In the Matter of the MEMX LLC Regarding an Order Disapproving a Proposed Rule Change, as Modified by Amendment No. 1, To Establish a Retail Midpoint Liquidity Program (File No. SR-MEMX-2021-10); Order Scheduling Filing of Statements on Review

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Published

February 7, 2023

Issuing agencies

Securities and Exchange Commission

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<title>Federal Register, Volume 88 Issue 25 (Tuesday, February 7, 2023)</title>
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[Federal Register Volume 88, Number 25 (Tuesday, February 7, 2023)]
[Notices]
[Pages 8008-8009]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-02523]


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SECURITIES AND EXCHANGE COMMISSION

[Securities Exchange Act of 1934; Release No. 34-96788/February 1, 
2023]


In the Matter of the MEMX LLC Regarding an Order Disapproving a 
Proposed Rule Change, as Modified by Amendment No. 1, To Establish a 
Retail Midpoint Liquidity Program (File No. SR-MEMX-2021-10); Order 
Scheduling Filing of Statements on Review

    On August 18, 2021, MEMX LLC (``MEMX'') 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 establish a Retail Midpoint 
Liquidity Program. The proposed rule change was published for comment 
in the Federal Register on September 8, 2021.\3\ On October 19, 2021, 
the Division of Trading and Markets (``Division''), for the Commission 
pursuant to delegated authority,\4\ designated a longer period within 
which to approve the proposed rule change, disapprove the proposed rule 
change, or institute proceedings to determine whether to approve or 
disapprove the proposed rule change.\5\ On December 7, 2021, the 
Division, for the Commission pursuant to delegated authority,\6\ 
instituted proceedings under Section 19(b)(2)(B) of the Act \7\ to 
determine whether to approve or disapprove the proposed rule change.\8\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 92844 (Sept. 1, 
2021), 86 FR 50411 (Sept. 8, 2021).
    \4\ See 17 CFR 200.30-3(a)(31).
    \5\ See Securities Exchange Act Release No. 93383 (Oct. 19, 
2021), 86 FR 58964 (Oct. 25, 2021).
    \6\ See 17 CFR 200.30-3(a)(57).
    \7\ 15 U.S.C. 78s(b)(2)(B).
    \8\ See Securities Exchange Act Release No. 93727 (Dec. 7, 
2021), 86 FR 70874 (Dec. 13, 2021).
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    On January 27, 2022, MEMX filed Amendment No. 1 to the proposed 
rule change, which amended and replaced the proposed rule change as 
originally filed.\9\ On February 14, 2022, the Division, for the 
Commission pursuant to delegated authority,\10\ published for comment 
notice of Amendment No. 1 and designated a longer period for Commission 
action on the proposed rule change, as modified by Amendment No. 1.\11\ 
The Commission received comment letters on the proposed rule 
change.\12\
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    \9\ MEMX provided a copy of Amendment No. 1 to the Commission as 
a comment letter. MEMX also posted Amendment No. 1 to MEMX's 
website. See <a href="https://info.memxtrading.com/wp-content/uploads/2022/01/SR-MEMX-2021-10-Amendment-No.-1.pdf">https://info.memxtrading.com/wp-content/uploads/2022/01/SR-MEMX-2021-10-Amendment-No.-1.pdf</a>. Due to a technological 
error, MEMX's comment letter providing a copy of Amendment No. 1 was 
not posted in the relevant comment file. See Securities Exchange Act 
Release No. 96005 (Oct. 7. 2022), 87 FR 63016 (Oct. 18, 2022). As 
discussed in the order disapproving the proposed rule change 
referred to below, the Commission previously considered Amendment 
No. 1. See also infra note 11 and accompanying text.
    \10\ See 17 CFR 200.30-3(a)(12) and (57).
    \11\ See Securities Exchange Act Release No. 94189 (Feb. 8, 
2022), 87 FR 8305 (Feb. 14, 2022).
    \12\ Comments received on the proposal are available at <a href="https://www.sec.gov/comments/sr-memx-2021-10/srmemx202110.htm">https://www.sec.gov/comments/sr-memx-2021-10/srmemx202110.htm</a>.
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    On May 6, 2022, the Division, for the Commission pursuant to 
delegated authority,\13\ issued an order disapproving the proposed rule 
change, as modified by Amendment No. 1.\14\ On May 10, 2022, the 
Assistant Secretary of the Commission notified MEMX that, pursuant to 
Commission Rule of Practice 431,\15\ the Commission would review the 
Division's action pursuant to delegated authority and that the 
Division's action pursuant to delegated authority was stayed until the 
Commission orders otherwise.\16\
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    \13\ See 17 CFR 200.30-3(a)(12).
    \14\ See Securities Exchange Act Release No. 94866 (May 6, 
2022), 87 FR 29193 (May 12, 2022).
    \15\ See 17 CFR 201.431.
    \16\ See Letter from J. Matthew DeLesDernier, Assistant 
Secretary, Commission, to Anders Franzon, General Counsel, MEMX, 
dated May 10, 2022, available at <a href="https://www.sec.gov/rules/sro/memx/2022/34-94866-letter-from-assistant-secretary-051022.pdf">https://www.sec.gov/rules/sro/memx/2022/34-94866-letter-from-assistant-secretary-051022.pdf</a>.
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    Accordingly, it is ordered, pursuant to Commission Rule of Practice 
431, that on or before March 3, 2023, any party or other person may 
file a statement in support of, or in opposition to, the action made 
pursuant to delegated authority.
    It is further ordered that the automatic stay of delegated action 
pursuant to Commission Rule of Practice 431(e) is hereby discontinued. 
The order disapproving the proposed rule change

[[Page 8009]]

SR-MEMX-2021-10 shall remain in effect pending the Commission's review.

    By the Commission.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-02523 Filed 2-6-23; 8:45 am]
BILLING CODE 8011-01-P


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