[Federal Register Volume 84, Number 207 (Friday, October 25, 2019)]
[Notices]
[Pages 57530-57534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23277]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87093; File No. SR-BX-2019-031]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the 
Exchange's Pricing Schedule, at Equity 7, Section 118(a)

September 24, 2019.
    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 September 12, 2019, Nasdaq BX, Inc. (``BX'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``SEC'' or 
``Commission'') the 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.
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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 proposes to amend the Exchange's transaction fees and 
credits at Equity 7, Section 118(a), as described further below. The 
text of the proposed rule change is available on the Exchange's website 
at http://nasdaqbx.cchwallstreet.com/, at the

[[Page 57531]]

principal office of the Exchange, 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 operates on the ``taker-maker'' model, whereby it 
generally pays credits to members that take liquidity and charges fees 
to members that provide liquidity. Currently, the Exchange has a 
schedule, at Equity 7, Section 118(a), which consists of several 
different credits that it provides for orders in securities priced at 
$1 or more per share that access liquidity on the Exchange and several 
different charges that it assesses for orders in such securities that 
add liquidity on the Exchange.
    Over the course of the last few months, the Exchange has 
experimented with various reformulations of its pricing schedule with 
the aim of increasing activity on the Exchange, improving market 
quality, and increasing market share.\3\ Although these changes have 
met with some success, the Exchange has yet to achieve the results it 
desires. Accordingly, the Exchange proposes to again restate its 
pricing schedule, in large part, in a further attempt to improve the 
attractiveness of the market to new and existing participants.
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    \3\ See Securities Exchange Act Release No. 34-86120 (June 17, 
2019); 84 FR 29270 (June 21, 2019) (SR-BX-2019-026) [sic]; 
Securities Exchange Act Release No. 34-85912 (May 22, 2019); 84 FR 
24834 (May 29, 2019) (SR-BX-2019-013).
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Description of the Changes
Credits for Accessing Liquidity Through the Exchange
    The Exchange proposes to eliminate its schedule of existing credits 
(except as described below) and replace it with a new schedule of 
credits for orders in securities that remove liquidity from the 
Exchange (the ``New Credits''). Generally speaking, the proposed New 
Credits will be higher than the existing credits for orders in Tapes A 
and B and lower than the existing credits for orders in securities in 
Tape C.\4\ The Exchange believes that higher overall credits will 
incentivize members to increase their liquidity removal activity in 
securities in Tapes A and B. Although credits for removal orders for 
securities in Tape C will be lower generally than they are now, the 
availability of the proposed New Credits will be tied to the level of a 
member's liquidity taking activity for orders in securities in Tape C; 
this proposal is aligned with the Exchange's objective to encourage an 
increase in liquidity in securities in Tape C (together with lower 
charges for adding liquidity in securities in Tape C, as discussed 
below).
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    \4\ Whereas the highest credit under the existing schedule is 
$0.0027 per share executed for orders in securities in Tapes A, B, 
and C, the top credit in the proposed schedule for orders in 
securities in Tapes A and B is $0.0031 per share executed. Under the 
proposal, the highest credit available for orders in Tape C will be 
$0.0017 per share executed.
    The Exchange notes that, whereas under the existing schedule, 
the Exchange provides a $0.0015 per share executed credit for orders 
in securities in all Tapes that access liquidity (excluding orders 
with Midpoint pegging and excluding orders that receive price 
improvement and execute against an order with a non-displayed price) 
entered by members that add at least an average daily volume of 
50,000 shares to the Exchange during a month, the proposed schedule 
will provide a higher credit of $0.0018 per share executed for 
orders in Tapes A and B and a lower credit of $0.005 per share 
executed for orders in Tape C.
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    Specifically, the Exchange proposes to adopt the following New 
Credits:
     A $0.0031 per share executed credit for orders in 
securities in Tapes A and B and a $0.0017 per share executed credit for 
orders in securities in Tape C that access liquidity (excluding orders 
with Midpoint pegging and excluding orders that receive price 
improvement and execute against an order with a Non-displayed price) 
entered by a member that: (i) Accesses liquidity equal to or exceeding 
0.225% of total Consolidated Volume during a month; (ii) accesses 
liquidity in Securities in Tape C equal to or exceeding 0.045% of total 
Consolidated Volume during a month; and (iii) adds liquidity equal to 
or exceeding an average daily volume of 50,000 shares in a month.
     A $0.0028 per share executed credit for orders in 
securities in Tapes A and B and a $0.0015 per share executed credit for 
orders in securities in Tape C that access liquidity (excluding orders 
with Midpoint pegging and excluding orders that receive price 
improvement and execute against an order with a Non-displayed price) 
entered by a member that: (i) Accesses liquidity equal to or exceeding 
0.11% of total Consolidated Volume during a month; (ii) accesses 
liquidity in Securities in Tape C equal to or exceeding 0.025% of total 
Consolidated Volume during a month; and (iii) adds liquidity equal to 
or exceeding an average daily volume of 50,000 shares in a month.
     A $0.0026 per share executed credit for orders in 
securities in Tapes A and B and a $0.0010 per share executed credit for 
orders in securities in Tape C that access liquidity (excluding orders 
with Midpoint pegging and excluding orders that receive price 
improvement and execute against an order with a Non-displayed price) 
entered by a member that: (i) Accesses liquidity equal to or exceeding 
0.08% of total Consolidated Volume during a month; (ii) accesses 
liquidity in Securities in Tape C equal to or exceeding 0.020% of total 
Consolidated Volume during a month; and (iii) adds liquidity equal to 
or exceeding an average daily volume of 50,000 shares in a month.
     A $0.0018 per share executed credit for orders in 
securities in Tapes A and B and a $0.0005 per share executed credit for 
orders in securities in Tape C that access liquidity (excluding orders 
with Midpoint pegging and excluding orders that receive price 
improvement and execute against an order with a Non-displayed price) 
entered by a member that adds liquidity equal to or exceeding an 
average daily volume of 50,000 shares in a month.
    As noted above, the proposed New Credits will not supplant all of 
the existing credits. Instead, the Exchange proposes that the following 
existing credits will continue to apply to orders in securities in all 
Tapes:
     $0.0000 per share executed for an order that receives 
price improvement and executes against an order with a Non-displayed 
price; and
     $0.0000 per share executed for an order with Midpoint 
pegging that removes liquidity.
    The Exchange also proposes to continue charging a fee for orders in 
securities in any Tape (excluding an order with midpoint pegging and 
excluding an order that receives price improvement and executes against 
an order with a non-displayed price) that removes liquidity from the 
Exchange and that is entered by a member that does not add at least an 
average daily volume of 50,000 shares to the Exchange during a month. 
However, the Exchange proposes to increase that fee, again for orders 
in securities in all Tapes, from $0.0003 to $0.0005 per share executed.

[[Page 57532]]

Charges for Adding Liquidity to the Exchange
    Primarily as a means of encouraging the addition of liquidity in 
securities in Tape C, the Exchange proposes to largely replace its 
existing schedule of charges with a new schedule of charges for 
displayed and non-displayed orders in securities that add liquidity to 
the Exchange (the ``New Charges''). Generally speaking, the range of 
the proposed New Charges will be the same as the existing charges for 
orders in Tapes A and B and lower for orders in Tape C (with new and 
different qualifying volume thresholds for each charge).\5\
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    \5\ Whereas under the existing pricing schedule, other than for 
midpoint pegging orders, the Exchange charges between $0.0025 and 
$0.0030 per share executed for orders in securities in all Tapes, 
the proposed schedule will charge fees ranging from $0.0025 to 
$0.0030 per share executed for orders in securities in Tapes A and B 
and $0.0012 to $0.0020 for orders in securities in Tape C.
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    Specifically, the Exchange proposes to delete all of the existing 
charges for providing liquidity through the Exchange (except as 
provided below) and replace them with the following New Charges:
     A $0.0025 per share executed charge for displayed orders 
in securities in Tapes A and B that: Add liquidity entered by a member 
that (i) adds liquidity equal to or exceeding 0.17% of total 
Consolidated Volume and (ii) adds liquidity equal to or exceeding 
0.025% of total Consolidated Volume in securities in Tape B during a 
month.
     A $0.0029 per share executed charge for displayed orders 
in securities in Tapes A and B that add liquidity entered by a member 
that (i) adds liquidity equal to or exceeding 0.08% of total 
Consolidated Volume and (ii) adds liquidity equal to or exceeding 
0.020% of total Consolidated Volume in securities in Tape B during a 
month.
     A $0.0012 per share executed charge for displayed orders 
in securities in Tape C that add liquidity entered by a member that (i) 
adds liquidity equal to or exceeding 0.17% of total Consolidated Volume 
and (ii) adds liquidity equal to or exceeding 0.15% of total 
Consolidated Volume in securities in Tape C during a month.
     A $0.0014 per share executed charge for displayed orders 
in securities in Tape C that add liquidity entered by a member that (i) 
adds liquidity equal to or exceeding 0.12% of total Consolidated Volume 
and (ii) adds liquidity equal to or exceeding 0.07% of total 
Consolidated Volume in securities in Tape C during a month.
     A $0.0017 per share executed charge for displayed orders 
in securities in Tape C that add liquidity entered by a member that (i) 
adds liquidity equal to or exceeding 0.08% of total Consolidated Volume 
and (ii) adds liquidity equal to or exceeding 0.025% of total 
Consolidated Volume in securities in Tape C during a month.
     A $0.0030 per share executed charge for buy (sell) orders 
with Midpoint pegging in securities in all Tapes that receive an 
execution price that is lower (higher) than the midpoint of the NBBO.
     A $0.0030 per share executed charge for all other orders 
in securities in Tapes A and B.
     A $0.0020 per share executed charge for all other orders 
in securities in Tape C.
    The Exchange proposes that following existing charges will continue 
to apply to orders in securities in all Tapes:
     A $0.0005 per share executed charge for orders with 
Midpoint pegging entered by a member that adds 0.02% of total 
Consolidated Volume of non-displayed liquidity excluding a buy (sell) 
order that receives an execution price that is lower (higher) than the 
midpoint of the NBBO.
     A $0.0015 per share executed charge for orders with 
Midpoint pegging entered by other member excluding a buy (sell) order 
that receives an execution price that is lower (higher) than the 
midpoint of the NBBO.
     A $0.0028 per share executed charge for non-displayed 
orders (other than orders with Midpoint pegging) entered by a member 
that adds liquidity equal to or exceeding 0.25% total Consolidated 
Volume during a month.
     A $0.0030 per share executed charge for all other non-
displayed orders.
     Charges for entering BSTG, BSCN, BMOP, BTFY, BCRT, BDRK, 
BCST, and SCAR orders that execute in a venue other than the Nasdaq BX 
Equities System.
Applicability to and Impact on Participants
    The proposed rule change is a broad restatement of the Exchange's 
schedule of credits and charges. The Exchange has designed the restated 
schedule to specifically increase liquidity removal activity on the 
Exchange for orders in securities in Tapes A and B, to increase 
liquidity adding activity in Tape C, and to thereby improve the overall 
quality and attractiveness of the Nasdaq BX market. The Exchange 
intends to accomplish this objective by providing overall higher 
credits to those participants that engage in large volumes of liquidity 
removal activity on the Exchange in securities in Tapes A and B and by 
charging lower overall fees to those participants that add liquidity to 
the Exchange in securities in Tape C.
    Those participants that act as net removers of liquidity from the 
Exchange in securities in Tapes A and B will benefit directly from the 
proposed rule change through the receipts of higher credits. Those 
participants that act as net adders of liquidity to the Exchange in 
securities in Tape C will also benefit from lower charges and 
indirectly from any improvement in the overall quality of the market. 
However, net liquidity adders in securities in Tapes A and B and net 
removers of liquidity in securities in Tape C will bear the costs of 
these proposals. The Exchange notes that its proposal is not otherwise 
targeted at or expected to be limited in its applicability to a 
specific segment(s) of market participants nor will it apply 
differently to different types of market participants.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\6\ in general, and furthers the objectives of Sections 
6(b)(4) and 6(b)(5) of the Act,\7\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees and other charges 
among members and issuers and other persons using any facility, and is 
not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers. The proposal is also consistent with 
Section 11A of the Act relating to the establishment of the national 
market system for securities.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4) and (5).
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The Proposal Is Reasonable
    The Exchange's proposed change to its schedule of credits and 
charges is reasonable in several respects. As a threshold matter, the 
Exchange is subject to significant competitive forces in the market for 
equity securities transaction services that constrain its pricing 
determinations in that market. The fact that this market is competitive 
has long been recognized by the courts. In NetCoalition v. Securities 
and Exchange Commission, the D.C. Circuit stated as follows: ``[n]o one 
disputes that competition for order flow is `fierce.' . . . As the SEC 
explained, `[i]n the U.S. national market system, buyers and sellers of 
securities, and the broker-dealers that act as their order-routing 
agents, have a wide range of choices of where to route orders for 
execution'; [and] `no exchange can afford to take its market share 
percentages for granted'

[[Page 57533]]

because `no exchange possesses a monopoly, regulatory or otherwise, in 
the execution of order flow from broker dealers' . . . .'' \8\
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    \8\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010) 
(quoting Securities Exchange Act Release No. 59039 (December 2, 
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
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    The Commission and the courts have repeatedly expressed their 
preference for competition over regulatory intervention in determining 
prices, products, and services in the securities markets. In Regulation 
NMS, while adopting a series of steps to improve the current market 
model, the Commission highlighted the importance of market forces in 
determining prices and SRO revenues and, also, recognized that current 
regulation of the market system ``has been remarkably successful in 
promoting market competition in its broader forms that are most 
important to investors and listed companies.'' \9\
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    \9\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70 
FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting 
Release'').
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    Numerous indicia demonstrate the competitive nature of this market. 
For example, clear substitutes to the Exchange exist in the market for 
equity security transaction services. The Exchange is only one of 
several equity venues to which market participants may direct their 
order flow, and it represents a small percentage of the overall market. 
It is also only one of several taker-maker exchanges. Competing equity 
exchanges offer similar tiered pricing structures to that of the 
Exchange, including schedules of rebates and fees that apply based upon 
members achieving certain volume thresholds.\10\
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    \10\ CBOE EDGA provides a standard rebate for liquidity removers 
of $0.0024 per share executed (or $0.0026 per share executed if a 
member qualifies for a volume tier), and a standard charge of 
$0.0030 per share executed for liquidity adders (or between $0.0022 
and $0.0026 if a member qualifies for a volume tier). NYSE National 
has a standard charge of $0.0005 per share executed for liquidity 
removers ($0.0025-$0.0030 rebate if a member qualifies for a volume 
tier) and a standard charge of $0.0028 per share executed for 
liquidity adders (and a range of charges from $0.0020-$0.0026 if a 
member qualifies for a volume tier).
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    Within this environment, market participants can freely and often 
do shift their order flow among the Exchange and competing venues in 
response to changes in their respective pricing schedules.\11\ 
Separately, the Exchange has provided the SEC staff with multiple 
examples of instances where pricing changes by BX and other exchanges 
have resulted in shifts in exchange market share. Within the foregoing 
context, the proposal represents a reasonable attempt by the Exchange 
to increase its liquidity and market share relative to its competitors.
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    \11\ The Exchange perceives no regulatory, structural, or cost 
impediments to market participants shifting order flow away from it. 
In particular, the Exchange notes that these examples of shifts in 
liquidity and market share, along with many others, have occurred 
within the context of market participants' existing duties of Best 
Execution and obligations under the Order Protection Rule under 
Regulation NMS.
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    The Exchange has designed its proposed schedule of credits and 
charges to provide increased overall incentives to members to increase 
their liquidity removal and adding activity on the Exchange in 
securities in the three Tapes. An increase in liquidity removal and 
adding activity on the Exchange will, in turn, improve the quality of 
the Nasdaq BX market and increase its attractiveness to existing and 
prospective participants. Generally, the proposed New Credits and 
Charges will be comparable to, if not favorable to, those that its 
competitors provide.\12\
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    \12\ See n. 10, supra.
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    The Exchange notes that those participants that are dissatisfied 
with the New Charges or New Credits are free to shift their order flow 
to competing venues that offer them lower charges.
The Proposal Is an Equitable Allocation of Credits and Charges
    The Exchange believes its proposal will allocate its New Credits 
and New Charges fairly among its market participants. It is equitable 
for the Exchange to increase its credits to participants whose orders 
remove liquidity from the Exchange as a means of incentivizing 
increased liquidity removal activity. Likewise, it is equitable for the 
Exchange to reduce charges to participants whose orders add liquidity 
to the Exchange as a means of incentivizing liquidity adding activity. 
An increase in overall liquidity removal and addition activity on the 
Exchange will improve the quality of the Nasdaq BX market and increase 
its attractiveness to existing and prospective participants.
    Likewise, it is equitable for the Exchange to specifically increase 
overall credits for orders that remove liquidity from the Exchange in 
Tapes A and B as a means of increasing liquidity removal activity in 
those Tapes, and to specifically lower overall charges for orders that 
add liquidity to the Exchange in Tape C as a means of increasing 
liquidity adding activity in Tape C. Again, the Exchange intends for 
these changes to improve the overall quality and attractiveness of the 
Nasdaq BX market.
    Although under the proposal, certain participants will pay higher 
charges or attain lower credits than they do now, those participants 
will also benefit from any improvements in the quality and 
attractiveness of the market that the New Credits and New Charges 
provide. Moreover, any participant that wishes to avoid paying higher 
charges or receiving lower credits is free to shift their order flow to 
competing venues that provide more favorable pricing.
The Proposed Fee Is Not Unfairly Discriminatory
    The Exchange believes that the proposal is not unfairly 
discriminatory. As an initial matter, the Exchange believes that 
nothing about its volume-based tiered pricing model is inherently 
unfair; instead, it is a rational pricing model that is well-
established and ubiquitous in today's economy among firms in various 
industries--from co-branded credit cards to grocery stores to cellular 
telephone data plans--that use it to reward the loyalty of their best 
customers that provide high levels of business activity and incent 
other customers to increase the extent of their business activity. It 
is also a pricing model that the Exchange and its competitors have long 
employed with the assent of the Commission. It is fair because it 
incentivizes customer activity that increases liquidity, enhances price 
discovery, and improves the overall quality of the equity markets.
    The Exchange intends for the proposal to improve market quality for 
all members on the Exchange and by extension attract more liquidity to 
the market, improving market wide quality and price discovery. Although 
net removers of liquidity in Tapes A and B and net adders of liquidity 
in Tape C will benefit most from the proposal, this result is fair 
insofar as increased activity in securities in these Tapes will help to 
improve market quality and the attractiveness of the Nasdaq BX market 
to all existing and prospective participants. And although certain 
participants will bear the costs of the proposed rule change through 
higher charges or lower credits, this too is fair because these 
participants will also benefit from improvements in market quality. 
Moreover, any participant that does not wish to pay higher charges or 
receive lower credits is free to shift its order flow to a competing 
venue.

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 not necessary or appropriate in 
furtherance of the purposes of the Act.

[[Page 57534]]

Intramarket Competition
    The Exchange does not believe that its proposal will place any 
category of Exchange participant at a competitive disadvantage. As 
noted above, all members of the Exchange will benefit from any increase 
in market activity that the proposal effectuates. Members may grow or 
modify their businesses so that they can receive the higher credits or 
pay lower charges. Moreover, members are free to trade on other venues 
to the extent they believe that the fees assessed and credits provided 
are not attractive. As one can observe by looking at any market share 
chart, price competition between exchanges is fierce, with liquidity 
and market share moving freely between exchanges in reaction to fee and 
credit changes. The Exchange notes that the tier structure is 
consistent with broker-dealer fee practices as well as the other 
industries, as described above.
Intermarket Competition
    Addressing whether the proposed fee could impose a burden on 
competition on other SROs that is not necessary or appropriate, the 
Exchange believes that its proposed modifications to its schedule of 
credits and charges will not impose a burden on competition because the 
Exchange's execution services are completely voluntary and subject to 
extensive competition both from the other 12 live exchanges and from 
off-exchange venues, which include 32 alternative trading systems. The 
Exchange notes that it operates in a highly competitive market in which 
market participants can readily favor competing venues if they deem fee 
levels at a particular venue to be excessive, or rebate opportunities 
available at other venues to be more favorable. In such an environment, 
the Exchange must continually adjust its fees to remain competitive 
with other exchanges and with alternative trading systems that have 
been exempted from compliance with the statutory standards applicable 
to exchanges. Because competitors are free to modify their own fees in 
response, and because market participants may readily adjust their 
order routing practices, the Exchange believes that the degree to which 
fee changes in this market may impose any burden on competition is 
extremely limited.
    The proposed restated schedule of credits and charges is reflective 
of this competition because, as a threshold issue, the Exchange is a 
relatively small market so its ability to burden intermarket 
competition is limited. In this regard, even the largest U.S. equities 
exchange by volume only has 17-18% market share, which in most markets 
could hardly be categorized as having enough market power to burden 
competition. Moreover, as noted above, price competition between 
exchanges is fierce, with liquidity and market share moving freely 
between exchanges in reaction to fee and credit changes. This is in 
addition to free flow of order flow to and among off-exchange venues 
which comprised more than 37% of industry volume for the month of July 
2019.
    The Exchange intends for the proposed changes, in the aggregate, to 
increase member incentives to engage in the removal and addition of 
liquidity on the Exchange. These changes are procompetitive and 
reflective of the Exchange's efforts to make it an attractive and 
vibrant venue to market participants.
    In sum, if the changes proposed herein are unattractive to market 
participants, it is likely that the Exchange will lose market share as 
a result. Accordingly, the Exchange does not believe that the proposed 
changes will impair the ability of members or competing order execution 
venues to maintain their competitive standing in the financial markets.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act.\13\
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    \13\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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 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-BX-2019-031 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-BX-2019-031. 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-BX-2019-031 and should be submitted on 
or before November 15, 2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-23277 Filed 10-24-19; 8:45 am]
 BILLING CODE 8011-01-P