Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Introduce a New Connectivity Offering Through Dedicated Cores, 21294-21296 [2024-06447]
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21294
Federal Register / Vol. 89, No. 60 / Wednesday, March 27, 2024 / Notices
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–MEMX–2024–10 and should be
submitted on or before April 17, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–06453 Filed 3–26–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99819; File No. SR–
CboeBYX–2024–004]
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Notice of
Designation of a Longer Period for
Commission Action on a Proposed
Rule Change To Amend the Definition
of Retail Order, and Codify
Interpretations and Policies Regarding
Permissible Uses of Algorithms by
RMOs
khammond on DSKJM1Z7X2PROD with NOTICES
March 21, 2024.
On January 25, 2024, Cboe BYX
Exchange, Inc. (‘‘BYX’’ or the
‘‘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 the definition of retail order, and
codify interpretations and policies
regarding permissible uses of algorithms
by Retail Member Organizations
(‘‘RMOs’’). The proposed rule change
was published for comment in the
Federal Register on February 13, 2024.3
Section 19(b)(2) of the Act 4 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 99489
(Feb. 7, 2024), 89 FR 10138.
4 15 U.S.C. 78s(b)(2).
to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission shall either
approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether the proposed rule change
should be disapproved. The 45th day
after publication of the notice for this
proposed rule change is March 29, 2024.
The Commission is extending this 45day time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
sufficient time to consider the proposed
rule change and the issues raised
therein. Accordingly, pursuant to
Section 19(b)(2) of the Act,5 the
Commission designates May 13, 2024,
as the date by which the Commission
shall either approve or disapprove, or
institute proceedings to determine
whether to disapprove, the proposed
rule change (File No. SR-CboeBYX–
2024–004).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–06448 Filed 3–26–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99818; File No. SR–
CboeEDGA–2024–008]
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Introduce a
New Connectivity Offering Through
Dedicated Cores
March 21, 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 March 19,
2024, Cboe EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
1 15
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17:03 Mar 26, 2024
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5 Id.
6 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Fmt 4703
Sfmt 4703
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 EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) proposes to
introduce a new connectivity offering. A
notice of the proposed rule change for
publication in the Federal Register is
attached as Exhibit 1 [sic].
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/edga/),
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 introduce a
new connectivity offering relating to the
use of Dedicated Cores. By way of
background, all Central Processing Units
(‘‘CPU Cores’’) have historically been
shared by logical order entry ports (i.e.,
multiple logical ports from multiple
firms may connect to a single CPU
Core). Starting February 26, 2024, the
Exchange began to allow Users 5 to
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 A User may be either a Member, Service Bureau
or Sponsored Participant. The term ‘‘Member’’ shall
mean any registered broker or dealer that has been
admitted to membership in the Exchange. limited
liability company or other organization which is a
registered broker or dealer pursuant to Section 15
of the Act, and which has been approved by the
Exchange. In a Service Bureau relationship a
customer allows its MPID to be used on the ports
of a technology provider, or Service Bureau. One
MPID may be allowed on several different Service
Bureaus. A Sponsored Participant may be a
4 17
E:\FR\FM\27MRN1.SGM
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Federal Register / Vol. 89, No. 60 / Wednesday, March 27, 2024 / Notices
assign a single BOE logical entry port to
a single dedicated CPU Core
(‘‘Dedicated Core’’).6 Use of Dedicated
Cores can provide reduced latency,
enhanced throughput, and improved
performance since a firm using a
Dedicated Core is utilizing the full
processing power of a CPU Core instead
of sharing that power with other firms.
This offering is completely voluntary
and is available to all Users.7 Users will
also continue to have the option to
utilize BOE logical order entry ports on
shared CPU Cores as they do today,
either in lieu of, or in addition to, their
use of Dedicated Core(s). As such, Users
will be able to operate across a mix of
shared and dedicated CPU Cores which
the Exchange believes provides
additional risk and capacity
management. Further, Dedicated Cores
are not required nor necessary to
participate on the Exchange and as such
Users may opt not to use Dedicated
Cores at all.
khammond on DSKJM1Z7X2PROD with NOTICES
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
and, in particular, the requirements of
Section 6(b) of the Act.8 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 9 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) 10 requirement that
the rules of an exchange not be designed
Member or non-Member of the Exchange whose
direct electronic access to the Exchange is
authorized by a Sponsoring Member subject to
certain conditions. See Exchange Rule 11.3.
6 The Exchange notes that firms will not have
physical access to their Dedicated Core and thus
cannot make any modifications to the Dedicated
Core or server. All Dedicated Cores (including
servers used for this service) are owned and
operated by the Exchange.
7 The Exchange intends to submit a separate rule
filing to adopt monthly fees related to the use of
Dedicated Cores.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 Id.
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17:03 Mar 26, 2024
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to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the proposal would
provide Users the option to assign a
single BOE logical entry port to a single
Dedicated Core. As described above,
CPU Cores have historically been shared
by logical order entry ports (i.e.,
multiple logical ports from multiple
firms may connect to a single CPU
Core). Use of Dedicated Cores can
provide reduced latency, enhanced
throughput, and improved performance
since a firm using a Dedicated Core is
utilizing the full processing power of a
CPU Core instead of sharing that power
with other firms. The Exchange also
emphasizes that the use of Dedicated
Cores is not necessary for trading and as
noted above, is entirely optional.
Indeed, Users can continue to access the
Exchange through shared CPU Cores at
no additional cost. Depending on a
firm’s specific business needs, the
proposal enables Users to choose to use
Dedicated Cores in lieu of, or in
addition to, shared CPU Cores (or as
noted, not use Dedicated Cores at all).
The Exchange believes the proposal to
operate across a mix of shared and
dedicated CPU Cores may further
provide additional risk and capacity
management. The Exchange also notes
another Exchange has a similar
connectivity offering.11
Furthermore, this service is optional
and is available to all Users. In this
regard, some Users may determine it
does not want or need Dedicated Cores
and may continue their use of the
shared CPU Cores, unchanged. The
Exchange has no current plans to
eliminate shared Cores nor require
subscription to the dedicated offering.
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. Particularly,
the Exchange believes the proposed rule
change does not impose any burden on
intra-market competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because
Dedicated Cores will be available to all
Users. While the Exchange believes that
the proposed Dedicated Cores provide a
valuable service, Users can choose to
purchase, or not purchase, Dedicated
Cores based on their own determination
of the value and their business needs.
Indeed, no User is required or under any
11 See The Nasdaq Stock Market, Equity 7 Pricing
Schedule, Section 115(g)(3), Dedicated Ouch Port
Infrastructure.
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Frm 00063
Fmt 4703
Sfmt 4703
21295
regulatory obligation to use Dedicated
Cores.
Additionally, nothing in the proposal
imposes any burden on the ability of
other exchanges to compete. The
Exchange operates in a highly
competitive market in which exchanges
offer various connectivity services as a
means to facilitate the trading and other
market activities of those market
participants and at least one other
exchange has an offering comparable to
Dedicated Cores.12
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 proposed rule change
does not: (i) significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative prior to 30 days from the date
on which it was filed, or such shorter
time as the Commission may designate,
if consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section
19(b)(3)(A)(iii) of the Act 13 and Rule
19b–4(f)(6) thereunder.14
A proposed rule change filed under
Rule 19b–4(f)(6) 15 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),16 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest.
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange states that another
exchange has a connectivity offering
12 See The Nasdaq Stock Market, Equity 7 Pricing
Schedule, Section 115(g)(3), Dedicated Ouch Port
Infrastructure.
13 15 U.S.C. 78s(b)(3)(A)(iii).
14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
E:\FR\FM\27MRN1.SGM
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21296
Federal Register / Vol. 89, No. 60 / Wednesday, March 27, 2024 / Notices
comparable to Dedicated Cores.17 The
Commission believes that the proposed
rule change presents no novel legal or
regulatory issues, and that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest. Accordingly, the
Commission hereby waives the 30-day
operative delay and designates the
proposed rule change operative upon
filing.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 shall institute proceedings
under Section 19(b)(2)(B) 19 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
khammond on DSKJM1Z7X2PROD with NOTICES
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–
CboeEDGA–2024–008 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–CboeEDGA–2024–008. 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
17 See
supra note 12.
purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
19 15 U.S.C. 78s(b)(2)(B).
18 For
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17:03 Mar 26, 2024
Jkt 262001
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–CboeEDGA–2024–008 and should
be submitted on or before April 17,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–06447 Filed 3–26–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99831; File No. SR–
PEARL–2024–12]
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
March 21, 2024.
Pursuant to the provisions of 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 March 8, 2024, MIAX PEARL, LLC
(‘‘MIAX Pearl’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) a
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
20 17
CFR 200.30–3(a)(12), (59).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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
Exchange Fee Schedule (the ‘‘Fee
Schedule’’).
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxglobal.com/markets/
us-options/pearl-options/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
exchange grouping of options exchanges
within the routing fee table in Section
1)b) of the Fee Schedule, Fees for
Customer Orders Routed to Another
Options Exchange, to (i) adjust the
groupings of options exchanges; and (ii)
adopt a new routing tier. The Exchange
originally filed this proposal on January
31, 2024 (SR–PEARL–2024–06). On
February 14, 2024, the Exchange
withdrew SR–PEARL–2024–06 and
resubmitted the proposal as SR–PEARL–
2024–09. On February 26, 2024, SR–
PEARL–2024–09, was rejected due to a
technical issue with the filing. On
February 26, 2024, the Exchange
resubmitted a corrected proposal as SR–
PEARL–2024–10. On March 8, 2024, the
Exchange withdrew SR–PEARL–2024–
10 and resubmitted this proposal.
Background
Currently, the Exchange assesses
routing fees based upon (i) the origin
type of the order; (ii) whether or not it
is an order for standard option classes
in the Penny Interval Program 3 (‘‘Penny
1 15
PO 00000
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3 See
E:\FR\FM\27MRN1.SGM
Exchange Rule 510(c).
27MRN1
]]>Agencies
[Federal Register Volume 89, Number 60 (Wednesday, March 27, 2024)]
[Notices]
[Pages 21294-21296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06447]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99818; File No. SR-CboeEDGA-2024-008]
Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Introduce a New Connectivity Offering Through Dedicated Cores
March 21, 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 March 19, 2024, Cboe EDGA Exchange, Inc. (the ``Exchange'' or
``EDGA'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe EDGA Exchange, Inc. (the ``Exchange'' or ``EDGA'') proposes to
introduce a new connectivity offering. A notice of the proposed rule
change for publication in the Federal Register is attached as Exhibit 1
[sic].
The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/equities/regulation/rule_filings/edga/), 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 introduce a new connectivity offering
relating to the use of Dedicated Cores. By way of background, all
Central Processing Units (``CPU Cores'') have historically been shared
by logical order entry ports (i.e., multiple logical ports from
multiple firms may connect to a single CPU Core). Starting February 26,
2024, the Exchange began to allow Users \5\ to
[[Page 21295]]
assign a single BOE logical entry port to a single dedicated CPU Core
(``Dedicated Core'').\6\ Use of Dedicated Cores can provide reduced
latency, enhanced throughput, and improved performance since a firm
using a Dedicated Core is utilizing the full processing power of a CPU
Core instead of sharing that power with other firms. This offering is
completely voluntary and is available to all Users.\7\ Users will also
continue to have the option to utilize BOE logical order entry ports on
shared CPU Cores as they do today, either in lieu of, or in addition
to, their use of Dedicated Core(s). As such, Users will be able to
operate across a mix of shared and dedicated CPU Cores which the
Exchange believes provides additional risk and capacity management.
Further, Dedicated Cores are not required nor necessary to participate
on the Exchange and as such Users may opt not to use Dedicated Cores at
all.
---------------------------------------------------------------------------
\5\ A User may be either a Member, Service Bureau or Sponsored
Participant. The term ``Member'' shall mean any registered broker or
dealer that has been admitted to membership in the Exchange. limited
liability company or other organization which is a registered broker
or dealer pursuant to Section 15 of the Act, and which has been
approved by the Exchange. In a Service Bureau relationship a
customer allows its MPID to be used on the ports of a technology
provider, or Service Bureau. One MPID may be allowed on several
different Service Bureaus. A Sponsored Participant may be a Member
or non-Member of the Exchange whose direct electronic access to the
Exchange is authorized by a Sponsoring Member subject to certain
conditions. See Exchange Rule 11.3.
\6\ The Exchange notes that firms will not have physical access
to their Dedicated Core and thus cannot make any modifications to
the Dedicated Core or server. All Dedicated Cores (including servers
used for this service) are owned and operated by the Exchange.
\7\ The Exchange intends to submit a separate rule filing to
adopt monthly fees related to the use of Dedicated Cores.
---------------------------------------------------------------------------
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 and, in particular,
the requirements of Section 6(b) of the Act.\8\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \9\ 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) \10\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ Id.
---------------------------------------------------------------------------
In particular, the proposal would provide Users the option to
assign a single BOE logical entry port to a single Dedicated Core. As
described above, CPU Cores have historically been shared by logical
order entry ports (i.e., multiple logical ports from multiple firms may
connect to a single CPU Core). Use of Dedicated Cores can provide
reduced latency, enhanced throughput, and improved performance since a
firm using a Dedicated Core is utilizing the full processing power of a
CPU Core instead of sharing that power with other firms. The Exchange
also emphasizes that the use of Dedicated Cores is not necessary for
trading and as noted above, is entirely optional. Indeed, Users can
continue to access the Exchange through shared CPU Cores at no
additional cost. Depending on a firm's specific business needs, the
proposal enables Users to choose to use Dedicated Cores in lieu of, or
in addition to, shared CPU Cores (or as noted, not use Dedicated Cores
at all). The Exchange believes the proposal to operate across a mix of
shared and dedicated CPU Cores may further provide additional risk and
capacity management. The Exchange also notes another Exchange has a
similar connectivity offering.\11\
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\11\ See The Nasdaq Stock Market, Equity 7 Pricing Schedule,
Section 115(g)(3), Dedicated Ouch Port Infrastructure.
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Furthermore, this service is optional and is available to all
Users. In this regard, some Users may determine it does not want or
need Dedicated Cores and may continue their use of the shared CPU
Cores, unchanged. The Exchange has no current plans to eliminate shared
Cores nor require subscription to the dedicated offering.
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. Particularly, the Exchange
believes the proposed rule change does not impose any burden on intra-
market competition that is not necessary or appropriate in furtherance
of the purposes of the Act because Dedicated Cores will be available to
all Users. While the Exchange believes that the proposed Dedicated
Cores provide a valuable service, Users can choose to purchase, or not
purchase, Dedicated Cores based on their own determination of the value
and their business needs. Indeed, no User is required or under any
regulatory obligation to use Dedicated Cores.
Additionally, nothing in the proposal imposes any burden on the
ability of other exchanges to compete. The Exchange operates in a
highly competitive market in which exchanges offer various connectivity
services as a means to facilitate the trading and other market
activities of those market participants and at least one other exchange
has an offering comparable to Dedicated Cores.\12\
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\12\ See The Nasdaq Stock Market, Equity 7 Pricing Schedule,
Section 115(g)(3), Dedicated Ouch Port Infrastructure.
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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 proposed rule change does not: (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \13\ and Rule
19b-4(f)(6) thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\16\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
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The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Exchange states that another exchange has a connectivity
offering
[[Page 21296]]
comparable to Dedicated Cores.\17\ The Commission believes that the
proposed rule change presents no novel legal or regulatory issues, and
that waiver of the 30-day operative delay is consistent with the
protection of investors and the public interest. Accordingly, the
Commission hereby waives the 30-day operative delay and designates the
proposed rule change operative upon filing.\18\
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\17\ See supra note 12.
\18\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 under
Section 19(b)(2)(B) \19\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\19\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-CboeEDGA-2024-008 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-CboeEDGA-2024-008. 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-CboeEDGA-2024-008 and should
be submitted on or before April 17, 2024.
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\20\ 17 CFR 200.30-3(a)(12), (59).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-06447 Filed 3-26-24; 8:45 am]
BILLING CODE 8011-01-P
