Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove Proposed Rule Change To Amend Rule 11.9(c)(6) and Rule 11.13(a)(4)(D) To Permit the Use of BZX Post Only Orders at Prices Below $1.00, 35866-35868 [2024-09472]
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35866
Federal Register / Vol. 89, No. 86 / Thursday, May 2, 2024 / Notices
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
SUMMARY:
DATES:
Date of required notice: May 2,
2024.
Sean Robinson, 202–268–8405.
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on April 26, 2024,
it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail & USPS Ground
Advantage® Contract 229 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2024–254, CP2024–260.
SUPPLEMENTARY INFORMATION:
Sean Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2024–09500 Filed 5–1–24; 8:45 am]
BILLING CODE 7710–12–P
POSTAL SERVICE
Product Change—Priority Mail and
USPS Ground Advantage® Negotiated
Service Agreement
ACTION:
Postal
Notice.
Date of required notice: May 2,
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on April 26, 2024,
it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail & USPS Ground
Advantage® Contract 230 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2024–255, CP2024–261.
khammond on DSKJM1Z7X2PROD with NOTICES
SUPPLEMENTARY INFORMATION:
Sean Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2024–09501 Filed 5–1–24; 8:45 am]
BILLING CODE 7710–12–P
17:14 May 01, 2024
Sean C. Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2024–09494 Filed 5–1–24; 8:45 am]
Jkt 262001
Product Change—Priority Mail
Express, Priority Mail, and USPS
Ground Advantage® Negotiated
Service Agreement
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: May 2,
2024.
FOR FURTHER INFORMATION CONTACT:
Sean C. Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on April 22, 2024,
it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail &
USPS Ground Advantage® Contract 60
to Competitive Product List. Documents
SUMMARY:
2024.
VerDate Sep<11>2014
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: May 2,
2024.
FOR FURTHER INFORMATION CONTACT:
Sean C. Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on April 24, 2024,
it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail &
USPS Ground Advantage® Contract 62
to Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2024–249, CP2024–255.
POSTAL SERVICE
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
PO 00000
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Fmt 4703
Sfmt 4703
Sean C. Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2024–09492 Filed 5–1–24; 8:45 am]
BILLING CODE 7710–12–P
Postal ServiceTM.
ACTION: Notice.
AGENCY:
BILLING CODE 7710–12–P
ServiceTM.
SUMMARY:
DATES:
Product Change—Priority Mail
Express, Priority Mail, and USPS
Ground Advantage® Negotiated
Service Agreement
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
AGENCY:
are available at www.prc.gov, Docket
Nos. MC2024–246, CP2024–252.
POSTAL SERVICE
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100038; File No. SR–
CboeBZX–2024–006]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Order Instituting
Proceedings To Determine Whether To
Approve or Disapprove Proposed Rule
Change To Amend Rule 11.9(c)(6) and
Rule 11.13(a)(4)(D) To Permit the Use
of BZX Post Only Orders at Prices
Below $1.00
April 26, 2024.
I. Introduction
On January 8, 2024, Cboe BZX
Exchange, Inc. (‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to permit the use of BZX Post
Only Orders at prices below $1.00. The
proposed rule change was published for
comment in the Federal Register on
January 29, 2024.3 On March 8, 2024,
pursuant to Section 19(b)(2) of the Act,4
the Commission designated a longer
period within which to approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether to
disapprove the proposed rule change.5
The Commission did not receive any
comments. The Commission is
instituting proceedings pursuant to
Section 19(b)(2)(B) of the Act 6 to
determine whether to approve or
disapprove the proposed rule change.
II. Description of the Proposed Rule
Change 7
The Exchange proposes to amend
Rule 11.9(c)(6) and Rule 11.13(a)(4)(D)
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 99414
(January 23, 2024), 89 FR 5596 (‘‘Notice’’).
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 99698,
89 FR 18694 (March 14, 2024) (designating April
26, 2024, as the date by which the Commission
shall either approve, disapprove, or institute
proceedings to determine whether to disapprove the
proposed rule change).
6 15 U.S.C. 78s(b)(2)(B).
7 For a more detailed description of the proposed
rule change, including examples, refer to the
Notice, supra note 3.
2 17
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Federal Register / Vol. 89, No. 86 / Thursday, May 2, 2024 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
to modify the treatment of BZX Post
Only Orders priced below a dollar on
the Exchange. BZX Post Only Orders
priced at or above $1.00 will only
remove liquidity if the value of the
execution when removing liquidity
equals or exceeds the value of such
execution if the order instead posted to
the BZX Book and subsequently
provided liquidity, including the
applicable fees charged or rebates
provided. Currently, all BZX Post Only
Orders priced below $1.00 are
automatically treated as orders that
remove liquidity. Under the proposed
rule change, BZX Post Only Orders
priced below $1.00 will be treated in the
same manner as BZX Post Only Orders
priced at or above $1.00 in that BZX
Post Only Orders priced below $1.00
will only remove liquidity if the value
of the overall execution (taking into
account all applicable fees and rebates)
make it economically beneficial for the
order to remove liquidity.
The Exchange also proposes to amend
Rule 11.13(a)(4)(D) to permit NonDisplayed Orders 8 and orders subject to
display-price sliding (collectively,
‘‘Resting Orders’’) which are not
executable at their most aggressive price
due to the presence of a contra-side BZX
Post Only Order to be executed at one
minimum price variation less aggressive
than the order’s most aggressive price.9
Currently, Rule 11.13(a)(4)(D) states
that, for securities priced above $1.00,
incoming orders that are market orders
or limit orders priced more aggressively
than a displayed order on the same side
of the market, the Exchange will execute
the incoming order at, in the case of an
incoming sell order, one-half minimum
price variation less than the price of the
displayed order, and, in the case of an
incoming buy order, at one-half
minimum price variation more than the
price of the displayed order. The
Exchange proposes that for securities
priced below $1.00, incoming orders
that are market orders or limit orders
priced more aggressively than a
displayed order on the same side of the
8 See Rule 11.9(c)(11). A ‘‘Non-Displayed Order’’
is a market or limit order that is not displayed on
the Exchange.
9 See Securities Exchange Act Release No. 64475
(May 12, 2011), 76 FR 28830 (May 18, 2011), SR–
BATS–2011–015 (‘‘Resting Order Execution
Filing’’). The Resting Order Execution Filing
introduced an order handling change for certain
Non-Displayed Orders and orders subject to
display-price sliding that are not executable at
prices equal to displayed orders on the opposite
side of the market (the ‘‘locking price’’). The Resting
Order Execution Filing permits Resting Orders
priced at or above $1.00 to be executed at one-half
minimum price variation less aggressive than the
locking price (for bids) and one-half minimum price
variation more aggressive than the locking price (for
offers), under certain circumstances.
VerDate Sep<11>2014
17:14 May 01, 2024
Jkt 262001
market, the Exchange will execute the
incoming order at, in the case of an
incoming sell order, one minimum price
variation less than the price of the
displayed order, and, in the case of an
incoming buy order, at one minimum
price variation more than the price of
the displayed order.
III. Proceedings To Determine Whether
To Approve or Disapprove SR–
CboeBZX–2024–006, and Grounds for
Disapproval Under Consideration
The Commission is instituting
proceedings pursuant to Section
19(b)(2)(B) of the Act 10 to determine
whether the proposed rule change
should be approved or disapproved.
Institution of such proceedings is
appropriate at this time in view of the
legal and policy issues raised by the
proposed rule change. Institution of
proceedings does not indicate that the
Commission has reached any
conclusions with respect to any of the
issues involved. Rather, as described
below, the Commission seeks and
encourages interested persons to
provide additional comment on the
proposed rule change to inform the
Commission’s analysis of whether to
approve or disapprove the proposed
rule change.
Pursuant to Section 19(b)(2)(B) of the
Act,11 the Commission is providing
notice of the grounds for disapproval
under consideration. As described
above, the Exchange proposes to permit
the use of BZX Post Only Orders at
prices below $1.00. In addition, as
described above, for securities priced
below $1.00, incoming orders that are
market orders or limit orders priced
more aggressively than a displayed
order on the same side of the market,
the Exchange will execute the incoming
order at one minimum price variation
less (more) than the price of the
displayed order for sell (buy) orders.12
In contrast, under the current rule for
securities priced above $1.00, the
incoming order would execute at onehalf minimum price variation less
(more) than the price of the displayed
order for sell (buy) orders.13 The
Commission is instituting proceedings
to allow for additional analysis of, and
input from commenters with respect to,
the proposed rule change’s consistency
with the Act, and in particular, Section
10 15
U.S.C. 78s(b)(2)(B).
11 Id.
12 According to the Exchange, executing an
incoming order at the same price as the price as that
of a displayed order on the same side of the market
would violate the time priority of the displayed
order. See Notice supra note 3, 89 FR at 5599; see
also Exchange Rules 11.12(a) and 11.13(a)(4).
13 See Exchange Rule 11.13(a)(4)(D).
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35867
6(b)(5) of the Act, which requires,
among other things, that the rules of a
national securities exchange be
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, 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.14 In
addition, Sections 6(b)(5) and 6(b)(8) of
the Act, respectively, prohibit the rules
of an exchange from being designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers 15
or imposing any burden on competition
not necessary or appropriate in
furtherance of the purposes of the Act.16
Under the Commission’s Rules of
Practice, the ‘‘burden to demonstrate
that a proposed rule change is
consistent with the [Act] and the rules
and regulations issued thereunder . . .
is on the self-regulatory organization
that proposed the rule change.’’ 17 The
description of a proposed rule change,
its purpose and operation, its effect, and
a legal analysis of its consistency with
applicable requirements must all be
sufficiently detailed and specific to
support an affirmative Commission
finding,18 and any failure of a selfregulatory organization to provide this
information may result in the
Commission not having a sufficient
basis to make an affirmative finding that
a proposed rule change is consistent
with the Act and the applicable rules
and regulations.19
IV. Procedure: Request for Written
Comments
The Commission requests that
interested persons provide written
submissions of their data, views, and
arguments with respect to the issues
identified above, as well as any other
concerns they may have with the
proposal. In particular, the Commission
invites the written views of interested
persons concerning whether the
proposed rule change, is consistent with
Sections 6(b)(5) or any other provision
of the Act, or the rules and regulations
thereunder. Although there do not
appear to be any issues relevant to
approval or disapproval that would be
facilitated by an oral presentation of
data, views, and arguments, the
Commission will consider, pursuant to
14 15
U.S.C. 78f(b)(5).
U.S.C. 78f(b)(5).
16 15 U.S.C. 78f(b)(8).
17 Rule 700(b)(3), Commission Rules of Practice,
17 CFR 201.700(b)(3).
18 See id.
19 See id.
15 15
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02MYN1
35868
Federal Register / Vol. 89, No. 86 / Thursday, May 2, 2024 / Notices
Rule 19b–4 under the Act,20 any request
for an opportunity to make an oral
presentation.21
Interested persons are invited to
submit written data, views, and
arguments regarding whether the
proposed rule change should be
approved or disapproved by May 23,
2024. Any person who wishes to file a
rebuttal to any other person’s
submission must file that rebuttal by
June 6, 2024. The Commission asks that
commenters address the sufficiency of
the Exchange’s statements in support of
the proposal, in addition to any other
comments they may wish to submit
about the proposed rule change.
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–2024–006 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–2024–006. 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
20 17
CFR 240.19b–4.
19(b)(2) of the Act, as amended by the
Securities Acts Amendments of 1975, Public Law
94–29 (Jun. 4, 1975), grants to the Commission
flexibility to determine what type of proceeding—
either oral or notice and opportunity for written
comments—is appropriate for consideration of a
particular proposal by a self-regulatory
organization. See Securities Acts Amendments of
1975, Senate Comm. on Banking, Housing & Urban
Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30
(1975).
khammond on DSKJM1Z7X2PROD with NOTICES
21 Section
VerDate Sep<11>2014
17:14 May 01, 2024
Jkt 262001
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–CboeBZX–2024–006 and should be
submitted by May 23, 2024. Rebuttal
comments should be submitted by June
6, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–09472 Filed 5–1–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100041; File No. SR–MIAX–
2024–25]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Increase Fees for the ToM
Market Data Product and Establish
Fees for the cToM Market Data Product
April 26, 2024.
Pursuant to 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 23,
2024, Miami International Securities
Exchange, LLC (‘‘MIAX’’ 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
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 Fee Schedule (‘‘Fee
Schedule’’) to: (i) amend the fees for the
MIAX Top of Market (‘‘ToM’’) data feed;
and (ii) establish fees for the MIAX
Complex Top of Market (‘‘cToM’’) data
22 17
CFR 200.30–3(a)(57).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
feed. The text of the proposed rule
change is available on the Exchange’s
website at https://www.miaxglobal.com/
markets/us-options/all-optionsexchanges/rule-filings, at MIAX’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: (i) amend
the fees for ToM; and (ii) establish fees
for cToM. The ToM data feed contains
top of book quotations based on options
orders 3 and quotes 4 resting on the
Exchange’s Simple Order Book 5 as well
as administrative messages.6 The cToM
data feed includes the same types of
information as ToM, but for Complex
Orders 7 on the Exchange’s Strategy
Book.8 This information includes the
Exchange’s best bid and offer for a
complex strategy,9 with aggregate size,
3 The term ‘‘order’’ means a firm commitment to
buy or sell option contracts. See Exchange Rule 100.
4 The term ‘‘quote’’ or ‘‘quotation’’ means a bid or
offer entered by a Market Maker that is firm and
may update the Market Maker’s previous quote, if
any. The Rules of the Exchange provide for the use
of different types of quotes, including Standard
quotes and eQuotes, as more fully described in
Exchange Rule 517. A Market Maker may, at times,
choose to have multiple types of quotes active in
an individual option. See Exchange Rule 100.
5 The term ‘‘Simple Order Book’’ means the
Exchange’s regular electronic book of orders and
quotes. See Exchange Rule 518(a)(17).
6 See Fee Schedule, Section 6)a).
7 In sum, a ‘‘Complex Order’’ is ‘‘any order
involving the concurrent purchase and/or sale of
two or more different options in the same
underlying security (the ‘legs’ or ‘components’ of
the complex order), for the same account . . . . ’’
See Exchange Rule 518(a)(5).
8 The ‘‘Strategy Book’’ is the Exchange’s
electronic book of complex orders and complex
quotes. See Exchange Rule 518(a)(19).
9 The term ‘‘complex strategy’’ means a particular
combination of components and their ratios to one
another. New complex strategies can be created as
the result of the receipt of a complex order or by
the Exchange for a complex strategy that is not
E:\FR\FM\02MYN1.SGM
02MYN1
]]>Agencies
[Federal Register Volume 89, Number 86 (Thursday, May 2, 2024)]
[Notices]
[Pages 35866-35868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09472]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100038; File No. SR-CboeBZX-2024-006]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order
Instituting Proceedings To Determine Whether To Approve or Disapprove
Proposed Rule Change To Amend Rule 11.9(c)(6) and Rule 11.13(a)(4)(D)
To Permit the Use of BZX Post Only Orders at Prices Below $1.00
April 26, 2024.
I. Introduction
On January 8, 2024, Cboe BZX Exchange, Inc. (``Exchange'') filed
with the Securities and Exchange Commission (``Commission''), pursuant
to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'')
\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to permit the
use of BZX Post Only Orders at prices below $1.00. The proposed rule
change was published for comment in the Federal Register on January 29,
2024.\3\ On March 8, 2024, pursuant to Section 19(b)(2) of the Act,\4\
the Commission designated a longer period within which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether to disapprove the proposed rule
change.\5\ The Commission did not receive any comments. The Commission
is instituting proceedings pursuant to Section 19(b)(2)(B) of the Act
\6\ to determine whether to approve or disapprove the proposed rule
change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 99414 (January 23,
2024), 89 FR 5596 (``Notice'').
\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 99698, 89 FR 18694
(March 14, 2024) (designating April 26, 2024, as the date by which
the Commission shall either approve, disapprove, or institute
proceedings to determine whether to disapprove the proposed rule
change).
\6\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
II. Description of the Proposed Rule Change 7
---------------------------------------------------------------------------
\7\ For a more detailed description of the proposed rule change,
including examples, refer to the Notice, supra note 3.
---------------------------------------------------------------------------
The Exchange proposes to amend Rule 11.9(c)(6) and Rule
11.13(a)(4)(D)
[[Page 35867]]
to modify the treatment of BZX Post Only Orders priced below a dollar
on the Exchange. BZX Post Only Orders priced at or above $1.00 will
only remove liquidity if the value of the execution when removing
liquidity equals or exceeds the value of such execution if the order
instead posted to the BZX Book and subsequently provided liquidity,
including the applicable fees charged or rebates provided. Currently,
all BZX Post Only Orders priced below $1.00 are automatically treated
as orders that remove liquidity. Under the proposed rule change, BZX
Post Only Orders priced below $1.00 will be treated in the same manner
as BZX Post Only Orders priced at or above $1.00 in that BZX Post Only
Orders priced below $1.00 will only remove liquidity if the value of
the overall execution (taking into account all applicable fees and
rebates) make it economically beneficial for the order to remove
liquidity.
The Exchange also proposes to amend Rule 11.13(a)(4)(D) to permit
Non-Displayed Orders \8\ and orders subject to display-price sliding
(collectively, ``Resting Orders'') which are not executable at their
most aggressive price due to the presence of a contra-side BZX Post
Only Order to be executed at one minimum price variation less
aggressive than the order's most aggressive price.\9\
---------------------------------------------------------------------------
\8\ See Rule 11.9(c)(11). A ``Non-Displayed Order'' is a market
or limit order that is not displayed on the Exchange.
\9\ See Securities Exchange Act Release No. 64475 (May 12,
2011), 76 FR 28830 (May 18, 2011), SR-BATS-2011-015 (``Resting Order
Execution Filing''). The Resting Order Execution Filing introduced
an order handling change for certain Non-Displayed Orders and orders
subject to display-price sliding that are not executable at prices
equal to displayed orders on the opposite side of the market (the
``locking price''). The Resting Order Execution Filing permits
Resting Orders priced at or above $1.00 to be executed at one-half
minimum price variation less aggressive than the locking price (for
bids) and one-half minimum price variation more aggressive than the
locking price (for offers), under certain circumstances.
---------------------------------------------------------------------------
Currently, Rule 11.13(a)(4)(D) states that, for securities priced
above $1.00, incoming orders that are market orders or limit orders
priced more aggressively than a displayed order on the same side of the
market, the Exchange will execute the incoming order at, in the case of
an incoming sell order, one-half minimum price variation less than the
price of the displayed order, and, in the case of an incoming buy
order, at one-half minimum price variation more than the price of the
displayed order. The Exchange proposes that for securities priced below
$1.00, incoming orders that are market orders or limit orders priced
more aggressively than a displayed order on the same side of the
market, the Exchange will execute the incoming order at, in the case of
an incoming sell order, one minimum price variation less than the price
of the displayed order, and, in the case of an incoming buy order, at
one minimum price variation more than the price of the displayed order.
III. Proceedings To Determine Whether To Approve or Disapprove SR-
CboeBZX-2024-006, and Grounds for Disapproval Under Consideration
The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \10\ to determine whether the proposed rule
change should be approved or disapproved. Institution of such
proceedings is appropriate at this time in view of the legal and policy
issues raised by the proposed rule change. Institution of proceedings
does not indicate that the Commission has reached any conclusions with
respect to any of the issues involved. Rather, as described below, the
Commission seeks and encourages interested persons to provide
additional comment on the proposed rule change to inform the
Commission's analysis of whether to approve or disapprove the proposed
rule change.
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\10\ 15 U.S.C. 78s(b)(2)(B).
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Pursuant to Section 19(b)(2)(B) of the Act,\11\ the Commission is
providing notice of the grounds for disapproval under consideration. As
described above, the Exchange proposes to permit the use of BZX Post
Only Orders at prices below $1.00. In addition, as described above, for
securities priced below $1.00, incoming orders that are market orders
or limit orders priced more aggressively than a displayed order on the
same side of the market, the Exchange will execute the incoming order
at one minimum price variation less (more) than the price of the
displayed order for sell (buy) orders.\12\ In contrast, under the
current rule for securities priced above $1.00, the incoming order
would execute at one-half minimum price variation less (more) than the
price of the displayed order for sell (buy) orders.\13\ The Commission
is instituting proceedings to allow for additional analysis of, and
input from commenters with respect to, the proposed rule change's
consistency with the Act, and in particular, Section 6(b)(5) of the
Act, which requires, among other things, that the rules of a national
securities exchange be designed to prevent fraudulent and manipulative
acts and practices, to promote just and equitable principles of trade,
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.\14\ In addition, Sections 6(b)(5)
and 6(b)(8) of the Act, respectively, prohibit the rules of an exchange
from being designed to permit unfair discrimination between customers,
issuers, brokers, or dealers \15\ or imposing any burden on competition
not necessary or appropriate in furtherance of the purposes of the
Act.\16\
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\11\ Id.
\12\ According to the Exchange, executing an incoming order at
the same price as the price as that of a displayed order on the same
side of the market would violate the time priority of the displayed
order. See Notice supra note 3, 89 FR at 5599; see also Exchange
Rules 11.12(a) and 11.13(a)(4).
\13\ See Exchange Rule 11.13(a)(4)(D).
\14\ 15 U.S.C. 78f(b)(5).
\15\ 15 U.S.C. 78f(b)(5).
\16\ 15 U.S.C. 78f(b)(8).
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Under the Commission's Rules of Practice, the ``burden to
demonstrate that a proposed rule change is consistent with the [Act]
and the rules and regulations issued thereunder . . . is on the self-
regulatory organization that proposed the rule change.'' \17\ The
description of a proposed rule change, its purpose and operation, its
effect, and a legal analysis of its consistency with applicable
requirements must all be sufficiently detailed and specific to support
an affirmative Commission finding,\18\ and any failure of a self-
regulatory organization to provide this information may result in the
Commission not having a sufficient basis to make an affirmative finding
that a proposed rule change is consistent with the Act and the
applicable rules and regulations.\19\
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\17\ Rule 700(b)(3), Commission Rules of Practice, 17 CFR
201.700(b)(3).
\18\ See id.
\19\ See id.
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IV. Procedure: Request for Written Comments
The Commission requests that interested persons provide written
submissions of their data, views, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposed rule
change, is consistent with Sections 6(b)(5) or any other provision of
the Act, or the rules and regulations thereunder. Although there do not
appear to be any issues relevant to approval or disapproval that would
be facilitated by an oral presentation of data, views, and arguments,
the Commission will consider, pursuant to
[[Page 35868]]
Rule 19b-4 under the Act,\20\ any request for an opportunity to make an
oral presentation.\21\
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\20\ 17 CFR 240.19b-4.
\21\ Section 19(b)(2) of the Act, as amended by the Securities
Acts Amendments of 1975, Public Law 94-29 (Jun. 4, 1975), grants to
the Commission flexibility to determine what type of proceeding--
either oral or notice and opportunity for written comments--is
appropriate for consideration of a particular proposal by a self-
regulatory organization. See Securities Acts Amendments of 1975,
Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75,
94th Cong., 1st Sess. 30 (1975).
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Interested persons are invited to submit written data, views, and
arguments regarding whether the proposed rule change should be approved
or disapproved by May 23, 2024. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
June 6, 2024. The Commission asks that commenters address the
sufficiency of the Exchange's statements in support of the proposal, in
addition to any other comments they may wish to submit about the
proposed rule change.
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-2024-006 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-2024-006. 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-CboeBZX-2024-006 and should
be submitted by May 23, 2024. Rebuttal comments should be submitted by
June 6, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(57).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-09472 Filed 5-1-24; 8:45 am]
BILLING CODE 8011-01-P
