Sunshine Act Meetings, 36624-36625 [2023-11960]
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36624
Federal Register / Vol. 88, No. 107 / Monday, June 5, 2023 / Notices
situates EXGN with its other proprietary
products, NDX and NDXP, which are all
based on the Nasdaq-100 Index. The
Exchange believes that its proposal is
equitable and not unfairly
discriminatory because the Exchange
will uniformly exclude EXGN from
MARS for all market participants.
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. 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. The
Exchange notes that with its products,
market participants are offered an
opportunity to transact in NDX, NDXP,
XND, or EXGN, or separately execute
options overlying QQQ. Offering these
products provides market participants
with a variety of choices in selecting the
product they desire to utilize to transact
in the Nasdaq-100 Index.
Further, the Exchange does not
believe that the proposed rule change
will impose any burden on intra-market
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act because the
proposed EXGN pricing will apply
uniformly to all similarly situated
market participants. Specifically, all
Non-Customers will be assessed a
uniform Options Transaction Charge
and options surcharge while Customers
receive free executions. As discussed
above, Customer liquidity benefits all
market participants by providing more
trading opportunities, which attracts
other market participants, thus
facilitating tighter spreads and increased
order flow.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
ddrumheller on DSK120RN23PROD with NOTICES1
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)(ii) of the Act.20
20 15
U.S.C. 78s(b)(3)(A)(ii).
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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 rule-comments@
sec.gov. Please include File Number SR–
Phlx–2023–19 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–Phlx–2023–19. 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
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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–2023–19 and
should be submitted on or before June
26, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–11823 Filed 6–2–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
Notice is hereby given,
pursuant to the provisions of the
Government in the Sunshine Act, Public
Law 94–409, that the Securities and
Exchange Commission will hold an
Open Meeting on Wednesday, June 7,
2023 at 10:00 a.m.
PLACE: The meeting will be webcast on
the Commission’s website at
www.sec.gov.
STATUS: This meeting will begin at 10:00
a.m. (ET) and will be open to the public
via webcast on the Commission’s
website at www.sec.gov.
MATTERS TO BE CONSIDERED:
1. The Commission will consider
whether to adopt rules under the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) that are designed to
prevent fraud, manipulation, and
deception in connection with
transactions in security-based swaps as
well as to prevent the personnel of a
security-based swap dealer or major
security-based swap participant from
taking actions to coerce, mislead, or
otherwise interfere with such entity’s
chief compliance officer.
2. The Commission will consider
whether to adopt rule amendments to
Regulation M under the Exchange Act
that remove certain existing rule
exceptions that reference credit ratings
and substitute in their place new
exceptions that are based on alternative
standards of creditworthiness.
3. The Commission will consider
whether to approve a proposed
amendment to the CAT NMS Plan to
implement a revised funding model
(‘‘Executed Share Model’’) for the
consolidated audit trail (‘‘CAT’’) and to
establish a fee schedule for Participant
CAT fees in accordance with the
Executed Share Model.
TIME AND DATE:
21 17
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CFR 200.30–3(a)(12).
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Federal Register / Vol. 88, No. 107 / Monday, June 5, 2023 / Notices
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed, please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Authority: 5 U.S.C. 552b.
Dated: May 31, 2023.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023–11960 Filed 6–1–23; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97620; File No. SR–BX–
2023–013]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Various
Options 3 Rules and Options 5,
Section 4
May 30, 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 16,
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.
ddrumheller on DSK120RN23PROD with NOTICES1
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Options 3, Options Trading Rules, at:
Section 4 Entry and Display of Quotes;
Section 5, Entry and Display of Orders;
Section 7, Types of Orders and Quote
Protocols; Section 8, Options Opening
Process; Section 11, Auction
Mechanisms; Section 13, Price
Improvement Auction (‘‘PRISM’’);
Section 15, Risk Protections; and
Options 3, Section 18, Detection of Loss
of Communication. The Exchange also
proposes to amend Options 5, Section 4,
Order Routing.
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.
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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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 amend Options 3,
Options Trading Rules, at: Section 4,
Entry and Display of Quotes; Section 5,
Entry and Display of Orders; Section 7,
Types of Orders and Quote Protocols;
Section 8, Options Opening Process;
Section 11, Auction Mechanisms;
Section 13, Price Improvement Auction
(‘‘PRISM’’); Section 15, Risk Protections;
and Options 3, Section 18, Detection of
Loss of Communication. The Exchange
also proposes to amend Options 5,
Section 4, Order Routing. Each change
will be discussed below. The
amendments proposed herein seek to
codify the current System functionality.
The proposed amendments will not
result in System changes.
Option 3, Sections 4 and 5
The Exchange proposes to codify
existing functionality that allows Market
Makers to submit their quotes to the
Exchange in block quantities as a single
bulk message. In other words, a Market
Maker may submit a single message to
the Exchange, which may contain bids
and offers in multiple series. The
Exchange’s current rules do not specify
bulk messaging for orders. The
Exchange has historically provided
Market Makers with information
regarding bulk messaging in its publicly
available technical specifications.3 To
promote greater transparency, the
Exchange is seeking to codify this
functionality in its Rulebook.
Specifically, the Exchange proposes to
amend BX Options 3, Section 4(b)(3) to
memorialize that quotes may be
3 See https://www.nasdaq.com/docs/2023/01/12/
0054-Q23_SQF_8.2b%20akg_NAM.pdf (specifying
for bulk quoting of up to 200 quotes per quote block
message). The specifications note in other places
the manner in which a Participant can send such
quote block messages.
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36625
submitted as a bulk message. The
Exchange also proposes to add a
definition of ‘‘bulk message’’ in new
subparagraph (i) of Options 3, Section
4(b)(3), which will provide that a bulk
message means a single electronic
message submitted by a Market Maker to
the Exchange which may contain a
specified number of quotations as
designated by the Exchange.4 The bulk
message, submitted via SQF,5 may
enter, modify, or cancel quotes. Bulk
messages are handled by the System in
the same manner as it handles a single
quote message. MRX recently added
bulk messages to MRX Options 3,
Section 4(b)(3).6 The proposed
amendment to the Rulebook to add BX
Options 3, Section 4(b)(3) will not result
in a System change.
The Exchange also proposes to amend
BX Options 3, Section 4(b)(6) to provide
the following,
A quote will not be executed at a price that
trades through another market or displayed at
a price that would lock or cross another
market. If, at the time of entry, a quote would
cause a locked or crossed market violation or
would cause a trade-through, violation, it
will be re-priced to the current national best
offer (for bids) or the current national best
bid (for offers) as non-displayed, and
displayed at one minimum price variance
above (for offers) or below (for bids) the
national best price.
Where a quote is re-priced to avoid a
locked or crossed market, the best bid or
offer will be non-displayed and the repriced order will be displayed at a price
that is one minimum trading increment
inferior to the ABBO. A similar change
is proposed for Options 3, Section 5(d).
MRX recently amended Options 3,
4 Id. As noted above, quote bulk messages can
presently contain up to 200 quotes per message.
This is the maximum amount that is permitted in
a bulk message. The Exchange would announce any
change to these specifications in an Options
Technical Update distributed to all Participants.
5 ‘‘Specialized Quote Feed’’ or ‘‘SQF’’ is an
interface that allows Market Makers to connect,
send, and receive messages related to quotes,
Immediate-or-Cancel Orders, and auction responses
to the Exchange. Features include the following: (1)
options symbol directory messages (e.g., underlying
instruments); (2) System event messages (e.g., start
of trading hours messages and start of opening); (3)
trading action messages (e.g., halts and resumes); (4)
execution messages; (5) quote messages; (6)
Immediate-or-Cancel Order messages; (7) risk
protection triggers and purge notifications; (8)
opening imbalance messages; (9) auction
notifications; and (10) auction responses. The SQF
Purge Interface only receives and notifies of purge
requests from the Market Maker. Market Makers
may only enter interest into SQF in their assigned
options series. See Options 3, Section 7(e)(1)(B).
6 See Securities Exchange Act, Release No. 95982
(October 4, 2022), 87 FR 61391 (October 11, 2022)
(SR–MRX–2022–18) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
To Amend Its Rules in Connection With a
Technology Migration to Enhanced Nasdaq
Functionality) (‘‘SR–MRX–2022–18’’).
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Agencies
[Federal Register Volume 88, Number 107 (Monday, June 5, 2023)]
[Notices]
[Pages 36624-36625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-11960]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meetings
TIME AND DATE: Notice is hereby given, pursuant to the provisions of
the Government in the Sunshine Act, Public Law 94-409, that the
Securities and Exchange Commission will hold an Open Meeting on
Wednesday, June 7, 2023 at 10:00 a.m.
PLACE: The meeting will be webcast on the Commission's website at
www.sec.gov.
STATUS: This meeting will begin at 10:00 a.m. (ET) and will be open to
the public via webcast on the Commission's website at www.sec.gov.
MATTERS TO BE CONSIDERED:
1. The Commission will consider whether to adopt rules under the
Securities Exchange Act of 1934 (``Exchange Act'') that are designed to
prevent fraud, manipulation, and deception in connection with
transactions in security-based swaps as well as to prevent the
personnel of a security-based swap dealer or major security-based swap
participant from taking actions to coerce, mislead, or otherwise
interfere with such entity's chief compliance officer.
2. The Commission will consider whether to adopt rule amendments to
Regulation M under the Exchange Act that remove certain existing rule
exceptions that reference credit ratings and substitute in their place
new exceptions that are based on alternative standards of
creditworthiness.
3. The Commission will consider whether to approve a proposed
amendment to the CAT NMS Plan to implement a revised funding model
(``Executed Share Model'') for the consolidated audit trail (``CAT'')
and to establish a fee schedule for Participant CAT fees in accordance
with the Executed Share Model.
[[Page 36625]]
CONTACT PERSON FOR MORE INFORMATION: For further information and to
ascertain what, if any, matters have been added, deleted or postponed,
please contact Vanessa A. Countryman from the Office of the Secretary
at (202) 551-5400.
Authority: 5 U.S.C. 552b.
Dated: May 31, 2023.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-11960 Filed 6-1-23; 11:15 am]
BILLING CODE 8011-01-P