Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Implementation Date of Functionality That Will Provide Members and Clearing Members With the Option To Utilize Additional Credit Risk Settings Under Interpretation and Policy .03 of Rule 11.13 (“Aggregate Credit Risk Checks”), 81956-81958 [2024-23291]
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<![CDATA[
81956
Federal Register / Vol. 89, No. 196 / Wednesday, October 9, 2024 / Notices
Representative: Jennaca D. Upperman;
Comments Due: October 11, 2024.
This Notice will be published in the
Federal Register.
Erica A. Barker,
Secretary.
[FR Doc. 2024–23398 Filed 10–8–24; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101238; File No. SR–
NASDAQ–2024–045]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Designation of a Longer Period for
Commission Action on a Proposed
Rule Change To Modify the Application
of the Minimum Bid Price Compliance
Periods and the Delisting Appeals
Process for Bid Price Non-Compliance
in Listing Rules 5810 and 5815 Under
Certain Circumstances
2024. The Commission is extending this
45-day time period.
The Commission finds it appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the proposed rule change
and the comments received.
Accordingly, the Commission, pursuant
to Section 19(b)(2) of the Act,5
designates November 21, 2024, as the
date by which the Commission shall
either approve or disapprove, or
institute proceedings to determine
whether to disapprove, the proposed
rule change (File No. SR–NASDAQ–
2024–045).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–23287 Filed 10–8–24; 8:45 am]
BILLING CODE 8011–01–P
khammond on DSKJM1Z7X2PROD with NOTICES
October 3, 2024.
On August 6, 2024, The Nasdaq Stock
Market LLC (‘‘Nasdaq’’) 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
modify the application of the minimum
bid price compliance periods and the
delisting appeals process for bid price
non-compliance in Nasdaq Listing Rules
5810 and 5815 under certain
circumstances. The proposed rule
change was published for comment in
the Federal Register on August 23,
2024.3
Section 19(b)(2) of the Act 4 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is October 7,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 100767
(Aug. 19, 2024), 89 FR 68228. Comments on the
proposed rule change are available at: https://
www.sec.gov/comments/sr-nasdaq-2024-045/
srnasdaq2024045.htm.
4 15 U.S.C. 78s(b)(2).
2 17
VerDate Sep<11>2014
17:05 Oct 08, 2024
Jkt 265001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101244; File No. SR–
CboeBYX–2024–035]
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Extend the
Implementation Date of Functionality
That Will Provide Members and
Clearing Members With the Option To
Utilize Additional Credit Risk Settings
Under Interpretation and Policy .03 of
Rule 11.13 (‘‘Aggregate Credit Risk
Checks’’)
October 3, 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
September 26, 2024, Cboe BYX
Exchange, Inc. (the ‘‘Exchange’’ or
‘‘BYX’’) filed with the Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the 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.
5 Id.
6 17
CFR 200.30–3(a)(31).
15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Frm 00077
Fmt 4703
Cboe BYX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) proposes to
extend the implementation date of
functionality that will provide Members
and Clearing Members with the option
to utilize additional credit risk settings
under Interpretation and Policy .03 or
Rule 11.13 (‘‘Aggregate Credit Risk
Checks’’).
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/byx/), 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 is filing this proposal to
extend the implementation date of
functionality providing Members and
Clearing Members with the option to
utilize additional Aggregate Credit Risk
Checks. The functionality relating to
these additional risk settings was
submitted by the Exchange on an
immediately effective basis on May 29,
2024.3
The Aggregate Credit Risk Checks
offered under Interpretation and Policy
.03 or Rule 11.13, provide Members and
Clearing Members with additional,
optional credit risk settings, at the
Market Participant Identifier (‘‘MPID’’)
level and/or to a subset of orders
identified within the MPID level (the
‘‘risk group identifier’’ level) that
authorizes the Exchange to take
automated action if a designated limit
for a Member is breached. These risk
3 See Securities Exchange Act Release No. 100317
(June 11, 2024), 89 FR 51380 (June 17, 2024) (SR–
CboeBYX–2024–017).
1
PO 00000
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Sfmt 4703
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khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 89, No. 196 / Wednesday, October 9, 2024 / Notices
settings will provide Members and
Clearing Members with enhanced
abilities to manage their risk with
respect to orders on the Exchange.
Specifically, the Exchange intends to
offer two aggregate credit risk settings as
follows:
• The ‘‘Aggregate Gross Credit
Exposure Limit’’, which refers to a preestablished maximum daily dollar
amount for purchases and sales across
all symbols, where both purchases and
sales are counted as positive values. For
purposes of calculating the Aggregate
Gross Credit Exposure Limit, both
executed and open orders are included;
and
• The ‘‘Aggregate Net Credit Exposure
Limit’’, which refers to a pre-established
maximum daily dollar amount for
purchases and sales across all symbols,
where purchases are counted as positive
values and sales are counted as negative
values. For purposes of calculating the
Aggregate Net Credit Exposure Limit,
both executed and open orders are
included.
The Exchange initially proposed to
implement the Aggregate Credit Risk
Checks by October 31, 2024. While this
date is not included in the relevant rule
text codifying the Aggregate Credit Risk
Checks, the Exchange separately notates
in its rulebook when it plans to
implement new functionality that was
either immediately effective upon rule
filing, or approved by the SEC.
Estimated implementation dates are
sometimes necessary so because
implementing new functionality
sometimes requires additional time to
develop, test, and deploy, and such
timeline may not always coincide with
the statutory rule filing process. As
such, the Exchange provides estimated
implementation dates to make Members
aware that certain rule text is subject to
amendment post implementation of the
new functionality, as well as to provide
Members with sufficient notice so that
they can make any necessary
technological or operational
adjustments to their systems (if
applicable). However, more time is
needed to design, test, and implement
the Aggregate Credit Ris Checks.
Accordingly, the Exchange proposes to
implement the Aggregate Credit Risk
Checks on or after November 22, 2024.
The Exchange would issue a Trade Desk
Notice announcing the exact
implementation date to Users.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’), in general, and furthers the
VerDate Sep<11>2014
17:05 Oct 08, 2024
Jkt 265001
objectives of Section 6(b) of the Act 4 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 Aggregate Credit Risk
Checks to on or after November 22,
2024, is consistent with the Act and
protection of investors and general
public because it will permit the
Exchange additional time to ensure the
Exchange can properly develop, test,
and deploy the Aggregate Credit Risk
Checks. Moreover, the Aggregate Credit
Risk Checks themselves were previously
approved [sic] by the Commission,5 and
this proposal does not change the
substance of those functionalities. As
noted, the Exchange would issue a
Trade Desk Notice announcing the exact
implementation date to members and
member organizations.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. As noted
above, the purpose of this proposal is
simply to extend the implementation
date for the additional aggregate credit
risk settings so that the Exchange has
additional time for development,
testing, and deployment.
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
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 6 and Rule
19b–4(f)(6) thereunder.7 Because the
proposed rule change does not: (i)
significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
15 U.S.C. 78f(b).
Supra note 3.
6 15 U.S.C. 78s(b)(3)(A)(iii).
7 17 CFR 240.19b–4(f)(6).
4
5
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
81957
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 8 and Rule 19b–4(f)(6)(iii)
thereunder.9
A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),11 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange states that more
time is required to ensure optimal
design, testing, and implementation for
the Aggregate Credit Risk Checks, and
thus, waiver of the operative delay will
provide Exchange with such additional
time. As such, the Commission believes
that waiver of the operative delay is
consistent with the protection of
investors and the public interest
because it would ensure that the
Exchange has extra time to properly
deploy these new aggregate credit risk
functionalities, which is to the benefit of
market participants that will eventually
utilize the Aggregate Credit Risk Checks.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.12
At any time within 60 days of the
filing of this 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) 13 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
15 U.S.C. 78s(b)(3)(A).
17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
13 15 U.S.C. 78s(b)(2)(B).
8
9
E:\FR\FM\09OCN1.SGM
09OCN1
81958
Federal Register / Vol. 89, No. 196 / Wednesday, October 9, 2024 / Notices
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:
• 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–
CboeBYX–2024–035 on the subject line.
Paper Comments
khammond on DSKJM1Z7X2PROD with NOTICES
• 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–CboeBYX–2024–035. 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–CboeBYX–2024–035, and should be
submitted on or before October 30,
2024.
17:05 Oct 08, 2024
[FR Doc. 2024–23291 Filed 10–8–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
VerDate Sep<11>2014
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Vanessa A. Countryman,
Secretary.
Jkt 265001
[Release No. 34–101246; File No. SR–OCC–
2024–014]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing of Proposed Rule Change, as
Modified by Partial Amendment No. 1,
by the Options Clearing Corporation
Concerning Its Process for Adjusting
Certain Parameters in Its Proprietary
System for Calculating Margin
Requirements During Periods When
the Products It Clears and the Markets
It Serves Experience High Volatility
October 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 September 24, 2024, The
Options Clearing Corporation (‘‘OCC’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared primarily by OCC.
On October 1, 2024, OCC filed a partial
amendment (‘‘Partial Amendment No.
1’’) to the proposed rule change.3 The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as modified by Partial
Amendment No. 1 (hereafter the
‘‘proposed rule change’’) from interested
persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
This proposed rule change would
codify OCC’s process for adjusting
certain parameters in its proprietary
system for calculating margin
requirements during periods when the
products OCC clears and the markets it
serves experience high volatility.
Proposed changes to OCC’s Margin
Policy are submitted in Exhibit 5 to File
17 CFR 200.30–3(a)(12), (59).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Partial Amendment No. 1, OCC submitted a
revised Exhibit 3D to SR–OCC–2024–014 without
changing the substance of the proposed rule change.
Partial Amendment No. 1 does not materially alter
the substance of the proposed rule change or raise
any novel regulatory issues.
14
1 15
PO 00000
Frm 00079
Fmt 4703
Sfmt 4703
No. SR–OCC–2024–014. Material
proposed to be added is marked by
underlining and material proposed to be
deleted is marked with strikethrough
text. All terms with initial capitalization
that are not otherwise defined herein
have the same meaning as set forth in
the OCC By-Laws and Rules.4
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
OCC is the sole clearing agency for
standardized equity options listed on
national securities exchanges registered
with the Commission. OCC also clears
certain stock loan and futures
transactions. In its role as a clearing
agency, OCC guarantees the
performance of its Clearing Members for
all transactions cleared by OCC by
becoming the buyer to every seller and
the seller to every buyer (or the lender
to every borrower and the borrower to
every lender, in the case of stock loan
transactions). These clearing activities
could expose OCC to financial risks if a
Clearing Member fails to fulfil its
obligations to OCC. In its role as
guarantor for all transactions cleared
through OCC, one of the more material
risks related to a Clearing Member’s
failure to perform is credit risk arising
from the activity of the Clearing
Members whose performance OCC
guarantees. OCC manages these
financial risks through financial
safeguards, including the collection of
margin collateral from Clearing
Members designed to, among other
things, address the market risk
associated with a Clearing Member’s
positions during the period of time OCC
has determined it would take to
liquidate those positions.
OCC has established a proprietary
system, the System for Theoretical
Analysis and Numerical Simulation
(‘‘STANS’’), that runs various models
used to calculate each Clearing
4 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.
E:\FR\FM\09OCN1.SGM
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]]>Agencies
[Federal Register Volume 89, Number 196 (Wednesday, October 9, 2024)]
[Notices]
[Pages 81956-81958]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23291]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101244; File No. SR-CboeBYX-2024-035]
Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Extend
the Implementation Date of Functionality That Will Provide Members and
Clearing Members With the Option To Utilize Additional Credit Risk
Settings Under Interpretation and Policy .03 of Rule 11.13 (``Aggregate
Credit Risk Checks'')
October 3, 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 September 26, 2024, Cboe BYX Exchange, Inc. (the ``Exchange'' or
``BYX'') filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the 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
Cboe BYX Exchange, Inc. (the ``Exchange'' or ``BYX'') proposes to
extend the implementation date of functionality that will provide
Members and Clearing Members with the option to utilize additional
credit risk settings under Interpretation and Policy .03 or Rule 11.13
(``Aggregate Credit Risk Checks'').
The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/equities/regulation/rule_filings/byx/), 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 is filing this proposal to extend the implementation
date of functionality providing Members and Clearing Members with the
option to utilize additional Aggregate Credit Risk Checks. The
functionality relating to these additional risk settings was submitted
by the Exchange on an immediately effective basis on May 29, 2024.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 100317 (June 11,
2024), 89 FR 51380 (June 17, 2024) (SR-CboeBYX-2024-017).
---------------------------------------------------------------------------
The Aggregate Credit Risk Checks offered under Interpretation and
Policy .03 or Rule 11.13, provide Members and Clearing Members with
additional, optional credit risk settings, at the Market Participant
Identifier (``MPID'') level and/or to a subset of orders identified
within the MPID level (the ``risk group identifier'' level) that
authorizes the Exchange to take automated action if a designated limit
for a Member is breached. These risk
[[Page 81957]]
settings will provide Members and Clearing Members with enhanced
abilities to manage their risk with respect to orders on the Exchange.
Specifically, the Exchange intends to offer two aggregate credit risk
settings as follows:
The ``Aggregate Gross Credit Exposure Limit'', which
refers to a pre-established maximum daily dollar amount for purchases
and sales across all symbols, where both purchases and sales are
counted as positive values. For purposes of calculating the Aggregate
Gross Credit Exposure Limit, both executed and open orders are
included; and
The ``Aggregate Net Credit Exposure Limit'', which refers
to a pre-established maximum daily dollar amount for purchases and
sales across all symbols, where purchases are counted as positive
values and sales are counted as negative values. For purposes of
calculating the Aggregate Net Credit Exposure Limit, both executed and
open orders are included.
The Exchange initially proposed to implement the Aggregate Credit
Risk Checks by October 31, 2024. While this date is not included in the
relevant rule text codifying the Aggregate Credit Risk Checks, the
Exchange separately notates in its rulebook when it plans to implement
new functionality that was either immediately effective upon rule
filing, or approved by the SEC. Estimated implementation dates are
sometimes necessary so because implementing new functionality sometimes
requires additional time to develop, test, and deploy, and such
timeline may not always coincide with the statutory rule filing
process. As such, the Exchange provides estimated implementation dates
to make Members aware that certain rule text is subject to amendment
post implementation of the new functionality, as well as to provide
Members with sufficient notice so that they can make any necessary
technological or operational adjustments to their systems (if
applicable). However, more time is needed to design, test, and
implement the Aggregate Credit Ris Checks. Accordingly, the Exchange
proposes to implement the Aggregate Credit Risk Checks on or after
November 22, 2024. The Exchange would issue a Trade Desk Notice
announcing the exact implementation date to Users.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act''), in general, and
furthers the objectives of Section 6(b) of the Act \4\ 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 Aggregate Credit Risk Checks to on or after November
22, 2024, is consistent with the Act and protection of investors and
general public because it will permit the Exchange additional time to
ensure the Exchange can properly develop, test, and deploy the
Aggregate Credit Risk Checks. Moreover, the Aggregate Credit Risk
Checks themselves were previously approved [sic] by the Commission,\5\
and this proposal does not change the substance of those
functionalities. As noted, the Exchange would issue a Trade Desk Notice
announcing the exact implementation date to members and member
organizations.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ Supra note 3.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. As noted above, the purpose
of this proposal is simply to extend the implementation date for the
additional aggregate credit risk settings so that the Exchange has
additional time for development, testing, and deployment.
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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
Because the proposed rule change does not: (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6)(iii) thereunder.\9\
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6).
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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) \10\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Exchange states that
more time is required to ensure optimal design, testing, and
implementation for the Aggregate Credit Risk Checks, and thus, waiver
of the operative delay will provide Exchange with such additional time.
As such, the Commission believes that waiver of the operative delay is
consistent with the protection of investors and the public interest
because it would ensure that the Exchange has extra time to properly
deploy these new aggregate credit risk functionalities, which is to the
benefit of market participants that will eventually utilize the
Aggregate Credit Risk Checks. Accordingly, the Commission hereby waives
the 30-day operative delay and designates the proposal operative upon
filing.\12\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ For purposes only of waiving the 30-day operative delay,
the Commission has 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 this 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) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(2)(B).
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[[Page 81958]]
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-CboeBYX-2024-035 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-CboeBYX-2024-035. 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-CboeBYX-2024-035, and should
be submitted on or before October 30, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12), (59).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-23291 Filed 10-8-24; 8:45 am]
BILLING CODE 8011-01-P
