Document ID: SEC-2021-1712-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: MIAX Emerald, LLC
Posted Date: 2021-12-07T05:00Z

[Federal Register Volume 86, Number 232 (Tuesday, December 7, 2021)]
[Notices]
[Pages 69301-69306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26451]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93698; File No. SR-EMERALD-2021-38]

Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of 
Filing of Proposed Rule Change To Amend Exchange Rule 531 To Provide 
for a New Service Called the ``High Precision Network Time Signal 
Service''

December 1, 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 November 19, 2021, MIAX Emerald, LLC (``MIAX Emerald'' or 
``Exchange'') 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 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 531 to provide for the 
new service called the ``High Precision Network Time Signal Service''.
    The text of the proposed rule change is available on the Exchange's 
website at http://www.miaxoptions.com/rule-filings/emerald, at MIAX 
Emerald'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 Exchange provides a resilient and robust technology platform,

[[Page 69302]]

deterministic functionality, transparent trading platform, and a 
culture of technological innovation to the U.S. options market. In 
keeping with its culture of innovation, the Exchange proposes to amend 
Exchange Rule 531, Reports and Market Data Products, to provide for the 
new service called the ``High Precision Network Time Signal Service'' 
(hereinafter referred to as ``HPNTSS'' or the ``Service'').\3\ The 
Service is an optional product \4\ available to Members.\5\ In sum, 
Members would be able to utilize the proposed Service to synchronize 
their systems to the Exchange's Global Positioning Satellite (``GPS'') 
clock \6\ at sub-nanosecond level accuracy for correlated latency 
measurements between the Exchange's and the Member systems' time 
measurements related to the same message or order. Time synchronization 
services are well established in the U.S. and utilized in many areas of 
the U.S. economy and infrastructure. The proposed Service is not novel 
to the securities markets and it is similar to other network time 
synchronization services currently available to U.S. registered broker-
dealers by two U.S. exchange groups \7\ and a service currently offered 
by at least two foreign securities exchanges.\8\
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    \3\ The Exchange also proposes to amend the title of Exchange 
Rule 531 to include the phrase ``and Services'' so the title would 
read as ``Reports, Market Data Products, and Services.''
    \4\ The Exchange intends to submit a separate filing with the 
Commission pursuant to Section 19(b)(1) to propose fees for the 
Service.
    \5\ The term ``Member'' means an individual or organization 
approved to exercise the trading rights associated with a Trading 
Permit. Members are deemed ``members'' under the Exchange Act. See 
Exchange Rule 100.
    \6\ For a description of the GPS clock, see Official U.S. 
Government Information About the Global Positioning System (GPS) and 
Related Topic, available at https://www.gps.gov/applications/timing/ 
(providing that ``[i]n addition to longitude, latitude, and 
altitude, the Global Positioning System (GPS) provides a critical 
fourth dimension--time. Each GPS satellite contains multiple atomic 
clocks that contribute very precise time data to the GPS signals. 
GPS receivers decode these signals, effectively synchronizing each 
receiver to the atomic clocks. This enables users to determine the 
time to within 100 billionths of a second, without the cost of 
owning and operating atomic clocks.'').
    \7\ ICE Data Services offers a variety of timing solutions in 
its colocation centers, allowing market participants to effectively 
timestamp their order flow by synching their primary clock devices 
to the primary clock devices in ICE Data Services' network. See ICE 
Global Network Timing Services, available at Timing Services 
[verbar] ICE (theice.com) (last visited November 9, 2021). A similar 
service is also offered by Nasdaq in its colocation centers. See 
NIST Enables Precision Time-stamping of Financial Transactions, by 
the National Institute of Standards and Technology, U.S. Department 
of Commerce, available at https://www.nist.gov/news-events/news/2014/12/nist-enables-precision-time-stamping-financial-transactions 
(last visited November 9, 2021), https://www.tradersmagazine.com/departments/technology/nasdaq-launches-ultra-high-precision-time-stamping/ (last visited November 9, 2021), and https://www.gpsworld.com/nasdaq-offers-precision-time-service-for-trading/ 
(last visited November 9, 2021).
    \8\ A similar service is currently offered by Deutche B[ouml]rse 
Group and Nasdaq. See a description of Deutsche B[ouml]rse Group's 
Time Services, available at https://www.deutsche-boerse.com/dbg-en/products-services/ps-technology/ps-connectivity-services/ps-connectivity-services-time-services (last visited September 29, 
2021), and a description of Nasdaq Nordic PTP Services, available at 
https://www.nasdaq.com/docs/nasdaq-nordic-ptp-services-fs.pdf (last 
visited November 9, 2021)/. See also slides 28-39 of ``Precise 
Timing in Financial Markets'', by Deutche B[ouml]rse Group, 
available at White Rabbit in Financial Markets (stanford.edu) (last 
visited October 4, 2021). See also slides 11-13 of ``Wall Street 
Clock'', by Seven Solutions, available at White Rabbit 
synchronization use cases (atis.org) (last visited October 4, 2021).
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    GPS network time is the benchmark by which most, if not all, 
Members use to synchronize their internal primary clock devices. Using 
the time signals publicly available through the GPS network is a de 
facto standard for high precision time synchronization across 
geographically diverse locations. Typically, a GPS antenna serves as a 
time signal receiver and feeds a primary clock device the Coordinated 
Universal Time (referred to as ``UTC'') using Precision Time Protocol 
(``PTP'').\9\ Coordinated Universal Time is the primary time standard 
by which the world regulates clocks and time.\10\
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    \9\ The term ``Coordinated Universal Time'' is defined as the 
``international standard of time that is kept by atomic clocks 
around the world.'' See Merriam-Webster Dictionary, available at 
https://www.merriam-webster.com/dictionary/Coordinated%20Universal%20Time (last visited November 10, 2021).
    \10\ See https://www.timeanddate.com/time/aboututc.html (last 
visited October 5, 2021).
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    Today, the Exchange understands many Members attempt to sync their 
primary clock devices to the GPS clock. By getting the GPS signal 
through a GPS capable antenna, Members can synchronize their primary 
clock device to the GPS network time to within an accuracy of 
approximately 30 nanoseconds. From there, by using a PTP time 
synchronization protocol, Members can synchronize their internal 
devices to their primary clock devices. Through this method, the 
Members' internal devices can be synchronized to within a few 
billionths of a second (nanoseconds) of one another. This is the same 
method the Exchange uses today to synchronize its primary clock device 
to the GPS network time, i.e., the Exchange gets the GPS signal through 
a GPS capable antenna. By using this method, however, measurement times 
of market events may oscillate by approximately 30 or more nanoseconds 
between the Member and an exchange.\11\ This may, in turn, lead to 
incorrect latency measurements that may adversely affect a Member's 
time calculations in determining how long it took for their order or 
message to leave their systems and reach the trading center to which it 
was sent.
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    \11\ See slide 11-13 of ``Wall Street Clock'', by Seven 
Solutions, available at White Rabbit synchronization use cases 
(atis.org) (last visited October 4, 2021). See also How Accurate is 
GPS for Timing, available at GPS.gov: GPS Accuracy (last visited 
November 11, 2021) (providing that ``GPS time transfer is a common 
method for synchronizing clocks and networks to Coordinated 
Universal Time (UTC). The government distributes UTC as maintained 
by the U.S. Naval Observatory (USNO) via the GPS signal in space 
with a time transfer accuracy relative to UTC (USNO) of <=30 
nanoseconds (billionths of a second), 95% of the time. This 
performance standard assumes the use of a specialized time transfer 
receiver at a fixed location.'').
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    As stated above, time synchronization services are well established 
in the U.S. and utilized in many areas of the U.S. economy and 
infrastructure. The proposed Service simply provides time 
synchronization signals to align the subscribing Member's clock to the 
Exchange's clock at the more acute nanosecond level. This will allow 
Members to timestamp messages or orders within their infrastructure and 
leverage various Exchange clock provided timestamp information to 
provide more precise network telemetry information to assess the health 
and efficiency of their network. The proposed Service would enable 
Members to more accurately synchronize their primary clock devices and/
or timestamping devices to the Exchange's primary clock devices at the 
more accurate, sub-nanosecond level. The Exchange's primary clock 
currently feeds a time signal to the Exchange's timestamping devices 
and provides sub-nanosecond level synchronization using an enhanced PTP 
(``Enhanced PTP''). This sub-nanosecond time signal is used to 
synchronize the Exchange's network packet/order/message capture 
devices. Some Members may also currently utilize Enhanced PTP with 
their primary clock devices that feed their own timestamping devices at 
a sub-nanosecond level. However, despite the Exchange and some Members 
utilizing separate Enhanced PTP devices, the timestamps between the 
Exchange and those Members may still oscillate up to 30 nanoseconds due 
to GPS time precision limitations. Under the proposed Service, Members 
would be able to synchronize their own primary clock devices to the 
Exchange's primary clock device, by receiving time signals from the 
Exchange, at a sub-nanosecond level, reducing or eliminating the 
potential for those timestamps to differ. The sub-nanosecond time 
signal would

[[Page 69303]]

simply tell the Member the Exchange's time at a sub-nanosecond level at 
a particular point in time. Members may, in turn, use this time signal 
to calculate the time an order or message traveled between their 
network and that of the Exchange at a more granular sub-nanosecond 
level.
    The Service would operate as follows. As stated above, some Members 
may currently utilize Enhanced PTP with their primary clock devices 
that feed their own timestamping devices at a sub-nanosecond level. A 
Member may utilize these existing compatible clock synchronization 
device or install one within their network. This device is not provided 
by the Exchange and would need to be built by the Member or acquired 
from a third party. This device would be synchronized, via the HPNTSS, 
to the Exchange's primary clock device, and ultimately provide to them 
the Exchange's single view of the GPS clock time, at a sub-nanosecond 
level, at a particular point in time. The Member's clock 
synchronization device would then be used to synchronize the clocks 
within the Member's computer and network infrastructure, as 
appropriate. This enables the Member to record certain times an order 
or message traveled through and leaves the Member's system at a sub-
nanosecond level. The Exchange's computer and network infrastructure, 
synchronized via the HPNTSS device(s) records the times the order or 
message reached certain points within the Exchange's network/systems.
    Members may use the proposed Service for numerous purposes. The 
proposed Service would allow Members to better understand the times at 
which their order or message reached certain points when traveling from 
their network to the Exchange allowing them to better understand the 
latency of their orders and messages when traveling between their 
network and that of the Exchange. The proposed Service will provide 
greater visibility into the latency between their network and the 
Exchange, which will allow Members to optimize their network, models, 
and trading patterns to potentially improve the timeliness of their 
interactions with the Exchange.
    The Exchange believes the Service will provide Members with an 
opportunity to learn more about better opportunities to access 
liquidity and receive better execution rates. However, the utility of 
the proposed Service is not limited to evaluating the timeliness of 
Members' orders and may be used for other purposes, including, but not 
limited to the following use cases discussed below. Members may use the 
proposed Service to analyze the efficiency of their network and 
connections when not only routing orders to the Exchange, but also when 
receiving messages back from the Exchange. These messages include 
communications regarding whether their order was accepted, rejected, or 
executed. Therefore, Members may measure message traversal times by 
comparing their message (e.g., order, quote, cancellation, etc.) 
timestamp to the Exchange's matching engine timestamp on 
acknowledgement messages (e.g., order acknowledgment, quote 
acknowledgment, cancellation acknowledgment, etc.). Members may also 
measure the time it takes for any message to be received by the 
Exchange's matching engine. Members may also measure the traversal 
times by comparing their message timestamp to the matching engine 
timestamp on the Exchange's proprietary market data feed messages and 
measure the time it takes for any message to be published to the 
Exchange's proprietary market data feeds by the Exchange's matching 
engine. Members may then use this information to further enhance their 
own systems to receive such communications in a timelier manner to 
verify that their systems are working as intended. Members may also use 
the Service for other purposes, such as determining compliance with 
certain regulatory requirements \12\ and trading surveillance. Members 
may also utilize time synchronization to assist them in evaluating 
compliance with certain clock synchronization requirements.\13\
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    \12\ See, e.g., Chapter III of the Exchange's Rules, which 
incorporates by reference Rule 301, Interpretation and Policy .02 
(Just and Equitable Principles of Trade), of Miami International 
Securities Exchange, LLC (``MIAX''); and Financial Industry 
Regulatory Authority, Inc. (``FINRA'') Rule 5320.
    \13\ See Chapter XVII of the Exchange's Rules, which 
incorporates by reference MIAX Rule 1707 (Consolidated Audit Trail 
Compliance Rule--Clock Synchronization Rule Violation); and FINRA 
Rule 6820.
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    Specifically, the Service would be described under proposed 
Exchange Rule 531(c), which would provide that:

    HPNTSS is an enhanced Precision Time Protocol (``PTP'') 
Ethernet-based service for synchronizing device clocks to within 
sub-nanosecond accuracy of one another. HPNTSS enables Members to 
synchronize their internal devices to the same time as the Exchange 
devices with high precision. Tightly synchronized clocks enable the 
ability to correlate event timestamps from within their own systems 
to those within the Exchange's network. For example, HPNTSS allows 
Members to precision timestamp a quote sent from their system to the 
very same quote timestamped by the Exchange and accurately measure 
the time delta between the timestamps to less than one nanosecond.

    The proposed rule text includes an example related to comparing a 
quote timestamps at a sub-nanosecond level. However, this example is 
included for illustrative purposes only and is one of may use cases in 
which the proposed Service may be used by Members. Additional examples 
of use cases are described above.
    The Exchange proposes to provide the Service in response to Member 
demand for tighter and more accurate clock synchronization options with 
the Exchange's network. The purpose of the proposed Service is to 
provide Members an additional, optional tool to aid in them in [sic] 
synchronizing their systems with the Exchange's network to ensure more 
accurate clock synchronization and timestamp calculations.
    As discussed above, Members may currently have their own GPS clock 
and synchronization devices that allow them to determine the timeliness 
and speed of their orders and messages. They may also currently have 
those GPS devices synchronized with the GPS clocks of other trading 
centers or other third parties that they engage with. The Exchange 
proposes to allow all Members to do the same here and synchronize their 
GPS devices with the Exchange's GPS clock. The Exchange simply proposes 
to provide the Service in response to Member demand for data concerning 
the timeliness of their incoming orders and messages that now wish to 
sync their own devices with the Exchange's GPS clock at a sub-
nanosecond level. Again, the proposed Service is an optional product 
and no Member is required to subscribe to the Service to trade or 
participate on the Exchange.
Change to Title of Exchange Rule 531
    With the proposed change to add the new Service, the Exchange also 
proposes to amend the title of Exchange Rule 531, which is currently 
titled ``Reports and Market Data Products.'' With the addition of the 
Service, the Exchange proposes to place a comma after the word 
``Reports'' in the title of Exchange Rule 531, and add the phrase ``and 
Services'' at the end. Accordingly, with the proposed changes, the 
title of Exchange Rule 531 will be as follows: ``Reports, Market Data 
Products and Services.'' The purpose of this change is to provide 
clarity within the Exchange's rules.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act

[[Page 69304]]

and the rules and regulations thereunder applicable to the Exchange 
and, in particular, the requirements of Section 6(b) of the Act.\14\ 
Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \15\ requirements that the rules of 
an exchange be 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 general, to protect investors and the public interest. 
This proposal is in keeping with those principles in that it promotes 
improved technology management and optimization by providing an 
optional Service to those Members interested in synchronizing their 
system's GPS clocks and timestamps with those of the Exchange at a sub-
nanosecond level. Additionally, the Exchange believes the proposed rule 
change is consistent with the Section 6(b)(5) \16\ requirement that the 
rules of an exchange not be designed to permit unfair discrimination 
between customers, issuers, brokers, or dealers as it will be available 
to all Members who chose [sic] to subscribe. Members that chose [sic] 
not to subscribe to the proposed Service are free to utilize existing 
time synchronization methods described above or utilize some other 
services that may assist them in time synchronization of their systems 
at a more granular level.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
    \16\ Id.
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    Today, GPS clocks contribute very precise time data to the GPS 
signals. GPS receivers decode these signals, effectively synchronizing 
each receiver to the atomic clocks. This enables users to determine the 
time to within 30 nanoseconds.\17\ These precise time measurements are 
crucial to a variety of economic activities. Communication systems and 
financial networks all rely on precision timing for synchronization and 
operational efficiency. These benefits include precise synchronization 
of communications systems, financial networks, and other critical 
infrastructure, as well as improved network management and 
optimization, making traceable timestamps possible for financial 
transactions and billing.\18\ The proposed Service, therefore, perfects 
the mechanism of a free and open market and a national market system by 
providing an additional, optional tool for Members to further enhance 
their timestamp calculations at a sub-nanosecond level. The proposed 
Service is also not novel to the securities markets and it is similar 
to other network time services currently available to U.S. registered 
broker-dealers by two U.S. exchange groups and currently offered by at 
least two foreign securities exchanges.\19\
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    \17\ See supra note 11.
    \18\ See GPS.gov: Timing Applications (last visited November 12, 
2021).
    \19\ See supra notes 7 and 8.
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    The Exchange believes the proposed Service removes impediments to 
and perfects the mechanism of a free and open market and a national 
market system by providing Members an optional tool that would enable 
them to better time synchronize their systems to the Exchange. The 
proposed Service would be beneficial in multiple areas, one of which is 
enabling Members to better understand the latency of their incoming 
orders and messages. Members may also use the proposed Service to 
analyze the efficiency of their networks when receiving messages from 
the Exchange, such as whether their order or quote was accepted, 
rejected, or executed. Members may also use the proposed Service to 
measure the time it takes for their message, such as an instruction to 
cancel a resting order, to be received by the Exchange's matching 
engine, not just at the outside wall of the Exchange's network. The 
proposed Service may also be used by Members to measure traversal times 
by comparing their message timestamp to the Exchange's matching engine 
timestamp, which is published on the Exchange's proprietary data feeds. 
Members may then, in turn, measure the time it takes for a message or 
order to be published to the Exchange's proprietary data feed by the 
matching engine. Based on the above use cases, the proposed Service 
would facilitate transactions in securities by providing Members with 
an optional tool that enables them to further enhance their systems to 
send and receive such communications to the Exchange in a timelier 
manner and to verify that their systems are performing correctly.
    The proposed Service is designed for Members that are interested in 
gaining insight into latency by providing those Members with an 
optional service to better calculate the time it took for their orders 
or messages to travel between their network and that of the Exchange. 
The Exchange believes providing this optional clock synchronization 
service to interested Members is consistent with facilitating 
transactions in securities, removing impediments to and perfecting the 
mechanism of a free and open market and a national market system, and, 
in general, protecting investors and the public interest because it 
provides greater visibility into the latency of Members' orders, 
messages, and interactions with the Exchange. Members may use the 
proposed Service to optimize their models and trading patterns in an 
effort to yield better execution results by better understanding the 
time their order left their network and was received by the Exchange. 
This would, in turn, benefit other market participants who may 
experience better executions when sending orders to Members that 
utilize the Service.
    The proposed Service also enables Members to further enhance their 
own systems to send and receive communications to and from the Exchange 
in a timelier manner and to verify that their systems are working as 
intended. The proposed Service also promotes just and equitable 
principles of trade because Members may use the Service for determining 
compliance with certain regulatory requirements,\20\ trading 
surveillance, and to assist them in evaluating compliance with certain 
clock synchronization requirements.\21\
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    \20\ See supra note 12.
    \21\ See supra note 13.
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    The proposed Service is not a market data product or access/
connectivity service and the Exchange does not propose to include 
additional connectivity options or modify existing connectivity options 
as part of this proposal. Members may use their existing methods to 
connect to and send orders to the Exchange. The proposed Service is 
simply a clock synchronization service, requested by Members, that 
would allow Members to better understand the time by which their orders 
travel from their systems to those of the Exchange. It is simply an 
additional, optional tool that Members may use to calculate time 
measurements at a sub-nanosecond level. The proposed Service will not 
include any trading data regarding the Member's activity on the 
Exchange or include any data from other trading activity on the 
Exchange.
    The proposed Service may not provide utility to all Members based 
on their business model, use of existing time synchronization methods, 
or reliance on other methods to test their system's performance to 
ensure it is operating as intended. Nonetheless, the Exchange 
understands that some Members may view the proposed

[[Page 69305]]

Service as critical in that it would assist them in better calculating 
time measurements of their orders at a sub-nanosecond level and further 
enhance their trading systems to perform with minimal latency as 
compare [sic] to other market participants that participate on the 
Exchange. However, the Exchange notes that use of the proposed Service 
will be on voluntary basis and no Member will be required to subscribe 
to the Service. Members may utilize existing time synchronization 
methods described above or utilize some other services that may assist 
them in time synchronization of their systems. Members may view these 
alternatives as more in line with their business needs or chose [sic] 
an alternative that is more compatible with their existing technology. 
As noted above, other Members may also not think the proposed Service 
is necessary or in line with their business need because they are not 
latency sensitive or have developed other methods to test and ensure 
that their network is operating as they intend.
    Again, the Exchange notes that there is no rule or regulation that 
requires the Exchange to provide, or that a Member elect to subscribe 
to, the Service. It is entirely a business decision of each Member to 
subscribe to the Service. Members that do not chose to subscribe to the 
Service may avail themselves to other products that assist them in 
better calculating time measurements related to their messages or 
orders. The Exchange proposes to offer the Service as a convenience to 
Members to provide them with additional information regarding trading 
activity on the Exchange. A Member that chooses to subscribe to the 
Service may discontinue the Service at any time if that Member 
determines that the Service is no longer useful or that alternatives 
better meet their business or system needs.
    In summary, the proposed Service will help to protect a free and 
open market by providing an additional tool (offered on an optional 
basis) to the marketplace and by providing investors with greater 
choices. Additionally, the proposal would not permit unfair 
discrimination because the proposed Service will be available to all 
Exchange Members.
    Lastly, the Exchange believes the proposed changes to the title of 
Exchange Rule 531 promote just and equitable principles of trade and 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system because the proposed rule changes 
will provide greater clarity to Members and the public regarding the 
Exchange's Rules. It is in the public interest for rules to be accurate 
and concise so as to eliminate the potential for confusion.

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

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. In 
this instance, the proposed rule change to offer the optional Service 
is in response to Member interest and requests for tools that would 
enable them to better measure traversal times between their network and 
that of the Exchange at a more granular level. The Exchange does not 
believe the proposed Service will have an inappropriate burden on 
intra-market competition between Members that choose to subscribe to 
the Service and those Members that do not. As discussed above, other 
latency measurement tools are available to U.S. registered broker-
dealers, alternative trading systems, and currently offered by at least 
two foreign securities exchanges.\22\ Like the proposed Service, these 
tools also provide market participants the ability to further enhance 
their systems to send and receive such communications to the Exchange 
in a timelier manner and to verify that their systems are performing 
correctly. Additionally, some Members may be able to enhance their own 
traversal time calculations without subscribing to the proposed Service 
by using existing time synchronization methods described above or 
utilize some other services that may assist them in time 
synchronization of their systems. Members may view these alternatives 
as more in line with their business needs or chose [sic] an alternative 
that is more compatible with their existing technology.
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    \22\ See supra notes 7 and 8.
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    The Exchange does not believe the proposed Service will have an 
inappropriate burden on inter-market competition as similar services 
are currently available to brokers-dealers by at least two other U.S. 
exchange groups.\23\ The proposed Service would therefore serve to 
enhance competition by allowing the Exchange to offer a time 
synchronization service that is similar to those currently available on 
other U.S. securities exchanges. The proposed rule change should 
enhance competition by promoting further initiatives and innovation 
among market centers and market participants as it concerns time 
measurements and synchronization among trading platforms.
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    \23\ See supra note 7.
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    Lastly, if the proposed Service is unattractive to Members, Members 
will opt not to subscribe to it. Accordingly, the Exchange does not 
believe that the proposed change will impair the ability of Members or 
competing order execution venues to maintain their competitive standing 
in the financial markets.

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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission shall: (a) By order approve 
or disapprove such proposed rule change, or (b) institute proceedings 
to determine whether the proposed rule change should be 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-EMERALD-2021-38 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-EMERALD-2021-38. 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

[[Page 69306]]

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-
EMERALD-2021-38, and should be submitted on or before December 28, 
2021.
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    \24\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\24\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-26451 Filed 12-6-21; 8:45 am]
BILLING CODE 8011-01-P