Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Equity 7, Section 118, 31090-31092 [2023-10247]
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31090
Federal Register / Vol. 88, No. 93 / Monday, May 15, 2023 / Notices
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. 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–NYSEARCA–2023–
35, and should be submitted on or
before June 5, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Sherry R. Haywood,
Assistant Secretary.
this meeting changes, an announcement
of the change, along with the new time,
date, and/or place of the meeting will be
posted on the Commission’s website at
https://www.sec.gov.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
The subject matter of the closed
meeting will consist of the following
topics:
Institution and settlement of injunctive
actions;
Institution and settlement of
administrative proceedings;
Resolution of litigation claims; and
Other matters relating to examinations
and enforcement proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting agenda items that
may consist of adjudicatory,
examination, litigation, or regulatory
matters.
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
(Authority: 5 U.S.C. 552b)
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
Dated: May 11, 2023.
Vanessa A. Countryman,
Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2023–10386 Filed 5–11–23; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97464; File No. SR–BX–
2023–010]
Sunshine Act Meetings
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Equity 7,
Section 118
2 p.m. on Thursday, May
18, 2023.
PLACE: The meeting will be held via
remote means and/or at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to
the public.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present. In the
event that the time, date, or location of
ddrumheller on DSK120RN23PROD with NOTICES1
May 9, 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 1,
2023, Nasdaq BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III, below, which Items have been
prepared by the Exchange. The
1 15
20 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
19:07 May 12, 2023
2 17
Jkt 259001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00148
Fmt 4703
The Exchange proposes to amend
Equity 7, Section 118(a) to exclude
certain days for purposes of calculating
Consolidated Volume and trading
activity, as described further below.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/bx/rules, at the principal office
of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
1. Purpose
BILLING CODE 8011–01–P
[FR Doc. 2023–10243 Filed 5–12–23; 8:45 am]
TIME AND DATE:
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Sfmt 4703
The purpose of the proposed rule
change is to amend Equity 7, Section
118(a) to exclude certain days for
purposes of calculating Consolidated
Volume and trading activity.
Specifically, the Exchange also proposes
to amend Equity 7, Section 118(a) to
exclude the following from calculations
of total Consolidated Volume and the
member’s trading activity for purposes
of volume calculations for equity
pricing tiers/incentives: (1) the dates on
which stock options, stock index
options, and stock index futures expire
(i.e., the third Friday of March, June,
September, and December) (‘‘Triple
Witch Dates’’); (2) the dates on which
the MSCI Equity Indexes are rebalanced
(i.e., on a quarterly basis) (‘‘MSCI
Rebalance Dates’’); (3) the dates on
which the S&P 400, S&P 500, and S&P
600 Indexes are rebalanced (i.e., on a
quarterly basis) (‘‘S&P Rebalance
Dates’’); and (4) and the date of the
annual reconstitution of the Nasdaq-100
and Nasdaq Biotechnology Indexes
(‘‘Nasdaq Reconstitution Date’’).
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Federal Register / Vol. 88, No. 93 / Monday, May 15, 2023 / Notices
ddrumheller on DSK120RN23PROD with NOTICES1
Currently, the Exchange excludes the
date of the annual reconstitution of the
Russell Investments Indexes from
calculations of total Consolidated
Volume and the member’s trading
activity for purposes of volume
calculations for equity pricing tiers/
incentives.
For the same reasons that the
Exchange currently excludes the date of
the annual reconstitution of the Russell
Investments Indexes from these
calculations, the Exchange believes it is
appropriate to exclude Triple Witch
Dates, MSCI Rebalance Dates, S&P
Rebalance Dates, and the Nasdaq
Reconstitution Date from these
calculations in the same manner, as
trading volumes on such days are
generally far in excess of volumes on
other days during the month, and
market participants that are not
otherwise active on the Exchange to a
great extent often participate on the
Exchange on such dates to rebalance
holdings, or in the case of Triple Witch
Dates, to close out or roll over positions
prior to expiration. The Exchange
believes this change to normal activity
may affect a member’s ability to meet
the applicable volume thresholds under
its volume-based tiers. The Exchange
notes that the proposed exclusion of
Triple Witch Dates, MSCI Rebalance
Dates, S&P Rebalance Dates, and the
Nasdaq Reconstitution Date from the
relevant calculations would be applied
in the same manner that the Exchange
currently excludes the date of the
annual reconstitution of the Russell
Investments Indexes from such
calculations.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,3 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,4 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among members and issuers and other
persons using any facility, and is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Exchange believes it is
reasonable, equitable, and not unfairly
discriminatory to exclude Triple Witch
Dates, MSCI Rebalance Dates, S&P
Rebalance Dates, and the Nasdaq
Reconstitution Date from calculations of
total Consolidated Volume and the
member’s trading activity for purposes
of volume calculations for equity
pricing tiers/incentives. As described
3 15
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
VerDate Sep<11>2014
19:07 May 12, 2023
Jkt 259001
above, Triple Witch Dates, MSCI
Rebalance Dates, S&P Rebalance Dates,
and the Nasdaq Reconstitution Date
typically have extraordinarily high and/
or abnormally distributed trading
volumes which, in turn, may affect a
member’s ability to meet the applicable
volume thresholds under its transaction
pricing tiers/incentives, and the
Exchange believes that excluding such
days from the relevant calculations for
purposes of determining a member’s
qualification for such tiers/incentives
would help to avoid penalizing
members that might otherwise have met
the requirements to qualify for such
tiers/incentives. The Exchange believes
that the proposal is reasonable because
it will diminish the likelihood of a de
facto price increase occurring because a
member is not able to reach a volume
percentage on that date that it reaches
on other trading days during the month.
The Exchange further believes that the
change is consistent with an equitable
allocation of fees and is not unfairly
discriminatory. Specifically, because
trading activity on Triple Witch Dates,
MSCI Rebalance Dates, S&P Rebalance
Dates, and the Nasdaq Reconstitution
Date will be excluded from
determinations of a member’s
percentage of Consolidated Volume, the
Exchange believes it will be easier for
members to determine the volume
required to meet a certain percentage of
participation than would otherwise be
the case. To the extent that a member
has been active on the Exchange at a
significant level throughout the month,
excluding the Triple Witch Dates, MSCI
Rebalance Dates, S&P Rebalance Dates,
and the Nasdaq Reconstitution Date, on
which its percentage of Consolidated
Volume is likely to be lower than on
other days, will increase its overall
percentage for the month. Conversely,
even if a member was more active on
Triple Witch Dates, MSCI Rebalance
Dates, S&P Rebalance Dates, and the
Nasdaq Reconstitution Date than on
other dates, it is unlikely that its activity
on one day would be able to increase its
overall monthly percentage to a
meaningful extent. Thus, the Exchange
believes that the change will benefit
members that are in a position to
achieve volume levels required by the
Exchange’s pricing schedule but
without harming the ability of any
members to reach such levels.
Finally, the Exchange believes that
the change does not unfairly burden
competition because it will help to
preserve or improve the pricing status
that would apply to members’ trading
activity in the absence of Triple Witch
Dates, MSCI Rebalance Dates, S&P
Rebalance Dates, and the Nasdaq
PO 00000
Frm 00149
Fmt 4703
Sfmt 4703
31091
Reconstitution Date, and therefore will
not impact the ability of such members
to compete. The proposed rule change
would apply to all members uniformly,
in that each member’s volume activities
for purposes of pricing tiers/incentives
would continue to be calculated in a
uniform manner and would now
exclude Triple Witch Dates, MSCI
Rebalance Dates, S&P Rebalance Dates,
and the Nasdaq Reconstitution Date.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
Intramarket Competition
The Exchange does not believe that its
proposal will place any category of
Exchange participant at a competitive
disadvantage.
The Exchange intends for its proposed
changes to amend the calculation of
Consolidated Volume and trading
activity at Equity 7, Section 118(a) to
avoid penalizing members that might
otherwise have met the applicable
volume thresholds to qualify for the
Exchange’s transaction pricing tiers/
incentives if not for the abnormal
trading volumes and market conditions
typically experienced in the equities
markets on the Triple Witch Dates,
MSCI Rebalance Dates, S&P Rebalance
Dates, and the Nasdaq Reconstitution
Date. The proposed exclusion of such
dates from the relevant calculations
would apply to all members uniformly
and in the same manner that the
Exchange currently excludes the date of
the annual reconstitution of the Russell
Investments Indexes from such
calculations.
The Exchange notes that its members
are free to trade on other venues to the
extent they believe that the proposal is
not attractive. As one can observe by
looking at any market share chart, price
competition between exchanges is
fierce, with liquidity and market share
moving freely between exchanges in
reaction to fee and credit changes.
Intermarket Competition
In terms of inter-market competition,
the Exchange notes that it operates in a
highly competitive market in which
market participants can readily favor
competing venues if they deem fee
levels at a particular venue to be
excessive, or rebate opportunities
available at other venues to be more
favorable. In such an environment, the
Exchange must continually adjust its
credits and fees to remain competitive
E:\FR\FM\15MYN1.SGM
15MYN1
31092
Federal Register / Vol. 88, No. 93 / Monday, May 15, 2023 / Notices
with other exchanges and with
alternative trading systems that have
been exempted from compliance with
the statutory standards applicable to
exchanges. Because competitors are free
to modify their own credits and fees in
response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which credit
or fee changes in this market may
impose any burden on competition is
extremely limited. The proposal is
reflective of this competition.
Even as one of the largest U.S.
equities exchanges by volume, the
Exchange has less than 20% market
share, which in most markets could
hardly be categorized as having enough
market power to burden competition.
Moreover, as noted above, price
competition between exchanges is
fierce, with liquidity and market share
moving freely between exchanges in
reaction to fee and credit changes. This
is in addition to free flow of order flow
to and among off-exchange venues,
which comprises upwards of 50% of
industry volume.
The Exchange believes the proposal to
exclude certain dates from calculating
Consolidated Volume and trading
activity is not concerned with
competitive issues, but rather relates to
calculation methodologies applicable to
its pricing tiers/incentives.
If the changes proposed herein are
unattractive to market participants, it is
likely that the Exchange will lose
market share as a result. Accordingly,
the Exchange does not believe that the
proposed changes will impair the ability
of members or competing order
execution venues to maintain their
competitive standing in the financial
markets.
ddrumheller on DSK120RN23PROD with NOTICES1
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 5 and paragraph (f) of Rule
19b–4 6 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
5 15
6 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Sep<11>2014
19:07 May 12, 2023
Jkt 259001
action is: (i) necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BX–2023–010 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BX–2023–010. 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. 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
PO 00000
Frm 00150
Fmt 4703
Sfmt 4703
to File Number SR–BX–2023–010 and
should be submitted on or before June
5, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–10247 Filed 5–12–23; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #17889 and #17890;
TEXAS Disaster Number TX–00652]
Presidential Declaration Amendment of
a Major Disaster for Public Assistance
Only for the State of Texas
U.S. Small Business
Administration.
AGENCY:
ACTION:
Amendment 1.
This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Texas (FEMA–4705–DR),
dated 04/21/2023.
Incident: Severe Winter Storm.
Incident Period: 01/30/2023 through
02/02/2023.
SUMMARY:
Issued on 05/08/2023.
Physical Loan Application Deadline
Date: 06/20/2023.
Economic Injury (EIDL) Loan
Application Deadline Date: 01/22/2024.
DATES:
Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
ADDRESSES:
A.
Escobar, Office of Disaster Recovery &
Resilience, U.S. Small Business
Administration, 409 3rd Street SW,
Suite 6050, Washington, DC 20416,
(202) 205–6734.
FOR FURTHER INFORMATION CONTACT:
The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of Texas,
dated 04/21/2023, is hereby amended to
include the following areas as adversely
affected by the disaster.
SUPPLEMENTARY INFORMATION:
Primary Counties: Anderson, Falls,
Gillespie, Hopkins, Kerr, Kimble,
Limestone, Red River.
All other information in the original
declaration remains unchanged.
7 17
CFR 200.30–3(a)(12).
E:\FR\FM\15MYN1.SGM
15MYN1
]]>Agencies
[Federal Register Volume 88, Number 93 (Monday, May 15, 2023)]
[Notices]
[Pages 31090-31092]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-10247]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97464; File No. SR-BX-2023-010]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Equity 7,
Section 118
May 9, 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 1, 2023, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed with the
Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I, II, and III, below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Equity 7, Section 118(a) to exclude
certain days for purposes of calculating Consolidated Volume and
trading activity, as described further below.
The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/bx/rules, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend Equity 7,
Section 118(a) to exclude certain days for purposes of calculating
Consolidated Volume and trading activity. Specifically, the Exchange
also proposes to amend Equity 7, Section 118(a) to exclude the
following from calculations of total Consolidated Volume and the
member's trading activity for purposes of volume calculations for
equity pricing tiers/incentives: (1) the dates on which stock options,
stock index options, and stock index futures expire (i.e., the third
Friday of March, June, September, and December) (``Triple Witch
Dates''); (2) the dates on which the MSCI Equity Indexes are rebalanced
(i.e., on a quarterly basis) (``MSCI Rebalance Dates''); (3) the dates
on which the S&P 400, S&P 500, and S&P 600 Indexes are rebalanced
(i.e., on a quarterly basis) (``S&P Rebalance Dates''); and (4) and the
date of the annual reconstitution of the Nasdaq-100 and Nasdaq
Biotechnology Indexes (``Nasdaq Reconstitution Date'').
[[Page 31091]]
Currently, the Exchange excludes the date of the annual reconstitution
of the Russell Investments Indexes from calculations of total
Consolidated Volume and the member's trading activity for purposes of
volume calculations for equity pricing tiers/incentives.
For the same reasons that the Exchange currently excludes the date
of the annual reconstitution of the Russell Investments Indexes from
these calculations, the Exchange believes it is appropriate to exclude
Triple Witch Dates, MSCI Rebalance Dates, S&P Rebalance Dates, and the
Nasdaq Reconstitution Date from these calculations in the same manner,
as trading volumes on such days are generally far in excess of volumes
on other days during the month, and market participants that are not
otherwise active on the Exchange to a great extent often participate on
the Exchange on such dates to rebalance holdings, or in the case of
Triple Witch Dates, to close out or roll over positions prior to
expiration. The Exchange believes this change to normal activity may
affect a member's ability to meet the applicable volume thresholds
under its volume-based tiers. The Exchange notes that the proposed
exclusion of Triple Witch Dates, MSCI Rebalance Dates, S&P Rebalance
Dates, and the Nasdaq Reconstitution Date from the relevant
calculations would be applied in the same manner that the Exchange
currently excludes the date of the annual reconstitution of the Russell
Investments Indexes from such calculations.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\3\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\4\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility, and is
not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes it is reasonable, equitable, and not unfairly
discriminatory to exclude Triple Witch Dates, MSCI Rebalance Dates, S&P
Rebalance Dates, and the Nasdaq Reconstitution Date from calculations
of total Consolidated Volume and the member's trading activity for
purposes of volume calculations for equity pricing tiers/incentives. As
described above, Triple Witch Dates, MSCI Rebalance Dates, S&P
Rebalance Dates, and the Nasdaq Reconstitution Date typically have
extraordinarily high and/or abnormally distributed trading volumes
which, in turn, may affect a member's ability to meet the applicable
volume thresholds under its transaction pricing tiers/incentives, and
the Exchange believes that excluding such days from the relevant
calculations for purposes of determining a member's qualification for
such tiers/incentives would help to avoid penalizing members that might
otherwise have met the requirements to qualify for such tiers/
incentives. The Exchange believes that the proposal is reasonable
because it will diminish the likelihood of a de facto price increase
occurring because a member is not able to reach a volume percentage on
that date that it reaches on other trading days during the month.
The Exchange further believes that the change is consistent with an
equitable allocation of fees and is not unfairly discriminatory.
Specifically, because trading activity on Triple Witch Dates, MSCI
Rebalance Dates, S&P Rebalance Dates, and the Nasdaq Reconstitution
Date will be excluded from determinations of a member's percentage of
Consolidated Volume, the Exchange believes it will be easier for
members to determine the volume required to meet a certain percentage
of participation than would otherwise be the case. To the extent that a
member has been active on the Exchange at a significant level
throughout the month, excluding the Triple Witch Dates, MSCI Rebalance
Dates, S&P Rebalance Dates, and the Nasdaq Reconstitution Date, on
which its percentage of Consolidated Volume is likely to be lower than
on other days, will increase its overall percentage for the month.
Conversely, even if a member was more active on Triple Witch Dates,
MSCI Rebalance Dates, S&P Rebalance Dates, and the Nasdaq
Reconstitution Date than on other dates, it is unlikely that its
activity on one day would be able to increase its overall monthly
percentage to a meaningful extent. Thus, the Exchange believes that the
change will benefit members that are in a position to achieve volume
levels required by the Exchange's pricing schedule but without harming
the ability of any members to reach such levels.
Finally, the Exchange believes that the change does not unfairly
burden competition because it will help to preserve or improve the
pricing status that would apply to members' trading activity in the
absence of Triple Witch Dates, MSCI Rebalance Dates, S&P Rebalance
Dates, and the Nasdaq Reconstitution Date, and therefore will not
impact the ability of such members to compete. The proposed rule change
would apply to all members uniformly, in that each member's volume
activities for purposes of pricing tiers/incentives would continue to
be calculated in a uniform manner and would now exclude Triple Witch
Dates, MSCI Rebalance Dates, S&P Rebalance Dates, and the Nasdaq
Reconstitution Date.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
Intramarket Competition
The Exchange does not believe that its proposal will place any
category of Exchange participant at a competitive disadvantage.
The Exchange intends for its proposed changes to amend the
calculation of Consolidated Volume and trading activity at Equity 7,
Section 118(a) to avoid penalizing members that might otherwise have
met the applicable volume thresholds to qualify for the Exchange's
transaction pricing tiers/incentives if not for the abnormal trading
volumes and market conditions typically experienced in the equities
markets on the Triple Witch Dates, MSCI Rebalance Dates, S&P Rebalance
Dates, and the Nasdaq Reconstitution Date. The proposed exclusion of
such dates from the relevant calculations would apply to all members
uniformly and in the same manner that the Exchange currently excludes
the date of the annual reconstitution of the Russell Investments
Indexes from such calculations.
The Exchange notes that its members are free to trade on other
venues to the extent they believe that the proposal is not attractive.
As one can observe by looking at any market share chart, price
competition between exchanges is fierce, with liquidity and market
share moving freely between exchanges in reaction to fee and credit
changes.
Intermarket Competition
In terms of inter-market competition, the Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, the Exchange
must continually adjust its credits and fees to remain competitive
[[Page 31092]]
with other exchanges and with alternative trading systems that have
been exempted from compliance with the statutory standards applicable
to exchanges. Because competitors are free to modify their own credits
and fees in response, and because market participants may readily
adjust their order routing practices, the Exchange believes that the
degree to which credit or fee changes in this market may impose any
burden on competition is extremely limited. The proposal is reflective
of this competition.
Even as one of the largest U.S. equities exchanges by volume, the
Exchange has less than 20% market share, which in most markets could
hardly be categorized as having enough market power to burden
competition. Moreover, as noted above, price competition between
exchanges is fierce, with liquidity and market share moving freely
between exchanges in reaction to fee and credit changes. This is in
addition to free flow of order flow to and among off-exchange venues,
which comprises upwards of 50% of industry volume.
The Exchange believes the proposal to exclude certain dates from
calculating Consolidated Volume and trading activity is not concerned
with competitive issues, but rather relates to calculation
methodologies applicable to its pricing tiers/incentives.
If the changes proposed herein are unattractive to market
participants, it is likely that the Exchange will lose market share as
a result. Accordingly, the Exchange does not believe that the proposed
changes will impair the ability of members or competing order execution
venues to maintain their competitive standing in the financial markets.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \5\ and paragraph (f) of Rule 19b-4 \6\
thereunder.
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-BX-2023-010 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-BX-2023-010. 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. 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-BX-2023-010 and should
be submitted on or before June 5, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-10247 Filed 5-12-23; 8:45 am]
BILLING CODE 8011-01-P
