Notice2023-27784
Self-Regulatory Organizations; MIAX PEARL LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 100, Definitions, Rule 530, Limit Up-Limit Down, Rule 2612, Minimum Price Variations, Rule 2614, Orders and Order Instructions, and Rule 2705 Prohibition Against Trading Ahead of Customer Orders
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
December 19, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 242 (Tuesday, December 19, 2023)</title>
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[Federal Register Volume 88, Number 242 (Tuesday, December 19, 2023)]
[Notices]
[Pages 87820-87822]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-27784]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99152; File No. SR-PEARL-2023-68]
Self-Regulatory Organizations; MIAX PEARL LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange
Rule 100, Definitions, Rule 530, Limit Up-Limit Down, Rule 2612,
Minimum Price Variations, Rule 2614, Orders and Order Instructions, and
Rule 2705 Prohibition Against Trading Ahead of Customer Orders
December 13, 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 December 6, 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 and II 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 update citations to Rule 600(b) of
Regulation National Market System (``Regulation NMS'') in Exchange Rule
100, Definitions, Rule 530, Limit Up-Limit Down, Rule 2612, Minimum
Price Variations, Rule 2614, Orders and Order Instructions, and Rule
2705 Prohibition Against Trading Ahead of Customer Orders.
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 Exchange proposes to update citations to Rule 600(b) of
Regulation NMS in Exchange Rule 100, Definitions, Rule 530, Limit Up-
Limit Down, Rule 2612, Minimum Price Variations, Rule 2614, Orders and
Order Instructions, and Rule 2705 Prohibition Against Trading Ahead of
Customer Orders.
In 2021, the Securities and Exchange Commission (the
``Commission'') amended Regulation NMS under the Act in connection with
the adoption of the Market Data Infrastructure Rules.\3\ As part of
that initiative, the Commission adopted new definitions in Rule 600(b)
of Regulation NMS and renumbered the remaining definitions, including
the definitions of Trading Center (formerly Rule 600(b)(82)), Regular
Trading Hours (formerly Rule 600(b)(77)), NMS Stock (formerly Rule
600(b)(48)), and Intermarket Sweep Order (formerly Rule 600(b)(31)).
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\3\ See Securities Exchange Act Release No. 90610, 86 FR 18596
(April 9, 2021) (S7-03-20).
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The Exchange accordingly proposes to update the relevant citations
to Rule 600(b) in its rules as follows:
<bullet> The citation to the definition of Trading Center in Rule
100 would be changed to Rule 600(b)(82).
<bullet> The citation to the definition of Regular Trading Hours in
Rule 530, Limit Up-Limit Down, would be changed to Rule 600(b)(77).
<bullet> The citation to the definition of NMS Stock in Rule
2612(a) would be changed to Rule 600(b)(55).
<bullet> The citation to the definition of Intermarket Sweep Order
in Rule 2614 and Rule 2705, would be changed to Rule 600(b)(38).
2. Statutory Basis
The Exchange believes the proposed rules changes are consistent
with the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of section 6(b) of the
Act.\4\ Specifically, the Exchange believes the proposed rules changes
are consistent with section 6(b)(5) \5\ requirements that the rules of
an exchange be 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
[[Page 87821]]
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.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed changes to its rules to
correct citations to Rule 600(b) of Regulation NMS would remove
impediments to and perfect the mechanism of a free and open market and
a national market system because the proposed change is designed to
update an external rule reference. The Exchange believes that Members
\6\ would benefit from the increased clarity, thereby reducing
potential confusion and ensuring that those subject to the Exchange's
jurisdiction, regulators, and the investing public can more easily
navigate and understand the Exchange's rules. The Exchange further
believes that the proposed changes would not be inconsistent with the
public interest and the protection of investors because investors will
not be harmed and in fact would benefit from increased clarity, thereby
reducing potential confusion.
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\6\ The term ``Member'' means an individual or organization that
is registered with the Exchange pursuant to Chapter II of Exchange
Rules for purposes of trading on the Exchange as an ``Electronic
Exchange Member'' or ``Market Maker.'' Members are deemed
``members'' under the Exchange Act. See the Definitions Section of
the Fee Schedule and Exchange Rule 100.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposed rules changes would not
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rules changes
is not intended to address competitive issues but rather would modify
Exchange rules to update citations to Rule 600(b) of Regulation NMS.
Since the proposal does not substantively modify System \7\
functionality or processes on the Exchange, the proposed changes will
not impose any burden on competition nor are they meant to affect
competition among the exchanges. For these reasons, the Exchange
believes that the proposed rules changes reflect this competitive
environment and do not impose any undue burden on intermarket
competition.
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\7\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
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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
Pursuant to section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6)
\9\ thereunder, the Exchange has designated this proposal as one that
effects a change that: (i) does not significantly affect the protection
of investors or the public interest; (ii) does not impose any
significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest.\10\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 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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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act normally does not become operative for 30 days after the date of
its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission
to designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requests
that the Commission waive the 30-day operative delay so that the
proposal may become operative immediately upon filing. The proposal
raises no novel legal or regulatory issues, and operative delay waiver
would permit the Exchange to promptly correct citations to Rule 600(b)
of Regulation NMS in order to alleviate potential investor or public
confusion and add clarity to its rules. Therefore, the Commission
believes that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest. Accordingly, the
Commission hereby waives the 30-day operative delay and designates the
proposed rule change operative upon filing.\12\
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\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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#6c1e190009410f0301010902181f2c1f090f420b031a"><span class="__cf_email__" data-cfemail="384a4d545d155b5755555d564c4b784b5d5b165f574e">[email protected]</span></a>. Please include
file number SR-PEARL-2023-68 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-2023-68. 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
[[Page 87822]]
submissions should refer to file number SR-PEARL-2023-68 and should be
submitted on or before January 9, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-27784 Filed 12-18-23; 8:45 am]
BILLING CODE 8011-01-P
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