Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 2622, Limit Up-Limit Down Plan and Trading Halts, 30815-30817 [2023-10127]
Download as PDF
<![CDATA[
Federal Register / Vol. 88, No. 92 / Friday, May 12, 2023 / Notices
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 such
filings will also be available for
inspection and copying at the principal
office of ICE Clear Credit and on ICE
Clear Credit’s website at https://
www.theice.com/clear-credit/regulation.
Do not include personal identifiable
information in submissions; you should
submit only information that you wish
to make available publicly. We may
redact in part or withhold entirely from
publication submitted material that is
obscene or subject to copyright
protection. All submissions should refer
to File Number SR–ICC–2023–008 and
should be submitted on or before June
2, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–10129 Filed 5–11–23; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–97454; File No. SR–
PEARL–2023–21]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Exchange
Rule 2622, Limit Up-Limit Down Plan
and Trading Halts
lotter on DSK11XQN23PROD with NOTICES1
May 8, 2023.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 3,
2023, MIAX PEARL, LLC (‘‘MIAX Pearl’’
or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change
as described in Items I and II below,
which Items have been prepared by the
Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
19:11 May 11, 2023
Jkt 259001
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
SECURITIES AND EXCHANGE
COMMISSION
17 17
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to make a
correction to a recently filed proposal to
amend Exchange Rule 2622, which sets
forth common criteria and procedures
for halting and resuming trading in
equity securities on the Exchange’s
equity trading platform (referred to
herein as ‘‘MIAX Pearl Equities’’) in the
event of regulatory or operational issues.
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/pearl at MIAX Pearl’s principal
office, and at the Commission’s Public
Reference Room.
1. Purpose
In conjunction with the adoption of
an amended Nasdaq UTP Plan proposed
by its participants (‘‘Amended Nasdaq
UTP Plan’’),3 the Exchange recently
amended Exchange Rule 2622 to
integrate several definitions and
concepts from the Amended Nasdaq
3 On February 11, 2021, the Nasdaq UTP Plan
participants filed Amendment 50 to the Plan, to
revise provisions governing regulatory and
operational halts. See Letter from Robert Brooks,
Chairman, UTP Operating Committee, Nasdaq UTP
Plan, to Vanessa Countryman, Secretary, Securities
and Exchange Commission, dated February 11,
2021. The Nasdaq UTP Plan subsequently filed two
partial amendments to the 50th Amendment, on
March 31, 2021 and on April 7, 2021. The
Commission approved the amendments on May 28,
2021. See Securities Exchange Act Release No. 34–
92071 (May 28, 2021), 86 FR 29846 (June 3, 2021)
(S7–24–89). The Amended Nasdaq UTP Plan
includes provisions requiring participant selfregulatory organizations (‘‘SROs’’) to honor a
Regulatory Halt declared by the Primary Listing
Market. The provisions in the Nasdaq UTP Plan,
and the plan for consolidation of data for nonNasdaq-listed securities, the Consolidated Tape
System and Consolidated Quotations System
(collectively, the ‘‘CTA/CQS Plan’’), include
provisions similar to the changes proposed by the
Exchange in this filing.
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
30815
UTP Plan and to reorganize the rule in
light of the Exchange’s experience with
applying the rule over the past few years
as a national securities exchange.4 In
sum, the proposal amended Exchange
Rule 2622 to set forth common criteria
and procedures for halting and
resuming trading in equity securities on
MIAX Pearl Equities in the event of
regulatory or operational issues. As part
of that proposal, the Exchange adopted
paragraph (h)(3)(C)(ii) of Exchange Rule
2622, which provides that ‘‘orders
entered during the Operational Halt 5
will not be accepted, unless subject to
instructions that the order will be
directed to another Trading Center.’’
The text of paragraph (h)(3)(C)(ii) of
Exchange Rule 2622 was adopted in
error since the Exchange does accept
orders during an Operational Halt, as set
forth under Exchange Rule 2615(e),6
described below. Paragraph (h)(3)(C)(ii)
of Exchange Rule 2622, therefore,
conflicts with existing provisions in
Exchange Rule 2615(e). The Exchange
proposes to amend paragraph
(h)(3)(C)(ii) of Exchange Rule 2622 to
clarify how the Exchange handles orders
during an operational halt and to be
consistent with current Exchange Rule
2615(e).
Exchange Rule 2615(e) describes the
Exchange’s Re-Opening Process and
provides, in sum, that while an equity
security is subject to a halt, other than
a halt initiated pursuant to Exchange
Rule 2622(b)(2) following a Level 3
Market Decline, suspension, or pause in
trading, the Exchange will accept orders
for queuing prior to the resumption of
trading in the security for participation
in the Re-Opening Process. Exchange
Rule 2615(e)(1) further provides, in
sum, that the Re-Opening Process will
occur in the same manner as the
Exchange’s Opening Process,7 and
enumerates certain exceptions. One
exception is set forth under Exchange
Rule 2615(e)(1)(A), which provides that
4 See Securities Exchange Act Release No. 97093
(March 9, 2023), 88 FR 16045 (March 15, 2023) (SR–
PEARL–2023–11).
5 Exchange Rule 2622(h)(1)(D) defines
‘‘Operational Halt’’ as having the same meaning as
in Section X.A.7 of the Amended Nasdaq UTP Plan.
Specifically, the Exchange defined Operational Halt
to mean a halt in trading in one or more securities
only on the market declaring the halt and is not a
Regulatory Halt. An Operational Halt is effective
only on the Exchange; other markets are not
required to halt trading in the impacted securities.
See also id.
6 See Securities Exchange Act Release No. 89563
(August 14, 2020), 85 FR 51510 (August 20, 2020)
(SR–PEARL–2020–03) (adopting Exchange Rule
2615(e)).
7 See Exchange Rule 2615(a)–(c) for a description
of the Exchange’s Opening Process.
E:\FR\FM\12MYN1.SGM
12MYN1
30816
Federal Register / Vol. 88, No. 92 / Friday, May 12, 2023 / Notices
Intermarket Sweep Orders (‘‘ISOs’’) 8
and orders that include a time-in-force
of Immediate-or-Cancel (‘‘IOC’’) 9 will be
cancelled or rejected, as applicable.10
These provisions conflict with recently
adopted paragraph (h)(3)(C)(ii) of
Exchange Rule 2622. The Exchange,
therefore, proposes to amend paragraph
(h)(3)(C)(ii) of Exchange Rule 2622 to be
consistent with Exchange Rule
2615(e)(1).11
As amended, paragraph (h)(3)(C)(ii) of
Exchange Rule 2622 would provide that,
‘‘[d]uring any Operational Halt, the
System will accept all orders, except
orders designated as ISO and orders that
include a time-in-force of IOC, for
queuing and participation in the ReOpening Process pursuant to Rule
2615(e).’’ As amended, paragraph
(h)(3)(C)(ii) of Exchange Rule 2622
would reflect current functionality that
is currently set forth under Exchange
Rule 2615(e) and the proposed
amendments would remove any chance
for potential investor confusion
regarding how the Exchange handles
orders in equity securities during an
Operational Halt. The Exchange does
not propose any other changes to
Exchange Rule 2622.
lotter on DSK11XQN23PROD with NOTICES1
2. Statutory Basis
The Exchange believes that its
proposal is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange, and, in particular, with the
requirements of section 6(b) of the
Act.12 Specifically, the proposal is
consistent with section 6(b)(5) of the
Act 13 because it would promote just
and equitable principles of trade,
remove impediments to, and perfect the
mechanism of, a free and open market
and a national market system, and, in
general, protect investors and the public
interest because it proposes to correct
paragraph (h)(3)(C)(ii) of Exchange Rule
8 See Exchange Rule 2614(d) for a description of
ISOs.
9 See Exchange Rule 2614(b)(1) for a description
of the IOC time-in-force.
10 Exchange Rule 2615(e)(1)(A) also provides that
Orders with a time-in-force of Regular Hours Only
(‘‘RHO’’) that include a Post Only instruction or a
Minimum Execution Quantity instruction will be
accepted and retained during a halt but are not
eligible to participate in the Re-Opening Process.
See Exchange Rule 2614(b)(2) for a description of
the RHO time-in-force. See Exchange Rule
2614(c)(2) for a description of the Post Only
instruction. See Exchange Rule 2614(c)(7) for a
description of the Minimum Execution Quantity
instruction.
11 MIAX Pearl Equities has not experienced an
Operational Halt since the proposed amendments to
Exchange Rule 2622 were filed on February 28,
2023.
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014
19:11 May 11, 2023
Jkt 259001
2622 to reflect current functionality that
is set for under Exchange Rule 2615(e)
and remove any conflict between the
two rules. The Exchange does not
propose any other changes to Exchange
Rule 2622. The proposed rule change
would prevent any potential investor
confusion by providing clarity within
the rule text and make the Exchange’s
rules easier to understand, thereby
removing impediments to and
perfecting the mechanism of a free and
open market and a national market
system.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would result
in any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
The proposed rule change would not
have any impact on inter-market
competition or intra-market competition
because it simply updates paragraph
(h)(3)(C)(ii) of Exchange Rule 2622 to
reflect current functionality that is set
forth under Exchange Rule 2615(e) and
removes any conflict between the two
rules. The proposed rule change does
not propose any new functionality,
products, or services, and thus, would
not have any impact on competition.
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 14 and Rule 19b–4(f)(6) 15
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 16 normally does not
become operative prior to 30 days after
14 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, 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.
16 17 CFR 240.19b–4(f)(6).
15 17
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),17 the
Commission may designate a shorter
time if such action is consistent with the
protection of investor and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposed
rule change may become operative upon
filing. The Exchange states that the
proposed rule change would remove
potential investor confusion regarding
how the Exchange handles orders in
equity securities during an Operational
Halt. For this reason, and because the
proposed rule change does not raise any
novel regulatory issues, the Commission
believes waiving the 30-day operative
delay is consistent with the protection
of investors and the public interest.
Therefore, the Commission hereby
waives the operative delay and
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–
PEARL–2023–21 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–PEARL–2023–21. This file
number should be included on the
subject line if email is used. To help the
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’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
18 For
E:\FR\FM\12MYN1.SGM
12MYN1
Federal Register / Vol. 88, No. 92 / Friday, May 12, 2023 / Notices
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. Do not include
personal identifiable information in
submissions; you should submit only
information that you wish to make
available publicly. We may redact in
part or withhold entirely from
publication submitted material that is
obscene or subject to copyright
protection. All submissions should refer
to File Number SR–PEARL–2023–21
and should be submitted on or before
June 2, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–10127 Filed 5–11–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–275, OMB Control No.
3235–0310]
lotter on DSK11XQN23PROD with NOTICES1
Submission for OMB Review;
Comment Request; Extension: Rule
22d–1
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(‘‘Paperwork Reduction Act’’) (44 U.S.C.
3501–3520), the Securities and
Exchange Commission (the
‘‘Commission’’) has submitted to the
19 17
CFR 200.30–3(a)(12), (59).
VerDate Sep<11>2014
19:11 May 11, 2023
Jkt 259001
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information discussed below.
Rule 22d–1 under the Investment
Company Act of 1940 (the ‘‘1940 Act’’)
(17 CFR 270.22d–1) provides registered
investment companies that issue
redeemable securities (‘‘funds’’) an
exemption from section 22(d) of the
1940 Act (15 U.S.C. 80a–22(d)) to the
extent necessary to permit scheduled
variations in or elimination of the sales
load on fund securities for particular
classes of investors or transactions,
provided certain conditions are met.
The rule imposes an annual burden per
series of a fund of approximately 15
minutes, so that the total annual burden
for the approximately 3,776 series of
funds that might rely on the rule is
estimated to be 944 hours.1
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act. The estimate
is based on communications with
industry representatives, and is not
derived from a comprehensive or even
a representative survey or study.
Responses will not be kept
confidential. An agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice by June 12, 2023 to (i)
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission,
c/o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: May 8, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–10116 Filed 5–11–23; 8:45 am]
BILLING CODE 8011–01–P
1 This estimate is based on the following
calculation: 3,776 series × 0.25 burden hours = 944
total annual burden hours.
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
30817
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97457; File No. SR–
CboeBZX–2023–029]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Rule
21.8 Regarding Certain Cancel-Replace
Messages
May 8, 2023.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 25,
2023, Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) 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
Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX Options’’)
proposes to amend Rule 21.8. 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/
equities/regulation/rule_filings/bzx/), 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
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.
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
E:\FR\FM\12MYN1.SGM
12MYN1
]]>Agencies
[Federal Register Volume 88, Number 92 (Friday, May 12, 2023)]
[Notices]
[Pages 30815-30817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-10127]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97454; File No. SR-PEARL-2023-21]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange
Rule 2622, Limit Up-Limit Down Plan and Trading Halts
May 8, 2023.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 3, 2023, MIAX PEARL, LLC (``MIAX Pearl'' or the ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') a
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to make a correction to a recently filed
proposal to amend Exchange Rule 2622, which sets forth common criteria
and procedures for halting and resuming trading in equity securities on
the Exchange's equity trading platform (referred to herein as ``MIAX
Pearl Equities'') in the event of regulatory or operational issues.
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxoptions.com/rule-filings/pearl at MIAX
Pearl's 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
In conjunction with the adoption of an amended Nasdaq UTP Plan
proposed by its participants (``Amended Nasdaq UTP Plan''),\3\ the
Exchange recently amended Exchange Rule 2622 to integrate several
definitions and concepts from the Amended Nasdaq UTP Plan and to
reorganize the rule in light of the Exchange's experience with applying
the rule over the past few years as a national securities exchange.\4\
In sum, the proposal amended Exchange Rule 2622 to set forth common
criteria and procedures for halting and resuming trading in equity
securities on MIAX Pearl Equities in the event of regulatory or
operational issues. As part of that proposal, the Exchange adopted
paragraph (h)(3)(C)(ii) of Exchange Rule 2622, which provides that
``orders entered during the Operational Halt \5\ will not be accepted,
unless subject to instructions that the order will be directed to
another Trading Center.'' The text of paragraph (h)(3)(C)(ii) of
Exchange Rule 2622 was adopted in error since the Exchange does accept
orders during an Operational Halt, as set forth under Exchange Rule
2615(e),\6\ described below. Paragraph (h)(3)(C)(ii) of Exchange Rule
2622, therefore, conflicts with existing provisions in Exchange Rule
2615(e). The Exchange proposes to amend paragraph (h)(3)(C)(ii) of
Exchange Rule 2622 to clarify how the Exchange handles orders during an
operational halt and to be consistent with current Exchange Rule
2615(e).
---------------------------------------------------------------------------
\3\ On February 11, 2021, the Nasdaq UTP Plan participants filed
Amendment 50 to the Plan, to revise provisions governing regulatory
and operational halts. See Letter from Robert Brooks, Chairman, UTP
Operating Committee, Nasdaq UTP Plan, to Vanessa Countryman,
Secretary, Securities and Exchange Commission, dated February 11,
2021. The Nasdaq UTP Plan subsequently filed two partial amendments
to the 50th Amendment, on March 31, 2021 and on April 7, 2021. The
Commission approved the amendments on May 28, 2021. See Securities
Exchange Act Release No. 34-92071 (May 28, 2021), 86 FR 29846 (June
3, 2021) (S7-24-89). The Amended Nasdaq UTP Plan includes provisions
requiring participant self-regulatory organizations (``SROs'') to
honor a Regulatory Halt declared by the Primary Listing Market. The
provisions in the Nasdaq UTP Plan, and the plan for consolidation of
data for non-Nasdaq-listed securities, the Consolidated Tape System
and Consolidated Quotations System (collectively, the ``CTA/CQS
Plan''), include provisions similar to the changes proposed by the
Exchange in this filing.
\4\ See Securities Exchange Act Release No. 97093 (March 9,
2023), 88 FR 16045 (March 15, 2023) (SR-PEARL-2023-11).
\5\ Exchange Rule 2622(h)(1)(D) defines ``Operational Halt'' as
having the same meaning as in Section X.A.7 of the Amended Nasdaq
UTP Plan. Specifically, the Exchange defined Operational Halt to
mean a halt in trading in one or more securities only on the market
declaring the halt and is not a Regulatory Halt. An Operational Halt
is effective only on the Exchange; other markets are not required to
halt trading in the impacted securities. See also id.
\6\ See Securities Exchange Act Release No. 89563 (August 14,
2020), 85 FR 51510 (August 20, 2020) (SR-PEARL-2020-03) (adopting
Exchange Rule 2615(e)).
---------------------------------------------------------------------------
Exchange Rule 2615(e) describes the Exchange's Re-Opening Process
and provides, in sum, that while an equity security is subject to a
halt, other than a halt initiated pursuant to Exchange Rule 2622(b)(2)
following a Level 3 Market Decline, suspension, or pause in trading,
the Exchange will accept orders for queuing prior to the resumption of
trading in the security for participation in the Re-Opening Process.
Exchange Rule 2615(e)(1) further provides, in sum, that the Re-Opening
Process will occur in the same manner as the Exchange's Opening
Process,\7\ and enumerates certain exceptions. One exception is set
forth under Exchange Rule 2615(e)(1)(A), which provides that
[[Page 30816]]
Intermarket Sweep Orders (``ISOs'') \8\ and orders that include a time-
in-force of Immediate-or-Cancel (``IOC'') \9\ will be cancelled or
rejected, as applicable.\10\ These provisions conflict with recently
adopted paragraph (h)(3)(C)(ii) of Exchange Rule 2622. The Exchange,
therefore, proposes to amend paragraph (h)(3)(C)(ii) of Exchange Rule
2622 to be consistent with Exchange Rule 2615(e)(1).\11\
---------------------------------------------------------------------------
\7\ See Exchange Rule 2615(a)-(c) for a description of the
Exchange's Opening Process.
\8\ See Exchange Rule 2614(d) for a description of ISOs.
\9\ See Exchange Rule 2614(b)(1) for a description of the IOC
time-in-force.
\10\ Exchange Rule 2615(e)(1)(A) also provides that Orders with
a time-in-force of Regular Hours Only (``RHO'') that include a Post
Only instruction or a Minimum Execution Quantity instruction will be
accepted and retained during a halt but are not eligible to
participate in the Re-Opening Process. See Exchange Rule 2614(b)(2)
for a description of the RHO time-in-force. See Exchange Rule
2614(c)(2) for a description of the Post Only instruction. See
Exchange Rule 2614(c)(7) for a description of the Minimum Execution
Quantity instruction.
\11\ MIAX Pearl Equities has not experienced an Operational Halt
since the proposed amendments to Exchange Rule 2622 were filed on
February 28, 2023.
---------------------------------------------------------------------------
As amended, paragraph (h)(3)(C)(ii) of Exchange Rule 2622 would
provide that, ``[d]uring any Operational Halt, the System will accept
all orders, except orders designated as ISO and orders that include a
time-in-force of IOC, for queuing and participation in the Re-Opening
Process pursuant to Rule 2615(e).'' As amended, paragraph (h)(3)(C)(ii)
of Exchange Rule 2622 would reflect current functionality that is
currently set forth under Exchange Rule 2615(e) and the proposed
amendments would remove any chance for potential investor confusion
regarding how the Exchange handles orders in equity securities during
an Operational Halt. The Exchange does not propose any other changes to
Exchange Rule 2622.
2. Statutory Basis
The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of section 6(b) of the Act.\12\ Specifically, the
proposal is consistent with section 6(b)(5) of the Act \13\ because it
would promote just and equitable principles of trade, remove
impediments to, and perfect the mechanism of, a free and open market
and a national market system, and, in general, protect investors and
the public interest because it proposes to correct paragraph
(h)(3)(C)(ii) of Exchange Rule 2622 to reflect current functionality
that is set for under Exchange Rule 2615(e) and remove any conflict
between the two rules. The Exchange does not propose any other changes
to Exchange Rule 2622. The proposed rule change would prevent any
potential investor confusion by providing clarity within the rule text
and make the Exchange's rules easier to understand, thereby removing
impediments to and perfecting the mechanism of a free and open market
and a national market system.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change would
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended. The
proposed rule change would not have any impact on inter-market
competition or intra-market competition because it simply updates
paragraph (h)(3)(C)(ii) of Exchange Rule 2622 to reflect current
functionality that is set forth under Exchange Rule 2615(e) and removes
any conflict between the two rules. The proposed rule change does not
propose any new functionality, products, or services, and thus, would
not have any impact on competition.
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 \14\ and Rule 19b-4(f)(6) \15\
thereunder.
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 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, 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 under Rule 19b-4(f)(6) \16\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\17\ the Commission
may designate a shorter time if such action is consistent with the
protection of investor and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become operative upon filing. The Exchange states that
the proposed rule change would remove potential investor confusion
regarding how the Exchange handles orders in equity securities during
an Operational Halt. For this reason, and because the proposed rule
change does not raise any novel regulatory issues, the Commission
believes waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. Therefore, the
Commission hereby waives the operative delay and designates the
proposal operative upon filing.\18\
---------------------------------------------------------------------------
\16\ 17 CFR 240.19b-4(f)(6).
\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'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 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-PEARL-2023-21 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-PEARL-2023-21. This file
number should be included on the subject line if email is used. To help
the
[[Page 30817]]
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. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to File Number SR-PEARL-2023-21 and should be submitted on
or before June 2, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------
\19\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-10127 Filed 5-11-23; 8:45 am]
BILLING CODE 8011-01-P
