Document ID: SEC-2020-1541-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: MIAX PEARL, LLC
Posted Date: 2020-09-29T04:00Z

[Federal Register Volume 85, Number 189 (Tuesday, September 29, 2020)]
[Notices]
[Pages 61053-61057]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21407]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89971; File No. SR-PEARL-2020-16]

Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange 
Rule 2618, Risk Settings and Trading Risk Metrics

September 23, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on September 14, 2020, MIAX PEARL, LLC (``MIAX PEARL'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the Exchange. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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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 the 
Substance of the Proposed Rule Change

    The Exchange is filing a proposed rule change to provide Equity 
Members \3\ certain optional risk settings under Exchange Rule 2618 
when trading equity securities on the Exchange's equity trading 
platform (referred to herein as ``MIAX PEARL Equities'').
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    \3\ See Exchange Rule 1901 for the definition of Equity Member.
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    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 provide Equity 
Members certain optional risk settings under Exchange Rule 2618 when 
trading equity securities on MIAX PEARL Equities.\4\ To help Equity 
Members

[[Page 61054]]

manage their risk, the Exchange proposes to offer optional risk 
settings that would authorize the Exchange to take automated action if 
a designated limit for an Equity Member is breached. Such risk settings 
would provide Equity Members with enhanced abilities to manage their 
risk with respect to orders on the Exchange. Proposed paragraph (a)(2) 
of Rule 2618 \5\ sets forth the specific risk control the Exchange 
proposes to offer. Specifically, the Exchange proposes to offer the 
following risk setting:
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    \4\ The proposed rule changes are substantially similar to a 
recent rule amendment by Cboe BZX Exchange, Inc. (``BZX'') and Cboe 
EDGX Exchange, Inc. (``EDGX''). See Interpretation and Policy .03 to 
BZX Rule 11.13 and Interpretation and Policy .03 to EDGX Rule 11.10. 
See Securities Exchange Act Nos. 88599 (April 8, 2020) 85 FR 20793 
(April 14, 2020) (the ``BZX Approval''); and 88783 (April 30, 2020), 
85 FR 26991 (May 6, 2020) (the ``EDGX Notice''). See also Securities 
Exchange Act Release Nos. 89032 (June 9, 2020), 85 FR 36246 (June 
15, 2020) (SR-CboeBZX-2020-44); and 89000 (June 3, 2020), 85 FR 
35344 (June 9, 2020) (SR-CboeEDGX-2020-023).
    \5\ The Exchange proposes to renumber the current paragraph (2) 
under Exchange Rule 2618 as paragraph (7) to account for proposed 
paragraphs (a)(2) through (6) described in this proposed rule 
change.
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     The ``Gross Notional Trade Value'', which refers to a pre-
established maximum daily dollar amount for purchases and sales across 
all symbols, where both purchases and sales are counted as positive 
values. For purposes of calculating the Gross Notional Trade Value, 
only executed orders are included.\6\
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    \6\ One difference between this proposed rule change and those 
of BZX and EDGX is that the Exchange does not propose at this time 
to offer a net credit risk setting, which refers to a pre-
established maximum daily dollar amount for purchases and sales 
across all symbols, where purchases are counted as positive values 
and sales are counted as negative values. See supra note 4. The 
Exchange will submit a separate proposed rule change with the 
Commission to adopt a ``Net Notional Trade Value'' in the future.
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    The Gross Notional Trade Value risk setting is similar to credit 
controls measuring gross exposure provided for in paragraph (a)(1)(A) 
of Exchange Rule 2618 and allow limits to be set at the Market 
Participant Identifier (``MPID''), session, and firm level.\7\ 
Therefore, the proposed risk management functionality would allow an 
Equity Member to manage its risk more comprehensively and across 
various level settings. Further, like our existing credit controls 
measuring gross exposure, the proposed risk setting would also be based 
on a notional execution value. The Exchange notes that the current 
gross notional control noted in paragraph (a)(1)(A) of Exchange Rule 
2618 will continue to be available in addition to the proposed risk 
setting.
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    \7\ Another difference between this proposed rule change and 
those of BZX and EDGX is that both BZX and EDGX only allow the gross 
credit risk limits to be set at the MPD Level or to a subset of 
orders identified within that MPID (the ``risk group identifier'' 
level). See supra note 4. The Exchange believes allowing for limits 
to be set at the MPID, session, or firm level provides Equity 
Members greater flexibility in managing their risk exposure.
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    Proposed paragraph (a)(4) of Exchange Rule 2618 provides that an 
Equity Member that does not self-clear may allocate and revoke \8\ the 
responsibility of establishing and adjusting the risk settings 
identified in proposed paragraph (a)(2) of Exchange Rule 2618 to a 
Clearing Member that clears transactions on behalf of the Equity 
Member, if designated in a manner prescribed by the Exchange. 
Specifically, Exchange Rule 2620(a): (i) Defines the term ``Clearing 
Member''; \9\ (ii) outlines the process by which a Clearing Member 
shall affirm its responsibility for clearing any and all trades 
executed by the Equity Member designating it as its Clearing Firm; and 
(iii) provides that the rules of a Qualified Clearing Agency shall 
govern with respect to the clearance and settlement of any transactions 
executed by the Equity Member on the Exchange.
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    \8\ As discussed below, if an Equity Member revokes the 
responsibility of establishing and adjusting the risk settings 
identified in proposed paragraph (a), the settings applied by the 
Equity Member would be applicable.
    \9\ The term ``Clearing Member'' refers to a Member that is a 
member of a Qualified Clearing Agency and clears transactions on 
behalf of another Member. See Exchange Rule 2620(a).
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    By way of background, Exchange Rule 2620(a) requires that all 
transactions passing through the facilities of the Exchange shall be 
cleared and settled through a Qualified Clearing Agency using a 
continuous net settlement system.\10\ As reflected on Exchange Rule 
2620(a), this requirement may be satisfied by direct participation, use 
of direct clearing services, or by entry into a corresponding clearing 
arrangement with another Member that clears through a Qualified 
Clearing Agency (i.e., a Clearing Member). If an Equity Member clears 
transactions through another Equity Member that is a Clearing Member, 
such Clearing Member shall affirm to the Exchange in writing, through 
letter of authorization, letter of guarantee or other agreement 
acceptable to the Exchange, its agreement to assume responsibility for 
clearing and settling any and all trades executed by the Member 
designating it as its clearing firm.\11\ Thus, while not all Equity 
Members are Clearing Members, all Equity Members are required either to 
clear their own transactions or to have in place a relationship with a 
Clearing Member that has agreed to clear transactions on their behalf 
in order to conduct business on the Exchange. Therefore, the Clearing 
Member that guarantees the Member's transactions on the Exchange has a 
financial interest in the risk settings utilized within the System \12\ 
by the Member.
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    \10\ The term ``Qualified Clearing Agency'' means a clearing 
agency registered with the Commission pursuant to Section 17A of the 
Act that is deemed qualified by the Exchange. See Exchange Rule 
1901. The rules of any such clearing agency shall govern with the 
respect to the clearance and settlement of any transactions executed 
by the Member on the Exchange.
    \11\ An Equity Member can designate one Clearing Member per MPID 
associated with the Equity Member.
    \12\ See Exchange Rule 100 for a definition of ``System.''
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    Paragraph (a) of Rule 2620 allows Clearing Members an opportunity 
to manage their risk of clearing on behalf of other Equity Members, if 
authorized to do so by the Equity Member trading on MIAX PEARL 
Equities. Such functionality is designed to help Clearing Members to 
better monitor and manage the potential risks that they assume when 
clearing for Equity Members of the Exchange. An Equity Member may 
allocate or revoke the responsibility of establishing and adjusting the 
risk settings identified in proposed paragraph (a)(2) of Exchange Rule 
2618 to its Clearing Member in a manner prescribed by the Exchange. By 
allocating such responsibility, an Equity Member cedes all control and 
ability to establish and adjust such risk settings to its Clearing 
Member unless and until such responsibility is revoked by the Equity 
Member, as discussed in further detail below. Because the Equity Member 
is responsible for its own trading activity, the Exchange will not 
provide a Clearing Member authorization to establish and adjust risk 
settings on behalf of an Equity Member without first receiving consent 
from the Equity Member. The Exchange considers an Equity Member to have 
provided such consent if it allocates the responsibility to establish 
and adjust risk settings to its Clearing Member in a manner prescribed 
by the Exchange. By allocating such responsibilities to its Clearing 
Member, the Equity Member consents to the Exchange taking action, as 
set forth in proposed paragraph (a)(6) of Exchange Rule 2618, with 
respect to the Equity Member's trading activity. Specifically, if the 
risk setting(s) established by the Clearing Member are breached, the 
Equity Member consents that the Exchange will automatically block new 
orders submitted and cancel open orders until such time that the 
applicable risk setting is adjusted to a higher limit by the Clearing 
Member. An Equity Member may also revoke responsibility allocated to 
its Clearing Member pursuant to this paragraph at any time in a manner 
prescribed by the Exchange.

[[Page 61055]]

    Proposed paragraph (a)(3) Exchange Rule 2618 provides that either 
an Equity Member or its Clearing Member, if allocated such 
responsibility pursuant to proposed paragraph (a)(4) of Exchange Rule 
2618, may establish and adjust limits for the risk settings provided in 
proposed paragraph (a)(2) of Exchange Rule 2618. An Equity Member or 
Clearing Member may establish and adjust limits for the risk settings 
in a manner prescribed by the Exchange. The risk management web portal 
page will also provide a view of all applicable limits for each Equity 
Member, which will be made available to the Equity Member and its 
Clearing Member, as discussed in further detail below.
    Proposed paragraph (a)(5) of Exchange Rule 2618 would provide 
optional alerts to signal when an Equity Member is approaching its 
designated limit. If enabled, the alerts would generate when the Equity 
Member breaches certain percentage thresholds of its designated risk 
limit, as determined by the Exchange. Based on current industry 
standards, the Exchange anticipates initially setting these thresholds 
at seventy-five or ninety percent of the designated risk limit. Both 
the Equity Member and Clearing Member \13\ would have the option to 
enable the alerts via the risk management tool on the web portal and 
designate email recipients of the notification. The proposed alert 
system is meant to warn an Equity Member and Clearing Member of the 
Equity Member's trading activity, and will have no impact on the Equity 
Member's order and trade activity if a warning percentage is breached. 
Proposed paragraph (a)(6) of Exchange Rule 2618 would authorize the 
Exchange to automatically block new orders submitted and cancel all 
open orders in the event that a risk setting is breached. The Exchange 
will continue to block new orders submitted until the Equity Member or 
Clearing Member, if allocated such responsibility pursuant to proposed 
paragraph (a)(4) of Exchange Rule 2618, adjusts the risk settings to a 
higher threshold. The proposed functionality is designed to assist 
Equity Members and Clearing Members in the management of, and risk 
control over, their credit risk. Further, the proposed functionality 
would allow the Equity Member to seamlessly avoid unintended executions 
that exceed their stated risk tolerance.
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    \13\ A Clearing Member would have the ability to enable alerts 
regardless of whether it was allocated responsibilities pursuant to 
proposed paragraph (a)(4) of Exchange Rule 2618.
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    The Exchange does not guarantee that the proposed risk settings 
described in proposed paragraphs (a)(2) through (6) are sufficiently 
comprehensive to meet all of an Equity Member's risk management needs. 
Pursuant to Rule 15c3-5 under the Act,\14\ a broker-dealer with market 
access must perform appropriate due diligence to assure that controls 
are reasonably designed to be effective, and otherwise consistent with 
the rule.\15\ Use of the Exchange's risk settings included in proposed 
paragraphs (a)(2) through (6) of Exchange Rule 2618 will not 
automatically constitute compliance with Exchange or federal rules and 
responsibility for compliance with all Exchange and SEC rules remains 
with the Equity Member.
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    \14\ 17 CFR 240.15c3-5.
    \15\ See Division of Trading and Markets, Responses to 
Frequently Asked Questions Concerning Risk Management Controls for 
Brokers or Dealers with Market Access, available at https://www.sec.gov/divisions/marketreg/faq-15c-5-risk-management-controls-bd.htm.
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    Lastly, as the Exchange currently has the authority to share any of 
an Equity Member's risk settings specified in paragraph (a) of Exchange 
Rule 2618 under Exchange Rule 2620(f) with the Clearing Member that 
clears transactions on behalf of the Equity Member. Existing Exchange 
Rule 2620(f) provides the Exchange with authority to directly provide 
Clearing Members that clear transactions on behalf of an Equity Member, 
to share any of the Equity Member's risk settings set forth under 
paragraph (a) of Exchange Rule 2618.\16\ The purpose of such a 
provision under Exchange Rule 2620(f) was implemented to reduce the 
administrative burden on participants on MIAX PEARL Equities, including 
both Clearing Members and Equity Members, and to ensure that Clearing 
Members receive information that is up to date and conforms to the 
settings active in the System. Further, the provision was adopted 
because the Exchange believed such functionality would help Clearing 
Members to better monitor and manage the potential risks that they 
assume when clearing for Equity Members of the Exchange. Paragraph (f) 
of Exchange Rule 2620 would further authorize the Exchange to share any 
of an Equity Member's risk settings specified in proposed paragraph 
(a)(2) to Exchange Rule 2618 with the Clearing Member that clears 
transactions on behalf of the Equity Member.
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    \16\ By using the optional risk settings provided in paragraph 
(a)(1) of Exchange Rule 2618, an Equity Member opts-in to the 
Exchange sharing its risk settings with its Clearing Member. Any 
Equity Member that does not wish to share such risk settings with 
its Clearing Member can avoid sharing such settings by becoming a 
Clearing Member. See Securities Exchange Act Release No. 89563 
(August 14, 2020), 85 FR 51510 (August 20, 2020) (SR-PEARL-2020-03) 
(``Equities Approval Order'').
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    The Exchange notes that the use by an Equity Member of the risk 
settings offered by the Exchange is optional. By using these proposed 
optional risk settings, an Equity Member therefore also opts-in to the 
Exchange sharing its designated risk settings with its Clearing Member. 
The Exchange believes that its proposal to offer an additional risk 
setting will allow Equity Members to better manage their credit risk. 
Further, by allowing Equity Members to allocate the responsibility for 
establishing and adjusting such risk settings to its Clearing Member, 
the Exchange believes Clearing Members may reduce potential risks that 
they assume when clearing for Equity Members of the Exchange. The 
Exchange also believes that its proposal to share a Member's risk 
settings set forth under proposed paragraph (a)(2) to Exchange Rule 
2618 directly with Clearing Members reduces the administrative burden 
on participants on the Exchange, including both Clearing Members and 
Equity Members, and ensures that Clearing Members are receiving 
information that is up to date and conforms to the settings active in 
the System.

2. Statutory Basis

    The proposed rule change is consistent with Section 6(b) of the 
Act,\17\ in general, and furthers the objectives of Section 
6(b)(5),\18\ 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 general, to 
protect investors and the public interest.
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    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(5).
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    Specifically, the Exchange believes the proposed amendment will 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system because it provides additional 
functionality for an Equity Member to manage its credit risk. In 
addition, the proposed risk setting could provide Clearing Members, who 
have assumed certain risks of Equity Members, greater control over risk 
tolerance and exposure on behalf of their correspondent Equity Members, 
if

[[Page 61056]]

allocated responsibility pursuant to proposed paragraph (a)(4) of 
Exchange Rule 2618, while also providing an alert system that would 
help to ensure that both Equity Members and its Clearing Member are 
aware of developing issues. As such, the Exchange believes that the 
proposed risk settings would provide a means to address potentially 
market-impacting events, helping to ensure the proper functioning of 
the market.
    In addition, the Exchange believes that the proposed rule change is 
designed to protect investors and the public interest because the 
proposed functionality is a form of risk mitigation that will aid 
Equity Members and Clearing Members in minimizing their financial 
exposure and reduce the potential for disruptive, market-wide events. 
In turn, the introduction of such risk management functionality could 
enhance the integrity of trading on the securities markets and help to 
assure the stability of the financial system.
    Further, the Exchange believes that the proposed rule will foster 
cooperation and coordination with persons facilitating transactions in 
securities because the Exchange will provide alerts when an Equity 
Member's trading activity reaches certain thresholds, which will be 
available to both the Equity Member and Clearing Member. As such, the 
Exchange may help Clearing Members monitor the risk levels of 
correspondent Equity Members and provide tools for Clearing Members, if 
allocated such responsibility, to take action.
    The proposal will permit Clearing Members who have a financial 
interest in the risk settings of Equity Members to better monitor and 
manage the potential risks assumed by Clearing Members, thereby 
providing Clearing Members with greater control and flexibility over 
setting their own risk tolerance and exposure. To the extent a Clearing 
Member might reasonably require an Equity Member to provide access to 
its risk settings as a prerequisite to continuing to clear trades on 
the Equity Member's behalf, the Exchange's proposal to share those risk 
settings directly reduces the administrative burden on participants on 
the Exchange, including both Clearing Members and Equity Members. 
Moreover, providing Clearing Members with the ability to see the risk 
settings established for Equity Members for which they clear will 
foster efficiencies in the market and remove impediments to and perfect 
the mechanism of a free and open market and a national market system. 
The proposal also ensures that Clearing Members are receiving 
information that is up to date and conforms to the settings active in 
the System. The Exchange believes that the proposal is consistent with 
the Act, particularly Section 6(b)(5),\19\ because it will foster 
cooperation and coordination with persons engaged in facilitating 
transactions in securities and more generally, will protect investors 
and the public interest, by allowing Clearing Members to better monitor 
their risk exposure and by fostering efficiencies in the market and 
removing impediments to and perfect the mechanism of a free and open 
market and a national market system.
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    \19\ 15 U.S.C. 78f(b)(5).
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    Finally, the Exchange believes that the proposed rule change does 
not unfairly discriminate among the Exchange's Members because use of 
the risk settings is optional and are not a prerequisite for 
participation on the Exchange. The proposed risk settings are 
completely voluntary and, as they relate solely to optional risk 
management functionality, no Member is required or under any regulatory 
obligation to utilize them.
    The proposed rule change is based on Interpretation and Policy .03 
of EDGX Rule 11.10 and Interpretation and Policy .03 of BZX Rule 11.13, 
with four minor differences.\20\ First, both BZX and EDGX only allow 
the gross credit risk limits to be set at the MPID level or to a subset 
of orders identified within that MPID (the ``risk group identifier'' 
level) while the Exchange proposes to allow the risk limits to be set 
at the MPID, session, and firm level. Second, the Exchange only 
proposes to adopt a Gross Notional Trade Value risk setting while EDGX 
and BZX adopted both gross notional and net notional risk settings. 
Third, EDGX proposed additional changes to its Rule 11.13(a) to allow 
their clearing members access to its members risk settings. The 
Exchange does not need to include similar changes in this proposal as 
Exchange Rule 2620(a) already provides Clearing Members this ability 
and includes text identical to that which EDGX recently adopted.\21\ 
Lastly, the Exchange notes that it proposes to generate alerts when the 
Equity Member breaches certain percentage thresholds of its designated 
risk limit, as determined by the Exchange. Based on current industry 
standards, the Exchange anticipates initially setting these thresholds 
at seventy-five or ninety percent of the designated risk limit. The 
Exchange notes that EDGX stated these thresholds would be set at fifty, 
seventy, or ninety percent.
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    \20\ See supra note 4.
    \21\ Id.
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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. In fact, the Exchange 
believes that the proposal may have a positive effect on competition 
because it would allow the Exchange to offer risk management 
functionality that is comparable to functionality that has been adopted 
by other national securities exchanges.\22\ Further, by providing 
Equity Members and their Clearing Members additional means to monitor 
and control risk, the proposed rule may increase confidence in the 
proper functioning of the markets and contribute to additional 
competition among trading venues and broker-dealers. Rather than impede 
competition, the proposal is designed to facilitate more robust risk 
management by Equity Members and Clearing Members, which, in turn, 
could enhance the integrity of trading on the securities markets and 
help to assure the stability of the financial system.
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    \22\ Id.
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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 from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \23\ and Rule 19b-
4(f)(6) thereunder.\24\
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    \23\ 15 U.S.C. 78s(b)(3)(A).
    \24\ 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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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \25\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \26\ permits the 
Commission to designate a

[[Page 61057]]

shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange has asked the 
Commission to waive the 30-day operative delay so that the Exchange may 
implement the proposed risk controls on the anticipated launch date of 
MIAX PEARL Equities on September 25, 2020. The Exchange states that 
waiver of the operative delay would allow Equity Members to immediately 
utilize the proposed functionality to manage their risk. For this 
reason, the Commission believes that waiver of the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. Accordingly, the Commission hereby waives the 30-day 
operative delay and designates the proposed rule change operative upon 
filing.\27\
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    \25\ 17 CFR 240.19b-4(f)(6).
    \26\ 17 CFR 240.19b-4(f)(6)(iii).
    \27\ For purposes only of waiving the 30-day operative delay, 
the Commission also has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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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 change should be approved or 
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-PEARL-2020-16 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-2020-16. 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-2020-16, and should be submitted 
on or before October 20, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\28\
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    \28\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-21407 Filed 9-28-20; 8:45 am]
BILLING CODE 8011-01-P