Notice2025-13472
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Clarifying Changes to Exchange Rule 2611, Odd and Mixed Lots
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Published
July 18, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 136 (Friday, July 18, 2025)</title>
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[Federal Register Volume 90, Number 136 (Friday, July 18, 2025)]
[Notices]
[Pages 34037-34039]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-13472]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103466; File No. SR-PEARL-2025-33]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Make
Clarifying Changes to Exchange Rule 2611, Odd and Mixed Lots
July 15, 2025.
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 July 3, 2025, MIAX PEARL, LLC (``MIAX Pearl'' or the ``Exchange'')
\3\ filed with the Securities and Exchange Commission (``Commission'')
the 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.
\3\ All references to ``MIAX Pearl'' in this filing are to MIAX
Pearl Equities, the equities trading facility of MIAX PEARL, LLC.
See Exchange Rule 1901.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to change to make two minor clarifying
changes to Exchange Rule 2611, Odd and Mixed Lots. These changes are to
remove a single misleading word and include more precise rule cross-
references. This proposed rule change applies 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> and at MIAX Pearl's principal office.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, MIAX Pearl 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. MIAX Pearl 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 make two minor clarifying changes to
Exchange Rule 2611, Odd and Mixed Lots. These changes are to remove a
single misleading word and include more precise rule cross-references.
The Exchange does not propose to amend existing functionality. Rather,
it simply seeks to make two minor modifications to Exchange Rule
2611(c) to make it easier to understand.
Subparagraph (c) of Exchange Rule 2611 provides that ``[f]or an
order that is partially routed to an away market on arrival, if any
returned quantity of the order joins resting odd lot quantity of the
original order and the returned and resting quantity, either alone or
together with other odd lot sized orders, would be displayed as a new
BBO, both the returned and resting quantity will be assigned a new
timestamp in accordance Exchange Rules 2616 and 2617(b)(6).'' Use of
the word ``new'' before the word ``timestamp'' can be misleading since
the returned routed order would not receive a new timestamp in
accordance with Exchange Rules 2616 and 2617(b)(6) should it join any
remaining resting portion of the original order, as described below.
In sum, Exchange Rule 2611(c) states that the unexecuted portion of
a returned routed order that join the resting odd lot quantity of the
original order and the returned and resting quantity, either alone or
together with other odd lot sized orders, would be displayed as a new
BBO would receive a new timestamp in accordance with Exchange Rules
2616 and 2617(b)(6). However, pursuant to Exchange Rules 2616 and
2617(b)(6), a new timestamp is only provided to the unexecuted portion
of a routed order when the original order is no longer resting on the
MIAX Pearl Equities Book.\4\ Specifically, both Exchange Rules
2616(a)(3)(i)(B) and 2617(b)(6)(iv) provide that for an order that is
partially routed to an away Trading Center \5\ on arrival, the portion
that is not routed is assigned a timestamp. If any unexecuted portion
of the order returns to the MIAX Pearl Equities Book and joins any
remaining resting portion of the original order, the
[[Page 34038]]
returned portion of the order is assigned the same timestamp as the
resting portion of the order. In such case, the unexecuted returned
portion of a routed order is not assigned a new timestamp, which causes
the use of the word ``new'' in Exchange Rule 2611(c) to be misleading.
The only time the unexecuted returned portion of a routed order is
assigned a new timestamp pursuant to Exchange Rules 2616(a)(3)(i)(B)
and 2617(b)(6)(iv) is when the resting portion of the original order
has already executed and any unexecuted portion of the order returns to
the MIAX Pearl Equities Book. The Exchange, therefore, proposes to
simply remove the word ``new'' from before the word ``timestamp'' in
Exchange Rule 2611(c) since the unexecuted portion of a routed order
would not receive a ``new'' timestamp should it join any remaining
resting portion of the original order according to Exchange Rules
2616(a)(3)(i)(B) and 2617(b)(6)(iv).
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\4\ The term ``MIAX Pearl Equities Book'' shall mean the
electronic book of orders in equity securities maintained by the
System. See Exchange Rule 1901.
\5\ The term ``Trading Center'' shall have the same meaning as
in Rule (600)(b)(106) of Regulation NMS. See Exchange Rule 100.
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Lastly, the Exchange proposes to further amend Exchange Rule
2611(c) to provide more precise rule references to Exchange Rules 2616
and 2617(b)(6). The Exchange proposes to expand these cross references
to include more precise subparagraphs by referring to each rule as
Exchange Rules 2616(a)(3)(i)(B) and 2617(b)(6)(iv).
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\6\ in general, and furthers the objectives of Section 6(b)(1) \7\
in particular, in that it enables the Exchange to be so organized as to
have the capacity to be able to carry out the purposes of the Act and
to comply, and to enforce compliance by its exchange members and
persons associated with its exchange members, with the provisions of
the Act, the rules and regulations thereunder, and the rules of the
Exchange. The Exchange also believes that the proposed rule change is
consistent with Section 6(b)(5) \8\ of the Act in that it is designed
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in 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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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(1).
\8\ 15 U.S.C. 78f(b)(5).
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The Exchange proposes to make two minor clarifying changes to
Exchange Rule 2611. One is to remove a single misleading word and the
second it to include more precise rule cross-references. The Exchange
does not propose to amend existing functionality. Rather, it simply
seeks to make these two minor modifications to Exchange Rule 2611(c)
described above to make it easier to understand. These proposed non-
substantive changes would ensure that the Exchange's rule is not
misleading and easier to understand. In addition, the proposed rule
changes would reduce potential investor and market participant
confusion and therefore remove impediments to and perfect the mechanism
of a free and open market and a national market system by ensuring that
investors and market participants can more easily navigate, understand
and comply with the Exchange's rules. The Exchange also believes that
the proposed rule changes would remove impediments to and perfects the
mechanism of a free and open market by ensuring that persons subject to
the Exchange's jurisdiction, regulators, and the investing public can
more easily navigate and understand the Exchange's rules. The proposed
rule 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 the increased transparency and clarity, thereby
reducing potential 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.
Intramarket Competition
The Exchange believes the proposed rule changes do not impose any
burden on intramarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule changes
are not intended to address competitive issues but rather are concerned
solely with removing a single misleading word and including more
precise rule cross-references with no proposed changes to related
functionality.
Intermarket Competition
The Exchange believes the proposed rule changes do not impose any
burden on intermarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule changes
are not intended to address competitive issues but rather are concerned
solely with removing a single misleading word and including more
precise rule cross-references with no proposed changes to related
functionality.
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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) \10\ thereunder.
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; or (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6) \12\ thereunder.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of its
intent to file the proposed rule change, along with a brief
description and text of 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 will institute proceedings to
determine whether the proposed rule change 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
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<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#146661787139777b7979717a6067546771773a737b62"><span class="__cf_email__" data-cfemail="3745425b521a54585a5a525943447744525419505841">[email protected]</span></a>. Please include
file number SR-PEARL-2025-33 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-2025-33. 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 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-2025-33 and
should be submitted on or before August 8, 2025.
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).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-13472 Filed 7-17-25; 8:45 am]
BILLING CODE 8011-01-P
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