Document ID: SEC-2023-0335-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: MIAX PEARL, LLC
Posted Date: 2023-03-24T04:00Z

[Federal Register Volume 88, Number 57 (Friday, March 24, 2023)]
[Notices]
[Pages 17882-17886]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-06056]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97168; File No. SR-PEARL-2023-13]

Self-Regulatory Organizations: Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by MIAX PEARL, LLC To Amend the 
MIAX Pearl Options Fee Schedule

March 20, 2023.
    Pursuant to the provisions of 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 March 9, 2023, MIAX PEARL, LLC (``MIAX Pearl'' 
or ``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to amend the MIAX Pearl Options 
Fee Schedule (the ``Fee Schedule'').
    The text of the proposed rule change is available on the Exchange's 
website at http://www.miaxoptions.com/rule-filings/pearl at MIAX 
Pearl's principal office, 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 purpose of the proposed rule change is to amend Section 1)a) 
Exchange Rebates/Fees--Add/Remove

[[Page 17883]]

Tiered Rebates/Fees of the Exchange's Fee Schedule to adopt an 
additional alternative volume criteria for the Tier 2 rebates/fees for 
MIAX Pearl Market Makers. The Exchange originally filed this proposal 
on March 1, 2023 (SR-PEARL-2023-12). On March 9, 2023, the Exchange 
withdrew SR-PEARL-2023-12 and resubmitted this proposal.
Background
    The Exchange currently assesses transaction rebates and fees to all 
market participants which are based upon the total monthly volume 
executed by the Member \3\ on MIAX Pearl in the relevant, respective 
origin type (not including Excluded Contracts) \4\ (as the numerator) 
expressed as a percentage of (divided by) TCV \5\ (as the denominator). 
In addition, the per contract transaction rebates and fees are applied 
retroactively to all eligible volume for that origin type once the 
respective threshold tier (``Tier'') has been reached by the Member. 
The Exchange aggregates the volume of Members and their Affiliates.\6\ 
Members that place resting liquidity, i.e., orders resting on the book 
of the MIAX Pearl System,\7\ are paid the specified ``maker'' rebate 
(each a ``Maker''), and Members that execute against resting liquidity 
are assessed the specified ``taker'' fee (each a ``Taker''). For 
opening transactions and ABBO \8\ uncrossing transactions, per contract 
transaction rebates and fees are waived for all market participants. 
Finally, Members are assessed lower transaction fees and receive lower 
rebates for order executions in standard option classes in the Penny 
Interval Program \9\ (``Penny Classes'') than for order executions in 
standard option classes which are not in the Penny Interval Program 
(``Non-Penny Classes''), where Members are assessed higher transaction 
fees and receive higher rebates.
---------------------------------------------------------------------------

    \3\ ``Member'' means an individual or organization that is 
registered with the Exchange pursuant to Chapter II of Exchange 
Rules for purposes of trading on the Exchange as an ``Electronic 
Exchange Member'' or ``Market Maker.'' Members are deemed 
``members'' under the Exchange Act. See the Definitions Section of 
the Fee Schedule and Exchange Rule 100.
    \4\ ``Excluded Contracts'' means any contracts routed to an away 
market for execution. See the Definitions Section of the Fee 
Schedule.
    \5\ ``TCV'' means total consolidated volume calculated as the 
total national volume in those classes listed on MIAX PEARL for the 
month for which the fees apply, excluding consolidated volume 
executed during the period time in which the Exchange experiences an 
``Exchange System Disruption'' (solely in the option classes of the 
affected Matching Engine (as defined below)). The term Exchange 
System Disruption, which is defined in the Definitions section of 
the Fee Schedule, means an outage of a Matching Engine or collective 
Matching Engines for a period of two consecutive hours or more, 
during trading hours. The term Matching Engine, which is also 
defined in the Definitions section of the Fee Schedule, is a part of 
the MIAX PEARL electronic system that processes options orders and 
trades on a symbol-by-symbol basis. Some Matching Engines will 
process option classes with multiple root symbols, and other 
Matching Engines may be dedicated to one single option root symbol 
(for example, options on SPY may be processed by one single Matching 
Engine that is dedicated only to SPY). A particular root symbol may 
only be assigned to a single designated Matching Engine. A 
particular root symbol may not be assigned to multiple Matching 
Engines. The Exchange believes that it is reasonable and appropriate 
to select two consecutive hours as the amount of time necessary to 
constitute an Exchange System Disruption, as two hours equates to 
approximately 1.4% of available trading time per month. The Exchange 
notes that the term ``Exchange System Disruption'' and its meaning 
have no applicability outside of the Fee Schedule, as it is used 
solely for purposes of calculating volume for the threshold tiers in 
the Fee Schedule. See the Definitions Section of the Fee Schedule.
    \6\ ``Affiliate'' means (i) an affiliate of a Member of at least 
75% common ownership between the firms as reflected on each firm's 
Form BD, Schedule A, or (ii) the Appointed Market Maker of an 
Appointed EEM (or, conversely, the Appointed EEM of an Appointed 
Market Maker). An ``Appointed Market Maker'' is a MIAX PEARL Market 
Maker (who does not otherwise have a corporate affiliation based 
upon common ownership with an EEM) that has been appointed by an EEM 
and an ``Appointed EEM'' is an EEM (who does not otherwise have a 
corporate affiliation based upon common ownership with a MIAX PEARL 
Market Maker) that has been appointed by a MIAX PEARL Market Maker, 
pursuant to the following process. A MIAX PEARL Market Maker 
appoints an EEM and an EEM appoints a MIAX PEARL Market Maker, for 
the purposes of the Fee Schedule, by each completing and sending an 
executed Volume Aggregation Request Form by email to 
[email protected] no later than 2 business days prior to 
the first business day of the month in which the designation is to 
become effective. Transmittal of a validly completed and executed 
form to the Exchange along with the Exchange's acknowledgement of 
the effective designation to each of the Market Maker and EEM will 
be viewed as acceptance of the appointment. The Exchange will only 
recognize one designation per Member. A Member may make a 
designation not more than once every 12 months (from the date of its 
most recent designation), which designation shall remain in effect 
unless or until the Exchange receives written notice submitted 2 
business days prior to the first business day of the month from 
either Member indicating that the appointment has been terminated. 
Designations will become operative on the first business day of the 
effective month and may not be terminated prior to the end of the 
month. Execution data and reports will be provided to both parties. 
See the Definitions Section of the Fee Schedule.
    \7\ The term ``System'' means the automated trading system used 
by the Exchange for the trading of securities. See Exchange Rule 
100.
    \8\ ``ABBO'' means the best bid(s) or offer(s) disseminated by 
other Eligible Exchanges (defined in Exchange Rule 1400(g)) and 
calculated by the Exchange based on market information received by 
the Exchange from OPRA. See the Definitions Section of the Fee 
Schedule and Exchange Rule 100.
    \9\ See Securities Exchange Act Release No. 88992 (June 2, 
2020), 85 FR 35142 (June 8, 2020) (SR-PEARL-2020-06).
---------------------------------------------------------------------------

Alternative Volume Criteria Threshold Change in Tier 2
    The Exchange proposes to amend the Add/Remove Tiered Rebates/Fees 
table set forth in Section 1)a) of the Fee Schedule for MIAX Pearl 
Market Maker origins, to adopt a new alternative Volume Criteria in 
Tier 2. Currently, the volume criteria for Pearl Market Makers to 
qualify for Tier 2 fees/rebates is above 0.20% to 0.50%. The Exchange 
currently provides an alternative volume criteria in Tier 2 which is 
based upon the total monthly volume executed by a MIAX Pearl Market 
Maker collectively in SPY/QQQ/IWM options on the Exchange, expressed as 
a percentage of total consolidated national volume in SPY/QQQ/IWM 
options.\10\ Pursuant to this alternative volume criteria, a Market 
Maker is able to reach the Tier 2 threshold if the Market Maker's total 
executed monthly volume, not including Excluded Contracts, in SPY/QQQ/
IWM options on MIAX Pearl is above 0.55% of total consolidated national 
monthly volume in SPY/QQQ/IWM options. For this calculation, volume 
that is from resting liquidity (Maker) and taking liquidity (Taker) in 
SPY/QQQ/IWM options is counted towards the alternative volume criteria, 
and the 0.55% threshold does not have to be reached individually in 
each of the three symbols. A Market Maker is able to qualify for Tier 2 
rebates and fees, which will then be applicable to all volume executed 
by the MIAX Pearl Market Maker on MIAX Pearl. Therefore, the two 
different volume criteria available for Tier 2 are based upon either: 
(a) the total monthly volume executed by the Market Maker in all 
options classes on MIAX Pearl, not including Excluded Contracts, (as 
the numerator), expressed as a percentage of (divided by) TCV (as the 
denominator); or (b) the total monthly volume executed by the MIAX 
Pearl Market Maker collectively in SPY/QQQ/IWM options on MIAX Pearl, 
not including Excluded Contracts, (as the numerator), expressed as a 
percentage of (divided by) SPY/QQQ/IWM TCV \11\ (as

[[Page 17884]]

the denominator). Once either volume criteria threshold in Tier 2 is 
reached by the Market Maker, the Tier 2 per contract rebates and fees 
apply to all volume in all options classes executed by that MIAX Pearl 
Market Maker on MIAX Pearl.
---------------------------------------------------------------------------

    \10\ See Fee Schedule, Section 1)a), explanatory paragraph below 
the tables and footnotes. See also Securities Exchange Act Release 
Nos. 84592 (November 14, 2018), 83 FR 58646 (November 20, 2018) (SR-
PEARL-2018-23); 90906 (January 21, 2021), 86 FR 5296 (January 19, 
2021) (SR-PEARL-2020-38).
    \11\ ``SPY/QQQ/IWM TCV'' means total consolidated volume in SPY, 
QQQ, and IWM calculated as the total national volume in SPY, QQQ, 
and IWM for the month for which the fees apply, excluding 
consolidated volume executed during the period of time in which the 
Exchange experiences an Exchange System Disruption (solely in SPY, 
QQQ, or IWM options). See the Definitions Section of the Fee 
Schedule.
---------------------------------------------------------------------------

    The Exchange now proposes to adopt an additional alternative volume 
criteria in Tier 2 to introduce cross-asset volume based requirements 
that require MIAX Pearl Market Makers to satisfy the requirements of 
Tier 2 of the ``Add Volume Tiers'' table in the MIAX Pearl Equities fee 
schedule,\12\ and also the requirements of Tier 2 of the ``Midpoint Peg 
Order Adding Liquidity at the Midpoint Volume Tiers'' table in the MIAX 
Pearl Equities fee schedule.\13\ A Midpoint Peg Order \14\ on the MIAX 
Pearl Equities Exchange is a non-displayed limit order that is assigned 
a working price pegged to the midpoint of the PBBO.\15\
---------------------------------------------------------------------------

    \12\ See MIAX Pearl Equities Fee Schedule, Section 1)c) Add 
Volume Tiers table, on its public website (available online at 
https://www.miaxoptions.com/fees/pearl-equities).
    \13\ See MIAX Pearl Equities Fee Schedule, Section 1)e) Midpoint 
Peg Order Adding Liquidity at Midpoint Volume Tiers table, on its 
public website (available online at https://www.miaxoptions.com/fees/pearl-equities).
    \14\ See Exchange Rule 2614(a)(3).
    \15\ With respect to the trading of equity securities, the term 
``Protected NBB'' or ``PBB'' shall mean the national best bid that 
is a Protected Quotation, the term ``Protected NBO'' or ``PBO'' 
shall mean the national best offer that is a Protected Quotation, 
and the term ``Protected NBBO'' or ``PBBO'' shall mean the national 
best bid and offer that is a Protected Quotation. See Exchange Rule 
1901.
---------------------------------------------------------------------------

    With the proposed change, the three different volume criteria 
available for Tier 2 are based upon either: (i) the total monthly 
volume executed by the Market Maker in all options classes on MIAX 
Pearl, not including Excluded Contracts, (as the numerator), expressed 
as a percentage of (divided by) TCV (as the denominator); or (ii) the 
total monthly volume executed by the MIAX Pearl Market Maker 
collectively in SPY/QQQ/IWM options on MIAX Pearl, not including 
Excluded Contracts, (as the numerator), expressed as a percentage of 
(divided by) SPY/QQQ/IWM TCV (as the denominator); or (iii) if the 
Market Maker is in Tier 2 of the Add Volume Tiers table by having an 
ADAV \16\ greater than or equal to 0.10% of Total Consolidated Volume 
on the MIAX Pearl Equities Exchange; and is also in Tier 2 of the 
Midpoint Peg Order \17\ Adding Liquidity at Midpoint Volume Tier table 
by having a Midpoint ADAV greater than or equal to 1,000,000 shares on 
the MIAX Pearl Equities Exchange. Once any one of the aforementioned 
three volume criteria threshold in Tier 2 is reached by the Market 
Maker, the Tier 2 per contract rebates and fees apply to all volume in 
all options classes executed by that MIAX Pearl Market Maker.
---------------------------------------------------------------------------

    \16\ ``ADAV'' means average daily added volume calculated as the 
number of shares added per day and ``ADV'' means average daily 
volume calculated as the number of shares added or removed, 
combined, per day. ADAV and ADV are calculated on a monthly basis. 
See Definitions, in the MIAX Pearl Equities Fee Schedule, on its 
public website (available online at https://www.miaxoptions.com/fees/pearl-equities).
    \17\ A Midpoint Peg Order is a non-displayed Limit Order that is 
assigned a working price pegged to the midpoint of the PBBO. A 
Midpoint Peg Order receives a new timestamp each time its working 
price changes in response to changes in the midpoint of the PBBO. 
See Exchange Rule 2614(a)(3).
---------------------------------------------------------------------------

    The purpose of this proposed change is for business and competitive 
reasons. At least one other exchange with both options and equities 
trading platforms offers a similar cross-asset volume criteria in a 
similar tier based structure.\18\ The Exchange's proposal adds a third 
volume criteria that Market Makers may satisfy in order to achieve Tier 
2 fees/rebates, i.e., satisfying each of the cross-asset volume 
criteria requirements for that month. The Exchange believes that with 
the proposed change, the Exchange will attract additional equities 
order flow from Market Makers, which should benefit all Exchange 
participants by providing more trading opportunities and tighter 
spreads. The Exchange cannot predict with certainty how many Market 
Makers will satisfy the alternative volume criteria in Tier 2.
---------------------------------------------------------------------------

    \18\ See NYSE Arca Options Fee schedule, Market Maker Penny and 
SPY Posting Credit Tiers, Super Tier II, which provides a credit of 
$0.42 when a Firm has at least 0.10% of TCADV from Market Maker 
posted interest in all issues, plus ETP Holder and Market Maker 
posted volume in Tape B Securities (``Tape B Adding ADV'') that is 
equal to at least 1.50% of US Tape B consolidated average daily 
volume (``CADV'') for the billing month executed on NYSE Arca Equity 
Market, available at https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf.
---------------------------------------------------------------------------

Implementation
    The proposed changes are immediately effective.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is consistent with Section 6(b) of the Act \19\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act,\20\ in that it 
is an equitable allocation of reasonable dues, fees and other charges 
among Exchange members and issuers and other persons using its 
facilities, and 6(b)(5) of the Act,\21\ in that it is designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, to remove impediments to and perfect the mechanisms of a 
free and open market and a national market system and, in general, to 
protect investors and the public interest.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78f(b).
    \20\ 15 U.S.C. 78f(b)(4).
    \21\ 15 U.S.C. 78f(b)(1) and (b)(5).
---------------------------------------------------------------------------

    The Commission has repeatedly expressed its preference for 
competition over regulatory intervention in determining prices, 
products, and services in the securities markets. In Regulation NMS, 
the Commission highlighted the importance of market forces in 
determining prices and SRO revenues and, also, recognized that current 
regulation of the market system ``has been remarkably successful in 
promoting market competition in its broader forms that are most 
important to investors and listed companies.'' \22\
---------------------------------------------------------------------------

    \22\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496 (June 29, 2005).
---------------------------------------------------------------------------

    There are currently 16 registered options exchanges competing for 
order flow. Based on publicly-available information, and excluding 
index-based options, as of February 23, 2023, no single exchange has 
more than approximately 12-13% equity options market share for the 
month of February 2023.\23\ Therefore, no exchange possesses 
significant pricing power. More specifically, as of February 23, 2023, 
the Exchange had a market share of approximately 6.83% of executed 
volume of multiply-listed equity options for the month of February 
2023.\24\
---------------------------------------------------------------------------

    \23\ See MIAX's ``The market at a glance/MTD AVERAGE,'' 
available at https://www.miaxoptions.com/ (Data as of 2/1/2023-2/23/
2023).
    \24\ See id.
---------------------------------------------------------------------------

    The Exchange believes that the ever-shifting market share among the 
exchanges from month to month demonstrates that market participants can 
discontinue or reduce use of certain categories of products and 
services, terminate an existing membership or determine to not become a 
new member, and/or shift order flow, in response to transaction fee 
changes. For example, on February 28, 2019, the Exchange filed with the 
Commission a proposal to increase Taker fees in certain Tiers for 
options transactions in certain Penny classes for Priority Customers 
and decrease Maker rebates in certain Tiers for options transactions in 
Penny classes for Priority Customers (which fee was to

[[Page 17885]]

be effective March 1, 2019).\25\ The Exchange experienced a decrease in 
total market share for the month of March 2019, after the proposal went 
into effect. Accordingly, the Exchange believes that its March 1, 2019, 
fee change, to increase certain transaction fees and decrease certain 
transaction rebates, may have contributed to the decrease in MIAX 
Pearl's market share and, as such, the Exchange believes competitive 
forces constrain the Exchange's, and other options exchanges, ability 
to set transaction fees and market participants can shift order flow 
based on fee changes instituted by the exchanges.
---------------------------------------------------------------------------

    \25\ See Securities Exchange Act Release No. 85304 (March 13, 
2019), 84 FR 10144 (March 19, 2019) (SR-PEARL-2019-07).
---------------------------------------------------------------------------

    The Exchange believes that its proposal represents an equitable 
allocation of fees and is not unfairly discriminatory because it 
applies uniformly to all Market Makers, in that all Market Makers have 
the opportunity to compete for and achieve the proposed alternative 
volume criteria of Tier 2, and the Tier 2 fees/rebates will apply 
uniformly to all Market Makers that achieve Tier 2. While the Exchange 
has no way of knowing whether this proposed rule change would 
definitively result in any particular Market Maker achieving the 
alternative volume criteria, the proposed alternative volume criteria 
is available for any Market Maker. To the extent a Member participates 
on the Exchange but not on MIAX Pearl Equities, the Exchange believes 
that the proposal is still reasonable, equitably allocated and non-
discriminatory with respect to such Member based on the overall benefit 
to the Exchange resulting from the success of its equities platform. 
Particularly, the Exchange believes that additional such success allows 
the Exchange to continue to provide and potentially expand its existing 
incentive programs to the benefit of all participants on the Exchange, 
whether they participate on MIAX Pearl Equities or not. Additionally, a 
Market Maker that is not a Member of MIAX Pearl Equities may still 
satisfy the current primary volume criteria or the current alternative 
volume criteria, which aren't changing under this proposal, to be 
eligible for Tier 2 fees/rebates.
    Additionally, the Exchange believes its proposal represents a 
reasonable attempt to incentivize market participants to increase the 
number and variety of orders sent to the Exchange for execution. 
Specifically, the Exchange proposes to introduce two new volume-based 
requirements that require MIAX Pearl Market Makers to satisfy Tier 2 
criteria on the MIAX Pearl Equities Exchange for Add Volume and 
Midpoint Peg Order Adding Liquidity at Midpoint Volume. The Exchange 
believes that the new alternative volume criteria will continue to 
incentivize participation in greater volume from cross-asset activity, 
which would improve the overall quality of the Exchange's marketplace 
to the benefit of all market participants, both on the MIAX Pearl 
Options Exchange and the MIAX Pearl Equities Exchange.
    The Exchange also believes that its new proposed qualifications for 
the Tier 2 alternative volume criteria for MIAX Pearl Market Makers is 
equitable and not unfairly discriminatory because the Exchange will 
uniformly assess the rebates and fees for any Market Makers qualifying 
for Tier 2. Finally, encouraging Market Makers to add greater liquidity 
benefits all market participants, both on the MIAX Pearl Options 
Exchange, and the MIAX Pearl Equities Exchange, in the quality of order 
interaction.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act.
    The Exchange does not believe that its proposal will impose any 
burden on intra-market competition as the Exchange believes that its 
proposal will not place any market participant at a competitive 
disadvantage as Market Makers may satisfy any of the volume criteria 
requirements to be eligible for the Tier 2 fees/rebates. The Exchange 
believes that the proposed change should continue to encourage the 
provision of liquidity in options that enhances the quality of the 
Exchange's market and increases the number of trading opportunities on 
the Exchange for all participants who will be able to compete for such 
opportunities. Additionally, as discussed, the proposed changes are 
ultimately aimed at attracting greater order flow to the Exchange, 
which benefits all market participants by providing more trading 
opportunities.
    The Exchange does not believe that its proposal will impose any 
burden on inter-market competition and the Exchange notes that it 
operates in a highly competitive market in which market participants 
can readily favor competing venues if they deem fee levels at a 
particular venue to be excessive, or rebate opportunities available at 
other venues to be more favorable.
    There are currently 16 registered options exchanges competing for 
order flow. Based on publicly-available information, and excluding 
index-based options, no single exchange has more than approximately 12-
13% of the market share of executed volume of multiply-listed equity 
and ETF options trades as of February 23, 2023, for the month of 
February 2023.\26\ Therefore, no exchange possesses significant pricing 
power in the execution of multiply-listed equity and ETF options order 
flow. More specifically, as of February 23, 2023, the Exchange had a 
market share of approximately 6.83% of executed volume of multiply-
listed equity and ETF options for the month of February 2023.\27\ In 
such an environment, the Exchange must continually adjust its fees and 
tiers to remain competitive with other options exchanges. Because 
competitors are free to modify their own fees and Tiers in response, 
and because market participants may readily adjust their order routing 
practices, the Exchange believes that the degree to which fee changes 
in this market may impose any burden on competition is extremely 
limited. The Exchange believes that the proposed rule changes reflect 
this competitive environment because they modify the Exchange's fees 
and Tiers in a manner that encourages market participants to continue 
to provide liquidity and to send order flow to the Exchange.
---------------------------------------------------------------------------

    \26\ See supra note 23.
    \27\ See id.
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act,\28\ and Rule 19b-4(f)(2) \29\ thereunder. 
At any time within 60 days of the filing of the proposed rule change, 
the Commission summarily may temporarily suspend such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act. If the Commission

[[Page 17886]]

takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.
---------------------------------------------------------------------------

    \28\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \29\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-PEARL-2023-13 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-PEARL-2023-13. 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 (http://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 10:00 a.m. and 
3:00 p.m. Copies of such filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-PEARL-2023-13 and should be submitted on 
or before April 14, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\30\
---------------------------------------------------------------------------

    \30\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-06056 Filed 3-23-23; 8:45 am]
BILLING CODE 8011-01-P