[Federal Register Volume 84, Number 248 (Friday, December 27, 2019)]
[Notices]
[Pages 71519-71521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27874]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87807; File No. SR-EMERALD-2019-37]
Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Exchange Rule 515, Execution of Orders and Quotes
December 19, 2019.
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 December 16, 2019, MIAX Emerald, LLC (``MIAX Emerald'' or
``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
The Exchange is filing a proposal to amend Exchange Rule 515,
Execution of Orders and Quotes, to make minor, non-substantive edits
and clarifying changes to the rule text.
The text of the proposed rule change is available on the Exchange's
website at http://www.miaxoptions.com/rule-filings/emerald at MIAX
Emerald'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.
[[Page 71520]]
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 515, Execution of
Orders and Quotes, to make minor, non-substantive edits and clarifying
changes to the rule text in order to provide consistency and clarity
within the rule text. Specifically, the Exchange proposes to amend
subsection (c)(1)(ii)(C)3. to correct a citation to the subsection that
discusses the Managed Interest Process. Subsection (c)(1)(ii)(C)3. of
Exchange Rule 515 currently states:
If the Exchange receives a new Post-Only OQ on the opposite side
of the market from a Post-Only Order being managed under this
subsection (c)(1)(ii)(B) and the new Post-Only OQ locks or crosses
the Book price of the resting Post-Only Order, the Exchange will re-
book the resting Post-Only Order at the same price as its displayed
price and manage the resting Post-Only Order and the new Post-Only
OQ under the POP Process of subsection (i) of this Rule.
The Exchange proposes to amend the citation to ``subsection
(c)(1)(ii)(B)'' in subsection (c)(1)(ii)(C)3. to remove the citation to
item ``(B).'' Accordingly, with the proposed change, the new citation
will be to the general section covering the Managed Interest Process
for Non-Routable orders, which is subsection (c)(1)(ii). The purpose of
this proposed change is to provide consistency and clarity within the
rule text.
Next, the Exchange proposes to make several amendments to
subsection (c)(1)(ii)(B) of Exchange Rule 515 to correct the
punctuation in that subsection. Subsection (c)(1)(ii)(B) currently
provides that if the limit price of an order locks or crosses the
current opposite side ABBO and the EBBO is inferior to the ABBO, the
System \3\ will display the order one MPV away from the current
opposite side ABBO, and book the order at a price that will lock the
current opposite side ABBO. Should the ABBO price change to an inferior
price level, the order's Book price will continuously re-price to lock
the new ABBO and the managed order's displayed price will continuously
re-price one MPV away from the new ABBO until (1) the order has traded
to and including its limit price, (2) the order has traded to and
including its price protection limit at which time any remaining
contracts are cancelled, (3) the order is fully executed or (4) the
order is cancelled. The Exchange now proposes to insert a colon at the
end of the second sentence in subsection (c)(1)(ii)(B) that leads into
the four different scenarios that describe when the System will stop
repricing the order pursuant to the Managed Interest Process. Further,
the Exchange proposes to delete the commas after each sentence in
subsections (c)(1)(ii)(B)(1) through (c)(1)(ii)(B)(3), and replace
those commas with semicolons. The purpose of these changes is to
provide consistency and clarity throughout the rule text.
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\3\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
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2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) of the Act \4\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \5\ 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.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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The Exchange believes the proposed changes promote just and
equitable principles of trade and remove impediments to and perfect the
mechanism of a free and open market and a national market system
because the proposed changes make clarifying edits to the rule text of
Exchange Rule 515, and correct an error to a particular citation to
provide uniformity in the Exchange's rulebook. The Exchange believes
that these proposed changes will provide greater clarity to Members and
the public regarding the Exchange's rules and that it is in the public
interest for rules to be accurate and concise so as to eliminate the
potential for confusion.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. Specifically, the Exchange
believes the proposed changes will not impose any burden on intra-
market competition as there is no functional change to the Exchange's
System and because the rules of the Exchange apply to all MIAX Emerald
participants equally. The proposed rule changes will have no impact on
competition as they are not designed to address any competitive issues
but rather are designed to remedy minor non-substantive issues and
provide added clarity to the rule text of Exchange Rule 515. In
addition, the Exchange does not believe the proposal will impose any
burden on inter-market competition as the proposal does not address any
competitive issues and is intended to protect investors by providing
further transparency regarding the Exchange's 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
Because the 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 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 \6\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\7\
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6). In addition, Rule19b-4(f)(6)(iii)
requires a self-regulatory organization 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:
[[Page 71521]]
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-EMERALD-2019-037 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-EMERALD-2019-037. 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-EMERALD-2019-037 and should be submitted
on or before January 17, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019-27874 Filed 12-26-19; 8:45 am]
BILLING CODE 8011-01-P