Notice2023-05336

Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 7, Section 2 Regarding PRISM Pricing

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Published
March 16, 2023

Issuing agencies

Securities and Exchange Commission

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<title>Federal Register, Volume 88 Issue 51 (Thursday, March 16, 2023)</title>
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[Federal Register Volume 88, Number 51 (Thursday, March 16, 2023)]
[Notices]
[Pages 16291-16295]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-05336]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97109; File No. SR-BX-2023-006]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Options 7, 
Section 2 Regarding PRISM Pricing

March 10, 2023.
    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 March 1, 2023, Nasdaq BX, Inc. (``BX'' or ``Exchange'') 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 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 its Pricing Schedule at Options 7, 
Section 2.
    The text of the proposed rule change is available on the Exchange's 
website at <a href="https://listingcenter.nasdaq.com/rulebook/bx/rules">https://listingcenter.nasdaq.com/rulebook/bx/rules</a>, at the 
principal office of the Exchange, 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.

[[Page 16292]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend BX's Pricing Schedule at Options 7, 
Section 2, BX Options Market-Fees and Rebates. Specifically, BX 
proposes to amend its BX Price Improvement Auction (``PRISM'') \3\ 
pricing to: (1) amend PRISM Order \4\ fees; and (2) specify the pricing 
related to unrelated market or marketable interest. Each change is 
described below.
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    \3\ A Participant may electronically submit for execution an 
order it represents as agent on behalf of a Public Customer, broker 
dealer, or any other entity (``PRISM Order'') against principal 
interest or against any other order (except as provided in sub-
paragraph (i)(F) to Options 3, Section 13) it represents as agent 
(an ``Initiating Order'') provided it submits the PRISM Order for 
electronic execution into the PRISM Auction (``Auction'') pursuant 
to Options 3, Section 13.
    \4\ A PRISM Order is one-side of a PRISM Auction Order that 
represents an agency order on behalf a Public Customer, broker-
dealer or other entity which is paired with an Initiating Order. A 
PRISM Auction Order is a two-sided, paired order comprised of a 
PRISM Order and an Initiating Order. See Options 7, Section 2(5).
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PRISM Orders
    The Exchange proposes to amend PRISM Order fees. Currently, a 
Customer is not assessed a PRISM Order fee and a Lead Market Maker,\5\ 
BX Options Market Maker \6\ and Non-Customer \7\ are assessed a $0.30 
per contract PRISM Order fee.\8\ At this time, the Exchange proposes to 
assess no market participant a PRISM Order fee. Therefore, Customers, 
Lead Market Makers, BX Options Market Makers and Non-Customers would 
pay a PRISM Order fee of $0.00 per contract.
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    \5\ The term ``Lead Market Maker'' or (``LMM'') applies to a 
registered BX Options Market Maker that is approved pursuant to 
Options 2, Section 3 to be the LMM in an options class (options 
classes). See Options 7, Section 1(a).
    \6\ The term ``BX Options Market Maker'' or (``M'') is a 
Participant that has registered as a Market Maker on BX Options 
pursuant to Options 2, Section 1, and must also remain in good 
standing pursuant to Options 2, Section 9. In order to receive 
Market Maker pricing in all securities, the Participant must be 
registered as a BX Options Market Maker in at least one security. 
See Options 7, Section 1(a).
    \7\ The term ``Non-Customer'' shall include a Professional, 
Broker-Dealer and Non-BX Options Market Maker. See Options 7, 
Section 1(a).
    \8\ Today, the PRISM Order fee for Submitted PRISM Order is 
applicable to any contract(s) for which a rebate is provided for 
PRISM Order Traded with PRISM Response.
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    The Exchange also proposes to remove the current language in the 
Pricing Schedule which states, ``BX will apply the rebate to market 
participants that submitted a PRISM Order pursuant to a PRISM Auction 
and the PRISM Order traded with PRISM Response. The PRISM Order fee for 
Submitted PRISM Order will be applicable to any contract(s) for which a 
rebate is provided for PRISM Order Traded with PRISM Response.'' The 
first sentence is unnecessary as the pricing within Options 7, Section 
2(5) clearly reflects the rebates. With this proposal, the second 
sentence is unnecessary as the Exchange proposes to assess no market 
participant a PRISM Order fee.
Unrelated Market or Marketable Interest
    Next, the Exchange proposes to state the manner in which the 
Exchange assesses fees and pays rebates with respect to unrelated 
market or marketable interest received prior to the commencement of a 
PRISM Auction and during a PRISM Auction. Options 7, Section 2(5) does 
not currently detail such pricing.
    Today, when a PRISM Order is a Customer order and executes against 
unrelated market or marketable interest received during a PRISM 
Auction, the Customer order will receive a rebate of $0.35 per contract 
for Penny Classes and $0.70 per contract for Non-Penny Classes, which 
represents the pricing within Options 7, Section 2(5). In this case, 
the unrelated market or marketable interest received during a PRISM 
Auction would be assessed a $0.49 per contract fee for Penny Classes or 
a $0.94 per contract fee for Non-Penny Classes as described in Options 
7, Section 2(5).
    Likewise, today, when a PRISM Order is a Lead Market Maker, BX 
Options Market Maker or Non-Customer order and executes against 
unrelated market or marketable interest received during a PRISM 
Auction, the Lead Market Maker, BX Options Market Maker or Non-Customer 
order will pay no fee, which represents the proposed pricing within 
Options 7, Section 2(5). In this case, the unrelated market or 
marketable interest received during a PRISM Auction would be assessed a 
$0.49 per contract fee for Penny Classes or a $0.94 per contract fee 
for Non-Penny Classes as described in Options 7, Section 2(5).
    In contrast, today, when a PRISM Order is a Customer, Lead Market 
Maker, BX Options Market Maker or Non-Customer order and executes 
against unrelated market or marketable interest received prior to a 
PRISM Auction, the Customer, Lead Market Maker, BX Options Market Maker 
or Non-Customer order would be subject to the Taker Fee within Options 
7, Section 2(1).\9\ The unrelated market or marketable interest 
received prior to a PRISM Auction commenced would be paid the Maker 
Rebate within Options 7, Section 2(1).\10\
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    \9\ BX assesses the following Penny Symbol Taker Fees: $0.50 per 
contract for a Lead Market Maker, Market Maker, Non-Customer, and 
Firm and $0.46 per contract for a Customer. BX assesses the 
following Non-Penny Symbol Taker Fees: $1.10 per contract for a Lead 
Market Maker, Market Maker, Non-Customer, and Firm and $0.79 per 
contract for a Customer.
    \10\ BX pays the following Penny Symbol Maker Rebates: $0.29 per 
contract for a Lead Market Maker, $0.25 per contract for a Market 
Maker (except that the Maker Rebate for Lead Market Makers and 
Market Makers will be $0.22 per contract in SPY and $0.42 per 
contract in AAPL and QQQ), $0.12 per contract for a Non-Customer and 
Firm, and $0.30 per contract for a Customer. BX pays the following 
Non-Penny Symbol Maker Rebates: $0.45 per contract for a Lead Market 
Maker, $0.40 per contract for a Market Maker, $0.45 per contract for 
a Non-Customer and Firm, and $0.90 per contract for a Customer 
(except that Customer orders will receive a $0.45 per contract Non-
Penny Symbol Maker Rebate if the quantity of transactions where the 
contra-side is also a Customer is greater than 50% of Participant's 
total Customer Non-Penny Symbol volume which adds liquidity in that 
month).
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    Interest resting on the Exchange's order book, whether received 
prior to the commencement of a PRISM auction or during a PRISM auction, 
would be allocated in accordance within the PRISM Auction in accordance 
with BX Options 3, Section 13(ii)(E) and (F).
    The Exchange applies the order book pricing within Options 7, 
Section 2(1) to interest received prior to the PRISM Auction, which is 
considered unrelated market or marketable interest for purposes of the 
PRISM Auction, because the Exchange's order book pricing within Options 
7, Section 2(1) seeks to pay rebates to Participants posting liquidity 
to the order book (makers of liquidity) and assess fees to Participants 
removing liquidity from the order book (takers of liquidity). Interest 
which rested on the order book prior to the commencement of a PRISM 
Auction will be paid a Maker Rebate because the BX Participant who 
submitted the interest, similar to other market participants who posted 
liquidity on the order book, would be considered a maker of liquidity. 
The BX Participant would have been aware \11\ that no PRISM Auction was 
in progress at the time the interest was posted to the order book. The 
Exchange notes that at the time the interest was submitted to the order 
book, the BX Participant would have known \12\ that there was no 
ongoing PRISM Auction and would not expect to be subject to the PRISM

[[Page 16293]]

pricing. The Exchange seeks to reward BX Participants who provide 
liquidity to the order book by paying rebates. The Exchange's proposal 
to pay Maker Rebates to unrelated market or marketable interest that 
posted to the order book prior to the commencement of a PRISM Auction 
aligns with the Exchange's goals of attracting liquidity to the order 
book and uniformly pays similarly situated BX Participants a Maker 
Rebate. Further, in this scenario the PRISM Order that executes against 
the unrelated market or marketable interest that posted to the order 
book prior to the commencement of a PRISM Auction would be subject to 
the Taker Fee pricing within Options 7, Section 2(1) because the PRISM 
Order removed liquidity from the order book. This is consistent with 
the pricing assessed to any other Participant that removed liquidity 
from BX's order book as they would be similarly assessed the Taker Fee 
pricing within Options 7, Section 2(1).
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    \11\ BX Participants become aware of ongoing PRISM Auctions as 
BX disseminates a PRISM Auction Notification or ``PAN'' when the 
Exchange receives a PRISM Order for Auction processing. The PAN 
details the price, side, size, and options series of the PRISM Order 
over the BX Depth Feed and the Exchange's Specialized Quote Feed. 
See BX Options 3, Section 13(ii)(A)(2).
    \12\ See note 10 above.
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    In contrast, the Exchange applies PRISM pricing within Options 7, 
Section 2(5) to the unrelated market or marketable interest when 
interest arrived during a PRISM Auction. The Exchange seeks to 
incentivize Participants to submit PRISM Auction Orders to receive a 
guaranteed execution, potential price improvement, and Customer 
rebates. BX Participants submitting interest to the order book during a 
PRISM Auction are aware \13\ that they may be allocated in the PRISM 
Auction. The Exchange assesses the PRISM pricing in Options 7, Section 
2(5) in the same manner that responders to the PRISM Auction are 
assessed fees for their PAN responses. The unrelated market or 
marketable interest that received an allocation within the PRISM 
Auction would be uniformly subject to the same fees as those BX 
Participants who submitted PAN responses and were allocated, thereby 
receiving a guaranteed execution and potential price improvement. The 
Exchange's PRISM pricing assesses fees to PRISM PAN responses and 
unrelated market or marketable interest that allocated in the PRISM 
Auction and rewards those BX Participants with a guaranteed execution 
and potential price improvement. The response fees assessed by the 
Exchange are intended to fund the Customer rebates paid by the Exchange 
which seek to incentivize increased Customer order flow to the PRISM 
Auction.
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    \13\ See note 10 above.
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    The Exchange's pricing models for the order book and PRISM Auction 
each seek to attract liquidity to BX and reward Participants 
differently for the order flow. To this end, the Exchange's pricing 
considers the manner in which orders interact with the PRISM Auction 
based on the timing of when the order entered the order book. The 
Exchange's pricing is consistent with its current practice of assigning 
the applicable pricing for auctions versus order book pricing depending 
on how and when the order was submitted to the Exchange.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\14\ in general, and furthers the objectives of 
Sections 6(b)(4) and 6(b)(5) of the Act,\15\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees, and 
other charges among members and issuers and other persons using any 
facility, and is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(4) and (5).
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    The proposed changes to its Pricing Schedule are reasonable in 
several respects. As a threshold matter, the Exchange is subject to 
significant competitive forces in the market for options transaction 
services that constrain its pricing determinations in that market. The 
fact that this market is competitive has long been recognized by the 
courts. In NetCoalition v. Securities and Exchange Commission \16\ 
(``NetCoalition''), the D.C. Circuit stated, ``[n]o one disputes that 
competition for order flow is `fierce.' . . . As the SEC explained, 
`[i]n the U.S. national market system, buyers and sellers of 
securities, and the broker-dealers that act as their order-routing 
agents, have a wide range of choices of where to route orders for 
execution'; [and] `no exchange can afford to take its market share 
percentages for granted' because `no exchange possesses a monopoly, 
regulatory or otherwise, in the execution of order flow from broker 
dealers'. . . .'' \17\
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    \16\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
    \17\ Id. at 539 (quoting Securities Exchange Act Release No. 
59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008) 
(SR-NYSEArca-2006-21)).
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    Numerous indicia demonstrate the competitive nature of this market. 
For example, clear substitutes to the Exchange exist in the market for 
options transaction services. The Exchange is only one of sixteen 
options exchanges to which market participants may direct their order 
flow. Within this environment, market participants can freely and often 
do shift their order flow among the Exchange and competing venues in 
response to changes in their respective pricing schedules. Within the 
foregoing context, the proposal represents a reasonable attempt by the 
Exchange to attract additional order flow to the Exchange and increase 
its market share relative to its competitors.
PRISM Orders
    The Exchange's proposal to amend PRISM Order fees so that no market 
participant pays a PRISM Order fee is reasonable, equitable and not 
unfairly discriminatory as the Exchange proposes to assess no market 
participant a PRISM Order fee. Customers, Lead Market Makers, BX 
Options Market Makers and Non-Customers would uniformly pay no PRISM 
Order fees.
    The Exchange's proposal to remove the current language in the 
Pricing Schedule which states, ``BX will apply the rebate to market 
participants that submitted a PRISM Order pursuant to a PRISM Auction 
and the PRISM Order traded with PRISM Response. The PRISM Order fee for 
Submitted PRISM Order will be applicable to any contract(s) for which a 
rebate is provided for PRISM Order Traded with PRISM Response'' is 
reasonable, equitable and not unfairly discriminatory as the language 
is not necessary specifically in light of the Exchange's proposal to 
assess no market participant a PRISM Order fee.
Unrelated Market or Marketable Interest
    The Exchange's proposal to state the manner in which the Exchange 
prices unrelated market or marketable interest received prior to the 
commencement of a PRISM Auction is reasonable because the Exchange's 
order book pricing within Options 7, Section 2(1) seeks to pay rebates 
to Participants posting liquidity to the order book (makers of 
liquidity) and assesses fees to Participants removing liquidity from 
the order book (takers of liquidity). Interest which rested on the 
order book prior to the commencement of a PRISM Auction will be paid a 
Maker Rebate because the BX Participant who submitted the interest, 
similar to other market participants who posted liquidity on the order 
book, would be considered a maker of liquidity. The BX Participant 
would have been aware that no PRISM Auction was in progress at the time 
the interest was posted to the order book.\18\ The Exchange notes that 
at the time the interest was submitted to the order book, the BX 
Participant would have

[[Page 16294]]

known \19\ that there was no ongoing PRISM Auction and would not expect 
to be subject to the PRISM pricing. The Exchange seeks to reward BX 
Participants who provide liquidity to the order book by paying rebates. 
The Exchange's proposal to pay Maker Rebates to unrelated market or 
marketable interest that posted to the order book prior to the 
commencement of a PRISM Auction aligns with the Exchange's goals of 
attracting liquidity to the order book and uniformly pays similarly 
situated BX Participants a Maker Rebate. Further, in this scenario the 
Exchange believes that it is reasonable to assess the PRISM Order that 
executes against the unrelated market or marketable interest that 
posted to the order book prior to the commencement of a PRISM Auction 
the Taker Fee pricing within Options 7, Section 2(1) because the PRISM 
Order removed liquidity from the order book. This is consistent with 
the pricing assessed to any other Participant that removed liquidity 
from BX's order book as they would be uniformly assessed the Taker Fee 
pricing within Options 7, Section 2(1). The Taker Fee pricing within 
Options 7, Section 2(1) funds the Maker Rebates within Options 7, 
Section 2(1). BX pays Maker Rebates to attract order flow to BX and all 
Participants may interact with this order flow.
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    \18\ See note 5 above.
    \19\ BX Participants become aware of ongoing PRISM Auctions as 
BX disseminates a PRISM Auction Notification or ``PAN'' when the 
Exchange receives a PRISM Order for Auction processing. The PAN 
details the price, side, size, and options series of the PRISM Order 
over the BX Depth Feed and the Exchange's Specialized Quote Feed. 
See BX Options 3, Section 13(ii)(A)(2).
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    The Exchange's proposal to state the manner in which the Exchange 
prices unrelated market or marketable interest received prior to the 
commencement of a PRISM Auction is equitable and not unfairly 
discriminatory because all BX Participants who submitted unrelated 
market or marketable interest which rested on the order book prior to 
the commencement of a PRISM Auction will be uniformly paid a Maker 
Rebate. The Exchange's proposal would treat BX Participants who 
submitted unrelated market or marketable interest which rested on the 
order book prior to the commencement of a PRISM Auction in the same 
manner as other BX Participants who posted liquidity on the order book 
as they would both be considered makers of liquidity. Further, all 
Participants who submitted a PRISM Order that executed against the 
unrelated market or marketable interest that posted to the order book 
prior to the commencement of a PRISM Auction would be uniformly 
assessed a Taker Fee. The Exchange's proposal would treat BX 
Participants who submitted PRISM Order that executed against the 
unrelated market or marketable interest that posted to the order book 
prior to the commencement of a PRISM Auction in the same manner as 
other BX Participants who removed liquidity from the order book as they 
would both be considered takers of liquidity.
    The Exchange's proposal to state the manner in which the Exchange 
prices unrelated market or marketable interest received during a PRISM 
Auction is reasonable because the Exchange seeks to incentivize 
Participants to submit PRISM Auction Orders to receive a guaranteed 
execution, potential price improvement, and Customer rebates. BX 
Participants submitting interest to the order book during a PRISM 
Auction are aware \20\ that they may be allocated in the PRISM Auction. 
The Exchange assesses the PRISM pricing in Options 7, Section 2(5) in 
the same manner that responders to the PRISM Auction are assessed fees 
for their PAN responses. The unrelated market or marketable interest 
that received an allocation within the PRISM Auction would be uniformly 
subject to the same fees as those BX Participants who submitted PAN 
responses and were allocated, thereby receiving a guaranteed execution 
and potential price improvement. The Exchange's PRISM pricing assesses 
fees to PRISM PAN responses and unrelated market or marketable interest 
that allocated in the PRISM Auction and rewards those BX Participants 
with a guaranteed execution and potential price improvement. The 
response fees assessed by the Exchange are intended to fund the 
Customer rebates paid by the Exchange which seek to incentivize 
increased Customer order flow to the PRISM Auction.
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    \20\ See note 10 above.
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    The Exchange's proposal to state the manner in which the Exchange 
prices unrelated market or marketable interest received during a PRISM 
Auction is equitable and not unfairly discriminatory because all BX 
Participants who submitted unrelated market or marketable interest 
which rested on the order book during a PRISM Auction would uniformly 
be assessed the same fees. The Exchange's proposal would treat BX 
Participants who submitted unrelated market or marketable interest 
which rested on the order book during a PRISM Auction in the same 
manner as other BX Participants who submitted PAN responses into the 
PRISM Auction and were provided with a guaranteed execution and 
potential price improvement. Further, paying a rebate of $0.35 per 
contract for Penny Classes and $0.70 per contract for Non-Penny Classes 
only to Customer PRISM Orders that executes against unrelated market or 
marketable interest received during a PRISM Auction is equitable and 
not unfairly discriminatory because Customer liquidity is the most 
sought after liquidity among Participants. Customer liquidity benefits 
all market participants by providing more trading opportunities, which 
attracts market makers. An increase in the activity of these market 
participants in turn facilitates tighter spreads, which may cause an 
additional corresponding increase in order flow from other market 
participants.

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 not necessary or appropriate in 
furtherance of the purposes of the Act.
Intermarket Competition
    The proposal does not impose an undue burden on inter-market 
competition. The Exchange believes its proposal remains competitive 
with other options markets and will offer market participants with 
another choice to initiate a price improvement auction. The Exchange 
notes that it operates in a highly competitive market in which market 
participants can readily favor competing venues if they deem fee levels 
at a particular venue to be excessive, or rebate opportunities 
available at other venues to be more favorable. In such an environment, 
the Exchange must continually adjust its fees to remain competitive 
with other exchanges. Because competitors are free to modify their own 
fees in response, and because market participants may readily adjust 
their order routing practices, the Exchange believes that the degree to 
which fee changes in this market may impose any burden on competition 
is extremely limited.
Intramarket Competition
    The Exchange's proposal to state the manner in which the Exchange 
prices unrelated market or marketable interest received prior to the 
commencement of a PRISM Auction does not impose an undue burden on 
competition because all BX Participants who submitted unrelated market 
or marketable interest which rested on the order book prior to the 
commencement of a PRISM Auction will be uniformly paid a Maker Rebate.

[[Page 16295]]

The Exchange's proposal would treat BX Participants who submitted 
unrelated market or marketable interest which rested on the order book 
prior to the commencement of a PRISM Auction in the same manner as 
other BX Participants who posted liquidity on the order book as they 
would both be considered makers of liquidity. Further, all Participants 
who submitted a PRISM Order that executed against the unrelated market 
or marketable interest that posted to the order book prior to the 
commencement of a PRISM Auction would be uniformly assessed a Taker 
Fee. The Exchange's proposal would treat BX Participants who submitted 
PRISM Order that executed against the unrelated market or marketable 
interest that posted to the order book prior to the commencement of a 
PRISM Auction in the same manner as other BX Participants who removed 
liquidity from the order book as they would both be considered takers 
of liquidity.
    The Exchange's proposal to state the manner in which the Exchange 
prices unrelated market or marketable interest received during a PRISM 
Auction does not impose an undue burden on competition because all BX 
Participants who submitted unrelated market or marketable interest 
which rested on the order book during a PRISM Auction would uniformly 
be assessed the same fees. The Exchange's proposal would treat BX 
Participants who submitted unrelated market or marketable interest 
which rested on the order book during a PRISM Auction in the same 
manner as other BX Participants who submitted PAN responses into the 
PRISM Auction and were provided with a guaranteed execution and 
potential price improvement. Further, paying a rebate of $0.35 per 
contract for Penny Classes and $0.70 per contract for Non-Penny Classes 
only to Customer PRISM Orders that executes against unrelated market or 
marketable interest received during a PRISM Auction does not impose an 
undue burden on competition because Customer liquidity is the most 
sought after liquidity among Participants. Customer liquidity benefits 
all market participants by providing more trading opportunities, which 
attracts market makers. An increase in the activity of these market 
participants in turn facilitates tighter spreads, which may cause an 
additional corresponding increase in order flow from other market 
participants.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act.\21\
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    \21\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    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: (i) 
necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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#4f3d3a232a622c2022222a213b3c0f3c2a2c61282039"><span class="__cf_email__" data-cfemail="e795928b82ca84888a8a82899394a7948284c9808891">[email&#160;protected]</span></a>. Please include 
File Number SR-BX-2023-006 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-BX-2023-006. 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-BX-2023-006 and should be submitted on 
or before April 6, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-05336 Filed 3-15-23; 8:45 am]
BILLING CODE 8011-01-P


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