Notice2024-01747
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by MIAX PEARL, LLC To Amend Exchange Rule 2613, Usage of Data Feeds
Primary source
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Published
January 30, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 20 (Tuesday, January 30, 2024)</title>
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[Federal Register Volume 89, Number 20 (Tuesday, January 30, 2024)]
[Notices]
[Pages 5948-5949]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-01747]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99425; File No. SR-PEARL-2024-04]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change by MIAX PEARL,
LLC To Amend Exchange Rule 2613, Usage of Data Feeds
January 24, 2024.
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 January 22, 2024, 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 Exchange Rule 2613(a), Usage of Data
Feeds, to disclose that the Exchange will utilize direct data feeds
from the Investors Exchange LLC (``IEX'') when performing order
handling, order execution, routing, and related compliance processes
for equity securities.
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
Exchange Rule 2613 identifies the data feeds that the Exchange
utilizes for the handling, execution, and routing of orders in equity
securities on the Exchange's equity trading platform (``MIAX Pearl
Equities''), as well as for surveillance necessary to monitor
compliance with applicable securities laws and Exchange Rules. The
Exchange currently utilizes IEX market data from the Consolidated
Quotation System (``CQS'')/UTP Quotation Data Feed (``UQDF'') for these
purposes on MIAX Pearl Equities. The Exchange intends to begin to
utilize IEX's direct feeds in place of market data from the CQS/UQDF.
Therefore, the Exchange proposes to amend Exchange Rule 2613(a) to
reflect that the Exchange will utilize IEX's direct feeds in place of
market data from the CQS/UQDF when performing order handling, order
execution, routing, and related compliance processes for equity
securities on MIAX Pearl Equities. The Exchange does not currently
utilize a secondary source for data from IEX. Once it begins to utilize
direct feeds for data from IEX, the Exchange will also begin to utilize
CQS/UQDF as a secondary source of data from IEX on MIAX Pearl Equities.
Implementation
Due to the technological changes associated with this proposed
change, the Exchange will issue a trading alert publicly announcing the
implementation date of this proposed rule change. The Exchange
anticipates that the implementation date will be in either the second
or third quarter of 2024.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\3\ in general, and furthers the objectives of Section 6(b)(5),\4\
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.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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The proposal to update Exchange Rule 2613(a) to reflect that the
Exchange will utilize IEX's direct feeds in place of market data from
the CQS/UQDF on MIAX Pearl Equities will continue to provide market
participants with insight and transparency into which data feeds the
Exchange utilizes when performing order handling, order execution,
routing, and related compliance processes for equity securities. The
Exchange's proposal to utilize IEX's direct feeds promotes just and
equitable principles of trade because it will allow the Exchange to
receive market data directly from IEX, thereby potentially enhancing
the performance of its order handling, order execution, routing, and
related compliance processes for equity securities. The proposed rule
changes also remove impediments to and perfects the mechanism of a free
and open market and protects investors and the public interest because
it will continue to ensure that Exchange Rule 2613(a) accurately
reflects the Exchange's sources of market data it utilizes for each
other equities exchange and the Financial Industry Regulatory
Authority, Inc.'s Alternative Display Facility.
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. To the contrary, the
Exchange believes the proposal would enhance competition by
[[Page 5949]]
enhancing transparency and enabling market participants to better
assess the quality of MIAX Pearl Equities' execution and routing
services by continuing to provide market participants with insight and
transparency into which data feeds the Exchange utilizes when
performing order handling, order execution, routing, and related
compliance processes for equity securities. The Exchange also believes
the proposal would enhance competition because it will potentially
enhance the performance of its order handling and execution of orders
in equity securities by receiving market data directly from IEX.
Lastly, the proposed rule change will not impact competition between
market participants because it will affect all market participants
equally.
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 \5\ and Rule 19b-4(f)(6) \6\
thereunder.
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 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#9ceee9f0f9b1fff3f1f1f9f2e8efdceff9ffb2fbf3ea"><span class="__cf_email__" data-cfemail="8dfff8e1e8a0eee2e0e0e8e3f9fecdfee8eea3eae2fb">[email protected]</span></a>. Please include
file number SR-PEARL-2024-04 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-2024-04. 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-2024-04 and should be
submitted on or before February 20, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-01747 Filed 1-29-24; 8:45 am]
BILLING CODE 8011-01-P
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