Federal Register, Volume 89 Issue 186 (Wednesday, September 25, 2024)

[Federal Register Volume 89, Number 186 (Wednesday, September 25, 2024)]
[Notices]
[Pages 78418-78425]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21876]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-101105; File No. SR-CboeBYX-2024-009]

Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of
Filing of Amendment No. 1 and Order Instituting Proceedings To
Determine Whether To Approve or Disapprove of a Proposed Rule Change,
as Modified by Amendment No. 1, To Amend Exchange Rule 11.25(e) To
Allow Users To Utilize the Exchange's Match Trade Prevention
Functionality When Entering Periodic Auction Orders Onto the Exchange
for Execution

September 19, 2024.
On June 6, 2024, Cboe BYX Exchange, Inc. (``Exchange'' or ``BYX'')
filed with the Securities and Exchange Commission (the ``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
amend Exchange Rule 11.25(e) (``Priority and Execution of Orders'') to
allow Users to utilize the Exchange's Match Trade Prevention
functionality when entering Periodic Auction Orders onto the Exchange
for execution. The proposed rule change was published for comment in
the Federal Register on June 21, 2024.\3\ On August 5, 2024, the
Commission extended the time period within which to approve, disapprove
the proposed rule change, or institute proceedings to determine whether
to approve or disapprove the proposed

[[Page 78419]]

rule change to September 19, 2024.\4\ On September 18, 2024, the
Exchange filed Amendment No. 1 to the proposed rule change.\5\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 100337 (June 14,
2024), 89 FR 52148 (``Notice'').
\4\ See Securities Exchange Act Release No. 100649 (August 9,
2024), 89 FR 65420. The Commission has received no comment letters
on the proposed rule change.
\5\ Amendment No. 1 modifies the proposed rule change by: (1)
amending rule text relating to Exchange Match Trade Prevention
functionality when entering Periodic Auction Orders onto the
Exchange for execution; and (2) adding new rule text describing how
the Exchange will handle Periodic Auction Orders entered as a
Minimum Quantity Order with a Match Trade Prevention modifier.
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The Commission is publishing this notice and to solicit comments on
the proposed rule change, as modified by Amendment No. 1, from
interested persons and to institute proceedings pursuant to Section
19(b)(2)(B) of the Act \6\ to determine whether to approve or
disapprove the proposed rule change, as modified by Amendment No. 1.
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\6\ 15 U.S.C. 78s(b)(2)(B).
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I. Exchange's Description of the Proposal, as Modified by Amendment No.
1

Cboe BYX Exchange, Inc. (the ``Exchange'' or ``BYX'') proposes to
amend Exchange Rule 11.25(e) (``Priority and Execution of Orders'') to
allow (1) Users to utilize the Exchange's Match Trade Prevention
(``MTP'') functionality when entering Periodic Auction Orders onto the
Exchange for execution and (2) add new rule text providing that in the
event a Periodic Auction Order is entered as a Minimum Quantity Order,
as well as with an MTP modifier (e.g., Order 1), and such Periodic
Auction Order could either trade with a contra-side Continuous Book
Order or initiate a Periodic Auction with a contra-side Periodic
Auction Order (e.g., Order 2), designated with an MTP modifier from the
same Unique Identifier as Order 1, the System will apply MTP regardless
of whether the Minimum Quantity is satisfied. This Amendment No. 1
replaces SR-CboeBYX-2024-009 (``Initial Filing'') \7\ as originally
filed and supersedes the Initial Filing its entirety. The text of the
proposed rule changes is provided in Exhibit 5.
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\7\ See Securities Exchange Act Release No. 100337 (June 14,
2024), 89 FR 52148 (June 21, 2024) (SR-CboeBYX-2024-009).
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The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/byx/), 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 (1) amend Rule 11.25(e) to allow Users \8\
to utilize the Exchange's Match Trade Prevention (``MTP'')
functionality when entering Periodic Auction Orders \9\ onto the
Exchange for execution,\10\ and (2) add new rule text providing that in
the event a Periodic Auction Order is entered as a Minimum Quantity
Order, as well as with an MTP modifier (e.g., Order 1), and such
Periodic Auction Order could either trade with a contra-side Continuous
Book Order or initiate a Periodic Auction with a contra-side Periodic
Auction Order (e.g., Order 2), designated with an MTP modifier from the
same Unique Identifier as Order 1, the System will apply MTP regardless
of whether the Minimum Quantity is satisfied.
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\8\ The term ``User'' shall mean any Member or Sponsored
Participant who is authorized to obtain access to the System
pursuant to Rule 11.3. See Rule 1.5(cc), definition of ``User''.
\9\ The term ``Periodic Auction Order'' shall mean a ``Periodic
Auction Only Order'' or ``Periodic Auction Eligible Order'' as those
terms are defined in Rules 11.25(b)(1)-(2), and the term ``Periodic
Auction Book'' shall mean the System's electronic file of such
Periodic Auction Orders. See Rule 11.25(a)(6). Hereinafter, a
Periodic Auction Only Order may be referred to as a ``PAO Order'',
and a Periodic Auction Eligible Order may be referred to as a, ``PAE
Order''.
\10\ The Exchange plans to implement the proposed rule change on
a date that will be circulated in a notice from the Cboe Trade Desk
to all Members.
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By way of background, MTP is an existing process \11\ through which
Users can prevent their incoming orders designated with a MTP modifier
from executing against a resting opposite side order also designated
with an MTP modifier and originating from the same market participant
identifier (``MPID''), Exchange Member identifier, trading group
identifier, Exchange Sponsored Participant identifier, affiliate
identifier, or Multiple Access identifier (any such identifier, a
``Unique Identifier'').\12\ Both the buy and the sell order must
include the same Unique Identifier in order to prevent an execution
from occurring and to effect a cancel instruction. MTP is a valuable
tool for Exchange Users because it allows them to better manage order
flow and prevent undesirable trading activity such as wash sales \13\
or self-trades \14\ that may occur because of the high-speed nature of
trading in today's marketplace.
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\11\ The Exchange notes that previous proposals extending the
functionality of MTP to other trading scenarios were effective upon
filing with the Commission. See generally Securities and Exchange
Act Release No. 53429 (December 3, 2010), 75 FR 76763 (December 9,
2010) (SR-EDGX-2010-18); Securities and Exchange Act Release No. 34-
96292 (November 10, 20220), 87 FR 68766 (November 16, 2022) (SR-
CboeEDGX-2022-048).
\12\ See Rule 11.9(f)--Match Trade Prevention (``MTP'')
Modifiers.
\13\ A ``wash sale'' is generally defined as a trade involving
no change in beneficial ownership that is intended to produce the
false appearance of trading and is strictly prohibited under both
the federal securities laws and FINRA rules. See, e.g., 15 U.S.C.
78i(a)(1); FINRA Rule 6140(b) (``Other Trading Practices'').
\14\ Self-trades are ``transactions in a security resulting from
the unintentional interaction of orders originating from the same
firm that involve no change in beneficial ownership of the
security.'' FINRA requires members to have policies and procedures
in place that are reasonably designed to review trading activity
for, and prevent, a pattern or practice of self-trades resulting
from orders originating from a single algorithm or trading desk, or
related algorithms or trading desks. See FINRA Rule 5210,
Supplementary Material .02, available at: https://www.finra.org/rules-guidance/rulebooks/finra-rules/5210.
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Currently, Rule 11.25(e) states that all MTP modifiers (as defined
in Rule 11.9(f)(1)-(5)) for Periodic Auction Orders will be ignored for
executions occurring during a Periodic Auction. As part of the
Exchange's prior Periodic Auction Rule filings,\15\ the Exchange
reasoned that MTP is mainly designed for use on the Continuous
Book,\16\ and use of MTP for Periodic Eligible Orders \17\ and Periodic
Auction Only

[[Page 78420]]

Orders \18\ (collectively, Periodic Auction Orders) may complicate the
execution of an auction that requires the pooling and matching of
multiple orders against other orders at the Periodic Auction Book
Price.\19\ Based on User feedback, however, Users of Periodic Auctions
desire the ability to utilize MTP for their Periodic Auction Orders
(when the Periodic Auction is not in progress) to help them manage
their order flow and prevent undesirable executions against themselves.
Users are not asking to utilize MTP for their Periodic Auction Orders
when a Periodic Auction is occurring.
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\15\ See Securities and Exchange Act Release No. 34-91423 (March
26, 2021), 86 FR 17230 (April 1, 2021) (SR-CboeBYX-2020-021).
\16\ The term ``Continuous Book'' shall mean an order on the BYX
Book that is not a Periodic Auction Order, and the term ``Continuous
Book'' shall mean the System's electronic file of such Continuous
Book Orders. See Rule 11.25(a)(2), definition of ``Continuous Book
Order''.
\17\ ``A `Periodic Auction Eligible Order' is a non-displayed
limit order eligible to trade on the Continuous Book that is entered
with an instruction to also initiate a Periodic Auction, if possible
. . . Periodic Auction Eligible Orders will be ranked as Non-
Displayed Limit Orders consistent with the priority of order
outlined in Rule 11.12(a). An incoming Periodic Auction Eligible
Order that is eligible both to trade on the Continuous Book and
initiate a Periodic Auction against a Periodic Auction Only Order at
the same price will trade immediately with the Continuous Book.
Incoming Periodic Auction Eligible Orders will upon entry interact
with Continuous Book Orders and other Periodic Auction Eligible
Orders according to their rank under Rule 11.12(a). Periodic Auction
Eligible Orders will not trade on the Continuous Book during a
Periodic Auction Period in the security.'' See 11.25(b)(2).
\18\ ``A `Periodic Auction Only Order' is a non-displayed limit
order entered with an instruction to participate solely in Periodic
Auctions pursuant to this Rule 11.25. Periodic Auction Only Orders
are not eligible for executions on the Continuous Book.'' See Rule
11.25(b)(1). Hereinafter, Periodic Auction Only Orders as, ``PAO
Orders.''
\19\ ``The term `Periodic Auction Book Price' shall mean the
price within the Collar Price Range at which the most shares from
the Periodic Auction Book would match. In the event of a volume-
based tied at multiple price-levels, the Periodic Auction Book Price
will be the price that results in the minimum total imbalance. In
the event of a volume-based tie and a tie in minimum total imbalance
at multiple price levels, the Periodic Auction Book Price will be
the price closest to the Volume Based Tie Breaker. The Periodic
Auction Book Price will be expressed in the minimum increment for
the security unless the midpoint of the NBBO establishes the
Periodic Auction Book Price.'' See 11.25(a)(5), definition of
``Periodic Auction Book Price''.
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Accordingly, the Exchange now seeks to allow Users to utilize MTP
when entering Periodic Auction Orders onto the Exchange.\20\
Importantly, allowing Users to designate Periodic Auction Orders with
MTP modifiers will not impact how the Periodic Auction itself is
conducted, and the proposed MTP functionality will not prevent the
completion of a Periodic Auction once it has been initiated.
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\20\ The Exchange notes that previous proposals extending the
functionality of MTP to other trading scenarios were effective upon
filing with the Commission. See Securities and Exchange Act Release
No. 53429 (December 3, 2010), 75 FR 76763 (December 9, 2010) (SR-
EDGX-2010-18); see also Securities and Exchange Act Release No. 34-
96292 (November 10, 20220), 87 FR 68766 (November 16, 2022) (SR-
CboeEDGX-2022-048).
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As proposed, however, there will be instances where the Exchange
has elected to temporarily bypass a User's MTP instruction. These
instances are demonstrated in Examples 5 and 8, below, and generally
involve scenarios where (i) a Periodic Auction is in progress, and the
temporary bypassing of the MTP modifier on Firm A's inbound Continuous
Book Order is necessary to prevent the cancelation of Firm A's Periodic
Auction Order with an MTP modifier that is currently participating in
the Periodic Auction, or (ii) a Periodic Auction is in progress, and
the bypassing of Firm A's MTP modifier on its inbound Periodic Auction
Order is necessary to prevent--depending on the relevant MTP
instruction--the cancelation of Firm A's resting Continuous Book Order,
or the cancelation of the inbound Periodic Auction Order itself,
preventing such order from participating in the Periodic Auction.
In each instance, the temporary bypassing of the inbound order's
MTP modifier is intended to prevent the cancelation of orders where an
immediate execution would not occur. Importantly, the bypassing of an
inbound order's MTP modifier is temporary and occurs only upon entry of
the inbound order. The Exchange believes this behavior is necessary and
appropriate to help strike a responsible balance between providing
Users with an optional risk tool to prevent undesirable executions and
ensuring that Periodic Auctions will complete. Moreover, the current
architecture and design of Exchange Systems require that MTP for
Periodic Auctions function as described.
Additionally, the Exchange proposes to add new rule text providing
that in the event a Periodic Auction Order is entered as a Minimum
Quantity Order, as well as with an MTP modifier (e.g., Order 1), and
such Periodic Auction Order could either trade with a contra-side
Continuous Book Order or initiate a Periodic Auction with a contra-side
Periodic Auction Order (e.g., Order 2), designated with an MTP modifier
from the same Unique Identifier as Order 1, the System will apply MTP
regardless of whether the Minimum Quantity is satisfied.
To illustrate how Periodic Auction Orders designated with MTP
modifiers will behave, the Exchange offers the following examples: \21\
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\21\ For each example, assume that all trade prices are within
the National Best Bid or National Best Offer (``NBBO'').
Additionally, note that while Exchange Rule 11.9(f) provides for
various MTP modifiers--including Cancel Newest, Cancel Oldest,
Decrement and Cancel, Cancel Both, and Cancel Smallest--the Examples
provided in this rule filing only demonstrate how certain of these
modifiers will operate. Including examples for every possible MTP
scenario would be difficult to efficiently demonstrate in a rule
filing. Nevertheless, the MTP modifier exemplified in the provided
Examples is not critical to understanding how the proposed
functionality will operate because as demonstrated below, when a
Periodic Auction is not in progress MTP will operate as it does
today, and when a Periodic Auction is in progress, the System will,
as described below, temporarily bypass an order's MTP instruction.
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Example 1: Two PAE Orders Matching--MTP Action Occurs
Example 1 illustrates how MTP will operate when Firm A's resting
PAE Order with an MTP modifier of MTP Cancel Oldest (``MCO''),\22\
interacts with a subsequent inbound PAE Order submitted by Firm A with
an MTP modifier of MCO and a Periodic Auction is not in progress. Here,
MTP operates in the same manner \23\ as it would for Continuous Book
Orders; i.e., because Firm A's inbound PAE Order was entered with an
MTP modifier of MCO, the System will cancel Firm A's Order 1,\24\ which
is the ``oldest'' contra-side Firm A order that is marketable versus
Firm A's inbound PAE Order to sell. This MTP action prevents Firm A
from potentially trading with itself either on the Continuous Book or
during a Periodic Auction.\25\
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\22\ MTP Cancel Oldest (``MCO'') is defined as ``[a]n incoming
order marked with the ``MCO'' modifier will not execute against
opposite side resting interest marked with any MTP modifier
originating from the same Unique Identifier. The resting order
marked with the MCO modifier will be cancelled back to the
originating User(s). The incoming order marked with the MCO modifier
will remain on the BYX Book. See Rule 11.9(f)(2).
\23\ See Rule 11.9(f)--Match Trade Prevention (``MTP'')
Modifiers. Any incoming order designated with an MTP modifier will
be prevented from executing against a resting opposite side order
also designated with an MTP modifier and originating from the same
market participant identifier (``MPID''), Exchange Member
identifiers, trading group identifier, Exchange Sponsored
Participant identifier, affiliate identifier, or Multiple Access
identifier (any such identifier, a ``Unique Identifier''). The order
canceled by the System will depend on the incoming order's MTP
modifier, as described in 11.9(f)(1)-(5).
\24\ See Rule 11.9(f)(2).
\25\ As MTP action is controlled by the incoming order (``. . .
the MTP modifier on the incoming order controls the interaction
between two orders marked with MTP modifiers.'' See Rule 11.21(g)),
Firm A's Order 1 was correctly cancelled in this situation. Note,
however, that if Firm A's Order 2 had included an MTP modifier of
MTP Cancel Newest (``MCN''), the result would simply be that Order 2
is instead canceled. MTP Cancel Newest (``MCN'') is defined as
``[a]n incoming order marked with the ``MCN'' modifier will not
execute against opposite side resting interest marked with any MTP
modifier originating from the same Unique Identifier. The incoming
order marked with the MCN modifier will be cancelled back to the
originating User(s). The resting order marked with an MTP modifier
will remain on the BYX Book.'' See Rule 11.9(f)(1). Similarly, if we
changed Order 1's MTP Modifier to Cancel Newest and Order 2 remained
as MTP Cancel Oldest, Order 1 would be canceled as Order 2's
instruction controls MTP action.

Order 1--Resting (Firm A): PAE Order (MTP = Cancel Oldest),
Buy 100 @1.00
Order 2--Inbound order (Firm A): PAE Order (MTP = Cancel
Oldest), Sell 200 @1.00
Result: Order 1 is canceled.

[[Page 78421]]

Example 2: Two PAO Orders Matching--MTP Action Occurs
Example 2 illustrates how MTP will operate when Firm A's resting
PAO Order with an MTP Modifier of MCN, interacts with Firm A's inbound
PAO Order with an MCN modifier, and a Periodic Auction is not in
progress. Here, MTP operates in the same manner \26\ as it would for
Continuous Book Orders; i.e., because Firm A has designated its inbound
Order 2 with MCN, the System will cancel Firm A's Order 2,\27\ which is
Firm's A's newest contra-side order that is marketable versus Firm A's
resting Order 1. This MTP action prevents Firm A from potentially
trading with itself during a Periodic Auction.
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\26\ Supra note 19.
\27\ See Rule 11.9(f)(1).

Order 1--Resting (Firm A): PAO Order (MTP = Cancel Newest),
Buy 100 @1.00
Order 2--Inbound order (Firm A): PAO Order (MTP = Cancel
Newest), Sell 200 @1.00
Result: Order 2 is canceled

For the sake of clarity, the Exchange also wishes to explain what
would happen to Order 2 if a Periodic Auction was in progress when
Order 2 arrived.\28\ To address this scenario, assume an inbound
Periodic Auction Order from Firm B--Order X--arrived between Order 1
and Order 2, and initiated a Periodic Auction with Order 1. Here, when
Order 2 arrives, and the Periodic Auction is in progress, Order 2 would
still be canceled. When a Periodic Auction is in progress, and an
inbound Periodic Auction Order is designated with an MTP modifier, and
such order matches against a resting contra-side Periodic Auction Order
originating from the same Unique Identifier that is also designated
with a MTP modifier, the inbound Periodic Auction Order will be
canceled. This behavior will enable Users to better manage their order
flow and prevent undesirable executions in Periodic Auctions, just as
they do today for their Continuous Book orders.
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\28\ This iteration of Example 2 demonstrates the functionality
described in proposed Rule 11.25(e)(1)(B).
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Example 3: Incoming PAE Order Matching Against a PAO Order--MTP Action
Occurs
Example 3 illustrates how MTP will operate when Firm A's resting
PAO Order with a MTP modifier of MTP Cancel Smallest (``MCS''),\29\
interacts with Firm A's inbound PAE Order with an MCS modifier, and an
auction is not in progress. Here, MTP operates in the same manner \30\
as it would for Continuous Book Orders; i.e., because Firm A has
designated its orders with the MTP modifier, MCS, the System will
cancel Firm A's Order 1, which is Firm A's small quantity order.\31\
This MTP action prevents Firm A from potentially trading with itself
during a Periodic Auction.
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\29\ MTP Cancel Smallest (``MCS'') is defined as ``[a]n incoming
order marked with the ``MCS'' modifier will not execute against
opposite side resting interest marked with any MTP modifier
originating from the same Unique Identifier. If both orders are
equivalent in size, both orders will be cancelled back to the
originating User(s). If the orders are not equivalent in size, the
smaller of the two orders will be cancelled back to the originating
User and the larger order will remain on the book. See Rule
11.9(f)(5).
\30\ Supra note 19.
\31\ See Rule 11.9(f)(5).

Order 1--Resting (Firm A): PAO Order (MTP = Cancel Smallest),
Buy 100 @1.00
Order 2--Inbound order (Firm A): PAE Order (MTP = Cancel
Smallest), Sell 200 @1.00
Result: Order 1 is canceled.
Example 4: Incoming PAE Order Matching Against a Continuous Book
Order--MTP Action Occurs
Example 4 illustrates how MTP will operate when Firm A's incoming
PAE Order with a MCS modifier, matches against Firm A's resting
Continuous Book Order, and a Periodic Auction is not in progress. Here,
MTP operates in the same manner \32\ as it would for Continuous Book
Orders; i.e., Firm's A's Order 1 is canceled \33\ based on Firm A's
Order 2 MCS modifier because Order 1 is smaller than Order 2. Because a
PAE Order is eligible to receive an execution on the Continuous
Book,\34\ and both Order 1 and Order 2 are designated with MTP
modifiers, the System correctly cancels Order 1, thereby preventing
Firm A from potentially trading with itself on the Continuous Book.
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\32\ Supra note 19.
\33\ Supra note 31.
\34\ Supra note 14.

Order 1--Resting (Firm A): Continuous Book order (MTP = Cancel
Smallest), Buy 100 @1.00
Order 2--Inbound order (Firm A): PAE Order (MTP = Cancel
Smallest), Sell 200 @1.00
Result: Order 1 is canceled.
Example 5: Incoming PAE Order Matching Against a Continuous Book Order
When a Periodic Auction Is in Progress--No MTP Action Occurs
For the sake of clarity, the Exchange wishes to describe what would
happen to Order 1 if a Periodic Auction is in progress and an inbound
Periodic Auction Order arrives (e.g., Order 4).\35\ First, note that a
Continuous Book Order cannot initiate a Periodic Auction.\36\
Therefore, to initiate a Periodic Auction in this example, assume that
two Periodic Auction Orders arrived, from Firm B and Firm C, prior to
Order 1 and Order 4--e.g., Order X (Firm B) and Order Y (Firm C).
Further assume that Order X and Order Y are marketable versus each
other and initiated a Periodic Auction. Additionally, assume that Order
1, a Continuous Book Order is entered prior to Order 4, and that Order
1 and Order 4 are designated with MTP modifiers originating from the
same Unique Identifiers. Upon the arrival of Order 4, a Periodic
Auction Order, the System will temporarily bypass \37\ Order 1's and
Order 4's MTP instruction, and Order 4 will join the Periodic Auction.
Order 1 will remain on the Book. If Order 1 did not execute in the
Continuous Book while the Periodic Auction was in progress, then Order
1 could potentially execute with Order 4, provided that Order 1 has
priority as determined by Rule 11.25(f). The bypassing of the MTP
modifiers in this scenario occurs only upon entry of Order 4 to prevent
the cancelation of orders in situations where an immediate execution
would not occur.
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\35\ This iteration of Example 4 demonstrates the proposed
functionality described in proposed Rule 11.25(e)(1)(A).
\36\ See Rule 11.25(c), Initiation and Publication of Periodic
Auction Information, ``A Periodic Auction will be initiated in a
security during Regular Trading Hours when one or more Periodic
Auction Orders to buy become executable against one or more Periodic
Auction Orders to sell pursuant to this Rule 11.25.''
\37\ The Exchange notes that the bypassing of the MTP modifiers
in this scenario is temporary. Should the Periodic Auction complete
and Order 1 does not have the opportunity to trade with Order 4 in
the Periodic Auction, then Order 1 would remain posted on the
Continuous Book with its MTP modifier and be afforded the
protections of MTP.

NBBO: 10.00 x 10.05
Order X (Firm B): Buy 100 @10.03--Midpoint Peg PAO
Order Y (Firm C): Sell 100 @10.02--Midpoint Peg PAO
Auction is initiated between Order X and Order Y
Order 1 (Firm A): Buy 100 @10.03--Midpoint Peg Continuous Book
Order--MTP = Cancel Oldest
Order 4 (Firm A): Sell 100 @10.02--Midpoint Peg PAE--MTP =
Cancel Oldest
MTP would be bypassed when Order 4 is entered and Order 4
would join the Periodic Auction in progress.
Result: Order X and Order Y trade 100 @10.025 in Periodic
Auction. Order 1 and Order 2 trade 100 @10.025 in Periodic Auction

[[Page 78422]]

Here, even though Order 1 and Order 4 both originated from Firm A,
and are designated with an MTP modifier, Order 1 is not canceled upon
Order 4's arrival because Order 1 is a Continuous Book Order that may
or may not end up trading with Order 4 once the Periodic Auction is
complete. Because Order 1 could receive an execution on the Continuous
Book while the Periodic Auction is in progress, the Exchange
temporarily bypasses Order 1's MTP instruction upon Order 4's arrival
to prevent Order 1 from forfeiting a Continuous Book execution based on
a possibility that Order 1 would be executable versus Order 4 at the
completion of the Periodic Auction.
Example 6: Incoming Continuous Book Order Matching Against a PAO
Order--No MTP Action Occurs
Example 6 illustrates how MTP will operate when Firm A's incoming
Continuous Book Order with an MCS modifier matches with Firm A's
resting PAO Order with an MCS modifier, and a Periodic Auction is not
in progress. Here, MTP will not be applied because PAO Orders and
Continuous Book Orders are not permitted to trade with one another.\38\
As such, MTP is not needed to prevent Firm A's Order 1 from trading
with Firm A's Order 2 and as such, Order 2 is permitted to post to the
BYX Book.
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\38\ Supra note 16 (``Periodic Auction Only Orders are not
eligible for execution on the Continuous Book.'').

Order 1--Resting (Firm A): PAO Order (MTP = Cancel Smallest),
Buy 100 @1.00
Order 2--Inbound order (Firm A): Continuous Book order (MTP =
Cancel Smallest), Sell 200 @1.00
Result: Order 2 will rest in the Continuous Book, and there is
no MTP action.
Example 7: Incoming Order Is Canceled Due to ``Periodic Auction in
Progress'' Involving a PAO Order
Example 7 illustrates how an incoming order with a MTP modifier is
canceled because a Periodic Auction is in progress.\39\ Here, Firm A's
inbound Order 2, a PAE Order to sell 200 @1.00, with a MTP modifier of
MTP Cancel Both (``MCB''),\40\ immediately starts an auction with Firm
B's Order 1, a resting PAO Order to Buy 100 @1.00, that is
participating in the Periodic Auction. While the Periodic Auction is in
progress, Firm A enters Order 3, a PAE Order to Buy 200 @1.00 with an
MCB instruction.
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\39\ Example 7 demonstrates the proposed functionality described
in 11.25(e)(1)(B).)(1)(B).
\40\ MTP Cancel Both (``MCB'') is defined as ``[a]n incoming
order marketed with the ``MCB'' modifier will not execute against
opposite side resting interest marked with any MTP modifier
originating from the same Unique Identifier. The entire size of both
orders will be cancelled back to the originating User(s). See Rule
11.9(f)(4). demonstrates the proposed functionality described in
proposed Rule 11.25(e).
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The entry of Order 3 presents a scenario in which the Exchange
seeks to implement MTP functionality that behaves differently than
demonstrated in each of the preceding five examples. Specifically, if a
Periodic Auction is in progress, and an inbound Periodic Auction is
designated with an MTP modifier, and such order matches against a
resting contra-side Periodic Auction Order, that is participating in
the Periodic Auction, originating from the same Unique Identifier that
is also designated with an MTP modifier, then the Periodic Auction
Order will be cancelled. Importantly, this behavior is necessary to
help ensure that once a Periodic Auction is initiated it will be
completed.
Applying this proposed behavior to Example 7's fact pattern, when
Firm A's Order 3, a PAE Order with an MCB modifier is entered after
Periodic Auction has been initiated and Order 3 subsequently matches
with Firm A's Order 2 (a PAE Order with a MCB modifier), Order 3 will
be cancelled. Without this proposed behavior, Order 3 would otherwise
be included in the Periodic Auction, and its MTP Cancel Both
instruction would result in the cancelation of Order 2,\41\ preventing
the Periodic Auction from completing, and denying Firm A an execution
it would otherwise have expected to receive. The Exchange believes that
this proposed behavior appropriately balances the dual goals of
ensuring that Periodic Auctions complete once initiated and providing
Members the ability to utilize MTP for their Periodic Auction Orders in
each of the scenarios described in the preceding five examples.\42\
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\41\ See Rule 11.9(f)(4).
\42\ The Exchange notes that the proposed MTP functionality is
intended as a supplementary risk tool that Members may voluntarily
use to help them manage their risk and compliance with applicable
securities rules. As registered broker-dealers, Members are
ultimately responsible for compliance with applicable securities
rules, and should not rely on the proposed functionality as a sole
means of compliance. As such, while the proposed MTP functionality
will, in some instances, operate differently than it does outside of
the context of Periodic Auctions, its design as a supplementary risk
tool will still serve to benefit Members that choose to utilize this
tool.

Order 1--Resting (Firm B): PAO Order, Buy 100 @1.00
Order 2--Inbound Order (Firm A): PAE Order (MTP = Cancel Both
⁴³), Sell 200 @1.00
---------------------------------------------------------------------------

\43\ MTP Cancel Both is defined as ``[a]n incoming order marked
with the ``MCB'' modifier will not execute against the opposite side
resting interest marked with any MTP modifier originating from the
same Unique Identifier. The entire size of both orders will be
cancelled back to the originating User (s). See Rule 11.9(f)(4).
---------------------------------------------------------------------------

Action: Order 2 initiates a Periodic Auction with Order 1
Order 3--Inbound order (Firm A): PAE Order (MTP = Cancel
Both), Buy 200 @1.00
Result: Order 3 is canceled in order to prevent Order 3
participating in the Periodic Auction, canceling Order 2, and
disrupting the completion of the Periodic Auction.
Example 8: Incoming Order Has MTP Temporarily Bypassed in a Periodic
Auction
Example 8 is another example of MTP being temporarily bypasses when
a Periodic Auction is in progress, despite the Member adding MTP
instructions to their Periodic Auction Order(s) and Continuous Book
Order(s). Here, Firm B's Order 2, a PAE Order with an MCO modifier,
initiates a Periodic Auction upon entry with Firm A's Order 1, a
resting PAE Order with an MCO modifier. Firm A subsequently enters a
Continuous Book Order (Hidden) with an MCO modifier. Here, the Exchange
will temporarily bypass \44\ an inbound Continuous Book Order's MTP
modifier when a Periodic Auction is in progress, and such Continuous
Book Order would post to the Continuous Book, and be eligible to
participate in the Periodic Auction, or alternatively receive an
execution from the Continuous Book. In such instance, applying the
Continuous Book Order's MTP modifier and canceling such order based on
the potential that the order could trade in the Periodic Auction, would
be unnecessarily prohibitive. By posting to the Continuous Book, such
order could still execute without violating its MTP instructions.
---------------------------------------------------------------------------

\44\ The Exchange notes that the bypassing of the Continuous
Book Order's MTP modifier in this scenario is temporary. Should the
Periodic Auction complete and Order 3 does not have the opportunity
to trade with Order 1 in the Periodic Auction, then Order 3 would
remain posted on the Continuous Book with its MTP modifier and be
afforded the protections of MTP.
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Based on the proposed MTP functionality, Order 3 will post to the
BYX Book prior to the end of the Periodic Auction as the MTP modifier
is temporarily bypassed.\45\ Order 1 and

[[Page 78423]]

Order 2 will trade in the Periodic Auction for 500 shares @10.02. After
trading with Order 2, Order 1 still has 500 shares remaining. Prior to
the end of the Periodic Auction, Order 3 will be matched in the
Periodic Auction and trade 200 shares with Order 1 @10.02, bypassing
the MCO modifier assigned by Firm A to its Order 1 and Order 3.
---------------------------------------------------------------------------

\45\ The Exchange notes that the bypassing of the Continuous
Book Order's MTP modifier in this scenario is temporary. Should the
Periodic Auction complete and Order 3 does not have the opportunity
to trade with Order 1 in the Periodic Auction, then Order 3 would
remain posted on the Continuous Book with its MTP modifier and be
afforded the protections of MTP.
---------------------------------------------------------------------------

The Exchange believes that temporarily bypassing an MTP modifier in
this scenario is necessary to ensure that a Periodic Auction completes
once it is initiated.\46\ Additionally, bypassing Order 3's MTP
instruction is also necessary to avoid disrupting trading in the
Continuous Book, because Order 3 could perhaps post and trade while the
Periodic Auction is in progress. The Exchange therefore believes
cancelling Order 3 based on its potential to trade in the Periodic
Auction would unnecessarily prevent a Member from potentially receiving
a Continuous Book execution. While the proposed MTP functionality will
explicitly and automatically temporarily bypass a Member's MTP modifier
when the scenario described in Example 8 is present, the Exchange
believes that such behavior appropriately balances the dual goals of
ensuring that Periodic Auctions operate as designed (i.e., once
initiated they will complete, executing the maximum number of shares),
and still provides Members the ability to utilize MTP for their
Periodic Auction Orders in majority of instances described in each of
the preceding six examples.\47\
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\46\ Example 8 demonstrates the proposed functionality described
in proposed Rule 11.25(e)(1)(C).
\47\ The Exchange notes that the proposed MTP functionality is
intended as a supplementary risk tool that Members may voluntarily
use to help them manage their risk and compliance with applicable
securities rules. As registered broker-dealers, Members are
ultimately responsible for compliance with applicable securities
rules, and should not rely on the proposed functionality as a sole
means of compliance. As such, while the proposed MTP functionality
will, in some instances, operate differently than it does outside of
the context of Periodic Auctions, its design as a supplementary risk
tool will still serve to benefit Members that choose to utilize this
tool.

Order 1--Firm A: PAE Order (MTP = Cancel Oldest), Buy 1000
@10.02
Order 2--Firm B: PAE Order (MTP = Cancel Oldest), Sell 500,
@10.02
Action: Order 2 initiates an auction with Order 1, because
Firm A and Firm B are different entities.
Order 3--Inbound order (Firm A): Continuous Book Order (MTP =
Cancel Oldest), Sell 200 @10.02
Action: MTP modifier on Order 3 is temporarily bypassed
Result: Order 3 posts to the BYX Book prior to the end of the
auction; Order 1 and Order 2 trade in the Periodic Auction for 500
@10.02; Order 3 then trades 200 @10.02 with Order 1 (bypassing MTP).
Example 9: Minimum Quantity Order Unable To Be Filled (PAE vs. PAE)
⁴⁸
---------------------------------------------------------------------------

\48\ Example 9 demonstrates the proposed functionality described
in 11.25(e)(2).
---------------------------------------------------------------------------

Example 9 illustrates how the System will ignore the Minimum
Quantity instruction on a Periodic Auction Order that is also
designated with an MTP modifier, when the Minimum Quantity cannot be
satisfied. Specifically, in the event a Periodic Auction Order is
entered as a Minimum Quantity Order, as well as with an MTP modifier
(e.g., Order 1), and such Periodic Auction Order could initiate a
Periodic Auction with a contra-side Periodic Auction Order or trade
with a Continuous Book Order (e.g., Order 2), designated with an MTP
modifier from the same Unique Identifier as Order 1, the System will
apply ignore Order 1's Minimum Quantity instruction, and apply MTP,
regardless of whether the Minimum Quantity is satisfied. Here, upon
entry of Order 2, the System will ignore Order 1's Minimum Quantity
instruction, and instead apply MTP, resulting in the cancelation of
Order 1.

Order 1 (Firm A): Buy 1000 @10.02--PAE--Min Quantity = 500
(MTP=any)
Order 2 (Firm A): Sell 400 @10.02--PAE order (MTP=Cancel
Oldest)
Result: Order 2 cannot initiate an auction with Order 1 due to
the MIN quantity on Order 1. `MIN' on Order 1 is ignored and Order 2
cancels Order 1. Order 2 posts to the book.
Example 10: Minimum Quantity Order Able To Be Filled (PAE vs. PAE)
⁴⁹
---------------------------------------------------------------------------

\49\ Example 10 demonstrates the proposed functionality
described in 11.25(e)(2).
---------------------------------------------------------------------------

Example 10 illustrates how the System will ignore the Minimum
Quantity instruction on a Periodic Auction Order that is also
designated with a an MTP modifier, when the Minimum Quantity is
satisfied. Here, even though the Minium Quantity for Order 1 can be
satisfied by Order 2, the System will apply MTP resulting in the
cancelation of Order 1.

Order 1 (Firm A): Buy 1000 @10.02--PAE--Min Quantity = 500
(MTP = any)
Order 2 (Firm 2): Sell 1000 @10.02--PAE (MTP = Cancel Oldest)
Result: The System applies MTP, and cancels Order 1
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\50\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \51\ 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 facilitating
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) \52\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

\50\ 15 U.S.C. 78f(b).
\51\ 15 U.S.C. 78f(b)(5).
\52\ Id.
---------------------------------------------------------------------------

In particular, the Exchange believes that its proposed MTP
functionality is designed to promote the just and equitable principles
of trade, and to protect investors and the public interest, by enabling
Users to better prevent undesirable trading activity such as wash sales
or self-trades for not only their Continuous Book Orders, but their
Periodic Auction Orders as well. Additionally, by providing Users with
a supplemental risk tool that will better enable them to achieve
compliance with applicable securities rules and regulations, the
proposed rule change will help to further ensure that orders eligible
for execution in the Periodic Auction indeed represent genuine trading
interest from separate and distinct firms. While the proposed MTP
functionality would not operate identically to MTP as it is used in
non-Periodic Auction scenarios, the Exchange believes that its proposal
strikes an appropriate balance between ensuring Users receive
executions in the Periodic Auction and providing Users' the ability to
utilize MTP in most trading situations involving Periodic Auctions. By
making this clear to Users,\53\ they will be able to anticipate

[[Page 78424]]

how MTP modifiers will interact with their Periodic Auction Orders and
mitigate any confusion that Users may have in using the proposed
functionality.
---------------------------------------------------------------------------

\53\ In addition to codifying the proposed functionality, the
Exchange will send out a Member notice that includes information
about the proposed MTP functionality for Periodic Auctions.
---------------------------------------------------------------------------

Similarly, by making clear to Users that when they enter their
Periodic Auction Orders as Minimum Quantity Orders, and designate them
with an MTP instruction, and such Periodic Auction Orders attempt to
execute versus contra-side Periodic Auction Orders or Continuous Book
orders with a MTP modifier originating from the same Unique Identifier,
that the Minimum Quantity instruction will not be enforced, Users will
be better informed as to how MTP operates in conjunction with Minimum
Quantity restrictions, and will be better able to manage their Periodic
Auction Orders and when it may be sensible to enter Periodic Auction
Orders with both a Minimum Quantity restriction and an MTP modifier.
Additionally, the Exchange believes that the proposed rule changes
are designed to facilitate transactions in securities, and to remove
impediments to and perfect the mechanism of a free and open market and
a national market system. Based on User feedback, the lack of MTP
functionality for Periodic Auction Orders may discourage Users from
entering Periodic Auction Orders because they do not have an automated
way to systematically prevent undesirable executions resulting from
orders originating from a User's algorithm or trading desk, or their
related algorithms or trading desks. In this regard, the proposed rule
changes may encourage Users to increase their Periodic Auction
participation, thereby further enhancing the Periodic Auction liquidity
pool and the ability of investors to execute larger orders that may
otherwise be difficult to execute without market impact in the
continuous market. Additionally, because Periodic Auctions are price-
forming, the enhanced liquidity pools would indeed augment Periodic
Auction's valuable price discovery function, which may be particularly
helpful for investors when trading securities that typically trade with
wider spreads.
Again, while the proposed MTP functionality may not apply a User's
MTP modifiers in all instances, the Exchange as well as its Users
believe that some level of MTP protection is more beneficial than
completely foregoing MTP protection in its entirety. By making clear to
Users how MTP for Periodic Auction Orders will operate, Users can
better manage their use of MTP modifiers, and anticipate how their
Periodic Auction Orders will behave. Similarly, while Periodic Auction
Orders entered as Minimum Quantity Orders, as well as an MTP Modifier,
will in certain circumstances (discussed supra) cause the System to
ignore a User's Minimum Quantity requirements and instead apply MTP,
Users have indicated that they would prefer that MTP apply consistently
so as to prevent undesirable wash sales.
Finally, the Exchange further believes that the proposed rule
change does not unfairly discriminate amongst Users because the
proposal will allow all Periodic Auction Users to utilize MTP just as
all Users entering Continuous Book Orders may utilize MTP today. In
this regard, the proposed amendment will avoid disparate treatment of
Users. Furthermore, the bypassing or amending of MTP modifiers, as
described in the Examples above, will apply equally to all Periodic
Auction Users, regardless of their size.

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 that is not necessary or appropriate
in furtherance of the purposes of the Act. MTP is an optional
functionality offered by the Exchange and Periodic Auction Users are
free to decide whether to use MTP in their decision-making process when
submitting Periodic Auction Orders to the Exchange.
Similarly, the Exchange does not believe that the proposed
amendment poses a burden on intermarket competition that is not
necessary or appropriate in furtherance of the Act. Indeed, the
proposed rule change is designed to increase competition by offering
Periodic Auction Users the ability to better manage their order flow
and prevent undesirable executions. In turn, Users may be further
incentivized to send additional orders to BYX's Periodic Auction
mechanism, thereby fostering competition amongst exchanges, as well as
with off-exchange venues (e.g., alternative trading systems) where
Users that may otherwise utilized Periodic Auctions, typically seek to
source block-sized liquidity.\54\
---------------------------------------------------------------------------

\54\ See ``Trade Big with Cboe U.S. Periodic Auctions,''
available at: https://www.cboe.com/us/equities/trading/offerings/periodic_auctions/. (``Cboe created its patented Periodic Auctions
to establish an on-exchange alternative to the growth of off-
exchange liquidity. Most recently, the use of conditional order
types on Alternative Trading Systems (ATSs) has reached new highs as
a percentage of ATS volumes. Periodic Auctions would offer a new
price forming auction for investors seeking liquidity, including but
not limited to block size transactions, during the course of the
trading day. These intraday auctions may be a useful tool to attract
buyers and sellers in less liquid or wider spread names, and would
create an equal and fair market for market participants and
investors that wish to either initiate or respond to such auctions.
Periodic Auctions will be available on Cboe's BYX^TM
market center.'').
---------------------------------------------------------------------------

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 comments on the
proposed rule change.

III. Proceedings To Determine Whether To Approve or Disapprove SR-
CboeBYX-2024-009 and Grounds for Disapproval Under Consideration

The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \55\ to determine whether the proposed rule
change should be approved or disapproved. Institution of such
proceedings is appropriate at this time in view of the legal and policy
issues raised by the proposed rule change. Institution of proceedings
does not indicate that the Commission has reached any conclusions with
respect to any of the issues involved. Rather, as described below, the
Commission seeks and encourages interested persons to provide comments
on the proposed rule change.
---------------------------------------------------------------------------

\55\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

Pursuant to Section 19(b)(2)(B) of the Act,\56\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of the proposed rule change's consistency with Section 6(b)(5)
of the Act, which requires, among other things, that the rules of a
national securities exchange be ``designed to perfect the operation of
a free and open market and a national market system'' and ``protect
investors and the public interest,'' and not be ``designed to permit
unfair discrimination between customers, issuers, brokers, or
dealers,'' \57\ and Section 6(b)(8) of the Act, which requires that the
rules of a national securities exchange ``not impose any burden on
competition not necessary or appropriate in furtherance of the purposes
of [the Act].'' \58\
---------------------------------------------------------------------------

\56\ Id.
\57\ 15 U.S.C. 78f(b)(5).
\58\ 15 U.S.C. 78f(b)(8).

---------------------------------------------------------------------------

[[Page 78425]]

IV. Procedure: Request for Written 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 proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposal is
consistent with Section 6(b)(5), 6(b)(8) or any other provision of the
Act, or the rules and regulations thereunder. 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 19b-4, any request for
an opportunity to make an oral presentation.\59\
---------------------------------------------------------------------------

\59\ Section 19(b)(2) of the Act, as amended by the Securities
Act Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the
Commission flexibility to determine what type of proceeding--either
oral or notice and opportunity for written comments--is appropriate
for consideration of a particular proposal by a self-regulatory
organization. See Securities Act Amendments of 1975, Senate Comm. on
Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st
Sess. 30 (1975).
---------------------------------------------------------------------------

In particular, the Commission seeks comment on the following:
Commenter's views on whether or not the Exchange has
adequately described how the proposed functionality would handle
incoming Periodic Auction Orders with MTP modifiers and incoming
Continuous Book Orders with MTP modifiers before, during and after the
conclusion of a Periodic Auction;
Commenter's views on whether or not the Exchange has
adequately described how the proposed incoming Periodic Auction Orders
with MTP modifiers and incoming Continuous Book Orders with MTP
modifiers would impact other Continuous Book Orders or Periodic Auction
Orders;
Commenter's views on whether or not it is appropriate for
the proposed functionality to, in certain circumstances, allow for the
execution of orders originating from the same Unique Identifier, even
if those orders have MTP modifiers, and whether or not the Exchange has
adequately explained and justified this proposed functionality; and
Commenter's views on whether or not the proposed
functionality adds unnecessary complexity to the Exchange.
Interested persons are invited to submit written data, views, and
arguments regarding whether the proposal should be approved or
disapproved by October 16, 2024. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
October 30, 2024. The Commission asks that commenters address the
sufficiency of the Exchange's statements in support of the proposal,
which are set forth in Amendment No. 1,\60\ in addition to any other
comments they may wish to submit about the proposed rule change.
---------------------------------------------------------------------------

\60\ See supra note 4.
---------------------------------------------------------------------------

Comments may be submitted by any of the following methods:

Electronic Comments

Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-CboeBYX-2024-009 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-CboeBYX-2024-009. 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 (https://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 principal office of the Exchange. 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 SR-CboeBYX-2024-009 and should
be submitted on or before October 16, 2024. Rebuttal comments should be
submitted by October 30, 2024.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\61\
---------------------------------------------------------------------------

\61\ 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-21876 Filed 9-24-24; 8:45 am]
BILLING CODE 8011-01-P