[Federal Register Volume 85, Number 47 (Tuesday, March 10, 2020)]
[Notices]
[Pages 13957-13961]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04901]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88323; File No. SR-CboeEDGA-2020-005]
Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice
of Filing of a Proposed Rule Change To Amend EDGA Rule 11.8(e), Which
Describes the Handling of MidPoint Discretionary Orders Entered on the
Exchange
March 5, 2020.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 28, 2020, Cboe EDGA Exchange, Inc. (the ``Exchange'')
filed with the Securities and Exchange Commission (the ``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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe EDGA Exchange, Inc. (``EDGA'' or the ``Exchange'') is filing
with the Securities and Exchange Commission (the ``Commission'') a
proposed rule change to amend EDGA Rule 11.8(e), which describes the
handling of MidPoint Discretionary Orders entered on the Exchange. The
text of the proposed rule change is provided in Exhibit 5.
The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/edga/), at the Exchange's Office of the Secretary, 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
A MidPoint Discretionary Order (``MDO'') is a limit order to buy
that is pegged to the national best bid (``NBB''), with discretion to
execute at prices up to and including the midpoint of the national best
bid or offer (``NBBO''), or a limit order to sell that is pegged to the
national best offer (``NBO''), with discretion to execute at prices
down to and including the midpoint of the NBBO.\3\ The purpose of the
proposed rule change is to amend EDGA Rule 11.8(e) to introduce two
optional instructions that Users would be able to include on MDOs
entered on the Exchange. First, the Exchange would allow Users to enter
MDOs with an offset to the NBBO, similar to orders entered with a
Primary Peg Instruction today.\4\ Second, the Exchange would allow
Users to enter MDOs that include a Quote Depletion Protection (``QDP'')
instruction that would disable discretion for a limited period in
certain circumstances where the best bid or offer displayed on the EDGA
Book is executed or cancelled below one round lot. The Exchange
believes that both of these features would enhance the usefulness of
MDOs to members and investors, and would allow the exchange to better
compete with other national securities exchanges that currently offer
order types that include similar features.
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\3\ See EDGA Rule 11.8(e).
\4\ See EDGA Rule 11.6(j)(2).
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Offset Instruction
As explained, MDOs are pegged to the same side of the NBBO, with
discretion to execute at prices to and including the midpoint of the
NBBO. An MDO is therefore similar to an order entered with both a
Primary Peg instruction and an instruction to exercise discretion to
the NBBO midpoint. It is also similar to certain order types offered by
other national securities exchanges, including Discretionary Peg Orders
offered by the Investors Exchange LLC (``IEX'').\5\
[[Page 13958]]
Today, Users can include an offset on orders entered on the Exchange
that include a Primary Peg instruction, which allows them to specify
that the order be pegged to a price above or below the NBB or NBO to
which the order is pegged. Specifically, pursuant to Rule 11.6(j)(2),
which defines the Primary Peg instruction, a User may, but is not
required to, select an offset equal to or greater than one Minimum
Price Variation (``MPV'') above or below the applicable NBB or NBO.
Although an offset is generally available to Users that enter an order
with the Primary Peg instruction, it is not available for an MDO that
is similarly pegged to the same side of the NBBO--i.e., pegged to NBB
for buy orders, or NBO for sell orders. The Exchange now proposes to
extend the flexibility to include an offset instruction to MDOs, thus
increasing the usefulness of this order type.
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\5\ See IEX Rule 11.190(b)(10). Discretionary Peg Orders on IEX
are posted at the less aggressive of one MPV less aggressive than
the primary quote or the order's limit price.
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As proposed, MDOs entered with an offset would function in the same
manner as currently implemented for Primary Peg orders entered with an
offset pursuant to Rule 11.6(j)(2), thereby ensuring a familiar and
consistent experience for Users. First, a User entering an MDO would be
able to select an offset equal to or greater than one MPV above or
below the NBB or NBO that the order is pegged to (``Offset Amount'').
Second, the Offset Amount for an MDO that is to be displayed on the
EDGA Book would need to result in the price of such order being
inferior to or equal to the inside quote on the same side of the
market.\6\ Although the Exchange expects that some Users may continue
to want MDOs that are ranked at the same side of the NBBO without any
offset, certain other Users may find the offset functionality useful as
it would allow them to specify more or less aggressive pegged prices
for MDOs resting on the EDGA Book. The Exchange is therefore proposing
to introduce the offset functionality as an optional feature that can
be included at the preference of the User entering an MDO for trading
on the Exchange.
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\6\ An MDO defaults to a Displayed instruction unless the User
includes a Non-Displayed instruction on the order. See EDGA Rule
11.8(e)(4). Similar to the current handling of orders entered with a
Primary Peg instruction, the Exchange is not proposing to accept
displayed MDOs with an aggressive offset at this time. Such orders
would add functionality to the Exchange that would effectively set
the NBBO through a pegged order, and the Exchange believes that this
could potentially add complexity to its System.
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The proposed changes related to the offset instruction are included
in proposed subparagraph (9) under EDGA Rule 11.8(e). In addition, the
Exchange proposes to make conforming changes to language currently
included in EDGA Rule 11.8(e). First, the MDO definition would be
amended to provide that an MDO is pegged to the NBB or NBO ``with or
without an offset.'' Second, language that describes when an MDO is
executable at its limit price would be amended to state that an MDO to
buy (sell) with a limit price that is less (higher) than its pegged
price, including any offset, is posted to the EDGA Book at its limit
price. This change would replace references to circumstances where an
MDO is posted to the EDGA Book at its limit price due to such limit
price being less aggressive than the prevailing NBB or NBO, as the
applicable NBB or NBO is not the relevant pegged price for MDOs entered
with an offset. Third, the Exchange would amend language contained in
EDGA Rule 11.8(e)(6) and (8), which deal with limit up-limit down
(``LULD'') and locked/crossed market handling, respectively, to account
for the fact that an MDO entered with an offset would not be posted at
the NBB or NBO. Specifically, the Exchange would amend EDGA Rule
11.8(e)(6) to reference handling in situations where the applicable
LULD price band is at or through the ``the order's pegged price''
rather than ``an existing Protected Bid'' or ``an existing Protected
Offer.'' With the introduction of an offset, the Exchange's LULD
handling would only apply when the LULD price band is at or through the
pegged price of the MDO, which could be different from the price of an
existing Protected Bid or Offer. Similarly, the Exchange would amend
EDGA Rule 11.8(e)(8) to provide that an MDO's pegged price would be
adjusted to the current NBO (for bids) or NBB (for offers), when ``an
MDO posted on'' the EDGA Book is crossed by another market. The current
version of the rule references the EDGA Book being crossed by another
market since the MDO would be posted at the best price available on the
Exchange (i.e., the applicable NBB or NBO). With the introduction of an
offset, however, an MDO may be more or less aggressive than the NBB or
NBO, and this handling would apply when the posted MDO is itself
crossed by another market. Each of these changes are meant to reflect
the proposed operation of MDOs that are entered with an offset, as
previously described, and would not otherwise impact the handling of
MDOs entered on the Exchange.
Quote Depletion Protection
The Exchange also proposes to introduce an optional instruction
that Users would be able to include on an MDO to limit the order's
ability to exercise discretion in certain circumstances: ``Quote
Depletion Protection'' or ``QDP.'' \7\ Similar to crumbling quote
features offered for Discretionary Peg Orders entered on IEX, QDP would
restrict the exercise of discretion on MDOs entered with this
instruction in circumstances where applicable market conditions
indicate that it may be less desirable to execute within an order's
discretionary range.\8\ The QDP feature would do this by tracking
significant executions or cancellations of orders that constitute the
best bid or offer on EDGA.\9\ As proposed, a ``QDP Active Period''
would be enabled or refreshed for buy (sell) MDOs if the best bid
(offer) displayed on the EDGA Book is either: (A) Executed below one
round lot; or (B) at the national best bid (offer) and cancelled below
one round lot.\10\ During this QDP Active Period, an MDO entered with a
QDP instruction would not exercise discretion for a limited period of
time. Instead, such an order would be only be executable at its ranked
price.\11\
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\7\ Proposed changes related to the introduction of the QDP
instruction are reflected in proposed subparagraph (10) under EDGA
Rule 11.8(e).
\8\ A Discretionary Peg order resting on IEX is only eligible to
trade at its resting price during periods of ``quote instability.''
See IEX Rule 11.190(b)(10). In turn, IEX Rule 11.190(g) describes
IEX's quote instability calculation, which uses a proprietary
mathematical formula ``to assess the probability of an imminent
change to the current Protected NBB to a lower price or Protected
NBO to a higher price.''
\9\ The Exchange would look to the terms of any replacement
order to determine if an order modified by a cancel/replace message
pursuant to EDGA Rule 11.10(e) qualifies as a cancellation that
would trigger a QDP Active Period. For example, a cancel/replace
message that increases the size of an order would not trigger a QDP
Active Period, notwithstanding that the message cancels the order
before replacing it with greater size.
\10\ Rule 611 of Regulation NMS generally limits executions to
prices that are at or better than the protected best bid or offer.
However, there are circumstances, such as the use of intermarket
sweep orders, where an order may be executed at an inferior price.
In these circumstances, an execution of the EDGA BBO below one round
lot would trigger a QDP Active Period even though that quotation is
inferior to the NBBO.
\11\ An MDOs ranked price is the order's displayed or non-
displayed pegged price, which may or may not include an offset, as
proposed, or the order's limit price if that limit price is less
aggressive than the applicable pegged price.
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Once activated, the QDP Active Period would remain in place to
prevent the execution of MDOs within their discretionary ranges for a
specified period. Specifically, the Exchange proposes that when a QDP
Active Period is initially enabled, or refreshed by a subsequent
execution or cancellation of the best bid (offer) then
[[Page 13959]]
displayed on the EDGA Book, it would remain enabled for a configurable
period of up to five milliseconds. The Exchange would determine the
duration of the QDP Active Period, and would publish this value in a
circular distributed to members. As the Exchange gains experience with
the proposed QDP functionality, it may revise the chosen duration to
better reflect the needs of members and investors using the
instruction. Such changes would be made with the goal of facilitating
the protection provided by the QDP instruction, while at the same time
not unduly limiting the ability of orders entered with this instruction
to exercise discretion and execute at more aggressive prices within the
order's discretionary range.
Finally, since the QDP instruction is designed to protect resting
MDOs based on the execution or cancellation of the best bids and offers
displayed on the EDGA Book, the Exchange anticipates that Users may
prefer to utilize the QDP instruction along with an offset instruction
that results in the MDO being posted at a price that is inferior to the
applicable NBB or NBO (with discretion to the midpoint). The Exchange
also believes that given the less aggressive offset, and the fact that
these orders are seeking additional protection, there may be less
incentive for Users to include a Displayed instruction. As a result,
unless the User chooses otherwise, an MDO to buy (sell) entered with a
QDP instruction would default to a Non-Displayed instruction and would
include an Offset Amount equal to one Minimum Price Variation below
(above) the NBB (NBO).\12\ This implementation is similar to the
implementation of Discretionary Peg Orders on IEX but would permit
Users to change these default instructions based on their specific
needs.\13\
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\12\ The Exchange also proposes to amend EDGA Rule 11.8(e)(4) to
reflect the fact that MDOs entered with a QDP instruction would
default to Non-Displayed. MDOs that are not entered with the QDP
instruction would continue to default to a Displayed instruction, as
currently provided in EDGA Rule 11.8(e)(4).
\13\ As previously discussed, Discretionary Peg Orders on IEX
are posted at the less aggressive of one MPV less aggressive than
the primary quote or the order's limit price. See supra note 5. Such
orders are also Non-Displayed. See IEX Rule 11.190(a)(3).
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Examples. The examples below illustrate the proposed operation of
the QDP instruction: \14\
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\14\ For purposes of these examples, orders are reflected in the
order in which they are received, and only the identified orders are
present on the EDGA Book.
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Example 1:
QDP Active Period = 2 milliseconds
NBBO: $10.00 x $10.01
Order 1: Buy 100 shares @$10.00 Displayed
Order 2: Buy 200 shares @$10.01--MDO with QDP, Hidden, Offset =-$0.01
Order 3: Sell 1 shares @$10.00 IOC--Time = 12:00:00:000
Order 4: Sell 100 shares @$10.00 Midpoint Pegged IOC--Time =
12:00:00:001
Order 2, which is an MDO to buy, is ranked at $9.99 non-displayed
with discretion to the midpoint price of $10.005. When Order 3 is
entered it will trade a single share with Order 1 at $10.00, triggering
a QDP Active Period for Order 2 because of the execution of the EDGA
Best Bid below one round lot. This restricts the ability for Order 2 to
exercise discretion for two milliseconds, and prevents the execution of
Order 4 within Order 2's discretionary range. As a result, the Order 4
would be cancelled without an execution.
Example 2:
QDP Active Period = 2 milliseconds
NBBO: $10.00 x $10.01
Order 1: Buy 100 shares @$10.00 Displayed
Order 2: Buy 200 shares @$10.01--MDO with QDP, Hidden, Offset =-$0.01
Order 3: Sell 200 shares @$9.99 ISO IOC--Time = 12:00:00:000
This example is the same as Example 1, except that Order 3 is an
ISO IOC for 200 shares that is priced equal to the non-displayed ranked
price of Order 2, and there is no Order 4. Order 3 would trade 100
shares with Order 1 at $10.00, triggering a QDP Active Period. However,
the triggering of a QDP Active Period would not prevent the execution
of an MDO at its ranked price. As a result, Order 3 would trade its
remaining 100 shares with Order 2 at $9.99.
Example 3:
QDP Active Period = 2 milliseconds
NBBO: $10.00 x $10.01
Order 1: Buy 100 shares @$10.00 Displayed
Order 2: Buy 200 shares @$10.01--MDO with QDP, Hidden, Offset =-$0.01
Order 3: Sell 100 share @$10.00 IOC--Time = 12:00:00:000
Order 4: Sell 100 shares @$10.00 Midpoint Pegged IOC--Time =
12:00:00:003
This example is the same as Example 1, except that Order 3 is for
100 shares and Order 4 is entered after the QDP Active Period has
concluded. In this example, Order 3 would trade 100 shares with Order 1
at $10.00, triggering a QDP Active Period. The QDP Active Period
triggered by the execution of the EDGA Best Bid below one round lot
would be disabled after two milliseconds, and Order 4 would execute 100
shares against Order 2 at $10.005.
Example 4:
QDP Active Period = 2 milliseconds
NBBO: $10.00 x $10.01
Order 1: Buy 100 shares @$10.00 Displayed
Order 2: Buy 200 shares @$10.01--MDO with QDP, Hidden, Offset =-$0.01
Order 3: Sell 200 shares @$10.00 IOC--Time = 12:00:00:000
Order 2, which is an MDO to buy, is ranked at $9.99 non-displayed
with discretion to the midpoint price of $10.005. When Order 3 is
entered it would first trade 100 shares with Order 1 at $10.00. A QDP
Active Period is then immediately enabled for Order 2 because of the
execution of the EDGA Best Bid below one round lot. This restricts the
ability for Order 2 to exercise discretion for two milliseconds, and
prevents the execution of the remaining 100 shares of Order 3 within
Order 2's discretionary range. As a result, the remaining quantity of
Order 3 would be cancelled.
Example 5:
QDP Active Period = 2 milliseconds
NBBO: $10.00 x $10.01
Order 1: Buy 100 shares @$10.00 Displayed
Order 2: Buy 200 shares @$10.01--MDO with QDP, Hidden, Offset =-$0.01
Order 1: Full Cancel--Time = 12:00:00:000
Order 3: Sell 200 shares @$10.00 IOC--Time = 12:00:00:001
This example is the same as Example 4, except that Order 1 is
cancelled one millisecond before the receipt of Order 3. Because Order
1, which establishes the EDGA Best Bid, is priced at the NBB, a QDP
Active period would be immediately enabled following its cancellation.
This restricts the ability for Order 2 to exercise discretion for two
milliseconds, and prevents the execution of Order 3 within Order 2's
discretionary range. As a result, Order 3 would be cancelled without an
execution.
Example 6:
QDP Active Period = 2 milliseconds
NBBO: $10.00 x $10.01
Order 1: Sell 100 shares @$10.01 Displayed
Order 2: Buy 200 shares @$10.01--MDO with QDP, Hidden, Offset =-$0.01
Order 1: Full Cancel--Time = 12:00:00:000
Order 3: Sell 200 shares @$10.00 IOC--Time = 12:00:00:001
This example is the same as Example 5, except that Order 1 is an
offer priced at the NBO rather than a bid at the NBB. A QDP Active
Period for an MDO would
[[Page 13960]]
only enabled by an execution or cancellation of an order on the same
side of the market. Thus, Order 2, which is an MDO to buy, would not be
impacted by the cancellation of Order 1, which is an order to sell. As
a result, Order 3 would execute 200 shares with Order 2 at $10.00.
Example 7:
QDP Active Period = 2 milliseconds
NBBO: $10.00 x $10.01
Order 1: Buy 100 shares @$9.99 Displayed
Order 2: Buy 200 shares @$10.01--MDO with QDP, Hidden, Offset =-$0.01
Order 1: Full Cancel--Time = 12:00:00:000
Order 3: Sell 200 shares @$10.00 IOC--Time = 12:00:00:001
This example is the same as Example 5, except that Order 1 is
entered at a price that is inferior to the NBB. Because Order 1 is not
at the NBB, its cancellation does not trigger a QDP Active Period. As a
result, Order 3 would trade 200 shares with Order 2 at $10.00.
Example 8:
QDP Active Period = 2 milliseconds
NBBO: $10.00 x $10.01
Order 1: Buy 100 shares @$9.99 Displayed
Order 2: Buy 100 shares @10.00 Displayed
Order 3: Buy 100 shares @$10.01--MDO with QDP, Hidden, Offset =-$0.02
Order 4: Sell 100 shares @$10.00 IOC--Time = 12:00:00:000
Order 5: Sell 100 shares @$9.99 ISO IOC--Time = 12:00:00:001
Order 6: Sell 100 shares @$10.00 ISO IOC--Time = 12:00:00:002
Order 3, which is an MDO to buy, is ranked at $9.98 non-displayed
with discretion to the midpoint price of $10.005. When Order 4 is
entered it would trade 100 shares with Order 2 at $10.00. A QDP Active
Period is then immediately enabled for Order 3 because of the execution
of the EDGA Best Bid below one round lot. This restricts the ability
for Order 3 to exercise discretion for two milliseconds. When Order 5
is entered it would trade 100 shares with Order 1, which is now the
EDGA Best Bid, at $9.99, refreshing the QDP Active Period and extending
it until 12:00:00:003. When Order 6 is entered it would be cancelled
without an execution as Order 3 would still be subject to the extended
QDP Active Period.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the requirements of Section 6(b) of the Act,\15\ in general, and
Section 6(b)(5) of the Act,\16\ in particular, in that it is designed
to remove impediments to and perfect the mechanism of a free and open
market and a national market system, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest and not to permit unfair discrimination between
customers, issuers, brokers, or dealers. The two proposed changes would
increase the usefulness of MDOs offered by the Exchange, and would
allow the Exchange to better compete with order types on other national
securities exchanges that offer similar features to their members.
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\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(5).
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Offset Instruction for MDOs
The Exchange believes that it is consistent with the protection of
investors and the public interest to introduce an offset instruction
that Users could choose to include on their MDOs.\17\ With this
proposed change, MDOs would behave similarly to orders entered with a
Primary Peg instruction today in that such orders could be entered with
an offset that results in the order being pegged to a price that is
more or less aggressive than the applicable NBB or NBO on the same side
of the market (i.e., NBB for buy orders and NBO for sell orders). This
change would make MDOs a more flexible tool for members and investors.
Further, the introduction of the offset instruction on MDOs would be
similar to and competitive with features offered on other national
securities exchanges that offer similar order types. For example,
Discretionary Peg Orders offered on IEX are pegged one MPV less
aggressive than the applicable NBB or NBO when posted to the order
book, with discretion to the midpoint of the NBBO (subject to the
order's limit price). Introducing an offset instruction for MDOs
offered on EDGA would allow members and investors that trade on the
Exchange to utilize similar functionality. Such functionality could be
used for a number of purposes, including to mitigate risk by posting an
order at a price that is lower (higher) than the prevailing NBB (NBO).
At the same time, the offset instruction would be offered on a purely
voluntary basis, and with flexibility for Users to choose the amount of
any offset, thereby maintaining flexibility to continue using the
current offering, which pegs MDOs to the applicable NBB or NBO without
an offset, and to choose different offsets based on a User's specific
needs. As is the case for orders entered with a Primary Peg instruction
and an offset, displayed MDOs would not be accepted with an offset that
results in such orders being posted at a price that is better than the
applicable NBB or NBO. Users that wish to enter an MDO with an
aggressive offset would be required to enter such orders with a non-
displayed instruction, thereby ensuring that such orders would not be
eligible to set a new NBBO, which the Exchange believes may
unnecessarily increase the complexity of its System.\18\
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\17\ The Exchange notes that technical changes proposed to EDGA
Rule 11.8(e), including paragraphs (6) and (8) thereunder merely
reflect language changes that are necessary since an MDO would be
allowed with an offset. The Exchange believes that these changes
would promote just and equitable principles of trade as they would
ensure that MDO handling remains transparent with the introduction
of the offset instruction.
\18\ See supra note 6.
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Quote Depletion Protection
The Exchange also believes that it is consistent with the
protection of investors and the public interest to introduce the QDP
instruction to provide additional protection to Users that enter MDOs
with this instruction. Similar to Discretionary Peg Orders offered by
IEX, the QDP instruction would provide Users with protective features
that would limit the order's ability to exercise discretion in certain
circumstances that may be indicative of a quotation that is moving
against the resting MDO--i.e., a buy quotation that is moving to a
lower price for MDOs to buy, or a sell quotation that is moving to a
higher price for MDOs to sell. The specific trigger for enabling a QDP
Active Period, or refreshing a QDP Active Period that has already been
enabled, would be based on the execution or cancellation of the best
bid or offer displayed by the Exchange on the same side of the market.
Any trade that results in such bid or offer being executed below one
round lot would trigger a QDP Active Period. A cancellation of the
Exchange's best bid or offer below one round lot, however, would only
trigger a QDP Active period if such best bid or offer quotation is also
at the NBBO. The Exchange believes that a cancellation of orders
displayed at the Exchange's best bid or offer, but not at the NBBO, may
not be indicative of an quotation that is about to transition to a less
aggressive price, and is therefore proposing to limit the triggering of
a QDP Active Period to instances where that quotation is at the best
price available in the market. When a QDP Active Period is enabled or
refreshed, the MDO would forgo discretion for a limited period but
would remain executable at its
[[Page 13961]]
displayed or non-displayed ranked price. Thus, the QDP instruction may
provide additional comfort to Users entering MDOs that would allow them
to utilize discretion, and thereby provide potential price improvement
opportunities to incoming orders, while at the same time limiting the
exercise of discretion in circumstances where an execution within the
order's discretionary range may be undesirable. The Exchange therefore
believes that the introduction of the QDP instruction would remove
impediments to and perfect the mechanism of a free and open market and
a national market system. Further, while the QDP instruction would be
available to all Users, use of this instruction would be voluntary,
meaning that Users could choose to use this instruction, or not, based
on their specific needs.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. To the contrary, the
proposal is a competitive response to similar features available on
other markets, such as IEX, and would therefore facilitate increased
competition between exchange markets. As with other national securities
exchanges, the Exchange must continually assess and improve its
offerings to compete with other exchanges and off-exchange venues. The
proposed rule change is indicative of this competition. Further, the
Exchange does not believe that the proposed rule change would implicate
any competitive concerns with respect to its Users. Both instructions
proposed to be introduced for MDOs with this filing would be available
to all Users on an equal and non-discriminatory basis. Rather than
impede competition, the proposed rule change would provide additional
tools for members and investors to facilitate their trading goals.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No comments were solicited or received on the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be 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
Use 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-CboeEDGA-2020-005 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-CboeEDGA-2020-005. 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 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-CboeEDGA-2020-005, and should be
submitted on or before March 31, 2020.
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\19\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-04901 Filed 3-9-20; 8:45 am]
BILLING CODE 8011-01-P