[Federal Register Volume 85, Number 14 (Wednesday, January 22, 2020)]
[Notices]
[Pages 3732-3736]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00914]
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SECURITIES AND EXCHANGE COMMISSION
Release No. 34-87976; File No. SR-CboeEDGX-2020-001]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating To Amend Its Rules Governing the Give Up of a Clearing Member
by a User on Exchange Transactions
January 15, 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 January 2, 2020, Cboe EDGX Exchange, Inc. (the ``Exchange'' or
````EDGX'''') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Exchange filed the proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule
19b-4(f)(6) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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[[Page 3733]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX Options'')
proposes to amend its rules governing the give up of a Clearing Member
by a User on Exchange transactions. 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/options/regulation/rule_filings/edgx/), 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
The Exchange proposes to amend Rule 21.12, which governs the give
up of a Clearing Member \5\ by a User \6\ on Exchange transactions, to
substantially conform to existing Cboe Exchange, Inc. (``Cboe
Options'') Rule 5.10, proposed Cboe C2 Exchange, Inc. (``C2 Options'')
Rule 6.30, and proposed Cboe BZX Exchange, Inc. (``BZX Options'') Rule
21.12.\7\
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\5\ The term ``Clearing Member'' means an Options Member that is
self-clearing or an Options Member that clears EDGX Options
Transactions for other Members of EDGX Options. See Exchange Rule
16.1.
\6\ The term ``User'' means any Options Member or Sponsored
Participant who is authorized to obtain access to the System
pursuant to Rule 11.3 (Access). See Exchange Rule 16.1.
\7\ See SR-C2-2020-001 (filed January 2, 2020) and SR-CboeBZX-
2020-002 (filed January 2, 2020).
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Background
By way of background, Exchange Rule 21.12 provides that when a User
executes a transaction on the Exchange, it must give up the name of the
Clearing Member (the ``Give Up'') through which the transaction will be
cleared. Rule 21.12 also provides that a User may only give up a
``Designated Give Up'' \8\ or its ``Guarantor.'' \9\ This limitation is
enforced by the Exchange's trading systems.\10\
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\8\ See Exchange Rule 21.12(b)(1).
\9\ See Exchange Rule 21.12(b)(2).
\10\ See Exchange Rule 21.12(c).
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A ``Designated Give Up'' of a User refers to a Clearing Member
identified to the Exchange by that User as a Clearing Member the User
requests the ability to give up and that has been processed by the
Exchange as a Designated Give Up.\11\ To designate a ``Designated Give
Up'' every User (other than a Market-Maker) must submit written
notification, in a form and manner prescribed by the Exchange.\12\
Specifically, the Exchange uses a standardized form (``Notification
Form'') that a User needs to complete and submit to the Exchange's
Membership Services Department (``MSD'').\13\ The Exchange notes that a
User may currently designate any Clearing Member as a Designated Give
Up.\14\ Additionally, there is no minimum or maximum number of
Designated Give Ups that a User must identify. Paragraph (d) of Rule
21.12 also requires that the Exchange notify a Clearing Member, in
writing and as soon as practicable, of each User that has identified it
as a Designated Give Up. The Exchange however, will not accept any
instructions from a Clearing Member to prohibit a User from designating
the Clearing Member as a Designated Give Up. Additionally, there is no
subjective evaluation of a User's list of proposed Designated Give Ups
by the Exchange.
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\11\ Supra note 7.
\12\ See Exchange Rule 21.12(b)(3).
\13\ Id.
\14\ Id.
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For purposes of Rule 21.12, a ``Guarantor'' of an executing User
refers to a Clearing Member that has issued a Letter of Guarantee for
the executing User under the Rules of the Exchange that are in effect
at the time of the execution of the applicable trade.\15\ An executing
User may give up its Guarantor without having to first designate it to
the Exchange as a ``Designated Give Up.'' \16\ Additionally, the
Exchange notes that a Market-Maker is only enabled to give up the
Guarantor of the Market-Maker pursuant to Exchange Rule 22.8 and also
does not need to identify any Designated Give Ups.\17\
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\15\ Supra note 8.
\16\ The Exchange already knows each User's Guarantor and as
such, no further designation or identification is required of Users
to enable their respective Guarantors. See Exchange Rule
21.12(b)(6).
\17\ See Exchange Rule 21.12(b)(5).
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Beginning in early 2018, certain Clearing Members (in conjunction
with the Securities Industry and Financial Markets Association
(``SIFMA'')) expressed concerns related to the process by which
executing brokers on U.S. options exchanges (the ``Exchanges'') are
allowed to designate or `give up' a clearing firm for purposes of
clearing particular transactions. The SIFMA-affiliated Clearing Members
have recently identified the current give up process as a significant
source of risk for clearing firms. SIFMA-affiliated Clearing Members
subsequently requested that the Exchanges alleviate this risk by
amending Exchange rules governing the give up process.\18\
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\18\ Cboe Options recently modified its give up procedure under
rule 5.10 to allow clearing trading permit holders to ``Opt In''
such that the clearing trading permit holder (``TPH'') may specify
which Cboe Options TPH organizations are authorized to give up that
clearing trading permit holder. See Securities and Exchange Act
Release No. 86401 (July 17, 2019), 84 FR 35433 (July 23, 2019) (SR-
CBOE-19-036) (``Cboe Options Rule 5.10 Amendment''). Nasdaq PHLX LLC
(``PHLX''), NYSE Arca, Inc., (``NYSE Arca''), and NYSE American LLC
(``NYSE American'') also recently modified their respect give up
rules to adopt an ``Opt In'' process. See also Securities and
Exchange Act Release No. 85136 (February 14, 2019), 84 FR 5526
(February 21, 2019) (SR-PHLX-2018-72), Securities and Exchange Act
Release No. 85871 (May 16, 2019), 84 FR 23613 (May 22, 2019) (SR-
NYSEArca 2019-32) and Securities and Exchange Act Release 85875 (May
16, 2019), 84 FR 23591 (May 22, 2019) (SR-NYSEAMER-2019-17). The
Exchange's proposal leads to the same result of providing its
Clearing Member's the ability to control risk and includes PHLX's,
NYSE Arca's and NYSE American's ``Opt In'' process, but it otherwise
differs slightly in process from their give up rules. For example,
the Exchange intends to maintain its provisions relating to
Designated Give Ups and eliminate its provisions relating to the
rejection of a trade. The Exchange's proposal is substantially the
same as the existing give up process on Cboe Options.
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Proposed Rule Change
Based on the above, the Exchange now seeks to amend its rules
regarding the current give up process in order to allow a Clearing
Member to ``opt in'', at the Options Clearing Corporation (``OCC'')
clearing number level, to a feature that, if enabled by the Clearing
Member, will allow the Clearing Member to specify which Users are
authorized to give up that OCC clearing number. As proposed, Rule 21.12
will continue to require that Users identify to the Exchange, via the
Notification Form, all Clearing Members that the User would like to
have the ability to give up (i.e., Designated Give Ups).\19\ However,
the Exchange proposes to modify the language of paragraph (a) to
provide that a User may indicate, at the time of the trade or through
post trade allocation, any OCC number of the
[[Page 3734]]
Clearing Member through which the transaction will be cleared.\20\ The
Exchange proposes to also add to Rule 21.12(a) that Clearing Members
may elect to ``Opt In,'' as defined in paragraph (c) of the proposed
Rule and described further below, and restrict one or more of its OCC
number(s) (``Restricted OCC Number'').\21\ A User may Give Up a
Restricted OCC Number provided the User has written authorization as
described in paragraph (c)(2) (``Authorized User'').\22\ The Exchange
notes that if a User identifies a particular Clearing Member as a
Designated Give Up, but that Clearing Member has restricted its OCC
number(s) and has not authorized the User to give it up, then the
Exchange will not give effect to the designation on the Notification
Form (i.e., the User will not be able to give up that Clearing Member
even though it was identified as a Designated Give Up). Similarly, if a
Clearing Member authorizes a User to give up its Restricted OCC
Number(s), the Exchange will not enable that Clearing Member as a give
up for that User until and unless the User identifies that Clearing
Member as a Designated Give Up on a Notification Form. In light of
Clearing Members having the ability to restrict their OCC numbers from
being given up by unauthorized Users, the Exchange also proposes to
eliminate the process for Clearing Members to ``reject'' trades. As
such, the Exchange proposes to eliminate subparagraphs (e) and (f) of
Rule 21.12 and any other references to the process in Rule 21.12.\23\
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\19\ Id.
\20\ The Exchange notes that Cboe Options plans to amend
paragraph (a) of Rule 5.10 to conform to proposed paragraph (a) of
EDGX Options Rule 21.12 and C2 Options Rule 6.30 with a slight
modification as it relates to floor trading on Cboe Options.
\21\ See proposed Exchange Rule 21.12(a); see also Cboe Options
Rule 21.12(a).
\22\ Id.
\23\ The Exchange notes that Cboe Options similarly eliminated
the process for which Clearing Trading Permit Holders may ``reject''
trades in Rule 5.10. See the Cboe Options Rule 5.10 Amendment.
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Proposed Rule 21.12(c) provides that Clearing Members may request
the Exchange restrict one or more of their OCC clearing numbers (``Opt
In'') from being given up unless otherwise authorized.\24\ If a
Clearing Member Opts In, the Exchange will require written
authorization from the Clearing Member permitting a User to give up a
Clearing Member's Restricted OCC Number.\25\ An Opt In would remain in
effect until the Clearing Member terminates the Opt In as described in
proposed subparagraph (3).\26\ If a Clearing Member does not Opt In,
that Clearing Member's OCC number may be subject to being given up by
any User that has designated it as a Designated Give Up.\27\ Proposed
Rule 21.12(c)(1) will set forth the process by which a Clearing Member
may Opt In.\28\ Specifically, a Clearing Member may Opt In by sending a
completed ``Clearing Member Restriction Form'' listing all Restricted
OCC Numbers and Authorized Users.\29\ A copy of the proposed form is
included in Exhibit 3. A Clearing Member may elect to restrict one or
more OCC clearing numbers that are registered in its name at OCC.\30\
The Clearing Member would be required to submit the Clearing Member
Restriction Form to the Exchange's MSD as described on the form.\31\
Once submitted, the Exchange requires ninety days before a Restricted
OCC Number is effective within the System.\32\ This time period is to
provide adequate time for the Users of that Restricted OCC Number who
are not initially specified by the Clearing Member as Authorized Users
to obtain the required written authorization from the Clearing Member
for that Restricted OCC Number. Such Users would still be able to give
up that Restricted OCC Number during this ninety day period (i.e.,
until the number becomes restricted within the System).
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\24\ See proposed Exchange Rule 21.12(c); see also Cboe Options
Rule 5.10(c).
\25\ Id.
\26\ Id.
\27\ Id.
\28\ See proposed Exchange Rule 21.12(c)(1); see also Cboe
Options Rule 5.10(c)(1).
\29\ This form will be available on the Exchange's website. The
Exchange will also maintain, on its website, a list of the
Restricted OCC Numbers, which will be updated on a regular basis,
and the Clearing Member's contact information to assist Users (to
the extent they are not already Authorized Users) with requesting
authorization for a Restricted OCC Number. The Exchange may utilize
additional means to inform its Members of such updates on a periodic
basis.
\30\ Supra note 29.
\31\ Id.
\32\ Id.
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Proposed Rule 21.12(c)(2) will set forth the process for Users to
give up a Clearing Member's Restricted OCC Number.\33\ Specifically, a
User desiring to give up a Restricted OCC Number must become an
Authorized User.\34\ The Clearing Member will be required to authorize
a User as described in subparagraph (1) or (3) of Rule 21.12(c) (i.e.,
through a Clearing Member Restriction Form), unless the Restricted OCC
Number is already subject to a Letter of Guarantee that the User is a
party to, as set forth in Rule 21.12(b)(6).\35\ Pursuant to proposed
Rule 21.12(c)(3), a Clearing Member may amend the list of its
Authorized Users or Restricted OCC Numbers by submitting a new Clearing
Member Restriction Form to the Exchange's MSD indicating the amendment
as described on the form.\36\ Once a Restricted OCC Number is effective
within the System pursuant to Rule 21.12(c)(1), the Exchange may permit
the Clearing Member to authorize, or remove authorization for, a User
to give up the Restricted OCC Number intra-day only in unusual
circumstances, and on the next business day in all regular
circumstances.\37\ The Exchange will promptly notify Users if they are
no longer authorized to give up a Clearing Member's Restricted OCC
Number.\38\ If a Clearing Member removes a Restricted OCC Number, any
User may give up that OCC clearing number once the removal has become
effective on or before the next business day, provided that Clearing
Member has been designated as a Designated Give Up.\39\
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\33\ See proposed Exchange Rule 21.12(c)(2); see also Cboe
Option Rule 5.10(c)(2).
\34\ Id.
\35\ Id.
\36\ See proposed Exchange Rule 21.12(c)(3); see also Cboe
Options Rule 5.10(c)(3).
\37\ Id.
\38\ Id.
\39\ Id.
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The Exchange also proposes to amend current subparagraph (c)
(System) (to be relettered to paragraph (d)) of Rule 21.12 to clarify
that in addition to the Exchange's system not accepting orders that
identify a give up that is not at the time a Designated Give Up or a
Guarantor, the System will also reject any order that designates a
Restricted OCC Number for which the User is not an Authorized User.\40\
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\40\ See proposed Exchange Rule 21.12(d); see also Cboe Options
Rule 5.10(d).
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The Exchange proposes to amend current paragraph (d) (Notice to
Clearing Members) (to be relettered to paragraph (e)) of Rule 21.12 to
provide that the Exchange will provide notice to Users that they are
authorized or unauthorized by Clearing Members.\41\
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\41\ See proposed Exchange Rule 21.12(e); see also Cboe Options
Rule 5.10(e).
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The Exchange also proposes to amend current paragraph (g) (Other
Give Up Changes) (to be relettered to subparagraph (f)) of Rule 21.12
to provide that a User may change the give up on the trade to another
Designated Give Up, provided it's an Authorized User for any Restricted
OCC Number, or to its Grantor.\42\ Additionally, the Exchange seeks to
define a specific ``Trade Date Cutoff Time'' \43\ and ``T+1
[[Page 3735]]
Cutoff Time'' in the rule text of proposed paragraph (f).\44\
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\42\ See proposed Exchange Rule 21.12(f); see also Cboe Options
Rule 5.10(f).
\43\ The ``Trade Date Cutoff Time'' is established by the
Clearing Corporation (or 15 minutes thereafter if the Exchange
receives and is able to process a request to extend its time of
final trade submission to the Clearing Corporation). See proposed
Exchange Rule 21.12(f)(1); see also Cboe Options Rule 5.10(f)(1).
\44\ The ``T+1 Cutoff Time'' is 1:00 p.m. Eastern Time on T+1;
see proposed Exchange Rule 21.12(f)(3); see also Cboe Options Rule
5.10(f)(3) (which provides a cutoff time of 12:00 p.m. Central
Time).
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The Exchange proses to amend current paragraph (h) (Responsibility)
(to be relettered to paragraph (g)) of Rule 21.12 to eliminate any
applicable reference to current paragraph (e) or (f) of the Rule and to
conform with Cboe Options Rule 5.10(g).
The Exchange also proposes to adopt subparagraph (h) of Rule 21.12
to provide that an intentional misuse of this Rule is impermissible,
and may be treated as a violation of Rule 3.1, titled ``Business
Conduct of Members.'' \45\ This language will make clear that the
Exchange will regulate an intentional misuse of this Rule, and that
such behavior would be a violation of Exchange rules. The proposed
language is similar to corresponding provisions in other exchanges'
give up rules.\46\
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\45\ See Cboe Options Rule 5.10(h), which states that
intentional misuse of Rule 5.10 may be treated as a violation of
Rule 8.1 (Just and Equitable Principles of Trade).
\46\ See, e.g., Cboe Options Rule 5.10(h).
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Lastly, the Exchange proposes to amend its current Member
Notification of Designated Give Ups Form (``Designated Give Ups
Form''). As of October 7, 2019 the Exchange and each of its affiliated
options exchanges (i.e., C2 Options, BZX Options, and Cboe Options
(collectively, ``Cboe Markets'')) are on the same technology platform.
To provide further harmonization across the Cboe Markets and provide
more seamless administration of the Give up rule, the Exchange proposes
to eliminate the current Designated Give Ups Form and adopt a new form
which would be applicable to all Cboe Markets going forward. The
proposed Designated Give Ups Form is included in Exhibit 3.
Implementation Date
The Exchange proposes to announce the implementation date of the
proposed rule change in an Exchange Notice, to be published no later
than thirty (30) days following the operative date. The implementation
date will be no later than sixty (60) days following the operative
date.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\47\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \48\ requirements that the rules
of an exchange be 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 regulating,
clearing, settling, processing information with respect to, and
facilitation transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \49\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\47\ 15 U.S.C. 78f(b).
\48\ 15 U.S.C. 78f(b)(5).
\49\ Id.
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Particularly, as discussed above, several clearing firms affiliated
with SIFMA have recently expressed concerns relating to the current
give up process, which permits Users to identify any Clearing Member as
a Designated Give Up for purposes of clearing particular transactions,
and have identified the current give up process (i.e., a process that
lacks authorization) as a significant source of risk for clearing
firms. The Exchange believes that the proposed changes to Rule 21.12
help alleviate this risk by enabling Clearing Members to `Opt In' to
restrict one or more of its OCC clearing numbers (i.e., Restricted OCC
Numbers), and to specify which Authorized Users may give up those
Restricted OCC Numbers. As described above, all other Users would be
required to receive written authorization from the Clearing Member
before they can give up that Clearing Member's Restricted OCC Number.
The Exchange believes that this authorization provides proper
safeguards and protections for Clearing Members as it provides controls
for Clearing Members to restrict access to their OCC clearing numbers,
allowing access only to those Authorized Users upon their request. The
Exchange also believes that its proposed Clearing Member Restriction
Form allows the Exchange to receive in a uniform fashion, written and
transparent authorization from Clearing Members, which ensures seamless
administration of the Rule.
The Exchange believes that the proposed Opt In process strikes the
right balance between the various views and interests across the
industry. For example, although the proposed rule would require Users
(other than Authorized Users) to seek authorization from Clearing
Members in order to have the ability to give them up, each User will
still have the ability to give up a Restricted OCC Number that is
subject to a Letter of Guarantee without obtaining any further
authorization if that User is party to that arrangement. The Exchange
also notes that to the extent the executing User has a clearing
arrangement with a Clearing Member (i.e., through a Letter of
Guarantee), a trade can be assigned to the executing User's guarantor.
Accordingly, the Exchange believes that the proposed rule change is
reasonable and continues to provide certainty that a Clearing Member
would be responsible for a trade, which protects investors and the
public interest.
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. The Exchange does not believe
that the proposed rule change will impose an unnecessary burden on
intramarket competition because it would apply equally to all similarly
situated Members. The Exchange also notes that, should the proposed
changes make the Exchange more attractive for trading, market
participants trading on other exchanges can always elect to become
Members on the Exchange to take advantage of the trading opportunities.
Furthermore, the proposed rule change does not address any competitive
issues and ultimately, the target of the Exchange's proposal is to
reduce risk for Clearing Members under the current give up model.
Clearing firms make financial decisions based on risk and reward, and
while it is generally in their beneficial interest to clear
transactions for market participants in order to generate profit, it is
the Exchange's understanding from SIFMA and clearing firms that the
current process can create significant risk when the clearing firm can
be given up on any market participant's transaction, even where there
is no prior customer relationship or authorization for that designated
transaction. In the absence of a mechanism that governs a market
participant's use of a Clearing Member's services, the Exchange's
proposal may indirectly facilitate the ability of a Clearing Member to
manage their existing customer relationships while continuing to allow
market participant
[[Page 3736]]
choice in broker execution services. While Clearing Members may compete
with executing brokers for order flow, the Exchange does not believe
this proposal imposes an undue burden on competition. Rather, the
Exchange believes that the proposed rule change balances the need for
Clearing Members to manage risks and allows them to address outlier
behavior from executing brokers while still allowing freedom of choice
to select an executing broker.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received written comments on the
proposed rule change.
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 \50\ and Rule 19b-4(f)(6) \51\
thereunder.
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\50\ 15 U.S.C. 78s(b)(3)(A).
\51\ 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.
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of the filing. However,
Rule 19b-4(f)(6)(iii) \52\ permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. In its filing, the Exchange
requested that the Commission waive the 30-day operative delay. The
Exchange represented that the proposal establishes a rule regarding the
give up of a Clearing Member in order to help clearing firms manage
risk while continuing to allow market participants choice in broker
execution services. The Commission notes that it recently approved a
substantially similar proposed rule change from Phlx, after which other
options exchanges subsequently adopted subatantially similarly
rules.\53\ The Commission believes that waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest, because the Exchange's proposal raises no new issues.
Further, such waiver will permit the Exchange, without further delay,
to begin implementing the new standardized give up process, thus
aligning its give up process with that of the other option exchanges.
Accordingly, the Commission waives the 30-day operative delay and
designates the proposed rule change operative upon filing.\54\
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\52\ 17 CFR 240.19b-4(f)(6)(iii).
\53\ See Securities Exchange Act Release No. 85136 (February 14,
2019), 84 FR 5526 (February 21, 2019) (Phlx-2018-72) (order
approving a proposed rule change to establish rules governing give
ups). See also supra note 18 (citing the filings in which other
options exchanges adopted substantially similar rules).
\54\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 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-CboeEDGX-2020-001 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-CboeEDGX-2020-001. 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-CboeEDGX-2020-001 and should be
submitted on or before February 12, 2020.
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\55\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\55\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-00914 Filed 1-21-20; 8:45 am]
BILLING CODE 8011-01-P