Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Offer Field-Programmable Gate Array Technology as an Optional Delivery Mechanism for BX TotalView, 34201-34203 [2023-11239]
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Federal Register / Vol. 88, No. 102 / Friday, May 26, 2023 / Notices
calendar month, and the June 1
operative date would allow any
interested customer to utilize the service
for the entire month, while still
allowing any interested party almost a
month to review the proposal.13 The
Exchange also argues that the benefits of
the full month of operation outweigh
any costs associated with a slightly
shorter operative delay, given that FPGA
is a well-established technology that is
familiar to market participants. The
Commission believes that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest. Accordingly, the
Commission hereby waives the
operative delay and designates the
proposed rule change as operative upon
filing.14
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
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Sherry R. Haywood,
Assistant Secretary.
Electronic Comments
[FR Doc. 2023–11240 Filed 5–25–23; 8:45 am]
• 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–
Phlx–2023–18 on the subject line.
BILLING CODE 8011–01–P
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–Phlx–2023–18. This file
number should be included on the
ddrumheller on DSK120RN23PROD with NOTICES1
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–Phlx–2023–18, and
should be submitted on or before June
16, 2023.
13 The
Exchange initially filed the substance of
this proposed rule change on May 4, 2023 as SR–
Phlx–2023–17. This initial proposal was withdrawn
and replaced on May 12, 2023.
14 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Sep<11>2014
18:14 May 25, 2023
Jkt 259001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97541; File No. SR–BX–
2023–012]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Offer FieldProgrammable Gate Array Technology
as an Optional Delivery Mechanism for
BX TotalView
May 22, 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 12,
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
34201
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 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to offer fieldprogrammable gate array (‘‘FPGA’’)
technology as an optional delivery
mechanism for BX TotalView.
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
BX proposes to offer fieldprogrammable gate array (‘‘FPGA’’)
technology as an optional delivery
mechanism for BX TotalView.3
FPGA technology has been used for
over a decade by the Nasdaq Stock
Market to facilitate customer ingestion
of large quantities of information at
periods of peak activity. FPGA hardware
is designed to facilitate the processing of
large data packets without introducing
variable queuing, thereby improving the
predictability of data transfer on
telecommunications ports, a process
known as ‘‘determinism.’’ Outside of
peak activity, FPGA helps customers
establish more predictable consistency
in message throughput over the course
of the trading day.
3 A proposal to make FPGA technology also
available at the PSX Exchange is being submitted
together with this proposal. The Exchange initially
filed this Proposal on May 4, 2023 (SR–BX–2023–
011). On May 12, 2023, the Exchange withdrew SR–
BX–2023–011 and replaced it with the instant
filing. This filing corrects an error in the initial
submission, but includes no substantive changes.
E:\FR\FM\26MYN1.SGM
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34202
Federal Register / Vol. 88, No. 102 / Friday, May 26, 2023 / Notices
ddrumheller on DSK120RN23PROD with NOTICES1
The Exchange proposes to use FPGA
technology to process BX TotalView
data. BX TotalView is a real-time market
data product that provides full order
depth using a series of order messages
to track the life of customer orders in
the BX market, as well as trade data for
BX executions and administrative
messages such as Trading Action
messages, Symbol Directory, and Event
Control messages.4 BX TotalView allows
users to view all displayed quotes and
orders, access total displayed
anonymous interest, and see total size of
all displayed quotes and orders.
FPGA technology has been offered by
the Nasdaq Stock Exchange for over a
decade, and the Nasdaq Options Market
for nearly as long,5 and has been cited
by the SEC as an example of a
technology useful in the distribution of
market data products.6 It is a wellestablished technology that is familiar to
market participants.
The purchase of FPGA technology is
entirely optional because FPGA
functionality can be replicated through
a variety of software solutions. Our
experience with Nasdaq TotalView is
that some customers use FPGA
technology to address determinism,
others avail themselves of software
solutions, some use both, and others
alternate between both. Some market
participants that have purchased FPGA
technology in the past have
discontinued its use. There are no
systematic differences among market
participants that choose to use or not to
use FPGA technology beyond the
compatibility of FPGA technology with
the customer’s specific technical
systems, which can change over time as
systems are modified, replaced or
updated.
The proposal to offer FPGA
technology to customers of BX
4 See Nasdaq BX, Inc. Rules, Equity 7, Section 123
(BX TotalView); see also Securities Exchange Act
Release No. 59307 (January 28, 2009), 74 FR 6069
(February 4, 2009) (establishing fees for BX
TotalView).
5 See Securities Exchange Act Release No. 67297
(June 28, 2012), 77 FR 39752 (July 5, 2012) (SRNasdaq-2012–063) (introducing FPGA technology);
see also Nasdaq Data News 2012–13, available at
https://www.nasdaqtrader.com/
TraderNews.aspx?id=dn2012-13 (introducing
TotalView FPGA service as of August 1, 2012);
Securities Exchange Act Release No. 74745 (April
16, 2015), 80 FR 22588 (April 22, 2015) (SR-Nasdaq2015–035) (establishing FPGA for the Nasdaq
Options Market); see also The Nasdaq Stock Market
LLC Rules, Equity 7, Section 126(c) (HardwareBased Delivery of Nasdaq Depth data).
6 See Securities Exchange Act Release No. 90610,
86 FR 18596, 18647 (April 9, 2021) (File No. S7–
03–20) (listing field programmable gate array
services as an example of a technological
innovation that could be employed by competing
consolidators as part of the Market Data
Infrastructure rule).
VerDate Sep<11>2014
18:14 May 25, 2023
Jkt 259001
TotalView is in response to customer
demand. To date, lower levels of peak
activity at the BX Exchange relative to
the Nasdaq Exchange have been
associated with low levels of customer
interest in this product. Recently,
however, BX has heard from customers
interested in using FPGA technology for
BX TotalView. To address this customer
demand, and to drive liquidity to the BX
Exchange by making it a more attractive
trading venue, BX has decided to offer
this product to meet evolving customer
needs.
The Exchange will submit a proposed
fee schedule for this product in a
separate filing. The Exchange intends to
make this product available on June 1,
2023.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,7 in general, and furthers the
objectives of Section 6(b)(5) of the Act,8
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and in general to protect
investors and the public interest.
As noted above, the current proposal
to offer FPGA technology with BX
TotalView is in response to changes in
customer demand. This proposal
reflects the need for the Exchange to
stay competitive in the market for
exchange services. It also promotes
competition and innovation by
providing market participants
additional choices in the transmission
of depth of book data.
Offering this well-recognized
technology to customers will facilitate
their usage of the data. If the technology
is not ultimately beneficial, the
customer can discontinue it at any time,
and for any reason, as they have done
in the past. Customers that choose not
to purchase FPGA technology will not
be affected because these customers
have alternative methods to facilitate
determinism available to them.
Approval of this proposal is in the
public interest and otherwise furthers
the objectives of Section 6(b)(5) of the
Act because it promotes competition,
facilitates the ingestion of market data
by certain market participants, and has
no impact on customers that do not
elect to avail themselves of the service.
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.
Nothing in the Proposal burdens
inter-market competition (the
competition among self-regulatory
organizations) because approval of the
Proposal does not impose any burden
on the ability of other exchanges to
compete. All exchanges are free
introduce products that facilitate the
ingestion of data at peak periods.
Nothing in the Proposal burdens
intra-market competition (the
competition among consumers of
exchange data) because FPGA
technology will be available to any
market participant on a nondiscriminatory basis.
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
FINRA has filed the proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act 9 and Rule 19b–4(f)(6)
thereunder.10 Because the 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 prior to 30 days from the date
on which it was filed, or such shorter
time as the Commission may designate,
if consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 11 normally does not
become operative prior to 30 days after
the date of the filing. However, Rule
19b–4(f)(6)(iii) 12 permits the
Commission to designate a shorter time
if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative on June 1 so that any
potential customer that wishes to obtain
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6).
10 17
7 15
8 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00077
Fmt 4703
Sfmt 4703
E:\FR\FM\26MYN1.SGM
26MYN1
Federal Register / Vol. 88, No. 102 / Friday, May 26, 2023 / Notices
the FPGA service would be able to do
so on June 1, 2023. The Exchange argues
that an operative date of June 1, 2023 is
consistent with the protection of
investors and the public interest
because market data services are
typically initiated at the beginning of a
calendar month, and the June 1
operative date would allow any
interested customer to utilize the service
for the entire month, while still
allowing any interested party almost a
month to review the proposal.13 The
Exchange also argues that the benefits of
the full month of operation outweigh
any costs associated with a slightly
shorter operative delay, given that FPGA
is a well-established technology that is
familiar to market participants. The
Commission believes that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest. Accordingly, the
Commission hereby waives the
operative delay and designates the
proposed rule change as operative upon
filing.14
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
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
ddrumheller on DSK120RN23PROD with NOTICES1
13 The Exchange initially filed the substance of
this proposed rule change on May 4, 2023 as SR–
BX–2023–011. This initial proposal was withdrawn
and replaced on May 12, 2023.
14 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
18:14 May 25, 2023
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–11239 Filed 5–25–23; 8:45 am]
• 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–2023–012 on the subject line.
VerDate Sep<11>2014
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–2023–012. 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–2023–012, and
should be submitted on or before June
16, 2023.
Jkt 259001
BILLING CODE 8011–01–P
SELECTIVE SERVICE SYSTEM
Forms Submitted to the Office of
Management and Budget for Extension
of Clearance
Selective Service System.
Notice.
AGENCY:
ACTION:
The following form has been
submitted to the Office of Management
15 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00078
Fmt 4703
Sfmt 4703
34203
and Budget (OMB) for reinstatement
with changes of an expired previously
approved form in compliance with the
Paperwork Reduction Act (44 U.S.C.
chapter 35).
SSS Form—404
Title: Potential Board Member
Information.
Purpose: Is used to identify
individuals willing to serve as members
of local, appeal or review boards in the
Selective Service System.
Respondents: Potential Board
Members.
Burden: A burden of 15 minutes or
less on the individual respondent.
Copies of the above identified form
can be obtained upon written request to
the Selective Service System, Reports
Clearance Officer, 1515 Wilson
Boulevard, Arlington, Virginia 22209–
2425.
Written comments and
recommendations for the proposed
reinstatement of clearance of the form
should be sent within 60 days of the
publication of this notice to the
Selective Service System, Reports
Clearance Officer, 1515 Wilson
Boulevard, Arlington, Virginia 22209–
2425.
A copy of the comments should be
sent to the Office of Information and
Regulatory Affairs, Attention: Desk
Officer, Selective Service System, Office
of Management and Budget, New
Executive Office Building, Room 3235,
Washington, DC 20503.
Thomas T. Devine,
Deputy Associate Director for Operations.
[FR Doc. 2023–11320 Filed 5–25–23; 8:45 am]
BILLING CODE 8015–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #17937 and #17938;
California Disaster Number CA–00383]
Presidential Declaration of a Major
Disaster for Public Assistance Only for
the Soboba Band of Luisen˜o Indians
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the Soboba Band of Luisen˜o Indians
(FEMA–4713–DR), dated 05/18/2023.
Incident: Severe Winter Storm and
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Incident Period: 02/23/2023 through
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Date: 07/17/2023.
SUMMARY:
E:\FR\FM\26MYN1.SGM
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]]>Agencies
[Federal Register Volume 88, Number 102 (Friday, May 26, 2023)]
[Notices]
[Pages 34201-34203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-11239]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97541; File No. SR-BX-2023-012]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Offer Field-
Programmable Gate Array Technology as an Optional Delivery Mechanism
for BX TotalView
May 22, 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 12, 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 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 offer field-programmable gate array
(``FPGA'') technology as an optional delivery mechanism for BX
TotalView.
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
BX proposes to offer field-programmable gate array (``FPGA'')
technology as an optional delivery mechanism for BX TotalView.\3\
---------------------------------------------------------------------------
\3\ A proposal to make FPGA technology also available at the PSX
Exchange is being submitted together with this proposal. The
Exchange initially filed this Proposal on May 4, 2023 (SR-BX-2023-
011). On May 12, 2023, the Exchange withdrew SR-BX-2023-011 and
replaced it with the instant filing. This filing corrects an error
in the initial submission, but includes no substantive changes.
---------------------------------------------------------------------------
FPGA technology has been used for over a decade by the Nasdaq Stock
Market to facilitate customer ingestion of large quantities of
information at periods of peak activity. FPGA hardware is designed to
facilitate the processing of large data packets without introducing
variable queuing, thereby improving the predictability of data transfer
on telecommunications ports, a process known as ``determinism.''
Outside of peak activity, FPGA helps customers establish more
predictable consistency in message throughput over the course of the
trading day.
[[Page 34202]]
The Exchange proposes to use FPGA technology to process BX
TotalView data. BX TotalView is a real-time market data product that
provides full order depth using a series of order messages to track the
life of customer orders in the BX market, as well as trade data for BX
executions and administrative messages such as Trading Action messages,
Symbol Directory, and Event Control messages.\4\ BX TotalView allows
users to view all displayed quotes and orders, access total displayed
anonymous interest, and see total size of all displayed quotes and
orders.
---------------------------------------------------------------------------
\4\ See Nasdaq BX, Inc. Rules, Equity 7, Section 123 (BX
TotalView); see also Securities Exchange Act Release No. 59307
(January 28, 2009), 74 FR 6069 (February 4, 2009) (establishing fees
for BX TotalView).
---------------------------------------------------------------------------
FPGA technology has been offered by the Nasdaq Stock Exchange for
over a decade, and the Nasdaq Options Market for nearly as long,\5\ and
has been cited by the SEC as an example of a technology useful in the
distribution of market data products.\6\ It is a well-established
technology that is familiar to market participants.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 67297 (June 28,
2012), 77 FR 39752 (July 5, 2012) (SR-Nasdaq-2012-063) (introducing
FPGA technology); see also Nasdaq Data News 2012-13, available at
https://www.nasdaqtrader.com/TraderNews.aspx?id=dn2012-13
(introducing TotalView FPGA service as of August 1, 2012);
Securities Exchange Act Release No. 74745 (April 16, 2015), 80 FR
22588 (April 22, 2015) (SR-Nasdaq-2015-035) (establishing FPGA for
the Nasdaq Options Market); see also The Nasdaq Stock Market LLC
Rules, Equity 7, Section 126(c) (Hardware-Based Delivery of Nasdaq
Depth data).
\6\ See Securities Exchange Act Release No. 90610, 86 FR 18596,
18647 (April 9, 2021) (File No. S7-03-20) (listing field
programmable gate array services as an example of a technological
innovation that could be employed by competing consolidators as part
of the Market Data Infrastructure rule).
---------------------------------------------------------------------------
The purchase of FPGA technology is entirely optional because FPGA
functionality can be replicated through a variety of software
solutions. Our experience with Nasdaq TotalView is that some customers
use FPGA technology to address determinism, others avail themselves of
software solutions, some use both, and others alternate between both.
Some market participants that have purchased FPGA technology in the
past have discontinued its use. There are no systematic differences
among market participants that choose to use or not to use FPGA
technology beyond the compatibility of FPGA technology with the
customer's specific technical systems, which can change over time as
systems are modified, replaced or updated.
The proposal to offer FPGA technology to customers of BX TotalView
is in response to customer demand. To date, lower levels of peak
activity at the BX Exchange relative to the Nasdaq Exchange have been
associated with low levels of customer interest in this product.
Recently, however, BX has heard from customers interested in using FPGA
technology for BX TotalView. To address this customer demand, and to
drive liquidity to the BX Exchange by making it a more attractive
trading venue, BX has decided to offer this product to meet evolving
customer needs.
The Exchange will submit a proposed fee schedule for this product
in a separate filing. The Exchange intends to make this product
available on June 1, 2023.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\8\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and in general to protect investors and the public interest.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
As noted above, the current proposal to offer FPGA technology with
BX TotalView is in response to changes in customer demand. This
proposal reflects the need for the Exchange to stay competitive in the
market for exchange services. It also promotes competition and
innovation by providing market participants additional choices in the
transmission of depth of book data.
Offering this well-recognized technology to customers will
facilitate their usage of the data. If the technology is not ultimately
beneficial, the customer can discontinue it at any time, and for any
reason, as they have done in the past. Customers that choose not to
purchase FPGA technology will not be affected because these customers
have alternative methods to facilitate determinism available to them.
Approval of this proposal is in the public interest and otherwise
furthers the objectives of Section 6(b)(5) of the Act because it
promotes competition, facilitates the ingestion of market data by
certain market participants, and has no impact on customers that do not
elect to avail themselves of the service.
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.
Nothing in the Proposal burdens inter-market competition (the
competition among self-regulatory organizations) because approval of
the Proposal does not impose any burden on the ability of other
exchanges to compete. All exchanges are free introduce products that
facilitate the ingestion of data at peak periods.
Nothing in the Proposal burdens intra-market competition (the
competition among consumers of exchange data) because FPGA technology
will be available to any market participant on a non-discriminatory
basis.
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
FINRA has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\ Because
the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative on June 1 so that any potential customer that
wishes to obtain
[[Page 34203]]
the FPGA service would be able to do so on June 1, 2023. The Exchange
argues that an operative date of June 1, 2023 is consistent with the
protection of investors and the public interest because market data
services are typically initiated at the beginning of a calendar month,
and the June 1 operative date would allow any interested customer to
utilize the service for the entire month, while still allowing any
interested party almost a month to review the proposal.\13\ The
Exchange also argues that the benefits of the full month of operation
outweigh any costs associated with a slightly shorter operative delay,
given that FPGA is a well-established technology that is familiar to
market participants. The Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest. Accordingly, the Commission hereby waives the
operative delay and designates the proposed rule change as operative
upon filing.\14\
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ The Exchange initially filed the substance of this proposed
rule change on May 4, 2023 as SR-BX-2023-011. This initial proposal
was withdrawn and replaced on May 12, 2023.
\14\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-BX-2023-012 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-2023-012. 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-2023-012, and should be submitted on
or before June 16, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-11239 Filed 5-25-23; 8:45 am]
BILLING CODE 8011-01-P
