83 FR 41126 - Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to the Exchange Rule 514 Priority on the Exchange
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 160 (August 17, 2018)
Federal Register Volume 83, Issue 160 (August 17, 2018)
| Page Range | 41126-41128 | |
| FR Document | 2018-17740 |
[Federal Register Volume 83, Number 160 (Friday, August 17, 2018)] [Notices] [Pages 41126-41128] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-17740] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83835; File No. SR-PEARL-2018-15] Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to the Exchange Rule 514 Priority on the Exchange August 13, 2018. 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 August 1, 2018, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend Exchange Rule 514, Priority on the Exchange. The text of the proposed rule change is available on the Exchange's website at http://www.miaxoptions.com/rule-filings/pearl 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 Exchange Rule 514, Priority on the Exchange. Specifically, the Exchange proposes to amend subsection (c), Self-Trade Protection, to broaden the protection afforded under the current rule by giving Members \3\ the option to have this protection apply at the market participant identifier (``MPID'') \4\ level (i.e., currently existing functionality), or at the firm level. The Exchange believes that this enhancement will provide helpful flexibility for market making firms that wish to prevent trading against all orders entered by their firm under any MPID, instead of just those entered under the same MPID. --------------------------------------------------------------------------- \3\ The term ``Member'' means an individual or organization that is registered with the Exchange pursuant to Chapter II of MIAX PEARL 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 Exchange Rule 100. \4\ The term ``MPID'' means unique market participant identifier. See Exchange Rule 100. --------------------------------------------------------------------------- Currently, the rule prevents orders entered by a Market Maker \5\ via the MEO Interface \6\ or the FIX Interface \7\ using the same MPID from executing against orders entered on the opposite side of the market by the same Market Maker using the same MPID via the MEO Interface or the FIX Interface.\8\ In such a case, the System \9\ will cancel the oldest of the orders back to the entering party prior to execution. --------------------------------------------------------------------------- \5\ The term ``Market Maker'' or ``MM'' means a Member registered with the Exchange for the purpose of making markets in options contracts traded on the Exchange and that is vested with the rights and responsibilities specified in Chapter VI of the MIAX PEARL Rules. See Exchange Rule 100. \6\ The term ``MEO Interface'' means a binary order interface used for submitting certain order types (as set forth in Rule 516) to the MIAX PEARL System. See Exchange Rule 100. \7\ The term ``FIX Interface'' means the Financial Information Exchange interface used for submitting certain order types (as set forth in Rule 516) to the MIAX PEARL System. See Exchange Rule 100. \8\ See Exchange Rule 514(c)(1). \9\ The term ``System'' means the automated trading system used by the Exchange for the trading of securities. See Exchange Rule 100. --------------------------------------------------------------------------- Members of the Exchange may either be Market Makers or Electronic Exchange Members.\10\ Each Market Maker and Electronic Exchange Member is assigned an MPID by the Exchange for identification purposes. A Member may have multiple Market Maker MPIDs on the Exchange, therefore the possibility exists that a Member may cross its own Market Maker's orders.\11\ --------------------------------------------------------------------------- \10\ The term ``Electronic Exchange Member'' or ``EEM'' means the holder of a Trading Permit who is a Member representing as agent Public Customer Orders or Non-Customer Orders on the Exchange and those non-Market Maker Members conducting proprietary trading. Electronic Exchange Members are deemed ``members'' under the Exchange Act. See Exchange Rule 100. \11\ The Exchange notes that if requested by an EEM, orders entered by an EEM via the MEO Interface using the same MPID will not be executed against orders entered on the opposite side of the market by the same EEM using the same MPID via the MEO Interface. In such a case, the System will cancel the oldest of the orders back to the entering party prior to execution. See Exchange Rule 514(c)(2). --------------------------------------------------------------------------- The Exchange now proposes to allow members to choose to have this protection applied at either the MPID level, as currently implemented, or at the member firm level. If members choose to have this protection applied at the member firm level, the System will prohibit orders entered from different MPIDs within the Member's firm from trading against one another. The Exchange believes that the proposed enhancement will provide Members with more tailored self-trade functionality that will allow Members to manage their trading as appropriate based on the Member's business needs. While the Exchange believes that some firms will want to restrict trading interest from the same MPID, (as currently implemented), the Exchange believes that other firms will find it helpful to apply self-trade protection across all MPIDs of the same firm. The Exchange note that similar functionality also exists on the Nasdaq Stock Market (``NASDAQ'') which prevents self-trades by MPID, or alternatively, if selected by the member, self-trade protection for all MPIDs of the firm.\12\ Cboe BZX Exchange (``CboeBZX'') also has a similar rule in place which provides members the ability to apply Match Trade Prevention (``MTP'') modifiers (CboeBZX's version [[Page 41127]] of self-trade protection) based on MPID, Exchange Member, trading group, or Exchange Sponsored Participant identifiers.\13\ --------------------------------------------------------------------------- \12\ See Nasdaq Stock Market Rule, Chapter VI, Sec. 18(c)(1). \13\ See Cboe BZX Exchange Rule 11.9(f). --------------------------------------------------------------------------- The Exchange will announce the implementation date of this functionality via a Regulatory Circular prior to the functionality being available on the Exchange. 2. Statutory Basis MIAX PEARL believes that its proposed rule changes are consistent with Section 6(b) of the Act \14\ in general, and furthers the objectives of Section 6(b)(5) of the Act \15\ in particular, in that 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 facilitating transactions in securities, to remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f(b). \15\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes the proposed changes promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system by providing Market Makers with additional flexibility to configure self- trade protections offered by the Exchange. Currently, all Market Makers are provided functionality that prevents orders entered by a Market Maker via the MEO Interface or the FIX Interface using the same MPID from executing against orders entered on the opposite side of the market by the same Market Maker using the same MPID via the MEO Interface or the FIX Interface. While this functionality is helpful, some members would prefer not to trade with orders entered under different MPIDs of the same firm. Therefore, the Exchange is proposing to provide Exchange Members flexibility with respect to how self-trade protections are implemented. Members may continue to use the current functionality, while members who prefer to prevent self-trades across different MPIDs within the same firm will now be provided with functionality that allows them to do so. Similar functionality exists on the Nasdaq Stock Market and CboeBZX \16\ and the Exchange believes that the flexibility to apply self-trade protection at either the MPID or firm level would be useful to Members of MIAX PEARL. The Exchange also believes that the proposed rule change is designed to promote just and equitable principles of trade and will remove impediments to and perfect the mechanisms of a free and open market as it will enhance self-trade protections provided to MIAX PEARL Market Makers similar to those protections provided on other markets. --------------------------------------------------------------------------- \16\ See supra note 12 and 13. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition MIAX PEARL does not believe that the proposed rule change will impose any burden on intermarket or intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is designed to enhance the Exchange's current self-trade protection, and will benefit members that wish to protect their orders from trading with orders from other Market Makers within the same firm, rather than the more limited MPID standard currently in use. The new functionality, which is similar to functionality already provided on CboeBZX, is also completely voluntary, and members that wish to use the current functionality may continue to do so. The Exchange does not believe that providing more flexibility to members will have any significant impact on competition. Conversely, the Exchange believes that the proposed rule change will foster competition as Market Makers may send more orders to the Exchange knowing that there is no chance that they will trade with their own orders on the other side of the market. This could result in more order flow and more liquidity on the Exchange. The Exchange does not believe that the proposed rule change will impose any burden on intra-market competition as self-trade protection is available to all Market Makers on the Exchange. Further, the Exchange does not believe that the proposed rule change will impose any burden on inter-market competition, and rather could potentially promote inter-market competition and result in more competitive order flow to the Exchange by more widely preventing Market Makers from trading with their own orders. 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 \17\ and Rule 19b-4(f)(6) \18\ thereunder. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(3)(A). \18\ 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. --------------------------------------------------------------------------- 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 CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-PEARL-2018-15 on the subject line. Paper Comments 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-2018-15. 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 (http://www.sec.gov/rules/sro.shtml). Copies of the [[Page 41128]] 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 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-PEARL-2018-15 and should be submitted on or before September 7, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2018-17740 Filed 8-16-18; 8:45 am] BILLING CODE 8011-01-P
![41126 Federal Register / Vol. 83, No. 160 / Friday, August 17, 2018 / Notices
Reference Room, 100 F Street NE, office, and at the Commission’s Public Maker using the same MPID via the
Washington, DC 20549, on official Reference Room. MEO Interface or the FIX Interface.8 In
business days between the hours of such a case, the System 9 will cancel the
II. Self-Regulatory Organization’s
10:00 a.m. and 3:00 p.m. Copies of the oldest of the orders back to the entering
Statement of the Purpose of, and
filing also will be available for party prior to execution.
Statutory Basis for, the Proposed Rule Members of the Exchange may either
inspection and copying at the principal
office of the Exchange. All comments Change be Market Makers or Electronic
received will be posted without change. In its filing with the Commission, the Exchange Members.10 Each Market
Persons submitting comments are Exchange included statements Maker and Electronic Exchange Member
cautioned that we do not redact or edit concerning the purpose of and basis for is assigned an MPID by the Exchange for
personal identifying information from the proposed rule change and discussed identification purposes. A Member may
comment submissions. You should any comments it received on the have multiple Market Maker MPIDs on
submit only information that you wish proposed rule change. The text of these the Exchange, therefore the possibility
to make available publicly. All statements may be examined at the exists that a Member may cross its own
submissions should refer to File places specified in Item IV below. The Market Maker’s orders.11
Number SR–ISE–2018–66 and should be Exchange has prepared summaries, set The Exchange now proposes to allow
submitted on or before September 7, forth in sections A, B, and C below, of members to choose to have this
2018. the most significant aspects of such protection applied at either the MPID
For the Commission, by the Division of statements. level, as currently implemented, or at
Trading and Markets, pursuant to delegated the member firm level. If members
A. Self-Regulatory Organization’s choose to have this protection applied at
authority.12
Statement of the Purpose of, and the member firm level, the System will
Robert W. Errett,
Statutory Basis for, the Proposed Rule prohibit orders entered from different
Deputy Secretary. Change MPIDs within the Member’s firm from
[FR Doc. 2018–17738 Filed 8–16–18; 8:45 am]
1. Purpose trading against one another. The
BILLING CODE 8011–01–P
Exchange believes that the proposed
The Exchange proposes to amend enhancement will provide Members
Exchange Rule 514, Priority on the with more tailored self-trade
SECURITIES AND EXCHANGE Exchange. Specifically, the Exchange functionality that will allow Members to
COMMISSION proposes to amend subsection (c), Self- manage their trading as appropriate
[Release No. 34–83835; File No. SR– Trade Protection, to broaden the based on the Member’s business needs.
PEARL–2018–15] protection afforded under the current While the Exchange believes that some
rule by giving Members 3 the option to firms will want to restrict trading
Self-Regulatory Organizations; MIAX have this protection apply at the market interest from the same MPID, (as
PEARL, LLC; Notice of Filing and participant identifier (‘‘MPID’’) 4 level currently implemented), the Exchange
Immediate Effectiveness of a Proposed (i.e., currently existing functionality), or believes that other firms will find it
Rule Change to the Exchange Rule 514 at the firm level. The Exchange believes helpful to apply self-trade protection
Priority on the Exchange that this enhancement will provide across all MPIDs of the same firm.
August 13, 2018.
helpful flexibility for market making The Exchange note that similar
Pursuant to the provisions of Section firms that wish to prevent trading functionality also exists on the Nasdaq
19(b)(1) of the Securities Exchange Act against all orders entered by their firm Stock Market (‘‘NASDAQ’’) which
of 1934 (‘‘Act’’) 1 and Rule 19b–4 under any MPID, instead of just those prevents self-trades by MPID, or
thereunder,2 notice is hereby given that entered under the same MPID. alternatively, if selected by the member,
on August 1, 2018, MIAX PEARL, LLC Currently, the rule prevents orders self-trade protection for all MPIDs of the
(‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed entered by a Market Maker 5 via the firm.12 Cboe BZX Exchange
with the Securities and Exchange MEO Interface 6 or the FIX Interface 7 (‘‘CboeBZX’’) also has a similar rule in
Commission (‘‘Commission’’) a using the same MPID from executing place which provides members the
proposed rule change as described in against orders entered on the opposite ability to apply Match Trade Prevention
Items I, II, and III below, which Items side of the market by the same Market (‘‘MTP’’) modifiers (CboeBZX’s version
have been prepared by the Exchange. 3 The term ‘‘Member’’ means an individual or 8 See Exchange Rule 514(c)(1).
The Commission is publishing this organization that is registered with the Exchange 9 The term ‘‘System’’ means the automated
notice to solicit comments on the pursuant to Chapter II of MIAX PEARL Rules for trading system used by the Exchange for the trading
proposed rule change from interested purposes of trading on the Exchange as an of securities. See Exchange Rule 100.
persons. ‘‘Electronic Exchange Member’’ or ‘‘Market Maker.’’ 10 The term ‘‘Electronic Exchange Member’’ or
Members are deemed ‘‘members’’ under the ‘‘EEM’’ means the holder of a Trading Permit who
I. Self-Regulatory Organization’s Exchange Act. See Exchange Rule 100. is a Member representing as agent Public Customer
4 The term ‘‘MPID’’ means unique market
Statement of the Terms of Substance of Orders or Non-Customer Orders on the Exchange
participant identifier. See Exchange Rule 100. and those non-Market Maker Members conducting
the Proposed Rule Change 5 The term ‘‘Market Maker’’ or ‘‘MM’’ means a proprietary trading. Electronic Exchange Members
The Exchange is filing a proposal to Member registered with the Exchange for the are deemed ‘‘members’’ under the Exchange Act.
amend Exchange Rule 514, Priority on purpose of making markets in options contracts See Exchange Rule 100.
traded on the Exchange and that is vested with the 11 The Exchange notes that if requested by an
the Exchange. rights and responsibilities specified in Chapter VI EEM, orders entered by an EEM via the MEO
The text of the proposed rule change
amozie on DSK3GDR082PROD with NOTICES1
of the MIAX PEARL Rules. See Exchange Rule 100. Interface using the same MPID will not be executed
is available on the Exchange’s website at 6 The term ‘‘MEO Interface’’ means a binary order against orders entered on the opposite side of the
http://www.miaxoptions.com/rule- interface used for submitting certain order types (as market by the same EEM using the same MPID via
set forth in Rule 516) to the MIAX PEARL System. the MEO Interface. In such a case, the System will
filings/pearl at MIAX PEARL’s principal See Exchange Rule 100. cancel the oldest of the orders back to the entering
7 The term ‘‘FIX Interface’’ means the Financial party prior to execution. See Exchange Rule
12 17 CFR 200.30–3(a)(12). Information Exchange interface used for submitting 514(c)(2).
1 15 U.S.C. 78s(b)(1). certain order types (as set forth in Rule 516) to the 12 See Nasdaq Stock Market Rule, Chapter VI, Sec.
2 17 CFR 240.19b–4. MIAX PEARL System. See Exchange Rule 100. 18(c)(1).
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![41128 Federal Register / Vol. 83, No. 160 / Friday, August 17, 2018 / Notices
submission, all subsequent comments on the proposed rule change Background
amendments, all written statements from interested persons. In November 2012, the Commission
with respect to the proposed rule approved the Program on a pilot basis.3
change that are filed with the I. Self-Regulatory Organization’s
Statement of the Terms of Substance of The Program is designed to attract retail
Commission, and all written order flow to the Exchange, and allow
communications relating to the the Proposed Rule Change
such order flow to receive potential
proposed rule change between the price improvement. The Program is
The Exchange filed a proposal to
Commission and any person, other than currently limited to trades occurring at
make permanent Rule 11.24, which sets
those that may be withheld from the prices equal to or greater than $1.00 per
public in accordance with the forth the Exchange’s pilot Retail Price
Improvement Program. share.4 Under the Program, a class of
provisions of 5 U.S.C. 552, will be market participant called a Retail
available for website viewing and The text of the proposed rule change Member Organization (‘‘RMO’’) is
printing in the Commission’s Public is available at the Exchange’s website at eligible to submit certain retail order
Reference Room, 100 F Street NE, www.markets.cboe.com, at the principal flow (‘‘Retail Orders’’) to the Exchange.
Washington, DC 20549, on official office of the Exchange, and at the Users 5 are permitted to provide
business days between the hours of Commission’s Public Reference Room. potential price improvement for Retail
10:00 a.m. and 3:00 p.m. Copies of the Orders 6 in the form of non-displayed
filing also will be available for II. Self-Regulatory Organization’s
Statement of the Purpose of, and interest that is better than the national
inspection and copying at the principal best bid that is a Protected Quotation
office of the Exchange. All comments Statutory Basis for, the Proposed Rule
(‘‘Protected NBB’’) or the national best
received will be posted without change. Change
offer that is a Protected Quotation
Persons submitting comments are (‘‘Protected NBO’’, and together with the
cautioned that we do not redact or edit In its filing with the Commission, the
Exchange included statements Protected NBB, the ‘‘Protected NBBO’’).7
personal identifying information from The Program was approved by the
comment submissions. You should concerning the purpose of and basis for
the proposed rule change and discussed Commission on a pilot basis running
submit only information that you wish one-year from the date of
to make available publicly. All any comments it received on the
proposed rule change. The text of these implementation.8 The Commission
submissions should refer to File
approved the Program on November 27,
Number SR–PEARL–2018–15 and statements may be examined at the
2012.9 The Exchange implemented the
should be submitted on or before places specified in Item IV below. The
Program on January 11, 2013, and has
September 7, 2018. Exchange has prepared summaries, set extended the pilot period five times.10
For the Commission, by the Division of forth in Sections A, B, and C below, of
Trading and Markets, pursuant to delegated the most significant parts of such 3 See Securities Exchange Act Release No. 68303
authority.19 statements. (November 27, 2012), 77 FR 71652 (December 3,
Robert W. Errett, 2012) (‘‘RPI Approval Order’’) (SR–BYX–2012–019).
Deputy Secretary.
(A) Self-Regulatory Organization’s 4 The Exchange will periodically notify the
Statement of the Purpose of, and membership regarding the securities included in
[FR Doc. 2018–17740 Filed 8–16–18; 8:45 am] the Program through an information circular.
Statutory Basis for, the Proposed Rule 5 A ‘‘User’’ is defined in Rule 1.5(cc) as any
BILLING CODE 8011–01–P
Change member or sponsored participant of the Exchange
who is authorized to obtain access to the System.
1. Purpose 6 A ‘‘Retail Order’’ is defined in Rule 11.24(a)(2)
SECURITIES AND EXCHANGE
as an agency order that originates from a natural
COMMISSION The purpose of the proposed rule person and is submitted to the Exchange by a RMO,
[Release No. 34–83831; File No. SR– change is to amend Rule 11.24 to make provided that no change is made to the terms of the
permanent the Retail Price Improvement order with respect to price or side of market and
CboeBYX–2018–014] the order does not originate from a trading
Program (the ‘‘Program’’), which is algorithm or any computerized methodology. See
Self-Regulatory Organizations; Cboe currently offered on a pilot basis. The Rule 11.24(a)(2).
BYX Exchange, Inc.; Notice of Filing of Exchange has operated the pilot for a six 7 The term Protected Quotation is defined in BYX
a Proposed Rule Change To Make year period and believes that it has been Rule 1.5(t) and has the same meaning as is set forth
Permanent Rule 11.24, Which Sets in Regulation NMS Rule 600(b)(58). The terms
successful in its stated goal of providing Protected NBB and Protected NBO are defined in
Forth the Exchange’s Pilot Retail Price price improvement opportunities to BYX Rule 1.5(s). The Protected NBB is the best-
Improvement Program retail investors. The analysis conducted priced protected bid and the Protected NBO is the
best-priced protected offer. Generally, the Protected
August 13, 2018. by the Exchange shows that retail NBB and Protected NBO and the national best bid
Pursuant to Section 19(b)(1) of the investors have been provided a total of (‘‘NBB’’) and national best offer (‘‘NBO’’, together
Securities Exchange Act of 1934 (the $4.5 million of price improvement with the NBB, the ‘‘NBBO’’) will be the same.
during the 2.5 year period reviewed However, a market center is not required to route
‘‘Act’’),1 and Rule 19b–4 thereunder,2 to the NBB or NBO if that market center is subject
notice is hereby given that on July 30, from January 2016 through June 2018. In to an exception under Regulation NMS Rule
2018, Cboe BYX Exchange, Inc. (the addition, the Exchange’s analysis shows 611(b)(1) or if such NBB or NBO is otherwise not
‘‘Exchange’’ or ‘‘BYX’’) filed with the that the Program has provided these available for an automatic execution. In such case,
the Protected NBB or Protected NBO would be the
Securities and Exchange Commission benefits to retail investors without best-priced protected bid or offer to which a market
(‘‘Commission’’) the proposed rule having an adverse impact on the broader center must route interest pursuant to Regulation
change as described in Items I, II and III
amozie on DSK3GDR082PROD with NOTICES1
market. The proposal provides an NMS Rule 611.
below, which Items have been prepared analysis of the economic benefits to
8 See RPI Approval Order, supra note 3 at 71652.
9 Id.
by the Exchange. The Commission is retail investors and the marketplace 10 See Securities Exchange Act Release Nos.
publishing this notice to solicit flowing from operation of the Program, 71249 (January 7, 2014), 79 FR 2229 (January 13,
19 17
which the Exchange believes supports 2014) (SR–BYX–2014–001); 74111 (January 22,
CFR 200.30–3(a)(12). 2015), 80 FR 4598 (January 28, 2015) (SR–BYX–
1 15 U.S.C. 78s(b)(1).
making the Program permanent.
2015–05); 76965 (January 22, 2016), 81 FR 4682
2 17 CFR 240.19b–4. (January 27, 2016) (SR–BYX–2016–01); 78180 (June
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Document Created: 2018-08-17 03:25:24
Document Modified: 2018-08-17 03:25:24
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 83 FR 41126 |
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