Notice2023-19592
Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment to the Options Order Protection and Locked/Crossed Market Plan To Add MEMX, LLC, as a Participant
Primary source
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Published
September 12, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 175 (Tuesday, September 12, 2023)</title>
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[Federal Register Volume 88, Number 175 (Tuesday, September 12, 2023)]
[Notices]
[Pages 62610-62612]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-19592]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98303; File No. 4-546]
Joint Industry Plan; Notice of Filing and Immediate Effectiveness
of Amendment to the Options Order Protection and Locked/Crossed Market
Plan To Add MEMX, LLC, as a Participant
September 6, 2023.
Pursuant to Section 11A(a)(3) of the Securities Exchange Act of
1934
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(``Act'') \1\ and Rule 608 thereunder,\2\ notice is hereby given that
on August 29, 2023, MEMX, LLC (``MEMX'' or ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') an amendment to the
Options Order Protection and Locked/Crossed Market Plan (``Plan'').\3\
The amendment adds MEMX as a Participant \4\ to the Plan. The
Commission is publishing this notice to solicit comments on the
amendment from interested persons.
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\1\ 15 U.S.C. 78k-1(a)(3).
\2\ 17 CFR 242.608.
\3\ On July 30, 2009, the Commission approved the Plan, which
was proposed by Chicago Board Options Exchange, Incorporated
(``CBOE''), International Securities Exchange, LLC (``ISE''), The
NASDAQ Stock Market LLC (``Nasdaq''), NASDAQ OMX BX, Inc. (``BX''),
NASDAQ OMX PHLX, Inc. (``Phlx''), NYSE Amex, LLC (``NYSE Amex''),
and NYSE Arca, Inc. (``NYSE Arca''). See Securities Exchange Act
Release No. 60405 (July 30, 2009), 74 FR 39362 (August 6, 2009). See
also Securities Exchange Act Release No. 61546 (February 19, 2010),
75 FR 8762 (February 25, 2010) (adding BATS Exchange, Inc.
(``BATS'') as a Participant); 63119 (October 15, 2010), 75 FR 65536
(October 25, 2010) (adding C2 Options Exchange, Incorporated
(``C2'') as a Participant); 66969 (May 12, 2015), 77 FR 29396 (May
17, 2012) (adding BOX Options Exchange LLC (``BOX Options'') as a
Participant); 70763 (October 28, 2013), 78 FR 65740 (November 1,
2013) (adding Topaz Exchange, LLC (``Topaz'') as a Participant);
70762 (October 28, 2013), 78 FR 65733 (November 1, 2013) (adding
MIAX International Securities Exchange, LLC (``MIAX'') as a
Participant); 76823 (January 5, 2016), 81 FR 1260 (January 11, 2016)
(adding EDGX Exchange, Inc. (``EDGX'') as a Participant); 77324
(March 8, 2016), 81 FR 13425 (March 14, 2016) (adding ISE MERCURY,
LLC (``ISE Mercury'') as a Participant); 79896 (January 30, 2017),
82 FR 9264 (February 3, 2017)(adding MIAX Pearl ``Pearl'') as a
Participant); 85229 (March 1, 2019), 84 FR 8347 (March 7, 2019)
(adding MIAX Emerald, LLC (``Emerald'') as a Participant).
\4\ The term ``Participant'' is defined as an Eligible Exchange
whose participation in the Plan has become effective pursuant to
Section 3(c) of the Plan.
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I. Description and Purpose of the Amendment
The Plan requires the options exchanges to establish a framework
for providing order protection and addressing locked and crossed
markets in eligible options classes. The amendment to the Plan adds
MEMX as a Participant. The other Plan Participants are BATS, BOX, BX,
C2, CBOE, EDGX, Emerald, ISE, ISE Gemini, ISE Mercury, MIAX, Nasdaq,
Pearl, Phlx, NYSE MKT, and NYSE Arca. MEMX has submitted an executed
copy of the Plan to the Commission in accordance with the procedures
set forth in the Plan regarding new Participants. Section 3(c) of the
Plan provides for the entry of new Participants to the Plan.
Specifically, Section 3(c) of the Plan provides that an Eligible
Exchange \5\ may become a Participant in the Plan by: (i) executing a
copy of the Plan, as then in effect; (ii) providing each current
Participant with a copy of such executed Plan; and (iii) effecting an
amendment to the Plan, as specified in Section 4(b) of the Plan.\6\
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\5\ Section 2(6) of the Plan defines an ``Eligible Exchange'' as
a national securities exchange registered with the Commission
pursuant to Section 6(a) of the Act, 15 U.S.C. 78f(a), that: (a) is
a ``Participant Exchange'' in the Options Clearing Corporation
(``OCC'') (as defined in OCC By-laws, Section VII); (b) is a party
to the Options Price Reporting Authority (``OPRA'') Plan (as defined
in the OPRA Plan, Section 1); and (c) if the national securities
exchange chooses not to become part to this Plan, is a participant
in another plan approved by the Commission providing for comparable
Trade-Through and Locked and Crossed Market protection. MEMX has
represented that it has met the requirements for being considered an
Eligible Exchange. See letter from Anders Franzon, General Counsel,
MEMX, to Vanessa Countryman, Secretary, Commission, dated August 29,
2023.
\6\ MEMX has represented that it has executed a copy of the
current Plan, amended to include MEMX as a Participant and has sent
each current Participant a copy of the executed Plan. See letter
from Anders Franzon, General Counsel, MEMX, to Vanessa Countryman,
Secretary, Commission, dated August 29, 2023.
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Section 4(b) of the Plan sets forth the process by which an
Eligible Exchange may effect an amendment to the Plan. Specifically, an
Eligible Exchange must: (a) execute a copy of the Plan with the only
change being the addition of the new Participant's name in Section 3(a)
of the Plan; and (b) submit the executed Plan to the Commission. The
Plan then provides that such an amendment will be effective when the
amendment is approved by the Commission or otherwise becomes effective
pursuant to Section 11A of the Act and Rule 608 thereunder.
II. Effectiveness of the Proposed Linkage Plan Amendment
The foregoing Plan amendment has become effective pursuant to Rule
608(b)(3)(iii) \7\ because it has been designated as involving solely
technical or ministerial matters. At any time within sixty days of the
filing of this amendment, the Commission may summarily abrogate the
amendment and require that it be refiled pursuant to paragraph (a)(1)
of Rule 608,\8\ if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or the maintenance of fair and orderly markets, to remove
impediments to, and perfect the mechanisms of, a national market system
or otherwise in furtherance of the purposes of the Act.
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\7\ 17 CFR 242.608(b)(3)(iii).
\8\ 17 CFR 242.608(a)(1).
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III. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the amendment is
consistent with the Act and the rules thereunder. Comments may be
submitted by any of the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#0270776e672f616d6f6f676c7671427167612c656d74"><span class="__cf_email__" data-cfemail="156760797038767a7878707b6166556670763b727a63">[email protected]</span></a>. Please include
file number 4-546 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 4-546. 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="https://www.sec.gov/rules/sro.shtml">https://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 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 4-546 and should be submitted on or before
October 3, 2023.
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(85).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-19592 Filed 9-11-23; 8:45 am]
BILLING CODE 8011-01-P
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