Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Certain Clarifying Changes Related to New Time-In-Force Instructions on MIAX Pearl Equities, 105163-105165 [2024-30781]
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Federal Register / Vol. 89, No. 247 / Thursday, December 26, 2024 / Notices
consider the proposed rule change, the
issues raised therein, and the comments
received. Accordingly, the Commission,
pursuant to Section 19(b)(2) of the
Act,10 designates March 12, 2025, as the
date by which the Commission shall
either approve or disapprove the
proposed rule change, as modified by
Amendment No. 1 (File No. SR–
CboeBZX–2024–055).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024–30689 Filed 12–23–24; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–101977; File No. SR–
PEARL–2024–58]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Make Certain
Clarifying Changes Related to New
Time-In-Force Instructions on MIAX
Pearl Equities
December 19, 2024
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’),2 and Rule 19b–4 thereunder,3
notice is hereby given that on December
10, 2024, MIAX PEARL, LLC (‘‘MIAX
Pearl’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘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.
ddrumheller on DSK120RN23PROD with NOTICES1
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to make
clarifying changes related to new TimeIn-Force (‘‘TIF’’) instructions that were
adopted as part of a recent proposal to
expand the trading hours of its equity
trading platform (referred to herein as
‘‘MIAX Pearl Equities’’).
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxglobal.com/markets/
us-equities/pearl-equities/rule-filings, at
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(57).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
11 17
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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
SECURITIES AND EXCHANGE
COMMISSION
10 15
MIAX Pearl’s principal office, and at the
Commission’s Public Reference Room.
1. Purpose
The Exchange proposes to make
clarifying changes related to new TIF
instructions that were adopted as part of
a recent proposal to expand the trading
hours of MIAX Pearl Equities. The
Exchange recently submitted a proposed
rule change to expand its hours of
operations by adopting both an Early
and Late Trading Session.4 Pursuant to
that proposal,5 the Early Trading
Session would operate from 4:00 a.m.
until 9:30 a.m. Eastern Time. Then the
existing Regular Trading Hours 6 would
follow, which currently operates from
9:30 a.m. until 4:00 p.m. Eastern Time.
Within Regular Trading Hours, the
Exchange also operates the existing
Regular Trading Session,7 which
operates from the completion of the
Exchange’s Opening Process described
in Exchange Rule 2615 until 4:00 p.m.
Eastern Time. The Late Trading Session
would follow and operate from 4:00
p.m. until 8:00 p.m. Eastern Time.
The Exchange currently offers two TIF
instructions, Immediate-Or-Cancel
(‘‘IOC’’) and Regular Hours Only
(‘‘RHO’’), the operation of each are
described under Exchange Rule
2614(b)(1) and (2), respectively. In its
proposal to add the Early and Late
Trading Sessions, among other things,
the Exchange amended its rules to adopt
the following four additional TIF
instructions: Day, Fill-Or-Kill (‘‘FOK’’),
4 See Securities Exchange Act Release No. 101358
(October 16, 2024), 89 FR 84406 (October 22, 2024)
(SR–PEARL–2024–47) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change
To Adopt Both an Early and Late Trading Session
on its Equity Trading Platform).
5 Id.
6 See Exchange Rule 1901.
7 Id.
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105163
Good-‘til Time (‘‘GTT’’), and Good-‘til
Extended Day (‘‘GTX’’). In sum, the Day
TIF is an instruction that may be
attached to an order stating that an order
to buy or sell which, if not executed,
expires at the end of Regular Trading
Hours. The FOK TIF is an instruction
that may be attached to an order stating
that the order is to be executed in its
entirety as soon as it is received and, if
not so executed, cancelled. The GTT TIF
is an instruction that may be attached to
an order specifying the time of day at
which the order expires. Lastly, the GTX
TIF is an instruction that may be
attached to an order to buy or sell
which, if not executed, will be cancelled
by the close of the Late Trading Session.
Like RHO, the TIF instructions of Day,
GTT, and GTX all allow Equity
Members 8 to instruct the Exchange to
post their order to the MIAX Pearl
Equities Book if not executed upon
entry. Also, like IOC, the TIF instruction
of FOK provides that an order be
executed upon entry and not posted to
the MIAX Pearl Equities Book.
Therefore, as part of its proposal to add
the Early and Late Trading Session, the
Exchange amended provisions within
its rules to account for the TIF
instructions where appropriate, such as
adding the TIF instructions of Day, GTT,
and GTX following references to RHO,
or FOK following references to IOC.9
The Exchange now proposes to make
other clarifying changes to its rules to
account for the new TIF instructions
that it inadvertently did not include in
its earlier proposed rule change. As
described below, each of these changes
would ensure the Exchange’s rules
provide for the consistent treatment of
like TIF instructions, provide additional
clarity, and are consistent with the rules
of other national securities exchanges.
The Exchange does not propose to make
any other changes to its rules or to
amend functionality. Each of these
changes are as follows:
• Exchange Rule 2614(a)(1)(ii)
currently provides that a Limit Order
may include a TIF of IOC or RHO. In the
filing to adopt the Early and Late
Trading Sessions and additional TIF
instructions, Exchange Rule
2614(a)(1)(ii) was amended to also
provide that a Limit Order may include
a TIF of FOK, Day, GTT, or GTX.10 The
Exchange now proposes to amend
Exchange Rule 2614(a)(1)(vi) to account
for the new additional TIF instructions
by providing that ‘‘[d]uring a Short Sale
8 The term ‘‘Equity Member’’ is a Member
authorized by the Exchange to transact business on
MIAX Pearl Equities. See Exchange Rule 1901.
9 See supra note 3.
10 Id.
E:\FR\FM\26DEN1.SGM
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ddrumheller on DSK120RN23PROD with NOTICES1
105164
Federal Register / Vol. 89, No. 247 / Thursday, December 26, 2024 / Notices
Period, as defined in Exchange Rule
2614(g)(3)(i), the System will
immediately cancel any portion of an
incoming Limit Order designated as ISO
and short that includes a time-in-force
instruction RHO, Day, GTT, or GTX that
cannot be executed or displayed at its
limit price at the time of entry pursuant
to Rule 201 of Regulation SHO.’’
• In sum, Exchange Rule 2614(c)(7)
provides that Minimum Execution
Quantity (‘‘MEQ’’) is an order
instruction that may be attached to a
non-displayed order requiring the
System to execute the order only to the
extent that a minimum quantity can be
satisfied. Exchange Rule 2614(c)(7)(B)
describes the operation of orders with
an MEQ instruction when resting on the
MIAX Pearl Equities Book. The
Exchange now proposes to amend
Exchange Rule 2614(c)(7)(ii) to account
for the new additional TIF instructions
and provide that ‘‘[w]here there is
insufficient size to satisfy an incoming
order’s minimum quantity condition,
that incoming order with a Minimum
Execution Quantity instruction with a
time-in-force of RHO, Day, GTT, or GTX
will not trade and will be posted on the
MIAX Pearl Equities Book.’’
• Exchange Rule 2614(e) provides for
the cancelation and replacement of an
existing order. The Exchange now
proposes to amend Exchange Rule
2614(e)(1) to include the new additional
TIF instruction of FOK and provide that
‘‘[o]rders may only be cancelled or
replaced if the order has a time-in-force
term other than IOC or FOK and if the
order has not yet been executed.’’
• Exchange Rule 2615(e) describes
how the Exchange re-opens a security
following a halt and provides, in sum,
that the re-opening process would
operate in the same manners as the
Exchange’s Opening Process set forth
under Exchange Rule 2615(a)—(c), with
certain exceptions. One exception is
provided for under Exchange Rule
2615(e)(1) which states that orders with
a TIF instruction of IOC would be
cancelled or rejected, as applicable. The
Exchange proposes to amend Exchange
Rule 2615(e)(1) to include the TIF
instruction of FOK and provide that
‘‘ISOs and orders that include a time-inforce of IOC or FOK be cancelled or
rejected, as applicable.’’
• Exchange Rule 2622 discusses the
Exchange’s mechanisms to comply with
the Limit Up-Limit Down Plan.
Æ First, Exchange Rule
2622(h)(2)(i)5.a. provides that Market
Orders and orders designated IOC will
only be executed at or within the Price
Bands. This provision would be
amended to also provide that orders
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19:37 Dec 23, 2024
Jkt 265001
designated as FOK will only be
executed at or within the Price Bands.
Æ Second, Exchange Rule
2622(h)(3)(B) provides that during any
Operational Halt, the System will accept
all orders, except orders designated as
ISO and orders that include a TIF
instruction of IOC, for queuing and
participation in the Re-Opening Process
pursuant to Rule 2615(e). This provision
would be amended to also provide that
orders that include a TIF instruction of
FOK will not be accepted for queuing
and participation in the Re-Opening
Process pursuant to Rule 2615(e).
Implementation
Due to the technological changes
associated with this proposed change,
the Exchange will issue a trading alert
publicly announcing the
implementation date of the proposed
enhancements to its risk controls set
forth herein. The Exchange anticipates
that the implementation date will be in
the first or second quarter of 2025.11
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Act,12 in general, and furthers the
objectives of Section 6(b)(5),13 in
particular, because it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in regulating, clearing,
settling, processing information with
respect to, and facilitating transactions
in securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Specifically, the Exchange believes the
proposed amendments will remove
impediments to and perfect the
mechanism of a free and open market
and a national market system because
they would provide for the consistent
treatment of like TIF instructions and
are consistent with the rules of other
national securities exchanges.14 The
11 See, e.g., MIAX Pearl Equities—Roll Out of
Extended Hours Trading & Update to Mandatory
FOI and MEO Upgrade Deadline, dated November
13, 2024, available at https://www.miaxglobal.com/
alert/2024/11/13/miax-pearl-equities-roll-outextended-hours-trading-update-mandatory-foi.
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
14 See, e.g., NYSE Arca, Inc. (‘‘NYSE Arca’’) Rule
7.31(i)(3)(C); and Cboe EDGA Exchange, Inc. (‘‘Cboe
EDGA’’) and Cboe EDGX Exchange, Inc. (‘‘Cboe
EDGX’’) Rules 11.8(c)(6). Like NYSE Arca,
Exchange Rule Exchange Rule 2614(c)(7)(ii) lists all
TIF instructions that if offers that allow for an order
to be posted to the order book. While Cboe EDGA
and Cboe EDGX offer the same TIF instructions that
are listed in this proposal, Exchange Rule Exchange
PO 00000
Frm 00200
Fmt 4703
Sfmt 4703
proposed rule change is also consistent
with changes the Exchange proposed in
its earlier filing to adopt the Early and
Late Trading Sessions where it amended
certain Exchange Rules to account for
the additional TIF instructions.15 The
Exchange does not propose any new
changes to functionality, but rather to
provide additional clarity within the
rule text, make the Exchange’s rules
easier to understand, and accurately
reflect Exchange functionality. The
proposed rule changes would, therefore,
help prevent any potential investor
confusion and thus protect investors
and the public interest, as well as
remove impediments to and perfect the
mechanism of a free and open market
and a national market system. The
Exchange also believes that the
proposed rule change is nondiscriminatory as it would apply to all
Equity Members uniformly and all
Equity Members would be treated
equally.
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. The
Exchange believes its proposal will not
impose any burden on inter-market
competition because the proposal
simply seeks to provide for the
consistent treatment of like TIF
instructions, provide market
participants additional clarity within
the Exchange’s Rules, and provide
consistency with the rules of other
national securities exchanges.16 The
proposal is not designed to enhance the
Exchange’s competitive standing, but
rather ensure its rules accurately reflect
functionality. The proposal also does
not seek to amend any functionality
proposed in the Exchange’s previous
proposal to adopt the Early and Late
Trading Sessions.17 The Exchange
believes its proposal will not impose
any burden on intra-market competition
because all orders coupled with the
above listed TIF instructions would be
treated equally under the proposed
amendments.
Rule 2614(a)(1)(vi) lists the TIF instruction while
the Cboe EDGA and Cboe EDGX Rules lack this
additional specificity.
15 See supra note 3.
16 See supra note 13.
17 See supra note 3.
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Federal Register / Vol. 89, No. 247 / Thursday, December 26, 2024 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not:
(i) significantly affect the protection of
investors or the public interest;
(ii) impose any significant burden on
competition; and
(iii) become operative for 30 days
from the date on which it was filed, or
such shorter time as the Commission
may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act and Rule 19b–4(f)(6) thereunder.18
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
ddrumheller on DSK120RN23PROD with NOTICES1
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
PEARL–2024–58 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to file
number SR–PEARL–2024–58. This file
number should be included on the
18 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 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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19:37 Dec 23, 2024
Jkt 265001
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–PEARL–2024–58 and should be
submitted on or before January 16, 2025.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–30781 Filed 12–23–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101956; File No. SR–
NSCC–2024–012]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Modify the Clearing
Agency Operational Risk Management
Framework
December 18, 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 December
11, 2024, National Securities Clearing
19 17
CFR 200.30–3(a)(12), (59).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
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105165
Corporation (‘‘NSCC’’) 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
by the clearing agency. NSCC filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(4) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change consists of
amendments to the Clearing Agency
Operational Risk Management
Framework (‘‘ORM Framework’’ or
‘‘Framework’’) of NSCC and its affiliates
The Depository Trust Company (‘‘DTC’’)
and Fixed Income Clearing Corporation
(‘‘FICC,’’ and together with NSCC and
DTC, the ‘‘Clearing Agencies’’) in order
to reflect recent changes to group names
and make other nonmaterial clarifying
edits.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, the
clearing agency 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
clearing agency has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
1. Purpose
The Clearing Agencies adopted the
ORM Framework 5 to provide an outline
for how each of the Clearing Agencies
manages its operational risks. In this
way, the Framework supports the
Clearing Agencies’ compliance with
Rule 17ad–22(e)(17) under the Act,6 as
described in the Initial Filing. In
addition to setting forth the way each of
the Clearing Agencies addresses these
requirements, the ORM Framework also
contains a section titled ‘‘Framework
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(4).
5 See Securities Exchange Act Release No. 81745
(Sept. 28, 2017), 82 FR 46332 (Oct. 4, 2017) (SR–
DTC–2017–014; SR–NSCC–2017–013; SR–FICC–
2017–017) (‘‘Initial Filing’’).
6 17 CFR 240.17ad–22(e)(17).
4 17
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Agencies
[Federal Register Volume 89, Number 247 (Thursday, December 26, 2024)]
[Notices]
[Pages 105163-105165]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30781]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101977; File No. SR-PEARL-2024-58]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Make Certain
Clarifying Changes Related to New Time-In-Force Instructions on MIAX
Pearl Equities
December 19, 2024
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on December 10, 2024, MIAX PEARL, LLC (``MIAX Pearl'' or
``Exchange'') filed with the Securities and Exchange Commission
(``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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to make clarifying changes related to new
Time-In-Force (``TIF'') instructions that were adopted as part of a
recent proposal to expand the trading hours of its equity trading
platform (referred to herein as ``MIAX Pearl Equities'').
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxglobal.com/markets/us-equities/pearl-equities/rule-filings, at MIAX Pearl's principal office, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to make clarifying changes related to new TIF
instructions that were adopted as part of a recent proposal to expand
the trading hours of MIAX Pearl Equities. The Exchange recently
submitted a proposed rule change to expand its hours of operations by
adopting both an Early and Late Trading Session.\4\ Pursuant to that
proposal,\5\ the Early Trading Session would operate from 4:00 a.m.
until 9:30 a.m. Eastern Time. Then the existing Regular Trading Hours
\6\ would follow, which currently operates from 9:30 a.m. until 4:00
p.m. Eastern Time. Within Regular Trading Hours, the Exchange also
operates the existing Regular Trading Session,\7\ which operates from
the completion of the Exchange's Opening Process described in Exchange
Rule 2615 until 4:00 p.m. Eastern Time. The Late Trading Session would
follow and operate from 4:00 p.m. until 8:00 p.m. Eastern Time.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 101358 (October 16,
2024), 89 FR 84406 (October 22, 2024) (SR-PEARL-2024-47) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Adopt Both an Early and Late Trading Session on its Equity Trading
Platform).
\5\ Id.
\6\ See Exchange Rule 1901.
\7\ Id.
---------------------------------------------------------------------------
The Exchange currently offers two TIF instructions, Immediate-Or-
Cancel (``IOC'') and Regular Hours Only (``RHO''), the operation of
each are described under Exchange Rule 2614(b)(1) and (2),
respectively. In its proposal to add the Early and Late Trading
Sessions, among other things, the Exchange amended its rules to adopt
the following four additional TIF instructions: Day, Fill-Or-Kill
(``FOK''), Good-`til Time (``GTT''), and Good-`til Extended Day
(``GTX''). In sum, the Day TIF is an instruction that may be attached
to an order stating that an order to buy or sell which, if not
executed, expires at the end of Regular Trading Hours. The FOK TIF is
an instruction that may be attached to an order stating that the order
is to be executed in its entirety as soon as it is received and, if not
so executed, cancelled. The GTT TIF is an instruction that may be
attached to an order specifying the time of day at which the order
expires. Lastly, the GTX TIF is an instruction that may be attached to
an order to buy or sell which, if not executed, will be cancelled by
the close of the Late Trading Session.
Like RHO, the TIF instructions of Day, GTT, and GTX all allow
Equity Members \8\ to instruct the Exchange to post their order to the
MIAX Pearl Equities Book if not executed upon entry. Also, like IOC,
the TIF instruction of FOK provides that an order be executed upon
entry and not posted to the MIAX Pearl Equities Book. Therefore, as
part of its proposal to add the Early and Late Trading Session, the
Exchange amended provisions within its rules to account for the TIF
instructions where appropriate, such as adding the TIF instructions of
Day, GTT, and GTX following references to RHO, or FOK following
references to IOC.\9\
---------------------------------------------------------------------------
\8\ The term ``Equity Member'' is a Member authorized by the
Exchange to transact business on MIAX Pearl Equities. See Exchange
Rule 1901.
\9\ See supra note 3.
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The Exchange now proposes to make other clarifying changes to its
rules to account for the new TIF instructions that it inadvertently did
not include in its earlier proposed rule change. As described below,
each of these changes would ensure the Exchange's rules provide for the
consistent treatment of like TIF instructions, provide additional
clarity, and are consistent with the rules of other national securities
exchanges. The Exchange does not propose to make any other changes to
its rules or to amend functionality. Each of these changes are as
follows:
Exchange Rule 2614(a)(1)(ii) currently provides that a
Limit Order may include a TIF of IOC or RHO. In the filing to adopt the
Early and Late Trading Sessions and additional TIF instructions,
Exchange Rule 2614(a)(1)(ii) was amended to also provide that a Limit
Order may include a TIF of FOK, Day, GTT, or GTX.\10\ The Exchange now
proposes to amend Exchange Rule 2614(a)(1)(vi) to account for the new
additional TIF instructions by providing that ``[d]uring a Short Sale
[[Page 105164]]
Period, as defined in Exchange Rule 2614(g)(3)(i), the System will
immediately cancel any portion of an incoming Limit Order designated as
ISO and short that includes a time-in-force instruction RHO, Day, GTT,
or GTX that cannot be executed or displayed at its limit price at the
time of entry pursuant to Rule 201 of Regulation SHO.''
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\10\ Id.
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In sum, Exchange Rule 2614(c)(7) provides that Minimum
Execution Quantity (``MEQ'') is an order instruction that may be
attached to a non-displayed order requiring the System to execute the
order only to the extent that a minimum quantity can be satisfied.
Exchange Rule 2614(c)(7)(B) describes the operation of orders with an
MEQ instruction when resting on the MIAX Pearl Equities Book. The
Exchange now proposes to amend Exchange Rule 2614(c)(7)(ii) to account
for the new additional TIF instructions and provide that ``[w]here
there is insufficient size to satisfy an incoming order's minimum
quantity condition, that incoming order with a Minimum Execution
Quantity instruction with a time-in-force of RHO, Day, GTT, or GTX will
not trade and will be posted on the MIAX Pearl Equities Book.''
Exchange Rule 2614(e) provides for the cancelation and
replacement of an existing order. The Exchange now proposes to amend
Exchange Rule 2614(e)(1) to include the new additional TIF instruction
of FOK and provide that ``[o]rders may only be cancelled or replaced if
the order has a time-in-force term other than IOC or FOK and if the
order has not yet been executed.''
Exchange Rule 2615(e) describes how the Exchange re-opens
a security following a halt and provides, in sum, that the re-opening
process would operate in the same manners as the Exchange's Opening
Process set forth under Exchange Rule 2615(a)--(c), with certain
exceptions. One exception is provided for under Exchange Rule
2615(e)(1) which states that orders with a TIF instruction of IOC would
be cancelled or rejected, as applicable. The Exchange proposes to amend
Exchange Rule 2615(e)(1) to include the TIF instruction of FOK and
provide that ``ISOs and orders that include a time-in-force of IOC or
FOK be cancelled or rejected, as applicable.''
Exchange Rule 2622 discusses the Exchange's mechanisms to
comply with the Limit Up-Limit Down Plan.
[cir] First, Exchange Rule 2622(h)(2)(i)5.a. provides that Market
Orders and orders designated IOC will only be executed at or within the
Price Bands. This provision would be amended to also provide that
orders designated as FOK will only be executed at or within the Price
Bands.
[cir] Second, Exchange Rule 2622(h)(3)(B) provides that during any
Operational Halt, the System will accept all orders, except orders
designated as ISO and orders that include a TIF instruction of IOC, for
queuing and participation in the Re-Opening Process pursuant to Rule
2615(e). This provision would be amended to also provide that orders
that include a TIF instruction of FOK will not be accepted for queuing
and participation in the Re-Opening Process pursuant to Rule 2615(e).
Implementation
Due to the technological changes associated with this proposed
change, the Exchange will issue a trading alert publicly announcing the
implementation date of the proposed enhancements to its risk controls
set forth herein. The Exchange anticipates that the implementation date
will be in the first or second quarter of 2025.\11\
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\11\ See, e.g., MIAX Pearl Equities--Roll Out of Extended Hours
Trading & Update to Mandatory FOI and MEO Upgrade Deadline, dated
November 13, 2024, available at https://www.miaxglobal.com/alert/2024/11/13/miax-pearl-equities-roll-out-extended-hours-trading-update-mandatory-foi.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\12\ in general, and furthers the objectives of Section
6(b)(5),\13\ in particular, because it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. Specifically, the Exchange
believes the proposed amendments will remove impediments to and perfect
the mechanism of a free and open market and a national market system
because they would provide for the consistent treatment of like TIF
instructions and are consistent with the rules of other national
securities exchanges.\14\ The proposed rule change is also consistent
with changes the Exchange proposed in its earlier filing to adopt the
Early and Late Trading Sessions where it amended certain Exchange Rules
to account for the additional TIF instructions.\15\ The Exchange does
not propose any new changes to functionality, but rather to provide
additional clarity within the rule text, make the Exchange's rules
easier to understand, and accurately reflect Exchange functionality.
The proposed rule changes would, therefore, help prevent any potential
investor confusion and thus protect investors and the public interest,
as well as remove impediments to and perfect the mechanism of a free
and open market and a national market system. The Exchange also
believes that the proposed rule change is non-discriminatory as it
would apply to all Equity Members uniformly and all Equity Members
would be treated equally.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
\14\ See, e.g., NYSE Arca, Inc. (``NYSE Arca'') Rule
7.31(i)(3)(C); and Cboe EDGA Exchange, Inc. (``Cboe EDGA'') and Cboe
EDGX Exchange, Inc. (``Cboe EDGX'') Rules 11.8(c)(6). Like NYSE
Arca, Exchange Rule Exchange Rule 2614(c)(7)(ii) lists all TIF
instructions that if offers that allow for an order to be posted to
the order book. While Cboe EDGA and Cboe EDGX offer the same TIF
instructions that are listed in this proposal, Exchange Rule
Exchange Rule 2614(a)(1)(vi) lists the TIF instruction while the
Cboe EDGA and Cboe EDGX Rules lack this additional specificity.
\15\ See supra note 3.
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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. The Exchange believes its
proposal will not impose any burden on inter-market competition because
the proposal simply seeks to provide for the consistent treatment of
like TIF instructions, provide market participants additional clarity
within the Exchange's Rules, and provide consistency with the rules of
other national securities exchanges.\16\ The proposal is not designed
to enhance the Exchange's competitive standing, but rather ensure its
rules accurately reflect functionality. The proposal also does not seek
to amend any functionality proposed in the Exchange's previous proposal
to adopt the Early and Late Trading Sessions.\17\ The Exchange believes
its proposal will not impose any burden on intra-market competition
because all orders coupled with the above listed TIF instructions would
be treated equally under the proposed amendments.
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\16\ See supra note 13.
\17\ See supra note 3.
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[[Page 105165]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
(i) significantly affect the protection of investors or the public
interest;
(ii) impose any significant burden on competition; and
(iii) become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act and Rule
19b-4(f)(6) thereunder.\18\
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\18\ 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 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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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 to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-PEARL-2024-58 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-PEARL-2024-58. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-PEARL-2024-58 and should be
submitted on or before January 16, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12), (59).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-30781 Filed 12-23-24; 8:45 am]
BILLING CODE 8011-01-P