Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Designation of a Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Provide Relief Relating to Specified Option Transactions Under FINRA Rule 4210 (Margin Requirements), 2659 [2024-00631]

Download as PDF Federal Register / Vol. 89, No. 10 / Tuesday, January 16, 2024 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–99304; File No. SR–FINRA– 2023–010] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Designation of a Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Provide Relief Relating to Specified Option Transactions Under FINRA Rule 4210 (Margin Requirements) January 9, 2024. On June 30, 2023, the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities and Exchange Act of 1934 (‘‘Exchange Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to amend FINRA Rule 4210 (Margin Requirements) to provide margin relief for specified index option transactions, known as ‘‘protected options,’’ and to make other minor conforming revisions with regard to the margin relief. The proposed rule change was published for comment in the Federal Register on July 19, 2023.3 On August 31, 2023, FINRA extended the time period in which the Commission must approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to approve or disapprove the proposed rule change to October 17, 2023.4 On September 28, 2023, the Commission instituted proceedings to determine whether to approve or disapprove the proposed rule change.5 Section 19(b)(2) of the Exchange Act 6 provides that, after initiating proceedings, the Commission shall issue an order approving or disapproving the proposed rule change not later than 180 days after the date of publication of notice of filing of the proposed rule change. The Commission may extend the period for issuing an order approving or disapproving the proposed rule change, however, by not more than 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Exchange Act Release No. 97898 (Jul. 13, 2023), 88 FR 46204. 4 See Letter from Adam Arkel, Associate General Counsel, FINRA, to Sheila Swartz, Division of Trading and Markets, Commission (Aug. 31, 2023). 5 See Exchange Act Release No. 34–98628 (Sep. 28, 2023), 88 FR 68855 (Oct. 4, 2023). All comments received on the proposed rule change are available at https://www.sec.gov/comments/sr-finra-2023010/srfinra2023010.htm. 6 15 U.S.C. 78s(b)(2). ddrumheller on DSK120RN23PROD with NOTICES1 2 17 VerDate Sep<11>2014 18:57 Jan 12, 2024 Jkt 262001 60 days if the Commission determines that a longer period is appropriate and publishes reasons for such determination. The proposed rule change was published for notice and comment in the Federal Register on July 19, 2023.7 The 180th day after publication of the proposed rule change is January 15, 2024. The Commission is extending the time period for approving or disapproving the proposed rule change for an additional 60 days. The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Exchange Act,8 designates March 15, 2024, as the date by which the Commission shall either approve or disapprove the proposed rule change (File No. SR–FINRA–2023– 010). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2024–00631 Filed 1–12–24; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–99302; File No. SR– CboeEDGX–2024–001] Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule January 9, 2024. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on January 2, 2024, Cboe EDGX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) filed with the Securities and Exchange Commission (the ‘‘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. 7 See supra note 3 and accompanying text. U.S.C. 78s(b)(2). 9 17 CFR 200.30–3(a)(57). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 8 15 PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 2659 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Cboe EDGX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) proposes to amend its Fee Schedule. The text of the proposed rule change is provided in Exhibit 5. The text of the proposed rule change is also available on the Exchange’s website (https://markets.cboe.com/us/ options/regulation/rule_filings/edgx/), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Fee Schedule, effective January 2, 2024. The Exchange first notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive or incentives to be insufficient. More specifically, the Exchange is only one of 17 options venues to which market participants may direct their order flow. Based on publicly available information, no single options exchange has more than 12% of the market share.3 Thus, in such a lowconcentrated and highly competitive market, no single options exchange, including the Exchange, possesses significant pricing power in the execution of option order flow. The Exchange believes that the ever-shifting market share among the exchanges from month to month demonstrates that market participants can shift order flow or discontinue to reduce use of certain categories of products, in response to fee 3 See Cboe Global Markets U.S. Options Market Monthly Volume Summary (December 19, 2023), available at https://markets.cboe.com/us/options/ market_statistics/. E:\FR\FM\16JAN1.SGM 16JAN1

Agencies

[Federal Register Volume 89, Number 10 (Tuesday, January 16, 2024)]
[Notices]
[Page 2659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00631]



[[Page 2659]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99304; File No. SR-FINRA-2023-010]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Designation of a Longer Period for 
Commission Action on Proceedings To Determine Whether To Approve or 
Disapprove a Proposed Rule Change To Provide Relief Relating to 
Specified Option Transactions Under FINRA Rule 4210 (Margin 
Requirements)

January 9, 2024.
    On June 30, 2023, the Financial Industry Regulatory Authority, Inc. 
(``FINRA'') filed with the Securities and Exchange Commission (``SEC'' 
or ``Commission''), pursuant to Section 19(b)(1) of the Securities and 
Exchange Act of 1934 (``Exchange Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to amend FINRA Rule 4210 (Margin 
Requirements) to provide margin relief for specified index option 
transactions, known as ``protected options,'' and to make other minor 
conforming revisions with regard to the margin relief. The proposed 
rule change was published for comment in the Federal Register on July 
19, 2023.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Exchange Act Release No. 97898 (Jul. 13, 2023), 88 FR 
46204.
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    On August 31, 2023, FINRA extended the time period in which the 
Commission must approve the proposed rule change, disapprove the 
proposed rule change, or institute proceedings to determine whether to 
approve or disapprove the proposed rule change to October 17, 2023.\4\ 
On September 28, 2023, the Commission instituted proceedings to 
determine whether to approve or disapprove the proposed rule change.\5\
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    \4\ See Letter from Adam Arkel, Associate General Counsel, 
FINRA, to Sheila Swartz, Division of Trading and Markets, Commission 
(Aug. 31, 2023).
    \5\ See Exchange Act Release No. 34-98628 (Sep. 28, 2023), 88 FR 
68855 (Oct. 4, 2023). All comments received on the proposed rule 
change are available at https://www.sec.gov/comments/sr-finra-2023-010/srfinra2023010.htm.
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    Section 19(b)(2) of the Exchange Act \6\ provides that, after 
initiating proceedings, the Commission shall issue an order approving 
or disapproving the proposed rule change not later than 180 days after 
the date of publication of notice of filing of the proposed rule 
change. The Commission may extend the period for issuing an order 
approving or disapproving the proposed rule change, however, by not 
more than 60 days if the Commission determines that a longer period is 
appropriate and publishes reasons for such determination. The proposed 
rule change was published for notice and comment in the Federal 
Register on July 19, 2023.\7\ The 180th day after publication of the 
proposed rule change is January 15, 2024. The Commission is extending 
the time period for approving or disapproving the proposed rule change 
for an additional 60 days.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(2).
    \7\ See supra note 3 and accompanying text.
---------------------------------------------------------------------------

    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed 
rule change so that it has sufficient time to consider the proposed 
rule change and the issues raised therein. Accordingly, the Commission, 
pursuant to Section 19(b)(2) of the Exchange Act,\8\ designates March 
15, 2024, as the date by which the Commission shall either approve or 
disapprove the proposed rule change (File No. SR-FINRA-2023-010).
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    \8\ 15 U.S.C. 78s(b)(2).
    \9\ 17 CFR 200.30-3(a)(57).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-00631 Filed 1-12-24; 8:45 am]
BILLING CODE 8011-01-P
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