15242 Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 

19 15 U.S.C. 78s(b)(2)(B). 

20 17 CFR 200.30–3(a)(12), (59). 

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

2 17 CFR 240.19b–4. 

3FIX is an interface that allows Participants and 

their Sponsored Customers to connect, send, and 

receive messages related to orders and auction 

orders and responses to and from the Exchange. 

Features include the following: (1) execution 

messages; (2) order messages; and (3) risk protection 

triggers and cancel notifications. In addition, a BX 

Participant may elect to utilize FIX to send a 

message and PRISM Order, as defined within 

Options 3, Section 13, to all BX Participants that 

opt in to receive Requests for PRISM requesting that 

it submit the sender’s PRISM Order with 

responder’s Initiating Order, as defined within 

Options 3, Section 13, into the Price Improvement 

Auction (‘‘PRISM’’) mechanism, pursuant to 

Options 3, Section 13 (‘‘Request for PRISM’’). See 

Options 3, Section 7(e)(1)(A). 

4 General 2, Section 22 describes Sponsored 

Access arrangements. 

5The term ‘‘System’’ or ‘‘Trading System’’ means 

the automated system for order execution and trade 

reporting owned and operated by BX as the BX 

Options market. The BX Options market comprises: 

(A) an order execution service that enables 

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 

under Section 19(b)(2)(B) 19 of the Act 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– 

NYSEARCA–2024–16 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–NYSEARCA–2024–16. 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–NYSEARCA–2024–16 and should be 

submitted on or before March 22, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–04299 Filed 2–29–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99598; File No. SR–BX– 

2024–006] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Adopt an OTTO 

Protocol 

February 26, 2024 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on February 

15, 2024, Nasdaq BX, Inc. (‘‘BX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘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 

The Exchange proposes to adopt a 

new protocol, ‘‘Ouch to Trade Options’’ 

or ‘‘OTTO’’ and establish pricing for this 

new protocol. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, at the principal 

office of the Exchange, 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 

BX proposes to offer a new order 

entry protocol called OTTO. Today, BX 

Participants may enter orders into the 

Exchange through the ‘‘Financial 

Information eXchange’’ or ‘‘FIX.’’ 3 The 

proposed new OTTO protocol is 

identical to the OTTO protocol offered 

today on 3 Nasdaq affiliated exchanges, 

Nasdaq ISE, LLC (‘‘ISE’’), Nasdaq 

GEMX, LLC (‘‘GEMX’’) and Nasdaq 

MRX, LLC (‘‘MRX’’). 

The OTTO protocol is a proprietary 

protocol of Nasdaq, Inc. The Exchange 

continues to innovate and modernize 

technology so that it may continue to 

compete among options markets. The 

ability to continue to innovate with 

technology and offer new products to 

market participants allows BX to remain 

competitive in the options space which 

currently has seventeen options markets 

and potential new entrants. 

OTTO Protocol 

As proposed, OTTO would allow 

Participants and their Sponsored 

Customers 4 to connect, send, and 

receive messages related to orders, 

auction orders, and auction responses to 

the Exchange. OTTO features would 

include the following: (1) options 

symbol directory messages (e.g., 

underlying and complex instruments); 

(2) System 5 event messages (e.g., start of 


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Participants to automatically execute transactions 

in option series; and provides Participants with 

sufficient monitoring and updating capability to 

participate in an automated execution environment; 

(B) a trade reporting service that submits ‘‘lockedin’’ trades for clearing to a registered clearing 

agency for clearance and settlement; transmits lastsale reports of transactions automatically to the 

Options Price Reporting Authority for 

dissemination to the public and industry; and 

provides participants with monitoring and risk 

management capabilities to facilitate participation 

in a ‘‘locked-in’’ trading environment; and (C) the 

data feeds described in Options 3, Section 23. See 

BX Options 1, Section 1(a)(59). 

6For example, a Participant may desire to utilize 

multiple FIX or OTTO Ports for accounting 

purposes, to measure performance, for regulatory 

reasons, segregating order flow among different 

trading desks, or other determinations that are 

specific to that Participant. A market participant 

may utilize multiple ports in some cases to send 

multiple orders through different ports to avoid any 

latency or queuing of orders. The Exchange notes 

that to the extent that different OTTO Ports are used 

to send multiple orders as compared to sending 

multiple orders through one OTTO Port the 

difference from a latency standpoint would be in 

nanoseconds. 7See MRX Options 3, Section 17. 

trading hours messages and start of 

opening); (3) trading action messages 

(e.g., halts and resumes); (4) execution 

messages; (5) order messages; (6) risk 

protection triggers and cancel 

notifications; (7) auction notifications; 

(8) auction responses; and (9) post trade 

allocation messages. The Exchange 

notes that unlike FIX, which offers 

routing capability, OTTO does not 

permit routing. The Exchange proposes 

to include this description of OTTO in 

new Options 3, Section 7(e)(1)(B) and 

re-letter current ‘‘B’’ as ‘‘C’’. 

Only one order protocol is required 

for a BX Participant to submit orders 

into BX. Only BX Participants may 

utilize ports on BX. Any market 

participant that sends orders to a BX 

Participant would not need to utilize a 

port. The BX Participant may send all 

orders, proprietary and agency, through 

one port to BX. Participants may elect 

to obtain multiple ports to organize their 

business,6 however only one port is 

necessary for a Participant to enter 

orders on BX. 

Participants may elect to enter their 

orders through FIX, OTTO, or both 

protocols, although both protocols are 

not necessary. Participants may prefer 

one protocol as compared to another 

protocol, for example, the ability to 

route may cause a Participant to utilize 

FIX and a Participant that desires to 

execute an order locally may prefer 

OTTO. Also, the OTTO Port offers lower 

latency as compared to the FIX Port, 

which may be attractive to Participants 

depending on their trading behavior. 

Nasdaq believes that the addition of 

OTTO will provide BX Participants with 

additional choice when submitting 

orders to BX. 

While the Exchange has no way of 

predicting with certainty the amount or 

type of OTTO Ports market participants 

will in fact purchase, the Exchange 

anticipates that some Participants will 

subscribe to multiple OTTO Ports in 

combination with FIX Ports. The 

Exchange notes that Options 

Participants may use varying number of 

OTTO ports based on their business 

needs. 

Other Amendments 

In connection with offering OTTO, 

the Exchange proposes to amend other 

rules within Options 3. Each 

amendment is described below. 

Options 3, Section 7 

BX proposes to amend Options 3, 

Section 7, Types of Orders and Quote 

Protocols. Specifically, BX proposes to 

amend Options 3, Section 7 (b)(2) that 

describes the Immediate-or-Cancel’’ or 

‘‘IOC’’ order. Today, Options 3, Section 

7(b)(2)(B) notes that an IOC order may 

be entered through FIX or SQF, 

provided that an IOC Order entered by 

a Market Maker through SQF is not 

subject to the Order Price Protection, the 

Market Order Spread Protection, or Size 

Limitation in Options 3, Section 

15(a)(1), (a)(2), and (b)(2), respectively. 

The Exchange proposes to add ‘‘OTTO’’ 

to the list of protocols to note that an 

IOC order may also be entered through 

OTTO. 

BX also proposes to amend the 

‘‘DAY’’ order in Options 3, Section 

7(b)(3) that currently provides that a 

Day order may be entered through FIX. 

With the addition of OTTO, a Day order 

may also be entered through OTTO. 

BX also proposes to amend the ‘‘Good 

Til Cancelled’’ or ‘‘GTC’’ order which 

currently does not specify that a GTC 

order may be entered through FIX. GTC 

orders would only be able to be entered 

through FIX and not OTTO. The 

Exchange proposes to amend Options 3, 

Section 7(b)(4) to add a sentence to note 

that GTC orders may be entered through 

FIX. 

Options 3, Section 8 

BX proposes to amend Options 3, 

Section 8, Options Opening Process. BX 

proposes to amend Options 3, Section 

8(l) that describes the Opening Process 

Cancel Timer. The Opening Process 

Cancel Timer represents a period of 

time since the underlying market has 

opened. If an option series has not 

opened before the conclusion of the 

Opening Process Cancel Timer, a 

Participant may elect to have orders 

returned by providing written 

notification to the Exchange. Today, 

these orders include all non-Good Til 

Cancelled Orders received over the FIX 

protocol. The Exchange proposes to add 

the OTTO protocol as well to the rule 

text language in that paragraph. 

Options 3, Section 12 

The Exchange proposes to amend the 

Options 3, Section 12, Crossing Orders. 

Specifically, the Exchange proposes to 

amend Customer Crossing Orders in 

Options 3, Section 12(a) that currently 

provides Public Customer-to-Public 

Customer Cross Orders are 

automatically executed upon entry 

provided that the execution is at or 

between the best bid and offer on the 

Exchange and (i) is not at the same price 

as a Public Customer Order on the 

Exchange’s limit order book and (ii) will 

not trade through the NBBO. Public 

Customer-to-Public Customer Cross 

Orders must be entered through FIX. 

The Exchange proposes to remove the 

sentence that provides that Public 

Customer-to-Public Customer Cross 

Orders must be entered through FIX 

because they will be able to be entered 

through both FIX and OTTO. 

Options 3, Section 17 

The Exchange proposes to amend the 

Kill Switch at Options 3, Section 17. 

The Kill Switch provides Participants 

with an optional risk management tool 

to promptly cancel and restrict orders. 

With the introduction of OTTO, the 

Exchange proposes to align its Kill 

Switch rule text with MRX’s Kill 

Switch.7 The Exchange proposes to note 

in Options 3, Section 17(a) that BX 

Participants may initiate a message(s) to 

the System to promptly cancel and 

restrict their order activity on the 

Exchange, as is the case today, as 

described in section (a)(1). This 

amendment simply rewords the rule 

text without a substantive amendment 

to the rule text. 

The Exchange proposes to renumber 

Options 3, Section 17(a)(i) and (ii) as 

(a)(1) and (2). Current Options 3, 

Section 17(a)(i) states, ‘‘If orders are 

cancelled by the BX Participant utilizing 

the Kill Switch, it will result in the 

cancellation of all orders requested for 

the Identifier(s). The BX Participant will 

be unable to enter additional orders for 

the affected Identifier(s) until re-entry 

has been enabled pursuant to section 

(a)(ii).’’ The Exchange proposes to 

instead provide, ‘‘A BX Participant may 

submit a request to the System through 

FIX or OTTO to cancel all existing 

orders and restrict entry of additional 

orders for the requested Identifier(s) on 

a user level on the Exchange.’’ With the 

addition of OTTO, the Exchange notes 


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8See Securities Exchange Act Release No. 76116 

(October 8, 2015), 80 FR 62147 (October 15, 2015) 

(SR–BX–2015–050) (Order Approving Proposed 

Rule Change To Adopt a Kill Switch). 

9A permissible group could include all badges 

associated with a Market Maker. Today, a 

Participant is able to set up these groups in the 

interface to include all or some of the Identifiers 

associated with the Participant firm so that a GUI 

Kill Switch request could apply to this pre-defined 

group. 

10The Exchange proposes to remove this 

sentence, ‘‘Permissible groups must reside within a 

single broker-dealer’’ as the group option would no 

longer exist. 

11The Exchange proposes to update internal 

cross-references to accommodate relocated text. 

12An ‘‘account number’’ means a number 

assigned to a Participant. Participants may have 

more than one account number. See Options 1, 

Section 1(a)(2). 

that both FIX and OTTO orders may be 

cancelled. Further, today, BX 

Participants utilize an interface to send 

a message to the Exchange to initiate a 

Kill Switch.8 The Exchange notes that in 

lieu of the interface, BX Participants 

will only be able to initiate a 

cancellation of their orders by sending 

a mass purge request through FIX or 

OTTO. This change will align the Kill 

Switch functionality to that of ISE, 

GEMX and MRX Options 3, Section 17 

and will enable BX Participants to 

initiate the Kill Switch more seamlessly 

without the need to utilize a separate 

interface. When initiating a cancellation 

of their orders by sending a mass purge 

request through FIX or OTTO, 

Participants will be able to submit a Kill 

Switch request on a user level only. 

This is a change from the ability to 

cancel orders on either a user or group 

level 9 with the interface. The Exchange 

proposes to amend Options 3, Section 

17(a) to note this change by removing 

the words ‘‘or group’’ and the following 

sentence that applies to a group.10

Finally, the Exchange proposes to 

amend proposed Options 3, Section 

17(a)(2) to align to MRX’s rule text by 

providing ‘‘Once a BX Participant 

initiates a Kill Switch pursuant to (a)(1) 

above . . .’’ in the first sentence. This 

amendment simply rewords the rule 

text without a substantive amendment 

to the rule text. 

Options 3, Section 18 

The Exchange proposes to amend 

Options 3, Section 18, Detection of Loss 

of Communication. The Exchange 

proposes to add OTTO to Options 3, 

Section 18 as OTTO would also be 

subject to this rule. Today, when the 

SQF Port or the FIX Port detects the loss 

of communication with a Participant’s 

Client Application because the 

Exchange’s server does not receive a 

Heartbeat message for a certain time 

period, the Exchange will automatically 

logoff the Participant’s affected Client 

Application and automatically cancel 

all of the Participant’s open quotes 

through SQF and open orders through 

FIX. Quotes and orders are cancelled 

across all Client Applications that are 

associated with the same BX Options 

Market Maker ID and underlying issues. 

At this time, the Exchange proposes to 

permit orders entered through OTTO to 

be cancelled similar to FIX orders when 

the Exchange’s server does not receive 

a Heartbeat message for a certain time 

period. The Exchange is proposing to 

amend Options 3, Section 18 to also 

rearrange the rule text to add the word 

‘‘Definitions’’ next to ‘‘a’’ and move the 

rule text in current ‘‘a’’ to ‘‘b’’ and reletter the other paragraphs accordingly. 

Also, the Exchange proposes to define 

‘‘Session of Connectivity’’ for purposes 

of this rule to mean each time the 

Participant connects to the Exchange’s 

System. Further, each new connection, 

intra-day or otherwise, is a new Session 

of Connectivity. The Exchange proposes 

to use the new definition throughout 

Options 3, Section 18. 

Similar to FIX, when the OTTO Port 

detects the loss of communication with 

a Participant’s Client Application 

because the Exchange’s server does not 

receive a Heartbeat message for a certain 

time period, the Exchange will 

automatically logoff the Participant’s 

affected Client Application and 

automatically cancel all of the 

Participant’s open orders through 

OTTO. Orders would be cancelled 

across all Client Applications that are 

associated with the same BX Options 

Market Maker ID and underlying issues. 

The Exchange proposes to update 

Options 3, Section 18 to provide in 

proposed Options 3, Section 18(a)(3) 

that the OTTO Port is the Exchange’s 

proprietary System component through 

which Participants communicate their 

orders from the Client Application. 

Further, the Exchange would note in 

proposed Options 3, Section 18(c) that 

when the OTTO Port detects the loss of 

communication with a Participant’s 

Client Application because the 

Exchange’s server does not receive a 

Heartbeat message for a certain time 

period (‘‘nn’’ seconds), the Exchange 

will automatically logoff the 

Participant’s affected Client Application 

and if the Participant has elected to 

have its orders cancelled pursuant to 

proposed Section 18(f), automatically 

cancel all orders. Proposed Options 3, 

Section 18(f) would provide that the 

default period of ‘‘nn’’ seconds for 

OTTO Ports would be fifteen (15) 

seconds for the disconnect and, if 

elected, the removal of orders. A 

Participant may determine another time 

period of ‘‘nn’’ seconds of no technical 

connectivity, as required in proposed 

paragraph (c), to trigger the disconnect 

and, if so elected, the removal of orders 

and communicate that time to the 

Exchange. The period of ‘‘nn’’ seconds 

may be modified to a number between 

one hundred (100) milliseconds and 

99,999 milliseconds for OTTO Ports 

prior to each Session of Connectivity to 

the Exchange. This feature may be 

disabled for the removal of orders, 

however the Participant will be 

disconnected. 

Proposed Options 3, Section 18(f)(1) 

would provide that if the Participant 

changes the default number of ‘‘nn’’ 

seconds, that new setting shall be in 

effect throughout the current Session of 

Connectivity and will then default back 

to fifteen seconds. The Participant may 

change the default setting prior to each 

Session of Connectivity. Finally, as 

proposed in Options 3, Section 18(f)(2), 

if the time period is communicated to 

the Exchange by calling Exchange 

operations, the number of ‘‘nn’’ seconds 

selected by the Participant will persist 

for each subsequent Session of 

Connectivity until the Participant either 

contacts Exchange operations by phone 

and changes the setting or the 

Participant selects another time period 

through the Client Application prior to 

the next Session of Connectivity. The 

trigger for OTTO Ports is event and 

Client Application specific. The 

automatic cancellation of the BX 

Options Market Maker’s open orders for 

OTTO Ports entered into the respective 

OTTO Ports via a particular Client 

Application will neither impact nor 

determine the treatment of orders of the 

same or other Participants entered into 

the OTTO Ports via a separate and 

distinct Client Application. The 

proposed amendments for OTTO mirror 

the manner in which FIX Ports are 

treated when the Exchange’s server does 

not receive a Heartbeat message for a 

certain time period for a FIX Port.11

Pricing 

BX proposes to amend its Pricing 

Schedule at Options 7, Section 3, BX 

Options Market—Ports and other 

Services, to add pricing for the new 

OTTO protocol. Specifically, BX 

proposes to offer Participants the first 

OTTO Port at no cost. The one OTTO 

Port would permit BX Participants to 

submit orders into BX. Today, only one 

account number 12 is necessary to 

transact an options business on BX and 

account numbers are available to 

Participants at no cost. The Exchange 

proposes to note in the Pricing Schedule 

at Options 7, Section 3 that BX does not 


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13See MRX Options 7, Section 6 and GEMX 

Options 7, Section 6, C. MRX and GEMX do not 

offer an OTTO Port at no cost. MRX offers the first 

FIX Port at no cost. 

14The Exchange proposes to renumber the SQF 

Port Fee and SQF Purge Port Fee in Options 7, 

Section 3(i). 

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

16 15 U.S.C. 78f(b)(5). 

17See 15 U.S.C. 78f(b)(4) and (5). 

18For example, a Participant may desire to utilize 

multiple FIX or OTTO Ports for accounting 

purposes, to measure performance, for regulatory 

reasons or other determinations that are specific to 

that Participant. 19For example, a Participant may desire to utilize 

multiple FIX or OTTO Ports for accounting 

purposes, to measure performance, for regulatory 

reasons or other determinations that are specific to 

that Participant. 

20BX Participants have trade-through 

requirements under Regulation NMS as well as 

broker-dealers’ best execution obligations. See Rule 

611 of Regulation NMS; 17 CFR 242.611 and FINRA 

Rule 5310. 

assess a fee for an account number to 

provide greater transparency to 

Participants. 

The Exchange proposes to assess an 

OTTO Port Fee of $650 per port, per 

month, per account number for each 

subsequent port beyond the first port. 

This is the same fee assessed for OTTO 

Ports on MRX and GEMX.13 Additional 

OTTO Ports beyond the first OTTO Port 

would be optional for Participants to 

utilize as the Exchange is offering the 

first OTTO order protocol, per 

Participant, at no cost and only one port 

is necessary to enter orders into BX.14

Implementation 

The Exchange will implement this 

rule change on or before December 20, 

2025. The Exchange will announce the 

operative date to Participants in an 

Options Trader Alert. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,15 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,16

in particular, in that it is designed to 

promote just and equitable principles of 

trade, 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 that 

its proposal furthers the objectives of 

Sections 6(b)(4) and 6(b)(5) of the Act,17

in particular, in that it provides for the 

equitable allocation of reasonable dues, 

fees, and other charges among members 

and issuers and other persons using any 

facility, and is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

OTTO Protocol 

The Exchange’s proposal to adopt 

OTTO is consistent with the Act 

because OTTO would provide BX 

Participants with an alternative protocol 

to submit orders to the Exchange. As 

proposed, BX would offer the first 

OTTO Port at no cost to submit orders 

into BX, which would remove 

impediments to and perfect the 

mechanism of a free and open market. 

While BX Participants may elect to 

obtain multiple ports to organize their 

business,18 only one order port is 

necessary for a Participant to enter 

orders on BX. A BX Participant may 

send all orders, proprietary and agency, 

through one port to BX without 

incurring any cost with this proposal. In 

the alternative, BX Participants may 

elect to obtain multiple ports to organize 

their business.19

With the addition of OTTO, a BX 

Participant may elect to enter their 

orders through FIX, OTTO, or both 

protocols, although both protocols are 

not necessary. Each BX Participant 

would receive one OTTO Port at no 

cost, thereby promoting just and 

equitable principles of trade. The 

Exchange notes that Participants may 

prefer one order protocol as compared 

to another order protocol, for example, 

the ability to route an order may cause 

a Participant to utilize FIX and a 

Participant that desires to execute an 

order locally may utilize OTTO. Also, 

the OTTO Port offers lower latency as 

compared to the FIX Port, which may be 

attractive to Participants depending on 

their trading behavior. With this 

proposal, BX Participant may organize 

their business as they chose with the 

ability to send orders to BX at no cost. 

The proposed new OTTO protocol is 

identical to the OTTO protocol offered 

today on ISE, GEMX, MRX. 

Other Amendments 

In connection with offering OTTO, 

the Exchange proposes to amend other 

rules within Options 3 to make clear 

where the FIX and OTTO protocols may 

be utilized. IOC Orders may be entered 

through FIX, OTTO or SQF. A Day order 

may be entered through FIX or OTTO. 

A GTC order may only be entered 

through FIX. A Public Customer-toPublic Customer Cross Order may be 

entered through FIX or OTTO. Other 

processes such the Opening Cancel 

Timer would impact FIX and OTTO 

equally. 

The Exchange’s proposal to amend 

the Kill Switch at Options 3, Section 17 

to align its rule text in proposed Options 

3, Section 17(a) and (a)(2) with MRX’s 

Options 3, Section 17 is consistent with 

the Act because it does not 

substantively amend the functionality 

beyond removing the group level cancel 

capability. The Exchange’s proposal to 

amend proposed Options 3, Section 

17(a)(2) to specify that FIX and OTTO 

orders may be cancelled is consistent 

with the Act as it will make clear that 

all orders entered on BX may be purged 

through the Kill Switch. Finally, 

allowing BX Participants to send a mass 

purge request through FIX or OTTO, in 

lieu of an interface, is consistent with 

Act and the protection of investors and 

the general public because it will enable 

BX Participants to initiate the Kill 

Switch more seamlessly without the 

need to utilize a separate interface. 

Further, utilizing the order protocols 

directly, in lieu of the interface, will 

align the Kill Switch functionality to 

that of ISE, GEMX and MRX. When 

initiating a cancellation of their orders 

by sending a mass purge request 

through FIX or OTTO, Participants will 

be able to submit a Kill Switch request 

on a user level only because the purge 

will be specific to a FIX or OTTO user 

for these ports. 

Finally, the Detection of Loss of 

Communication would apply equally to 

FIX and OTTO. The Exchange believes 

that its proposal is consistent with the 

Act and protects investors as the 

Exchange is making clear what types of 

order types and other mechanisms may 

utilize OTTO. Today, BX Participants 

utilize FIX to enter their orders. Despite 

the fact that OTTO would not be 

available for the GTC Time-In-Force 

modifier, the Exchange notes that one 

OTTO Port is being provided to 

Participants at no cost. Today, FIX is the 

only manner in which to enter orders 

into BX. 

Pricing 

BX’s proposal to amend its Pricing 

Schedule at Options 7, Section 3 will 

offer BX Participants the first OTTO 

Port at no cost to submit orders into BX. 

Only BX Participants may utilize ports 

on BX. A Participant can send all 

orders, proprietary and agency, through 

one port to BX. Only one order entry 

protocol is required for BX Participants 

to submit orders into BX to meet its 

regulatory requirements.20 Additional 

ports beyond one port are not required 

for a BX Participant to meet its 

regulatory obligations. Participants may 

elect to obtain multiple account 

numbers to organize their business, 

however only one account number is 

necessary to transact options business 

on BX and account numbers are 

available to Participants at no cost. 

The Exchange’s proposal is 

reasonable, equitable and not unfairly 


ddrumheller on DSK120RN23PROD with NOTICES1
15246 Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 

discriminatory as BX is providing 

Participants the first OTTO Port to 

submit orders at no cost. One OTTO 

Port would allow a BX Participant to 

meet its regulatory requirements. 

Additional OTTO Ports, beyond the first 

port which is being offered at no cost, 

are not required for a BX Participant to 

meet its regulatory obligations. For the 

foregoing reasons, the Exchange believes 

that it is reasonable to assess no fee for 

the first OTTO Port obtained by a BX 

Participant as a BX Participant is able to 

meet its regulatory requirements with 

one OTTO Port. Additionally, the OTTO 

protocol is a proprietary protocol of 

Nasdaq, Inc. The Exchange continues to 

innovate and modernize technology so 

that it may continue to compete among 

options markets. The ability to continue 

to innovate with technology and offer 

new products to market participants 

allows BX to remain competitive in the 

options space which currently has 

seventeen options markets and potential 

new entrants. 

Today, a Member on ISE, GEMX, or 

MRX may utilize either a FIX or an 

OTTO Port to submit orders to the 

respective exchange. In analyzing the 

data provided below for ISE, GEMX and 

MRX, it is important to note that 30% 

of members on ISE subscribe to 1 OTTO 

Port and 24% of members subscribe to 

1 FIX Port. ISE had a market share of 

5.90% in 2023. Below are charts which 

display the number of members that 

subscribe to OTTO and FIX Ports on 

MRX. 

BILLING CODE 8011–01–P 

Below are charts which display the 

number of members that subscribe to 

OTTO and FIX Ports on GEMX. 


ddrumheller on DSK120RN23PROD with NOTICES1EN01MR24.031</GPH> EN01MR24.032</GPH>

MRX OTTO Ports 

MRX FIX Ports 

■ 1 port 

11 2-4 ports 

11 5-10 ports 

Ill More than 10 

II 1 port 

11 2-4 ports 

,. 5-10 ports 

More than 10 
Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 15247 

Below are charts which display the 

number of members that subscribe to 

OTTO and FIX Ports on ISE. 


ddrumheller on DSK120RN23PROD with NOTICES1EN01MR24.033</GPH> EN01MR24.034</GPH>

GEMX OTTO Ports 

GEMX FIX Ports 

• 1 port 

• 2-4 ports 

"5-10 ports 

" More than 10 

II 1 port 

,. 2-4 ports 

., 5-10 ports 

More than 10 
15248 Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 

21See MRX Options 7, Section 6 and GEMX 

Options 7, Section 6, C. MRX and GEMX do not 

offer an OTTO Port at no cost. MRX offers the first 

FIX Port at no cost. 

BILLING CODE 8011–01–C 

Further it is equitable and not unfairly 

discriminatory to assess no fee for the 

first OTTO Port to a BX Participant as 

all BX Participants would be entitled to 

the first OTTO Port at no cost. With this 

proposal, BX Participants may organize 

their business in such a way as to 

submit orders to BX at no cost. 

The Exchange’s proposal to assess BX 

Participants $650 per port, per month, 

per account number for OTTO Ports 

beyond the first port is reasonable 

because these ports are not required for 

a member to meet its regulatory 

requirements. BX Participants only 

require one order entry port to submit 

orders to BX. The Exchange is offering 

Participants one free OTTO Port. 

Participants that subscribe to FIX could 

utilize their FIX Port to submit orders 

and would not need to utilize an OTTO 

Port. Participants electing to subscribe 

to more than one OTTO Port are 

choosing the additional ports to 

accommodate their business model. For 

example, a Participant may purchase 

one or more OTTO Ports for its market 

making business, and then purchase 

separate OTTO Ports for proprietary 

trading or customer facing businesses, 

allowing the firm to send multiple 

messages into the Exchange’s System in 

parallel rather than sequentially. Some 

Participants that provide direct market 

access to their customers may also 

choose to purchase separate ports for 

different clients. While a smaller 

Participant may choose to subscribe to 

two OTTO Ports, a larger market 

participant with a substantial and 

diversified U.S. options business may 

opt to purchase multiple OTTO Ports to 

support both the volume and types of 

activity that they conduct on the 

Exchange. While the Exchange has no 

way of predicting with certainty the 

amount of OTTO Ports market 

participants will in fact purchase, the 

Exchange anticipates that some 

Participants will subscribe to multiple 

OTTO Ports. The Exchange believes that 

the proposed OTTO Port fees beyond 

the first port are reasonable because 

these ports are not required for a 

member to meet its regulatory 

requirements. Additionally, the 

proposed OTTO Port fee of $650 per 

port, per month, per account number is 

the same fee charged for OTTO Ports on 

MRX and GEMX.21

The Exchange’s proposal to assess BX 

Participants $650 per port, per month, 

per account number for OTTO Ports 

beyond the first port is equitable and 

not unfairly discriminatory because any 

BX Participant may elect to subscribe to 


ddrumheller on DSK120RN23PROD with NOTICES1EN01MR24.035</GPH> EN01MR24.036</GPH>

ISE OTTO Ports 

ISE FIX Ports 

■ 1 port 

■ 2-4 ports 

"5-10 ports 

" More than 10 

■ 1 port 

■ 2-4 ports 

■ 5-10 ports 

11 More than 10 
Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 15249 

22See GEMX Options 7, Section 6.C and MRX 

Options 7, Section 6. 

23See GEMX Options 7, Section 6.C and MRX 

Options 7, Section 6. 

24Cboe assesses a fee of $750 per port up to 5 

BOE/FIX Logical Ports, and $800 per port for over 

5 BOE/FIX Logical Ports. See Cboe’s Fees Schedule. 

25Each Cboe BOE or FIX Logical Port incur the 

logical port fee indicated when used to enter up to 

70,000 orders per trading day per logical port as 

measured on average in a single month. For each 

incremental usage of up to 70,000 per day per 

logical port will incur an additional logical port fee 

of $800 per month. See Cboe’s Fees Schedule. 

26BOX assesses tiered FIX Port Fees as follows: 

$500 per port per month for the first FIX Port, $250 

per port per month for FIX Ports 2–5 and $150 per 

port per month for over 5 FIX Ports. BOX assesses 

$1,000 per month for all SAIL Ports for Market 

Making and $500 per month per port up to 5 ports 

for order entry and $150 per month for each 

additional port. See BOX’s Fee Schedule. 

27MIAX tiers its FIX Port fees as follows: $550 

per month for the 1st FIX Port, $350 per month per 

port for the FIX Ports 2 through 5 and $150 per 

month for over 5 FIX Ports. MIAX tiers its MEI Port 

Fees and assesses fees per number of classes and 

as a percentage of National Average Daily Volume. 

MEI Port fees range from $5,000 to $20,500 per 

month. The applicable fee rate is the lesser of either 

the per class basis or percentage of total national 

average daily volume measurement. However, if the 

Market Maker’s total monthly executed volume 

during the relevant month is less than 0.060% of 

the total monthly executed volume reported by The 

Options Clearing Corporation in the market maker 

account type for MIAX-listed option classes for that 

month, then the fee will be $14,500 instead of the 

fee otherwise applicable. MIAX will assess monthly 

MEI Port Fees on Market Makers in each month the 

Member has been credentialed to use the MEI Port 

in the production environment and has been 

assigned to quote in at least one class. See MIAX’s 

Fee Schedule. 

28MEI Port Fees include MEI Ports at the Primary, 

Secondary and Disaster Recovery data centers. 

MIAX Market Makers may request additional 

Limited Service MEI Ports for which MIAX will 

assess MIAX Market Makers $100 per month per 

additional Limited Service MEI Port for each 

engine. See MIAX’s Fee Schedule. 

29NYSE Arca assesses a tiered order/quote entry 

port fee of $450 for the first 40 ports and $150 per 

port per month for the 41 ports or greater. For 

purpose of calculating the number of order/quote 

entry ports and quote takedown ports, NYSE Arca 

aggregates the ports of affiliates. See NYSE Arca 

Options Fees and Charges. 

30Any quote takedown port utilized by a NYSE 

Arca Market Maker that is in excess of the number 

of order/quote entry ports utilized will be counted 

and charged as an order/quote entry port. See NYSE 

Arca Options Fees and Charges. 

additional OTTO Ports, however BX 

Participants only require one order 

entry port to submit orders to BX. The 

Exchange is offering Participants one 

free OTTO Port. Participants that 

subscribe to FIX could utilize their FIX 

Port to submit orders and would not 

need to utilize an OTTO Port. As noted 

herein, all BX Participants would be 

subject to the same fees for OTTO Ports. 

Also, as noted herein, account numbers 

are available on BX at no cost. 

Unlike ISE, GEMX and MRX, BX only 

offers its Participants a FIX Port to 

submit orders to BX. As noted herein, 

the proposed OTTO Port Fee for 

additional ports is comparable to GEMX 

and MRX, which markets assess an 

OTTO Port Fee of $650 per port, per 

month, per account number.22 GEMX 

and MRX do not offer the first OTTO 

Port at no cost, however MRX offers the 

first FIX Port at no cost.23 Cboe offers 

more than one order entry port. Cboe 

port fees 24 are within the range of the 

proposed fees. Cboe does not offer a free 

order entry port and tiers its BOE and 

FIX Logical ports so that each 

subsequent port fee is higher than BX’s 

port fees. Additionally, Cboe limits 

usage on each port and assesses fees for 

incremental usage 25 thereby increasing 

the expense for ports if the usage is 

exceeded and potentially requiring 

market participants to acquire 

additional ports to avoid additional 

costs. BOX port fees 26 are within the 

range of the proposed fees. While BOX 

does not offer an order entry port at no 

cost, it tiers its FIX and SAIL port fees 

and each subsequent port fee is lower. 

MIAX port fees 27 are within the range 

of the proposed fees. MIAX Port users 

are allocated two (2) Full Service MEI 

Ports and two (2) Limited Service MEI 

Ports per matching engine to which they 

connect.28 NYSE Arca port fees 29 are 

within the range of the proposed fees. 

For each order/quote entry port utilized, 

NYSE Arca Market Makers may utilize, 

free of charge, one port dedicated to 

quote cancellation or ‘‘quote takedown,’’ 

which port(s) will not be included in 

the count of order/quote entry ports 

utilized.30

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

The OTTO protocol is a proprietary 

protocol of Nasdaq, Inc. The Exchange 

continues to innovate and modernize 

technology so that it may continue to 

compete among options markets. The 

ability to continue to innovate with 

technology and offer new products to 

market participants allows BX to remain 

competitive in the options space which 

currently has seventeen options markets 

and potential new entrants. If BX were 

unable to offer and price new protocols, 

it would result in an undue burden on 

competition as BX would not have the 

ability to innovate and modernize its 

technology to compete effectively in the 

options space. BX’s ability to offer 

OTTO will enable it to compete with 

other options markets that provide its 

market participants a choice as to the 

type of order entry protocols that may 

be utilized. BX’s ability to offer and 

price new and innovative products and 

continue to modernize its technology, 

similar to other options markets, 

supports intermarket competition. 

OTTO Protocol 

The Exchange’s proposal to adopt an 

OTTO Protocol does not impose an 

undue burden on intramarket 

competition. Today, all BX Participants 

utilize FIX to send orders to BX. The 

Exchange would offer each BX 

Participant the first OTTO Port at no 

cost with this proposal. With the 

addition of OTTO Ports, a BX 

Participant may elect to enter their 

orders through FIX, OTTO, or both 

protocols, although both protocols are 

not necessary. The Exchange’s proposal 

to adopt an OTTO Protocol does not 

impose an undue burden on intermarket 

competition as other options exchanges 

offer multiple protocols today such as 

ISE, GEMX and MRX. 

Other Amendments 

The Exchange’s proposal to amend 

other rules within Options 3 to make 

clear where the FIX and OTTO 

protocols may be utilized does not 

impose an undue burden on intramarket 

competition as these rules will apply in 

the same manner to all Participants. The 

Exchange’s proposal to amend other 

rules within Options 3 to make clear 

where the FIX and OTTO protocols may 

be utilized does not impose an undue 

burden on intermarket competition as 

other options exchanges may elect to 

utilize their order entry protocols in 

different ways. 

Pricing 

Nothing in the proposal burdens 

intermarket competition because BX’s 

proposal to offer the first OTTO Port for 

free permits BX to set fees, similar to 

other options markets, while continuing 

to allow BX Participants to meet their 

regulatory obligations. BX’s proposal 

would permit BX Participants the ability 

to submit orders to BX at no cost 

through OTTO. Additional OTTO Ports 

are not required for BX Participants to 

meet their regulatory obligations. The 

proposed port fees are similar to port 

fees assessed by other options markets 

as noted in this proposal. Further, the 

Exchange does not believe that the 

proposed rule change would place 

certain market participants at the 

Exchange at a relative disadvantage 

compared to other market participants 

or affect the ability of such market 

participants to compete. The Exchange 

notes that while the manner in which an 

order is sent to the Exchange may have 

an impact on latency, the difference 


ddrumheller on DSK120RN23PROD with NOTICES1
15250 Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 

31Cboe offers BOE Bulk Logical Ports. See Cboe’s 

Fee Schedule. See Securities Exchange Act Release 

No. 90333 (November 4, 2020), 85 FR 71666 

(November 10, 2020) (SR–CBOE–2020–105). Cboe 

amended access and connectivity fees, including 

port fees. Specifically, Cboe adopted certain logical 

ports to allow for the delivery and/or receipt of 

trading messages—i.e., orders, accepts, cancels, 

transactions, etc. Cboe established tiered pricing for 

BOE/FIX Logical Ports, with the lowest tier starting 

at $750 per port, per month for 1 to 5 ports, and 

for BOE Bulk Logical Ports with separate tiered 

pricing starting at $1,5000 per port, per month for 

1 to 5 ports. Cboe also established flat prices for 

DROP, Purge Ports, GRP Ports and Multicast 

PITCH/Top Spin Server Ports. 

32See Securities Exchange Act Release No. 90333 

(November 4, 2020), 85 FR 71666 (November 10, 

2020) (SR–CBOE–2020–105). 

33 Id. at 71676. 

34 Id. at 71677. 

35See Securities Exchange Act Release No. 86901 

(September 9, 2019), 84 FR 48458 (September 13, 

2019) (File No. S7–13–19). 

36 Id. 

37 Id. 

38 Id. 

39 Id. at 71679. 

40 Id. at 71680. 

from a latency standpoint would be in 

nanoseconds, and it would depend on 

the manner in which the order is being 

sent to the Exchange. A market 

participant sending 30 sequential orders 

through an OTTO Port may experience 

a slight latency of certain nanoseconds 

(less than a few nanoseconds) to permit 

serialized processing in the port and the 

match engine per order in certain cases. 

This is compared to a BX participant 

who submits 30 orders through multiple 

OTTO Ports at the same time. This 

distinction exists today on other options 

exchanges that offer market participants 

the ability to submit order flow in 

bulk,31 which results in a larger number 

of orders being sent to the exchange’s 

match engine in a quicker timeframe as 

compared to market participants that 

utilize a port that does not support bulk 

orders. Also, as noted herein, OTTO 

Orders do not route and therefore have 

a lower latency as compared to orders 

sent via a FIX Port. The Exchange notes 

that other factors may also contribute to 

the time it takes for an order to be 

executed. For example, on an exchange 

that offers complex orders, such orders 

with a stock component, may take 

additional time to execute as compared 

to a market order. In short, while 

latency may play a very small factor in 

the quantity of ports that are being 

utilized to send an order to the 

Exchange, all market participants may 

elect how their order is sent to an 

exchange. The Exchange notes that there 

is no correlation between the number of 

orders executed on the Exchange by a 

Participant and the number of ports 

subscribed to by a Participant. There are 

Participants that subscribe to a larger 

number of ports that have lower 

executed volumes on BX than those 

with half of the number of ports. Also, 

not all ports subscribed to by a 

Participant are active. Further, all 

Participants are entitled to obtain 

additional OTTO Ports or a mix of 

OTTO and FIX Ports. The Exchange is 

providing each Participant the first 

OTTO Port at no cost. To the extent 

Participants elect to utilize different 

technologies and connections to the 

Exchange, including different numbers 

and combinations of ports, the Exchange 

believes that the combinations may 

result in varying latencies as is the case 

on all other options exchanges today. 

Nothing in the proposal burdens 

intra-market competition because the 

Exchange would uniformly assess the 

OTTO Port fees to all BX Participants, 

as applicable. Further, other exchanges 

have increased or added port fees in 

recent years. As recently as 2020, Cboe 

amended its port fees.32 Specifically, 

Cboe adopted certain logical ports to 

allow for the delivery and/or receipt of 

trading messages—i.e., orders, accepts, 

cancels, transactions, etc. Cboe 

established tiered pricing for BOE and 

FIX logical ports, tiered pricing for BOE 

Bulk ports, and flat prices for DROP, 

Purge Ports, GRP Ports and Multicast 

PITCH/Top Spin Server Ports. Cboe 

argued in its fee proposal that the 

proposed pricing more closely aligned 

its access fees to those of its affiliated 

exchanges, and reasonably so, as the 

affiliated exchanges offer substantially 

similar connectivity and functionality 

and are on the same platform that Cboe 

migrated to as part of its migration. Cboe 

also justified its pricing by stating that, 

‘‘. . . the Exchange believes 

substitutable products and services are 

in fact available to market participants, 

including, among other things, other 

options exchanges a market participant 

may connect to in lieu of the Exchange, 

indirect connectivity to the Exchange 

via a third-party reseller of connectivity 

and/or trading of any options product, 

including proprietary products, in the 

Over-the-Counter (OTC) markets.’’ 33

Cboe stated in its proposal that, 

The rule structure for options exchanges 

are also fundamentally different from those 

of equities exchanges. In particular, options 

market participants are not forced to connect 

to (and purchase market data from) all 

options exchanges. For example, there are 

many order types that are available in the 

equities markets that are not utilized in the 

options markets, which relate to mid-point 

pricing and pegged pricing which require 

connection to the SIPs and each of the 

equities exchanges in order to properly 

execute those orders in compliance with best 

execution obligations. Additionally, in the 

options markets, the linkage routing and 

trade through protection are handled by the 

exchanges, not by the individual members. 

Thus not connecting to an options exchange 

or disconnecting from an options exchange 

does not potentially subject a broker-dealer to 

violate order protection requirements. Gone 

are the days when the retail brokerage firms 

(such as Fidelity, Schwab, and eTrade) were 

members of the options exchanges—they are 

not members of the Exchange or its affiliates, 

they do not purchase connectivity to the 

Exchange, and they do not purchase market 

data from the Exchange. Accordingly, not 

only is there not an actual regulatory 

requirement to connect to every options 

exchange, the Exchange believes there is also 

no ‘‘de facto’’ or practical requirement as 

well, as further evidenced by the recent 

significant reduction in the number of 

broker-dealers that are members of all 

options exchanges.34

The proposal also referenced the 

National Market System Plan Governing 

the Consolidated Audit Trail (‘‘CAT 

NMS Plan’’),35 wherein the Commission 

discussed the existence of competition 

in the marketplace generally, and 

particularly for exchanges with unique 

business models. The Commission 

acknowledged that, even if an exchange 

were to exit the marketplace due to its 

proposed fee-related change, it would 

not significantly impact competition in 

the market for exchange trading services 

because these markets are served by 

multiple competitors.36 Further, the 

Commission explicitly stated that 

‘‘[c]onsequently, demand for these 

services in the event of the exit of a 

competitor is likely to be swiftly met by 

existing competitors.’’ 37 Finally, the 

Commission recognized that while some 

exchanges may have a unique business 

model that is not currently offered by 

competitors, a competitor could create 

similar business models if demand were 

adequate, and if a competitor did not do 

so, the Commission believes it would be 

likely that new entrants would do so if 

the exchange with that unique business 

model was otherwise profitable.38 Cboe 

concluded that the Exchange is subject 

to significant substitution-based 

competitive forces in pricing its 

connectivity and access fees.39 Cboe 

stressed that the proof of competitive 

constraints does not depend on showing 

that members walked away, or 

threatened to walk away, from a product 

due to a pricing change. Rather, the very 

absence of such negative feedback (in 

and of itself, and particularly when 

coupled with positive feedback) is 

indicative that the proposed fees are, in 

fact, reasonable and consistent with the 

Exchange being subject to competitive 

forces in setting fees.40


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 15251 

41See Securities Exchange Act No. 

96824(February 7, 2023), 88 FR 8975 (February 10, 

2023) (SR–MRX–2023–05) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

To Amend MRX Options 7, Section 6). 

42See notes 30 and 39 above. 

43 15 U.S.C. 78s(b)(3)(A)(iii). 

44 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. 45 17 CFR 200.30–3(a)(12). 

MRX recently filed to establish port 

fees.41 In SR–MRX–2023–05, MRX 

proposed to assess no fee for the first 

FIX Port obtained by an MRX Member 

and established fees for additional FIX 

Ports of $650 per port, per month for 

each subsequent port beyond the first 

port. MRX noted in SR–MRX–2023–05 

that: 

Only MRX Members may utilize ports on 

MRX. Any market participant that sends 

orders to a Member would not need to utilize 

a port. The Member can send all orders, 

proprietary and agency, through one port to 

MRX. Members may elect to obtain multiple 

account numbers to organize their business, 

however only one account number and one 

port for orders and one port for quotes is 

necessary for a Member to trade on MRX. All 

other ports offered by MRX are not required 

for an MRX Member to meet its regulatory 

obligations. 

MRX also established fees for OTTO 

Ports, which ports are identical to the 

ports being offered on BX, and priced 

them the same as the proposed OTTO 

fees for BX. MRX assesses an OTTO Port 

Fee of $650 per port, per month, per 

account number but does not offer the 

first OTTO Port at no cost because it 

was offering one FIX Port at no cost for 

order entry. 

If the Commission were to apply a 

different standard of review to this 

proposal than it applied to other 

exchange fee filings, such as the Cboe or 

MRX fee filings,42 it would create a 

burden on competition such that it 

would impair BX’s ability to innovate 

new products, modernize its 

technology, and compete with other 

options markets. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

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 43 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.44

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

BX–2024–006 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–BX–2024–006. 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–BX–2024–006 and should be 

submitted on or before March 22, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.45

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–04295 Filed 2–29–24; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice: 12340] 

Notice of Meeting of the President’s 

Advisory Council on African Diaspora 

Engagement 

ACTION: Notice of Federal advisory 

committee meeting. 

SUMMARY: Pursuant to the Federal 

Advisory Committee Act, the 

Department of State hereby provides 

notice of the next meeting of the 

President’s Advisory Council on African 

Diaspora Engagement (‘‘the Advisory 

Council’’). 

DATES: Monday, March 18, 2024. 

ADDRESSES: This event will take place 

in-person in Atlanta, Georgia. 

FOR FURTHER INFORMATION CONTACT: For 

additional information and for those 

interested in participating, please 

contact Mr. Matthew Becker, Senior 

Foreign Affairs Officer in the Office of 

the Assistant Secretary, Bureau of 

African Affairs, U.S. Department of 

State by email at BeckerMA@state.gov or 

by phone at (202) 647–1790. 

SUPPLEMENTARY INFORMATION: Pursuant 

to the Federal Advisory Committee Act, 

5 U.S.C. 1001 et seq., and 41 CFR 102– 

3.65, the Advisory Council will host a 

public plenary session meeting. The 

primary mission of the Advisory 

Council is to provide counsel to the 

President on enhancing the connections 

between the United States Government 

and the African diaspora within the 


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