[Federal Register Volume 84, Number 127 (Tuesday, July 2, 2019)]
[Notices]
[Pages 31643-31644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14059]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86204; File No. SR-BYX-2012-019]
Self-Regulatory Organization; Cboe BYX Exchange, Inc.; Order
Granting an Extension to Limited Exemption From Rule 612(c) of
Regulation NMS in Connection With the Exchange's Retail Price
Improvement Program
June 26, 2019.
On November 27, 2012, the Securities and Exchange Commission
(``Commission'') issued an order pursuant to its authority under Rule
612(c) of Regulation NMS (``Sub-Penny Rule) \1\ that granted the BATS
BYX-Exchange, Inc. (k/n/a ``Cboe BYX'' or the ``Exchange'') a limited
exemption from the Sub-Penny Rule in connection with the operation of
the Exchange's Retail Price Improvement (``RPI'') Program (the
``Program''). The limited exemption was granted concurrently with the
Commission's approval of the Exchange's proposal to adopt the Program
for a one-year pilot term.\2\ The exemption was granted coterminous
with the effectiveness of the pilot Program and has been extended seven
times; \3\ both the pilot Program and exemption are scheduled to expire
on December 31, 2018.
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\1\ 17 CFR 242.612(c).
\2\ See Securities Exchange Act Release No. 68303 (November 27,
2012), 77 FR 71652 (December 3, 2012) (``RPI Approval Order'') (SR-
BXY-2012-019).
\3\ See Securities Exchange Act Release Nos. 71249 (January 7,
2014), 79 FR 2229 (January 13, 2012) (SR-BYX-2014-001) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Extend the Pilot Period for the RPI); 71250 (January 7, 2014), 79 FR
2234 (January 13, 2012) (Order Granting an Extension to Limited
Exemption From Rule 612(c) of Regulation NMS in Connection With the
Exchange's Retail Price Improvement Program); 74111 (January 22,
2015), 80 FR 4598 (January 28, 2015) (SR-BYX-2015-05) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Extend the Pilot Period for the RPI); and 74115 (January 22, 2015),
80 FR 4324 (January 27, 2015) (Order Granting an Extension to
Limited Exemption From Rule 612(c) of Regulation NMS in Connection
With the Exchange's Retail Price Improvement Program); 76965
(January 22, 2016), 81 FR 4682 (January 27, 2016) (SR-BYX-2016-01)
(Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change to Extend the Pilot Period for the RPI); 76953 (January 21,
2016), 81 FR 4728 (January 27, 2016) (Order Granting an Extension to
Limited Exemption From Rule 612(c) of Regulation NMS in Connection
With the Exchange's Retail Price Improvement Program); 78180 (June
28, 2016), 81 FR 43306 (July 1, 2016) (SR-BYX-2016-15) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Extend the Pilot Period for the RPI); 78178 (July 5, 2016), 81 FR
43689 (July 5, 2016) (Order Granting an Extension to Limited
Exemption From Rule 612(c) of Regulation NMS in Connection With the
Exchange's Retail Price Improvement Program); 81368 (August 10,
2017), 82 FR 38960 (August 16, 2017) (SR-BatsBYX-2017-18) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Extend the Pilot Period for the RPI); 81364 (August 8, 2018), 82 FR
38733 (August 15, 2017) (Order Granting an Extension to Limited
Exemption From Rule 612(c) of Regulation NMS in Connection With the
Exchange's Retail Price Improvement Program); 83758 (August 1,
2018), 83 FR 38757 (August 7, 2018) (SR-CboeBYX-2018-015) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Extend the Pilot Period for the RPI); 83756 (August 1, 2018), 83 FR
38748 (August 7, 2018) (Order Granting an Extension to Limited
Exemption From Rule 612(c) of Regulation NMS in Connection With the
Exchange's Retail Price Improvement Program); 84830 (December 17,
2018) 83 FR 65769 (December 21, 2018) (SR-CboeBYX-2018-025) (Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change to
Extend the Pilot Period for the RPI); 84845 (December 18, 2018), 83
FR 66329 (December 26, 2018) (Order Granting an Extension to Limited
Exemption From Rule 612(c) of Regulation NMS in Connection With the
Exchange's Retail Price Improvement Program). The Exchange filed to
make the pilot program permanent, but subsequently withdrew that
filing. See Securities Exchange Act Release No. 83831 (August 13,
2018), 83 FR 41128 (August 17, 2018) (SR-CboeBYX-2018-014); 85586
(April 10, 2019), 84 FR 15657 (April 16, 2019) (SR-CBOE-2018-014).
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The Exchange now seeks to extend the exemption until September 30,
2019.\4\ The Exchange's request was made in conjunction with an
immediately effective filing that extends the operation of the Program
until September 30, 2019.\5\ In its request to extend the exemption,
the Exchange notes that the Program was implemented gradually over
time. Accordingly, the Exchange has asked for additional time to allow
itself and the Commission to analyze data concerning the Program, which
the Exchange committed to provide to the
[[Page 31644]]
Commission, as well as to allow additional opportunities for greater
participation in the Program.\6\ For this reason and the reasons stated
in the Order originally granting the limited exemption, the Commission
finds that extending the exemption, pursuant to its authority under
Rule 612(c) of Regulation NMS, is appropriate in the public interest
and consistent with the protection of investors.
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\4\ See letter from Adrian Griffiths, Assistant General Counsel,
Cboe BYX, to Vanessa Countryman, Secretary, Commission, dated June
25, 2019.
\5\ See SR-CboeBYX-2019-010.
\6\ See RPI Approval Order, supra note 2, at 77 FR at 71657.
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Therefore, it is hereby ordered, that, pursuant to Rule 612(c) of
Regulation NMS, the Exchange is granted a limited exemption from Rule
612(c) of Regulation NMS that allows it to accept and rank orders
priced equal to or greater than $1.00 per share in increments of
$0.001, in connection with the operation of its RPI Program.
The limited and temporary exemption extended by this Order is
subject to modification or revocation if at any time the Commission
determines that such action is necessary or appropriate in furtherance
of the purposes of the Securities Exchange Act of 1934. Responsibility
for compliance with any applicable provisions of the federal securities
laws must rest with the persons relying on the exemptions that are the
subject of this Order.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(83).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-14059 Filed 7-1-19; 8:45 am]
BILLING CODE 8011-01-P