Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 21.17, 4645-4648 [2024-01306]
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Federal Register / Vol. 89, No. 16 / Wednesday, January 24, 2024 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–01304 Filed 1–23–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 3235–0346, File No. 270–305]
ddrumheller on DSK120RN23PROD with NOTICES1
Proposed Collection; Comment
Request; Extension: Rule 34b–1
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) the Securities
and Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Rule 34b–1 under the Investment
Company Act (17 CFR 270.34b–1)
governs sales material that accompanies
or follows the delivery of a statutory
prospectus (‘‘sales literature’’). Rule
34b–1 deems to be materially
misleading any investment company
(‘‘fund’’) sales literature required to be
filed with the Securities and Exchange
Commission (‘‘Commission’’) by Section
24(b) of the Investment Company Act
(15 U.S.C. 80a–24(b)) that includes
performance data, unless the sales
literature also includes the appropriate
uniformly computed data and the
legend disclosure required in
investment company advertisements by
rule 482 under the Securities Act of
1933 (17 CFR 230.482) (‘‘rule 482’’).
Additionally, rule 34b–1 deems to be
materially misleading any fund sales
literature intended for distribution to
prospective investors that includes fee
and expense information, unless that
sales literature complies with the
disclosure and timeliness requirements
of rule 482.1 These requirements are
designed to prevent misleading
performance claims by funds and to
19 17
CFR 200.30–3(a)(12).
provisions of rule 34b–1 apply to any
registered investment company or business
development company advertisement, pamphlet,
circular, form letter, or other sales literature
addressed to or intended for distribution to
prospective investors in connection with a public
offering. See rule 34b–1(c).
1 These
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enable investors to make meaningful
comparisons among funds.
The Commission estimates that on
average approximately 8,289 2 responses
that include the information required by
rule 34b–1 each year. The burden
resulting from the collection of
information requirements of rule 34b–1
is estimated to be 11 hours per
response.3 The total hourly burden for
rule 34b–1 is approximately 91,179
hours per year in the aggregate.4
The collection of information under
rule 34b–1 is mandatory. The
information provided under rule 34b–1
is not kept confidential. The
Commission may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid OMB
control number.
Written comments are invited on: (a)
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimate of the burden of the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
by March 25, 2024.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: David Bottom, Chief Information
Officer, Securities and Exchange
Commission, c/o John Pezzullo, 100 F
Street NE, Washington, DC 20549 or
send an email to: PRA_Mailbox@
sec.gov.
2 The estimated average number of responses to
rule 34b–1 for the two-year period from October 1,
2021, to November 30, 2023, comprises 7,912 filings
submitted to FINRA and 377 filings submitted to
the Commission.
3 Previous PRA extensions for rule 34b–1
assumed an estimated annual burden of 6 hours per
response in complying with paragraphs a and b of
rule 34b–1, 3 hours per response in complying with
the fee and expense figure disclosure requirements
of paragraph c, and 2 hours for the fee waivers/
expense reimbursement arrangements disclosure
requirements of paragraph c, while estimating that
only 96% of relevant responses would need to
comply with all of the paragraph c requirements.
For purposes of this extension, we are assuming
that 100% of the responsive filings identified will
incur burdens for all of the rule’s requirements,
such that a total of 11 hours per response per year
(6 + 3 + 2 = 11). We recognize that this might
overstate the total burden.
4 8,289 responses × 11 hours per response =
91,179 hours.
(additions are italicized; deletions are
[bracketed])
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Dated: January 19, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–01349 Filed 1–23–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99387; File No. SR–
CboeBZX–2024–005]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Rule
21.17
January 18, 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 3,
2024, Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) 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
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to section 19(b)(3)(A)(iii) of the
Act 3 and Rule 19b–4(f)(6) thereunder.4
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) proposes to
amend Rule 21.17. The text of the
proposed rule change is provided
below.
*
*
*
*
*
Rules of Cboe BZX Exchange, Inc.
*
*
*
*
*
Rule 21.17. Additional Price Protection
Mechanisms and Risk Controls
The System’s acceptance and execution of
orders, quotes, and bulk messages, as
applicable, are subject to the price protection
mechanisms and risk controls in Rule 21.16,
this Rule 21.17 and as otherwise set forth in
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
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Federal Register / Vol. 89, No. 16 / Wednesday, January 24, 2024 / Notices
the Rules. All numeric values established by
the Exchange pursuant to this Rule will be
maintained by the Exchange in publicly
available specifications and/or published in
a Regulatory Circular. Unless otherwise
specified the price protections set forth in
this Rule, including the numeric values
established by the Exchange, may not be
disabled or adjusted. The Exchange may
share any of a User’s risk settings with the
Clearing Member that clears transactions on
behalf of the User.
(a)–(c) No change.
(d) Drill-Through Price Protection.
(1)–(2) No change.
(3) The System enters a market order with
a Time-in Force of Day or limit order with
a Time-in-Force of Day, GTC, or GTD (or
unexecuted portion) not executed pursuant
to subparagraph (1) in the BZX Options Book
with a displayed price equal to the DrillThrough Price, unless the terms of the order
instruct otherwise.
(A)–(G) No change.
([H]4) This protection does not apply
to bulk messages or ISOs.
*
*
*
*
*
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/bzx/), 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.
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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
Rule 21.17. Specifically, the Exchange
proposes to exclude Intermarket Sweep
Orders (‘‘ISOs’’) from its drill-through
protection. Pursuant to Rule 21.17(d)(1),
if a buy (sell) order enters the book at
the conclusion of the opening auction
process or would execute or post to the
book when it enters the book, the
Exchange’s system executes the order
up to an Exchange-determined buffer
amount (determined on a class and
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premium basis) above (below) the offer
(bid) limit of the Opening Collar 5 or the
National Best Offer (‘‘NBO’’) (National
Best Bid (‘‘NBB’’)) that existed at the
time of order entry, respectively (the
‘‘drill-through price’’). The System
cancels or rejects any market order with
a time-in-force of immediate-or-cancel
(‘‘IOC’’) (or unexecuted portion or limit
order with time-in-force of IOC or fillor-kill (‘‘FOK’’) (or unexecuted portion
not executed pursuant to the previous
sentence.6 Rule 21.17(d)(3) establishes
an iterative drill-through process,
whereby the Exchange permits orders to
rest in the book for multiple time
periods and at more aggressive
displayed prices during each time
period. Specifically, for a market order
with a time-in-force of day or limit order
with a time-in-force of day, good-tilcancelled (‘‘GTC’’), or good-til-gate
(‘‘GTD’’) (or unexecuted portion), the
Exchange system enters the order in the
book with a displayed price equal to the
drill-through price (unless the terms of
the order instruct otherwise). The order
(or unexecuted portion) will rest in the
book at the drill-through price for the
duration of consecutive time periods
(the Exchange determines on a class-byclass basis the length of the time period
in milliseconds, which may not exceed
three seconds), which are referred to as
‘‘iterations.’’ Following the end of each
period, the Exchange system adds (if a
buy order) or subtracts (if a sell order)
one buffer amount (the Exchange
determines the buffer amount on a classby-class basis) to the drill-through price
displayed during the immediately
preceding period (each new price
becomes the ‘‘drill-through price’’). The
order (or unexecuted portion) rests in
the book at that new drill-through price
for the duration of the subsequent
period. The Exchange system applies a
timestamp to the order (or unexecuted
portion) based on the time it enters or
is re-priced in the book for priority
reasons. The order continues through
this iterative process until the earliest of
the following to occur: (a) the order
fully executes; (b) the user cancels the
order; and (c) the buy (sell) order’s limit
price equals or is less (greater) than the
drill-through price at any time during
application of the drill-through
mechanism, in which case the order
rests in the book at its limit price,
subject to a user’s instructions.
Currently, the drill-through protection
applies to ISOs. An ISO is a limit order
for an options series that meets the
following requirements: (1) when routed
5 See Rule 21.7(a) for the definition of Opening
Collars.
6 See Rule 21.17(d)(2).
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to an Eligible Exchange,7 the order is
identified as an ISO; and (2)
simultaneously with the routing of the
order, one or more additional ISOs, as
necessary, are routed to execute against
the full displayed size of any Protected
Bid, in the case of a limit order to sell,
or any Protected Offer, in the case of a
limit order to buy, for the options series
with a price that is superior to the limit
price of the ISO, with such additional
orders also marked as ISOs.8
The Exchange proposes to exclude
ISOs from the drill-through protection.9
The primary purpose of the drillthrough price protection is to prevent
orders from executing at prices ‘‘too far
away’’ from the market when they enter
the book for potential execution. This is
inconsistent with the primary purpose
of ISOs, which is to permit orders to
trade at prices outside of the market.
The Exchange believes excluding ISOs
from the drill-through is consistent with
the purpose of each type of
functionality.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
7 An ‘‘Eligible Exchange’’ means a national
securities exchange registered with the SEC in
accordance with section 6(a) of the Securities
Exchange Act of 1934 (the ‘‘Act’’) that: (a) is a
Participant Exchange in OCC (as that term is
defined in Section VII of the OCC by-laws); (b) is
a party to the OPRA Plan (as that term is described
in Section I of the OPRA Plan); and (c) if the
national securities exchange chooses not to become
a party to this Plan, is a participant in another plan
approved by the Securities and Exchange
Commission (the ‘‘Commission’’) providing for
comparable Trade-Through and Locked and
Crossed Market protection. The term ‘‘TradeThrough’’ means a transaction in an options series
at a price that is lower than a Protected Bid or
higher than a Protected Offer. A ‘‘Protected Bid’’ or
‘‘Protected Offer’’ means a bid or offer in an options
series, respectively, that (a) is disseminated
pursuant to the OPRA Plan; and (b) is the best bid
or best offer, respectively, displayed by an Eligible
Exchange. A ‘‘Locked Market’’ means a quoted
market in which a Protected Bid is equal to a
Protected Offer in a series of an options class, and
a ‘‘Crossed Market’’ means a quoted market in
which a Protected bid is higher than a Protected
Offer in a series of an options class. See Rule
27.1(a)(5), (7), (10), (18), and (22).
8 See Rules 21.1(d)(9) and 27.1(a)(9).
9 See proposed Rule 21.17(d)(4). As set forth in
current Rule 21.17(d)(3)(H), the drill-through
protection does not apply to bulk messages. The
proposed rule change moves this current exclusion
to proposed Rule 21.17(d)(4) so that all orders and
quotes that are excluded from the drill-through
protection are maintained in the same rule
provision, and the Exchange believes proposed
subparagraph (4) is a more appropriate place for
listing excluded orders and quotes. This
nonsubstantive change regarding the exclusion of
bulk messages from the drill-through protection has
no impact on current behavior and merely moves
the exclusion to a different subparagraph.
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Federal Register / Vol. 89, No. 16 / Wednesday, January 24, 2024 / Notices
and, in particular, the requirements of
section 6(b) of the Act.10 Specifically,
the Exchange believes the proposed rule
change is consistent with the section
6(b)(5) 11 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Additionally, the Exchange believes the
proposed rule change is consistent with
the section 6(b)(5) 12 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the Exchange believes
the proposed rule change will promote
just and equitable principles of trade,
remove impediments to and perfect the
mechanism of a national market system,
and protect investors and the public
interest, because it will increase
instances in which ISOs receive
executions up to their limit prices,
including outside of the market prices
when the ISOs were submitted to the
Exchange, which the Exchange believes
is consistent with the expectations of
users that submit those orders. As noted
above, the primary purpose of ISOs is to
permit orders to trade at prices outside
of the market. The primary purpose of
the drill-through price protection is to
prevent orders from executing at prices
‘‘too far away’’ from the market when
they enter the book for potential
execution. The Exchange believes
excluding ISOs from the drill-through is
consistent with the purpose of each type
of functionality. Therefore, the
Exchange believes the proposed rule
change will enhance the Exchange
system by aligning its drill-through
protection with the intended purpose of
ISOs.13 The Exchange believes the
proposed rule change may ultimately
result in additional executions
consistent with the expectations of users
that submit ISOs, which ultimately
benefits investors. The Exchange further
believes the proposed rule change is not
designed to permit unfair
discrimination between customers,
10 15
11 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
12 Id.
13 The Exchange notes ISOs will continue to
receive price protection, such as from the limit
order fat finger check. See Rule 21.17(b).
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issuers, brokers, or dealers, as it will
apply to ISOs of all users.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe that the
proposed rule change will impose any
burden on intramarket competition that
is not necessary or appropriate in
furtherance of the purposes of the Act,
because it will apply in the same
manner to ISOs of all Members. The
Exchange does not believe that the
proposed rule change will impose any
burden on intermarket competition that
is not necessary or appropriate in
furtherance of the purposes of the Act,
because it relates solely to the
application of one of the Exchange’s
price protection mechanisms to ISOs.
Additionally, the proposed rule change
substantively identical to a recent rule
change by Cboe EDGX Exchange, Inc.
(‘‘EDGX Options’’).14 The Exchange also
notes at least one other options
exchange excludes ISOs from certain of
its price protection measures.15
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not:
A. significantly affect the protection
of investors or the public interest;
B. impose any significant burden on
competition; and
C. become operative for 30 days from
the date on which it was filed, or such
shorter time as the Commission may
designate, it has become effective
pursuant to section 19(b)(3)(A) of the
Act 16 and Rule 19b–4(f)(6) 17
thereunder.18 At any time within 60
14 See SR–CboeEDGX–2023–082 (December 21,
2023).
15 See Miami International Securities Exchange,
LLC (‘‘MIAX’’) Rule 515(c)(1) (ISOs excluded from
MIAX’s price protection on non-market maker
orders in non-proprietary products, which prevents
orders from executing more than a specified
number of increments away from the national best
bid or offer (‘‘NBBO’’) at the time the order is
received).
16 15 U.S.C. 78s(b)(3)(A).
17 17 CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
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4647
days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–
CboeBZX–2024–005 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–CboeBZX–2024–005. 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
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.
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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–CboeBZX–2024–005 and should be
submitted on or before February 14,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–01306 Filed 1–23–24; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice: 12311]
Notification of Meetings of the United
States-Peru Environmental Affairs
Council, Environmental Cooperation
Commission, and Sub-Committee on
Forest Sector Governance
Department of State.
ACTION: Notice of meetings and requests
for comments; invitation to public
session.
AGENCY:
The U.S. Department of State
and the Office of the United States
Trade Representative (USTR) are
providing notice that on February 13–
14, 2024, the United States and Peru
will hold meetings of the Environmental
Affairs Council (the ‘‘Council’’), the
Environmental Cooperation
Commission (the ‘‘Commission’’), and
the Sub-Committee on Forest Sector
Governance (the ‘‘Sub-Committee’’). The
public sessions for the Council,
Commission, and Sub-Committee
meetings will be held on February 14,
2024. All meetings will take place in
Lima, Peru. The purpose of the meetings
is to review the implementation of
Chapter 18 (Environment) of the United
States-Peru Trade Promotion Agreement
(PTPA); the PTPA Annex on Forest
Sector Governance (Annex 18.3.4); and
the United States-Peru Environmental
Cooperation Agreement (ECA).
All interested persons are invited to
attend the public session, and to submit
written comments or questions
regarding the implementation of
Chapter 18, Annex 18.3.4, and the ECA.
Specifically, the public may submit
ddrumheller on DSK120RN23PROD with NOTICES1
SUMMARY:
19 17
CFR 200.30–3(a)(12).
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input for the Council meeting agenda;
views and comments on the issues the
public considers relevant to the
Council’s work; and views with respect
to the forthcoming update of the 2024–
2027 United States-Peru Environmental
Cooperation Work Program. In
preparing comments, submitters are
encouraged to refer to Chapter 18 of the
PTPA, including Annex 18.3.4, and the
ECA (available at https://www.state.gov/
key-topics-office-of-environmentalquality-and-transboundary-issues/
current-trade-agreements-withenvironmental-chapters/#peru).
Instructions on how to submit
comments are under the heading
‘‘Comments and RSVP’’.
DATES: The public sessions of the
Council, Commission, and SubCommittee meetings will be held on
February 14, 2024. Confirmation of
attendance and comments or
suggestions are requested in writing no
later than February 9, 2024.
ADDRESSES: Please contact Elizabeth
Linske and Sigrid Simpson for the
location of this meeting.
Comments and RSVP: Written
comments or suggestions should be
submitted to both:
(1) Elizabeth Linske, U.S. Department
of State, Bureau of Oceans and
International Environmental and
Scientific Affairs, Office of
Environmental Quality, by email at
LinskeE@state.gov with the subject line
‘‘UNITED STATES-PERU EAC/ECC
MEETING’’ and
(2) Sigrid Simpson, Office of the
United States Trade Representative,
Office of Environment and Natural
Resources, by email at
Sigrid.A.Simpson@ustr.eop.gov with the
subject line ‘‘UNITED STATES-PERU
EAC/ECC MEETING.’’
In your email, please include your full
name and affiliation.
If you have access to the internet, you
can view and comment on this notice by
going to: https://www.regulations.gov/
#!home and searching for docket
number DOS–2024–0002.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Linske (telephone: 202–344–
9852; email: LinskeE@state.gov) or
Sigrid Simpson (telephone: 202–881–
6592; email: Sigrid.A.Simpson@
ustr.eop.gov).
SUPPLEMENTARY INFORMATION: The PTPA
entered into force on February 1, 2009.
Article 18.6 of the PTPA establishes an
Environmental Affairs Council, which is
required to meet once a year unless
otherwise agreed by the Parties to
discuss the implementation of Chapter
18. Annex 18.3.4 to the PTPA
establishes a Sub-Committee on Forest
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
Sector Governance. The Sub-Committee
is a specific forum for the Parties to
share views and information on any
matter arising under the PTPA Annex
on Forest Sector Governance. The ECA
entered into force on August 23, 2009.
Article III of the ECA establishes an
Environmental Cooperation
Commission and makes the Commission
responsible for developing a Work
Program. Article 18.6 of the PTPA and
Article VI of the ECA provide that
meetings of the Council and
Commission respectively include a
public session, unless the Parties
otherwise agree. At its first meeting, the
Sub-Committee on Forest Sector
Governance committed to hold a public
session after each Sub-Committee
meeting.
Scott B. Ticknor,
Director, Office of Environmental Quality,
Department of State.
[FR Doc. 2024–01299 Filed 1–23–24; 8:45 am]
BILLING CODE 4710–09–P
SURFACE TRANSPORTATION BOARD
[Docket No. EP 290 (Sub–No. 4)]
Railroad Cost Recovery Procedures—
Productivity Adjustment
Surface Transportation Board.
Presentation of the Board’s
calculation for the change in railroad
productivity for the 2018–2022
averaging period.
AGENCY:
ACTION:
In a decision served on
January 19, 2024, the Board proposed to
adopt 1.011 (1.1% per year) as the
measure of average (geometric mean)
change in railroad productivity for the
2018–2022 (five-year) period. The
Board’s January 19, 2024 decision stated
that comments may be filed addressing
any perceived data and computational
errors in the Board’s calculation. The
decision also stated that, unless a
further order is issued postponing the
effective date, the decision will take
effect on March 1, 2024.
DATES: Comments are due by February
5, 2024.
ADDRESSES: Comments may be filed via
e-filing on the Board’s website at
www.stb.gov. Comments must be served
on all parties appearing on the service
list.
FOR FURTHER INFORMATION CONTACT:
Pedro Ramirez at (202) 245–0333. If you
require accommodation under the
Americans with Disabilities Act, please
call (202) 245–0245.
SUPPLEMENTARY INFORMATION:
Additional information is contained in
SUMMARY:
E:\FR\FM\24JAN1.SGM
24JAN1
]]>Agencies
[Federal Register Volume 89, Number 16 (Wednesday, January 24, 2024)]
[Notices]
[Pages 4645-4648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01306]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99387; File No. SR-CboeBZX-2024-005]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 21.17
January 18, 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 3, 2024, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') 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
Exchange filed the proposal as a ``non-controversial'' proposed rule
change pursuant to section 19(b)(3)(A)(iii) of the Act \3\ and Rule
19b-4(f)(6) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') proposes to
amend Rule 21.17. The text of the proposed rule change is provided
below.
(additions are italicized; deletions are [bracketed])
* * * * *
Rules of Cboe BZX Exchange, Inc.
* * * * *
Rule 21.17. Additional Price Protection Mechanisms and Risk Controls
The System's acceptance and execution of orders, quotes, and
bulk messages, as applicable, are subject to the price protection
mechanisms and risk controls in Rule 21.16, this Rule 21.17 and as
otherwise set forth in
[[Page 4646]]
the Rules. All numeric values established by the Exchange pursuant
to this Rule will be maintained by the Exchange in publicly
available specifications and/or published in a Regulatory Circular.
Unless otherwise specified the price protections set forth in this
Rule, including the numeric values established by the Exchange, may
not be disabled or adjusted. The Exchange may share any of a User's
risk settings with the Clearing Member that clears transactions on
behalf of the User.
(a)-(c) No change.
(d) Drill-Through Price Protection.
(1)-(2) No change.
(3) The System enters a market order with a Time-in Force of Day
or limit order with a Time-in-Force of Day, GTC, or GTD (or
unexecuted portion) not executed pursuant to subparagraph (1) in the
BZX Options Book with a displayed price equal to the Drill-Through
Price, unless the terms of the order instruct otherwise.
(A)-(G) No change.
([H]4) This protection does not apply to bulk messages or ISOs.
* * * * *
The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), 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 Rule 21.17. Specifically, the
Exchange proposes to exclude Intermarket Sweep Orders (``ISOs'') from
its drill-through protection. Pursuant to Rule 21.17(d)(1), if a buy
(sell) order enters the book at the conclusion of the opening auction
process or would execute or post to the book when it enters the book,
the Exchange's system executes the order up to an Exchange-determined
buffer amount (determined on a class and premium basis) above (below)
the offer (bid) limit of the Opening Collar \5\ or the National Best
Offer (``NBO'') (National Best Bid (``NBB'')) that existed at the time
of order entry, respectively (the ``drill-through price''). The System
cancels or rejects any market order with a time-in-force of immediate-
or-cancel (``IOC'') (or unexecuted portion or limit order with time-in-
force of IOC or fill-or-kill (``FOK'') (or unexecuted portion not
executed pursuant to the previous sentence.\6\ Rule 21.17(d)(3)
establishes an iterative drill-through process, whereby the Exchange
permits orders to rest in the book for multiple time periods and at
more aggressive displayed prices during each time period. Specifically,
for a market order with a time-in-force of day or limit order with a
time-in-force of day, good-til-cancelled (``GTC''), or good-til-gate
(``GTD'') (or unexecuted portion), the Exchange system enters the order
in the book with a displayed price equal to the drill-through price
(unless the terms of the order instruct otherwise). The order (or
unexecuted portion) will rest in the book at the drill-through price
for the duration of consecutive time periods (the Exchange determines
on a class-by-class basis the length of the time period in
milliseconds, which may not exceed three seconds), which are referred
to as ``iterations.'' Following the end of each period, the Exchange
system adds (if a buy order) or subtracts (if a sell order) one buffer
amount (the Exchange determines the buffer amount on a class-by-class
basis) to the drill-through price displayed during the immediately
preceding period (each new price becomes the ``drill-through price'').
The order (or unexecuted portion) rests in the book at that new drill-
through price for the duration of the subsequent period. The Exchange
system applies a timestamp to the order (or unexecuted portion) based
on the time it enters or is re-priced in the book for priority reasons.
The order continues through this iterative process until the earliest
of the following to occur: (a) the order fully executes; (b) the user
cancels the order; and (c) the buy (sell) order's limit price equals or
is less (greater) than the drill-through price at any time during
application of the drill-through mechanism, in which case the order
rests in the book at its limit price, subject to a user's instructions.
---------------------------------------------------------------------------
\5\ See Rule 21.7(a) for the definition of Opening Collars.
\6\ See Rule 21.17(d)(2).
---------------------------------------------------------------------------
Currently, the drill-through protection applies to ISOs. An ISO is
a limit order for an options series that meets the following
requirements: (1) when routed to an Eligible Exchange,\7\ the order is
identified as an ISO; and (2) simultaneously with the routing of the
order, one or more additional ISOs, as necessary, are routed to execute
against the full displayed size of any Protected Bid, in the case of a
limit order to sell, or any Protected Offer, in the case of a limit
order to buy, for the options series with a price that is superior to
the limit price of the ISO, with such additional orders also marked as
ISOs.\8\
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\7\ An ``Eligible Exchange'' means a national securities
exchange registered with the SEC in accordance with section 6(a) of
the Securities Exchange Act of 1934 (the ``Act'') that: (a) is a
Participant Exchange in OCC (as that term is defined in Section VII
of the OCC by-laws); (b) is a party to the OPRA Plan (as that term
is described in Section I of the OPRA Plan); and (c) if the national
securities exchange chooses not to become a party to this Plan, is a
participant in another plan approved by the Securities and Exchange
Commission (the ``Commission'') providing for comparable Trade-
Through and Locked and Crossed Market protection. The term ``Trade-
Through'' means a transaction in an options series at a price that
is lower than a Protected Bid or higher than a Protected Offer. A
``Protected Bid'' or ``Protected Offer'' means a bid or offer in an
options series, respectively, that (a) is disseminated pursuant to
the OPRA Plan; and (b) is the best bid or best offer, respectively,
displayed by an Eligible Exchange. A ``Locked Market'' means a
quoted market in which a Protected Bid is equal to a Protected Offer
in a series of an options class, and a ``Crossed Market'' means a
quoted market in which a Protected bid is higher than a Protected
Offer in a series of an options class. See Rule 27.1(a)(5), (7),
(10), (18), and (22).
\8\ See Rules 21.1(d)(9) and 27.1(a)(9).
---------------------------------------------------------------------------
The Exchange proposes to exclude ISOs from the drill-through
protection.\9\ The primary purpose of the drill-through price
protection is to prevent orders from executing at prices ``too far
away'' from the market when they enter the book for potential
execution. This is inconsistent with the primary purpose of ISOs, which
is to permit orders to trade at prices outside of the market. The
Exchange believes excluding ISOs from the drill-through is consistent
with the purpose of each type of functionality.
---------------------------------------------------------------------------
\9\ See proposed Rule 21.17(d)(4). As set forth in current Rule
21.17(d)(3)(H), the drill-through protection does not apply to bulk
messages. The proposed rule change moves this current exclusion to
proposed Rule 21.17(d)(4) so that all orders and quotes that are
excluded from the drill-through protection are maintained in the
same rule provision, and the Exchange believes proposed subparagraph
(4) is a more appropriate place for listing excluded orders and
quotes. This nonsubstantive change regarding the exclusion of bulk
messages from the drill-through protection has no impact on current
behavior and merely moves the exclusion to a different subparagraph.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange
[[Page 4647]]
and, in particular, the requirements of section 6(b) of the Act.\10\
Specifically, the Exchange believes the proposed rule change is
consistent with the section 6(b)(5) \11\ requirements that the rules of
an exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the section 6(b)(5) \12\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ Id.
---------------------------------------------------------------------------
In particular, the Exchange believes the proposed rule change will
promote just and equitable principles of trade, remove impediments to
and perfect the mechanism of a national market system, and protect
investors and the public interest, because it will increase instances
in which ISOs receive executions up to their limit prices, including
outside of the market prices when the ISOs were submitted to the
Exchange, which the Exchange believes is consistent with the
expectations of users that submit those orders. As noted above, the
primary purpose of ISOs is to permit orders to trade at prices outside
of the market. The primary purpose of the drill-through price
protection is to prevent orders from executing at prices ``too far
away'' from the market when they enter the book for potential
execution. The Exchange believes excluding ISOs from the drill-through
is consistent with the purpose of each type of functionality.
Therefore, the Exchange believes the proposed rule change will enhance
the Exchange system by aligning its drill-through protection with the
intended purpose of ISOs.\13\ The Exchange believes the proposed rule
change may ultimately result in additional executions consistent with
the expectations of users that submit ISOs, which ultimately benefits
investors. The Exchange further believes the proposed rule change is
not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers, as it will apply to ISOs of all users.
---------------------------------------------------------------------------
\13\ The Exchange notes ISOs will continue to receive price
protection, such as from the limit order fat finger check. See Rule
21.17(b).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe that the proposed rule change will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act, because it will apply in the
same manner to ISOs of all Members. The Exchange does not believe that
the proposed rule change will impose any burden on intermarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act, because it relates solely to the application of
one of the Exchange's price protection mechanisms to ISOs.
Additionally, the proposed rule change substantively identical to a
recent rule change by Cboe EDGX Exchange, Inc. (``EDGX Options'').\14\
The Exchange also notes at least one other options exchange excludes
ISOs from certain of its price protection measures.\15\
---------------------------------------------------------------------------
\14\ See SR-CboeEDGX-2023-082 (December 21, 2023).
\15\ See Miami International Securities Exchange, LLC (``MIAX'')
Rule 515(c)(1) (ISOs excluded from MIAX's price protection on non-
market maker orders in non-proprietary products, which prevents
orders from executing more than a specified number of increments
away from the national best bid or offer (``NBBO'') at the time the
order is received).
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
A. significantly affect the protection of investors or the public
interest;
B. impose any significant burden on competition; and
C. become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to section 19(b)(3)(A) of the Act \16\ and
Rule 19b-4(f)(6) \17\ thereunder.\18\ At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission will institute proceedings to determine whether the proposed
rule change should be approved or disapproved.
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\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 17 CFR 240.19b-4(f)(6).
\18\ 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.
---------------------------------------------------------------------------
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-CboeBZX-2024-005 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-CboeBZX-2024-005. 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
[[Page 4648]]
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-CboeBZX-
2024-005 and should be submitted on or before February 14, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------
\19\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-01306 Filed 1-23-24; 8:45 am]
BILLING CODE 8011-01-P
