Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.24(e) To Modify When the Exchange Will Disseminate the Retail Liquidity Identifier, 37293-37296 [2023-12110]
Download as PDF
<![CDATA[
Federal Register / Vol. 88, No. 109 / Wednesday, June 7, 2023 / Notices
Maria Rosario Jackson, and
presentations or performances by area
artists. This session will be held open to
the public for in-person attendance and
by videoconference. To view the
webcasting of this open session of the
meeting, go to: https://www.arts.gov/. If
you need special accommodations due
to a disability, please contact Beth
Bienvenu, Office of Accessibility,
National Endowment for the Arts,
Constitution Center, 400 7th St. SW,
Washington, DC 20506, 202/682–5733,
Voice/T.T.Y. 202/682–5496, at least
seven (7) days prior to the meeting.
Dated: June 2, 2023.
Daniel Beattie,
Director, Office of Guidelines and Panel
Operations.
[FR Doc. 2023–12138 Filed 6–6–23; 8:45 am]
BILLING CODE 7537–01–P
POSTAL REGULATORY COMMISSION
[Docket Nos. CP2018–98; MC2023–165 and
CP2023–169]
New Postal Products
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is noticing a
recent Postal Service filing for the
Commission’s consideration concerning
a negotiated service agreement. This
notice informs the public of the filing,
invites public comment, and takes other
administrative steps.
DATES: Comments are due: June 12,
2023.
SUMMARY:
Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Docketed Proceeding(s)
lotter on DSK11XQN23PROD with NOTICES1
I. Introduction
The Commission gives notice that the
Postal Service filed request(s) for the
Commission to consider matters related
to negotiated service agreement(s). The
request(s) may propose the addition or
removal of a negotiated service
agreement from the Market Dominant or
VerDate Sep<11>2014
17:01 Jun 06, 2023
Jkt 259001
the Competitive product list, or the
modification of an existing product
currently appearing on the Market
Dominant or the Competitive product
list.
Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s website (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
with the requirements of 39 CFR
3011.301.1
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern Market Dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3030, and 39
CFR part 3040, subpart B. For request(s)
that the Postal Service states concern
Competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3035, and
39 CFR part 3040, subpart B. Comment
deadline(s) for each request appear in
section II.
II. Docketed Proceeding(s)
1. Docket No(s).: CP2018–98; Filing
Title: USPS Notice of Amendment to
First-Class Package Service Contract 87,
Filed Under Seal; Filing Acceptance
Date: May 31, 2023; Filing Authority: 39
CFR 3035.105; Public Representative:
Kenneth R. Moeller; Comments Due:
June 12, 2023.
2. Docket No(s).: MC2023–165 and
CP2023–169; Filing Title: USPS Request
to Add USPS Ground Advantage
Contract 1 to Competitive Product List
and Notice of Filing Materials Under
Seal; Filing Acceptance Date: May 31,
2023; Filing Authority: 39 U.S.C. 3642,
39 CFR 3040.130 through 3040.135, and
39 CFR 3035.105; Public Representative:
Kenneth R. Moeller; Comments Due:
June 12, 2023.
1 See Docket No. RM2018–3, Order Adopting
Final Rules Relating to Non-Public Information,
June 27, 2018, Attachment A at 19–22 (Order No.
4679).
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
37293
This Notice will be published in the
Federal Register.
Erica A. Barker,
Secretary.
[FR Doc. 2023–12188 Filed 6–6–23; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97639; File No. SR–
CboeBYX–2023–008]
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Rule
11.24(e) To Modify When the Exchange
Will Disseminate the Retail Liquidity
Identifier
June 1, 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 19,
2023, Cboe BYX Exchange, Inc. filed
with the Securities and Exchange
Commission the proposed rule change
as described in Items I and II below,
which Items have been prepared by the
Exchange. The Exchange has designated
the proposed rule change as constituting
a ‘‘non-controversial’’ rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder,4 which renders the proposal
effective upon receipt of this filing by
the Commission. 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 BYX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) is filing with the
Securities and Exchange Commission
(‘‘Commission’’) a proposal to modify
Rule 11.24(e). 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/byx/), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
E:\FR\FM\07JNN1.SGM
07JNN1
37294
Federal Register / Vol. 88, No. 109 / Wednesday, June 7, 2023 / Notices
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
lotter on DSK11XQN23PROD with NOTICES1
1. Purpose
The Exchange currently operates a
Retail Price Improvement Program (‘‘RPI
Program’’) 5 that permits Retail Member
Organizations (‘‘RMOs’’) 6 to submit
Retail Orders 7 to the Exchange.
Exchange Users 8 are permitted to
provide potential price improvement for
Retail Orders through the use of Retail
Price Improvement Orders (‘‘RPI
Orders’’).9 When there is an RPI Order
in a particular security that meets
certain requirements (further described
below), the Exchange disseminates an
5 See Securities Exchange Act Release No. 68303
(November 27, 2012), 77 FR 71652 (December 3,
2012), SR–BYX–2012–019 (‘‘Order Granting
Approval to Proposed Rule Change, as Modified by
Amendment No. 2, To Adopt a Retail Price
Improvement Program’’).
6 See Rule 11.24(a)(1). An RMO is a Member (or
a division thereof) that has been approved by the
Exchange under Rule 11.24 to submit Retail Orders.
7 See Rule 11.24(a)(2). A Retail Order is an agency
or riskless principal order that meets the criteria of
FINRA Rule 5320.03 that originates from a natural
person and is submitted to the Exchange by an
RMO, provided that no change is made to the terms
of an order with respect to price or side of market
and the order does not originate from a trading
algorithm or any other computerized methodology.
A Retail Order is an Immediate or Cancel (‘‘IOC’’)
Order and shall operate in accordance with Rule
11.24(f). A Retail Order can be an odd lot, round
lot, or mixed lot.
8 See Rule 1.5. The term ‘‘User’’ shall mean any
Member or Sponsored Participant who is
authorized to obtain access to the System pursuant
to Rule 11.3.
9 See Rule 11.24(a)(3). An RPI Order consists of
non-displayed interest on the Exchange that is
priced better than the Protected NBB or Protected
NBO by at least $0.001 and that is identified as
such. The System will monitor whether RPI buy or
sell interest, adjusted by any offset and subject to
the ceiling or floor price, is eligible to interact with
incoming Retail Orders. An RPI Order remains nondisplayed in its entirety (the buy or sell interest, the
offset, and the ceiling or floor). An RPI Order may
also be entered in a sub-penny increment with an
explicit limit price. Any User is permitted, but not
required, to submit RPI Orders. An RPI Order may
be an odd lot, round lot or mixed lot.
VerDate Sep<11>2014
17:01 Jun 06, 2023
Jkt 259001
indicator, known as the Retail Liquidity
Identifier (the ‘‘Identifier’’).10 The
Exchange now proposes to amend Rule
11.24(e), which describes when the
Exchange will disseminate the
Identifier.
Currently, Rule 11.24(e) states that the
Exchange may disseminate the Identifier
‘‘when RPI interest priced at least
$0.001 better than the Exchange’s
Protected Bid or Protected Offer for a
particular security is available in the
System.’’ Exchange Rule 1.5(t) defines
Protected Bid and Protected Offer as a
bid or offer in a stock that is (i)
displayed by an automated trading
center; (ii) disseminated pursuant to an
effective national market system plan;
and (iii) an automated quotation that is
the best bid or best offer of a national
securities exchange or association.11 In
other words, the Protected Bid or
Protected Offer referenced in Rule
11.24(e) is the Protected Bid or
Protected Offer on the Exchange and
does not contemplate the Protected Bid
or Protected Offer on any other
exchanges.
The Exchange now proposes to amend
Rule 11.24(e) so that the Identifier will
be disseminated when there is RPI
interest priced at least $0.001 better
than the Protected NBB (‘‘PBB’’) or
Protected NBO (‘‘PBO’’) 12 available in
the System. The Exchange notes that its
proposed functionality is substantively
identical to NYSE Rule 7.44(j), NYSE
Arca Rule 7.44–E(j), and Nasdaq BX
Rule 4780(e).13 The Exchange believes
that removing the reference to the
‘‘Exchange’s Protected Bid or Protected
10 See Rule 11.24(e). The Retail Liquidity
Identifier shall be disseminated through proprietary
data feeds or as appropriate through the
Consolidated Quotation System when RPI interest
priced at least $0.001 better than the Exchange’s
Protected Bid or Protected Offer for a security is
available in the System. The Retail Liquidity
Identifier shall reflect the symbol for the particular
security and the side (buy or sell) of the RPI
interest, but shall not include the price or size of
the RPI interest.
11 See Rule 1.5(t).
12 See Rule 1.5(s). ‘‘Protected NBB’’ shall mean
the national best bid that is a Protected Quotation
and the term ‘‘Protected NBO’’ shall mean the
national best offer that is a Protected Quotation. The
term ‘‘Protected Quotation’’ is defined in Rule 1.5(t)
and means a quotation that is a Protected Bid or a
Protected Offer.
13 See e.g., NYSE Rule 7.44(j) and NYSE Arca
Rule 7.44–E(j). A Retail Liquidity Identifier will be
disseminated through proprietary data feeds and
through the Consolidated Quotation System or the
UTP Quote Data Feed when RPI interest priced at
least $0.001 better than the PBB or PBO for a
particular security is available in the applicable
exchange systems. See also Nasdaq BX Rule
4780(e), which states that an identifier shall be
disseminated through proprietary data feeds and
through the Securities Information Processor when
RPI interest priced at least $0.001 better than the
NBBO for a particular security is available in the
Nasdaq BX system.
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
Offer’’ and providing for the
dissemination of the Identifier to occur
when there is RPI interest priced at least
$0.001 better than PBB or PBO may
decrease the amount of false signals
provided by the Identifier,14 as the
Identifier would no longer be
disseminated only when there is an RPI
Order priced $0.001 better than the
Exchange’s (emphasis added) Protected
Bid 15 or Protected Offer.16 The
Exchange further believes that
permitting the Identifier to display
when there is RPI interest priced at least
$0.001 better than the PBB or PBO may
attract additional retail order flow and
create greater retail order flow
competition, which helps ensure that
retail investors benefit from competitive
price improvement that liquidity
providers provide.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.17 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 18 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 19 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
14 The Exchange has been made aware of
instances where the Identifier is disseminated
because of an RPI Order priced better than the
Exchange’s Protected Bid or Protected Offer, but
because the RPI Order is not priced at least $0.001
better than the PBB or PBO, it is ineligible to
execute. When this occurs, Retail Orders submitted
to the Exchange to execute against the RPI interest
identified by the Identifier are rejected. The
Exchange believes that by amending Rule 11.24(e),
fewer false signals will occur because the Identifier
will only display when there is RPI interest priced
at least $0.001 better than the PBB or PBO.
15 Supra note 11.
16 Id.
17 15 U.S.C. 78f(b).
18 15 U.S.C. 78f(b)(5).
19 Id.
E:\FR\FM\07JNN1.SGM
07JNN1
Federal Register / Vol. 88, No. 109 / Wednesday, June 7, 2023 / Notices
lotter on DSK11XQN23PROD with NOTICES1
In particular, the proposed change
promotes just and equitable principles
of trade and removes impediments to
and perfects the mechanism of a free
and open market and a national market
system because the proposed change is
reasonably designed to attract retail
order flow to the Exchange, which in
turn may allow retail investors to
benefit from the better price that
liquidity providers are willing to give
their orders. The Exchange believes its
proposed amendment to Rule 11.24(e)
will provide fewer false signals, as the
RPI interest signaled by the Identifier
would no longer be based on the
Exchange’s Protected Bid or Protected
Offer, but rather will be based on the
PBB or PBO. By displaying the Identifier
based on the PBB or PBO, the Exchange
expects fewer instances in which Retail
Orders submitted to execute against RPI
Orders based on the Identifier would be
rejected due to the RPI Order being
inexecutable.20 This may help attract
additional retail order flow to the
Exchange, which will create greater
retail order flow competition amongst
exchanges and provide more
opportunities for competitive price
improvement for retail orders,
benefitting market participants as a
whole.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that the proposal
does not impose any burden on
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Particularly,
the proposal will apply equally to all
RPI interest on the Exchange that is
priced at least $0.001 better than the
PBB or PBO. Furthermore, the Exchange
believes its proposal will promote
intramarket competition as additional
retail order flow may be submitted to
the Exchange with the potential to
interact with other price improving
liquidity or resting orders, subject to
RMO order designation.
The Exchange also believes the
proposed rule change does not impose
any burden on intermarket competition
that is not necessary or appropriate in
furtherance of the Act. As discussed
above, NYSE, NYSE Arca, and Nasdaq
BX each disseminate similar indicators
of RPI interest under their respective
retail price improvement programs and
the Exchange believes that its proposed
20 Supra
note 14.
VerDate Sep<11>2014
17:01 Jun 06, 2023
Jkt 259001
rule change will allow it to compete for
additional retail order flow with the
aforementioned exchanges.21 Given that
the Exchange’s Identifier is proposed to
be displayed in an almost identical
manner to the competitor exchanges
mentioned above rather than its current
state of being displayed only when there
is RPI interest priced $0.001 better than
the Exchange’s (emphasis added)
Protected Best Bid or Protected Best
Offer, the Exchange believes its proposal
to permit the Identifier to display when
there is RPI interest priced at least
$0.001 better than the PBB or PBO will
promote competition between the
exchanges, hence fostering innovation
within the market, and increasing the
quality of the national market system by
allowing national securities exchanges
to compete both with each other and
with off-exchange venues for order flow.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
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 if consistent
with the protection of investors and the
public interest, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 22 and Rule 19b–4(f)(6) 23
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 24 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),25 the
Commission may 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
note 13.
U.S.C. 78s(b)(3)(A).
23 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.
24 17 CFR 240.19b–4(f)(6).
25 17 CFR 240.19b–4(f)(6)(iii).
37295
operative delay so that the proposed
rule change may become operative upon
filing. The Exchange states that waiver
of the operative delay does not present
market participants with any new or
novel issues, as other exchanges already
utilize the PBB, PBO, or NBBO to
determine when to disseminate their
retail liquidity identifiers, and that
accordingly, the proposed rule change
does not significantly affect the
protection of investors or the public
interest.26 The Exchange also states that
the proposed amendment to its Rule
11.24(e) will result in fewer instances in
which Retail Orders submitted to
execute against RPI Orders based on the
Identifier would be rejected due to the
RPI Order being inexecutable. For these
reasons, the Commission believes that
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.27
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–
CboeBYX–2023–008 on the subject line.
21 Supra
22 15
PO 00000
Frm 00097
Fmt 4703
Sfmt 4703
26 The Exchange also states that NYSE, NYSE
Arca, and Nasdaq BX each disseminate similar
indicators of RPI interest under their respective
retail price improvement programs, and the
Exchange believes that its proposed rule change
will allow it to compete for additional retail order
flow with the aforementioned exchanges. See supra
note 21 and accompanying text.
27 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).
E:\FR\FM\07JNN1.SGM
07JNN1
37296
Federal Register / Vol. 88, No. 109 / Wednesday, June 7, 2023 / Notices
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–CboeBYX–2023–008. 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
a.m. and 3 p.m. Copies of such 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–CboeBYX–2023–008 and
should be submitted on or before June
28, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.28
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–12110 Filed 6–6–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. IA–6322]
Notice of Intention To Cancel
Registrations of Certain Investment
Advisers Pursuant to Section 203(H) of
the Investment Advisers Act of 1940
June 1, 2023.
Notice is given that the Securities and
Exchange Commission (the
‘‘Commission’’) intends to issue an
order, pursuant to section 203(h) of the
Investment Advisers Act of 1940 (the
‘‘Act’’), cancelling the registrations of
the investment advisers whose names
appear in the attached Appendix,
hereinafter referred to as the
‘‘registrants.’’
Section 203(h) of the Act provides, in
pertinent part, that if the Commission
finds that any person registered under
section 203, or who has pending an
application for registration filed under
that section, is no longer in existence, is
not engaged in business as an
investment adviser, or is prohibited
from registering as an investment
adviser under section 203A, the
Commission shall by order cancel the
registration of such person.
Each registrant listed in the attached
Appendix either (a) has not filed a Form
ADV amendment with the Commission
as required by rule 204–1 under the
Act 1 and appears to be no longer
engaged in business as an investment
adviser or (b) has indicated on Form
ADV that it is no longer eligible to
remain registered with the Commission
as an investment adviser but has not
filed Form ADV–W to withdraw its
registration. Accordingly, the
Commission believes that reasonable
grounds exist for a finding that these
registrants are no longer in existence,
are not engaged in business as
investment advisers, or are prohibited
from registering as investment advisers
under section 203A, and that their
registrations should be cancelled
pursuant to section 203(h) of the Act.
Notice is also given that any
interested person may, by June 26, 2023,
lotter on DSK11XQN23PROD with NOTICES1
SEC No.
FOR FURTHER INFORMATION CONTACT:
Priscilla Dao, Senior Counsel, or Scott
Jameson, Senior Counsel, at 202–551–
6825; SEC, Division of Investment
Management, Chief Counsel’s Office,
100 F Street NE, Washington, DC
20549–8549.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.2
Sherry R. Haywood,
Assistant Secretary.
Appendix
BAY MUTUAL FINANCIAL LLC.
PROPHECY ASSET MANAGEMENT LP.
FUSION ANALYTICS INVESTMENT PARTNERS LLC.
PLATINUM MANAGEMENT (NY) LLC.
ASSET MANAGEMENT ADVISORY GROUP LLC.
COASTAL PARTNERS LTD.
AZZARA THOMAS PETER.
BRYAN ADVISORY SERVICES, LLC.
ACCIPITER CAPITAL MANAGEMENT, LLC.
28 17
CFR 200.30–3(a)(12).
204–1 under the Act requires any adviser
that is required to complete Form ADV to amend
1 Rule
18:00 Jun 06, 2023
The Commission:
Secretarys-Office@sec.gov.
ADDRESSES:
Full legal name
801–72074 ......................................
801–75390 ......................................
801–71058 ......................................
801–72514 ......................................
801–67384 ......................................
801–66695 ......................................
801–70770 ......................................
801–116672 ....................................
801–74069 ......................................
VerDate Sep<11>2014
at 5:30 p.m., submit to the Commission
in writing a request for a hearing on the
cancellation of the registration of any
registrant listed in the attached
Appendix, accompanied by a statement
as to the nature of such person’s
interest, the reason for such person’s
request, and the issues, if any, of fact or
law proposed to be controverted, and
the writer may request to be notified if
the Commission should order a hearing
thereon. Any such communication
should be emailed to the Commission’s
Secretary at Secretarys-Office@sec.gov.
At any time after June 26, 2023, the
Commission may issue an order or
orders cancelling the registrations of any
or all of the registrants listed in the
attached Appendix, upon the basis of
the information stated above, unless an
order or orders for a hearing on the
cancellation shall be issued upon
request or upon the Commission’s own
motion. Persons who requested a
hearing, or who requested to be advised
as to whether a hearing is ordered, will
receive any notices and orders issued in
this matter, including the date of the
hearing (if ordered) and any
postponements thereof. Any registrant
whose registration is cancelled under
delegated authority may appeal that
decision directly to the Commission in
accordance with rules 430 and 431 of
the Commission’s rules of practice (17
CFR 201.430 and 431).
Jkt 259001
the form at least annually and to submit the
amendments electronically through the Investment
Adviser Registration Depository.
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
2 17
E:\FR\FM\07JNN1.SGM
CFR 200.30–5(e)(2).
07JNN1
]]>Agencies
[Federal Register Volume 88, Number 109 (Wednesday, June 7, 2023)]
[Notices]
[Pages 37293-37296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-12110]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97639; File No. SR-CboeBYX-2023-008]
Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 11.24(e) To Modify When the Exchange Will Disseminate the Retail
Liquidity Identifier
June 1, 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 19, 2023, Cboe BYX Exchange, Inc. filed with the Securities and
Exchange Commission the proposed rule change as described in Items I
and II below, which Items have been prepared by the Exchange. The
Exchange has designated the proposed rule change as constituting a
``non-controversial'' rule change pursuant to Section 19(b)(3)(A)(iii)
of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the
proposal effective upon receipt of this filing by the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe BYX Exchange, Inc. (the ``Exchange'' or ``BYX'') is filing
with the Securities and Exchange Commission (``Commission'') a proposal
to modify Rule 11.24(e). 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/byx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
[[Page 37294]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange currently operates a Retail Price Improvement Program
(``RPI Program'') \5\ that permits Retail Member Organizations
(``RMOs'') \6\ to submit Retail Orders \7\ to the Exchange. Exchange
Users \8\ are permitted to provide potential price improvement for
Retail Orders through the use of Retail Price Improvement Orders (``RPI
Orders'').\9\ When there is an RPI Order in a particular security that
meets certain requirements (further described below), the Exchange
disseminates an indicator, known as the Retail Liquidity Identifier
(the ``Identifier'').\10\ The Exchange now proposes to amend Rule
11.24(e), which describes when the Exchange will disseminate the
Identifier.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 68303 (November 27,
2012), 77 FR 71652 (December 3, 2012), SR-BYX-2012-019 (``Order
Granting Approval to Proposed Rule Change, as Modified by Amendment
No. 2, To Adopt a Retail Price Improvement Program'').
\6\ See Rule 11.24(a)(1). An RMO is a Member (or a division
thereof) that has been approved by the Exchange under Rule 11.24 to
submit Retail Orders.
\7\ See Rule 11.24(a)(2). A Retail Order is an agency or
riskless principal order that meets the criteria of FINRA Rule
5320.03 that originates from a natural person and is submitted to
the Exchange by an RMO, provided that no change is made to the terms
of an order with respect to price or side of market and the order
does not originate from a trading algorithm or any other
computerized methodology. A Retail Order is an Immediate or Cancel
(``IOC'') Order and shall operate in accordance with Rule 11.24(f).
A Retail Order can be an odd lot, round lot, or mixed lot.
\8\ See Rule 1.5. The term ``User'' shall mean any Member or
Sponsored Participant who is authorized to obtain access to the
System pursuant to Rule 11.3.
\9\ See Rule 11.24(a)(3). An RPI Order consists of non-displayed
interest on the Exchange that is priced better than the Protected
NBB or Protected NBO by at least $0.001 and that is identified as
such. The System will monitor whether RPI buy or sell interest,
adjusted by any offset and subject to the ceiling or floor price, is
eligible to interact with incoming Retail Orders. An RPI Order
remains non-displayed in its entirety (the buy or sell interest, the
offset, and the ceiling or floor). An RPI Order may also be entered
in a sub-penny increment with an explicit limit price. Any User is
permitted, but not required, to submit RPI Orders. An RPI Order may
be an odd lot, round lot or mixed lot.
\10\ See Rule 11.24(e). The Retail Liquidity Identifier shall be
disseminated through proprietary data feeds or as appropriate
through the Consolidated Quotation System when RPI interest priced
at least $0.001 better than the Exchange's Protected Bid or
Protected Offer for a security is available in the System. The
Retail Liquidity Identifier shall reflect the symbol for the
particular security and the side (buy or sell) of the RPI interest,
but shall not include the price or size of the RPI interest.
---------------------------------------------------------------------------
Currently, Rule 11.24(e) states that the Exchange may disseminate
the Identifier ``when RPI interest priced at least $0.001 better than
the Exchange's Protected Bid or Protected Offer for a particular
security is available in the System.'' Exchange Rule 1.5(t) defines
Protected Bid and Protected Offer as a bid or offer in a stock that is
(i) displayed by an automated trading center; (ii) disseminated
pursuant to an effective national market system plan; and (iii) an
automated quotation that is the best bid or best offer of a national
securities exchange or association.\11\ In other words, the Protected
Bid or Protected Offer referenced in Rule 11.24(e) is the Protected Bid
or Protected Offer on the Exchange and does not contemplate the
Protected Bid or Protected Offer on any other exchanges.
---------------------------------------------------------------------------
\11\ See Rule 1.5(t).
---------------------------------------------------------------------------
The Exchange now proposes to amend Rule 11.24(e) so that the
Identifier will be disseminated when there is RPI interest priced at
least $0.001 better than the Protected NBB (``PBB'') or Protected NBO
(``PBO'') \12\ available in the System. The Exchange notes that its
proposed functionality is substantively identical to NYSE Rule 7.44(j),
NYSE Arca Rule 7.44-E(j), and Nasdaq BX Rule 4780(e).\13\ The Exchange
believes that removing the reference to the ``Exchange's Protected Bid
or Protected Offer'' and providing for the dissemination of the
Identifier to occur when there is RPI interest priced at least $0.001
better than PBB or PBO may decrease the amount of false signals
provided by the Identifier,\14\ as the Identifier would no longer be
disseminated only when there is an RPI Order priced $0.001 better than
the Exchange's (emphasis added) Protected Bid \15\ or Protected
Offer.\16\ The Exchange further believes that permitting the Identifier
to display when there is RPI interest priced at least $0.001 better
than the PBB or PBO may attract additional retail order flow and create
greater retail order flow competition, which helps ensure that retail
investors benefit from competitive price improvement that liquidity
providers provide.
---------------------------------------------------------------------------
\12\ See Rule 1.5(s). ``Protected NBB'' shall mean the national
best bid that is a Protected Quotation and the term ``Protected
NBO'' shall mean the national best offer that is a Protected
Quotation. The term ``Protected Quotation'' is defined in Rule
1.5(t) and means a quotation that is a Protected Bid or a Protected
Offer.
\13\ See e.g., NYSE Rule 7.44(j) and NYSE Arca Rule 7.44-E(j). A
Retail Liquidity Identifier will be disseminated through proprietary
data feeds and through the Consolidated Quotation System or the UTP
Quote Data Feed when RPI interest priced at least $0.001 better than
the PBB or PBO for a particular security is available in the
applicable exchange systems. See also Nasdaq BX Rule 4780(e), which
states that an identifier shall be disseminated through proprietary
data feeds and through the Securities Information Processor when RPI
interest priced at least $0.001 better than the NBBO for a
particular security is available in the Nasdaq BX system.
\14\ The Exchange has been made aware of instances where the
Identifier is disseminated because of an RPI Order priced better
than the Exchange's Protected Bid or Protected Offer, but because
the RPI Order is not priced at least $0.001 better than the PBB or
PBO, it is ineligible to execute. When this occurs, Retail Orders
submitted to the Exchange to execute against the RPI interest
identified by the Identifier are rejected. The Exchange believes
that by amending Rule 11.24(e), fewer false signals will occur
because the Identifier will only display when there is RPI interest
priced at least $0.001 better than the PBB or PBO.
\15\ Supra note 11.
\16\ Id.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\17\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \18\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, 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. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \19\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78f(b).
\18\ 15 U.S.C. 78f(b)(5).
\19\ Id.
---------------------------------------------------------------------------
[[Page 37295]]
In particular, the proposed change promotes just and equitable
principles of trade and removes impediments to and perfects the
mechanism of a free and open market and a national market system
because the proposed change is reasonably designed to attract retail
order flow to the Exchange, which in turn may allow retail investors to
benefit from the better price that liquidity providers are willing to
give their orders. The Exchange believes its proposed amendment to Rule
11.24(e) will provide fewer false signals, as the RPI interest signaled
by the Identifier would no longer be based on the Exchange's Protected
Bid or Protected Offer, but rather will be based on the PBB or PBO. By
displaying the Identifier based on the PBB or PBO, the Exchange expects
fewer instances in which Retail Orders submitted to execute against RPI
Orders based on the Identifier would be rejected due to the RPI Order
being inexecutable.\20\ This may help attract additional retail order
flow to the Exchange, which will create greater retail order flow
competition amongst exchanges and provide more opportunities for
competitive price improvement for retail orders, benefitting market
participants as a whole.
---------------------------------------------------------------------------
\20\ Supra note 14.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes that
the proposal does not impose any burden on intramarket competition that
is not necessary or appropriate in furtherance of the purposes of the
Act. Particularly, the proposal will apply equally to all RPI interest
on the Exchange that is priced at least $0.001 better than the PBB or
PBO. Furthermore, the Exchange believes its proposal will promote
intramarket competition as additional retail order flow may be
submitted to the Exchange with the potential to interact with other
price improving liquidity or resting orders, subject to RMO order
designation.
The Exchange also believes the proposed rule change does not impose
any burden on intermarket competition that is not necessary or
appropriate in furtherance of the Act. As discussed above, NYSE, NYSE
Arca, and Nasdaq BX each disseminate similar indicators of RPI interest
under their respective retail price improvement programs and the
Exchange believes that its proposed rule change will allow it to
compete for additional retail order flow with the aforementioned
exchanges.\21\ Given that the Exchange's Identifier is proposed to be
displayed in an almost identical manner to the competitor exchanges
mentioned above rather than its current state of being displayed only
when there is RPI interest priced $0.001 better than the Exchange's
(emphasis added) Protected Best Bid or Protected Best Offer, the
Exchange believes its proposal to permit the Identifier to display when
there is RPI interest priced at least $0.001 better than the PBB or PBO
will promote competition between the exchanges, hence fostering
innovation within the market, and increasing the quality of the
national market system by allowing national securities exchanges to
compete both with each other and with off-exchange venues for order
flow.
---------------------------------------------------------------------------
\21\ Supra note 13.
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
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 if consistent with the
protection of investors and the public interest, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \22\ and Rule 19b-
4(f)(6) \23\ thereunder.
---------------------------------------------------------------------------
\22\ 15 U.S.C. 78s(b)(3)(A).
\23\ 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) \24\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\25\ the Commission
may 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 proposed
rule change may become operative upon filing. The Exchange states that
waiver of the operative delay does not present market participants with
any new or novel issues, as other exchanges already utilize the PBB,
PBO, or NBBO to determine when to disseminate their retail liquidity
identifiers, and that accordingly, the proposed rule change does not
significantly affect the protection of investors or the public
interest.\26\ The Exchange also states that the proposed amendment to
its Rule 11.24(e) will result in fewer instances in which Retail Orders
submitted to execute against RPI Orders based on the Identifier would
be rejected due to the RPI Order being inexecutable. For these reasons,
the Commission believes that 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.\27\
---------------------------------------------------------------------------
\24\ 17 CFR 240.19b-4(f)(6).
\25\ 17 CFR 240.19b-4(f)(6)(iii).
\26\ The Exchange also states that NYSE, NYSE Arca, and Nasdaq
BX each disseminate similar indicators of RPI interest under their
respective retail price improvement programs, and the Exchange
believes that its proposed rule change will allow it to compete for
additional retail order flow with the aforementioned exchanges. See
supra note 21 and accompanying text.
\27\ 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-CboeBYX-2023-008 on the subject line.
[[Page 37296]]
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-CboeBYX-2023-008. 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 a.m. and 3
p.m. Copies of such 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-CboeBYX-2023-008 and should be submitted
on or before June 28, 2023.
---------------------------------------------------------------------------
\28\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-12110 Filed 6-6-23; 8:45 am]
BILLING CODE 8011-01-P
