Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 44421-44423 [2023-14668]
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Federal Register / Vol. 88, No. 132 / Wednesday, July 12, 2023 / Notices
• Send an email to rule-comments@
sec.gov. Please include file number SR–
CboeBYX–2023–009 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–CboeBYX–2023–009. 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 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–CboeBYX–2023–009 and should be
submitted on or before August 2, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–14665 Filed 7–11–23; 8:45 am]
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BILLING CODE 8011–01–P
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CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
34958; File No. 812–15460]
Morningstar Funds Trust and
Morningstar Investment Management
LLC.
Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’).
ACTION: Notice.
AGENCY:
Notice of an application under
Section 6(c) of the Investment Company
Act of 1940 (‘‘Act’’) for an exemption
from Section 15(c) of the Act.
SUMMARY OF APPLICATION: The requested
exemption would permit a Trust’s board
of trustees (the ‘‘Board’’) to approve new
sub-advisory agreements and material
amendments to existing sub-advisory
agreements without complying with the
in-person meeting requirement of
Section 15(c) of the Act.
APPLICANTS: Morningstar Funds Trust
and Morningstar Investment
Management LLC.
FILING DATES: The application was filed
on April 27, 2023, and amended on June
23, 2023 and June 28, 2023.
HEARING OR NOTIFICATION OF HEARING:
An order granting the requested relief
will be issued unless the Commission
orders a hearing. Interested persons may
request a hearing on any application by
emailing the SEC’s Secretary at
Secretarys-Office@sec.gov and serving
the Applicants with a copy of the
request by email, if an email address is
listed for the relevant Applicant below,
or personally or by mail, if a physical
address is listed for the relevant
Applicant below. Hearing requests
should be received by the Commission
by 5:30 p.m. on July 31, 2023, and
should be accompanied by proof of
service on the Applicants, in the form
of an affidavit or, for lawyers, a
certificate of service. Pursuant to rule 0–
5 under the Act, hearing requests should
state the nature of the writer’s interest,
any facts bearing upon the desirability
of a hearing on the matter, the reason for
the request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
emailing the Commission’s Secretary.
ADDRESSES: The Commission:
Secretarys-Office@sec.gov. Applicants:
Eric S. Purple, Esq., Stradley Ronon
Stevens & Young, LLP, epurple@
stradley.com and Mena M. Larmour,
Esq., Stradley Ronon Stevens & Young,
LLP, mlarmour@stradley.com.
FOR FURTHER INFORMATION CONTACT:
Trace W. Rakestraw, Senior Special
Counsel, at (202) 551–6825 (Division of
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44421
Investment Management, Chief
Counsel’s Office).
SUPPLEMENTARY INFORMATION: For
Applicants’ representations, legal
analysis, and conditions, please refer to
Applicants’ second amended
application, dated June 28, 2023, which
may be obtained via the Commission’s
website by searching for the file number
at the top of this document, or for an
Applicant using the Company name
search field, on the SEC’s EDGAR
system. The SEC’s EDGAR system may
be searched at https://www.sec.gov/
edgar/searchedgar/legacy/
companysearch.html. You may also call
the SEC’s Public Reference Room at
(202) 551–8090.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Dated: July 6, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–14664 Filed 7–11–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97848; File No. SR–
CboeEDGX–2023–043]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Its
Fee Schedule
July 6, 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 June 22,
2023, Cboe EDGX Exchange, Inc.
(‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) proposes to
amend its Fee Schedule. 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
1 15
2 17
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Federal Register / Vol. 88, No. 132 / Wednesday, July 12, 2023 / Notices
website (https://markets.cboe.com/us/
options/regulation/rule_filings/edgx/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
The Exchange proposes to amend its
Fee Schedule applicable to its equities
trading platform (‘‘EDGX Equities’’) by
amending the definition of the Russell
Reconstitution Day. The Exchange
proposes to implement these changes
effective June 22, 2023.
The ‘‘definitions’’ section of the
Exchange’s Fee Schedule defines
various terms used throughout the Fee
Schedule. As explained under the
definitions of ADAV, ADV, and TCV,3
the Exchange currently excludes the
Russell Reconstitution Day from the
calculation of ADAV, ADV, and TCV,
each of which are calculated on a
monthly basis.4 The Russell
Reconstitution Day is defined in the Fee
Schedule as ‘‘the last Friday in June.’’ 5
While generally the Russell
Reconstitution Day does occur on the
3 ‘‘ADAV’’ means average daily added volume
calculated as the number of shares added per day
and ‘‘ADV’’ means average daily volume calculated
as the number of shares added to, removed from,
or routed by, the Exchange, or any combination or
subset thereof, per day. ADAV and ADV are
calculated on a monthly basis. ‘‘TCV’’ means total
consolidated volume as the volume reported by all
exchanges and trade reporting facilities to a
consolidated transaction reporting plan for the
month for which the fees apply.
4 The Russell Reconstitution Day is generally
characterized by high trading volumes, much of
which are derived from market participants who are
not generally as active entering the market to
rebalance their holdings in-line with the annual
rebalancing of the Russell indices. The Exchange,
along with other competing exchanges, excludes the
Russell Reconstitution Day from certain volume
calculations as the high trading volumes can
significantly impact trading and quoting
calculations.
5 See EDGX Equities Fee Schedule, Definitions.
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last Friday in June, in months [sic]
where there are five Fridays in June the
Russell Reconstitution Day instead falls
on the fourth Friday in June. The
Exchange proposes to amend the
definition of Russell Reconstitution Day
to ‘‘the fourth Friday in June’’ 6 in order
to provide a more accurate description
of the date which will not be included
in the calculation of ADAV, ADV, and
TCV to its Members.7 The Exchange is
not proposing to make any other
changes to the Definitions in its Fee
Schedule and will announce the change
via a Trade Desk notice to Members.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.8 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 9 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) 10 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers as
well as Section 6(b)(4) 11 as it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its Members and
other persons using its facilities.
In particular, the Exchange believes
its proposal to amend the definition of
6 See Russell U.S. Equity Indices Construction
and Methodology, available at https://research.
ftserussell.com/products/downloads/Russell-USindexes.pdf (last accessed June 21, 2023).
7 See Rule 1.5(n) (‘‘Member’’). The term
‘‘Member’’ shall mean any registered broker or
dealer that has been admitted to membership in the
Exchange. A Member will have the status of a
‘‘member’’ of the Exchange as that term is defined
in Section 3(a)(3) of the Act. Membership may be
granted to a sole proprietor, partnership,
corporation, limited liability company or other
organization which is a registered broker or dealer
pursuant to Section 15 of the Act, and which has
been approved by the Exchange.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 Id.
11 15 U.S.C. 78f(b)(4).
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the ‘‘Russell Reconstitution Day’’ is not
designed to permit unfair
discrimination between customer,
issuers, brokers, or dealers and is
designed to provide for the equitable
allocation of fees. Specifically, the
proposal is intended only to add clarity
to the Exchange’s Fee Schedule by
providing Members with additional
certainty as to their level of rebates and
costs for trading during the month of
June and involves no substantive
change. Additionally, the proposed
change promotes just and equitable
principles of trade and is designed to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system as it
provides transparency to Members
regarding which date in the month of
June will not be included in the
calculation of ADAV, ADV, and TCV.
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. Rather, as
discussed above, the Exchange believes
that the proposed changes would
encourage the submission of additional
order flow to a public exchange, thereby
promoting market depth, execution
incentives and enhanced execution
opportunities, as well as price discovery
and transparency for all Members. As a
result, the Exchange believes that the
proposed changes further the
Commission’s goal in adopting
Regulation NMS of fostering
competition among orders, which
promotes ‘‘more efficient pricing of
individual stocks for all types of orders,
large and small.’’
The Exchange believes the proposed
rule changes do not impose any burden
on intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Specifically,
the Exchange does not believe that its
proposal to revise the definition of
‘‘Russell Reconstitution Day’’ will have
any impact on competition as the
change is only intended to add clarity
to the Exchange’s Fee Schedule and
involves no substantive change.
Next, the Exchange believes the
proposed rule changes does not impose
any burden on intermarket competition
that is not necessary or appropriate in
furtherance of the purposes of the Act.
As previously discussed, the Exchange
operates in a highly competitive market.
Members have numerous alternative
venues that they may participate on and
direct their order flow, including other
equities exchanges, off-exchange
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Federal Register / Vol. 88, No. 132 / Wednesday, July 12, 2023 / Notices
venues, and alternative trading systems.
Additionally, the Exchange represents a
small percentage of the overall market.
By providing Members with a greater
level of certainty as to which date in the
month of June will be excluded from the
calculation of ADAV, ADV, and TCV,
the Exchange is providing additional
certainty as to the level of rebates and
costs for trading during the month of the
Russell reconstitution, which could
promote competition between the
Exchange and other execution venues.
Accordingly, the Exchange does not
believe its proposed fee change imposes
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and paragraph (f) of Rule
19b–4 13 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
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 will 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:
lotter on DSK11XQN23PROD with NOTICES1
Electronic Comments
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–CboeEDGX–2023–043. 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 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–CboeEDGX–2023–043 and should be
submitted on or before August 2, 2023.
For the Commission, by the Division
of Trading and Markets, pursuant to
delegated authority.14
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–14668 Filed 7–11–23; 8:45 am]
BILLING CODE 8011–01–P
• 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–
CboeEDGX–2023–043 on the subject
line.
12 15
13 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
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44423
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97844; File No. SR–
NASDAQ–2022–079]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Designation of a Longer Period on
Proceedings To Determine Whether To
Approve or Disapprove a Proposed
Rule Change, as Modified by
Amendment No. 1, To Amend Rules
4702(b)(14) and (b)(15) Concerning
Dynamic M–ELO Holding Periods
July 6, 2023.
On December 21, 2022, The Nasdaq
Stock Market LLC (‘‘Nasdaq’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
replace the static holding period
requirements for Midpoint Extended
Life Orders and Midpoint Extended Life
Orders Plus Continuous Book with
dynamic holding periods. The proposed
rule change was published for comment
in the Federal Register on January 10,
2023.3 On February 22, 2023, pursuant
to Section 19(b)(2) of the Act,4 the
Commission designated a longer period
within which to approve the proposed
rule change, disapprove the proposed
rule change, or institute proceedings to
determine whether to disapprove the
proposed rule change.5 On March 9,
2023, the Exchange filed Amendment
No.1 to the proposed rule change, which
amended and superseded the proposed
rule change as originally filed. On April
7, 2023, the Commission provided
notice of filing of Amendment No. 1 and
instituted proceedings to determine
whether to approve or disapprove the
proposed rule change, as modified by
Amendment No. 1.6 The Commission
received comments on the proposed
rule change.7
Section 19(b)(2) of the Act 8 provides
that, after initiating proceedings, the
Commission shall issue an order
approving or disapproving the proposed
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 92844
(January 4, 2023), 88 FR 1438.
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 96963,
88 FR 12710 (February 28, 2023).
6 See Securities Exchange Act Release No. 97263,
88 FR 22498 (April 13, 2023).
7 All comments received by the Commission on
the proposed rule change are available on the
Commission’s website at: https://www.sec.gov/
comments/sr-nasdaq-2022-079/srnasdaq2022079.
htm.
8 15 U.S.C. 78s(b)(2).
2 17
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]]>Agencies
[Federal Register Volume 88, Number 132 (Wednesday, July 12, 2023)]
[Notices]
[Pages 44421-44423]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14668]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97848; File No. SR-CboeEDGX-2023-043]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Its Fee Schedule
July 6, 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 June 22, 2023, Cboe EDGX Exchange, Inc. (``Exchange'' or ``EDGX'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\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
Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') proposes to
amend its Fee Schedule. 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
[[Page 44422]]
website (https://markets.cboe.com/us/options/regulation/rule_filings/edgx/), at the Exchange's Office of the Secretary, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fee Schedule applicable to its
equities trading platform (``EDGX Equities'') by amending the
definition of the Russell Reconstitution Day. The Exchange proposes to
implement these changes effective June 22, 2023.
The ``definitions'' section of the Exchange's Fee Schedule defines
various terms used throughout the Fee Schedule. As explained under the
definitions of ADAV, ADV, and TCV,\3\ the Exchange currently excludes
the Russell Reconstitution Day from the calculation of ADAV, ADV, and
TCV, each of which are calculated on a monthly basis.\4\ The Russell
Reconstitution Day is defined in the Fee Schedule as ``the last Friday
in June.'' \5\ While generally the Russell Reconstitution Day does
occur on the last Friday in June, in months [sic] where there are five
Fridays in June the Russell Reconstitution Day instead falls on the
fourth Friday in June. The Exchange proposes to amend the definition of
Russell Reconstitution Day to ``the fourth Friday in June'' \6\ in
order to provide a more accurate description of the date which will not
be included in the calculation of ADAV, ADV, and TCV to its Members.\7\
The Exchange is not proposing to make any other changes to the
Definitions in its Fee Schedule and will announce the change via a
Trade Desk notice to Members.
---------------------------------------------------------------------------
\3\ ``ADAV'' means average daily added volume calculated as the
number of shares added per day and ``ADV'' means average daily
volume calculated as the number of shares added to, removed from, or
routed by, the Exchange, or any combination or subset thereof, per
day. ADAV and ADV are calculated on a monthly basis. ``TCV'' means
total consolidated volume as the volume reported by all exchanges
and trade reporting facilities to a consolidated transaction
reporting plan for the month for which the fees apply.
\4\ The Russell Reconstitution Day is generally characterized by
high trading volumes, much of which are derived from market
participants who are not generally as active entering the market to
rebalance their holdings in-line with the annual rebalancing of the
Russell indices. The Exchange, along with other competing exchanges,
excludes the Russell Reconstitution Day from certain volume
calculations as the high trading volumes can significantly impact
trading and quoting calculations.
\5\ See EDGX Equities Fee Schedule, Definitions.
\6\ See Russell U.S. Equity Indices Construction and
Methodology, available at https://research.ftserussell.com/products/downloads/Russell-US-indexes.pdf (last accessed June 21, 2023).
\7\ See Rule 1.5(n) (``Member''). The term ``Member'' shall mean
any registered broker or dealer that has been admitted to membership
in the Exchange. A Member will have the status of a ``member'' of
the Exchange as that term is defined in Section 3(a)(3) of the Act.
Membership may be granted to a sole proprietor, partnership,
corporation, limited liability company or other organization which
is a registered broker or dealer pursuant to Section 15 of the Act,
and which has been approved by the Exchange.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\8\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \9\ 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) \10\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers as well as Section 6(b)(4) \11\
as it is designed to provide for the equitable allocation of reasonable
dues, fees and other charges among its Members and other persons using
its facilities.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ Id.
\11\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
In particular, the Exchange believes its proposal to amend the
definition of the ``Russell Reconstitution Day'' is not designed to
permit unfair discrimination between customer, issuers, brokers, or
dealers and is designed to provide for the equitable allocation of
fees. Specifically, the proposal is intended only to add clarity to the
Exchange's Fee Schedule by providing Members with additional certainty
as to their level of rebates and costs for trading during the month of
June and involves no substantive change. Additionally, the proposed
change promotes just and equitable principles of trade and is designed
to remove impediments to and perfect the mechanism of a free and open
market and a national market system as it provides transparency to
Members regarding which date in the month of June will not be included
in the calculation of ADAV, ADV, and TCV.
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. Rather, as discussed above,
the Exchange believes that the proposed changes would encourage the
submission of additional order flow to a public exchange, thereby
promoting market depth, execution incentives and enhanced execution
opportunities, as well as price discovery and transparency for all
Members. As a result, the Exchange believes that the proposed changes
further the Commission's goal in adopting Regulation NMS of fostering
competition among orders, which promotes ``more efficient pricing of
individual stocks for all types of orders, large and small.''
The Exchange believes the proposed rule changes do not impose any
burden on intramarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act. Specifically, the Exchange
does not believe that its proposal to revise the definition of
``Russell Reconstitution Day'' will have any impact on competition as
the change is only intended to add clarity to the Exchange's Fee
Schedule and involves no substantive change.
Next, the Exchange believes the proposed rule changes does not
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. As previously
discussed, the Exchange operates in a highly competitive market.
Members have numerous alternative venues that they may participate on
and direct their order flow, including other equities exchanges, off-
exchange
[[Page 44423]]
venues, and alternative trading systems. Additionally, the Exchange
represents a small percentage of the overall market. By providing
Members with a greater level of certainty as to which date in the month
of June will be excluded from the calculation of ADAV, ADV, and TCV,
the Exchange is providing additional certainty as to the level of
rebates and costs for trading during the month of the Russell
reconstitution, which could promote competition between the Exchange
and other execution venues. Accordingly, the Exchange does not believe
its proposed fee change imposes any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \12\ and paragraph (f) of Rule 19b-4 \13\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such 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 will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f).
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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-CboeEDGX-2023-043 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-CboeEDGX-2023-043.
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 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-CboeEDGX-2023-043 and
should be submitted on or before August 2, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-14668 Filed 7-11-23; 8:45 am]
BILLING CODE 8011-01-P
