on September 29, 2022. Applicant’s Address: cal.gilmartin@ klgates.com. PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 Salient Midstream & MLP Fund [File No. 811–22626] Summary: Applicant, a closed-end investment company, seeks an order declaring that it has ceased to be an investment company. The applicant has transferred its assets to Salient MLP & Energy Infrastructure Fund, a series of Salient MF Trust and on September 13, 2022 made a final distribution to its shareholders based on net asset value. Expenses of $315,000 incurred in connection with the reorganization were paid by the applicant and the acquiring fund. Filing Date: The application was filed on September 29, 2022. Applicant’s Address: cal.gilmartin@ klgates.com. For the Commission, by the Division of Investment Management, pursuant to delegated authority. Sherry R. Haywood, Assistant Secretary. [FR Doc. 2022–23884 Filed 11–2–22; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #17667 and #17668; Florida Disaster Number FL–00180] Presidential Declaration Amendment of a Major Disaster for Public Assistance Only for the State of Florida Small Business Administration. Amendment 5. AGENCY: ACTION: This is an amendment of the Presidential declaration of a major disaster for Public Assistance Only for the State of Florida (FEMA–4673–DR), dated 10/03/2022. Incident: Hurricane Ian. Incident Period: 09/23/2022 and continuing. SUMMARY: Issued on 10/27/2022. Physical Loan Application Deadline Date: 12/02/2022. Economic Injury (EIDL) Loan Application Deadline Date: 07/03/2023. 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: The notice of the President’s major disaster declaration for Private Non-Profit organizations in the State of Florida, dated 10/03/2022, is hereby amended to DATES: E:\FR\FM\03NON1.SGM 03NON1

Agencies

[Federal Register Volume 87, Number 212 (Thursday, November 3, 2022)]
[Notices]
[Pages 66340-66342]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-23869]



[[Page 66340]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96171; File No. SR-MIAX-2022-37]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by Miami International 
Securities Exchange, LLC To Amend Exchange Rule 519C, Mass Cancellation 
of Trading Interest

October 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 October 19, 2022, Miami International Securities Exchange, LLC 
(``MIAX Options'' or the ``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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to amend Exchange Rule 519C, Mass 
Cancellation of Trading Interest.
    The text of the proposed rule change is available on the Exchange's 
website at https://www.miaxoptions.com/rule-filings/ at MIAX Options' 
principal office, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Interpretations and Policies .01 of 
Exchange Rule 519C, Mass Cancellation of Trading Interest, to provide 
Members \3\ the option of having the Exchange cancel all orders, 
including GTC Orders,\4\ if the Exchange detects a loss of 
communication on a FIX Order Interface (``FOI'') Session.
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    \3\ The term ``Member'' means an individual or organization 
approved to exercise the trading rights associated with a Trading 
Permit. Members are deemed ``members'' under the Exchange Act. See 
Exchange Rule 100.
    \4\ A Good `til Cancelled or ``GTC'' Order is an order to buy or 
sell which remains in effect until it is either executed, cancelled 
or the underlying option expires. See Exchange Rule 516(l).
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Background
    Electronic Exchange Members (``EEMs'') \5\ connect to the Exchange 
via the Financial Information eXchange (``FIX'') Protocol.\6\ An EEM 
connects to their assigned FIX port using the MIAX FIX Order Interface 
(``FOI'') which is a flexible interface that uses the FIX protocol for 
both application and session level messages. The Exchange relies on 
heartbeat \7\ messages to determine the status of the connection to 
ensure bi-directional communication remains intact. Upon missing a 
single heartbeat, FOI will send a Test Request message \8\ to the 
Member to check the status of the connection. Upon missing a certain 
number of heartbeats,\9\ FOI will send a logout message and terminate 
the connection. The Exchange currently offers Members certain order 
handling risk protection options in this scenario.
---------------------------------------------------------------------------

    \5\ The term ``Electronic Exchange Member'' or ``EEM'' means the 
holder of a Trading Permit who is not a Market Maker. Electronic 
Exchange Members are deemed ``members'' under the Exchange Act. See 
Exchange Rule 100.
    \6\ The Financial Information eXchange (FIX) is a vendor-neutral 
electronic communications protocol for the international real-time 
exchange of securities transaction information. Scott, Gordon, 
Financial Information eXchange (FIX), Investopedia (June 20, 2022), 
https://www.investopedia.com/terms/f/financial-information-exchange.asp.
    \7\ A ``Heartbeat'' message is a communication which acts as a 
virtual pulse between the Exchange System and the Member's system. 
The heartbeat message sent by the Member and received by the 
Exchange allows the Exchange to continually monitor its connection 
with the Member. See Interpretations and Policies .02(i) of Exchange 
Rule 519C.
    \8\ The test request message is a FIX Protocol message that 
forces a heartbeat from the opposing application. The test request 
message checks sequence numbers or verifies communication line 
status. The opposite application responds to the Test Request with a 
Heartbeat containing the Test Request ID. Financial Information 
Exchange Protocol (FIX), Version 4.2 with errata. May 1, 2001.
    \9\ The Exchange notes that the current System setting is two 
(2) heartbeats, and that any change to this setting will be 
determined by the Exchange and communicated to Members via 
Regulatory Circular.
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    Specifically, when a Loss of Communication is detected on a FOI 
connection the System will logoff the Member's session and (i) cancel 
all eligible orders for the FIX Session if instructed by the Member 
upon login, or (ii) cancel all eligible orders identified by the 
Member. Following a disconnection, a reconnection will not be permitted 
for a certain period of time (``yy'' seconds). The Exchange shall 
determine the appropriate period of (``yy'' seconds) and shall notify 
Members of the value of ``yy'' seconds via Regulatory Circular. In no 
event shall ``yy'' be less than one (1) second or greater than ten (10) 
seconds.\10\
---------------------------------------------------------------------------

    \10\ See Exchange Rule 519C(c)(2).
---------------------------------------------------------------------------

    At the time the Exchange adopted this functionality the Exchange 
created an exception for Good `Til Cancel Orders in Interpretations and 
Policies .01, which stated, Good `Til Cancelled (``GTC'') orders, as 
defined in Rule 516 and PRIME Orders, as defined in Rule 515A, are not 
eligible for automatic cancellation under paragraph (c) of Rule 
519C.\11\
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    \11\ See Securities Exchange Act Release No. 80151 (March 3, 
2017), 82 FR 13146 (March 9, 2017) (SR-MIAX-2017-08).
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Proposal
    The Exchange now proposes to amend Interpretations and Policies .01 
to allow GTC orders to also be eligible for cancellation when the 
Exchange detects a Loss of Communication.
    As proposed, if the Exchange determines that there is a Loss of 
Communication, the Exchange will cancel the orders as described above, 
additionally, if elected, the Exchange proposes to cancel all GTC 
orders submitted through that FIX Session. As proposed, Members would 
need to contact the Exchange's Help Desk,\12\ in a form and manner to 
be determined by the Exchange and communicated via Regulatory Circular, 
to have this optional order protection (cancellation of GTC orders) 
configured.
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    \12\ The term ``Help Desk'' means the Exchange's control room 
consisting of Exchange staff authorized to make certain trading 
determinations on behalf of the Exchange. The Help Desk shall report 
to and be supervised by a senior executive officer of the Exchange. 
See Exchange Rule 100.
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2. Statutory Basis
    The Exchange believes that its proposed rule change is consistent 
with Section 6(b) of the Act \13\ in general, and furthers the 
objectives of 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

[[Page 66341]]

regulating, clearing, settling, processing information with respect to, 
and facilitating transactions in securities, to remove impediments to 
and perfect the mechanisms of a free and open market and a national 
market system and, in general, to protect investors and the public 
interest.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The disconnect feature of FIX connections is mandatory, however 
Members have the option to enable the cancellation of all orders for an 
entire session or select orders for cancellation on an order-by-order 
basis, which would result in the cancellation of orders submitted over 
a FIX Session when such session disconnects. The Exchange believes it 
is appropriate to offer an additional option for Members to have the 
Exchange cancel GTC orders from the order book when there is a 
communication issue between the Member and the Exchange, as a 
communication issue may or may not be quickly resolved.
    Offering to cancel all orders (including GTC orders) allows the 
Member to customize Exchange risk protection functionality to align to 
a Member's business needs. Offering this type of order cancellation 
functionality to Members is consistent with the Act because it enables 
Members to have greater control over the execution of their orders in 
the event there is a communication issue with the Exchange. The 
proposed order cancellation functionality is designed to mitigate the 
risk of a missed execution associated with a loss of communication with 
the Exchange. The proposed rule change is not unfairly discriminatory 
among market participants, as it is available equally to all market 
participants utilizing a FOI connection to the Exchange.
    The Exchange believes that the proposed rule change will assist 
with the maintenance of a fair and orderly market by providing Members 
with greater control over their resting orders. The Exchange's proposal 
is consistent with the Act because it will mitigate the risk of 
potential erroneous or unintended executions associated with a loss of 
communication which protects investors and the public interest. 
Additionally, the proposed rule adds another level of risk protection 
for Members and protects investors and the public interest by 
increasing the risk protection options available to Members of the 
Exchange.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.
    The Exchange does not believe that the proposed rule change to 
provide an additional risk protection imposes any burden on intra-
market competition that is not necessary or appropriate in furtherance 
of the purposes of the Act. The Exchange believes that adding an 
optional risk protection benefits all Members on the Exchange that use 
a FOI connection as any Member with a FOI connection can elect to use 
the risk protection described in the proposed rule.
    The Exchange does not believe the proposed rule change will impose 
any burden on inter-market competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. For all the 
reasons stated, 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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days after the date of the filing, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to 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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    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-MIAX-2022-37.

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-MIAX-2022-37. 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-MIAX-2022-37, and should be submitted on 
or before November 25, 2022.


[[Page 66342]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-23869 Filed 11-2-22; 8:45 am]
BILLING CODE 8011-01-P
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