Federal Register / Vol. 89, No. 196 / Wednesday, October 9, 2024 / Notices 81969 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 100303 

(June 10, 2024), 89 FR 50640 (June 14, 2024) (SR– 

CboeEDGA–2024–017). 4 15 U.S.C. 78f(b). 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

J. Matthew DeLesDernier, 

Deputy Secretary. 

[FR Doc. 2024–23375 Filed 10–8–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101241; File No. SR– 

CboeEDGA–2024–038] 

Self-Regulatory Organizations; Cboe 

EDGA Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Extend the 

Implementation Date of Functionality 

That Will Provide Members and 

Clearing Members With the Option To 

Utilize Additional Credit Risk Settings 

Under Interpretation and Policy .03 of 

Rule 11.10 (‘‘Aggregate Credit Risk 

Checks’’) 

October 3, 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 

September 26, 2024, Cboe EDGA 

Exchange, Inc. (the ‘‘Exchange’’ or 

‘‘EDGA’’) filed with the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

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 EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGA’’) proposes to 

extend the implementation date of 

functionality that will provide Members 

and Clearing Members with the option 

to utilize additional credit risk settings 

under Interpretation and Policy .03 or 

Rule 11.10 (‘‘Aggregate Credit Risk 

Checks’’). 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

equities/regulation/rule_filings/edga/), 

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 is filing this proposal to 

extend the implementation date of 

functionality providing Members and 

Clearing Members with the option to 

utilize additional Aggregate Credit Risk 

Checks. The functionality relating to 

these additional risk settings was 

submitted by the Exchange on an 

immediately effective basis on May 29, 

2024.3

The Aggregate Credit Risk Checks 

offered under Interpretation and Policy 

.03 or Rule 11.10, provide Members and 

Clearing Members with additional, 

optional credit risk settings, at the 

Market Participant Identifier (‘‘MPID’’) 

level and/or to a subset of orders 

identified within the MPID level (the 

‘‘risk group identifier’’ level) that 

authorizes the Exchange to take 

automated action if a designated limit 

for a Member is breached. These risk 

settings will provide Members and 

Clearing Members with enhanced 

abilities to manage their risk with 

respect to orders on the Exchange. 

Specifically, the Exchange intends to 

offer two aggregate credit risk settings as 

follows: 

• The ‘‘Aggregate Gross Credit 

Exposure Limit’’, which refers to a preestablished maximum daily dollar 

amount for purchases and sales across 

all symbols, where both purchases and 

sales are counted as positive values. For 

purposes of calculating the Aggregate 

Gross Credit Exposure Limit, both 

executed and open orders are included; 

and 

• The ‘‘Aggregate Net Credit Exposure 

Limit’’, which refers to a pre-established 

maximum daily dollar amount for 

purchases and sales across all symbols, 

where purchases are counted as positive 

values and sales are counted as negative 

values. For purposes of calculating the 

Aggregate Net Credit Exposure Limit, 

both executed and open orders are 

included. 

The Exchange initially proposed to 

implement the Aggregate Credit Risk 

Checks by October 31, 2024. While this 

date is not included in the relevant rule 

text codifying the Aggregate Credit Risk 

Checks, the Exchange separately notates 

in its rulebook when it plans to 

implement new functionality that was 

either immediately effective upon rule 

filing, or approved by the SEC. 

Estimated implementation dates are 

sometimes necessary so because 

implementing new functionality 

sometimes requires additional time to 

develop, test, and deploy, and such 

timeline may not always coincide with 

the statutory rule filing process. As 

such, the Exchange provides estimated 

implementation dates to make Members 

aware that certain rule text is subject to 

amendment post implementation of the 

new functionality, as well as to provide 

Members with sufficient notice so that 

they can make any necessary 

technological or operational 

adjustments to their systems (if 

applicable). However, more time is 

needed to design, test, and implement 

the Aggregate Credit Risk Checks. 

Accordingly, the Exchange proposes to 

implement the Aggregate Credit Risk 

Checks on or after November 22, 2024. 

The Exchange would issue a Trade Desk 

Notice announcing the exact 

implementation date to Users. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’), in general, and furthers the 

objectives of Section 6(b) of the Act 4 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. The 

Exchange’s proposal to delay the 

implementation of Aggregate Credit Risk 

Checks to on or after November 22, 

2024, is consistent with the Act and 

protection of investors and general 

public because it will permit the 

Exchange additional time to ensure the 

Exchange can properly develop, test, 

and deploy the Aggregate Credit Risk 

Checks. Moreover, the Aggregate Credit 

Risk Checks themselves were previously 


khammond on DSKJM1Z7X2PROD with NOTICES
81970 Federal Register / Vol. 89, No. 196 / Wednesday, October 9, 2024 / Notices 

5Supra note 3. 

6 15 U.S.C. 78s(b)(3)(A)(iii). 

7 17 CFR 240.19b–4(f)(6). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change, along with a brief 

description and text of 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. 

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6)(iii). 

12 For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

13 15 U.S.C. 78s(b)(2)(B). 14 17 CFR 200.30–3(a)(12), (59). 

approved [sic] by the Commission,5 and 

this proposal does not change the 

substance of those functionalities. As 

noted, the Exchange would issue a 

Trade Desk Notice announcing the exact 

implementation date to members and 

member organizations. 

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. As noted 

above, the purpose of this proposal is 

simply to extend the implementation 

date for the additional aggregate credit 

risk settings so that the Exchange has 

additional time for development, 

testing, and deployment. 

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 Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 6 and Rule 

19b–4(f)(6) thereunder.7 Because the 

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 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 8 and Rule 19b–4(f)(6)(iii) 

thereunder.9

A proposed rule change filed under 

Rule 19b–4(f)(6) 10 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),11 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange states that more 

time is required to ensure optimal 

design, testing, and implementation for 

the Aggregate Credit Risk Checks, and 

thus, waiver of the operative delay will 

provide Exchange with such additional 

time. As such, the Commission believes 

that waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because it would ensure that the 

Exchange has extra time to properly 

deploy these new aggregate credit risk 

functionalities, which is to the benefit of 

market participants that will eventually 

utilize the Aggregate Credit Risk Checks. 

Accordingly, the Commission hereby 

waives the 30-day operative delay and 

designates the proposal operative upon 

filing.12

At any time within 60 days of the 

filing of this 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 

under Section 19(b)(2)(B) 13 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– 

CboeEDGA–2024–038 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–CboeEDGA–2024–038. 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–CboeEDGA–2024–038, and should 

be submitted on or before October 30, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–23288 Filed 10–8–24; 8:45 am] 

BILLING CODE 8011–01–P 


khammond on DSKJM1Z7X2PROD with NOTICES