Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Notices 1619 

50 17 CFR 200.30–3(a)(12). 

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). 

5See Rule 21.7(a) for the definition of Opening 

Collars. 

6See Rule 21.17(a)(4)(B). 

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–MEMX–2023–39 and should be 

submitted on or before January 31, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.50

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–00286 Filed 1–9–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99273; File No. SR– 

CboeEDGX–2023–082] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Rule 

21.17 

January 4, 2024. 

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 December 

21, 2023, 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) proposes to 

amend Rule 21.17. The text of the 

proposed rule change is provided 

below. 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

Rules of Cboe EDGX Exchange, Inc. 

* * * * * 

Rule 21.17. Additional Price Protection 

Mechanisms and Risk Controls 

The System’s acceptance and 

execution of orders, quotes, and bulk 

messages, as applicable, are subject to 

the price protection mechanisms and 

risk controls in Rule 21.16, this Rule 

21.17, and as otherwise set forth in the 

Rules. Unless otherwise specified the 

price protections set forth in this Rule, 

including the numeric values 

established by the Exchange, may not be 

disabled or adjusted. The Exchange may 

share any of a User’s risk settings with 

the Clearing Member that clears 

transactions on behalf of the User. 

(a) Simple Orders. 

(1)–(3) No change. 

(4) Drill-Through Price Protection. 

(A)–(B) No change. 

(C) The System enters a market order 

with a Time-in Force of Day or limit 

order with a Time-in-Force of Day, GTC, 

or GTD (or unexecuted portion) not 

executed pursuant to subparagraph (A) 

in the EDGX Options Book with a 

displayed price equal to the DrillThrough Price, unless the terms of the 

order instruct otherwise. 

(i)–(vii) No change. 

([viii]D) This protection does not 

apply to bulk messages or ISOs. 

* * * * * 

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 21.17. Specifically, the Exchange 

proposes to exclude Intermarket Sweep 

Orders (‘‘ISOs’’) from its drill-through 

protection. Pursuant to Rule 

21.17(a)(4)(A), if a buy (sell) order enters 

the book at the conclusion of the 

opening auction process or would 

execute or post to the book when it 

enters the book, the Exchange’s system 

executes the order up to an Exchangedetermined buffer amount (determined 

on a class and premium basis) above 

(below) the offer (bid) limit of the 

Opening Collar 5 or the National Best 

Offer (‘‘NBO’’) (National Best Bid 

(‘‘NBB’’)) that existed at the time of 

order entry, respectively (the ‘‘drillthrough price’’). The System cancels or 

rejects any market order with a time-inforce of immediate-or-cancel (‘‘IOC’’) (or 

unexecuted portion or limit order with 

time-in-force of IOC or fill-or-kill 

(‘‘FOK’’) (or unexecuted portion not 

executed pursuant to the previous 

sentence.6 Rule 21.17(a)(4)(C) 

establishes an iterative drill-through 

process, whereby the Exchange permits 

orders to rest in the book for multiple 

time periods and at more aggressive 

displayed prices during each time 

period. Specifically, for a market order 

with a time-in-force of day or limit order 

with a time-in-force of day, good-tilcancelled (‘‘GTC’’), or good-til-gate 

(‘‘GTD’’) (or unexecuted portion), the 

Exchange system enters the order in the 

book with a displayed price equal to the 

drill-through price (unless the terms of 

the order instruct otherwise). The order 

(or unexecuted portion) will rest in the 

book at the drill-through price for the 


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1620 Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Notices 

7An ‘‘Eligible Exchange’’ means a national 

securities exchange registered with the SEC in 

accordance with Section 6(a) of the Securities 

Exchange Act of 1934 (the ‘‘Act’’) that: (a) is a 

Participant Exchange in OCC (as that term is 

defined in Section VII of the OCC by-laws); (b) is 

a party to the OPRA Plan (as that term is described 

in Section I of the OPRA Plan); and (c) if the 

national securities exchange chooses not to become 

a party to this Plan, is a participant in another plan 

approved by the Securities and Exchange 

Commission (the ‘‘Commission’’) providing for 

comparable Trade-Through and Locked and 

Crossed Market protection. The term ‘‘TradeThrough’’ means a transaction in an options series 

at a price that is lower than a Protected Bid or 

higher than a Protected Offer. A ‘‘Protected Bid’’ or 

‘‘Protected Offer’’ means a bid or offer in an options 

series, respectively, that (a) is disseminated 

pursuant to the OPRA Plan; and (b) is the best bid 

or best offer, respectively, displayed by an Eligible 

Exchange. A ‘‘Locked Market’’ means a quoted 

market in which a Protected Bid is equal to a 

Protected Offer in a series of an options class, and 

a ‘‘Crossed Market’’ means a quoted market in 

which a Protected bid is higher than a Protected 

Offer in a series of an options class. See Rule 

27.1(a)(5), (7), (10), (18), and (22). 

8See Rules 21.1(d)(9) and 27.1(a)(9). 

9See proposed Rule 21.17(a)(4)(D). As set forth in 

current Rule 21.17(a)(4)(C)(viii), the drill-through 

protection does not apply to bulk messages. The 

proposed rule change moves this current exclusion 

to proposed Rule 21.17(a)(4)(D) so that all orders 

and quotes that are excluded from the drill-through 

protection are maintained in the same rule 

provision, and the Exchange believes proposed 

subparagraph (D) is a more appropriate place for 

listing excluded orders and quotes. This 

nonsubstantive change regarding the exclusion of 

bulk messages from the drill-through protection has 

no impact on current behavior and merely moves 

the exclusion to a different subparagraph. 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

12 Id. 

13The Exchange notes ISOs will continue to 

receive price protection, such as from the limit 

order fat finger check. See Rule 21.17(a)(2). 

14See Miami International Securities Exchange, 

LLC (‘‘MIAX’’) Rule 515(c)(1) (ISOs excluded from 

MIAX’s price protection on non-market maker 

orders in non-proprietary products, which prevents 

orders from executing more than a specified 

duration of consecutive time periods 

(the Exchange determines on a class-byclass basis the length of the time period 

in milliseconds, which may not exceed 

three seconds), which are referred to as 

‘‘iterations.’’ Following the end of each 

period, the Exchange system adds (if a 

buy order) or subtracts (if a sell order) 

one buffer amount (the Exchange 

determines the buffer amount on a classby-class basis) to the drill-through price 

displayed during the immediately 

preceding period (each new price 

becomes the ‘‘drill-through price’’). The 

order (or unexecuted portion) rests in 

the book at that new drill-through price 

for the duration of the subsequent 

period. The Exchange system applies a 

timestamp to the order (or unexecuted 

portion) based on the time it enters or 

is re-priced in the book for priority 

reasons. The order continues through 

this iterative process until the earliest of 

the following to occur: (a) the order 

fully executes; (b) the user cancels the 

order; and (c) the buy (sell) order’s limit 

price equals or is less (greater) than the 

drill-through price at any time during 

application of the drill-through 

mechanism, in which case the order 

rests in the book at its limit price, 

subject to a user’s instructions. 

Currently, the drill-through protection 

applies to ISOs. An ISO is a limit order 

for an options series that meets the 

following requirements: (1) when routed 

to an Eligible Exchange,7 the order is 

identified as an ISO; and (2) 

simultaneously with the routing of the 

order, one or more additional ISOs, as 

necessary, are routed to execute against 

the full displayed size of any Protected 

Bid, in the case of a limit order to sell, 

or any Protected Offer, in the case of a 

limit order to buy, for the options series 

with a price that is superior to the limit 

price of the ISO, with such additional 

orders also marked as ISOs.8

The Exchange proposes to exclude 

ISOs from the drill-through protection.9

The primary purpose of the drillthrough price protection is to prevent 

orders from executing at prices ‘‘too far 

away’’ from the market when they enter 

the book for potential execution. This is 

inconsistent with the primary purpose 

of ISOs, which is to permit orders to 

trade at prices outside of the market. 

The Exchange believes excluding ISOs 

from the drill-through is consistent with 

the purpose of each type of 

functionality. 

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.10 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 11 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) 12 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange believes 

the proposed rule change will promote 

just and equitable principles of trade, 

remove impediments to and perfect the 

mechanism of a national market system, 

and protect investors and the public 

interest, because it will increase 

instances in which ISOs receive 

executions up to their limit prices, 

including outside of the market prices 

when the ISOs were submitted to the 

Exchange, which the Exchange believes 

is consistent with the expectations of 

users that submit those orders. As noted 

above, the primary purpose of ISOs is to 

permit orders to trade at prices outside 

of the market. The primary purpose of 

the drill-through price protection is to 

prevent orders from executing at prices 

‘‘too far away’’ from the market when 

they enter the book for potential 

execution. The Exchange believes 

excluding ISOs from the drill-through is 

consistent with the purpose of each type 

of functionality. Therefore, the 

Exchange believes the proposed rule 

change will enhance the Exchange 

system by aligning its drill-through 

protection with the intended purpose of 

ISOs.13 The Exchange believes the 

proposed rule change may ultimately 

result in additional executions 

consistent with the expectations of users 

that submit ISOs, which ultimately 

benefits investors. The Exchange further 

believes the proposed rule change is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers, as it will 

apply to ISOs of all users. 

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. The 

Exchange does not believe that the 

proposed rule change will impose any 

burden on intramarket competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act, 

because it will apply in the same 

manner to ISOs of all Members. The 

Exchange does not believe that the 

proposed rule change will impose any 

burden on intermarket competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act, 

because it relates solely to the 

application of one of the Exchange’s 

price protection mechanisms to ISOs. 

The Exchange notes at least one other 

options exchange excludes ISOs from 

certain of its price protection 

measures.14


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Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Notices 1621 

number of increments away from the national best 

bid or offer (‘‘NBBO’’) at the time the order is 

received). 

15 15 U.S.C. 78s(b)(3)(A)(ii). 

16 17 CFR 240.19b–4(f)(2). 17 17 CFR 200.30–3(a)(12). 

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. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act 15 and Rule 

19b–4(f)(2) 16 thereunder. 

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 

change 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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CboeEDGX–2023–082 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–2023–082. 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–CboeEDGX–2023–082 and should be 

submitted on or before January 31, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–00284 Filed 1–9–24; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice: 12297] 

Report to Congress Pursuant to the 

United States—Northern Triangle 

Enhanced Engagement Act 

ACTION: Notice of report. 

SUMMARY: This document provides an 

update to the Department of State’s 

report to Congress on July 19, 2023, 

regarding foreign persons who are 

determined to have knowingly engaged 

in actions that undermine democratic 

processes or institutions, significant 

corruption, or obstruction of 

investigation into such acts of 

corruption in El Salvador, Guatemala, 

and Honduras pursuant to the United 

States—Northern Triangle Enhanced 

Engagement Act, as amended. 

SUPPLEMENTARY INFORMATION: Report to 

Congress on Foreign Persons who have 

Knowingly Engaged in Actions that 

Undermine Democratic Processes or 

Institutions, or in Significant 

Corruption, or in Obstruction of 

Investigations into Such Acts of 

Corruption, in El Salvador, Guatemala, 

Honduras, and Nicaragua Pursuant to 

Section 353(b) of the Department of 

State, Foreign Operations, and Related 

Programs Appropriations Act, 2021 

(Div. FF, Pub. L. 116–260, as 

amended) (Section 353) 

Consistent with section 353(b) of the 

United States—Northern Triangle 

Enhanced Engagement Act (Div. FF, 

Pub. L. 116–260) (the Act), as amended, 

this report is being submitted to the 

House Foreign Affairs Committee, 

Senate Foreign Relations Committee, 

House Committee on the Judiciary, and 

the Senate Committee on the Judiciary. 

This document provides an update to 

the Department of State’s report to 

Congress on July 19, 2023. Section 

353(b) requires the submission of a 

report that identifies the following 

persons in El Salvador, Guatemala, 

Honduras, and Nicaragua: foreign 

persons who the President has 

determined have knowingly engaged (1) 

in actions that undermine democratic 

processes or institutions; (2) in 

significant corruption; and (3) in 

obstruction of investigations into such 

acts of corruption, including the 

following: corruption related to 

government contracts; bribery and 

extortion; the facilitation or transfer of 

the proceeds of corruption, including 

through money laundering; and acts of 

violence, harassment, or intimidation 

directed at governmental and 

nongovernmental corruption 

investigators. On November 10, 2021, 

the President signed the Reinforcing 

Nicaragua’s Adherence to Conditions for 

Electoral Reform (RENACER) Act, 

adding Nicaragua to the countries 

within the scope of Section 353. On 

June 21, 2021, the President delegated 

his authority under section 353 to the 

Secretary of State. 

Under section 353, foreign persons 

identified in the report submitted to 

Congress are generally ineligible for 

visas and admission to the United States 

and any current visa shall be revoked 

and any other valid visa or entry 

documentation cancelled. Consistent 

with section 353(g), this report will be 

published in the Federal Register. 

This report includes individuals who 

the Secretary has determined have 

engaged in the relevant activity based 

upon credible information. The 

Department will continue to review the 

individuals listed in the report and 

consider all available tools to deter and 

disrupt corrupt and undemocratic 

activity in El Salvador, Guatemala, 

Honduras, and Nicaragua. The 

Department also continues to actively 


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