Notice2024-08574
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Pearl Equities Fee Schedule
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
April 23, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 79 (Tuesday, April 23, 2024)</title>
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[Federal Register Volume 89, Number 79 (Tuesday, April 23, 2024)]
[Notices]
[Pages 30408-30415]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-08574]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99982; File No. SR-PEARL-2024-18]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX
Pearl Equities Fee Schedule
April 17, 2024.
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 April 4, 2024, MIAX PEARL, LLC (``MIAX Pearl'' 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 is filing a proposal to amend the fee schedule (the
``Fee Schedule'') applicable to MIAX Pearl Equities, an equities
trading facility of the Exchange.
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 amend the Fee Schedule to: (1) modify
certain rebates and volume thresholds for the NBBO Setter Plus Program
(referred to in this filing as the ``NBBO Program''); \3\ (2) modify
the NBBO Setter Additive Rebate under the NBBO Program; (3) establish a
new NBBO First Joiner Additive Rebate under the NBBO Program; and (4)
establish a new Step-Up Rebate. The Exchange initially filed proposal
on March 28, 2024 (SR-PEARL-2024-16). On April 4, 2024, the Exchange
withdrew SR-PEARL-2024-16 and refiled this proposal.
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\3\ See, generally, Fee Schedule, Section 1)c).
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Background of the NBBO Program
In general, the NBBO Program provides enhanced rebates for Equity
Members \4\ that add displayed liquidity (``Added Displayed Volume'')
in securities priced at or above $1.00 per share in all Tapes based on
increasing volume thresholds and increasing market quality levels
(described below), and provides an additive rebate \5\ applied to
orders that set the NBB or NBO \6\ upon entry.\7\ The NBBO Program was
implemented beginning September 1, 2023 and subsequently amended when
the Exchange adopted two additional tiers of rebates, effective January
1, 2024.\8\ The NBBO Program was further amended when the Exchange
adopted an alternative method for Equity Members to achieve the
enhanced rebate for Tier 5, Level C, effective March 1, 2024 (described
below).\9\
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\4\ The term ``Equity Member'' is a Member authorized by the
Exchange to transact business on MIAX Pearl Equities. See Exchange
Rule 1901.
\5\ See Fee Schedule, Section 1)c), NBBO Setter Additive Rebate.
\6\ With respect to the trading of equity securities, the term
``NBB'' shall mean the national best bid, the term ``NBO'' shall
mean the national best offer, and the term ``NBBO'' shall mean the
national best bid and offer. See Exchange Rule 1901.
\7\ See supra note 3.
\8\ See Securities Exchange Act Release Nos. 98472 (September
21, 2023), 88 FR 66533 (September 27, 2023) (SR-PEARL-2023-45) and
99318 (January 11, 2024), 89 FR 3488 (January 18, 2024) (SR-PEARL-
2023-73).
\9\ See Securities Exchange Act Release No. 99695 (March 8,
2024), 89 FR 18694 (March, 14, 2024) (SR-PEARL-2024-11).
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Pursuant to the NBBO Setter Plus Table in Section 1)c) of the Fee
Schedule, the NBBO Program provides six volume tiers enhanced by three
market quality levels to provide increasing rebates in this segment.
The six volume tiers are achievable by greater volume from the best of
three alternative methods. The three market quality levels are
achievable by greater NBBO participation in a minimum number of
specific securities (described below).
MIAX Pearl Equities first determines the applicable NBBO Program
tier based on three different volume calculation methods. The three
volume-based methods to determine the Equity Member's tier for purposes
of the NBBO Program are calculated in parallel in each month, and each
Equity Member receives the highest tier achieved from any of the three
methods each month. All three volume calculation methods are based on
an Equity Member's respective ADAV,\10\ NBBO Set Volume, or ADV, each
as a percent of industry TCV \11\ as the denominator.
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\10\ ``ADAV'' means average daily added volume calculated as the
number of shares added per day and ``ADV'' means average daily
volume calculated as the number of shares added or removed,
combined, per day. ADAV and ADV are calculated on a monthly basis.
``NBBO Set Volume'' means the ADAV in all securities of an Equity
Member that sets the NBB or NBO on MIAX Pearl Equities. The Exchange
excludes from its calculation of ADAV, ADV, and NBBO Set Volume
shares added or removed on any day that the Exchange's system
experiences a disruption that lasts for more than 60 minutes during
regular trading hours, on any day with a scheduled early market
close, and on the ``Russell Reconstitution Day'' (typically the last
Friday in June). Routed shares are not included in the ADAV or ADV
calculation. See the Definitions section of the Fee Schedule.
\11\ ``TCV'' means total consolidated volume calculated as the
volume in shares reported by all exchanges and reporting facilities
to a consolidated transaction reporting plan for the month for which
the fees apply. The Exchange excludes from its calculation of TCV
volume on any given day that the Exchange's system experiences a
disruption that lasts for more than 60 minutes during Regular
Trading Hours, on any day with a scheduled early market close, and
on the ``Russell Reconstitution Day'' (typically the last Friday in
June). See id.
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Under volume calculation Method 1, the Exchange provides tiered
rebates based on an Equity Member's ADAV as a percentage of TCV. An
Equity Member qualifies for the base rebates in Tier 1 for executions
of orders in securities priced at or above $1.00 per share for Added
Displayed Volume across all Tapes by achieving an ADAV of at least
0.00% and less than 0.035% of TCV. An Equity Member qualifies for the
enhanced rebates in Tier 2 for executions of orders in securities
priced at or above $1.00 per share for Added Displayed Volume across
all Tapes by achieving an ADAV of at least 0.035% and less than 0.05%
of TCV. An Equity Member qualifies for the enhanced
[[Page 30409]]
rebates in Tier 3 for executions of orders in securities priced at or
above $1.00 per share for Added Displayed Volume across all Tapes by
achieving an ADAV of at least 0.05% and less than 0.08% of TCV. An
Equity Member qualifies for the enhanced rebates in Tier 4 for
executions of orders in securities priced at or above $1.00 per share
for Added Displayed Volume across all Tapes by achieving an ADAV of at
least 0.08% and less than 0.25% of TCV. An Equity Member qualifies for
the enhanced rebates in Tier 5 for executions of orders in securities
priced at or above $1.00 per share for Added Displayed Volume across
all Tapes by achieving an ADAV of at least 0.25% and less than 0.40% of
TCV. Finally, an Equity Member qualifies for the enhanced rebates in
Tier 6 for executions of orders in securities priced at or above $1.00
per share for Added Displayed Volume across all Tapes by achieving an
ADAV of at least 0.40% of TCV.
Under volume calculation Method 2, the Exchange provides tiered
rebates based on an Equity Member's NBBO Set Volume as a percentage of
TCV. Under volume calculation Method 2, an Equity Member qualifies for
the base rebates in Tier 1 for executions of orders in securities
priced at or above $1.00 per share for Added Displayed Volume across
all Tapes by achieving an NBBO Set Volume of at least 0.00% and less
than 0.01% of TCV. An Equity Member qualifies for the enhanced rebates
in Tier 2 for executions of orders in securities priced at or above
$1.00 per share for Added Displayed Volume across all Tapes by
achieving an NBBO Set Volume of at least 0.01% and less than 0.015% of
TCV. An Equity Member qualifies for the enhanced rebates in Tier 3 for
executions of orders in securities priced at or above $1.00 per share
for Added Displayed Volume across all Tapes by achieving an NBBO Set
Volume of at least 0.015% and less than 0.02% of TCV. An Equity Member
qualifies for the enhanced rebates in Tier 4 for executions of orders
in securities priced at or above $1.00 per share for Added Displayed
Volume across all Tapes by achieving an NBBO Set Volume of at least
0.02% and less than 0.03% of TCV. An Equity Member qualifies for the
enhanced rebates in Tier 5 for executions of orders in securities
priced at or above $1.00 per share for Added Displayed Volume across
all Tapes by achieving an NBBO Set Volume of at least 0.03% and less
than 0.08% of TCV. Finally, an Equity Member qualifies for the enhanced
rebates in Tier 6 for executions of orders in securities priced at or
above $1.00 per share for Added Displayed Volume across all Tapes by
achieving an NBBO Set Volume of at least 0.08% of TCV.
Under volume calculation Method 3, the Exchange provides tiered
rebates based on an Equity Member's ADV as a percentage of TCV. An
Equity Member qualifies for the base rebates in Tier 1 for executions
of orders in securities priced at or above $1.00 per share for Added
Displayed Volume across all Tapes by achieving an ADV of at least 0.00%
and less than 0.15% of TCV. An Equity Member qualifies for the enhanced
rebates in Tier 2 for executions of orders in securities priced at or
above $1.00 per share for Added Displayed Volume across all Tapes by
achieving an ADV of at least 0.15% and less than 0.18% of TCV. An
Equity Member qualifies for the enhanced rebates in Tier 3 for
executions of orders in securities priced at or above $1.00 per share
for Added Displayed Volume across all Tapes by achieving an ADV of at
least 0.18% and less than 0.20% of TCV. An Equity Member qualifies for
the enhanced rebates in Tier 4 for executions of orders in securities
priced at or above $1.00 per share for Added Displayed Volume across
all Tapes by achieving an ADV of at least 0.20% and less than 0.60% of
TCV. An Equity Member qualifies for the enhanced rebates in Tier 5 for
executions of orders in securities priced at or above $1.00 per share
for Added Displayed Volume across all Tapes by achieving an ADV of at
least 0.60% and less than 1.00% of TCV. Finally, an Equity Member
qualifies for the enhanced rebates in Tier 6 for executions of orders
in securities priced at or above $1.00 per share for Added Displayed
Volume across all Tapes by achieving an ADV of at least 1.00% of TCV.
After the volume calculation is performed to determine highest tier
achieved by the Equity Member, the applicable rebate is calculated
based on two different measurements based on the Equity Member's
participation at the NBBO on the Exchange in certain securities
(referenced below).
The Exchange provides one column of base rebates (referred to in
the NBBO Setter Plus Table as ``Level A'') and two columns of enhanced
rebates (referred to in the NBBO Setter Plus Table as ``Level B'' and
``Level C''),\12\ depending on the Equity Member's Percent Time at NBBO
\13\ on MIAX Pearl Equities in a certain amount of specified securities
(``Market Quality Securities'' or ``MQ Securities'').\14\ The NBBO
Setter Plus Table specifies the percentage of time that the Equity
Member must be at the NBB or NBO on MIAX Pearl Equities in at least 200
symbols out of the full list of 1,000 MQ Securities (which symbols may
vary from time to time based on market conditions). The list of MQ
Securities is generally based on the top multi-listed 1,000 symbols by
ADV across all U.S. securities exchanges. The list of MQ Securities is
updated monthly by the Exchange and published on the Exchange's
website.\15\
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\12\ For the purpose of determining qualification for the
rebates described in Level B and Level C of the Market Quality Tier
columns in the NBBO Setter Plus Program, the Exchange will exclude
from its calculation: (1) any trading day that the Exchange's system
experiences a disruption that lasts for more than 60 minutes during
regular trading hours; (2) any day with a scheduled early market
close; and (3) the ``Russell Reconstitution Day'' (typically the
last Friday in June). See the Definitions section of the Fee
Schedule.
\13\ ``Percent Time at NBBO'' means the aggregate of the
percentage of time during regular trading hours where a Member has a
displayed order of at least one round lot at the national best bid
(``NBB'') or national best offer (``NBO''). See id.
\14\ ``Market Quality Securities'' or ``MQ Securities'' shall
mean a list of securities designated as such, that are used for the
purposes of qualifying for the rebates described in Level B and
Level C of the Market Quality Tier columns in the NBBO Setter Plus
Program. The universe of these securities will be determined by the
Exchange and published on the Exchange's website. See id.
\15\ See e.g, MIAX Pearl Equities Exchange--Market Quality
Securities (MQ Securities) List, effective April 1 through April 30,
2024, available at <a href="https://www.miaxglobal.com/markets/us-equities/pearl-equities/fees">https://www.miaxglobal.com/markets/us-equities/pearl-equities/fees</a> (last visited April 4, 2024).
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The base rebates (``Level A'') are as follows: ($0.00240) \16\ per
share in Tier 1; ($0.00290) per share in Tier 2; ($0.00300) per share
in Tier 3; ($0.00310) per share in Tier 4; ($0.00345) per share in Tier
5; and ($0.00350) per share in Tier 6. Under Level B, the Exchange
provides enhanced rebates for executions of orders in securities priced
at or above $1.00 per share for Added Displayed Volume across all Tapes
if the Equity Member's Percent Time at NBBO is at least 25% and less
than 50% in at least 200 MQ Securities per trading day during the
month. The Level B rebates are as follows: ($0.00250) per share in Tier
1; ($0.00295) per share in Tier 2; ($0.00305) per share in Tier 3;
($0.00315) per share in Tier 4; ($0.00350) per share in Tier 5; and
($0.00355) per share in Tier 6. Under Level C, the Exchange provides
enhanced rebates for executions of orders in securities priced at or
above $1.00 per share for Added Displayed Volume across all Tapes if
the Equity Member's Percent Time at NBBO is at least 50% in at least
200 MQ Securities per trading day during the month. The Level C rebates
are as follows:
[[Page 30410]]
($0.00260) per share in Tier 1; ($0.00300) per share in Tier 2;
($0.00310) per share in Tier 3; ($0.00320) per share in Tier 4;
($0.00355) per share in Tier 5; and ($0.00360) per share in Tier 6. As
referenced above, Equity Members may also qualify for the Tier 5, Level
C enhanced rebate via an alternative method by satisfying the following
three requirements in the relevant month: (1) Midpoint ADAV \17\ of at
least 2,500,000 shares; (2) Displayed ADAV of at least 10,000,000
shares; and (3) Percent Time at the NBB or NBO of at least 50% in 200
or more symbols from the list of MQ Securities.\18\
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\16\ Rebates are indicated by parentheses. See the General Notes
section of the Fee Schedule.
\17\ Midpoint ADAV means the ADAV for the current month
consisting of Midpoint Peg Orders in securities priced at or above
$1.00 per share that execute at the midpoint of the Protected NBBO
and add liquidity to the Exchange. A Midpoint Peg Order is a non-
displayed Limit Order that is assigned a working price pegged to the
midpoint of the PBBO. A Midpoint Peg Order receives a new timestamp
each time its working price changes in response to changes in the
midpoint of the PBBO. See Exchange Rule 2614(a)(3). With respect to
the trading of equity securities, the term ``the term ``Protected
NBB'' or ``PBB'' shall mean the national best bid that is a
Protected Quotation, the term ``Protected NBO'' or ``PBO'' shall
mean the national best offer that is a Protected Quotation, and the
term ``Protected NBBO'' or ``PBBO'' shall mean the national best bid
and offer that is a Protected Quotation. See Exchange Rule 1901.
\18\ See Fee Schedule, Section 1)c), Notes to NBBO Setter Plus
Table, note 4.
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The Exchange also offers an NBBO Setter Additive Rebate, which is
an additive rebate of ($0.0003) per share for executions of orders in
securities priced at or above $1.00 per share that set the NBB or NBO
on MIAX Pearl Equities with a minimum size of a round lot.\19\
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\19\ See Fee Schedule, Section 1)c).
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Proposal To Amend Certain Volume Thresholds and Rebates for the NBBO
Program
The Exchange proposes to amend the NBBO Setter Plus Table in
Section 1)c) of the Fee Schedule to: (1) amend the volume threshold
requirements for Tiers 4 and 5 of volume calculation Method 1 of the
NBBO Program; and (2) decrease the rebates applicable to Tier 1, Tier 5
and Tier 6 for all rebate Levels of the NBBO Program.
First, the Exchange proposes to reduce the minimum volume threshold
by 0.05% for Tier 5 of volume calculation Method 1 and make the
corresponding change to reduce the maximum volume threshold by 0.05%
for Tier 4 of volume calculation Method 1 of the NBBO Program.
Accordingly, with the proposed changes to volume calculation Method 1,
an Equity Member will qualify for the enhanced rebates in Tier 4 for
executions of orders in securities priced at or above $1.00 per share
for Added Displayed Volume across all Tapes by achieving an ADAV of at
least 0.08% and less than 0.20% of TCV. Further, an Equity Member will
qualify for the enhanced rebates in Tier 5 for executions of orders in
securities priced at or above $1.00 per share for Added Displayed
Volume across all Tapes by achieving an ADAV of at least 0.20% and less
than 0.40% of TCV. The Exchange does not propose to change any other
volume calculation thresholds for the NBBO Program.
Next, the Exchange proposes to slightly decrease the rebates
applicable to Tier 1, Tier 5 and Tier 6 for all rebate Levels of the
NBBO Program. With the proposed changes, the Level A rebates will be as
follows for Tiers 1, 5 and 6: ($0.00220) per share in Tier 1;
($0.00335) per share in Tier 5; and ($0.00340) per share in Tier 6. The
Exchange does not propose to amend the rebate amounts applicable to
Level A, Tiers 2, 3 and 4. With the proposed changes, the Level B
rebates will be as follows for Tiers 1, 5 and 6: ($0.00225) per share
in Tier 1; ($0.00340) per share in Tier 5; and ($0.00345) per share in
Tier 6. The Exchange does not propose to amend the rebate amounts
applicable to Level B, Tiers 2, 3 and 4. With the proposed changes, the
Level C rebates will be as follows for Tiers 1, 5 and 6: ($0.00230) per
share in Tier 1; ($0.00345) per share in Tier 5; and ($0.00350) per
share in Tier 6. The Exchange does not propose to amend the rebate
amounts applicable to Level C, Tiers 2, 3 and 4.
The purpose of these changes is for business and competitive
reasons in light of recent volume growth on the Exchange. The Exchange
notes that, even with the proposed changes, the base rebates, enhanced
rebates and volume requirements of the NBBO Program remain competitive
with, or better than, the rebates and volume requirements provided by
other exchanges for executions of orders in securities priced at or
above $1.00 per share that add displayed liquidity to those
exchanges.\20\
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\20\ See Cboe BZX Equities Fee Schedule, Add/Remove Volume Tiers
section, available at <a href="https://www.cboe.com/us/equities/membership/fee_schedule/bzx/">https://www.cboe.com/us/equities/membership/fee_schedule/bzx/</a> (providing an enhanced rebate in Tier 4 of
($0.0028) per share for executions of added displayed volume in
securities priced at or above $1.00 per share, so long as the member
meets all requirements, including minimum NBBO Time and NBBO Size
requirements from a list of specified securities and minimum
requirement of ADAV as a percentage of TCV); see also NYSE Arca
Equities Fee Schedule, available at <a href="https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf">https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf</a> (providing
standard rebates of ($0.0020) per share (Tapes A and C) and
($0.0016) per share (Tape B) for adding displayed liquidity in
securities priced at or above $1.00 per share).
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Corresponding Changes to the Standard Rates Table and Liquidity
Indicator Codes and Associated Fees Table
In connection with the proposed changes to the Level A, Tier 1
(Base) rebate of the NBBO Program described above, the Exchange
proposes to amend the Standard Rates table in Section 1)a) of the Fee
Schedule for executions of orders in securities priced at or above
$1.00 per share for Added Displayed Volume in all Tapes and the
Liquidity Indicator Codes and Associated Fees table in Section 1)b) of
the Fee Schedule. In particular, the Exchange proposes to amend the
Standard Rates table in Section 1)a) of the Fee Schedule to show the
reduced standard rebate from ($0.0024) to now be ($0.0022) per share
for executions of orders in securities priced at or above $1.00 per
share for Added Displayed Volume in all Tapes. Further, the Exchange
proposes to amend the Liquidity Indicator Codes and Associated Fees
table in Section 1)b) of the Fee Schedule to amend Liquidity Indicator
Codes ``AA,'' ``AB,'' and ``AC'' to show the reduced standard from
($0.0024) to now be ($0.0022) per share for executions of orders in
securities priced at or above $1.00 per share for Added Displayed
Volume in all Tapes. The purpose of these corresponding changes is to
ensure the Fee Schedule is accurate and clear in light of the change to
the base rebate amount in Level A, Tier 1 of the NBBO Setter Plus
Table. The Exchange notes that despite the modest base rebate reduction
proposed herein for executions of securities priced at or above $1.00
per share for Added Displayed Volume in all Tapes, the proposed
standard rebate--($0.0022) per share--remains higher than, and
competitive with, the standard rebates provided by other exchanges for
executions of orders in securities priced at or above $1.00 per share
that add displayed liquidity.\21\
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\21\ See e.g., MEMX LLC (``MEMX'') Equities Fee Schedule,
Transaction Fees section, available at <a href="https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/">https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/</a> (providing a
standard rebate $0.0015 per share for added displayed volume in
securities priced at or above $1.00 per share); see also Cboe EDGX
Exchange, Inc. (``Cboe EDGX'') Equities Fee Schedule, Standard Rates
section, available at <a href="https://www.cboe.com/us/equities/membership/fee_schedule/edgx/">https://www.cboe.com/us/equities/membership/fee_schedule/edgx/</a> (providing a standard rebate of $0.0016 per share
for added displayed volume in securities priced at or above $1.00
per share).
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Proposal To Amend the NBBO Setter Additive Rebate
The Exchange proposes to amend the NBBO Setter Additive Rebate in
the
[[Page 30411]]
NBBO Setter Plus Table in Section 1)c) of the Fee Schedule. Currently,
the Exchange provides an NBBO Setter Additive Rebate of ($0.0003) per
share, which applies only to executions of orders in securities priced
at or above $1.00 per share for Added Displayed Volume (other than
Retail Orders \22\) that set the NBB or NBO on MIAX Pearl Equities with
a minimum size of a round lot. The Exchange now proposes to increase
the NBBO Setter Additive Rebate from ($0.0003) to ($0.0004) per share
for executions of orders in securities priced at or above $1.00 per
share for Added Displayed Volume (other than Retail Orders) \23\ that
set the NBB or NBO on MIAX Pearl Equities with a minimum size of a
round lot. The purpose of the proposed increase to the NBBO Setter
Additive Rebate is to continue to provide an additional incentive for
Equity Members to contribute Added Displayed Volume in securities
priced at or above $1.00 per share that sets the NBB or NBO on MIAX
Pearl Equities, which should benefit all Equity Members by providing
greater execution opportunities on the Exchange and contribute to a
deeper, more liquid market, to the benefit of all investors and market
participants.
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\22\ A ``Retail Order'' is an agency or riskless principal order
that meets the criteria of FINRA Rule 5320.03 that originates from a
natural person and is submitted to the Exchange by a Retail Member
Organization, provided that no change is made to the terms of the
order with respect to price or side of market and the order does not
originate from a trading algorithm or any other computerized
methodology. See Exchange Rule 2626(a)(2).
\23\ The Exchange excludes Retail Orders from participating in
the NBBO Setter Additive Rebate because executions of orders in
securities priced at or above $1.00 per share for Added Displayed
Volume in Retail Orders already receive an enhanced rebate of
($0.0037) per share. See Fee Schedule, Section 1)b), Liquidity
Indicator Code ``AR''.
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Proposal To Establish NBBO First Joiner Additive Rebate
The Exchange proposes to amend the NBBO Setter Plus Table in
Section 1)c) of the Fee Schedule to establish the new ``NBBO First
Joiner Additive Rebate.'' In particular, the Exchange proposes that the
NBBO First Joiner Additive Rebate will be an additive rebate of
($0.0002) per share for executions of orders in securities priced at or
above $1.00 per share for Added Displayed Volume (other than Retail
Orders) \24\ for the first Equity Member that brings MIAX Pearl
Equities to the established NBB or NBO with a minimum size of a round
lot. The Exchange notes the NBBO First Joiner Additive Rebate will not
apply to executions of orders in securities priced at or above $1.00
per share that join the NBB or NBO on MIAX Pearl Equities with a
minimum size of a round lot after the first Equity Member's order that
brings MIAX Pearl Equities to the established NBB or NBO with a minimum
size of a round lot.
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\24\ The Exchange proposes to exclude Retail Orders from
participating in the NBBO First Joiner Additive Rebate because
executions of orders in securities priced at or above $1.00 per
share for Added Displayed Volume in Retail Orders already receive an
enhanced rebate of ($0.0037) per share. See Fee Schedule, Section
1)b), Liquidity Indicator Code ``AR''.
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The purpose of adopting the NBBO First Joiner Additive Rebate is to
further attract aggressively priced displayed liquidity to the
Exchange. The Exchange believes that such change will encourage the
submission of orders that join the established NBB or NBO on the
Exchange that matches the NBB or NBO first established on an away
market, in order to receive the additive rebate on such executions and
the Exchange believes that the resulting increased submission of such
aggressively priced displayed liquidity would enhance market quality by
increasing execution opportunities, tightening spreads, encouraging
depth, and promoting price discovery on the Exchange. The Exchange
notes that NBBO First Joiner Additive Rebate is comparable to other
volume-based incentives and discounts, which have been widely adopted
by exchanges, and that the Exchange's proposal to provide an additive
rebate for an Equity Member's transaction that brings MIAX Pearl
Equities to the established NBB or NBO with a minimum size of a round
lot is similar in construct to pricing incentives that have been
adopted by other exchanges.\25\
---------------------------------------------------------------------------
\25\ See, e.g., Securities Exchange Act Release No. 96471
(December 9, 2022), 87 FR 76648 (December 15, 2022) (SR-MEMX-2022-
33) (establishing NBBO Setter/Joiner Tiers with an additive rebate
for member's orders that establish the NBBO or establish a new best
bid or offer on MEMX that matched the NBBO first established on an
away market).
---------------------------------------------------------------------------
Proposal To Establish the Step-Up Rebate
The Exchange proposes to amend the NBBO Setter Plus Table in
Section 1)c) of the Fee Schedule to establish a new ``Step-Up Rebate,''
which will be labelled as Note 4 in the Notes section of the NBBO
Setter Plus Table.\26\ In particular, the Exchange proposes that the
Step-Up Rebate will provide an additional rebate of ($0.0001) per share
for executions of orders in securities priced at or above $1.00 per
share for Added Displayed Volume (other than Retail Orders) \27\ for
Equity Members that satisfy the following requirements in the relevant
month: (1) minimum Displayed ADAV of 0.35% of TCV; and (2) increase in
the percentage of Displayed ADAV of at least 0.05% of TCV as compared
to the Equity Member's February 2024 \28\ Displayed ADAV
percentage.\29\ The Exchange proposes that the Step-Up Rebate will
expire no later than August 31, 2024 (referred to herein as the
``sunset period''),\30\ which will be stated in the Fee Schedule. The
Exchange will issue an alert to market participants should the Exchange
determine that the Step-Up Rebate will expire earlier than August 31,
2024 or if the Exchange determines to amend the criteria or rate
applicable to the Step-Up Rebate prior to the end of the sunset period.
The Exchange notes other competing equities exchanges offer an enhanced
or additive rebate utilizing a volume comparison of the current month
to a prior baseline month with a similar ``sunset period.'' \31\
---------------------------------------------------------------------------
\26\ In connection with this change and numbering the proposed
Step-Up Rebate as Note 4, the Exchange proposes to renumber Notes 3
and 4 as currently provided for in the Notes section of the NBBO
Setter Plus Table, as described further below in this filing.
\27\ The Exchange proposes to exclude Retail Orders from
participating in the Step-Up Rebate because executions of orders in
securities priced at or above $1.00 per share for Added Displayed
Volume in Retail Orders already receive an enhanced rebate of
($0.0037) per share. See Fee Schedule, Section 1)b), Liquidity
Indicator Code ``AR''.
\28\ The Exchange will use a baseline ADAV of 0.00% of TCV for
firms that become Equity Members of the Exchange after February 2024
for the purpose of the Step-Up Rebate calculation.
\29\ The Exchange notes that the proposed Step-Up Rebate will
not apply to executions of orders in securities priced below $1.00
per share or executions of orders that constitute added non-
displayed liquidity.
\30\ The Exchange notes that at the end of the sunset period,
the Step-Up Rebate will no longer apply unless the Exchange files a
rule filing pursuant to Rule 19b-4 of the Exchange Act with the
Commission to amend the criteria terms or update the baseline month
to a more recent month.
\31\ See MEMX Equities Fee Schedule, Liquidity Provision Tiers,
Tier 2, available at <a href="https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/">https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/</a> (providing enhanced rebate of
($0.0032) per share if the equity member meets a minimum displayed
ADAV requirement in the current month compared to its displayed ADAV
of the TCV from September 2023 with a sunset period of March 31,
2024); see also Cboe BZX Equities Fee Schedule, Step-Up Tiers
section, available at <a href="https://www.cboe.com/us/equities/membership/fee_schedule/bzx/">https://www.cboe.com/us/equities/membership/fee_schedule/bzx/</a> (providing enhanced rebate of ($0.0032) per share
if the equity member meets certain added displayed volume
requirements in Tiers 2 or 3 in the current month compared its added
displayed volume from May 2019 or January 2022).
---------------------------------------------------------------------------
The purpose of this proposed change is to provide an incentive for
Equity Members to strive for higher ADAV on the Exchange (above their
ADAV in the baseline month of February 2024) to receive the additive
Step-Up Rebate for
[[Page 30412]]
qualifying executions of Added Displayed Volume in securities priced at
or above $1.00 per share in all Tapes. The Exchange believes that the
proposed Step-Up Rebate will encourage the submission of additional
Added Displayed Volume to the Exchange, thereby promoting price
discovery and contributing to a deeper and more liquid market, which
benefits all market participants and enhances the attractiveness of the
Exchange as a trading venue. The purpose of including the proposed
sunset period in the Fee Schedule is to provide clarity to Equity
Members that, unless the Exchange determines to amend or otherwise
modify the Step-Up Rebate, the Step-Up Rebate will expire at the end of
the sunset period.
Proposed Changes to Notes Section of NBBO Setter Plus Table
The Exchange proposes to make several changes to the notes section
of the NBBO Setter Plus Table in Section 1)c) of the Fee Schedule in
light of the proposed changes described above. Note 3 currently
provides that ``Retail Orders are not eligible for the NBBO Setter
Additive Rebate as it applies only to Liquidity Indicator Codes AA, AB
and AC.'' The Exchange proposes to move Note 3 to the end of the notes
section, renumber it as new ``Note 5,'' and add text that in addition
to the NBBO Setter Additive Rebate, Retail Orders will also not be
eligible for the proposed NBBO First Joiner Additive Rebate and the
Step-Up Rebate. Accordingly, new Note 5 will provide as follows:
``Retail Orders are not eligible for the NBBO Setter Additive Rebate,
the NBBO First Joiner Additive Rebate, or the Step-Up Rebate as these
rebates only apply to Liquidity Indicator Codes AA, AB and AC.''
Next, in connection with the proposed change to establish the Step-
Up Rebate as Note 4 (described above), the Exchange proposes to
renumber current Note 4 to now be numbered as Note 3. The Exchange does
not propose to amend any of the text of current Note 4 (proposed
renumbered Note 3). The purpose of all of these changes is to provide
clarity within the Fee Schedule in connection with all of the changes
proposed herein.
Implementation
The proposed changes are immediately effective.
2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \32\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \33\ in
particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among its Equity Members and
issuers and other persons using its facilities. Additionally, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \34\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers or dealers.
---------------------------------------------------------------------------
\32\ 15 U.S.C. 78f(b).
\33\ 15 U.S.C. 78f(b)(4).
\34\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange operates in a highly fragmented and competitive market
in which market participants can readily direct their order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. More specifically, the
Exchange is only one of sixteen registered equities exchanges, and
there are a number of alternative trading systems and other off-
exchange venues, to which market participants may direct their order
flow. Based on publicly available information, no single registered
equities exchange had more than approximately 15-16% of the total
market share of executed volume of equities trading for the month of
February 2024.\35\ Thus, in such a low-concentrated and highly
competitive market, no single equities exchange possesses significant
pricing power in the execution of order flow, and the Exchange
represented approximately 1.73% of the overall market share for the
month of February 2024. The Commission and the courts have repeatedly
expressed their preference for competition over regulatory intervention
in determining prices, products, and services in the securities
markets. In Regulation NMS, the Commission highlighted the importance
of market forces in determining prices and SRO revenues and also
recognized that current regulation of the market system ``has been
remarkably successful in promoting market competition in its broader
forms that are most important to investors and listed companies.'' \36\
---------------------------------------------------------------------------
\35\ See the ``Market Share'' section of the Exchange's website,
available at <a href="https://www.miaxglobal.com/">https://www.miaxglobal.com/</a> (last visited March 26,
2024).
\36\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37499 (June 29, 2005).
---------------------------------------------------------------------------
The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
shift order flow or discontinue or reduce use of certain categories of
products, in response to new or different pricing structures being
introduced into the market. Accordingly, competitive forces constrain
the Exchange's transaction fees and rebates, and market participants
can readily trade on competing venues if they deem pricing levels at
those other venues to be more favorable. The Exchange believes the
proposal reflects a reasonable and competitive pricing structure
designed to incentivize market participants to direct their order flow
to the Exchange, which the Exchange believes would enhance liquidity
and market quality in both a broad manner and in a targeted manner with
respect to the NBBO Program, in particular, and Added Displayed Volume
in securities priced at or above $1.00 per share, in general.
Proposal To Amend Certain Volume Thresholds and Rebates for the NBBO
Program
The Exchange believes its proposal to reduce the volume threshold
requirement for Tier 5 (and adjacently Tier 4) of volume calculation
Method 1 and decrease the rebates applicable to Tier 1, Tier 5 and Tier
6 for all rebate Levels of the NBBO Program provides a reasonable means
to continue to encourage Equity Members to not only increase their
order flow to the Exchange but also to contribute to price discovery
and market quality on the Exchange by submitting aggressively priced
displayed liquidity in securities priced at or above $1.00 per share.
The Exchange believes that the NBBO Program, as modified with this
proposal, continues to be equitable and not unfairly discriminatory
because it is open to all Equity Members on an equal basis and provides
enhanced rebates that are reasonably related to the value of the
Exchange's market quality associated with greater order flow by Equity
Members that set the NBB or NBO, and the introduction of higher volumes
of orders into the price and volume discovery process. The Exchange
believes the proposal is equitable and not unfairly discriminatory
because it is designed to incentivize the entry of aggressively priced
displayed liquidity that will create tighter spreads, thereby promoting
price discovery and market quality on the Exchange to the benefit of
all Equity Members and public investors.
In addition, the Exchange believes its proposal to reduce the
volume threshold requirement for Tier 5 (and adjacently Tier 4) of
volume calculation Method 1 and decrease the rebates applicable to Tier
1, Tier 5 and Tier 6 for all rebate Levels of the NBBO Program is
reasonable because, even with the proposed changes, the base rebates,
[[Page 30413]]
enhanced rebates and volume requirements of the NBBO Program remain
competitive with, or better than, the rebates and volume requirements
provided by other exchanges for executions of orders in securities
priced at or above $1.00 per share that add displayed liquidity to
those exchanges.\37\
---------------------------------------------------------------------------
\37\ See supra note 20.
---------------------------------------------------------------------------
Corresponding Changes to the Standard Rates Table and Liquidity
Indicator Codes and Associated Fees Table
The Exchange believes its proposal to amend the Standard Rates
table and Liquidity Indicator Codes and Associated Fees table to show
the reduced standard rebate of ($0.0022) per share for Added Displayed
Volume in securities priced at or above $1.00 per share in all Tapes is
reasonable because these corresponding changes are to ensure the Fee
Schedule is accurate and clear in light of the change to the base
rebate amount in Level A, Tier 1 of the NBBO Setter Plus Table. The
Exchange believes that even with the proposed reduced standard rebate
for Added Displayed Volume in securities priced at or above $1.00 per
share in all Tapes, the proposal is reasonable, equitably allocated and
not unfairly discriminatory because the proposed standard rebate--
($0.0022) per share--remains higher than, and competitive with, the
standard rebates provided by other exchanges for executions of orders
in securities priced at or above $1.00 per share that add displayed
liquidity.\38\
---------------------------------------------------------------------------
\38\ See supra note 21.
---------------------------------------------------------------------------
Proposal To Amend the NBBO Setter Additive Rebate
The Exchange believes its proposal to increase the NBBO Setter
Additive Rebate to ($0.0004) per share for Added Displayed Volume
(other than Retail Orders) for executions of orders in securities
priced at or above $1.00 per share that set the NBB or NBO on MIAX
Pearl Equities with a minimum size of a round lot is reasonable,
equitably allocated and not unfairly discriminatory because the
Exchange believes it will continue to provide an additional incentive
for Equity Members to contribute Added Displayed Volume in securities
priced at or above $1.00 per share that sets the NBB or NBO on MIAX
Pearl Equities. In turn, this should benefit all Equity Members by
providing greater execution opportunities on the Exchange and
contribute to a deeper, more liquid market, to the benefit of all
investors and market participants. Further, the NBBO Setter Additive
Rebate is available to all Equity Members of the Exchange that transact
in securities priced at or above $1.00 per share in all Tapes. The
Exchange believes it is reasonable and not unfairly discriminatory to
continue to exclude Retail Orders from participating in the NBBO Setter
Additive Rebate because executions of orders in securities priced at or
above $1.00 per share for Added Displayed Volume in Retail Orders
already receive an enhanced rebate of ($0.0037) per share.\39\
---------------------------------------------------------------------------
\39\ See Fee Schedule, Section 1)b), Liquidity Indicator Code
``AR''.
---------------------------------------------------------------------------
Proposal To Establish the NBBO First Joiner Additive Rebate
The Exchange believes its proposal to establish the NBBO First
Joiner Additive Rebate is reasonable because it should attract
aggressively priced displayed liquidity to the Exchange, which will
encourage the submission of orders that join the established NBB or NBO
on the Exchange. This should result in increased orders of aggressively
priced displayed liquidity, which would enhance the Exchange's market
quality by increasing execution opportunities, tightening spreads, and
promoting price discovery on the Exchange to the benefit of all market
participants. The Exchange believes its proposal to establish the NBBO
First Joiner Additive Rebate is equitably allocated and not unfairly
discriminatory because it will be available to all Equity Members and
is comparable to other volume-based incentives and discounts, which
have been widely adopted by exchanges.\40\ The Exchange believes it is
reasonable and not unfairly discriminatory to exclude Retail Orders
from participating in the NBBO First Joiner Additive Rebate because
executions of orders in securities priced at or above $1.00 per share
for Added Displayed Volume in Retail Orders already receive an enhanced
rebate of ($0.0037) per share.\41\
---------------------------------------------------------------------------
\40\ See supra note 25.
\41\ See Fee Schedule, Section 1)b), Liquidity Indicator Code
``AR''.
---------------------------------------------------------------------------
Proposal To Establish the Step-Up Rebate
The Exchange believes that the proposed Step-Up Rebate is
comparable to other incentives currently offered by other
exchanges,\42\ and is reasonable, equitable and not unfairly
discriminatory for these same reasons, as it provides Equity Members
with an additional incentive to achieve a certain volume threshold on
the Exchange. Further, the proposed Step-Up Rebate will be available to
all Equity Members and is designed to encourage Equity Members to
increase their orders of Added Displayed Volume in order to qualify for
the additive rebate for qualifying executions, which, in turn, the
Exchange believes would encourage the submission of additional Added
Displayed Volume to the Exchange, thereby promoting price discovery and
contributing to a deeper and more liquid market to the benefit of all
market participants. The Exchange believes it is reasonable and not
unfairly discriminatory to continue to exclude Retail Orders from
participating in the Step-Up Rebate because executions of orders in
securities priced at or above $1.00 per share for Added Displayed
Volume in Retail Orders already receive an enhanced rebate of ($0.0037)
per share.\43\
---------------------------------------------------------------------------
\42\ See supra note 31.
\43\ See Fee Schedule, Section 1)b), Liquidity Indicator Code
``AR''.
---------------------------------------------------------------------------
Proposed Changes to Notes Section of NBBO Setter Plus Table
The Exchange believes its proposal to renumber and amend the Notes
section of the NBBO Setter Plus Table is reasonable because it will
provide additional clarity within the Fee Schedule. In particular, the
Exchange believes it is reasonable to set forth in new Note 5 that
Retail Orders will note be eligible for the NBBO Setter Additive
Rebate, the NBBO First Joiner Additive Rebate, or the Step-Up Rebate as
these rebates only apply to Liquidity Indicator Codes AA, AB and AC,
which will provide clarity to Equity Members about the applicability of
such rebates.
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.
Intra-Market Competition
The Exchange does not believe that the proposal will impose any
burden on intra-market competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes its
proposed changes to the NBBO Program, increase to the NBBO Setter
Additive Rebate, adoption of the NBBO First Joiner Additive Rebate, and
adoption of the Step-Up Rebate would incentivize Equity Members to
submit additional orders that add liquidity to the Exchange, thereby
contributing to a deeper and more liquid market and promoting price
discovery and market quality on the Exchange to the benefit of all
market participants and enhancing
[[Page 30414]]
the attractiveness of the Exchange as a trading venue, which the
Exchange believes, in turn, would continue to encourage market
participants to direct additional order flow to the Exchange. Greater
liquidity benefits all Members by providing more trading opportunities
and encourages Equity Members to send additional orders to the
Exchange, thereby contributing to robust levels of liquidity, which
benefits all market participants. As described above, the opportunity
to qualify for the proposed new NBBO First Joiner Additive Rebate,
Step-Up Rebate, or increased NBBO Setter Additive Rebate, and thus
receive the proposed rebates or additive rebates for qualifying
executions of Added Displayed Volume, would be available to all Equity
Members that meet the associated requirements, and the Exchange
believes the proposed changes provide such incentives is reasonably
related to the enhanced market quality that they are designed to
promote. As such the Exchange does not believe the proposed changes
would impose any burden on intra-market competition that is not
necessary or appropriate in furtherance of the purpose of the Act.
Intermarket Competition
The Exchange believes the proposed changes will benefit
competition, and the Exchange notes that it operates in a highly
competitive market. Equity Members have numerous alternative venues
they may participate on and direct their order flow to, including
fifteen other equities exchanges and numerous alternative trading
systems and other off-exchange venues. As noted above, no single
registered equities exchange currently had more than 15-16% of the
total market share of executed volume of equities trading for the month
of February 2024.\44\ Thus, in such a low-concentrated and highly
competitive market, no single equities exchange possesses significant
pricing power in the execution of order flow. Moreover, the Exchange
believes that the ever-shifting market share among the exchanges from
month to month demonstrates that market participants can shift order
flow in response to new or different pricing structures being
introduced to the market. Accordingly, competitive forces constrain the
Exchange's transaction fees and rebates generally, including with
respect to executions of Added Displayed Volume, and market
participants can readily choose to send their orders to other exchanges
and off-exchange venues if they deem fee levels at those other venues
to be more favorable. As described above, the proposed changes are
competitive proposals through which the Exchange seeks to encourage
certain order flow to the Exchange and to promote market quality
through pricing incentives that are similar in structure and purpose to
pricing programs at other Exchanges, including the incentives with a
sunset period such as the Step-Up Rebate.\45\ Accordingly, the Exchange
believes the proposal would not burden, but rather promote, intermarket
competition by enabling it to better compete with other exchanges that
offer similar incentives to market participants that enhance market
quality.
---------------------------------------------------------------------------
\44\ See supra note 31 [sic].
\45\ See supra notes 20, 25, and 31.
---------------------------------------------------------------------------
Additionally, the Commission has repeatedly expressed its
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. Specifically,
in Regulation NMS, the Commission highlighted the importance of market
forces in determining prices and self-regulatory organization (``SRO'')
revenues and, also, recognized that current regulation of the market
system ``has been remarkably successful in promoting market competition
in its broader forms that are most important to investors and listed
companies.'' \46\ The fact that this market is competitive has also
long been recognized by the courts. In NetCoalition v. Securities and
Exchange Commission, the D.C. circuit stated: ``[n]o one disputes that
competition for order flow is `fierce.' . . . As the SEC explained,
`[i]n the U.S. national market system, buyers and sellers of
securities, and the broker-dealers that act as their routing agents,
have a wide range of choices of where to route orders for execution';
[and] `no exchange can afford to take its market share percentages for
granted' because `no exchange possess a monopoly, regulatory or
otherwise, in the execution of order flow from broker dealers' . .
.''.\47\ Accordingly, the Exchange does not believe its proposed
pricing changes impose any burden on competition that is not necessary
or appropriate in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\46\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
\47\ See NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSE-2006-21)).
---------------------------------------------------------------------------
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\48\ and Rule 19b-4(f)(2) \49\ thereunder.
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.
---------------------------------------------------------------------------
\48\ 15 U.S.C. 78s(b)(3)(A)(ii).
\49\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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#f785829b92da94989a9a92998384b7849294d9909881"><span class="__cf_email__" data-cfemail="d2a0a7beb7ffb1bdbfbfb7bca6a192a1b7b1fcb5bda4">[email protected]</span></a>. Please include
file number SR-PEARL-2024-18 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-2024-18. 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
[[Page 30415]]
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-2024-18 and should be
submitted on or before May 14, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\50\
---------------------------------------------------------------------------
\50\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-08574 Filed 4-22-24; 8:45 am]
BILLING CODE 8011-01-P
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