Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by MIAX PEARL, LLC To Renumber the MIAX Pearl Equities Rulebook, 67835-67838 [2023-21627]

Download as PDF Federal Register / Vol. 88, No. 189 / Monday, October 2, 2023 / Notices disapprove the proposed rule change (File No. SR–MIAX–2023–19). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2023–21629 Filed 9–29–23; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–98535; File No. SR– PEARL–2023–47] Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by MIAX PEARL, LLC To Renumber the MIAX Pearl Equities Rulebook September 26, 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 September 22, 2023, MIAX PEARL, LLC (‘‘MIAX Pearl’’ or ‘‘Exchange’’) 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. lotter on DSK11XQN23PROD with NOTICES1 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend Exchange Rule 2614, Orders and Order Instructions, Rule 2615, Opening Process for Equity Securities, Rule 2616, Priority of Orders, Rule 2617, Order Execution and Routing, Rule 2622, Limit Up-Limit Down Plan and Trading Halts, and Rule 2623, Short Sales, to make minor, non-substantive edits and clarifying changes to the rule text applicable to MIAX Pearl Equities (‘‘MIAX Pearl Equities’’),3 an equities trading facility of the Exchange. The text of the proposed rule change is available on the Exchange’s website at https://www.miaxglobal.com/markets/ us-equities/pearl-equities/rule-filings, at MIAX Pearl’s principal office, and at the Commission’s Public Reference Room. 12 17 CFR 200.30–3(a)(57). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 The term ‘‘MIAX Pearl Equities’’ shall mean MIAX Pearl Equities, a facility of MIAX PEARL, LLC. See Exchange Rule 1901. 1 15 VerDate Sep<11>2014 18:41 Sep 29, 2023 Jkt 262001 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 the hierarchical headings in Exchange Rule 2614 as follows: subparagraphs (a)(1)(A)–(J) will be renumbered as (a)(1)(i)–(x); subparagraph (a)(1)(A)(i) will be renumbered as (a)(1)(i)(A); subparagraphs (a)(1)(E)(i)–(ii) will be renumbered as (a)(1)(v)(A)–(B); subparagraphs (a)(1)(I)(i)–(iv) will be renumbered as (a)(1)(ix)(A)–(D); subparagraphs (a)(1)(I)(i)(a)–(c) will be renumbered as (a)(1)(ix)(A)1.–3.; subparagraphs (a)(2)(A)–(F) will be renumbered as (a)(2)(i)–(vi); subparagraphs (a)(3)(A)–(E) will be renumbered as (a)(3)(i)–(v); subparagraphs (a)(3)(A)(i)–(ii) will be renumbered as (a)(3)(i)(A)–(B); subparagraphs (a)(3)(A)(i)(a)–(b) will be renumbered as (a)(3)(i)(A)1.–2.; subparagraphs (a)(3)(A)(ii)(a)–(h) will be renumbered as (a)(3)(i)(B)1.–8.; subparagraphs (c)(2)(A)–(B) will be renumbered as (c)(2)(i)–(ii); subparagraphs (c)(2)(A)(i)–(ii) will be renumbered as (c)(2)(i)(A)–(B); subparagraphs (c)(7)(A)–(D) will be renumbered as (c)(7)(i)–(iv); subparagraph (c)(7)(A)(i) will be renumbered as (c)(7)(i)(A); subparagraphs (c)(7)(B)(i)–(iv) will be renumbered as (c)(7)(ii)(A)–(D); and subparagraphs (c)(7)(B)(i)(1)–(2) will be renumbered as (c)(7)(ii)(A)1.–2.; subparagraphs (c)(7)(B)(iii)(1)–(2) will be renumbered as (c)(7)(ii)(C)1.–2.; subparagraphs (c)(7)(C)(i)–(ii) will be renumbered as (c)(7)(iii)(A)–(B); subparagraphs (c)(8)(A)–(D) will be renumbered as (c)(8)(i)–(iv); subparagraphs (c)(8)(A)(i)–(iii) will be renumbered as (c)(8)(i)(A)–(C); subparagraphs (c)(8)(A)(i)(1)–(2) will be renumbered as (c)(8)(i)(A)1.–2.; subparagraphs (c)(8)(B)(i)–(ii) will be renumbered as (c)(8)(ii)(A)–(B); PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 67835 subparagraphs (d)(1)(A)–(B) will be renumbered as (d)(1)(i)–(ii); subparagraphs (g)(1)(A)–(E) will be renumbered as (g)(1)(i)–(v); and subparagraphs (g)(3)(A)–(E) will be renumbered as (g)(3)(i)–(v). The Exchange proposes to amend the hierarchical headings in Exchange Rule 2615 as follows: subparagraphs (e)(1)(A)–(B) will be renumbered as (e)(1)(i)–(ii). The Exchange proposes to amend the hierarchical headings in Exchange Rule 2616 as follows: subparagraphs (a)(2)(A)–(B) will be renumbered as (a)(2)(i)–(ii); subparagraphs (a)(2)(A)(i)– (ii) will be renumbered as (a)(2)(i)(A)– (B); subparagraph (a)(2)(B)(i) will be renumbered as (a)(2)(ii)(A); subparagraphs (a)(3)(A)–(B) will be renumbered as (a)(3)(i)–(ii); and subparagraphs (a)(3)(A)(i)–(ii) will be renumbered as (a)(3)(i)(A)–(B). The Exchange proposes to amend the hierarchical headings in Exchange Rule 2622 as follows: subparagraphs (e)(1)(A)–(D) will be renumbered as (e)(1)(i)–(iv); subparagraphs (h)(1)(A)– (M) will be renumbered as (h)(1)(i)– (xiii); subparagraphs (h)(1)(A)(i)–(iv) will be renumbered as (h)(1)(i)(A)–(D); subparagraphs (h)(2)(A)–(B) will be renumbered as (h)(2)(i)–(ii); subparagraphs (h)(2)(A)(i)–(iii) will be renumbered as (h)(2)(i)(A)–(C); subparagraphs (h)(2)(A)(i)(a)–(e) will be renumbered as (h)(2)(i)(A)1.–5.; subparagraphs (h)(2)(A)(i)(a)1.–2. will be renumbered as (h)(2)(i)(A)1.a.–b.; subparagraphs (h)(2)(A)(i)(e)1.–4. will be renumbered as (h)(2)(i)(A)5.a.–d.; subparagraph (h)(2)(A)(iii)(a) will be renumbered as (h)(2)(i)(C)1.; subparagraphs (h)(2)(A)(iii)(a)1.–3. will be renumbered as (h)(2)(i)(C)1.a.–c.; subparagraphs (h)(2)(B)(i)–(iii) will be renumbered as (h)(2)(ii)(A)–(C); subparagraph (h)(2)(B)(i)(a) will be renumbered as (h)(2)(ii)(A)1.; subparagraph (h)(2)(B)(ii)(a) will be renumbered as (h)(2)(ii)(B)1.; subparagraphs (h)(3)(A)–(C) will be renumbered as (h)(3)(i)–(iii); subparagraphs (h)(3)(A)(i)–(ii) will be renumbered as (h)(3)(i)(A)–(B); and subparagraphs (h)(3)(C)(i)–(iii) will be renumbered as (h)(3)(iii)(A)–(C). Next, the Exchange proposes to amend proposed renumbered subparagraph (a)(1)(vi) of Exchange Rule 2614 to replace certain internal cross references to another subparagraph of Exchange Rule 2614 in light of the proposed hierarchical heading changes described above. In particular, the Exchange proposes to amend the cross references contained in proposed renumbered Exchange Rule 2614(a)(1)(vi), that are to subparagraph E:\FR\FM\02OCN1.SGM 02OCN1 67836 Federal Register / Vol. 88, No. 189 / Monday, October 2, 2023 / Notices 2614(g)(3)(A), to now be to proposed renumbered subparagraph 2614(g)(3)(i). Accordingly, with all the proposed changes, Exchange Rule 2614(a)(1)(vi) will provide as follows: (vi) Re-Pricing to Comply with Rule 201 of Regulation SHO. During a Short Sale Period, as defined in Exchange Rule 2614(g)(3)(i), a Limit Order to sell that is designated as short and cannot be executed or displayed on the MIAX Pearl Equities Book at its limit price pursuant to Rule 201 of Regulation SHO will be re-priced to a Permitted Price, as defined in Exchange Rule 2614(g)(3)(i), pursuant to the Short Sale Price Sliding Process, unless the User affirmatively elects to have the order immediately cancelled. During a Short Sale Period, as defined in Exchange Rule 2614(g)(3)(i), the System will immediately cancel any portion of an incoming Limit Order designated as ISO and short that includes a time-in-force instruction RHO that cannot be executed or displayed at its limit price at the time of entry pursuant to Rule 201 of Regulation SHO. Next, the Exchange proposes to amend proposed renumbered subparagraphs (a)(1)(ix)(A)1.–3. of Exchange Rule 2614 to replace certain internal cross references to other subparagraphs of Exchange Rule 2614 in light of the hierarchical heading changes described above. In particular, the Exchange proposes to amend the cross references contained in proposed renumbered Exchange Rule 2614(a)(1)(ix)(A) that are to subparagraphs (a) and (b), to now be to subparagraphs 1. and 2., respectively. Accordingly, with all the proposed changes, Exchange Rule 2614(a)(1)(ix)(A)1.–3. will provide as follows: lotter on DSK11XQN23PROD with NOTICES1 1. PBO for Limit Orders to buy, the PBB for Limit Orders to sell; 2. if 1. is unavailable, consolidated last sale price disseminated during the Regular Trading Hours on trade date; or 3. if neither 1. or 2. are available, the prior day’s Official Closing Price identified as such by the primary listing exchange, adjusted to account for events such as corporate actions and news events. Next, the Exchange proposes to amend proposed renumbered subparagraph (a)(1)(ix)(C) of Exchange Rule 2614 to replace certain internal cross references to other subparagraphs of Exchange Rule 2614 in light of the hierarchical heading changes described above. In particular, the Exchange proposes to amend the cross references contained in proposed renumbered Exchange Rule 2614 (a)(1)(ix)(C)that are to subparagraphs (a)(1)(I)(i)(a), (b), and (c), to now be to subparagraphs (a)(1)(ix)(A)1., 2., and 3., respectively. Accordingly, with all the proposed changes, Exchange Rule 2614 (a)(1)(ix)(C) will provide as follows: VerDate Sep<11>2014 19:35 Sep 29, 2023 Jkt 262001 (C) Applicability. Limit Order Price Protection will be applied when an order is first eligible to trade. A Limit Order entered before the Regular Trading Session that becomes eligible to trade in the Regular Trading Session will become subject to Limit Order Price Protection when the Regular Trading Session begins. Limit Order Price Protection will not be applied if the prices listed under paragraphs (a)(1)(ix)(A)1., 2., or 3. of this Exchange Rule 2614 are unavailable or if the price listed under paragraph (a)(1)(ix)(A)3. is to be applied and a regulatory halt has been declared by the primary listing market during that trading day. Next, the Exchange proposes to amend proposed renumbered subparagraph (a)(2)(v) of Exchange Rule 2614 to replace certain internal cross references to another subparagraph of Exchange Rule 2614 in light of the hierarchical heading changes described above. In particular, the Exchange proposes to amend the cross references contained in proposed renumbered Exchange Rule 2614 (a)(2)(v) that are to subparagraph (g)(3)(A) to now be to subparagraph (g)(3)(i). Accordingly, with all the proposed changes, Exchange Rule 2614 (a)(2)(v) will provide as follows: (v) Short Sales. During a Short Sale Period, as defined in Exchange Rule 2614(g)(3)(i), a Market Order to sell that is marked short will be cancelled upon entry if it cannot be executed at a Permitted Price or better, as defined in Exchange Rule 2614(g)(3)(i). Next, the Exchange proposes to amend proposed renumbered subparagraph (a)(3)(i)(B)6. of Exchange Rule 2614 to replace certain internal cross references to another subparagraph of Exchange Rule 2614 in light of the hierarchical heading changes described above. In particular, the Exchange proposes to amend the cross references contained in proposed renumbered Exchange Rule 2614 (a)(3)(i)(B)6. that are to subparagraph (g)(3)(A) to now be to subparagraph (g)(3)(i). Accordingly, with all the proposed changes, Exchange Rule 2614 (a)(3)(i)(B)6. will provide as follows: 6. Re-Pricing to Comply with Rule 201 of Regulation SHO. During a Short Sale Period, as defined in Exchange Rule 2614(g)(3)(i), a Primary Peg Order to sell that is designated as short and cannot be executed or displayed on the MIAX Pearl Equities Book at its pegged price pursuant to Rule 201 of Regulation SHO will be re-priced multiple times to a Permitted Price, as defined in Exchange Rule 2614(g)(3)(i), pursuant to the Short Sale Price Sliding Process. Next, the Exchange proposes to amend proposed renumbered subparagraph (a)(3)(ii) of Exchange Rule 2614 to replace a certain internal cross reference to another subparagraph of PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 Exchange Rule 2614 in light of the hierarchical heading changes described above. In particular, the Exchange proposes to amend the cross reference contained in proposed renumbered Exchange Rule 2614 (a)(3)(ii) that is to subparagraph (B), to now be to subparagraph (ii). Accordingly, with all the proposed changes, Exchange Rule 2614 (a)(3)(ii) will provide as follows: (ii) A Midpoint Peg Order will be accepted but will not be eligible for execution when the PBB and/or PBO is not available. A Primary Peg Order will be accepted but will not be eligible for execution when the PBB or PBO it is pegged to is not available. All Pegged Orders will be accepted but will not be eligible for execution when the PBBO is crossed, and, if instructed by the User, when the PBBO is locked. A Pegged Order that is eligible for execution when the PBBO is locked will be executable at the locking price. A Pegged Order will become eligible for execution and receive a new timestamp when the PBBO uncrosses. A Pegged Order that was not eligible for execution during a locked market will become eligible for execution and receive a new timestamp when the PBBO unlocks. A Primary Peg Order will become eligible for execution and receive a new timestamp when the PBB or PBO it is pegged to becomes available. A Midpoint Peg Order will become eligible for execution and receive a new timestamp when a new midpoint of the PBBO is established. In each of the above cases, pursuant to Exchange Rule 2616, all such Pegged Orders will retain their priority as compared to each other based upon the time priority of such orders immediately prior to being deemed not eligible for execution as set forth in this subparagraph (ii). Next, the Exchange proposes to amend proposed renumbered subparagraph (c)(8)(iv) of Exchange Rule 2614 to replace a certain internal cross reference to another subparagraph of Exchange Rule 2614 in light of the hierarchical heading changes described above. In particular, the Exchange proposes to amend the cross reference contained in proposed renumbered Exchange Rule 2614 (c)(8)(iv) that is to subparagraph (c)(8)(A)(i) to now be to subparagraph (c)(8)(i)(A). Accordingly, with all the proposed changes, Exchange Rule 2614 (c)(8)(iv) will provide as follows: (iv) Routing. Any quantity of an order with a Reserve Quantity that is returned unexecuted will join the Reserve Quantity. If there is no Reserve Quantity to join, the returned quantity will be assigned a new time stamp as the Reserve Quantity. In either case, such Reserve Quantity will replenish the Displayed Quantity as provided for in paragraph (c)(8)(i)(A) of this Rule. Next, the Exchange proposes to amend proposed renumbered subparagraph (e)(2)of Exchange Rule 2615 to replace a certain internal cross E:\FR\FM\02OCN1.SGM 02OCN1 Federal Register / Vol. 88, No. 189 / Monday, October 2, 2023 / Notices reference to another subparagraph of Exchange Rule 2615 in light of the changes described above. In particular, the Exchange proposes to amend the cross reference contained in proposed renumbered Exchange Rule 2615 (e)(2) that is to subparagraph (e)(1)(B) to now be to subparagraph (e)(1)(ii). Accordingly, with all the proposed changes, Exchange Rule 2615 (e)(2) will provide as follows: (2) Where neither of the conditions required to establish the price of the ReOpening Process in paragraph (e)(1)(ii) above have occurred, the equity security may be opened for trading at the discretion of the Exchange. In such case, all orders will be handled in time sequence, beginning with the order with the oldest timestamp, and be placed on the MIAX Pearl Equities Book, cancelled, executed, or routed to away Trading Centers in accordance with the terms of the order. Next, the Exchange proposes to amend proposed renumbered subparagraph (a)(2)(ii) of Exchange Rule 2616 to replace a certain internal cross reference to another subparagraph of Exchange Rule 2616 in light of the hierarchical heading changes described above. In particular, the Exchange proposes to amend the cross reference contained in proposed renumbered Exchange Rule 2616 (a)(2)(ii) that is to subparagraph (A) to now be to subparagraph (i). Accordingly, with all the proposed changes, Exchange Rule 2616 (a)(2)(ii) will provide as follows: (ii) For purposes of paragraph (i) above. lotter on DSK11XQN23PROD with NOTICES1 Next, the Exchange proposes to amend proposed renumbered subparagraph (e)(2)of Exchange Rule 2622 to replace certain internal cross references to other subparagraphs of Exchange Rule 2622 in light of the hierarchical heading changes described above. In particular, the Exchange proposes to amend the cross references contained in proposed renumbered Exchange Rule 2622(e)(2) that are to subparagraphs (e)(1)(A)–(D) to now be to subparagraphs (e)(1)(i)–(iv). Accordingly, with all the proposed changes, Exchange Rule 2622(e)(2) will provide as follows: (2) To the extent that an Equity Member participating in a MWCB test is unable to receive and process any of the messages identified in paragraph (e)(1)(i)–(iv) of this Rule, its attestation should notify the Exchange which messages it was unable to process and, if known, why. Next, the Exchange proposes to amend proposed renumbered subparagraph (h)(2)(i)(A)5.b. of Exchange Rule 2622 to replace certain internal cross references to another subparagraph of Exchange Rule 2622 in VerDate Sep<11>2014 18:41 Sep 29, 2023 Jkt 262001 light of the hierarchical heading changes described above. In particular, the Exchange proposes to amend the cross references contained in proposed renumbered Exchange Rule 2622 (h)(2)(i)(A)5.b. that are to subparagraph (e) to now be to subparagraph 5. Additionally, the Exchange proposes to amend proposed renumbered subparagraph (h)(2)(i)(A)5.b. of Exchange Rule 2622 to replace a certain internal cross reference to another rule in light of the hierarchical heading changes described above. In particular, the Exchange proposes to amend the cross reference contained in Exchange Rule 2622 (h)(2)(i)(A)5.b. that is to current Exchange Rule 2614(g)(1)(C), to now be to proposed renumbered Exchange Rule 2614(g)(1)(iii). Accordingly, with all the proposed changes, Exchange Rule 2622 (h)(2)(i)(A)5.b. will provide as follows: b. Limit-Priced Interest. Limit-priced interest will be cancelled if a User has entered instructions not to use the re-pricing process under this paragraph 5. and such interest to buy (sell) is priced above (below) the Upper (Lower) Price Band. If re-pricing is permitted based on a User’s instructions, both displayable and non-displayable incoming limit-priced interest to buy (sell) that is priced above (below) the Upper (Lower) Price Band shall be re-priced to the Upper (Lower) Price Band. The System shall re-price resting limit-priced interest to buy (sell) to the Upper (Lower) Price Band if Price Bands move such that the price of resting limit-priced interest to buy (sell) would be above (below) the Upper (Lower) Price Band. If the Price Bands move again and a User has opted into the Exchange’s optional multiple price sliding process, as described in Exchange Rule 2614(g)(1)(iii), the System shall reprice such limit-priced interest to the most aggressive permissible price up to the order’s limit price. All other displayed and non-displayed limit interest repriced pursuant to this paragraph 5. will remain at its new price unless the Price Bands move such that the price of resting limit-priced interest to buy (sell) would again be above (below) the Upper (Lower) Price Band. Next, the Exchange proposes to amend proposed renumbered subparagraph (c)(8)(ii)(A) of Exchange Rule 2614 to replace certain internal cross references to other rules in light of the hierarchical heading changes described above. In particular, the Exchange proposes to amend the cross references contained in Exchange Rule 2614 (c)(8)(ii)(A) that are to current Exchange Rule 2616 (a)(2)(A)(i) and Rule 2616 (a)(2)(A)(ii) to now be to proposed renumbered Exchange Rule 2616 (a)(2)(i)(A) and Rule 2616 (a)(2)(i)(B), respectively. Similarly, the Exchange proposes to amend subparagraph (a)(5) of Exchange Rule 2616 to replace a certain internal PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 67837 cross reference to another rule in light of the changes described above. In particular, the Exchange proposes to amend the cross reference contained in Exchange Rule 2616 (a)(5) that is to current Exchange Rule 2614 (g)(3)(A), to now be to proposed renumbered Exchange Rule 2614 (g)(3)(i). Similarly, the Exchange proposes to amend subparagraph (a)(1) of Exchange Rule 2617 to replace a certain internal cross reference to another rule in light of the changes described above. In particular, the Exchange proposes to amend the cross reference contained in Exchange Rule 2617 (a)(1) that is to current Exchange Rule 2614 (g)(3)(A), to now be to proposed renumbered Exchange Rule 2614(g)(3)(i). Similarly, the Exchange proposes to amend subparagraph (b)(2) of Exchange Rule 2617 to replace certain internal cross references to another rule in light of the changes described above. In particular, the Exchange proposes to amend the cross references contained in Exchange Rule 2617 (b)(2) that is to current Exchange Rule 2614 (g)(3)(A), to now be to proposed renumbered Exchange Rule 2614 (g)(3)(i). Similarly, the Exchange proposes to amend subparagraph (h)(2)(i)(A)5.d. of Exchange Rule 2622 to replace certain internal cross references to another rule in light of the changes described above. In particular, the Exchange proposes to amend the cross references contained in Exchange Rule 2622 (h)(2)(i)(A)5.d. that are to current Exchange Rule 2614(g)(3)(A), to now be to proposed renumbered Exchange Rule 2614(g)(3)(i). Similarly, the Exchange proposes to amend Exchange Rule 2623 to replace a certain internal cross reference to another rule in light of the changes described above. In particular, the Exchange proposes to amend the cross reference contained in Exchange Rule 2623 that is to current Exchange Rule 2614(g)(3)(A), to now be to proposed renumbered Exchange Rule 2614(g)(3)(i). 2. Statutory Basis The Exchange believes that the proposed rule changes are consistent with Section 6(b) of the Act 4 in general, and furthers the objectives of Section 6(b)(1) of the Act 5 in particular, in that they are designed to enforce compliance by the Exchange’s Equity Members 6 and persons associated with its Equity 4 15 U.S.C. 78f(b). U.S.C. 78f(b)(1). 6 The term ‘‘Equity Member’’ is a Member authorized by the Exchange to transact business on MIAX Pearl Equities. See Exchange Rule 1901. 5 15 E:\FR\FM\02OCN1.SGM 02OCN1 67838 Federal Register / Vol. 88, No. 189 / Monday, October 2, 2023 / Notices Members, with the provisions of the rules of MIAX Pearl Equities. In particular, the Exchange believes that the proposed rule changes will provide greater clarity to Equity Members and the public regarding the Exchange’s Rules by providing consistency within the Exchange’s Rulebook. The proposed changes will ensure the hierarchical heading scheme aligns throughout the Exchange’s Rulebook. The proposed changes will also make it easier for Equity Members to interpret the Exchange’s Rulebook. B. Self-Regulatory Organization’s Statement on Burden on Competition IV. Solicitation of Comments 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 7 and because the rules of the Exchange apply to all MIAX Pearl Equities participants equally. The proposed rule change will have no impact on competition as it is not designed to address any competitive issue but rather is designed to remedy minor non-substantive issues and provide added clarity to the rule text of Exchange Rules 2614, 2615, 2616, 2617, 2622, and 2623. 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 regarding the Exchange’s functionality. 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. lotter on DSK11XQN23PROD with NOTICES1 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, it has become effective pursuant to 19(b)(3)(A) 7 The term ‘‘System’’ means the automated trading system used by the Exchange for the trading of securities. See Exchange Rule 100. VerDate Sep<11>2014 18:41 Sep 29, 2023 Jkt 262001 of the Act 8 and Rule 19b–4(f)(6) 9 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 shall institute proceedings to determine whether the proposed rule should be approved or disapproved. 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–PEARL–2023–47 and should be submitted on or before October 23, 2023. Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Sherry R. Haywood, Assistant Secretary. Electronic Comments [FR Doc. 2023–21627 Filed 9–29–23; 8:45 am] • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include file number SR– PEARL–2023–47 on the subject line. BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–98527; File No. SR– PEARL–2023–46] 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–PEARL–2023–47. 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 15 U.S.C. 78s(b)(3)(A). 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 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. 8 9 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 Self-Regulatory Organizations; MIAX PEARL LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Pearl Options Fee Schedule September 26, 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 September 12, 2023, MIAX PEARL, LLC (‘‘MIAX Pearl’’ or ‘‘Exchange’’) 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 The Exchange is filing a proposal to amend the MIAX Pearl Options Fee Schedule (‘‘Fee Schedule’’). The text of the proposed rule change is available on the Exchange’s website at https://www.miaxglobal.com/markets/ 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 10 1 15 E:\FR\FM\02OCN1.SGM 02OCN1

Agencies

[Federal Register Volume 88, Number 189 (Monday, October 2, 2023)]
[Notices]
[Pages 67835-67838]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-21627]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-98535; File No. SR-PEARL-2023-47]


Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change by MIAX PEARL, 
LLC To Renumber the MIAX Pearl Equities Rulebook

September 26, 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 September 22, 2023, MIAX PEARL, LLC (``MIAX Pearl'' or 
``Exchange'') 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to amend Exchange Rule 2614, 
Orders and Order Instructions, Rule 2615, Opening Process for Equity 
Securities, Rule 2616, Priority of Orders, Rule 2617, Order Execution 
and Routing, Rule 2622, Limit Up-Limit Down Plan and Trading Halts, and 
Rule 2623, Short Sales, to make minor, non-substantive edits and 
clarifying changes to the rule text applicable to MIAX Pearl Equities 
(``MIAX Pearl Equities''),\3\ an equities trading facility of the 
Exchange.
---------------------------------------------------------------------------

    \3\ The term ``MIAX Pearl Equities'' shall mean MIAX Pearl 
Equities, a facility of MIAX PEARL, LLC. See Exchange Rule 1901.
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's 
website at https://www.miaxglobal.com/markets/us-equities/pearl-equities/rule-filings, at MIAX Pearl'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
    The Exchange proposes to amend the hierarchical headings in 
Exchange Rule 2614 as follows: subparagraphs (a)(1)(A)-(J) will be 
renumbered as (a)(1)(i)-(x); subparagraph (a)(1)(A)(i) will be 
renumbered as (a)(1)(i)(A); subparagraphs (a)(1)(E)(i)-(ii) will be 
renumbered as (a)(1)(v)(A)-(B); subparagraphs (a)(1)(I)(i)-(iv) will be 
renumbered as (a)(1)(ix)(A)-(D); subparagraphs (a)(1)(I)(i)(a)-(c) will 
be renumbered as (a)(1)(ix)(A)1.-3.; subparagraphs (a)(2)(A)-(F) will 
be renumbered as (a)(2)(i)-(vi); subparagraphs (a)(3)(A)-(E) will be 
renumbered as (a)(3)(i)-(v); subparagraphs (a)(3)(A)(i)-(ii) will be 
renumbered as (a)(3)(i)(A)-(B); subparagraphs (a)(3)(A)(i)(a)-(b) will 
be renumbered as (a)(3)(i)(A)1.-2.; subparagraphs (a)(3)(A)(ii)(a)-(h) 
will be renumbered as (a)(3)(i)(B)1.-8.; subparagraphs (c)(2)(A)-(B) 
will be renumbered as (c)(2)(i)-(ii); subparagraphs (c)(2)(A)(i)-(ii) 
will be renumbered as (c)(2)(i)(A)-(B); subparagraphs (c)(7)(A)-(D) 
will be renumbered as (c)(7)(i)-(iv); subparagraph (c)(7)(A)(i) will be 
renumbered as (c)(7)(i)(A); subparagraphs (c)(7)(B)(i)-(iv) will be 
renumbered as (c)(7)(ii)(A)-(D); and subparagraphs (c)(7)(B)(i)(1)-(2) 
will be renumbered as (c)(7)(ii)(A)1.-2.; subparagraphs 
(c)(7)(B)(iii)(1)-(2) will be renumbered as (c)(7)(ii)(C)1.-2.; 
subparagraphs (c)(7)(C)(i)-(ii) will be renumbered as (c)(7)(iii)(A)-
(B); subparagraphs (c)(8)(A)-(D) will be renumbered as (c)(8)(i)-(iv); 
subparagraphs (c)(8)(A)(i)-(iii) will be renumbered as (c)(8)(i)(A)-
(C); subparagraphs (c)(8)(A)(i)(1)-(2) will be renumbered as 
(c)(8)(i)(A)1.-2.; subparagraphs (c)(8)(B)(i)-(ii) will be renumbered 
as (c)(8)(ii)(A)-(B); subparagraphs (d)(1)(A)-(B) will be renumbered as 
(d)(1)(i)-(ii); subparagraphs (g)(1)(A)-(E) will be renumbered as 
(g)(1)(i)-(v); and subparagraphs (g)(3)(A)-(E) will be renumbered as 
(g)(3)(i)-(v).
    The Exchange proposes to amend the hierarchical headings in 
Exchange Rule 2615 as follows: subparagraphs (e)(1)(A)-(B) will be 
renumbered as (e)(1)(i)-(ii).
    The Exchange proposes to amend the hierarchical headings in 
Exchange Rule 2616 as follows: subparagraphs (a)(2)(A)-(B) will be 
renumbered as (a)(2)(i)-(ii); subparagraphs (a)(2)(A)(i)-(ii) will be 
renumbered as (a)(2)(i)(A)-(B); subparagraph (a)(2)(B)(i) will be 
renumbered as (a)(2)(ii)(A); subparagraphs (a)(3)(A)-(B) will be 
renumbered as (a)(3)(i)-(ii); and subparagraphs (a)(3)(A)(i)-(ii) will 
be renumbered as (a)(3)(i)(A)-(B).
    The Exchange proposes to amend the hierarchical headings in 
Exchange Rule 2622 as follows: subparagraphs (e)(1)(A)-(D) will be 
renumbered as (e)(1)(i)-(iv); subparagraphs (h)(1)(A)-(M) will be 
renumbered as (h)(1)(i)-(xiii); subparagraphs (h)(1)(A)(i)-(iv) will be 
renumbered as (h)(1)(i)(A)-(D); subparagraphs (h)(2)(A)-(B) will be 
renumbered as (h)(2)(i)-(ii); subparagraphs (h)(2)(A)(i)-(iii) will be 
renumbered as (h)(2)(i)(A)-(C); subparagraphs (h)(2)(A)(i)(a)-(e) will 
be renumbered as (h)(2)(i)(A)1.-5.; subparagraphs (h)(2)(A)(i)(a)1.-2. 
will be renumbered as (h)(2)(i)(A)1.a.-b.; subparagraphs 
(h)(2)(A)(i)(e)1.-4. will be renumbered as (h)(2)(i)(A)5.a.-d.; 
subparagraph (h)(2)(A)(iii)(a) will be renumbered as (h)(2)(i)(C)1.; 
subparagraphs (h)(2)(A)(iii)(a)1.-3. will be renumbered as 
(h)(2)(i)(C)1.a.-c.; subparagraphs (h)(2)(B)(i)-(iii) will be 
renumbered as (h)(2)(ii)(A)-(C); subparagraph (h)(2)(B)(i)(a) will be 
renumbered as (h)(2)(ii)(A)1.; subparagraph (h)(2)(B)(ii)(a) will be 
renumbered as (h)(2)(ii)(B)1.; subparagraphs (h)(3)(A)-(C) will be 
renumbered as (h)(3)(i)-(iii); subparagraphs (h)(3)(A)(i)-(ii) will be 
renumbered as (h)(3)(i)(A)-(B); and subparagraphs (h)(3)(C)(i)-(iii) 
will be renumbered as (h)(3)(iii)(A)-(C).
    Next, the Exchange proposes to amend proposed renumbered 
subparagraph (a)(1)(vi) of Exchange Rule 2614 to replace certain 
internal cross references to another subparagraph of Exchange Rule 2614 
in light of the proposed hierarchical heading changes described above. 
In particular, the Exchange proposes to amend the cross references 
contained in proposed renumbered Exchange Rule 2614(a)(1)(vi), that are 
to subparagraph

[[Page 67836]]

2614(g)(3)(A), to now be to proposed renumbered subparagraph 
2614(g)(3)(i). Accordingly, with all the proposed changes, Exchange 
Rule 2614(a)(1)(vi) will provide as follows:

    (vi) Re-Pricing to Comply with Rule 201 of Regulation SHO. 
During a Short Sale Period, as defined in Exchange Rule 
2614(g)(3)(i), a Limit Order to sell that is designated as short and 
cannot be executed or displayed on the MIAX Pearl Equities Book at 
its limit price pursuant to Rule 201 of Regulation SHO will be re-
priced to a Permitted Price, as defined in Exchange Rule 
2614(g)(3)(i), pursuant to the Short Sale Price Sliding Process, 
unless the User affirmatively elects to have the order immediately 
cancelled.
    During a Short Sale Period, as defined in Exchange Rule 
2614(g)(3)(i), the System will immediately cancel any portion of an 
incoming Limit Order designated as ISO and short that includes a 
time-in-force instruction RHO that cannot be executed or displayed 
at its limit price at the time of entry pursuant to Rule 201 of 
Regulation SHO.

    Next, the Exchange proposes to amend proposed renumbered 
subparagraphs (a)(1)(ix)(A)1.-3. of Exchange Rule 2614 to replace 
certain internal cross references to other subparagraphs of Exchange 
Rule 2614 in light of the hierarchical heading changes described above. 
In particular, the Exchange proposes to amend the cross references 
contained in proposed renumbered Exchange Rule 2614(a)(1)(ix)(A) that 
are to subparagraphs (a) and (b), to now be to subparagraphs 1. and 2., 
respectively. Accordingly, with all the proposed changes, Exchange Rule 
2614(a)(1)(ix)(A)1.-3. will provide as follows:

    1. PBO for Limit Orders to buy, the PBB for Limit Orders to 
sell;
    2. if 1. is unavailable, consolidated last sale price 
disseminated during the Regular Trading Hours on trade date; or
    3. if neither 1. or 2. are available, the prior day's Official 
Closing Price identified as such by the primary listing exchange, 
adjusted to account for events such as corporate actions and news 
events.

    Next, the Exchange proposes to amend proposed renumbered 
subparagraph (a)(1)(ix)(C) of Exchange Rule 2614 to replace certain 
internal cross references to other subparagraphs of Exchange Rule 2614 
in light of the hierarchical heading changes described above. In 
particular, the Exchange proposes to amend the cross references 
contained in proposed renumbered Exchange Rule 2614 (a)(1)(ix)(C)that 
are to subparagraphs (a)(1)(I)(i)(a), (b), and (c), to now be to 
subparagraphs (a)(1)(ix)(A)1., 2., and 3., respectively. Accordingly, 
with all the proposed changes, Exchange Rule 2614 (a)(1)(ix)(C) will 
provide as follows:

    (C) Applicability. Limit Order Price Protection will be applied 
when an order is first eligible to trade. A Limit Order entered 
before the Regular Trading Session that becomes eligible to trade in 
the Regular Trading Session will become subject to Limit Order Price 
Protection when the Regular Trading Session begins. Limit Order 
Price Protection will not be applied if the prices listed under 
paragraphs (a)(1)(ix)(A)1., 2., or 3. of this Exchange Rule 2614 are 
unavailable or if the price listed under paragraph (a)(1)(ix)(A)3. 
is to be applied and a regulatory halt has been declared by the 
primary listing market during that trading day.

    Next, the Exchange proposes to amend proposed renumbered 
subparagraph (a)(2)(v) of Exchange Rule 2614 to replace certain 
internal cross references to another subparagraph of Exchange Rule 2614 
in light of the hierarchical heading changes described above. In 
particular, the Exchange proposes to amend the cross references 
contained in proposed renumbered Exchange Rule 2614 (a)(2)(v) that are 
to subparagraph (g)(3)(A) to now be to subparagraph (g)(3)(i). 
Accordingly, with all the proposed changes, Exchange Rule 2614 
(a)(2)(v) will provide as follows:

    (v) Short Sales. During a Short Sale Period, as defined in 
Exchange Rule 2614(g)(3)(i), a Market Order to sell that is marked 
short will be cancelled upon entry if it cannot be executed at a 
Permitted Price or better, as defined in Exchange Rule 
2614(g)(3)(i).

    Next, the Exchange proposes to amend proposed renumbered 
subparagraph (a)(3)(i)(B)6. of Exchange Rule 2614 to replace certain 
internal cross references to another subparagraph of Exchange Rule 2614 
in light of the hierarchical heading changes described above. In 
particular, the Exchange proposes to amend the cross references 
contained in proposed renumbered Exchange Rule 2614 (a)(3)(i)(B)6. that 
are to subparagraph (g)(3)(A) to now be to subparagraph (g)(3)(i). 
Accordingly, with all the proposed changes, Exchange Rule 2614 
(a)(3)(i)(B)6. will provide as follows:

    6. Re-Pricing to Comply with Rule 201 of Regulation SHO. During 
a Short Sale Period, as defined in Exchange Rule 2614(g)(3)(i), a 
Primary Peg Order to sell that is designated as short and cannot be 
executed or displayed on the MIAX Pearl Equities Book at its pegged 
price pursuant to Rule 201 of Regulation SHO will be re-priced 
multiple times to a Permitted Price, as defined in Exchange Rule 
2614(g)(3)(i), pursuant to the Short Sale Price Sliding Process.

    Next, the Exchange proposes to amend proposed renumbered 
subparagraph (a)(3)(ii) of Exchange Rule 2614 to replace a certain 
internal cross reference to another subparagraph of Exchange Rule 2614 
in light of the hierarchical heading changes described above. In 
particular, the Exchange proposes to amend the cross reference 
contained in proposed renumbered Exchange Rule 2614 (a)(3)(ii) that is 
to subparagraph (B), to now be to subparagraph (ii). Accordingly, with 
all the proposed changes, Exchange Rule 2614 (a)(3)(ii) will provide as 
follows:

    (ii) A Midpoint Peg Order will be accepted but will not be 
eligible for execution when the PBB and/or PBO is not available. A 
Primary Peg Order will be accepted but will not be eligible for 
execution when the PBB or PBO it is pegged to is not available. All 
Pegged Orders will be accepted but will not be eligible for 
execution when the PBBO is crossed, and, if instructed by the User, 
when the PBBO is locked. A Pegged Order that is eligible for 
execution when the PBBO is locked will be executable at the locking 
price. A Pegged Order will become eligible for execution and receive 
a new timestamp when the PBBO uncrosses. A Pegged Order that was not 
eligible for execution during a locked market will become eligible 
for execution and receive a new timestamp when the PBBO unlocks. A 
Primary Peg Order will become eligible for execution and receive a 
new timestamp when the PBB or PBO it is pegged to becomes available. 
A Midpoint Peg Order will become eligible for execution and receive 
a new timestamp when a new midpoint of the PBBO is established. In 
each of the above cases, pursuant to Exchange Rule 2616, all such 
Pegged Orders will retain their priority as compared to each other 
based upon the time priority of such orders immediately prior to 
being deemed not eligible for execution as set forth in this 
subparagraph (ii).

    Next, the Exchange proposes to amend proposed renumbered 
subparagraph (c)(8)(iv) of Exchange Rule 2614 to replace a certain 
internal cross reference to another subparagraph of Exchange Rule 2614 
in light of the hierarchical heading changes described above. In 
particular, the Exchange proposes to amend the cross reference 
contained in proposed renumbered Exchange Rule 2614 (c)(8)(iv) that is 
to subparagraph (c)(8)(A)(i) to now be to subparagraph (c)(8)(i)(A). 
Accordingly, with all the proposed changes, Exchange Rule 2614 
(c)(8)(iv) will provide as follows:

    (iv) Routing. Any quantity of an order with a Reserve Quantity 
that is returned unexecuted will join the Reserve Quantity. If there 
is no Reserve Quantity to join, the returned quantity will be 
assigned a new time stamp as the Reserve Quantity. In either case, 
such Reserve Quantity will replenish the Displayed Quantity as 
provided for in paragraph (c)(8)(i)(A) of this Rule.

    Next, the Exchange proposes to amend proposed renumbered 
subparagraph (e)(2)of Exchange Rule 2615 to replace a certain internal 
cross

[[Page 67837]]

reference to another subparagraph of Exchange Rule 2615 in light of the 
changes described above. In particular, the Exchange proposes to amend 
the cross reference contained in proposed renumbered Exchange Rule 2615 
(e)(2) that is to subparagraph (e)(1)(B) to now be to subparagraph 
(e)(1)(ii). Accordingly, with all the proposed changes, Exchange Rule 
2615 (e)(2) will provide as follows:

    (2) Where neither of the conditions required to establish the 
price of the Re-Opening Process in paragraph (e)(1)(ii) above have 
occurred, the equity security may be opened for trading at the 
discretion of the Exchange. In such case, all orders will be handled 
in time sequence, beginning with the order with the oldest 
timestamp, and be placed on the MIAX Pearl Equities Book, cancelled, 
executed, or routed to away Trading Centers in accordance with the 
terms of the order.

    Next, the Exchange proposes to amend proposed renumbered 
subparagraph (a)(2)(ii) of Exchange Rule 2616 to replace a certain 
internal cross reference to another subparagraph of Exchange Rule 2616 
in light of the hierarchical heading changes described above. In 
particular, the Exchange proposes to amend the cross reference 
contained in proposed renumbered Exchange Rule 2616 (a)(2)(ii) that is 
to subparagraph (A) to now be to subparagraph (i). Accordingly, with 
all the proposed changes, Exchange Rule 2616 (a)(2)(ii) will provide as 
follows:

    (ii) For purposes of paragraph (i) above.

    Next, the Exchange proposes to amend proposed renumbered 
subparagraph (e)(2)of Exchange Rule 2622 to replace certain internal 
cross references to other subparagraphs of Exchange Rule 2622 in light 
of the hierarchical heading changes described above. In particular, the 
Exchange proposes to amend the cross references contained in proposed 
renumbered Exchange Rule 2622(e)(2) that are to subparagraphs 
(e)(1)(A)-(D) to now be to subparagraphs (e)(1)(i)-(iv). Accordingly, 
with all the proposed changes, Exchange Rule 2622(e)(2) will provide as 
follows:

    (2) To the extent that an Equity Member participating in a MWCB 
test is unable to receive and process any of the messages identified 
in paragraph (e)(1)(i)-(iv) of this Rule, its attestation should 
notify the Exchange which messages it was unable to process and, if 
known, why.

    Next, the Exchange proposes to amend proposed renumbered 
subparagraph (h)(2)(i)(A)5.b. of Exchange Rule 2622 to replace certain 
internal cross references to another subparagraph of Exchange Rule 2622 
in light of the hierarchical heading changes described above. In 
particular, the Exchange proposes to amend the cross references 
contained in proposed renumbered Exchange Rule 2622 (h)(2)(i)(A)5.b. 
that are to subparagraph (e) to now be to subparagraph 5. Additionally, 
the Exchange proposes to amend proposed renumbered subparagraph 
(h)(2)(i)(A)5.b. of Exchange Rule 2622 to replace a certain internal 
cross reference to another rule in light of the hierarchical heading 
changes described above. In particular, the Exchange proposes to amend 
the cross reference contained in Exchange Rule 2622 (h)(2)(i)(A)5.b. 
that is to current Exchange Rule 2614(g)(1)(C), to now be to proposed 
renumbered Exchange Rule 2614(g)(1)(iii). Accordingly, with all the 
proposed changes, Exchange Rule 2622 (h)(2)(i)(A)5.b. will provide as 
follows:

    b. Limit-Priced Interest. Limit-priced interest will be 
cancelled if a User has entered instructions not to use the re-
pricing process under this paragraph 5. and such interest to buy 
(sell) is priced above (below) the Upper (Lower) Price Band. If re-
pricing is permitted based on a User's instructions, both 
displayable and non-displayable incoming limit-priced interest to 
buy (sell) that is priced above (below) the Upper (Lower) Price Band 
shall be re-priced to the Upper (Lower) Price Band. The System shall 
re-price resting limit-priced interest to buy (sell) to the Upper 
(Lower) Price Band if Price Bands move such that the price of 
resting limit-priced interest to buy (sell) would be above (below) 
the Upper (Lower) Price Band. If the Price Bands move again and a 
User has opted into the Exchange's optional multiple price sliding 
process, as described in Exchange Rule 2614(g)(1)(iii), the System 
shall reprice such limit-priced interest to the most aggressive 
permissible price up to the order's limit price. All other displayed 
and non-displayed limit interest repriced pursuant to this paragraph 
5. will remain at its new price unless the Price Bands move such 
that the price of resting limit-priced interest to buy (sell) would 
again be above (below) the Upper (Lower) Price Band.

    Next, the Exchange proposes to amend proposed renumbered 
subparagraph (c)(8)(ii)(A) of Exchange Rule 2614 to replace certain 
internal cross references to other rules in light of the hierarchical 
heading changes described above. In particular, the Exchange proposes 
to amend the cross references contained in Exchange Rule 2614 
(c)(8)(ii)(A) that are to current Exchange Rule 2616 (a)(2)(A)(i) and 
Rule 2616 (a)(2)(A)(ii) to now be to proposed renumbered Exchange Rule 
2616 (a)(2)(i)(A) and Rule 2616 (a)(2)(i)(B), respectively.
    Similarly, the Exchange proposes to amend subparagraph (a)(5) of 
Exchange Rule 2616 to replace a certain internal cross reference to 
another rule in light of the changes described above. In particular, 
the Exchange proposes to amend the cross reference contained in 
Exchange Rule 2616 (a)(5) that is to current Exchange Rule 2614 
(g)(3)(A), to now be to proposed renumbered Exchange Rule 2614 
(g)(3)(i).
    Similarly, the Exchange proposes to amend subparagraph (a)(1) of 
Exchange Rule 2617 to replace a certain internal cross reference to 
another rule in light of the changes described above. In particular, 
the Exchange proposes to amend the cross reference contained in 
Exchange Rule 2617 (a)(1) that is to current Exchange Rule 2614 
(g)(3)(A), to now be to proposed renumbered Exchange Rule 
2614(g)(3)(i).
    Similarly, the Exchange proposes to amend subparagraph (b)(2) of 
Exchange Rule 2617 to replace certain internal cross references to 
another rule in light of the changes described above. In particular, 
the Exchange proposes to amend the cross references contained in 
Exchange Rule 2617 (b)(2) that is to current Exchange Rule 2614 
(g)(3)(A), to now be to proposed renumbered Exchange Rule 2614 
(g)(3)(i).
    Similarly, the Exchange proposes to amend subparagraph 
(h)(2)(i)(A)5.d. of Exchange Rule 2622 to replace certain internal 
cross references to another rule in light of the changes described 
above. In particular, the Exchange proposes to amend the cross 
references contained in Exchange Rule 2622 (h)(2)(i)(A)5.d. that are to 
current Exchange Rule 2614(g)(3)(A), to now be to proposed renumbered 
Exchange Rule 2614(g)(3)(i).
    Similarly, the Exchange proposes to amend Exchange Rule 2623 to 
replace a certain internal cross reference to another rule in light of 
the changes described above. In particular, the Exchange proposes to 
amend the cross reference contained in Exchange Rule 2623 that is to 
current Exchange Rule 2614(g)(3)(A), to now be to proposed renumbered 
Exchange Rule 2614(g)(3)(i).
2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent 
with Section 6(b) of the Act \4\ in general, and furthers the 
objectives of Section 6(b)(1) of the Act \5\ in particular, in that 
they are designed to enforce compliance by the Exchange's Equity 
Members \6\ and persons associated with its Equity

[[Page 67838]]

Members, with the provisions of the rules of MIAX Pearl Equities. In 
particular, the Exchange believes that the proposed rule changes will 
provide greater clarity to Equity Members and the public regarding the 
Exchange's Rules by providing consistency within the Exchange's 
Rulebook. The proposed changes will ensure the hierarchical heading 
scheme aligns throughout the Exchange's Rulebook. The proposed changes 
will also make it easier for Equity Members to interpret the Exchange's 
Rulebook.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(1).
    \6\ The term ``Equity Member'' is a Member authorized by the 
Exchange to transact business on MIAX Pearl Equities. See Exchange 
Rule 1901.
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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 \7\ and because the rules of the Exchange apply to all MIAX 
Pearl Equities participants equally. The proposed rule change will have 
no impact on competition as it is not designed to address any 
competitive issue but rather is designed to remedy minor non-
substantive issues and provide added clarity to the rule text of 
Exchange Rules 2614, 2615, 2616, 2617, 2622, and 2623. 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 regarding the Exchange's functionality.
---------------------------------------------------------------------------

    \7\ The term ``System'' means the automated trading system used 
by the Exchange for the trading of securities. See Exchange Rule 
100.
---------------------------------------------------------------------------

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

    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, it has become effective 
pursuant to 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) \9\ 
thereunder.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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 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.
---------------------------------------------------------------------------

    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-PEARL-2023-47 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-PEARL-2023-47. 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-PEARL-2023-47 and should be 
submitted on or before October 23, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-21627 Filed 9-29-23; 8:45 am]
BILLING CODE 8011-01-P
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