
[Federal Register Volume 88, Number 189 (Monday, October 2, 2023)]
[Notices]
[Pages 67841-67845]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-21620]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-98529; File No. SR-PEARL-2023-48]


Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange 
Rule 2614(f) of the MIAX Pearl Equities Rulebook To Allow Self-Trade 
Protection Between Users That Access the Exchange Through a Direct 
Connection and Sponsored Access

September 26, 2023.
    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 22, 2023, MIAX PEARL, LLC (``MIAX Pearl'' or the 
``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 self-regulatory 
organization. The Commission is

[[Page 67842]]

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 proposes to amend Exchange Rule 2614(f) to permit 
individual firms with Users \3\ that access the Exchange through a 
direct connection and also access the Exchange through Sponsored Access 
to enable Self-Trade Protection (``STP'') modifiers at the firm level 
on the Exchange's equity trading platform (referred to herein as ``MIAX 
Pearl Equities'').\4\
---------------------------------------------------------------------------

    \3\ The term ``User'' means any Member or sponsored participant 
who is authorized to obtain access to the System pursuant to 
Exchange Rule 2602. See Exchange Rule 1901.
    \4\ This proposed rule change is based on recent proposed rule 
changes by other national securities exchanges that were filed for 
immediate effectiveness pursuant to Section 19(b)(3)(A)(iii) of the 
Act, 15 U.S.C. 78s(b)(3)(A)(iii), and Rule 19b-4(f)(6), 17 CFR 
240.19b-4(f)(6), thereunder. See Securities Exchange Act Release 
Nos. 98021 (July 28, 2023), 88 FR 51386 (August 3, 2023) (SR-
CboeEDGX-2023-049); 98020 (July 28, 2023), 88 FR 51361 (August 3, 
2023) (SR-CboeEDGA-2023-013); 98019 (July 28, 2023), 88 FR 51379 
(August 3, 2023) (SR-CboeBYX-2023-012); and 98022 (July 28, 2023), 
88 FR 51383 (August 3, 2023) (SR-CboeBZX-2023-054).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's 
website at https://www.miaxglobal.com/markets/us-equities/pearl-equities/rule-filings, 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 Exchange proposes to amend Exchange Rule 2614(f) to permit 
individual firms with Users that access the Exchange through a direct 
connection and also access the Exchange through Sponsored Access \5\ to 
enable STP modifiers at the firm level on MIAX Pearl Equities, if they 
choose.
---------------------------------------------------------------------------

    \5\ See Exchange Rule 210.
---------------------------------------------------------------------------

    The Exchange offers optional anti-internalization functionality to 
Users in the form of STP modifiers that enable a User to prevent two of 
its orders from executing against each other. The Exchange offers the 
following four (4) STP modifiers to Equity Members: Cancel Newest, 
Cancel Oldest, Decrement and Cancel, and Cancel Both. An order marked 
with the Cancel Newest modifier will not execute against a contra-side 
order marked with any STP modifier originating from the same Unique 
Identifier (as currently defined) and the order with the most recent 
time stamp marked with the Cancel Newest modifier will be cancelled. 
The contra-side order with the older timestamp marked with an STP 
modifier will remain on the MIAX Pearl Equities Book.\6\ An order 
marked with the Cancel Oldest modifier will not execute against a 
contra-side order marked with any STP modifier originating from the 
same Unique Identifier and the order with the older time stamp marked 
with the STP modifier will be cancelled. The contra-side order with the 
most recent timestamp marked with the STP modifier will remain on the 
MIAX Pearl Equities Book. An order marked with the Decrement and Cancel 
modifier will not execute against contra-side interest marked with any 
STP modifier originating from the same Unique Identifier. If both 
orders are equivalent in size, both orders will be cancelled. If both 
orders are not equivalent in size, the equivalent size will be 
cancelled and the larger order will be decremented by the size of the 
smaller order, with the balance remaining on the MIAX Pearl Equities 
Book. Finally, an order marked with the Cancel Both modifier will not 
execute against contra-side interest marked with any STP modifier 
originating from the same Unique Identifier and the entire size of both 
orders will be cancelled.
---------------------------------------------------------------------------

    \6\ Exchange Rule 1901 defines the term ``MIAX Pearl Equities 
Book'' as ``the electronic book of orders in equity securities 
maintained by the System.''
---------------------------------------------------------------------------

    Currently, Users can set the STP modifier to apply at the market 
participant identifier (``MPID''), Exchange Member \7\ identifier, 
trading group identifier, or Equity Member Affiliate identifier level 
(any such existing identifier, a ``Unique Identifier'').\8\ The STP 
modifier on the order with the most recent time stamp controls the 
interaction between two orders marked with STP modifiers. STP 
functionality assists market participants in reducing trading costs 
from unwanted executions potentially resulting from the interaction of 
executable buy and sell trading interest from the same firm.
---------------------------------------------------------------------------

    \7\ The term ``Equity Member'' is a Member authorized by the 
Exchange to transact business on MIAX Pearl Equities. See Exchange 
Rule 1901.
    \8\ See Exchange Rule 2614(f).
---------------------------------------------------------------------------

    The Exchange now proposes to amend Rule 2614(f) and enhance its 
existing STP functionality by introducing a fifth Unique Identifier, 
Multiple Access identifier, which will allow a User to prevent orders 
entered via its direct connection from interacting with the User's 
orders entered via Sponsored Access. Currently, STP is only available 
to individual and affiliated \9\ Users. However, there are certain 
situations (discussed infra) in which an individual firm may access the 
Exchange through different methods (i.e., through a direct connection 
and through Sponsored Access) and therefore desires to enable STP in 
order to prevent orders submitted through its direct connection from 
interacting with those orders submitted through Sponsored Access.
---------------------------------------------------------------------------

    \9\ The term ``affiliate'' of or person ``affiliated with'' 
another person means a person who, directly, or indirectly, 
controls, is controlled by, or is under common control with, such 
other person. See Exchange Rule 100. The term ``person'' refers to a 
natural person, corporation, partnership (general or limited), 
limited liability company, association, joint stock company, trust, 
trustee of a trust fund, or any organized group of persons whether 
incorporated or not and a government or agency or political 
subdivision thereof. Id. See also 17 CFR 230.405. An affiliate of, 
or person affiliated with, a specified person, is a person that 
directly, or indirectly through one or more intermediaries, controls 
or is controlled by, or is under common control with, the person 
specified.
---------------------------------------------------------------------------

    The Multiple Access identifier is similar to the affiliate 
identifier that is already in place, as it will enable firms that 
currently enter orders on the Exchange under two different Unique 
Identifiers to assign the same Unique Identifier to orders entered via 
its direct connection and to orders entered via Sponsored Access. This 
will permit the firm to enable STP and prevent contra side orders from 
executing. While the affiliate identifier requires Users to prove that 
an affiliate relationship exists between the two Users, the proposed 
Multiple Access identifier will only require a User to demonstrate: (i) 
it maintains a Membership as an Equity Member on the Exchange through 
which it directly submits orders to the System; \10\ and (ii) it also 
operates as a pponsored [sic] participant and submits

[[Page 67843]]

orders to the System through Sponsored Access. The proposed addition of 
the Multiple Access identifier does not present any new or novel STP 
functionality, but rather would extend existing STP functionality to 
firms that already access the Exchange through multiple formats and 
therefore have different Unique Identifiers appended to their 
orders.\11\
---------------------------------------------------------------------------

    \10\ The term ``System'' is the automated trading system used by 
the Exchange for the trading of securities. See Exchange Rule 100.
    \11\ See also supra note 4.
---------------------------------------------------------------------------

    There are situations where an individual firm would choose to 
submit orders to the Exchange through different mechanisms. For 
instance, a firm may employ different trading strategies across 
different trading desks and choose to send orders for one strategy to 
the Exchange through a direct connection while the other strategy is 
sent through Sponsored Access. The proposed functionality would serve 
as an additional tool that Users may enable in order to assist with 
compliance with the various securities laws relating to potentially 
manipulative trading activity such as wash sales \12\ and self-
trades.\13\ Additionally, the proposed functionality would provide 
firms an additional solution to manage order flow by preventing 
undesirable executions where the firm submits orders in multiple 
formats (i.e., direct connection or Sponsored Access). As is the case 
with the existing risk tools, Users, and not the Exchange, have full 
responsibility for ensuring that their orders comply with applicable 
securities rules, laws, and regulations. Furthermore, as is the case 
with the existing risk settings, the Exchange does not believe that the 
use of the proposed STP functionality can replace User-managed risk 
management solutions.
---------------------------------------------------------------------------

    \12\ A ``wash sale'' is generally defined as a trade involving 
no change in beneficial ownership that is intended to produce the 
false appearance of trading and is strictly prohibited under both 
the federal securities laws and FINRA rules. See, e.g., 15 U.S.C 
78i(a)(1); FINRA Rule 6140(b) (``Other Trading Practices'').
    \13\ Self-trades are ``transactions in a security resulting from 
the unintentional interaction of orders originating from the same 
firm that involve no change in beneficial ownership of the 
security.'' FINRA requires members to have policies and procedures 
in place that are reasonably designed to review trading activity 
for, and prevent, a pattern or practice of self-trades resulting 
from orders originating from a single algorithm or trading desk, or 
related algorithms or trading desks. See FINRA Rule 5210, 
Supplementary Material .02.
---------------------------------------------------------------------------

    The Exchange is proposing to allow firms that submit orders to the 
Exchange through both a direct connection and through Sponsored Access 
to utilize STP by utilizing the Multiple Access identifier.\14\ 
Specifically, the Exchange is proposing to allow individual firms who 
choose to access the System through both a direct connection and 
through Sponsored Access to use STP functionality in order to prevent 
executions from occurring between those separate Users that are 
associated with the direct connection and Sponsored Access. When a firm 
requests STP using the Multiple Access identifier and the Exchange 
confirms that the individual firm is both a Member that accesses the 
Exchange through a direct connection and maintains a sponsored 
participant relationship on the Exchange, the Exchange will assign an 
identical Multiple Access identifier to each User. This Multiple Access 
identifier will be used to prevent executions between contra side 
orders entered by the Users assigned the same Multiple Access 
identifier. The purpose of this proposed change is to extend STP 
functionality to separate Users originating from the same individual 
firm in order to prevent transactions between the firm's orders 
submitted directly to the System and through Sponsored Access.
---------------------------------------------------------------------------

    \14\ The Exchange will require firms requesting to use the 
Multiple Access identifier to complete an affidavit stating: (i) it 
is currently an Equity Member of the Exchange that submits orders 
directly to the System, and (ii) it also submits orders to the 
System through a Sponsored Access arrangement.
---------------------------------------------------------------------------

    The Exchange includes the below examples to demonstrate how STP 
will operate with the proposed Multiple Access identifier. For all 
examples below, User A represents Firm 1 accessing the System through a 
direct connection. User B also represents Firm 1 but where Firm 1 is 
accessing the System as a sponsored participant through a Sponsoring 
Member.\15\ User A and User B will use a Multiple Access identifier of 
``A'' when requesting STP at the Multiple Access level, as both Users 
submit Firm 1's orders to the System. User C is not related to Users A 
and B and uses a Multiple Access identifier of ``C''.
---------------------------------------------------------------------------

    \15\ See Exchange Rules 210 and 2602.
---------------------------------------------------------------------------

Multiple Access Level STP
    Scenario 1: User A submits a buy order. User B submits a sell 
order. User C also submits a sell order. User A has enabled STP at the 
Multiple Access level using a Multiple Access identifier of A. User B 
has enabled STP at the Multiple Access level using a Multiple Access 
identifier of A. User C has not enabled STP. User A's buy order is 
prevented from executing with User B's sell order as each User has 
enabled STP at the Multiple Access level using a Multiple Access 
identifier of A. User A's buy order will be permitted to execute with 
User C's sell order because User C has not enabled STP, depending on 
which STP modifier has been chosen by User A.
    Scenario 2: User A submits a buy order. User B submits a sell 
order. User C also submits a sell order. User A has enabled STP at the 
Multiple Access level using a Multiple Access identifier of A. User B 
has not enabled STP. User C has enabled STP at the Multiple Access 
level using a Multiple Access identifier of C. User A's order will be 
eligible to trade with both User B and User C. User A's order is 
eligible to trade with User B because User B did not enable STP. In 
order for STP to prevent the matching of contra side orders, both the 
buy and sell order must contain an STP modifier. User A's order is also 
eligible to trade with User C because even though User A and User C 
have both enabled STP at the Multiple Access level, User A and User C 
have different Multiple Access identifiers.
    Scenario 3: User A submits a buy order and a sell order. User B 
submits a buy order. User A has enabled STP at the Multiple Access 
level using a Multiple Access identifier of A. User B has enabled STP 
at the Multiple Access level using a Multiple Access identifier of A. 
User A's buy order is not eligible to execute with User A's sell order 
because User A has enabled STP at the Multiple Access level using a 
Multiple Access identifier of A. User A's sell order is not eligible to 
execute with User B's buy order because both User A and User B have 
enabled STP at the Multiple Access level using a Multiple Access 
identifier of A.
    Scenario 4: User A submits a buy order and a sell order. User B 
submits a sell order. User C submits a sell order. User A has enabled 
STP at the Multiple Access level using a Multiple Access identifier of 
A. User B has enabled STP at the Multiple Access level using a Multiple 
Access identifier of A. User C has enabled STP at the Multiple Access 
level using a Multiple Access identifier of C. User A's buy order is 
not eligible to execute with User A's sell order because User A has 
enabled STP at the Multiple Access level using a Multiple Access 
identifier of A. User A's buy order is not eligible to execute with 
User B's sell order because both User A and User B have enabled STP at 
the Multiple Access level using a Multiple Access identifier of A. User 
A's buy order is eligible to execute with User C's sell order because 
while User A and User C have enabled STP at the Multiple Access level, 
User A and User C have been assigned different Multiple Access 
identifiers.
    This proposed rule change is designed to provide additional 
flexibility to Equity Members in how they implement

[[Page 67844]]

self-trade prevention, and thereby better manage their order flow and 
prevent undesirable executions or the potential for ``wash sales'' that 
may occur as a result of the speed of trading in today's marketplace. 
Based on informal discussions with Equity Members, the Exchange 
believes that the proposed amendments will be useful to Equity Members 
in implementing their own compliance controls. Furthermore, the 
additional STP functionality may assist Members in complying with 
certain rules and regulations of the Employee Retirement Income 
Security Act (``ERISA'') that preclude and/or limit managing broker-
dealers of such accounts from trading as principal with orders 
generated for those accounts.
    The Exchange notes that, as with the current anti-internalization 
functionality offered by the Exchange, use of the proposed new Multiple 
Access identifier STP grouping will not alleviate, or otherwise exempt, 
Equity Members from their best execution obligations. As such, Equity 
Members and their Affiliates using STP will continue to be obligated to 
take appropriate steps to ensure customer orders which were prevented 
from execution due to anti-internalization ultimately receive the same 
price, or a better price, than they would have received had execution 
of the orders not been inhibited by anti-internalization. Further, as 
with current rule provisions, Market Makers and other Users may not use 
STP functionality to evade the firm quote obligation, as specified in 
Exchange Rule 2606(b), and the STP functionality must be used in a 
manner consistent with just and equitable principles of trade.\16\ For 
these reasons, the Exchange believes the proposed new Equity Member 
Affiliate level of STP grouping offers Equity Members enhanced order 
processing functionality that may prevent potentially undesirable 
executions without negatively impacting broker-dealer best execution 
obligations.
---------------------------------------------------------------------------

    \16\ See Exchange Rule 2100.
---------------------------------------------------------------------------

Implementation
    The Exchange will issue a trading alert publicly announcing the 
implementation date of this proposed rule change to provide Equity 
Members with adequate time to prepare for the associated technological 
changes. The Exchange anticipates that the implementation date will be 
in the fourth quarter of 2023.
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. Additionally, the Exchange 
believes the proposed rule change is consistent with the Section 
6(b)(5) \19\ requirement that the rules of an exchange not be designed 
to permit unfair discrimination between customers, issuers, brokers, or 
dealers.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(5).
    \19\ Id.
---------------------------------------------------------------------------

    Specifically, the Exchange believes that the proposed rule change 
is consistent with the protection of investors and the public interest 
because allowing Users that access the Exchange through a direct 
connection and also access the Exchange through Sponsored Access to be 
part of the same STP group will provide Equity Members with additional 
flexibility with respect to how they implement self-trade protections 
provided by the Exchange that may better support their trading 
strategies and compliance controls. Equity Members that prefer the 
current anti-internalization groupings offered by the Exchange can 
continue to use them without any modification.
    In particular, the Exchange believes that the proposed Multiple 
Access level STP functionality promotes just and equitable principles 
of trade by allowing individual firms to better manage order flow and 
prevent undesirable trading activity such as wash sales or self- trades 
that may occur as a result of the velocity of trading in today's high-
speed marketplace. The proposed Multiple Access identifier and 
description of eligibility to utilize the proposed Multiple Access 
identifier does not introduce any new or novel functionality, as the 
proposed amendment does not seek to change the underlying STP 
functionality, but merely extends the current STP functionality to 
another trading relationship. For instance, a User may operate trading 
desk 1 that accesses the Exchange via the User's direct connection, as 
well as trading desk 2 that accesses the Exchange as a sponsored 
participant. While these desks may operate different trading 
strategies, a User may desire to prevent these desks from trading 
versus each other in the marketplace because the orders are originating 
from the same entity. Here, Users may desire STP functionality on a 
Multiple Access level that will help them avoid unintended executions 
to achieve compliance \20\ with regulatory rules regarding wash sales 
and self-trades in a very similar manner to the way that the current 
STP functionality applies on the existing Unique Identifier level. In 
this regard, the proposed Multiple Access level STP functionality will 
permit individual firms associated with different Users for purposes of 
submitting orders to the Exchange in a different manner to prevent the 
execution of transactions by and between the Users. The Exchange also 
believes that the proposed rule change is fair and equitable and is not 
designed to permit unfair discrimination as use of the proposed STP 
functionality is available to all Users that meet the criteria and is 
optional, and its use is not a prerequisite for trading on the 
Exchange.
---------------------------------------------------------------------------

    \20\ The Exchange reminds Users that while they may utilize STP 
to help prevent potential transactions such as wash sales or self-
trades, Users, not the Exchange, are ultimately responsible for 
ensuring that their orders comply with applicable rules, laws, and 
regulations.
---------------------------------------------------------------------------

    Finally, the Exchange notes other equity exchanges recently amended 
their rules to allow similar groupings for their own anti-
internalization functionality.\21\ Consequently, the Exchange does not 
believe that the proposed rule change raises any new or novel issues 
not already considered by the Commission.
---------------------------------------------------------------------------

    \21\ See supra note 4.
---------------------------------------------------------------------------

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. STP is an optional 
functionality offered by the Exchange and Users are free to decide 
whether to use STP in their decision-making process when submitting 
orders to the Exchange.
    The Exchange believes that the proposed Multiple Access identifier 
does not impose any burden on intramarket competition as it seeks to 
enhance an existing functionality available to all Users. The Exchange 
is not proposing to introduce any new or novel functionality, but 
rather is proposing to provide an extension of its existing STP 
functionality to individual firms who choose to access the System

[[Page 67845]]

through both a direct connection and through Sponsored Access. 
Additionally, the proposed rule specifies which Users are eligible to 
use the Multiple Access identifier and will be available to any User 
who satisfies such criteria. STP will continue to be an optional 
functionality offered by the Exchange and the addition of Multiple 
Access level STP will not change how the current Unique Identifiers and 
STP functionality operate.
    The Exchange believes that the proposed Multiple Access identifier 
does not impose any undue burden on intermarket competition. STP is an 
optional functionality offered by the Exchange and Users are not 
required to use STP functionality when submitting orders to the 
Exchange. Further, the Exchange is not required to offer STP and is 
choosing to do so as a benefit for Users who wish to enable STP 
functionality. Moreover, the proposed change is not being submitted for 
competitive reasons, but rather to provide Users enhanced order 
processing functionality that may prevent undesirable executions by 
affiliated Users such as wash sales or self-trades. Nonetheless, the 
proposed rule change would also improve the Exchange's ability to 
compete with other exchanges that recently amended their rules to allow 
Multiple Access identifier grouping for their own anti-internalization 
functionality.\22\
---------------------------------------------------------------------------

    \22\ 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

    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)(iii) of the Act \23\ and Rule 
19b-4(f)(6) thereunder.\24\
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \24\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires the Exchange 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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \25\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, Rule 19b-4(f)(6)(iii) \26\ permits the Commission to 
designate a 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 proposal 
may become operative immediately upon filing. Waiver of the 30-day 
operative delay will allow the Exchange to immediately offer individual 
firms with Users that access the Exchange through a direct connection 
and through Sponsored Access functionality to better manage order flow 
and prevent undesirable executions, to help ensure compliance with 
securities laws relating to potentially manipulative trading activity 
such as wash sales and self-trades. Further, the Commission notes that 
this proposed rule change would permit functionality on the Exchange 
currently available on other exchanges \27\ and as such, does not raise 
any novel legal or regulatory issues. For these reasons, the Commission 
believes that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest. Therefore, the 
Commission hereby waives the 30-day operative delay and designates the 
proposal operative upon filing.\28\
---------------------------------------------------------------------------

    \25\ Id.
    \26\ 17 CFR 240.19b-4(f)(6)(iii).
    \27\ See supra note 4.
    \28\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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 (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-PEARL-2023-48 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-2023-48. 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 (https://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 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection. All 
submissions should refer to file number SR-PEARL-2023-48 and should be 
submitted on or before October 23, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\29\
---------------------------------------------------------------------------

    \29\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-21620 Filed 9-29-23; 8:45 am]
BILLING CODE 8011-01-P


