Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Withdrawal of Proposed Rule Change To Amend Its Fee Schedule Related to Physical Port Fees, 75342-75343 [2023-24171]
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Federal Register / Vol. 88, No. 211 / Thursday, November 2, 2023 / Notices
disseminated following the conclusion
of a regulatory halt does not burden
inter-market competition because it
could improve confidence in the
Exchange’s overall execution quality by
preventing orders from being
unnecessarily canceled due to stale
reference prices.21 Further, this
proposed rule change may increase
confidence in the proper functioning of
the Exchange and contribute to
additional competition among trading
venues. Rather than impede
competition, the proposal is designed to
avoid the unwanted cancelation of
orders following a regulatory halt,
which, in turn, could enhance the
integrity of trading on the Exchange.
These proposals also would not burden
intra-market competition because it
would apply to all Equity Members
equally and all Equity Members’ orders
would not be subject to the applicable
protection where it would be based on
a stale reference price and result in an
unnecessary cancelation of the order, as
described here.
Rule Reorganization
The reorganization of Exchange Rules
2614(a)(1)(ix)(C) and 2618(b)(1) would
not impact competition because such
changes would not enhance or alter the
Exchange’s ability to compete, but
rather, make each rule easier to
comprehend, reducing the potential for
inadvertent investor confusion.
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
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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 22 and Rule 19b–4(f)(6) 23
thereunder.
21 See
supra note 16.
U.S.C. 78s(b)(3)(A).
23 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change 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.
22 15
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At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
PEARL–2023–58 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–2023–58. 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
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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–2023–58 and should be
submitted on or before November 24,
2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Dated: October 30, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–24270 Filed 11–1–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98806; File No. SR–
CboeBYX–2023–013]
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Notice of
Withdrawal of Proposed Rule Change
To Amend Its Fee Schedule Related to
Physical Port Fees
October 27, 2023.
On September 1, 2023, Cboe BYX
Exchange, Inc. (‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’),1 and
Rule 19b–4 thereunder,2 a proposed rule
change to amend certain connectivity
and port fees.
The proposed rule change was
immediately effective upon filing with
the Commission pursuant to Section
19(b)(3)(A) of the Act.3 The proposed
rule change was published for comment
in the Federal Register on September
20, 2023.4 On September 29, 2023,
pursuant to Section 19(b)(3)(C) of the
Act,5 the Commission: (1) temporarily
suspended the proposed rule change;
and (2) instituted proceedings under
Section 19(b)(2)(B) of the Act 6 to
determine whether to approve or
disapprove the proposed rule change.7
On October 25, 2023, the Exchange
24 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A). A proposed rule change
may take effect upon filing with the Commission if
it is designated by the exchange as ‘‘establishing or
changing a due, fee, or other charge imposed by the
self-regulatory organization on any person, whether
or not the person is a member of the self-regulatory
organization.’’ 15 U.S.C. 78s(b)(3)(A)(ii).
4 See Securities Exchange Act Release No. 98393
(September 14, 2023), 88 FR 64933.
5 15 U.S.C. 78s(b)(3)(C).
6 15 U.S.C. 78s(b)(2)(B).
7 See Securities Exchange Act Release No. 98647,
88 FR 68798 (October 4, 2023).
1 15
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Federal Register / Vol. 88, No. 211 / Thursday, November 2, 2023 / Notices
withdrew the proposed rule change
(SR–CboeBYX–2023–013).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023–24171 Filed 11–1–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98819; File No. 4–795]
Order Granting Broker-Dealers
Exemptive Relief, Pursuant to Section
36(a) and Rule 15c2–11(g) Under the
Securities Exchange Act of 1934, From
Rule 15c2–11 for Fixed-Income
Securities Sold in Compliance With the
Safe Harbor of Rule 144A Under the
Securities Act of 1933
October 30, 2023.
I. Introduction
The Securities and Exchange
Commission (‘‘Commission’’) adopted
17 CFR 240.15c2–11 (‘‘Rule 15c2–11’’)
under the Securities Exchange Act of
1934 (‘‘Exchange Act’’) in 1971.1 In
September 2020, the Commission
adopted amendments to Rule 15c2–11
to, among other things, provide greater
transparency to investors and other
market participants by requiring brokers
or dealers to have in their records
specified information about the issuer
and its security that is current and
publicly available before a broker-dealer
can begin quoting that security.2 Rule
15c2–11 governs the publication of
quotations for securities 3 in a quotation
medium other than a national securities
exchange, i.e., over-the-counter (‘‘OTC’’)
securities, other than exempted
8 17
CFR 200.30–3(a)(12).
or Resumption of Quotations by a
Broker or Dealer Who Lacks Certain Information,
Release No. 34–9310 (Sept. 13, 1971), 36 FR 18641
(Sept. 18, 1971).
2 See Publication or Submission of Quotations
Without Specified Information, Release No. 34–
89891 (Sept. 16, 2020), 85 FR 68124, 68125 (Oct.
27, 2020) (‘‘2020 Rule 15c2–11 Release’’).
3 The term ‘‘security’’ is defined under section
3(a)(10) of the Exchange Act and specifically
includes, among others, notes, bonds, debentures,
and certificates of deposit, which are commonly
known as fixed-income securities. 15 U.S.C.
78c(a)(10), (79). For purposes of this order, the term
‘‘fixed-income security’’ shall mean any note, bond,
debenture, certificate of deposit for a security,
certificate of deposit, or asset-backed security. See
id.
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securities 4 and municipal securities.5
Rule 15c2–11 sets forth certain
information review and recordkeeping
requirements for brokers and dealers to
initiate or resume quotations for
securities in the OTC market. Under 17
CFR 240.15c2–11(a)(1)(i), a broker or
dealer, before it may publish any
quotation for a security or, directly or
indirectly, submit any such quotation
for publication, in a quotation medium
other than a national securities
exchange, must obtain, have in its
records, and review key, basic
information regarding the subject
security and its issuer, as specified in 17
CFR 240.15c2–11(b) (‘‘paragraph (b)
information’’), that is ‘‘current’’ and
‘‘publicly available.’’ 6 In addition,
based upon a review of the applicable
paragraph (b) information, together with
any other supplemental documents and
information specified in 17 CFR
240.15c2–11(c), the broker or dealer
must have a reasonable basis under the
circumstances for believing that the
paragraph (b) information is accurate in
all material respects and is from a
reliable source.7 Further, the reviewing
broker or dealer must also preserve
documents and information that are
required to be obtained under the
applicable paragraphs (a), (b), and (c) of
Rule 15c2–11.8
Following the Commission’s 2020
adoption of amendments to Rule 15c2–
11, certain market participants stated
that Rule 15c2–11’s information review
and recordkeeping requirements should
not apply with regard to quotations for
fixed-income securities that are sold in
4 See 15 U.S.C. 78o(c)(2)(A). The term ‘‘exempted
security’’ includes, among others, certain
government securities, such as securities which are
direct obligations of, or obligations guaranteed as to
principal or interest by, the United States. See 15
U.S.C. 78c(a)(12), (42).
5 17 CFR 240.15c2–11(f)(4). The term ‘‘municipal
security’’ includes, among others, securities which
are direct obligations of, or obligations guaranteed
as to principal or interest by, a State or any political
subdivision thereof, or any agency or
instrumentality of a State or any political
subdivision thereof, or any municipal corporate
instrumentality of one or more States. See 15 U.S.C.
78c(a)(29).
6 See 17 CFR 240.15c2–11(a)(1)(i)(A), (B). The
terms ‘‘current’’ and ‘‘publicly available’’ are
defined in paragraphs (e)(2) and (e)(5) of Rule 15c2–
11, respectively, and have the same meaning in this
order.
7 See 17 CFR 240.15c2–11(a)(1)(i)(C). See also
2020 Rule 15c2–11 Release, 85 FR at 68125. These
rule amendments, among other things, expanded
the scope of Rule 15c2–11’s requirements for
obtaining and reviewing specified information.
Broker-dealers may publish initial quotations in
reliance on the publicly available determination of
a ‘‘qualified interdealer quotation system’’ that it
complied with the information review requirement
set forth in Rule 15c2–11(a)(2)(i) through (iii). See
17 CFR 15c2–11(a)(1)(ii).
8 See 17 CFR 240.15c2–11(d)(1)(i)(A). See also
2020 Rule 15c2–11 Release, 85 FR at 68131, 68162.
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75343
compliance with the safe harbor in 17
CFR 230.144A (‘‘Rule 144A’’) 9 under
the Securities Act of 1933 10 (‘‘Rule
144A fixed-income securities’’). In
particular, on November 22, 2022, the
National Association of Manufacturers
and the Kentucky Association of
Manufacturers submitted a petition to
the Commission pursuant to 17 CFR
201.192(a) of the Commission’s Rules of
Practice 11 for a rulemaking to amend
Rule 15c2–11, to expressly exempt from
Rule 15c2–11 Rule 144A fixed-income
securities (‘‘Petition’’). The Petition also
requested, in the alternative, that the
Commission expressly exempt Rule
144A fixed-income securities from Rule
15c2–11 pursuant to the exemptive
authority set forth in 17 CFR 240.15c2–
11(g).12
For the reasons discussed below, this
Order exempts Rule 144A fixed-income
securities from Rule 15c2–11, thus
effectively granting the alternative relief
sought in the Petition.
II. Discussion of Exemptive Relief
Section 36 of the Exchange Act
authorizes the Commission to,
conditionally or unconditionally,
exempt any person, security, or
transaction, or any class or classes of
persons, securities, or transactions, from
any provision or provisions of the
Exchange Act, or of any rule or
regulation thereunder, to the extent that
such exemption is necessary or
appropriate in the public interest, and is
consistent with the protection of
investors.13 Paragraph (g) of Rule 15c2–
11 under the Exchange Act similarly
provides that the Commission may,
conditionally or unconditionally,
exempt any person, security, or
transaction, or any class or classes of
persons, securities, or transactions, from
any provision or provisions of Rule
15c2–11 to the extent that such
exemption is necessary or appropriate
in the public interest, and is consistent
with the protection of investors.14
This exemptive relief is limited to
Rule 144A fixed-income securities.15
9 17 CFR 230.144A. See also No. 33–6862 (Apr.
23, 1990), 55 FR 17933, 17939 n.55 (Apr. 30, 1990)
(‘‘Rule 144A Adopting Release’’) (noting the
applicability of Rule 15c2–11 to Rule 144A
offerings).
10 15 U.S.C. 77a.
11 17 CFR 201.192(a).
12 See, e.g., Letter from Andrew Pincus to Vanessa
Countryman, Petition for Rulewriting and
Application for Exemption from Rule 15c2–11
(Nov. 22, 2022), https://www.sec.gov/files/rules/
petitions/2022/petamend-rule-15c211-4795.pdf.
13 15 U.S.C. 78mm.
14 17 CFR 240.15c2–11(g).
15 The Petition was limited to Rule 144A fixedincome securities and expressly excluded equity
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]]>Agencies
[Federal Register Volume 88, Number 211 (Thursday, November 2, 2023)]
[Notices]
[Pages 75342-75343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-24171]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98806; File No. SR-CboeBYX-2023-013]
Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of
Withdrawal of Proposed Rule Change To Amend Its Fee Schedule Related to
Physical Port Fees
October 27, 2023.
On September 1, 2023, Cboe BYX Exchange, Inc. (``Exchange'') filed
with the Securities and Exchange Commission (``Commission''), pursuant
to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
amend certain connectivity and port fees.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
The proposed rule change was immediately effective upon filing with
the Commission pursuant to Section 19(b)(3)(A) of the Act.\3\ The
proposed rule change was published for comment in the Federal Register
on September 20, 2023.\4\ On September 29, 2023, pursuant to Section
19(b)(3)(C) of the Act,\5\ the Commission: (1) temporarily suspended
the proposed rule change; and (2) instituted proceedings under Section
19(b)(2)(B) of the Act \6\ to determine whether to approve or
disapprove the proposed rule change.\7\ On October 25, 2023, the
Exchange
[[Page 75343]]
withdrew the proposed rule change (SR-CboeBYX-2023-013).
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\3\ 15 U.S.C. 78s(b)(3)(A). A proposed rule change may take
effect upon filing with the Commission if it is designated by the
exchange as ``establishing or changing a due, fee, or other charge
imposed by the self-regulatory organization on any person, whether
or not the person is a member of the self-regulatory organization.''
15 U.S.C. 78s(b)(3)(A)(ii).
\4\ See Securities Exchange Act Release No. 98393 (September 14,
2023), 88 FR 64933.
\5\ 15 U.S.C. 78s(b)(3)(C).
\6\ 15 U.S.C. 78s(b)(2)(B).
\7\ See Securities Exchange Act Release No. 98647, 88 FR 68798
(October 4, 2023).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-24171 Filed 11-1-23; 8:45 am]
BILLING CODE 8011-01-P
