Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Minor, Non-Substantive Edits to Rules 100, 515A, and 521, 50937-50939 [2023-16390]
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Federal Register / Vol. 88, No. 147 / Wednesday, August 2, 2023 / Notices
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–2023–050 and should be
submitted on or before August 23, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.47
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–16391 Filed 8–1–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98010; File No. SR–
EMERALD–2023–16]
Self-Regulatory Organizations; MIAX
Emerald, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Make Minor, NonSubstantive Edits to Rules 100, 515A,
and 521
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 July 17,
2023, MIAX Emerald, LLC (‘‘MIAX
Emerald’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to make a
number of minor, non-substantive edits
to Interpretations and Policies .01(b) of
Exchange Rule 100, Definitions,
Exchange Rule 515A, MIAX Emerald
Price Improvement Mechanism
(‘‘PRIME’’) and PRIME Solicitation
Mechanism, and Interpretations and
Policies .03 of Exchange Rule 521,
Nullification and Adjustment of Options
Transactions Including Obvious Errors.
ddrumheller on DSK120RN23PROD with NOTICES1
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
July 27, 2023.
47 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxglobal.com/markets/
us-options/emerald-options/rule-filings,
at MIAX Emerald’s principal office, and
at the Commission’s Public Reference
Room.
19:49 Aug 01, 2023
Jkt 259001
Amendment to Exchange Rule 515A
The Exchange proposes to amend
Exchange Rule 515A to make minor,
non-substantive edits and clarifying
changes to provide accuracy and
precision within the rule text.
Specifically, the Exchange proposes to
amend current subparagraphs (a)(1)(ii)
and (a)(1)(iii) to remove the periods at
the end of the sentences and replace
them with semicolons for grammatical
correctness and clarity in the Rule text.
Additionally, the Exchange proposes to
remove the word ‘‘and’’ at the end of
subparagraph (a)(1)(i) and add the word
‘‘and’’ at the end of subparagraph
(a)(1)(iii). Furthermore, the Exchange
proposes to amend current
subparagraph (a)(1)(iii) by changing the
first word ‘‘With’’ to lowercase at the
beginning of the sentence. Accordingly,
with the proposed changes,
subparagraphs (a)(1)(i) through (a)(1)(iv)
will read as follows:
(i) the Agency Order is in a class
designated as eligible for PRIME as
determined by the Exchange and within the
designated Auction order eligibility size
parameters as such size parameters are
determined by the Exchange;
(ii) the Initiating Member must stop the
entire Agency Order as principal or with a
solicited order at the better of the NBBO or
PO 00000
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50937
the Agency Order’s limit price (if the order
is a limit order);
(iii) with respect to Agency Orders that
have a size of less than 50 contracts, if at the
time of receipt of the Agency Order, the
NBBO has a bid/ask differential of $0.01, the
System will reject the Agency Order; and
(iv) Post-only OQs may not participate in
PRIME as an Agency Order, principal interest
or solicited interest.
Amendment to the Interpretations and
Policies of Exchange Rules 100 and 521
The Exchange proposes to amend the
Interpretations and Policies of Exchange
Rules 100 and 521 to make minor, nonsubstantive edits and clarifying changes
to provide accuracy and precision
within the Interpretations and Policies
of the Rule text.
Specifically, the Exchange proposes to
amend current subparagraph .01(b) of
the Interpretations and Policies of
Exchange Rule 100 to replace the
capitalized word ‘‘Complex’’ with the
lowercase word ‘‘complex’’ at the
beginning of the second sentence.
Accordingly, with the proposed
changes, subparagraph .01(b) will
provide as follows:
(b) Complex orders comprised of eight (8)
options legs or fewer shall be counted as a
single order. For complex orders comprised
of nine (9) options legs or more, each leg
shall count as its own separate order.
Similarly, the Exchange proposes to
amend current paragraph ‘‘.03 Complex
Orders’’ of the Interpretations and
Policies of Exchange Rule 521 to replace
all the capitalized occurrences of the
word ‘‘Complex’’ with the lowercase
word ‘‘complex’’. Accordingly, with the
proposed changes, paragraph ‘‘.03
Complex Orders’’ will provide as
follows:
.03 Complex Orders.
(a) If a complex order executes against
individual legs and at least one of the legs
qualifies as an Obvious Error under
paragraph (c)(1) or a Catastrophic Error under
paragraph (d)(1), then the leg(s) that is an
Obvious or Catastrophic Error will be
adjusted in accordance with paragraphs
(c)(4)(A) or (d)(3), respectively, regardless of
whether one of the parties is a Customer.
However, any Customer order subject to this
paragraph (a) will be nullified if the
adjustment would result in an execution
price higher (for buy transactions) or lower
(for sell transactions) than the Customer’s
limit price on the complex order or
individual leg(s). If any leg of a complex
order is nullified, the entire transaction is
nullified.
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50938
Federal Register / Vol. 88, No. 147 / Wednesday, August 2, 2023 / Notices
(b) If a complex order executes against
another complex order and at least one of the
legs qualifies as an Obvious Error under
paragraph (c)(1) or a Catastrophic Error under
paragraph (d)(1), then the leg(s) that is an
Obvious or Catastrophic Error will be
adjusted or busted in accordance with
paragraph (c)(4) or (d)(3), respectively, so
long as either: (i) the width of the National
Spread Market for the complex order strategy
just prior to the erroneous transaction was
equal to or greater than the amount set forth
in the wide quote table of paragraph (b)(3),
or
(ii) the net execution price of the complex
order is higher (lower) than the offer (bid) of
the National Spread Market for the complex
order strategy just prior to the erroneous
transaction by an amount equal to at least the
amount shown in the table in paragraph
(c)(1). If any leg of a complex order is
nullified, the entire transaction is nullified.
For purposes of this Rule 521, the National
Spread Market for a complex order strategy
is determined by the National Best Bid/Offer
of the individual legs of the strategy.
The purpose of all these proposed
changes is to provide consistency and
uniformity within the Exchange’s
Rulebook.
2. Statutory Basis
The Exchange believes that the
proposed rule changes are consistent
with Section 6(b) of the Act 3 in general,
and furthers the objectives of Section
6(b)(1) of the Act 4 in particular, in that
they are designed to enforce compliance
by its Members 5 and persons associated
with its Members, with the provisions of
the rules of the Exchange. In particular,
the Exchange believes that the proposed
rule changes will provide greater clarity
to Members and the public regarding the
Exchange’s Rules by correcting
grammatical errors and providing
consistency within the Exchange’s
Rulebook. The proposed changes will
also make it easier for Members to
interpret the Exchange’s Rulebook.
ddrumheller on DSK120RN23PROD with NOTICES1
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. Specifically,
the Exchange believes the proposed
changes will not impose any burden on
intra-market competition as there is no
functional change to the Exchange’s
3 15
U.S.C. 78f(b).
U.S.C. 78f(b)(1).
5 The term ‘‘Member’’ means an individual or
organization approved to exercise the trading rights
associated with a Trading Permit. Members are
deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
4 15
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19:49 Aug 01, 2023
Jkt 259001
System 6 and because the rules of the
Exchange apply to all MIAX Emerald
participants equally. The Exchange
believes the proposed rule changes will
not impose any burden on intra-market
competition as the proposed changes are
not designed to address any competitive
issue but rather are designed to remedy
minor non-substantive issues and
provide added precision and accuracy
to the rule text of Exchange Rule 515A
and the Interpretations and Policies of
Exchange Rules 100 and 521. In
addition, the Exchange does not believe
the proposal will impose any burden on
inter-market competition as the
proposal does not address any
competitive issues and is intended to
protect investors by providing further
transparency and precision for
referencing the Exchange’s Rules.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 7 and Rule
19b–4(f)(6) thereunder.8 Because the
proposed rule change does not: (i)
significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 9 and Rule 19b–4(f)(6)(iii)
thereunder.10
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
6 The term ‘‘System’’ means the automated
trading system used by the Exchange for the trading
of securities. See Exchange Rule 100.
7 15 U.S.C. 78s(b)(3)(A)(iii).
8 17 CFR 240.19b–4(f)(6).
9 15 U.S.C. 78s(b)(3)(A).
10 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.
PO 00000
Frm 00106
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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
under Section 19(b)(2)(B) 11 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
EMERALD–2023–16 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–EMERALD–2023–16. 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
11 15
E:\FR\FM\02AUN1.SGM
U.S.C. 78s(b)(2)(B).
02AUN1
Federal Register / Vol. 88, No. 147 / Wednesday, August 2, 2023 / Notices
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–EMERALD–2023–16 and should be
submitted on or before August 23, 2023.
Amendment, along with information
pursuant to Rule 608(a) under the Act.5
A copy of the OPRA Fee Schedule,
marked to show the proposed
Amendment, is Attachment A to this
notice.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Sherry R. Haywood,
Assistant Secretary.
I. Rule 608(a)
[FR Doc. 2023–16390 Filed 8–1–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98012; File No. SR–OPRA–
2023–01]
Options Price Reporting Authority;
Notice of Filing and Immediate
Effectiveness of Proposed Amendment
To Modify the OPRA Fee Schedule
Regarding Caps on Certain Port Fees
July 27, 2023.
Pursuant to Section 11A of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 608 thereunder,2
notice is hereby given that on July 17,
2023, the Options Price Reporting
Authority (‘‘OPRA’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed amendment
to the Plan for Reporting of
Consolidated Options Last Sale Reports
and Quotation Information (‘‘OPRA
Plan’’).3 The proposed OPRA Plan
amendment (‘‘Amendment’’) would
amend the OPRA Fee Schedule. The
Commission is publishing this notice to
provide interested persons an
opportunity to submit written
comments on the Amendment.
The Amendment has been filed by the
Participants pursuant to Rule 608(b)(2)
under Regulation NMS.4 The
Commission is publishing this notice to
solicit comments from interested
persons on the proposed Amendment.
Set forth in Section I, which was
prepared and filed with the Commission
by the Participants, is the statement of
the purpose and summary of the
12 17
CFR 200.30–3(a)(12).
U.S.C. 78k–1.
2 17 CFR 242.608.
3 The OPRA Plan is a national market system plan
approved by the Commission pursuant to Section
11A of the Act and Rule 608 thereunder. See
Securities Exchange Act Release No. 17638 (March
18, 1981), 22 S.E.C. Docket 484 (March 31, 1981).
The full text of the OPRA Plan and a list of its
participants are available at https://
www.opraplan.com/. The OPRA Plan provides for
the collection and dissemination of last sale and
quotation information on options that are traded on
the participant exchanges.
4 17 CFR 242.608(b)(2).
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1 15
VerDate Sep<11>2014
19:49 Aug 01, 2023
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(a) Statement of Purpose
The purpose of the amendment is to
amend the OPRA Fee Schedule to
provide public notice of the fact that
OPRA negotiated terms in the 2021
Processor Services Agreement (the
‘‘2021 Processor Agreement’’) between
OPRA and the Securities Industry
Automation Corporation (‘‘SIAC’’)
which impose caps on certain port fees
that can be charged per month when
SIAC, either directly or through a third
party, provides direct access to OPRA
data to any person authorized by OPRA
to receive direct access to OPRA data.
Under the 2021 Processor Agreement,
SIAC is OPRA’s ‘‘processor,’’ meaning
that SIAC gathers the last sale and quote
information from each of the OPRA
members, consolidates that information,
and disseminates the consolidated
OPRA data. As the processor, SIAC
works directly with OPRA members and
data vendors to provide connectivity to
SIAC. Connectivity to SIAC is currently
provided by an affiliate of SIAC, the ICE
Global Network (‘‘IGN’’), and IGN both
sets and charges the port fees associated
with that connectivity. OPRA, in
contrast, does not provide access ports,
it does not charge any port fees, it does
not collect any fees on behalf of OPRA
members in connection with access to
SIAC, and it does not receive any
portion of port fees charged by other
entities. As a result, OPRA does not
believe that the caps that OPRA
negotiated with SIAC concerning the
amount of port fees that can be charged
either (1) establishes or changes a fee or
charge collected on behalf of the
members of the OPRA Plan in
connection with access to, or use of, any
OPRA facilities or (2) represents a fee or
charge imposed by OPRA as
contemplated by Rule 608(a)(5)(ii) of
Regulation NMS.6 Nonetheless, OPRA is
submitting this proposed plan
amendment because OPRA wishes to
provide the public with notice of the
contractual fee caps that it negotiated
with SIAC and because Commission
Staff requested that it do so.
In 2014, OPRA was engaged in a
competitive bidding process involving
firms that were seeking to become
OPRA’s data processor for a five-year
5 17
6 17
PO 00000
CFR 242.801(a).
CFR 242.608(a)(5)(ii).
Frm 00107
Fmt 4703
Sfmt 4703
50939
term to begin in 2015. As part of that
process, OPRA was considering many
factors raised by the materials submitted
by several entities in response to
OPRA’s request for proposals. Although
OPRA does not own, or have any
control over, the myriad locations where
a data recipient might choose to receive
OPRA data and OPRA has no role in
setting the port connection fees that
might be charged by the entities that
control access at those locations, OPRA
requested that the two finalist bidders
each outline any commitments that they
could make to cap the 10G and 40G
network connection fees that might be
charged to data recipients and to the
OPRA members during the term of the
new processor agreement. In response,
SIAC, the bidder that was eventually
selected to continue as the OPRA
processor, stated its expectation that the
10G port fee would not rise above the
then current rate of $16,000 per month
(including the cross-connect) and that
the 40G port fee would not rise above
the then current rate of $20,500 per
month (including the cross-connect).
As OPRA negotiated the terms of a
new processor agreement with SIAC,
OPRA’s Management Committee
requested that SIAC’s expectation that
port fees would not increase above the
existing levels be included in the
agreement, and SIAC agreed. SIAC also
agreed to the inclusion of a provision
providing that, whenever higher
capacity ports might become available
during the term of the agreement, OPRA
would have the right to approve a cap
on the port fees that could be charged
for those higher capacity ports.
Effective as of January 1, 2015, OPRA
and SIAC entered into a new Processor
Agreement for a term ending on
December 31, 2020 (the ‘‘2015 Processor
Agreement’’). Consistent with the
parties’ negotiations, the 2015 Processor
Agreement contained the following
provision:
During the Term, SIAC will provide,
directly or through a third party, access to
OPRA Data to any person authorized by
OPRA to receive direct access to OPRA Data
for total fees not to exceed $16,000 per month
per 10G port and $20,500 per month per 40G
port, in each case, inclusive of cross-connect
(whether or not such fees also cover direct
access to data in addition to the OPRA Data).
If and when during the Term, direct access
to the OPRA Data becomes available via
higher capacity ports, SIAC will provide,
directly or through a third party, access to
OPRA Data to any person authorized by
OPRA to receive direct access to OPRA Data
for total fees not to exceed an amount
approved by OPRA (such approval not to be
unreasonably withheld) and not inconsistent
with the 10G and 40G port rates.
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]]>Agencies
[Federal Register Volume 88, Number 147 (Wednesday, August 2, 2023)]
[Notices]
[Pages 50937-50939]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16390]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98010; File No. SR-EMERALD-2023-16]
Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Make
Minor, Non-Substantive Edits to Rules 100, 515A, and 521
July 27, 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 July 17, 2023, MIAX Emerald, LLC (``MIAX Emerald'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to make a number of minor, non-substantive
edits to Interpretations and Policies .01(b) of Exchange Rule 100,
Definitions, Exchange Rule 515A, MIAX Emerald Price Improvement
Mechanism (``PRIME'') and PRIME Solicitation Mechanism, and
Interpretations and Policies .03 of Exchange Rule 521, Nullification
and Adjustment of Options Transactions Including Obvious Errors.
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxglobal.com/markets/us-options/emerald-options/rule-filings, at MIAX Emerald's principal office, 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
Amendment to Exchange Rule 515A
The Exchange proposes to amend Exchange Rule 515A to make minor,
non-substantive edits and clarifying changes to provide accuracy and
precision within the rule text.
Specifically, the Exchange proposes to amend current subparagraphs
(a)(1)(ii) and (a)(1)(iii) to remove the periods at the end of the
sentences and replace them with semicolons for grammatical correctness
and clarity in the Rule text. Additionally, the Exchange proposes to
remove the word ``and'' at the end of subparagraph (a)(1)(i) and add
the word ``and'' at the end of subparagraph (a)(1)(iii). Furthermore,
the Exchange proposes to amend current subparagraph (a)(1)(iii) by
changing the first word ``With'' to lowercase at the beginning of the
sentence. Accordingly, with the proposed changes, subparagraphs
(a)(1)(i) through (a)(1)(iv) will read as follows:
(i) the Agency Order is in a class designated as eligible for
PRIME as determined by the Exchange and within the designated
Auction order eligibility size parameters as such size parameters
are determined by the Exchange;
(ii) the Initiating Member must stop the entire Agency Order as
principal or with a solicited order at the better of the NBBO or the
Agency Order's limit price (if the order is a limit order);
(iii) with respect to Agency Orders that have a size of less
than 50 contracts, if at the time of receipt of the Agency Order,
the NBBO has a bid/ask differential of $0.01, the System will reject
the Agency Order; and
(iv) Post-only OQs may not participate in PRIME as an Agency
Order, principal interest or solicited interest.
Amendment to the Interpretations and Policies of Exchange Rules 100 and
521
The Exchange proposes to amend the Interpretations and Policies of
Exchange Rules 100 and 521 to make minor, non-substantive edits and
clarifying changes to provide accuracy and precision within the
Interpretations and Policies of the Rule text.
Specifically, the Exchange proposes to amend current subparagraph
.01(b) of the Interpretations and Policies of Exchange Rule 100 to
replace the capitalized word ``Complex'' with the lowercase word
``complex'' at the beginning of the second sentence. Accordingly, with
the proposed changes, subparagraph .01(b) will provide as follows:
(b) Complex orders comprised of eight (8) options legs or fewer
shall be counted as a single order. For complex orders comprised of
nine (9) options legs or more, each leg shall count as its own
separate order.
Similarly, the Exchange proposes to amend current paragraph ``.03
Complex Orders'' of the Interpretations and Policies of Exchange Rule
521 to replace all the capitalized occurrences of the word ``Complex''
with the lowercase word ``complex''. Accordingly, with the proposed
changes, paragraph ``.03 Complex Orders'' will provide as follows:
.03 Complex Orders.
(a) If a complex order executes against individual legs and at
least one of the legs qualifies as an Obvious Error under paragraph
(c)(1) or a Catastrophic Error under paragraph (d)(1), then the
leg(s) that is an Obvious or Catastrophic Error will be adjusted in
accordance with paragraphs (c)(4)(A) or (d)(3), respectively,
regardless of whether one of the parties is a Customer. However, any
Customer order subject to this paragraph (a) will be nullified if
the adjustment would result in an execution price higher (for buy
transactions) or lower (for sell transactions) than the Customer's
limit price on the complex order or individual leg(s). If any leg of
a complex order is nullified, the entire transaction is nullified.
[[Page 50938]]
(b) If a complex order executes against another complex order
and at least one of the legs qualifies as an Obvious Error under
paragraph (c)(1) or a Catastrophic Error under paragraph (d)(1),
then the leg(s) that is an Obvious or Catastrophic Error will be
adjusted or busted in accordance with paragraph (c)(4) or (d)(3),
respectively, so long as either: (i) the width of the National
Spread Market for the complex order strategy just prior to the
erroneous transaction was equal to or greater than the amount set
forth in the wide quote table of paragraph (b)(3), or
(ii) the net execution price of the complex order is higher
(lower) than the offer (bid) of the National Spread Market for the
complex order strategy just prior to the erroneous transaction by an
amount equal to at least the amount shown in the table in paragraph
(c)(1). If any leg of a complex order is nullified, the entire
transaction is nullified. For purposes of this Rule 521, the
National Spread Market for a complex order strategy is determined by
the National Best Bid/Offer of the individual legs of the strategy.
The purpose of all these proposed changes is to provide consistency
and uniformity within the Exchange's Rulebook.
2. Statutory Basis
The Exchange believes that the proposed rule changes are consistent
with Section 6(b) of the Act \3\ in general, and furthers the
objectives of Section 6(b)(1) of the Act \4\ in particular, in that
they are designed to enforce compliance by its Members \5\ and persons
associated with its Members, with the provisions of the rules of the
Exchange. In particular, the Exchange believes that the proposed rule
changes will provide greater clarity to Members and the public
regarding the Exchange's Rules by correcting grammatical errors and
providing consistency within the Exchange's Rulebook. The proposed
changes will also make it easier for Members to interpret the
Exchange's Rulebook.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(1).
\5\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. Specifically, the Exchange
believes the proposed changes will not impose any burden on intra-
market competition as there is no functional change to the Exchange's
System \6\ and because the rules of the Exchange apply to all MIAX
Emerald participants equally. The Exchange believes the proposed rule
changes will not impose any burden on intra-market competition as the
proposed changes are not designed to address any competitive issue but
rather are designed to remedy minor non-substantive issues and provide
added precision and accuracy to the rule text of Exchange Rule 515A and
the Interpretations and Policies of Exchange Rules 100 and 521. In
addition, the Exchange does not believe the proposal will impose any
burden on inter-market competition as the proposal does not address any
competitive issues and is intended to protect investors by providing
further transparency and precision for referencing the Exchange's
Rules.
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\6\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\
Because the proposed rule change does not: (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6)(iii) thereunder.\10\
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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6).
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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.
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At any time within 60 days of the filing of such 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 under
Section 19(b)(2)(B) \11\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\11\ 15 U.S.C. 78s(b)(2)(B).
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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-EMERALD-2023-16 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-EMERALD-2023-16. 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
[[Page 50939]]
withhold entirely from publication submitted material that is obscene
or subject to copyright protection. All submissions should refer to
file number SR-EMERALD-2023-16 and should be submitted on or before
August 23, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-16390 Filed 8-1-23; 8:45 am]
BILLING CODE 8011-01-P
