8472 Federal Register / Vol. 89, No. 26 / Wednesday, February 7, 2024 / Notices 

20 15 U.S.C. 78s(b)(3)(A). 

21 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. 

22 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 99197 

(Dec. 18, 2023), 88 FR 88668. Comments on the 

proposed rule change are available at https://

www.sec.gov/comments/sr-cboebzx-2023-101/

srcboebzx2023101.htm. 

4 15 U.S.C. 78s(b)(2). 

updates the SBBO, which ultimately 

protects investors and the public 

interest. 

The Exchange believes the proposed 

nonsubstantive changes to capitalize the 

lettering of the subparagraphs in Rules 

21.22(d)(1) and 21.23(d)(1) will benefit 

investors, as it will conform to the 

lettering used throughout the Rulebook 

and thus eliminate potential investor 

confusion. 

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, 

as the proposed changes will apply to 

all Members in the same manner. 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, 

as it relates solely to provisions 

regarding when complex auctions 

occurring on the Exchange may 

terminate early. The proposed rule 

changes are not intended to be 

competitive. 

Additionally, the proposed 

nonsubstantive changes are not 

competitive and merely conform 

subparagraph lettering to the lettering 

used throughout the Rulebook. 

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 

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 from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 20 and Rule 

19b–4(f)(6) thereunder.21 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 will 

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–2024–010 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–2024–010. 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–2024–010 and should be 

submitted on or before February 28, 

2024. 

For the Commission, by the Division 

of Trading and Markets, pursuant to 

delegated authority.22

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–02415 Filed 2–6–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99460; File No. SR– 

CboeBZX–2023–101] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change To List and Trade Shares 

of the Pando Asset Spot Bitcoin Trust 

Under BZX Rule 14.11(e)(4), 

Commodity-Based Trust Shares 

February 1, 2024. 

On December 5, 2023, Cboe BZX 

Exchange, Inc. (‘‘BZX’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘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 list and trade shares of the 

Pando Asset Spot Bitcoin Trust under 

BZX Rule 14.11(e)(4), Commodity-Based 

Trust Shares. The proposed rule change 

was published for comment in the 

Federal Register on December 22, 

2023.3

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 89, No. 26 / Wednesday, February 7, 2024 / Notices 8473 

5 15 U.S.C. 78s(b)(2). 

6 17 CFR 200.30–3(a)(31). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3The ‘‘SIP’’ refers to the centralized securities 

information processors. 

4See ‘‘How Subdollar Securities are Trading 

Now’’ (March 16, 2023). Available at https://

www.cboe.com/insights/posts/how-subdollarsecurities-are-trading-now/. 

5 Id. 

6Trade Reporting Facilities are facilities through 

which FINRA members report off-exchange 

transactions in NMS stocks, as defined in SEC Rule 

600(b)(47) of Regulation NMS. See Securities 

Exchange Act Release No. 96494 (December 14, 

2022), 87 FR 80266 (December 29, 2022) (‘‘Tick Size 

Proposal’’) at 80315. 

7Supra note 4. 

8 Id. 

9See Rule 1.5(d). The EDGX Book means the 

System’s electronic file of orders. 

10See Rule 1.5(ee). The term ‘‘User’’ shall mean 

any Member or Sponsored Participant who is 

authorized to obtain access to the System pursuant 

to Rule 11.3. 

11Orders containing a Post Only instruction in 

securities priced at or above $1.00 remove contraside liquidity only if the value of such execution 

when removing liquidity equals or exceeds the 

value of such execution if the order instead posted 

to the EDGX Book and subsequently provided 

liquidity. The Exchange does not propose to change 

the functionality of orders containing a Post Only 

instruction in securities priced at or above $1.00. 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is February 5, 

2024. The Commission is extending this 

45-day time period. 

The Commission finds it appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change 

and the issues raised therein. 

Accordingly, the Commission, pursuant 

to Section 19(b)(2) of the Act,5

designates March 21, 2024, as the date 

by which the Commission shall either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

(File No. SR–CboeBZX–2023–101). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–02416 Filed 2–6–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99459; File No. SR– 

CboeEDGX–2024–007] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

of a Proposed Rule Change To Amend 

Rule 11.6(n)(4) and Rule 11.10(a)(4)(D) 

To Permit the Use of the Post Only 

Order Instruction at Prices Below $1.00 

February 1, 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 January 

19, 2024, 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 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 11.6(n)(4) and Rule 

11.10(a)(4)(D) to permit the use of the 

Post Only order instruction at prices 

below $1.00. 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 

Trading in sub-dollar securities both 

on- and off-exchange has grown 

significantly since early 2019. An 

analysis of SIP 3 data by the Exchange 

found that sub-dollar average daily 

volume has increased over 300% as 

compared to volumes in the first quarter 

of 2019.4 During this period, onexchange average daily volume in subdollar securities grew from 442 million 

shares per day to 1.8 billion shares per 

day.5 A separate analysis of SIP and 

FINRA Trade Reporting Facility 

(‘‘TRF’’) 6 data indicated that exchanges 

represented approximately 39.8% 

market share in sub-dollar securities, 

with a total of 1,638 securities trading 

below $1.00.7 As an exchange group, 

Cboe had approximately 13.3% of 

market share in sub-dollar securities in 

the first quarter of 2023.8 Additionally, 

an analysis of internal data showed that 

the Exchange has seen retail sub-dollar 

average daily volume grow from 

approximately $40 million during the 

first quarter of 2022 to over $100 million 

during the third quarter of 2023. 

As a result of the growth in sub-dollar 

trading, the Exchange proposes to 

amend Rule 11.6(n)(4) in order to permit 

an order containing a Post Only 

instruction to post to the EDGX Book 9

at prices below $1.00. As defined in 

Rule 11.6(n)(4), a Post Only instruction 

is ‘‘[a]n instruction that may be attached 

to an order that is to be ranked and 

executed on the Exchange pursuant to 

Rule 11.9 and Rule 11.10(a)(4) or 

cancelled, as appropriate, without 

routing away to another trading center 

except that the order will not remove 

liquidity from the EDGX Book . . .’’. 

Accordingly, an order containing a Post 

Only instruction does not remove 

liquidity, but rather posts to the EDGX 

Book to the extent permissible. 

Additionally, the Exchange proposes to 

amend Rule 11.10(a)(4)(D) to describe 

the manner in which bids or offers 

priced below $1.00 per share are 

executed against orders resting on the 

EDGX Book. The Exchange believes the 

proposed changes will provide Users 10

with an additional order type to utilize 

when submitting order flow to the 

Exchange in securities priced below 

$1.00, thereby contributing to a deeper 

and more liquid market, which benefits 

all market participants and provides 

greater execution opportunities on the 

Exchange. 

Currently, orders containing a Post 

Only instruction priced below $1.00 are 

automatically treated as orders that 

remove liquidity.11 In order to permit an 


khammond on DSKJM1Z7X2PROD with NOTICES