34806 Federal Register / Vol. 86, No. 123 / Wednesday, June 30, 2021 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release Nos. 91804 

(May 10, 2021), 86 FR 26583 (May 14, 2021) (SR– 

CboeBYX–2021–012); 91801 (May 10, 2021), 86 FR 

26594 (May 14, 2021) (SR–CboeBZX–2021–035); 

91802 (May 10, 2021), 86 FR 26574 (May 14, 2021) 

(SR–CboeEDGA–2021–011) (‘‘CboeEDGA Notice’’); 

91803 (May 10, 2021), 86 FR 26558 (May 14, 2021) 

(SR–CboeEDGX–2021–025) (‘‘CboeEDGX Notice’’) 

(collectively, ‘‘Notices’’). The proposed rule 

changes are nearly identical. 

4 In the Amendments No. 1, the Exchanges: (i) 

Added additional justification for the proposed rule 

changes, stating that the proposed re-opening 

process would provide certainty as to how orders 

will be handled across Tape A, B, and C securities 

and promote consistency with the re-opening 

process used by the Exchanges in other 

circumstances; (ii) stated that allowing one second 

to elapse prior to initiating the mid-point reopening would ensure sufficient time for the 

midpoint to accurately reflect the market; and (iii) 

made technical and conforming edits. Because the 

Amendments No. 1 do not materially alter the 

substance of the proposed rule changes and make 

conforming and technical changes, the 

Amendments No. 1 are not subject to notice and 

comment. The Amendments No. 1 are available on 

the Commission’s website at: https://www.sec.gov/ 

comments/sr-cboebyx-2021-012/srcboebyx2021012- 

8931890-245403.pdf; https://www.sec.gov/ 

comments/sr-cboebzx-2021-035/srcboebzx2021035- 

8931888-245385.pdf; https://www.sec.gov/ 

comments/sr-cboeedga-2021-011/ 

srcboeedga2021011-8931893-245388.pdf; and 

https://www.sec.gov/comments/sr-cboeedgx-2021- 

025/srcboeedgx2021025-8931886-245402.pdf. 

5Outside of regular trading hours, the Exchanges 

operate certain extra-hours sessions. See CboeBYX 

Rules 1.5(c), (r), and (ee); CboeBZX Rules 1.5(c), (r), 

and (ee); CboeEDGA Rules 1.5(r), (s), and (ii); 

CboeEDGX Rules 1.5(r), (s), and (ii). 

6The Exchanges state that Tape B securities are 

those listed on exchanges other than NYSE and 

Nasdaq and Tape C securities are those listed on 

Nasdaq. See Notices, supra note 3. 

7See CboeBYX Rule 11.23(d); CboeBZX Rule 

11.24(d); CboeEDGA Rule 11.7(d); CboeEDGX Rule 

11.7(d). 

8See CboeBYX Rule 11.23(e)(3); CboeBZX Rule 

11.24(e)(3); CboeEDGA Rule 11.7(e)(3); CboeEDGX 

Rule 11.7(e)(3). 

9See CboeBYX Rule 11.23(e)(1); CboeBZX Rule 

11.24(e)(1); CboeEDGA Rule 11.7(e)(1); CboeEDGX 

Rule 11.7(e)(1). 

10See proposed rules CboeBYX Rule 

11.23(e)(1)(C); CboeBZX Rule 11.24(e)(1)(C); 

CboeEDGA Rule 11.7(e)(1)(C); CboeEDGX Rule 

11.7(e)(1)(C). 

11See proposed rules CboeBYX Rule 

11.23(e)(1)(C); CboeBZX Rule 11.24(e)(1)(C); 

CboeEDGA Rule 11.7(e)(1)(C); CboeEDGX Rule 

11.7(e)(1)(C). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92257; File Nos. SR– 

CboeBYX–2021–012, SR–CboeBZX–2021– 

035, SRCboeEDGA–2021–011, SR– 

CboeEDGX–2021–025] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Cboe BZX 

Exchange, Inc.; Cboe EDGA Exchange, 

Inc.; Cboe EDGX Exchange, Inc.; Order 

Granting Approval of Proposed Rule 

Changes, as Modified by Amendments 

No. 1, Relating to the Exchanges’ 

Process for Re-Opening Securities 

Listed on Other National Securities 

Exchanges Following the Resumption 

of Trading After a Halt, Suspension, or 

Pause Outside of Regular Trading 

Hours 

June 24, 2021. 

I. Introduction 

On April 26, 2021, Cboe BYX 

Exchange, Inc. (‘‘CboeBYX’’), Cboe BZX 

Exchange, Inc. (‘‘CboeBZX’’), Cboe 

EDGA Exchange, Inc. (‘‘CboeEDGA’’) 

and Cboe EDGX Exchange, Inc. 

(‘‘CboeEDGX,’’ and collectively, the 

‘‘Exchanges’’) 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 proposed rule changes to 

amend each Exchange’s process for reopening trading of securities listed on 

other national securities exchanges 

outside of regular trading hours. The 

proposed rule changes were published 

for comment in the Federal Register on 

May 14, 2021.3 On June 21, 2021, the 

Exchanges each filed an Amendment 

No. 1 to their respective proposed rule 

changes (‘‘Amendments No. 1’’).4 The 

Commission received no comments on 

the proposed rule changes. This order 

approves the proposed rule changes, as 

modified by Amendments No. 1. 

II. Description of the Proposed Rule 

Changes, as Modified by Amendments 

No. 1 

The Exchanges have proposed to 

harmonize the manner by which they 

re-open trading in a security listed on 

other national securities exchanges if 

the trading halt, suspension or pause in 

that security is lifted during one of the 

Exchanges’ extra-hours sessions.5 The 

Exchanges’ respective processes for the 

re-opening of trading in securities listed 

on other national security exchanges 

under such circumstances vary 

depending on whether the securities are 

listed on the New York Stock Exchange 

LLC (‘‘NYSE’’) (‘‘Tape A’’), or are listed 

on exchanges other than NYSE (‘‘Tape 

B’’ and ‘‘Tape C’’).6 Specifically, Tape A 

securities that resume trading after a 

halt, suspension, or pause during an 

extra-hours trading session will be 

automatically re-opened pursuant each 

of the Exchanges’ contingent opening 

procedures, as described in each of the 

Exchanges’ rules,7 after one second has 

passed following an Exchange’s receipt 

of the first NBBO following such 

resumption of trading.8 As a result, 

when the Exchanges re-open Tape A 

securities during their respective extrahours sessions today, orders are handled 

in time sequence and placed on each 

Exchange’s book, routed, cancelled, or 

executed in accordance with the terms 

of the order. 

With respect to Tape B and C 

securities, the Exchanges’ rules 9

provide that the re-opening process 

following the resumption of trading 

after a trading halt, suspension, or pause 

during each of the Exchanges’ extrahours sessions will occur at the 

midpoint of the: (i) First NBBO 

subsequent to the first reported trade 

and first two-sided quotation on the 

listing exchange following the 

resumption of trading after a halt, 

suspension, or pause; or (ii) NBBO 

when the first two-sided quotation is 

published by the listing exchange 

following the resumption of trading 

after a halt, suspension, or pause if no 

first trade is reported by the listing 

exchange within one second of 

publication of the first two-sided 

quotation by the listing exchange. 

The Exchanges have proposed to 

harmonize the different processes for reopening Tape A, and Tape B and C 

securities during the extra-hours 

sessions by: (1) Amending the 

Exchanges’ automated re-opening 

processes for Tape A securities to 

provide for the execution of orders at 

the midpoint of the NBBO; and (2) 

eliminating unnecessary differences 

between the process utilized for Tape A 

securities and the process used for Tape 

B and C securities. Thus, as proposed, 

each of the Exchanges’ relevant rules 10

would provide that during extra-hours 

sessions, the re-opening process for 

Tape A securities will occur at the 

midpoint of the NBBO after one second 

has passed following the Exchange’s 

receipt of the first NBBO following the 

resumption of trading after a halt, 

suspension, or pause. In addition, the 

Exchanges propose to amend their 

respective processes for re-opening Tape 

B and C securities to mirror their 

proposed processes for Tape A 

securities, except that the Exchanges 

would require the primary listing 

market to have begun quoting a security 

before it initiates its own re-opening 

process. As amended, each of the 

Exchanges’ rules 11 would provide that, 

during extra-hours trading sessions, the 

re-opening process for Tape B and C 

securities will occur at the midpoint of 

the NBBO after one second has passed 

following the publication of the first 

two-sided quotation by the listing 

exchange following the resumption of 

trading after a halt, suspension, or 

pause. The Exchanges have stated that, 

to simplify the re-opening during these 

timeframes, the Exchanges are not 


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Federal Register / Vol. 86, No. 123 / Wednesday, June 30, 2021 / Notices 34807 

12 In addition to these proposed changes to the 

reopening process, the Exchanges also proposed 

other technical and non-substantive changes to 

their rules in order to facilitate the substantive 

changes explained above. See Notices, supra note 

3. CboeEDGA and CboeEDGX also proposed nonsubstantive changes to conform CboeEDGA Rule 

11.7 and CboeEDGX 11.7 to CboeBZX Rule 11.24. 

See CboeEDGA Notice and CboeEDGX Notice, 

supra note 3. 

13 15 U.S.C. 78f. In approving these proposed rule 

changes, the Commission has considered the 

proposed rule changes’ impact on efficiency, 

competition, and capital formation. See 15 U.S.C. 

78c(f). 

14 15 U.S.C. 78f(b)(5). 

15See Notices, supra note 3, and Amendments 

No. 1, supra note 4. 

16See Amendments No. 1, supra note 4. 

17 15 U.S.C. 78s(b)(2). 

18 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). 

4 17 CFR 240.19b–4(f)(4). 

5Capitalized terms not defined herein are defined 

in the Rules, By-Laws and Organization Certificate 

of DTC (‘‘Rules’’) available at http://www.dtcc.com/ 

∼/media/Files/Downloads/legal/rules/dtc_rules.pdf. 

6Available at https://www.dtcc.com/legal/rulesand-procedures. The Settlement Guide constitutes 

Procedures of DTC relating to its Settlement 

services. Pursuant to the Rules, the term 

‘‘Procedures’’ means the Procedures, service guides, 

and regulations of DTC adopted pursuant to Rule 

27, as amended from time to time. See Rule 1, 

Section 1, infra note 7. DTC’s Procedures are filed 

with the Commission. They are binding on DTC and 

each Participant in the same manner as they are 

bound by the Rules. See Rule 27, infra note 7. 

7Available at https://www.dtcc.com/legal/rulesand-procedures. Pursuant to Rule 2, Section 3, an 

entity that uses DTC’s Pledge services must enter 

into an agreement with DTC satisfactory to DTC. 

See Rule 2, Section 3, supra note 5. In this regard, 

DTC requires a Pledgee that is not a Participant to 

sign a Pledgee’s Agreement. Participants enter into 

a Participant’s Agreement that binds them to the 

Rules and Procedures (including, but not limited to, 

those related to Pledge activity), and are not 

required by DTC to enter into a separate Pledgee’s 

Agreement. See also Rule 2, Section 1, supra note 

5 (providing terms of the Participant’s Agreement). 

proposing to retain a separate trigger 

that would allow the re-opening process 

to be initiated immediately when the 

Exchanges receive both a two-sided 

quotation and a trade from the listing 

exchange.12

III. Discussion and Commission’s 

Findings 

The Commission has carefully 

reviewed the proposed rule changes, as 

modified by Amendments No. 1, and 

finds that they are consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange, in 

particular, the requirements of Section 

6(b) of the Act and the rules and 

regulations thereunder.13 Specifically, 

the Commission finds that the 

proposals, as modified by Amendments 

No. 1, are consistent with Section 

6(b)(5) of the Act,14 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to prevent fraudulent and 

manipulative acts and practices, 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. 

As described above, the Exchanges 

seek to harmonize their respective 

processes for re-opening trading in a 

security when a trading halt, 

suspension, or pause in that security is 

lifted and trading in that security 

resumes outside regular trading hours. 

In the Exchanges’ view, applying their 

midpoint re-opening procedures in 

these circumstances, regardless of 

whether a security is a Tape A, B, or C 

security, would: (1) Provide greater 

consistency with the process currently 

used by the each of the Exchanges in 

other circumstances, (2) provide greater 

certainty as to how orders will be 

handled across security types, and (3) 

potentially provide executions that 

better reflect the applicable market for 

the security.15 The Exchanges have 

stated that the proposal to not retain a 

separate trigger whereby the reopening 

process for Tape B and C securities 

would be initiated immediately when 

the Exchange receives both a two-sided 

quotation and a trade from the listing 

exchange would harmonize the 

reopening process with that for Tape A 

securities, simplify the re-opening 

process to be followed during these 

timeframes, and ensure that sufficient 

time is provided for the midpoint to 

accurately reflect the market in those 

securities.16

The Commission believes that the 

proposals are reasonably designed to 

facilitate a more orderly and efficient reopening process following the 

resumption of trading after a trading 

halt, suspension, or pause during each 

of the Exchanges’ extra-hours sessions. 

By providing a more consistent and 

harmonized approach to each of the 

Exchanges’ re-opening procedures, the 

proposals should promote greater 

certainty, reduce the likelihood of 

confusion, and facilitate the resumption 

of orderly trading under such 

circumstances. 

Therefore, the Commission finds that 

the proposals, as modified by 

Amendments No. 1, are consistent with 

the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,17 that the 

proposed rule changes (SR–CboeBYX– 

2021–012, SR–CboeBZX–2021–035, SR– 

CboeEDGA–2021–011, and SR– 

CboeEDGX–2021–025), as modified by 

Amendments No. 1, be, and hereby are, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–13917 Filed 6–29–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92249; File No. SR–DTC– 

2021–005] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing of and Immediate Effectiveness 

of Proposed Rule Change To Modify 

the DTC Settlement Service Guide and 

the Form of DTC Pledgee’s Agreement 

June 24, 2021. 

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 June 15, 

2021, The Depository Trust Company 

(‘‘DTC’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 

in Items I, II and III below, which Items 

have been prepared primarily by the 

clearing agency. DTC filed the proposed 

rule change pursuant to Section 

19(b)(3)(A) of the Act 3 and Rule 19b– 

4(f)(4) thereunder.4 The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change 5 would 

modify the DTC Settlement Service 

Guide (‘‘Settlement Guide’’) 6 and the 

form of DTC Pledgee’s Agreement 

(‘‘Pledgee’s Agreement’’),7 as described 

below. Specifically, the proposed rule 

change would revise text in the 


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