Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Delay Implementation of a New Connectivity Offering Through Dedicated Cores, 48695-48697 [2024-12465]
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Federal Register / Vol. 89, No. 111 / Friday, June 7, 2024 / Notices
SECURITIES AND EXCHANGE
COMMISSION
SECURITIES AND EXCHANGE
COMMISSION
[Release No.: 34–100264]
[Release No. 34–100260; File No. SR–
CboeEDGX–2024–031]
Public Availability of the Securities and
Exchange Commission’s Fiscal Year
(FY) 2021 Service Contract Inventory
Securities and Exchange
Commission.
AGENCY:
ACTION:
Notice.
June 3, 2024.
In accordance with section
743 of division C of the Consolidated
Appropriations Act of 2010, the SEC is
publishing this notice to advise the
public of the availability of the FY2021
Service Contract Inventory (SCI) along
with the FY2022 SCI Planned Analysis.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Direct questions regarding the service
contract inventory to Vance Cathell,
Director Office of Acquisitions
202.551.8385 or CathellV@sec.gov.
SUPPLEMENTARY INFORMATION:
The SCI provides information on
FY2021 actions over $150,000 for
service contracts. The inventory
organizes the information by function to
show how SEC distributes contracted
resources throughout the agency. The
SEC developed the inventory per
guidance issued by the Office of
Management and Budget’s Office of
Federal Procurement Policy (OFPP).
The SCI Analysis for FY2021 provides
information based on the FY 2021
Inventory. Please note that the SEC’s FY
2021 Service Contract Inventory data is
now included in government-wide
inventory available on https://
www.acquisition.gov. The governmentwide inventory can be filtered to display
the inventory data for the SEC. The SEC
has posted the FY 2021 SCI Analysis
and its FY 2022 plans for analyzing data
on the SEC’s homepage at https://
www.sec.gov/about/secreports.shtml
and https://www.sec.gov/open.
Dated: June 4, 2024.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–12527 Filed 6–6–24; 8:45 am]
ddrumheller on DSK120RN23PROD with NOTICES1
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Delay
Implementation of a New Connectivity
Offering Through Dedicated Cores
BILLING CODE 8011–01–P
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 May 31,
2024, Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) proposes to
delay implementation of a new
connectivity offering.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
options/regulation/rule_filings/edgx/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
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48695
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to delay the
implementation of Dedicated Cores. The
Exchange previously filed SR–
CboeEDGX–2024–026 to establish
Dedicated Cores effective June 3, 2024.5
By way of background, SR–
CboeEDGX–2024–026 proposed to
introduce a new connectivity offering
relating to the use of Dedicated Cores.
Historically, Central Processing Units
(‘‘CPU Cores’’) have been shared by
logical order entry ports (i.e., multiple
logical ports from multiple firms may
connect to a single CPU Core). The
introduction of Dedicated Cores would
allow Users 6 to assign a single Binary
Order Entry (‘‘BOE’’) logical order entry
port 7 to a single dedicated CPU Core
(‘‘Dedicated Core’’).8 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 will be available to all Users.9 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
5 See Securities Exchange Act Release No. 97658
(May 20, 2024), 89 FR 45930 (May 24, 2024) (SR–
CboeEDGX–2024–026) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
To Introduce a New Connectivity Offering Through
Dedicated Cores) (‘‘SR–CboeEDGX–2024–026’’).
6 A User may be either a Member 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. A
Sponsored Participant may be a Member or nonMember 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.
7 Users may currently connect to the Exchange
using a logical port available through an application
programming interface (‘‘API’’), such as the Binary
Order Entry (‘‘BOE’’) protocol. A BOE logical order
entry port is used for order entry.
8 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.
9 The Exchange intends to submit a separate rule
filing to adopt monthly fees related to the use of
Dedicated Cores.
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48696
Federal Register / Vol. 89, No. 111 / Friday, June 7, 2024 / Notices
management, especially during times of
market volatility and high message
traffic. 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.
SR–CboeEDGX–2024–026 stated that
the rule change would be implemented
on June 3, 2024. At this time, the
Exchange proposes to delay the
implementation of SR–CboeEDGX–
2023–026 [sic] to on or after July 1, 2024
to permit the Exchange additional time
to implement Dedicated Cores in the
Exchange’s data center. The Exchange
would issue a Trade Desk Notice
announcing the exact implementation
date to members and member
organizations.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,10 in general, and furthers the
objectives of Section 6(b)(5) of the Act,11
in particular, in that it is designed 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. The
Exchange’s proposal to delay the
implementation of SR–CboeEDGX–
2024–026 to on or after July 1, 2024 is
consistent with the Act and the
protection of investors and the general
public as it will permit the Exchange
additional time to ensure the Exchange’s
data center can accommodate the
proposed Dedicated Cores. As noted, the
Exchange would issue a Trade Desk
Notice announcing the exact
implementation date to members and
member organizations.
ddrumheller on DSK120RN23PROD with NOTICES1
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange’s proposal to delay the
implementation of SR–CboeEDGX–
2024–026 to on or after July 1, 2024
does not impose any burden on
competition as it will permit the
Exchange additional time to implement
Dedicated Cores.
10 15
11 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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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 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 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 12 and Rule
19b–4(f)(6) thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),15 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. Waiver of the operative delay
would allow the Exchange to
immediately delay the implementation
of SR–CboeEDGX–2024–026 to establish
Dedicated Cores and provide the
Exchange additional time to ensure
readiness at the Exchange’s data center
for implementation of Dedicated Cores
on or after July 1, 2024. 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
12 15
U.S.C. 78s(b)(3)(A)(iii).
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.
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
13 17
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proposed rule change operative upon
filing.16
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) of the Act 17 to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
CboeEDGX–2024–031 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–CboeEDGX–2024–031. 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
16 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).
17 15 U.S.C. 78s(b)(2)(B).
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Federal Register / Vol. 89, No. 111 / Friday, June 7, 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–CboeEDGX–2024–031 and should be
submitted on or before June 28, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–12465 Filed 6–6–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100261; File No. SR–OCC–
2024–007]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Update
the Options Clearing Corporation’s
Schedule of Fees
ddrumheller on DSK120RN23PROD with NOTICES1
June 3, 2024.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule
19b–4 thereunder,2 notice is hereby
given that on May 29, 2024, The
Options Clearing Corporation (‘‘OCC’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared primarily by OCC.
OCC filed the proposed rule change
pursuant to Section 19(b)(3)(A)(ii) 3 of
the Act and Rule 19b–4(f)(2) 4
thereunder so that the proposal was
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
18 17
CFR 200.30–3(a)(12), (59).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
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I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change would
revise OCC’s schedule of fees.
Specifically, OCC proposes to update
the Options Disclosure Document
(‘‘ODD’’) 5 fee and make certain other
changes, including allowing OCC to
charge applicable taxes and removing
language related to authorization stamp
fees, which are no longer in use.
Proposed changes to OCC’s schedule of
fees are included as Exhibit 5 to File
Number SR–OCC–2024–007. Material
proposed to be added to OCC’s schedule
of fees as currently in effect is
underlined and material proposed to be
deleted is marked in strikethrough text.
All capitalized terms not defined herein
have the same meaning as set forth in
the OCC By-Laws and Rules.6
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission,
OCC 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. OCC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
(1) Purpose
The purpose of this filing is to revise
OCC’s schedule of fees. As the sole
clearing agency for standardized equity
options listed on national securities
exchanges registered with the
Commission, and with respect to OCC’s
clearance and settlement of futures and
stock loan transactions, OCC maintains
policies and procedures to manage the
risks borne by OCC as a central
counterparty. One such risk that OCC
manages is general business risk—that
5 The ODD is written to meet the requirements of
Rule 9b–1 under the Exchange Act that requires the
U.S. options markets to prepare, and brokerage
firms to distribute, a document that describes the
characteristics of options and the risks to investors
of maintaining positions in options. More
specifically, such document will include
information pertaining to the mechanics of
exercising the options, the risks of being a holder
or writer of the options, and the market or markets
in which the options are traded, among other items
identified in Rule 9b–1(c). See 17 CFR 240.9b–1.
6 OCC’s By-Laws and Rules can be found on
OCC’s public website: https://www.theocc.com/
Company-Information/Documents-and-Archives/
By-Laws-and-Rules.
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48697
is, the risk of potential impairment to
OCC’s financial position resulting from
a decline in revenues or an increase in
expenses. To manage this risk and help
to ensure that OCC can continue
operations and services as a going
concern if general business losses
materialize, OCC has filed, and the
Commission has approved, OCC’s
Capital Management Policy,7 which
provides the framework by which OCC
manages its capital. Amending OCC’s
schedule of fees is one action used by
OCC to manage its capital.
In accordance with the Capital
Management Policy, OCC management
reviews the fee schedule at regularly
scheduled meetings and, considering
factors including, but not limited to,
projected operating expenses, projected
volumes, anticipated cashflows, and
capital needs, recommends to the Board
(or a committee to which the Board has
delegated authority), whether a fee
change should be made. In accordance
with such procedures, OCC
management recommended, and the
Compensation and Performance
Committee of OCC’s Board approved
certain fee changes. As further described
below, these proposed changes are
intended to promote cost management
by facilitating OCC’s ability to break
even on certain costs. Additional
proposed changes are intended to
ensure OCC’s schedule of fees remains
current and clear.
ODD Fee Changes
OCC proposes to update the fee
charged for a printed version of the ODD
to industry participants, including both
Clearing Members and non-Clearing
Members. The Characteristics and Risks
of Standardized Options, also known as
the ODD, explains the characteristics
and risks of exchange traded options.
Broker-dealers are required to distribute
the ODD to customers pursuant to Rule
9b–1 under the Exchange Act.8 Prior to
7 See Order Approving Proposed Rule Change to
Establish OCC’s Persistent Minimum Skin-In-TheGame, Exchange Act Release No. 92038 (May 27,
2021), 86 FR 29861 (June 3, 2021) (SR–OCC–2021–
003); Order Approving Proposed Rule Change, as
Modified by Partial Amendment No. 1, Concerning
a Proposed Capital Management Policy That Would
Support the Option Clearing Corporation’s Function
as a Systemically Important Financial Market
Utility, Exchange Act Release No. 88029 (Jan. 24,
2020), 85 FR 5500 (Jan. 30, 2020) (SR–OCC–2019–
007); see also Notice of Filing of Partial Amendment
No. 1 and Notice of No Objection to Advance
Notice, as Modified by Partial Amendment No. 1,
Concerning a Proposed Capital Management Policy
That Would Support the Option Clearing
Corporation’s Function as a Systemically Important
Financial Market Utility, Exchange Act Release No.
87257 (Oct. 8, 2019), 84 FR 55194 (Oct. 15, 2019)
(SR–OCC–2019–805).
8 17 CFR 240.9b–1.
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]]>Agencies
[Federal Register Volume 89, Number 111 (Friday, June 7, 2024)]
[Notices]
[Pages 48695-48697]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12465]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100260; File No. SR-CboeEDGX-2024-031]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Delay Implementation of a New Connectivity Offering Through Dedicated
Cores
June 3, 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 May 31, 2024, Cboe EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I 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 EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') proposes to
delay implementation of a new connectivity offering.
The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/options/regulation/rule_filings/edgx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to delay the implementation of Dedicated
Cores. The Exchange previously filed SR-CboeEDGX-2024-026 to establish
Dedicated Cores effective June 3, 2024.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 97658 (May 20,
2024), 89 FR 45930 (May 24, 2024) (SR-CboeEDGX-2024-026) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To
Introduce a New Connectivity Offering Through Dedicated Cores)
(``SR-CboeEDGX-2024-026'').
---------------------------------------------------------------------------
By way of background, SR-CboeEDGX-2024-026 proposed to introduce a
new connectivity offering relating to the use of Dedicated Cores.
Historically, Central Processing Units (``CPU Cores'') have been shared
by logical order entry ports (i.e., multiple logical ports from
multiple firms may connect to a single CPU Core). The introduction of
Dedicated Cores would allow Users \6\ to assign a single Binary Order
Entry (``BOE'') logical order entry port \7\ to a single dedicated CPU
Core (``Dedicated Core'').\8\ 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 will be available to all Users.\9\ 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
[[Page 48696]]
management, especially during times of market volatility and high
message traffic. 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.
---------------------------------------------------------------------------
\6\ A User may be either a Member 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. 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.
\7\ Users may currently connect to the Exchange using a logical
port available through an application programming interface
(``API''), such as the Binary Order Entry (``BOE'') protocol. A BOE
logical order entry port is used for order entry.
\8\ 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.
\9\ The Exchange intends to submit a separate rule filing to
adopt monthly fees related to the use of Dedicated Cores.
---------------------------------------------------------------------------
SR-CboeEDGX-2024-026 stated that the rule change would be
implemented on June 3, 2024. At this time, the Exchange proposes to
delay the implementation of SR-CboeEDGX-2023-026 [sic] to on or after
July 1, 2024 to permit the Exchange additional time to implement
Dedicated Cores in the Exchange's data center. The Exchange would issue
a Trade Desk Notice announcing the exact implementation date to members
and member organizations.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\10\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\11\ in particular, in that it is designed 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. The Exchange's proposal to delay the implementation of SR-
CboeEDGX-2024-026 to on or after July 1, 2024 is consistent with the
Act and the protection of investors and the general public as it will
permit the Exchange additional time to ensure the Exchange's data
center can accommodate the proposed Dedicated Cores. As noted, the
Exchange would issue a Trade Desk Notice announcing the exact
implementation date to members and member organizations.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. The Exchange's proposal to delay the implementation of SR-
CboeEDGX-2024-026 to on or after July 1, 2024 does not impose any
burden on competition as it will permit the Exchange additional time to
implement Dedicated Cores.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (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 \12\ and Rule 19b-4(f)(6) thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 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) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ 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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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 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. Waiver of the operative delay would allow the Exchange to
immediately delay the implementation of SR-CboeEDGX-2024-026 to
establish Dedicated Cores and provide the Exchange additional time to
ensure readiness at the Exchange's data center for implementation of
Dedicated Cores on or after July 1, 2024. 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.\16\
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\16\ 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) of the Act \17\ to determine whether the proposed
rule change should be approved or disapproved.
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\17\ 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-CboeEDGX-2024-031 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-CboeEDGX-2024-031. 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
[[Page 48697]]
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-CboeEDGX-2024-031 and should
be submitted on or before June 28, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-12465 Filed 6-6-24; 8:45 am]
BILLING CODE 8011-01-P
