Notice2023-21343
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Pricing Schedule at Options 7 To Specify Pricing Related to Unrelated Market or Marketable Interest
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 29, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 188 (Friday, September 29, 2023)</title>
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[Federal Register Volume 88, Number 188 (Friday, September 29, 2023)]
[Notices]
[Pages 67381-67385]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-21343]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98504; File No. SR-MRX-2023-17]
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Pricing Schedule at Options 7 To Specify Pricing Related to Unrelated
Market or Marketable Interest
September 25, 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 September 14, 2023, Nasdaq MRX, LLC (``MRX'' 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 to
specify pricing related to unrelated market or marketable interest.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/mrx/rules">https://listingcenter.nasdaq.com/rulebook/mrx/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.
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 the Exchange's Pricing Schedule at
Options 7 to specify pricing related to unrelated market or marketable
interest. Specifically, the Exchange proposes to specify the current
manner in which the Exchange assesses fees and rebates with respect to
unrelated market or marketable interest received prior to the
commencement of an auction in the Facilitation Mechanism (``FAC''),\3\
Solicited Order Mechanism (``SOL''),\4\ and Price Improvement Mechanism
(``PIM''),\5\ and during such auctions. In addition, the Exchange also
proposes a number of non-substantive amendments to Options 7 that will
bring more clarity to the Exchange's Pricing Schedule. Each change is
discussed below.
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\3\ The Facilitation Mechanism is a process by which an
Electronic Access Member can execute a transaction wherein the
Electronic Access Member seeks to facilitate a block-size order it
represents as agent, and/or a transaction wherein the Electronic
Access Member solicited interest to execute against a block-size
order it represents as agent. Electronic Access Members must be
willing to execute the entire size of orders entered into the
Facilitation Mechanism. See Options 3, Section 11(b). Additionally,
Electronic Access Members may use the Facilitation Mechanism to
execute block-size Complex Orders at a net price. See Options 3,
Section 11(c) for the rules governing complex Facilitation
Mechanism.
\4\ The Solicited Order Mechanism is a process by which an
Electronic Access Member can attempt to execute orders of 500 or
more contracts it represents as agent (the ``Agency Order'') against
contra orders that it solicited. Each order entered into the
Solicited Order Mechanism shall be designated as all-or-none. See
Options 3, Section 11(d). Additionally, Electronic Access Members
may use the Solicited Order Mechanism to execute Complex Orders at a
net price. See Options 3, Section 11(e) for the rules governing
complex Solicited Order Mechanism.
\5\ The Price Improvement Mechanism is a process by which an
Electronic Access Member can provide price improvement opportunities
for a transaction wherein the Electronic Access Member seeks to
facilitate an order it represents as agent, and/or a transaction
wherein the Electronic Access Member solicited interest to execute
against an order it represents as agent. See Options 3, Section 13.
Additionally, Electronic Access Members may use the Price
Improvement Mechanism to execute Complex Orders at a net price. See
Options 3, Section 13(e) for the rules governing complex Price
Improvement Mechanism.
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[[Page 67382]]
Unrelated Interest
As a general rule, today, if an order executed in FAC (``FAC
Order''), SOL (``SOL Order''), or PIM (``PIM Order'') executes against
unrelated market or marketable interest received during an auction, the
Exchange would assess the applicable Crossing Order \6\ pricing in
Section 3, Table 2 and Section 3.A of its Pricing Schedule. If the FAC,
SOL, or PIM Order executes against unrelated market or marketable
interest received prior to an auction, the Exchange would assess
applicable order book pricing in its Pricing Schedule. As discussed
below, the Exchange applies these concepts to unrelated market or
marketable interest in line with Member expectations and to treat
similarly situated Members in a uniform manner. The Exchange notes that
it currently denotes in the Pricing Schedule that it would apply
separate Crossing Order pricing for any contra-side interest submitted
after the commencement of an auction in FAC, SOL, or PIM (which
includes unrelated market and marketable interest received during the
auction) by grouping such interest as Responses to Crossing Orders.\7\
The Exchange further notes that today, it specifies throughout Options
7 how it will price Responses to Crossing Orders.\8\ While the Exchange
has delineated the treatment of unrelated market and marketable
interest received by the Exchange during a FAC, SOL, and PIM auction in
its Pricing Schedule, the Exchange believes that further clarity would
be beneficial to Members as to how the Exchange currently assesses
pricing for such interest received prior to the commencement of the
auction. As such, the Exchange proposes to memorialize these concepts
in its Pricing Schedule by adding new paragraph (d) to Options 7,
Section 1, titled ``Unrelated Market or Marketable Interest Pricing.''
Proposed paragraph (d) would state that the following concepts would
apply to FAC, SOL, and PIM Orders.
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\6\ A ``Crossing Order'' is an order executed in the Exchange's
Facilitation Mechanism, Solicited Order Mechanism, Price Improvement
Mechanism (``PIM'') or submitted as a Qualified Contingent Cross
order. For purposes of this Pricing Schedule, orders executed in the
Block Order Mechanism are also considered Crossing Orders.
\7\ ``Responses to Crossing Order'' is any contra-side interest
(i.e., orders & quotes) submitted after the commencement of an
auction in the Exchange's Facilitation Mechanism, Solicited Order
Mechanism, Block Order Mechanism or Price Improvement Mechanism.
Contra-side interest in this context therefore includes both contra-
side interest submitted specifically in response to an auction
notification, and unrelated market and marketable contra-side
interest submitted to the order book during the auction.
\8\ See Section 3, Table 2 (setting forth regular order fees for
Responses to Crossing Orders except PIM Orders); Section 3.A
(setting forth regular and complex order fees for Responses to PIM
Orders) and Section 4 (setting forth complex order fees for
Responses to Crossing Orders except PIM Orders).
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Specifically, under proposed new paragraph (d), when the FAC Order
or SOL Order executes against unrelated market or marketable interest
received during an auction, the FAC Order or SOL Order will be assessed
the applicable Fee for Crossing Orders in Options 7, Section 3, Table 2
(for regular FAC Orders and SOL Orders) \9\ and applicable Complex
Order fees in Options 7, Section 4 (for complex FAC Orders and SOL
Orders).\10\ The unrelated market or marketable interest received
during an auction will be assessed the applicable fees for Responses to
Crossing Order in Options 7, Section 3, Table 2 (for regular interest)
\11\ and applicable Complex Order fees in Options 7, Section 4 (for
complex interest).\12\
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\9\ Thus the regular FAC and SOL Order would be assessed the
current regular Penny and Non-Penny Symbol fee for Crossing Orders
as follows: $0.20 per contract for a Market Maker, Non-Nasdaq MRX
Market Maker (FarMM), Firm Proprietary/Broker-Dealer, and
Professional Customer, and $0.00 per contract for a Priority
Customer.
\10\ Thus the complex FAC and SOL Order would be assessed the
current complex Penny Symbol fee of $0.35 per contract and complex
Non-Penny Symbol fee of $0.85 per contract for all market
participants except Priority Customers, which do not get assessed a
complex fee.
\11\ Thus, unrelated interest would be assessed the current
regular Penny Symbol fee for Responses to Crossing Orders of $0.50
per contract for all market participants. Further, they would be
assessed the current regular Non-Penny Symbol fee for Responses to
Crossing Orders of $1.10 per contract for all market participants.
\12\ As stated in Options 7, Section 4, the complex order fees
apply to responses to complex FAC and SOL Orders, except complex PIM
Orders, which are subject to separate PIM response fees in Options
7, Section 3.A. Thus, unrelated interest would be assessed the
current complex Penny Symbol fee of $0.35 per contract and complex
Non-Penny Symbol fee of $0.85 per contract for all market
participants except Priority Customers, which do not get assessed a
complex fee.
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When the order executed in PIM (``PIM Order'') executes against
unrelated market or marketable interest received during an auction, the
PIM Order will be assessed the applicable PIM Originating Order fees
\13\ or Break-up Rebates \14\ in Options 7, Section 3.A (for regular
and complex PIM Orders). The unrelated market or marketable interest
received during an auction will be assessed the applicable fees for
Responses to PIM Orders in Options 7, Section 3.A (for regular and
complex interest).\15\
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\13\ Thus both regular and complex PIM Orders would be assessed
the current Penny and Non-Penny Symbol PIM pricing as follows: $0.20
PIM originating order fee for all market participants except
Priority Customers, who do not get assessed this fee, and $0.02 PIM
contra-side order fee for all market participants.
\14\ Break-up Rebates only apply to regular PIM Orders of 500 or
fewer contracts and to complex PIM Orders where the largest leg is
500 or fewer contracts, and are provided for an originating Priority
Customer PIM Order that executes with any response (order or quote)
other than the PIM contra-side order. The Penny Symbol Break-up
Rebate is currently $0.25 per contract for a Priority Customer
originating PIM Order. The Non-Penny Symbol Break-up Rebate is
currently $0.60 per contract for a Priority Customer originating PIM
Order.
\15\ Thus, unrelated interest would be assessed the current
regular and complex Penny Symbol fee for Responses to PIM Orders of
$0.50 per contract for all market participants. Further, they would
be assessed the current regular and complex Non-Penny Symbol fee for
Responses to PIM Orders of $1.10 per contract for all market
participants.
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In contrast, today, when the FAC Order, SOL Order, or PIM Order
executes against unrelated market or marketable interest received prior
to the commencement of an auction, the FAC Order, SOL Order, or PIM
Order would be subject to the applicable taker pricing in Options 7,
Section 3, Table 1 (for regular FAC Orders, SOL Orders, and PIM Orders)
\16\ and the applicable Complex Order fees in Options 7, Section 4 (for
complex FAC Orders, SOL Orders, and PIM Orders).\17\ The unrelated
market or marketable interest received prior to the commencement of an
auction will be assessed the applicable maker pricing in Options 7,
Section 3, Table 1 (for regular interest),\18\ and the applicable
Complex
[[Page 67383]]
Order fees in Options 7, Section 4 (for complex interest).\19\
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\16\ Thus the regular FAC, SOL, and PIM Order would be assessed
the current regular Penny Symbol Taker Fees as follows: $0.50 per
contract for a Market Maker, Non-Nasdaq MRX Market Maker (FarMM),
Firm Proprietary/Broker-Dealer, and Professional Customer
(regardless of tier achieved), $0.15 per contract for a Priority
Customer (Tiers 1-3), and $0.10 per contract for a Priority Customer
(Tier 4). Further, they would be assessed the following regular Non-
Penny Taker Fees: $1.10 per contract for a Market Maker, Non-Nasdaq
MRX Market Maker (FarMM), Firm Proprietary/Broker-Dealer, and
Professional Customer (regardless of tier achieved), $0.35 per
contract for a Priority Customer (Tier 1), $0.25 per contract for a
Priority Customer (Tier 2), $0.15 per contract for a Priority
Customer (Tier 3), and $0.10 per contract for a Priority Customer
(Tier 4).
\17\ Thus the complex FAC, SOL, and PIM Order would be assessed
the current complex Penny Symbol fee of $0.35 per contract and
complex Non-Penny Symbol fee of $0.85 per contract for all market
participants except Priority Customers, which do not get assessed a
complex fee.
\18\ Thus, unrelated interest would be assessed the current
regular Penny Symbol Maker Fees/Rebates as follows: $0.10 per
contract fee for a Market Maker (Tier 1), $0.00 per contract fee for
a Market Maker (Tier 2), $0.05 per contract rebate for a Market
Maker (Tier 3), $0.10 per contract rebate for a Market Maker (Tier
4), $0.47 per contract fee for a Non-Nasdaq MRX Market Maker
(FarMM), Firm Proprietary/Broker-Dealer, and Professional Customer
(regardless of tier achieved), and $0.00 per contract fee for a
Priority Customer (regardless of tier achieved). Further, they would
be assessed the following regular Non-Penny Maker Fees: $0.35 per
contract for a Market Maker (Tier 1), $0.20 per contract for a
Market Maker (Tier 2), $0.15 per contract for a Market Maker (Tier
3), $0.10 per contract for a Market Maker (Tier 4), $0.90 per
contract for a Non-Nasdaq MRX Market Maker (FarMM), Firm
Proprietary/Broker-Dealer, and Professional Customer (regardless of
tier achieved), and $0.00 per contract for a Priority Customer
(regardless of tier achieved).
\19\ Thus, unrelated interest would be assessed the current
complex Penny Symbol fee of $0.35 per contract and complex Non-Penny
Symbol fee of $0.85 per contract for all market participants except
Priority Customers, which do not get assessed a complex fee.
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Unrelated market or marketable interest resting on the Exchange's
order book, whether received prior to the commencement of a FAC, SOL,
or PIM auction or during such auction, would be allocated in accordance
with Options 3, Section 11(b)(4) and (c)(7) (for regular and complex
FAC), Section 11(d)(3) and (e)(4) (for regular and complex SOL), and
Section 13(d) and (e)(5) (for regular and complex PIM).
The Exchange applies order book pricing in accordance with Options
7, Sections 3 and 4 to interest received prior to a FAC, SOL, and PIM
auction that subsequently trades with a FAC, SOL, or PIM Order (which
is considered unrelated market or marketable interest for purposes of
the auction) because the Exchange seeks to treat the Member who
submitted such interest in a similar manner as any other Member who
submits interest to the order book. The Member that submitted such
interest would not have been aware at the time that a FAC, SOL, or PIM
auction was in progress, and therefore would not have expected to be
assessed separate Crossing Order pricing.\20\ In such instances, for
regular interest, the unrelated market or marketable interest that
posted to the order book prior to the commencement of the auction would
be treated as posting liquidity to the order book (makers of liquidity)
and assessed maker pricing in accordance with Options 7, Section 3,
Table 1. The FAC, SOL, and PIM Order that trades against the unrelated
interest would be considered as removing liquidity from the order book
(takers of liquidity) and assessed taker pricing in accordance with
Options 7, Section 3, Table 1. This is consistent with taker pricing
assessed to any Member that removes liquidity from the order book. For
complex interest, the Exchange currently assesses uniform complex order
fees for similarly situated market participants as set forth in Options
7, Section 4, regardless of maker/taker. As such, both the unrelated
market or marketable interest that posted to the complex order book
prior to the commencement of the complex FAC/SOL/PIM auction and the
complex FAC/SOL/PIM Order would be assessed the applicable complex
order fee, consistent with any complex order submitted to the complex
order book.
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\20\ Members become aware of ongoing FAC, SOL, and PIM auctions
as the Exchange disseminates an auction notification in the form of
a ``broadcast message'' when the Exchange receives a FAC, SOL, and
PIM Order for auction processing. The broadcast message is sent by
the Exchange to all Members and includes the series, price, side,
and size of the Agency Order. See Options 3, Sections 11(b)(2),
11(d)(2), and 13(c).
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In contrast, the Exchange applies Crossing Order pricing in Options
7, Sections 3 and 4 to the unrelated market or marketable interest when
the interest arrived during a FAC, SOL, and PIM auction. Members
submitting interest to the order book during one of these auctions are
aware that they may be allocated in the auction.\21\ The Exchange
assesses the applicable response fee in Options 7, Section 3 and
Section 4 to Members submitting such interest in the same manner that
responders to the FAC, SOL, and PIM auction are assessed fees for their
auction responses. In other words, the unrelated market or marketable
interest that received an allocation within the FAC, SOL, or PIM
auction would be uniformly subject to the same fees as those Members
that submitted auction responses and were allocated.
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\21\ See supra note 20.
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The Exchange's pricing models for the regular/complex order book
and FAC/SOL/PIM auctions each seek to attract liquidity to the Exchange
and reward Members differently for the different types of order flow.
To this end, the Exchange's pricing considers the manner in which
orders interact with the FAC/SOL/PIM auction based on the timing of
when the order entered which 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.
Technical Amendments
The Exchange proposes a few technical, non-substantive amendments
throughout Options 7. First, the Exchange proposes to title paragraph
(b) in Options 7, Section 1 as ``Fee Disputes'' and paragraph (c) as
``Definitions'' to more clearly identify the applicable rules within
the Pricing Schedule. The Exchange also proposes to fix a typo in note
5 of Options 7, Section 3, Table 1.
The Exchange further proposes to amend Table 2 of Options 7,
Section 3 by specifying that regular Responses to PIM Orders are
subject to separate pricing in Part A of Section 3.\22\ As discussed
above, PIM pricing is set forth separately in Options 7, Section 3.A.
However, Crossing Orders and Responses to Crossing Orders are defined
to cover PIM Orders and Responses to PIM Orders.\23\ The Exchange
therefore believes that the proposed change will avoid potential
confusion by market participants and investors in how Responses to PIM
Orders are assessed. The Exchange notes that it already specifies in
note 1 of Options 7, Section 3, Table 2 that regular PIM Orders are
subject to separate pricing in Part A of Section 3. Lastly, the
Exchange proposes to fix a punctuation error in note 1 of Options 7,
Section 3, Table 2.
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\22\ See proposed note 2 of Options 7, Section 3, Table 2.
\23\ See supra notes 6 and 7.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\24\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\25\ 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. Further the proposal is
designed to promote just and equitable principles of trade, 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.
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\24\ 15 U.S.C. 78f(b).
\25\ 15 U.S.C. 78f(b)(4) and (5).
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Unrelated Interest
The Exchange believes that its proposal to specify how the Exchange
currently prices unrelated market or marketable interest received is
consistent with the Act because memorializing these concepts in new
paragraph (d) of Options 7, Section 1 will promote greater clarity and
transparency in the rules and make the Pricing Schedule easier to
navigate for market participants. As discussed above, the Exchange
already denotes how unrelated market or marketable interest received
during a FAC, SOL, and PIM auction is priced by grouping such interest
as Responses to Crossing Orders and Responses to PIM Orders today. How
the Exchange prices unrelated market or marketable interest received
prior to a FAC, SOL, and PIM auction, however, is not currently
[[Page 67384]]
detailed in the Exchange's Pricing Schedule. As such, the Exchange
believes that by consolidating and describing these concepts in one
place in the Pricing Schedule, Members can more easily locate the
related rules and avoid any potential investor confusion.
As discussed above, the Exchange will memorialize that it will
assess book pricing for unrelated market or marketable interest
received prior to the commencement of a FAC, SOL, or PIM auction by
stating that such interest would be assessed the applicable maker
pricing (for regular interest) and applicable Complex Order fees (for
complex interest).\26\ The FAC, SOL and PIM Order that such interest
executes against would be assessed applicable taker pricing (for
regular FAC, SOL, and PIM Orders) and applicable Complex Order fees
(for complex FAC, SOL, and PIM Orders).\27\ The Exchange applies order
book pricing in this scenario because at the time the unrelated market
or marketable interest was submitted and posted to the order book,
Members would not have been aware of an ongoing FAC/SOL/PIM auction and
therefore would not expect to be subject to Responses to Crossing Order
fees in Section 3, Table 2 and Responses to PIM Order fees in Section
3.A.\28\ In contrast, the Exchange applies Responses to Crossing Order
fees in Section 3, Table 2 and Responses to PIM Order fees in Section
3.A \29\ to the unrelated market or marketable interest when it arrives
during the FAC/SOL/PIM auction because Members submitting interest to
the order book at that time would be aware that they may be allocated
in the FAC/SOL/PIM auction.\30\ Additionally, the Exchange's pricing
models for the regular/complex order book and FAC/SOL/PIM auctions each
seek to attract liquidity to the Exchange and reward Members
differently for different types of order flow. To this end, the
Exchange's pricing considers the manner in which interest interacts
with the FAC/SOL/PIM auction based on the timing of when such interest
entered which 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.
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\26\ As discussed above, the Exchange currently assesses uniform
complex fees for similarly situated market participants, regardless
of maker/taker. See Options 7, Section 4.
\27\ Id.
\28\ See supra note 20.
\29\ See supra note 12 for discussion of complex FAC/SOL/PIM
response fees.
\30\ See supra note 20.
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Further, the Exchange's proposal to memorialize current practice
that unrelated market or marketable interest received prior to the
commencement of a FAC/SOL/PIM auction would be assessed the applicable
maker pricing (for regular interest) and applicable Complex Order fees
(for complex interest) \31\ is reasonable, equitable, and not unfairly
discriminatory because all Members who submitted such interest that
posted to the order book prior to the commencement of the auction (and
executes against the FAC/SOL/PIM Order) would be uniformly assessed the
same pricing as any other Member who posted liquidity on the order
book. Further, all Members who submitted a FAC/SOL/PIM Order that
executed against such interest would be uniformly assessed the same
pricing as any other Member who removed liquidity from the order book.
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\31\ As discussed above, the Exchange currently assesses uniform
complex fees for similarly situated market participants, regardless
of maker/taker. See Options 7, Section 4.
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Similarly, the Exchange believes that its proposal to specify
current practice that unrelated market or marketable interest received
during a FAC/SOL/PIM auction would be assessed the applicable Crossing
Order pricing as described above is reasonable, equitable, and not
unfairly discriminatory because all Members who submitted such interest
would be uniformly assessed the same pricing as any other Member who
submitted responses into the FAC/SOL/PIM auction.
Technical Amendments
The Exchange believes that adding titles to paragraphs (b) and (c)
of Options 7, Section 1 is consistent with the Act because they will
promote clarity so that market participants can more easily locate the
relevant rules in the Pricing Schedule. The Exchange likewise believes
that fixing the typo in note 5 of Options 7, Section 3, Table 1 and
punctuation error in note 1 of Options 7, Section 3, Table 2 will
promote clarity in the rules and avoid any potential investor
confusion. Similarly, the Exchange believes that specifying in proposed
note 2 of Options 7, Section 3, Table 2 that regular Responses to PIM
Orders are subject to separate pricing in Part A of Section 3 will
avoid any potential investor confusion.
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.
The Exchange does not believe that its proposal would impose an
undue burden on intra-market competition. The pricing of unrelated
interest in the manner described above uniformly treats similarly
situated market participants. Specifically, all Members who submitted
unrelated market or marketable interest that posted to the order book
prior to the commencement of the auction (and executes against the FAC/
SOL/PIM Order) would be uniformly assessed the same pricing as any
other Member who posted liquidity on the order book. All Members who
submitted a FAC/SOL/PIM Order that executed against such interest would
be uniformly assessed the same pricing as any other Member who removed
liquidity from the order book. Additionally, all Members who submitted
unrelated market or marketable interest to the order book during the
FAC/SOL/PIM auction (which ends up participating and executing against
the auction order) would be uniformly assessed the same pricing as any
other Member who submitted responses into the FAC/SOL/PIM auction.
In terms of inter-market competition, the Exchange continues to
believe that the way that it prices unrelated market or marketable
interest remains competitive with other options markets given that the
Exchange's current pricing models for the regular and complex order
books and for FAC/SOL/PIM auctions are all designed to attract order
flow to the Exchange. 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.
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.
[[Page 67385]]
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.\32\ 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.
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\32\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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="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#5a282f363f77393537373f342e291a293f39743d352c"><span class="__cf_email__" data-cfemail="afdddac3ca82ccc0c2c2cac1dbdcefdccacc81c8c0d9">[email protected]</span></a>. Please include
file number SR-MRX-2023-17 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-MRX-2023-17. 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 SR-MRX-2023-17 and should be
submitted on or before October 20, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
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\33\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-21343 Filed 9-28-23; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on September 29, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.