Document ID: SEC-2022-0979-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: MIAX PEARL, LLC
Posted Date: 2022-07-22T04:00Z

[Federal Register Volume 87, Number 140 (Friday, July 22, 2022)]
[Notices]
[Pages 43910-43911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15662]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95310; File No. SR-PEARL-2022-27]

Self-Regulatory Organizations: MIAX PEARL, LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange 
Rule 2613, Usage of Data Feeds

July 18, 2022.
    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 July 7, 2022, MIAX PEARL, LLC (``MIAX Pearl'' 
or the ``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') a 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Exchange Rule 2613(a), Usage of Data 
Feeds, to disclose that the Exchange will utilize direct data feeds 
from MEMX LLC (``MEMX'') when performing order handling, order 
execution, routing, and related compliance processes for equity 
securities.
    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
    Exchange Rule 2613 identifies the data feeds that the Exchange 
utilizes for the handling, execution, and routing of orders in equity 
securities on the Exchange's equity trading platform (``MIAX Pearl 
Equities''), as well as for surveillance necessary to monitor 
compliance with applicable securities laws and Exchange Rules. The 
Exchange currently utilizes MEMX market data from the Consolidated 
Quotation System (``CQS'')/UTP Quotation Data Feed (``UQDF'') for these 
purposes on MIAX Pearl Equities. The Exchange intends to begin to 
utilize MEMX's direct feeds in place of market data from the CQS/UQDF. 
Therefore, the Exchange proposes to amend Exchange Rule 2613(a) to 
reflect that the Exchange will utilize MEMX's direct feeds in place of 
market data from the CQS/UQDF when performing order handling, order 
execution, routing, and related compliance processes for equity 
securities on MIAX Pearl Equities. The Exchange does not currently 
utilize a secondary source for data from MEMX. Once it begins to 
utilize direct feeds for data from MEMX, the Exchange will also begin 
to utilize CQS/UQDF as a secondary source of data from MEMX on MIAX 
Pearl Equities.
Implementation
    Due to the technological changes associated with this proposed 
change, the Exchange will issue a trading alert publicly announcing the 
implementation date of this proposed rule change. The Exchange 
anticipates that the implementation date will be in either the third or 
fourth quarter of 2022.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\3\ in general, and furthers the objectives of Section 6(b)(5),\4\ 
in particular, because 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 regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in

[[Page 43911]]

general, to protect investors and the public interest.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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    The proposal to update Exchange Rule 2613(a) to reflect that the 
Exchange will utilize MEMX's direct feeds in place of market data from 
the CQS/UQDF on MIAX Pearl Equities will continue to provide market 
participants with insight and transparency into which data feeds the 
Exchange utilizes when performing order handling, order execution, 
routing, and related compliance processes for equity securities. The 
Exchange's proposal to utilize MEMX's direct feeds promotes just and 
equitable principles of trade because it will allow the Exchange to 
receive market data directly from MEMX, thereby potentially enhancing 
the performance of its order handling, order execution, routing, and 
related compliance processes for equity securities. The proposed rule 
changes also remove impediments to and perfects the mechanism of a free 
and open market and protects investors and the public interest because 
it will continue to ensure that Exchange Rule 2613(a) accurately 
reflects the Exchange's sources of market data it utilizes for each 
other equities exchange and the Financial Industry Regulatory 
Authority, Inc.'s Alternative Display Facility.

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. To the contrary, the 
Exchange believes the proposal would enhance competition by enhancing 
transparency and enabling market participants to better assess the 
quality of MIAX Pearl Equities' execution and routing services by 
continuing to provide market participants with insight and transparency 
into which data feeds the Exchange utilizes when performing order 
handling, order execution, routing, and related compliance processes 
for equity securities. The Exchange also believes the proposal would 
enhance competition because it will potentially enhance the performance 
of its order handling and execution of orders in equity securities by 
receiving market data directly from MEMX. Lastly, the proposed rule 
change will not impact competition between market participants because 
it will affect all market participants equally.

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

    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 after the date of the filing, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to 19(b)(3)(A) of the Act \5\ and Rule 19b-4(f)(6) \6\ 
thereunder.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its 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.
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    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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-PEARL-2022-27 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-2022-27. 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 the 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-2022-27 and should be submitted on 
or before August 12, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-15662 Filed 7-21-22; 8:45 am]
BILLING CODE 8011-01-P