Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Minor, Non-Substantive Edits to Rule 531, Reports and Market Data Products, 30398-30400 [2024-08576]
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30398
Federal Register / Vol. 89, No. 79 / Tuesday, April 23, 2024 / Notices
DEKRA must abide by the following
conditions of the recognition:
1. DEKRA must inform OSHA as soon
as possible, in writing, of any change of
ownership, facilities, or key personnel,
and of any major change in its
operations as a NRTL, and provide
details of the change(s);
2. DEKRA must meet all the terms of
its recognition and comply with all
OSHA policies pertaining to this
recognition; and
3. DEKRA must continue to meet the
requirements for recognition, including
all previously published conditions on
DEKRA’s scope of recognition, in all
areas for which it has recognition.
Pursuant to the authority in 29 CFR
1910.7, OSHA hereby expands the scope
of recognition of DEKRA as a NRTL,
subject to the limitations and conditions
specified above. OSHA also adds one
test standard to the NRTL Program’s List
of Appropriate Test Standards.
III. Authority and Signature
James S. Frederick, Deputy Assistant
Secretary of Labor for Occupational
Safety and Health, authorized the
preparation of this notice. Accordingly,
the agency is issuing this notice
pursuant to 29 U.S.C. 657(g)(2),
Secretary of Labor’s Order No. 8–2020
(85 FR 58393, Sept. 18, 2020), and 29
CFR 1910.7.
Signed at Washington, DC, on April 16,
2024.
James S. Frederick,
Deputy Assistant Secretary of Labor for
Occupational Safety and Health.
BILLING CODE 4510–26–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99984; File No. SR–
PEARL–2024–19]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Make Minor, NonSubstantive Edits to Rule 531, Reports
and Market Data Products
ddrumheller on DSK120RN23PROD with NOTICES1
April 17, 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 April 9, 2024, MIAX PEARL, LLC
(‘‘MIAX Pearl’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) a
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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17:48 Apr 22, 2024
Jkt 262001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend (1) make a non-substantive,
clarifying change to a footnote in prior
rule filings submitted to the U.S.
Securities and Exchange Commission
(‘‘Commission’’) for immediate
effectiveness pursuant to Section
19(b)(3)(A) of the Act 3 and Rule 19b–
4(f)(6) 4 to adopt the Liquidity Taker
Event Report and Liquidity Taker Event
Report—Resting Simple Orders; 5 and
(2) make a non-substantive clarifying
change to Exchange Rule 531, Reports
and Market Data Products.
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxglobal.com/markets/
us-equities/pearl-equities/rule-filings, at
MIAX Pearl’s principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
[FR Doc. 2024–08599 Filed 4–22–24; 8:45 am]
1 15
proposed rule change as described in
Items I and II 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.
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 The Exchange notes that its affiliate, MIAX
Emerald, LLC (‘‘MIAX Emerald’’), submitted the
first filing to adopt the Liquidity Taker Event
Report—Simple Orders, pursuant to Section
19(b)(2) of the Act. 15 U.S.C. 78s(b)(2). See
Securities Exchange Act Release Nos. 91356 (March
18, 2021), 86 FR 15759 (March 24, 2021) (SR–
EMERALD–2021–09) (Notice of Filing of a Proposed
Rule Change To Adopt Exchange Rule 531, Reports,
To Provide for the New ‘‘Liquidity Taker Event
Report’’); and 91787 (May 6, 2021), 86 FR 26111
(May 12, 2021) (SR–EMERALD–2021–09) (Order
Approving Proposed Rule Change To Adopt
Exchange Rule 531(a), Reports, To Provide for a
New ‘‘Liquidity Taker Event Report’’).
4 17
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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: (1) make a
non-substantive, clarifying change to a
footnote in prior rule filings submitted
to the Commission for immediate
effectiveness pursuant to Section
19(b)(3)(A) of the Act 6 and Rule 19b–
4(f)(6) 7 thereunder to adopt the
Liquidity Taker Event Report and
Liquidity Taker Event Report—Resting
Simple Orders; and (2) make a nonsubstantive clarifying change to
Exchange Rule 531, Reports and Market
Data Products.
The Exchange offers two versions of
the Liquidity Taker Event Report: (1)
Liquidity Taker Event Report (referred
to herein as the ‘‘Simple Order Report’’);
and (2) Liquidity Taker Event Report—
Resting Simple Orders (referred to
herein as the ‘‘Resting Simple Order
Report’’).8 Each of the Reports are
available for purchase by Exchange
Members 9 on a voluntary basis. The
Exchange’s prior rule filings to adopt
each Liquidity Taker Event Report were
submitted to the Commission for
immediate effectiveness pursuant to
Section 19(b)(3)(A) of the Act 10 and
Rule 19b–4(f)(6) thereunder.11 Each
Liquidity Taker Event Report is
described under Exchange Rules 531(a)
and (c).12
In general, each Liquidity Taker Event
Report is a daily report that provides a
Member (‘‘Recipient Member’’) with its
liquidity response time details for
executions and contra-side responses of
6 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
8 The Simple Order Report and Resting Simple
Order Report are collectively referred to herein as
the ‘‘Reports.’’
9 The term ‘‘Member’’ means an individual or
organization that is registered with the Exchange
pursuant to Chapter II of the Exchange’s Rules for
purposes of trading on the Exchange as an
‘‘Electronic Exchange Member’’ or ‘‘Market Maker.’’
Members are deemed ‘‘members’’ under the
Exchange Act. See Exchange Rule 100.
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
12 See Exchange Rules 531(a) and (c); see also
Securities Exchange Act Release Nos. 92082 (June
1, 2021), 86 FR 30337 (June 7, 2021) (SR–PEARL–
2021–25) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change To Amend
Rule 531, Reports and Market Data Products, To
Adopt the Liquidity Taker Event Report for Options
Trading); and 96837 (February 8, 2023), 88 FR 9543
(February 14, 2023) (SR–PEARL–2023–01) (Notice
of Filing and Immediate Effectiveness of a Proposed
Rule Change To Amend Exchange Rule 531, Reports
and Market Data Products, To Provide for the New
‘‘Liquidity Taker Event Report— Resting Simple
Orders’’).
7 17
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Federal Register / Vol. 89, No. 79 / Tuesday, April 23, 2024 / Notices
an order resting on the Book,13 where
that Recipient Member attempted to
execute against such resting order 14
within a certain timeframe.15 The
content of each of the Reports is specific
to the Recipient Member and each
Liquidity Taker Event Report does not
include any information related to any
Member other than the Recipient
Member.
Proposal To Amend a Footnote in
Each of the Filings To Adopt the
Reports (SR–PEARL–2021–25 and SR–
PEARL–2023–01)
The Exchange proposes to make a
clarifying change to one of the footnotes
in each of the filings to adopt each
Liquidity Taker Event Report. Each of
the filings to adopt each Liquidity Taker
Event Report contains a section that
describes information in each report
that corresponds to the Recipient
Member. Each of the prior filings states
that the ‘‘following information would
be included in the [Simple Order Report
or Resting Simple Order Report]
regarding response(s) sent by the
Recipient Member: (A) Recipient
Member identifier; (B) the time
difference between the time the first
response that executes against the
resting order was received by the
Exchange and the time of each response
sent by the Recipient Member,
regardless of whether it executed or not;
(C) size and type of each response
submitted by Recipient Member; and (D)
response reference number, which is a
unique reference number attached to the
response by the Recipient Member.16
Further, each of the filings includes a
footnote at the end of romanette ‘‘(B)’’
in the paragraph described above, which
states as follows:
For purposes of calculating this duration of
time, the Exchange will use the time the
resting order and the Recipient Member’s
response(s) is received by the Exchange’s
network, both of which would be before the
order and response(s) would be received by
the System. This time difference would be
provided in nanoseconds.17
ddrumheller on DSK120RN23PROD with NOTICES1
The Exchange proposes to clarify the
above footnote. Specifically, the
Exchange proposes to replace ‘‘the
13 The ‘‘Book’’ is the Exchange’s electronic book
of buy and sell orders and quotes maintained by the
System. See Exchange Rule 100.
14 Only displayed orders are included in the
Reports. The Exchange notes that it does not
currently offer any non-displayed orders on its
options trading platform.
15 A complete description of each of the Reports
can be found in the prior rule filings to adopt the
Reports. See supra note 12.
16 See supra note 12. For the Simple Order
Report, see Exchange Rule 531(a)(1)(iii); for the
Resting Simple Order Report, see Exchange Rule
531(c)(1)(iii).
17 See supra note 12, 86 FR 30337, at 30339,
footnote 20; and 88 FR 9543, at 9545, footnote 21.
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17:48 Apr 22, 2024
Jkt 262001
resting order’’ with ‘‘the first response
that executes against the resting order.’’
Accordingly, with the proposed change,
the referenced footnotes in each of the
filings to adopt the Reports would read
as follows:
For purposes of calculating this duration of
time, the Exchange will use the time the first
response that executes against the resting
order and the Recipient Member’s
response(s) is received by the Exchange’s
network, both of which would be before the
order and response(s) would be received by
the System. This time difference would be
provided in nanoseconds.
The purpose of the proposed change
is to correct a non-substantive error in
a footnote of each rule filing to adopt
the Reports. The Exchange notes that
the rule text in Exchange Rule 531 that
describes each of the Reports was
correctly adopted and does not require
any change; only the footnote described
above needs to be clarified. This change
does not impact or alter the information
provided to any Recipient Member.
Cleanup to Exchange Rule 531(c)
The Exchange proposes to make a
non-substantive clarifying change to
Exchange Rule 531, Reports and Market
Data Products. Currently, Exchange Rule
531(c) provides the rule text for the
Resting Simple Order Report. In
particular, Exchange Rule 531(c)
provides that ‘‘[t]he Liquidity Taker
Event Report-Resting Simple Orders is a
daily report that provides a Member
(‘Recipient Member’) with its liquidity
response time details for executions
against an order resting on the Simple
Order Book, where that Recipient
Member attempted to execute against
such resting order within the timeframe
specified under paragraph (2) below.’’
The Exchange proposes to delete the
words ‘‘Simple Order’’ when referring to
the Book. The purpose of this proposed
change is to provide consistency and
clarity within the Rulebook as the
defined term, the ‘‘Book,’’ refers to the
Exchange’s electronic book of buy and
sell orders and quotes maintained by the
System.18
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,19 in general, and
furthers the objectives of Section
6(b)(5),20 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices,
promote just and equitable principles of
trade, foster cooperation and
coordination with persons engaged in
18 See
Exchange Rule 100.
U.S.C. 78f(b).
20 15 U.S.C. 78f(b)(5).
19 15
PO 00000
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Fmt 4703
Sfmt 4703
30399
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities,
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, protect investors and the public
interest.
The Exchange believes that the
proposed change to each of the
footnotes described above for each
Liquidity Taker Event Report protects
investors and the public interest, as well
as removes impediments to and perfects
the mechanism of a free and open
market and a national market system
because the change is designed solely to
correct non-substantive errors in prior
filings, and none which have any
impact on the Exchange’s actual rule
text for each of the Reports. This
proposed change does not impact or
alter the operation of Exchange Rule 531
regarding the Reports.
Similarly, the Exchange believes that
the proposed change to delete the words
‘‘Simple Order’’ when referring to the
Book in Exchange Rule 531(c) removes
impediments to and perfects the
mechanism of a free and open market
and a national market system because
the change is designed to provide
consistency and clarity within the
Rulebook as the defined term, the
‘‘Book,’’ refers to the Exchange’s
electronic book of buy and sell orders
and quotes maintained by the System.
This proposed change does not impact
or alter the operation of Exchange Rule
531(c).
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
The non-substantive corrections to the
footnotes in prior filings to adopt each
Liquidity Taker Event Report would not
impact competition because such
changes would not enhance or alter the
Exchange’s ability to compete, but
rather, clarify a prior error which would
reduce the potential for inadvertent
investor confusion. Similarly, the
proposed change to delete the words
‘‘Simple Order’’ when referring to the
Book in Exchange Rule 531(c) would
not impact competition because such
change would not enhance or alter the
Exchange’s ability to compete, but
rather, provide consistency and clarity
within the Rulebook.
E:\FR\FM\23APN1.SGM
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Federal Register / Vol. 89, No. 79 / Tuesday, April 23, 2024 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days 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 21 and Rule 19b–
4(f)(6) thereunder.22
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 23 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 24
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has
requested that the Commission waive
the 30-day operative delay so that the
proposal may become operative
immediately upon filing. The Exchange
stated that the proposed changes to the
footnotes in the filings to adopt each of
the Reports would correct nonsubstantive errors in prior filings. The
Exchange also stated that the proposed
non-substantive, clarifying change to
Exchange Rule 531 deleting the words
‘‘Simple Order’’ when referring to the
Book would provide consistency and
clarity within the Rulebook. For these
reasons, and because the proposal raises
no novel legal or regulatory issues, the
Commission believes 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.25
21 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) 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.
23 15 U.S.C. 78s(b)(3)(A).
24 17 CFR 240.19b–4(f)(6)(iii).
25 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
ddrumheller on DSK120RN23PROD with NOTICES1
22 17
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At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
PEARL–2024–19 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to file
number SR–PEARL–2024–19. 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
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
PO 00000
Frm 00081
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Sfmt 4703
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–PEARL–2024–19 and should be
submitted on or before May 14, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.26
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–08576 Filed 4–22–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
35172; File No. 813–00410]
Hines Investment Management
Holdings Limited Partnership and
Hines Employee Access I LP
April 17, 2024.
Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’).
ACTION: Notice.
AGENCY:
Notice of application for an order
(‘‘Order’’) under sections 6(b) and 6(e) of
the Investment Company Act of 1940
(the ‘‘Act’’) granting an exemption from
all provisions of the Act, except sections
9, 17, 30, and 36 through 53, and the
rules and regulations under the Act (the
‘‘Rules and Regulations’’). With respect
to sections 17(a), (d), (e), (f), (g), and (j)
of the Act, sections 30(a), (b), (e), and (h)
of the Act and the Rules and
Regulations and rule 38a–1 under the
Act, applicants request a limited
exemption as set forth in the
application.
SUMMARY OF APPLICATION: Applicants
request an order to exempt certain
limited partnerships, limited liability
companies, business trusts or other
entities (‘‘Funds’’) formed for the benefit
of eligible employees of Hines
Investment Management Holdings
Limited Partnership and its affiliates
from certain provisions of the Act. Each
Fund, and each series thereof with
segregated assets and liabilities, will be
an ‘‘employees’ securities company’’
within the meaning of section 2(a)(13) of
the Act.
APPLICANTS: Hines Investment
Management Holdings Limited
Partnership and Hines Employee Access
Partners I LP.
26 17
E:\FR\FM\23APN1.SGM
CFR 200.30–3(a)(12), (59).
23APN1
Agencies
[Federal Register Volume 89, Number 79 (Tuesday, April 23, 2024)]
[Notices]
[Pages 30398-30400]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08576]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99984; File No. SR-PEARL-2024-19]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Make Minor,
Non-Substantive Edits to Rule 531, Reports and Market Data Products
April 17, 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 April 9, 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 and II
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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend (1) make a non-
substantive, clarifying change to a footnote in prior rule filings
submitted to the U.S. Securities and Exchange Commission
(``Commission'') for immediate effectiveness pursuant to Section
19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) \4\ to adopt the
Liquidity Taker Event Report and Liquidity Taker Event Report--Resting
Simple Orders; \5\ and (2) make a non-substantive clarifying change to
Exchange Rule 531, Reports and Market Data Products.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
\5\ The Exchange notes that its affiliate, MIAX Emerald, LLC
(``MIAX Emerald''), submitted the first filing to adopt the
Liquidity Taker Event Report--Simple Orders, pursuant to Section
19(b)(2) of the Act. 15 U.S.C. 78s(b)(2). See Securities Exchange
Act Release Nos. 91356 (March 18, 2021), 86 FR 15759 (March 24,
2021) (SR-EMERALD-2021-09) (Notice of Filing of a Proposed Rule
Change To Adopt Exchange Rule 531, Reports, To Provide for the New
``Liquidity Taker Event Report''); and 91787 (May 6, 2021), 86 FR
26111 (May 12, 2021) (SR-EMERALD-2021-09) (Order Approving Proposed
Rule Change To Adopt Exchange Rule 531(a), Reports, To Provide for a
New ``Liquidity Taker Event Report'').
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxglobal.com/markets/us-equities/pearl-equities/rule-filings, at MIAX Pearl's principal office, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to: (1) make a non-substantive, clarifying
change to a footnote in prior rule filings submitted to the Commission
for immediate effectiveness pursuant to Section 19(b)(3)(A) of the Act
\6\ and Rule 19b-4(f)(6) \7\ thereunder to adopt the Liquidity Taker
Event Report and Liquidity Taker Event Report--Resting Simple Orders;
and (2) make a non-substantive clarifying change to Exchange Rule 531,
Reports and Market Data Products.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
The Exchange offers two versions of the Liquidity Taker Event
Report: (1) Liquidity Taker Event Report (referred to herein as the
``Simple Order Report''); and (2) Liquidity Taker Event Report--Resting
Simple Orders (referred to herein as the ``Resting Simple Order
Report'').\8\ Each of the Reports are available for purchase by
Exchange Members \9\ on a voluntary basis. The Exchange's prior rule
filings to adopt each Liquidity Taker Event Report were submitted to
the Commission for immediate effectiveness pursuant to Section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\ Each
Liquidity Taker Event Report is described under Exchange Rules 531(a)
and (c).\12\
---------------------------------------------------------------------------
\8\ The Simple Order Report and Resting Simple Order Report are
collectively referred to herein as the ``Reports.''
\9\ The term ``Member'' means an individual or organization that
is registered with the Exchange pursuant to Chapter II of the
Exchange's Rules for purposes of trading on the Exchange as an
``Electronic Exchange Member'' or ``Market Maker.'' Members are
deemed ``members'' under the Exchange Act. See Exchange Rule 100.
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ See Exchange Rules 531(a) and (c); see also Securities
Exchange Act Release Nos. 92082 (June 1, 2021), 86 FR 30337 (June 7,
2021) (SR-PEARL-2021-25) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change To Amend Rule 531, Reports
and Market Data Products, To Adopt the Liquidity Taker Event Report
for Options Trading); and 96837 (February 8, 2023), 88 FR 9543
(February 14, 2023) (SR-PEARL-2023-01) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change To Amend Exchange
Rule 531, Reports and Market Data Products, To Provide for the New
``Liquidity Taker Event Report-- Resting Simple Orders'').
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In general, each Liquidity Taker Event Report is a daily report
that provides a Member (``Recipient Member'') with its liquidity
response time details for executions and contra-side responses of
[[Page 30399]]
an order resting on the Book,\13\ where that Recipient Member attempted
to execute against such resting order \14\ within a certain
timeframe.\15\ The content of each of the Reports is specific to the
Recipient Member and each Liquidity Taker Event Report does not include
any information related to any Member other than the Recipient Member.
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\13\ The ``Book'' is the Exchange's electronic book of buy and
sell orders and quotes maintained by the System. See Exchange Rule
100.
\14\ Only displayed orders are included in the Reports. The
Exchange notes that it does not currently offer any non-displayed
orders on its options trading platform.
\15\ A complete description of each of the Reports can be found
in the prior rule filings to adopt the Reports. See supra note 12.
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Proposal To Amend a Footnote in Each of the Filings To Adopt the
Reports (SR-PEARL-2021-25 and SR-PEARL-2023-01)
The Exchange proposes to make a clarifying change to one of the
footnotes in each of the filings to adopt each Liquidity Taker Event
Report. Each of the filings to adopt each Liquidity Taker Event Report
contains a section that describes information in each report that
corresponds to the Recipient Member. Each of the prior filings states
that the ``following information would be included in the [Simple Order
Report or Resting Simple Order Report] regarding response(s) sent by
the Recipient Member: (A) Recipient Member identifier; (B) the time
difference between the time the first response that executes against
the resting order was received by the Exchange and the time of each
response sent by the Recipient Member, regardless of whether it
executed or not; (C) size and type of each response submitted by
Recipient Member; and (D) response reference number, which is a unique
reference number attached to the response by the Recipient Member.\16\
Further, each of the filings includes a footnote at the end of
romanette ``(B)'' in the paragraph described above, which states as
follows:
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\16\ See supra note 12. For the Simple Order Report, see
Exchange Rule 531(a)(1)(iii); for the Resting Simple Order Report,
see Exchange Rule 531(c)(1)(iii).
For purposes of calculating this duration of time, the Exchange
will use the time the resting order and the Recipient Member's
response(s) is received by the Exchange's network, both of which
would be before the order and response(s) would be received by the
System. This time difference would be provided in nanoseconds.\17\
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\17\ See supra note 12, 86 FR 30337, at 30339, footnote 20; and
88 FR 9543, at 9545, footnote 21.
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The Exchange proposes to clarify the above footnote. Specifically,
the Exchange proposes to replace ``the resting order'' with ``the first
response that executes against the resting order.'' Accordingly, with
the proposed change, the referenced footnotes in each of the filings to
adopt the Reports would read as follows:
For purposes of calculating this duration of time, the Exchange
will use the time the first response that executes against the
resting order and the Recipient Member's response(s) is received by
the Exchange's network, both of which would be before the order and
response(s) would be received by the System. This time difference
would be provided in nanoseconds.
The purpose of the proposed change is to correct a non-substantive
error in a footnote of each rule filing to adopt the Reports. The
Exchange notes that the rule text in Exchange Rule 531 that describes
each of the Reports was correctly adopted and does not require any
change; only the footnote described above needs to be clarified. This
change does not impact or alter the information provided to any
Recipient Member.
Cleanup to Exchange Rule 531(c)
The Exchange proposes to make a non-substantive clarifying change
to Exchange Rule 531, Reports and Market Data Products. Currently,
Exchange Rule 531(c) provides the rule text for the Resting Simple
Order Report. In particular, Exchange Rule 531(c) provides that ``[t]he
Liquidity Taker Event Report-Resting Simple Orders is a daily report
that provides a Member (`Recipient Member') with its liquidity response
time details for executions against an order resting on the Simple
Order Book, where that Recipient Member attempted to execute against
such resting order within the timeframe specified under paragraph (2)
below.'' The Exchange proposes to delete the words ``Simple Order''
when referring to the Book. The purpose of this proposed change is to
provide consistency and clarity within the Rulebook as the defined
term, the ``Book,'' refers to the Exchange's electronic book of buy and
sell orders and quotes maintained by the System.\18\
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\18\ See Exchange Rule 100.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\19\ in general, and furthers the
objectives of Section 6(b)(5),\20\ in particular, because it is
designed to prevent fraudulent and manipulative acts and practices,
promote just and equitable principles of trade, foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general,
protect investors and the public interest.
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\19\ 15 U.S.C. 78f(b).
\20\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed change to each of the
footnotes described above for each Liquidity Taker Event Report
protects investors and the public interest, as well as removes
impediments to and perfects the mechanism of a free and open market and
a national market system because the change is designed solely to
correct non-substantive errors in prior filings, and none which have
any impact on the Exchange's actual rule text for each of the Reports.
This proposed change does not impact or alter the operation of Exchange
Rule 531 regarding the Reports.
Similarly, the Exchange believes that the proposed change to delete
the words ``Simple Order'' when referring to the Book in Exchange Rule
531(c) removes impediments to and perfects the mechanism of a free and
open market and a national market system because the change is designed
to provide consistency and clarity within the Rulebook as the defined
term, the ``Book,'' refers to the Exchange's electronic book of buy and
sell orders and quotes maintained by the System. This proposed change
does not impact or alter the operation of Exchange Rule 531(c).
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act, as amended.
The non-substantive corrections to the footnotes in prior filings
to adopt each Liquidity Taker Event Report would not impact competition
because such changes would not enhance or alter the Exchange's ability
to compete, but rather, clarify a prior error which would reduce the
potential for inadvertent investor confusion. Similarly, the proposed
change to delete the words ``Simple Order'' when referring to the Book
in Exchange Rule 531(c) would not impact competition because such
change would not enhance or alter the Exchange's ability to compete,
but rather, provide consistency and clarity within the Rulebook.
[[Page 30400]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days 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 \21\ and Rule 19b-
4(f)(6) thereunder.\22\
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\21\ 15 U.S.C. 78s(b)(3)(A).
\22\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
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 pursuant to Rule 19b-4(f)(6) under the
Act \23\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \24\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposal may become operative immediately upon filing. The
Exchange stated that the proposed changes to the footnotes in the
filings to adopt each of the Reports would correct non-substantive
errors in prior filings. The Exchange also stated that the proposed
non-substantive, clarifying change to Exchange Rule 531 deleting the
words ``Simple Order'' when referring to the Book would provide
consistency and clarity within the Rulebook. For these reasons, and
because the proposal raises no novel legal or regulatory issues, the
Commission believes 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.\25\
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\23\ 15 U.S.C. 78s(b)(3)(A).
\24\ 17 CFR 240.19b-4(f)(6)(iii).
\25\ 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 such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-PEARL-2024-19 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-PEARL-2024-19. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-PEARL-2024-19 and should be
submitted on or before May 14, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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\26\ 17 CFR 200.30-3(a)(12), (59).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-08576 Filed 4-22-24; 8:45 am]
BILLING CODE 8011-01-P