Notice2023-24270
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules 2614(a)(1)(ix) and 2618(b)(1) To Amend Certain Risk Controls When Trading Equity Securities on MIAX Pearl Equities
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
November 2, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 211 (Thursday, November 2, 2023)</title>
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[Federal Register Volume 88, Number 211 (Thursday, November 2, 2023)]
[Notices]
[Pages 75338-75342]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-24270]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98825; File No. SR-PEARL-2023-58]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange
Rules 2614(a)(1)(ix) and 2618(b)(1) To Amend Certain Risk Controls When
Trading Equity Securities on MIAX Pearl Equities
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 October 19, 2023, MIAX PEARL, LLC (``MIAX
Pearl'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') a 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 existing risk controls for
Equity Members \3\ when trading equity securities on the Exchange's
equity trading platform (referred to herein as ``MIAX Pearl
Equities'').
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\3\ The term ``Equity Member'' is a Member authorized by the
Exchange to transact business on MIAX Pearl Equities. See Exchange
Rule 1901.
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The text of the proposed rule change is available on the Exchange's
website at <a href="https://www.miaxglobal.com/markets/us-equities/pearl-equities/rule-filings">https://www.miaxglobal.com/markets/us-equities/pearl-equities/rule-filings</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
The purpose of the proposed rule change is to amend certain
existing risk controls when trading equity securities on MIAX Pearl
Equities. To help Equity Members manage their risk, the Exchange
currently offers Limit Order Price Protection and other risk controls
that authorize the Exchange to take automated action if a designated
limit for an Equity Member is breached. Such risk controls provide
Equity Members with enhanced abilities to manage their risk when
trading on the Exchange. The Exchange now proposes to amend Limit Order
Price Protection under Exchange Rule 2614(a)(1)(ix) and Trading Collar
under Exchange Rule 2618(b)(1) to enhance certain existing risk
controls available to Equity Members. Each of these changes are
described below.
Limit Order Price Protection Reference Price
Limit Order Price Protection is set forth under Exchange Rule
2614(a)(1)(ix) and provides for the cancellation of Limit Orders priced
too far away from a specified reference price at the time the order
first becomes eligible to trade. A Limit Order entered before Regular
Trading Hours \4\ that becomes eligible to trade during Regular Trading
Hours will be subject to Limit Order Price Protection at the time
Regular Trading Hours begins.\5\
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\4\ The term ``Regular Trading Hours'' means the time between
9:30 a.m. and 4:00 p.m. Eastern Time. See Exchange Rule 1901.
\5\ Further, a Limit Order in a security that is subject to a
trading halt becomes first eligible to trade when the halt is lifted
and continuous trading has resumed. See Exchange Rule
2614(a)(1)(ix)(C).
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Exchange Rule 2614(a)(1)(ix)(A) provides that a Limit Order to buy
(sell) will be rejected if it is priced at or above (below) the greater
of a specified dollar value and percentage away from the following: (1)
the PBO for Limit Orders to buy, the PBB for Limit Orders to sell; (2)
if the PBO or PBB is unavailable, the consolidated last sale price
disseminated during the Regular Trading Hours on trade date; (3) if the
PBO, PBB, and a consolidated last sale price are unavailable, the prior
day's Official Closing Price identified as such by the primary listing
exchange, adjusted to account for events such as corporate actions and
news events. Exchange Rule 2614(a)(1)(ix)(C) provides that Limit Order
Price Protection will not be applied if the prices listed above are
unavailable or if
[[Page 75339]]
the Official Closing Price listed under paragraph (a)(1)(ix)(A)3. is to
be applied and a regulatory halt has been declared by the primary
listing market during that trading day. The Exchange proposes to
reorganize Exchange Rule 2614(a)(1)(ix)(C) to place these provisions
under subparagraphs 1. and 2., respectively. Equity Members have
requested that Limit Order Price Protection also not be applied when no
consolidated last sale price has been disseminated following the
conclusion of a regulatory halt declared by the primary listing market
during that trading day. The consolidated last sale price disseminated
prior to a regulatory halt likely does not appropriately relate to the
current trading behavior of the security in such a scenario and Equity
Members have informed the Exchange that they would prefer Limit Order
Price Protections not be applied since it may result in their order
being unnecessarily cancelled. The cancellation may be unnecessary
because the specified reference price used to calculate whether the
Limit Order should be cancelled was established prior to the security
being halted and likely stale. A consolidated last sale disseminated
following the conclusion of a regulatory halt would be much more
indicative of the security's trading behavior.
This proposed change is similar to a recent proposal by the
Exchange to amend Exchange Rule 2614(a)(1)(ix)(C) to provide that Limit
Order Price Protection would not be applied when a regulatory halt has
been declared by the primary listing market during that trading day and
the Exchange would have applied the prior day's Official Closing Price
because the PBO, PBB, and a consolidated last sale price are
unavailable.\6\ Like in this proposal, the prior proposal was also in
response to requests from Equity Members that Limit Order Price
Protection not be applied when a stale reference price may be used. In
the prior proposal, the concern was that the prior day's Official
Closing Price would be used when the PBO, PBB, and a consolidated last
sale price are unavailable and a trading halt has been declared by the
primary listing market during that trading day because the Official
Closing Price would not appropriately relate to the current trading
behavior of the security in such a scenario. In such case, Equity
Members preferred Limit Order Price Protection not be applied since it
may result in their Limit Order being unnecessarily cancelled. The same
is true here.
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\6\ See Securities Exchange Act Release No. 96205 (November 1,
2022), 87 FR 67080 (November 7, 2022) (SR-PEARL-2022-43).
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The Exchange, therefore, proposes to amend Exchange Rule
2614(a)(1)(ix)(C) to provide that Limit Order Price Protection would
not be applied when no consolidated last sale price has been
disseminated following the conclusion of a regulatory halt declared by
the primary listing market during that trading day. This provision
would be codified under subparagraph .3 to reorganized Exchange Rule
2614(a)(1)(ix)(C).
Trading Collar
In addition to the Limit Order Price Protection described above,
the Exchange also prevents all incoming orders, including those marked
ISO, from executing at a price outside the Trading Collar price range
as described in Exchange Rule 2618(b). The Trading Collar prevents buy
orders from trading or routing at prices above the collar and prevents
sell orders from trading or routing at prices below the collar. The
Trading Collar price range is calculated using the greater of numerical
guidelines for clearly erroneous executions under Exchange Rule 2621 or
a specified dollar value established by the Exchange.
The Exchange proposes two changes to the application of the Trading
Collar. First, the Exchange proposes to expand the times during which
the Trading Collar is applied to include the Exchange's Opening and Re-
Opening Process. Second, the Exchange proposes to not apply the Trading
Collar in an additional case where the reference price that is to be
used may be stale and not relate to current market conditions to avoid
the unnecessary cancellation of orders.
Trading Collar and Opening and Re-Opening Process
The Exchange proposes to expand the times when the Trading Collar
would be applied to include the Exchange's Opening and Re-Opening
Process. Today, Trading Collars are applied to all orders, except those
orders that are eligible to participate in the Exchange's Opening
Process under Exchange Rule 2615. The Trading Collar is also not
applied to all orders during the Exchange's Re-Opening Process.
The Exchange proposes to amend Exchange Rule 2618(b)(1) to no
longer exclude orders that are eligible to participate in the
Exchange's Opening Process from the Trading Collar protection. As
proposed, Trading Collars would be applied to orders that are eligible
to participate in the Exchange's Opening and Re-Opening Process. Limit
Up-Limit Down price bands are disseminated by the applicable Securities
Information Processor (``SIP'') during Regular Trading Hours.\7\
However, the SIP may not have begun to disseminate price bands at the
beginning of a trading day or after a halt when the Exchange is to
conduct its Opening or Re-Opening Process, as applicable. In such a
scenario, Equity Members have expressed the need for additional
protections around the opening and re-opening of trading where the
Limit Up-Limit Down price bands are not yet being disseminated by the
applicable SIP. Therefore, the Exchange proposes to remove language
from Exchange Rule 2618(b)(1) that states the Exchange will not apply
the Trading Collar to orders that are eligible to participate in the
Exchange's Opening Process.\8\ Going forward as a result of this
proposal, the Trading Collar would be applied to orders eligible to be
executed in the Exchange's Opening and Re-Opening Process and such
orders would be prevented from executing at a price outside the Trading
Collar price range as described in Exchange Rule 2618(b).
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\7\ See Sections I(S) and V(A)(1) of the Limit Up-Limit Down
Plan.
\8\ Exchange Rule 2618(b)(1) does not address the Exchange's
current practice of not applying the Trading Collar during the Re-
Opening Process and, therefore, the Rule will reflect the proposed
functionality once this proposal is implemented.
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Trading Collar Reference Price
Exchange Rule 2618(b)(1) provides that the Trading Collar price
range is calculated based on a Trading Collar Reference Price and sets
forth a sequence of prices to determine the Trading Collar Reference
Price to be used if a certain reference price is unavailable. The
Exchange first utilizes the consolidated last sale price disseminated
during the Regular Trading Hours on the trade date as the Trading
Collar Reference Price. If not available, the prior day's Official
Closing Price identified as such by the primary listing exchange,
adjusted to account for events such as corporate actions and news
events is used. If neither are available to use as the Trading Collar
Reference Price, the Exchange suspends the Trading Collar function in
the interest of maintaining a fair and orderly market in the impacted
security. The Exchange calculates the Trading Collar price range for a
security by applying the Numerical Guideline and reference price to the
Trading Collar Reference Price. The result is added to the Trading
Collar Reference Price to determine the Trading Collar Price for buy
orders, while the result is
[[Page 75340]]
subtracted from the Trading Collar Reference Price to determine the
Trading Collar Price for sell orders. Exchange Rule 2618(b)(1)(A)
provides that the Trading Collar Reference Price is equal to the
following: (i) consolidated last sale price disseminated during the
Regular Trading Hours on trade date; or (ii) if (i) is not available,
the prior day's Official Closing Price identified as such by the
primary listing exchange, adjusted to account for events such as
corporate actions and news events. Exchange Rule 2618(b)(1) further
provides that upon entry, any portion of an order to buy (sell) that
would execute at a price above (below) the Trading Collar Price is
cancelled unless the price listed under paragraph (A)(ii) described
above is to be applied and a regulatory halt has been declared by the
primary listing market during that trading day. The Exchange proposes
to reorganize Exchange Rule 2618(b)(1) to separately place these
provisions under subparagraph (A) and (A)(i) respectively. As a result
of this reorganization of Exchange Rule 2618(b)(1), the Exchange also
proposes to update rule cross references within the rule and renumber
the remainder of Exchange Rule 2618(b)(1) accordingly.
Like proposed above for Limit Order Price Protection, Equity
Members have requested that the Trading Collar not be applied if no
consolidated last sale price has been disseminated following the
conclusion of a regulatory halt declared by the primary listing market
on that trading day. The consolidated last sale price disseminated
prior to a regulatory halt likely does not appropriately relate to the
current trading behavior of the security in such a scenario and Equity
Members have informed the Exchange that they would prefer the Trading
Collar not be applied since it may result in their order being
unnecessarily cancelled. The cancellation may be unnecessary because
the specified reference price used to calculate whether the order
should be cancelled was established prior to the security being halted
and is likely stale. A consolidated last sale disseminated following
the conclusion of a regulatory halt would be much more indicative of
the security's trading behavior.
Like with the proposed change to Limit Order Price Protection
discussed above, this proposed change is similar to a recent proposal
by the Exchange to amend Exchange Rule 2618(b)(1) to provide that upon
entry, an order priced outside the Trading Collar would not be canceled
when a trading halt has been declared by the primary listing market
during that trading day and the Exchange would have applied the prior
day's Official Closing Price because the consolidated last sale price
is unavailable.\9\ Like in this proposal, the prior proposal was also
in response to requests from Equity Members that the Trading Collar not
be applied when a stale reference price may be used. In the prior
proposal, the concern was that the prior day's Official Closing Price
would be used when the consolidated last sale price is unavailable and
a trading halt has been declared by the primary listing market during
that trading day because the Official Closing Price would not
appropriately relate to the current trading behavior of the security in
such a scenario. In such case, Equity Members preferred the Trading
Collar not be applied since it may result in their order being
unnecessarily cancelled. Again, the same is true here.
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\9\ See supra note 6.
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The Exchange, therefore, proposes to amend Exchange Rule 2618(b)(1)
to provide that upon entry, an order priced outside the Trading Collar
would not be canceled if no consolidated last sale price has been
disseminated following the conclusion of a regulatory halt declared by
the primary listing market on that trading day. In such case, the
Exchange would accept such an order and post it on the MIAX Pearl
Equities Book at its limit price.\10\ This provision would be codified
under subparagraph (ii) of reorganized Exchange Rule 2618(b)(1)(A).
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\10\ In such case, a Limit Order would continue to be subject to
the Exchange's applicable re-pricing processes. See Exchange Rule
2614(a)(1)(v)-(viii).
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* * * * *
The Exchange does not guarantee that the risk settings in this
proposal are sufficiently comprehensive to meet all of an Equity
Member's risk management needs. Pursuant to Rule 15c3-5 under the
Act,\11\ a broker-dealer with market access must perform appropriate
due diligence to assure that controls are reasonably designed to be
effective, and otherwise consistent with the rule.\12\ Use of the
Exchange's risk settings included in Exchange Rule 2618 will not
automatically constitute compliance with Exchange or federal rules and
responsibility for compliance with all Exchange and SEC rules remains
with the Equity Member.
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\11\ 17 CFR 240.15c3-5.
\12\ See Division of Trading and Markets, Responses to
Frequently Asked Questions Concerning Risk Management Controls for
Brokers or Dealers with Market Access, available at <a href="https://www.sec.gov/divisions/marketreg/faq-15c-5-risk-management-controls-bd.htm">https://www.sec.gov/divisions/marketreg/faq-15c-5-risk-management-controls-bd.htm</a>.
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Implementation
Due to the technological changes associated with this proposed
change, the Exchange will issue a trading alert publicly announcing the
implementation date of the proposed enhancements to its risk controls
set forth herein. The Exchange anticipates that the implementation date
will be in the fourth quarter of 2023 or first quarter of 2024.
2. Statutory Basis
The proposed rule change is consistent with section 6(b) of the
Act,\13\ in general, and furthers the objectives of section
6(b)(5),\14\ 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 general, to
protect investors and the public interest. Specifically, the Exchange
believes the proposed amendments will remove impediments to and perfect
the mechanism of a free and open market and a national market system
because the augmented functionality is being proposed in response to
Equity Member feedback as part of their efforts to appropriately manage
their risk.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
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Trading Collar and Opening and Re-Opening Process
The Exchange's proposal to amend Exchange Rule 2618(b)(1) to no
longer exclude orders that are eligible to participate in the
Exchange's Opening and Re-Opening Process from the Trading Collar
protection promotes just and equitable principles of trade and protects
investors and the public interest because it would provide Equity
Members with additional protections around the opening of trading where
the Limit Up-Limit Down price bands are not yet being disseminated by
the applicable SIP. Equity Members have expressed the desire for
Trading Collar to be applied to orders eligible to be executed in the
Exchange's Opening and Re-Opening Process and to prevent such orders
from executing at a price outside the Trading Collar price range as
described in Exchange Rule 2618(b). By no longer excluding the Opening
and Re-Opening Process, the proposal expands the time by which the
Trading
[[Page 75341]]
Collar would be applied to include all orders entered during Regular
Trading Hours. Doing so should prevent orders from being executed in
the Exchange's Opening and Re-Opening Process at undesirable prices
that would have otherwise been outside of the Trading Collar. The
proposal, therefore, protects investors and the public interest by
preventing orders from executing outside of the Trading Collar price
range and resulting in unwanted executions. The Exchange notes that at
least one other national securities exchange also applies trading
collars in such a scenario.\15\
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\15\ See New York Stock Exchange, Inc. (``NYSE'') Rule
7.31(a)(1)(B). NYSE applies trading collars during Core Trading
Hours. Core trading hours are defined under NYSE 7.34(a)(2)
(providing, in sum, that for UTP Securities, the Core Trading
Session will begin for each security at 9:30 a.m. and end at the
conclusion of Core Trading Hours and for Exchange-listed securities,
the Core Trading Session will begin for each security with the Core
Open Auction, which can take place during Core Trading Hours only).
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Limit Order Price Protection and Trading Collar Reference Price
The proposal to not apply Limit Order Price Protection and the
Trading Collar if no consolidated last sale price has been disseminated
following the conclusion of a regulatory halt declared by the primary
listing market on that trading day promotes just and equitable
principles of trade because in such a scenario the consolidated last
sale price disseminated prior to a regulatory halt does not likely
appropriately relate to the current trading behavior of the security
and may result in an order being unnecessarily cancelled.\16\ Equity
Members are free to not enter orders during such times and enter such
orders later when Limit Order Price Protection and Trading Collars are
in effect. The Exchange notes that this proposal is an extension of
similar change it recently made in response to feedback from Equity
Members to not apply Limit Order Price Protection or Trading Collars
when the prior day's Official Closing Price is to be used when the PBO,
PBB (for Limit Order Price Protection), and a consolidated last sale
price are unavailable and a trading halt has been declared by the
primary listing market during that trading day.\17\
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\16\ The Exchange notes that it will still apply Limit Order
Price Protection where there is a PBB or PBO. See Exchange Rule
2614(a)(1)(ix)(A) (providing that a Limit Order to buy (sell) will
be rejected if it is priced at or above (below) the greater of a
specified dollar value and percentage away from the following: (1)
the PBO for Limit Orders to buy, the PBB for Limit Orders to sell .
. .).
\17\ See supra note 6.
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As described above, the Exchange is expanding the scope of the
Trading Collars to include the entire trading day by no longer
excluding orders eligible to participate in the Exchange's Opening and
Re-Opening Process from the protection. This will result in more orders
being subject to the protection and being prevented from possibly
executing at prices outside of the Trading Collar range. Not applying
Limit Order Price Protection and Trading Collar if no consolidated last
sale price has been disseminated following the conclusion of a
regulatory halt as proposed herein, does not offset the expansion of
time the Trading Collar is applied, nor does it create an inappropriate
gap in the trading day where orders would not be protected. Rather, it
seeks to address a small period of time following a regulatory halt
where no consolidated last sale has been disseminated. This may result
in orders being unnecessarily cancelled due to the Trading Collar or
Limit Order Price Protection ranges being based on a stale reference
price. The Exchange also anticipates that this will be an infrequent
occurrence since it requires a either a first trade and/or two-sided
quotation to perform its Re-Opening Process.\18\ Any potential time
period during which the Trading Collar or Limit Order Price Protection
would not be applied is likely to be rare and very short because the
Re-Opening Process only occurs without a reported trade where the
primary listing exchange did not publish a trade within one second of
publication of its first two-sided quotation.
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\18\ See Exchange Rule 2615(e)(1)(ii) (stating that the Re-
Opening Process will occur at the midpoint of the: (i) first NBBO
subsequent to the first reported trade and first two-sided quotation
on the primary listing exchange following the resumption of trading
after a halt, suspension, or pause; or (ii) NBBO when the first two-
sided quotation is published by the primary listing exchange
following the resumption of trading after a halt, suspension, or
pause if no first trade is reported by the listing exchange within
one second of publication of the first two-sided quotation by the
listing exchange (emphasis added).
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These proposed changes to Limit Order Price Protection and the
Trading Collar are similar to a recent proposal by the Exchange to not
apply Limit Order Price Protection or the Trading Collar when a trading
halt has been declared by the primary listing market during that
trading day and the Exchange would have applied the prior day's
Official Closing Price as the reference price.\19\ Like in this
proposal, the prior proposal was also in response to requests from
Equity Members that Limit Order Price Protection and the Trading Collar
not be applied when a stale reference price may be used. In the prior
proposal, the concern was that the prior day's Official Closing Price
would be used when the consolidated last sale price is unavailable and
a trading halt has been declared by the primary listing market during
that trading day because the Official Closing Price would not
appropriately relate to the current trading behavior of the security in
such a scenario. In such case, Equity Members preferred Limit Order
Price Protection and the Trading Collar not be applied since it may
result in their order being unnecessarily cancelled. Again, the same is
true for this proposal.
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\19\ See supra note 6.
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Rule Reorganization
The reorganization of Exchange Rules 2614(a)(1)(ix)(C) and
2618(b)(1) removes impediments to and perfects the mechanism of a free
and open market and a national market system because these changes make
each rule easier to comprehend, reducing the potential for inadvertent
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 that is not necessary or appropriate
in furtherance of the purposes of the Act.
Trading Collar and Opening and Re-Opening Process
The Exchange believes its proposal to expand the application of the
Trading Collar to include the Opening and Re-Opening Process will not
impose any burden on inter-market competition because it could serve to
improve the Exchange's market quality by expanding the application of
this risk protection to include all times during Regular Trading Hours
and preventing executions during the Exchange's Opening and Re-Opening
Process at undesirable prices that would have been outside of the
Trading Collar. The Exchange believes that the proposal may have a
positive effect on competition because it would allow the Exchange to
apply Trading Collar during timeframes similar to at least one other
national securities exchange.\20\ The proposal would impose no burden
on intra-market competition because each risk setting would be applied
to all Equity Members' orders equally.
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\20\ See NYSE Rules 7.31(a)(1)(B) and 7.34(a)(2)(B).
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Limit Order Price Protection and Trading Collar Reference Price
The Exchange believes its proposal to not apply Limit Order Price
Protection and the Trading Collar if no consolidated last sale price
has been
[[Page 75342]]
disseminated following the conclusion of a regulatory halt does not
burden inter-market competition because it could improve confidence in
the Exchange's overall execution quality by preventing orders from
being unnecessarily canceled due to stale reference prices.\21\
Further, this proposed rule change may increase confidence in the
proper functioning of the Exchange and contribute to additional
competition among trading venues. Rather than impede competition, the
proposal is designed to avoid the unwanted cancelation of orders
following a regulatory halt, which, in turn, could enhance the
integrity of trading on the Exchange. These proposals also would not
burden intra-market competition because it would apply to all Equity
Members equally and all Equity Members' orders would not be subject to
the applicable protection where it would be based on a stale reference
price and result in an unnecessary cancelation of the order, as
described here.
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\21\ See supra note 16.
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Rule Reorganization
The reorganization of Exchange Rules 2614(a)(1)(ix)(C) and
2618(b)(1) would not impact competition because such changes would not
enhance or alter the Exchange's ability to compete, but rather, make
each rule easier to comprehend, reducing the potential for inadvertent
investor confusion.
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 \22\ and Rule 19b-4(f)(6) \23\
thereunder.
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\22\ 15 U.S.C. 78s(b)(3)(A).
\23\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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="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#b9cbccd5dc94dad6d4d4dcd7cdcaf9cadcda97ded6cf"><span class="__cf_email__" data-cfemail="a4d6d1c8c189c7cbc9c9c1cad0d7e4d7c1c78ac3cbd2">[email protected]</span></a>. Please include
file number SR-PEARL-2023-58 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-2023-58. 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-PEARL-2023-58 and should be
submitted on or before November 24, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
Dated: October 30, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-24270 Filed 11-1-23; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on November 2, 2023.
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