Notice2022-15662
Self-Regulatory Organizations: MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 2613, Usage of Data Feeds
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Published
July 22, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 140 (Friday, July 22, 2022)</title>
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[Federal Register Volume 87, Number 140 (Friday, July 22, 2022)]
[Notices]
[Pages 43910-43911]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-15662]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95310; File No. SR-PEARL-2022-27]
Self-Regulatory Organizations: MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange
Rule 2613, Usage of Data Feeds
July 18, 2022.
Pursuant to the provisions of Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on July 7, 2022, MIAX PEARL, LLC (``MIAX Pearl''
or the ``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Exchange Rule 2613(a), Usage of Data
Feeds, to disclose that the Exchange will utilize direct data feeds
from MEMX LLC (``MEMX'') when performing order handling, order
execution, routing, and related compliance processes for equity
securities.
The text of the proposed rule change is available on the Exchange's
website at <a href="http://www.miaxoptions.com/rule-filings/pearl">http://www.miaxoptions.com/rule-filings/pearl</a> 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
Exchange Rule 2613 identifies the data feeds that the Exchange
utilizes for the handling, execution, and routing of orders in equity
securities on the Exchange's equity trading platform (``MIAX Pearl
Equities''), as well as for surveillance necessary to monitor
compliance with applicable securities laws and Exchange Rules. The
Exchange currently utilizes MEMX market data from the Consolidated
Quotation System (``CQS'')/UTP Quotation Data Feed (``UQDF'') for these
purposes on MIAX Pearl Equities. The Exchange intends to begin to
utilize MEMX's direct feeds in place of market data from the CQS/UQDF.
Therefore, the Exchange proposes to amend Exchange Rule 2613(a) to
reflect that the Exchange will utilize MEMX's direct feeds in place of
market data from the CQS/UQDF when performing order handling, order
execution, routing, and related compliance processes for equity
securities on MIAX Pearl Equities. The Exchange does not currently
utilize a secondary source for data from MEMX. Once it begins to
utilize direct feeds for data from MEMX, the Exchange will also begin
to utilize CQS/UQDF as a secondary source of data from MEMX on MIAX
Pearl Equities.
Implementation
Due to the technological changes associated with this proposed
change, the Exchange will issue a trading alert publicly announcing the
implementation date of this proposed rule change. The Exchange
anticipates that the implementation date will be in either the third or
fourth quarter of 2022.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\3\ in general, and furthers the objectives of Section 6(b)(5),\4\
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
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general, to protect investors and the public interest.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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The proposal to update Exchange Rule 2613(a) to reflect that the
Exchange will utilize MEMX's direct feeds in place of market data from
the CQS/UQDF on MIAX Pearl Equities will continue to provide market
participants with insight and transparency into which data feeds the
Exchange utilizes when performing order handling, order execution,
routing, and related compliance processes for equity securities. The
Exchange's proposal to utilize MEMX's direct feeds promotes just and
equitable principles of trade because it will allow the Exchange to
receive market data directly from MEMX, thereby potentially enhancing
the performance of its order handling, order execution, routing, and
related compliance processes for equity securities. The proposed rule
changes also remove impediments to and perfects the mechanism of a free
and open market and protects investors and the public interest because
it will continue to ensure that Exchange Rule 2613(a) accurately
reflects the Exchange's sources of market data it utilizes for each
other equities exchange and the Financial Industry Regulatory
Authority, Inc.'s Alternative Display Facility.
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. To the contrary, the
Exchange believes the proposal would enhance competition by enhancing
transparency and enabling market participants to better assess the
quality of MIAX Pearl Equities' execution and routing services by
continuing to provide market participants with insight and transparency
into which data feeds the Exchange utilizes when performing order
handling, order execution, routing, and related compliance processes
for equity securities. The Exchange also believes the proposal would
enhance competition because it will potentially enhance the performance
of its order handling and execution of orders in equity securities by
receiving market data directly from MEMX. Lastly, the proposed rule
change will not impact competition between market participants because
it will affect all market participants equally.
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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \5\ and Rule 19b-4(f)(6) \6\
thereunder.
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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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
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#fb898e979ed6989496969e958f88bb889e98d59c948d"><span class="__cf_email__" data-cfemail="87f5f2ebe2aae4e8eaeae2e9f3f4c7f4e2e4a9e0e8f1">[email protected]</span></a>. Please include
File Number SR-PEARL-2022-27 on the subject line.
Paper Comments
<bullet> 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-2022-27. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-PEARL-2022-27 and should be submitted on
or before August 12, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-15662 Filed 7-21-22; 8:45 am]
BILLING CODE 8011-01-P
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