[Federal Register Volume 89, Number 81 (Thursday, April 25, 2024)]
[Notices]
[Pages 31785-31786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08804]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99994; File No. 4-820]


Options Price Reporting Authority; Order Instituting Proceedings 
To Determine Whether To Approve or Disapprove a Proposed Amendment To 
Modify Section 5.2(c)(iii) of the OPRA Plan Relating to Dissemination 
of Exchange Proprietary Data Information

April 19, 2024.

I. Introduction

    On November 8, 2023, the Cboe BZX Exchange, Inc. (``BZX Options''), 
Cboe Exchange, Inc. (``Cboe Options''), Cboe C2 Exchange, Inc. (``C2 
Options''), and Cboe EDGX Exchange, Inc. (``EDGX Options'') 
(collectively, the ``Sponsors'' or ``Cboe'') filed with the Securities 
and Exchange Commission (``Commission'') a proposed amendment to the 
Plan for Reporting of Consolidated Options Last Sale Reports and 
Quotation Information (``OPRA Plan''). The proposed amendment was 
published for comment in the Federal Register on January 22, 2024.\1\
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    \1\ See Options Price Reporting Authority; Notice of Filing of 
Proposed Amendment to Modify Section 5.2(c)(iii) of the OPRA Plan 
Relating to Dissemination of Exchange Proprietary Data Information, 
Securities Exchange Act Release No. 99345 (Jan. 16, 2024), 89 FR 
3963 (Jan. 22, 2024) (``Notice''). Comments received in response to 
the Notice can be found on the Commission's website at https://www.sec.gov/comments/4-820/4-820.htm.
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    This order institutes proceedings, under Rule 608(b)(2)(i) of 
Regulation NMS,\2\ to determine whether to approve or disapprove the 
proposed amendment or to approve the proposed amendment with any 
changes or subject to any conditions the Commission deems necessary or 
appropriate after considering public comment.
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    \2\ 17 CFR 242.608(b)(2)(i).
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II. Proceedings To Determine Whether To Approve or Disapprove the 
Proposed Amendment

    The Commission is instituting proceedings pursuant to Rule 
608(b)(2)(i) of Regulation NMS,\3\ and Rules 700 and 701 of the 
Commission's Rules of Practice,\4\ to determine whether to approve or 
disapprove the proposed amendment or to approve the proposed amendment 
with any changes or subject to any conditions the Commission deems 
necessary or appropriate. The Commission is instituting proceedings to 
have sufficient time to consider the issues raised by proposed 
amendment, including comments received.

[[Page 31786]]

Institution of proceedings does not indicate that the Commission has 
reached any conclusions with respect to any of the issues involved. 
Rather, the Commission seeks and encourages interested persons to 
provide additional comment on the proposed amendment to inform the 
Commission's analysis.
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    \3\ Id.
    \4\ 17 CFR 201.700; 17 CFR 201.701.
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    Rule 608(b)(2) of Regulation NMS provides that the Commission 
``shall approve a national market system plan . . ., with such changes 
or subject to such conditions as the Commission may deem necessary or 
appropriate, if it finds that such plan . . . is necessary or 
appropriate in the public interest, for the protection of investors and 
the maintenance of fair and orderly markets, to remove impediments to, 
and perfect the mechanisms of, a national market system, or otherwise 
in furtherance of the purposes of the Act.'' \5\ Rule 608(b)(2) further 
provides that the Commission shall disapprove a national market system 
plan or proposed amendment if it does not make such a finding.\6\ In 
this order, pursuant to Rule 608(b)(2)(i) of Regulation NMS,\7\ the 
Commission is providing notice of the grounds for disapproval under 
consideration:
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    \5\ 17 CFR 242.608(b)(2) (referring to the Securities Exchange 
Act of 1934, 15 U.S.C. 78a et seq., (``Act'' or ``Exchange Act'')).
    \6\ See id.
    \7\ See 17 CFR 242.608(b)(2)(i).
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     Whether, consistent with Rule 608 of Regulation NMS, the 
Sponsors have demonstrated that the proposed amendment is necessary or 
appropriate in the public interest, for the protection of investors and 
the maintenance of fair and orderly markets, to remove impediments to, 
and perfect the mechanisms of, a national market system, or otherwise 
in furtherance of the purposes of the Exchange Act.\8\
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    \8\ See 17 CFR 242.608(b)(2).
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    Under the Commission's Rules of Practice, the ``burden to 
demonstrate that a NMS plan filing is consistent with the Exchange Act 
and the rules and regulations issued thereunder. . . is on the plan 
participants that filed the NMS plan filing.'' \9\ The description of 
the NMS plan filing, its purpose and operation, its effect, and a legal 
analysis of its consistency with applicable requirements must all be 
sufficiently detailed and specific to support an affirmative Commission 
finding.\10\ Any failure by the Sponsors to provide such detail and 
specificity may result in the Commission not having a sufficient basis 
to make an affirmative finding that the NMS plan filing is consistent 
with the Exchange Act and the applicable rules and regulations 
thereunder.\11\
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    \9\ 17 CFR 201.701(b)(3)(ii).
    \10\ See id.
    \11\ See id.
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III. Commission's Solicitation of Comments

    The Commission requests that interested persons provide written 
submissions of their views, data, and arguments with respect to the 
issues identified above, as well as any other concerns they may have 
with the proposed amendment. In particular, the Commission asks that 
commenters address the sufficiency and merit of the Sponsors' 
statements in support of the proposed amendment, in addition to any 
other comments they may wish to submit about the proposed amendment.
    Although there do not appear to be any issues relevant to approval 
or disapproval that would be facilitated by an oral presentation of 
views, data, and arguments, the Commission will consider, pursuant to 
Rule 608(b)(2)(i) of Regulation NMS,\12\ any request for an opportunity 
to make an oral presentation.\13\
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    \12\ 17 CFR 242.608(b)(2)(i).
    \13\ Rule 700(c)(ii) of the Commission's Rules of Practice 
provides that ``[t]he Commission, in its sole discretion, may 
determine whether any issues relevant to approval or disapproval 
would be facilitated by the opportunity for an oral presentation of 
views.'' 17 CFR 201.700(c)(ii).
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    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 4-820 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 4-820. 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 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 a.m. and 3 p.m. 
Copies of the filing also will be available for inspection and copying 
at the Sponsors' principal offices. Do not include personal 
identifiable information in submissions; you should submit only 
information that you wish to make available publicly. We may redact in 
part or withhold entirely from publication submitted material that is 
obscene or subject to copyright protection. All submissions should 
refer to file number 4-820 and should be submitted on or before May 16, 
2024. Rebuttal comments should be submitted by May 30, 2024.
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    \14\ 17 CFR 200.30-3(a)(85).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-08804 Filed 4-24-24; 8:45 am]
BILLING CODE 8011-01-P