[Federal Register: June 25, 2009 (Volume 74, Number 121)]
[Rules and Regulations]
[Page 30211]
[DOCID:fr25jn09-2]

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SECURITIES AND EXCHANGE COMMISSION

17 CFR Parts 210 and 229

[Release Nos. 33-8934A; 34-58028A; File No. S7-06-03]
RIN 3235-AJ64

Technical Amendment; Internal Control Over Financial Reporting in
Exchange Act Periodic Reports of Non-Accelerated Filers

AGENCY: Securities and Exchange Commission.

ACTION: Final rules; technical amendment.

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SUMMARY: We are extending the effectiveness of Sec.  210.2-02T
published in 71 FR 47059 (August 15, 2006) and Sec.  229.308T published
in 71 FR 76595 (December 21, 2006) and amended in 73 FR 38099 (July 2,
2008) through June 30, 2010. The effective dates for the other sections
of the July 2, 2008 document remain as published.

DATES: Effective Date: The effectiveness of Sec. Sec.  210.2-02T and
229.308T, which currently terminates on June 30, 2009, is extended
through June 30, 2010.

FOR FURTHER INFORMATION CONTACT: Sean Harrison, Special Counsel, Office
of Rulemaking, Division of Corporation Finance, at<PHONE_NUMBER>, U.S.
Securities and Exchange Commission, 100 F Street, NE., Washington, DC
20549-3628.

SUPPLEMENTARY INFORMATION: This technical amendment does not affect the
effective date for compliance by a non-accelerated filer with the rules
implementing Section 404(b) of the Sarbanes-Oxley Act of 2002. Under
the amendments previously adopted in Release No. 33-8934, a non-
accelerated filer is required to file the auditor's attestation report
on internal control over financial reporting when it files an annual
report for a fiscal year ending on or after December 15, 2009. The sole
purpose of this technical amendment is to provide that the amendments
previously adopted in Release No. 33-8934 that currently are set forth
in paragraph (b) of Rule 2-02T in Regulation S-X and in paragraph (c)
of Item 308T of Regulation S-K remain in the CFR.

    Dated: June 22, 2009.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-15014 Filed 6-24-09; 8:45 am]


[Federal Register Volume 86, Number 226 (Monday, November 29, 2021)]
[Notices]
[Pages 67774-67776]
[FR Doc No: 2021-25882]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93643; File No. SR-CboeEDGX-2021-048]

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing of a Proposed Rule Change To Amend Interpretation and Policy
.01 to Rule 11.10 in Connection With a Risk Setting That Users May
Elect To Apply to Their Orders in Hard To Borrow Securities

November 22, 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 18, 2021, Cboe EDGX Exchange, Inc. filed with the
Securities and Exchange 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

    Cboe EDGX Exchange, Inc. (``EDGX'' or the ``Exchange'') is filing
with the Securities and Exchange Commission (the ``Commission'') a
proposal to amend Interpretation and Policy .01 to Rule 11.10 in
connection with a risk setting that Users \3\ may elect to apply to
their orders in hard to borrow securities.

The text of the proposed rule change is provided in Exhibit 5.
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    \3\ A User is any Member or Sponsored Participant who is
authorized to obtain access to the System pursuant to Rule 11.10.
See Rule 1.5(ee).
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    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/options/regulation/rule_filings/edgx/), at the Exchange's Office of the Secretary, 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 this proposal is to amend Interpretation and Policy
.01 to Rule 11.10 to allow the Exchange to offer its Users a hard to
borrow risk setting (``Hard to Borrow List'') that Users may elect to
apply to their short sale orders in U.S. equity securities. Pursuant to
Interpretation and Policy .01 to Rule 11.10, the Exchange currently
offers certain optional risk settings applicable to a User's activities
on the Exchange. Specifically, Interpretation and Policy .01(d)
currently provides Users with controls to restrict the types of
securities transacted, including restricted securities and easy to
borrow securities, as well as restricting activity to test symbols
only. When utilized, these optional risk tools act as a risk filter by
evaluating a User's orders to determine whether the orders comply with
certain criteria established by the User.\4\
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    \4\ See Securities Exchange Act Release No. 34-88727 (April 22,
2020) 85 FR 23560 (April 28, 2020) (SR-CboeEDGA-2020-12).[sic]
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    The Exchange now proposes to amend Interpretation and Policy .01(d)
to Exchange Rule 11.10, to also include a Hard to Borrow List. Like the
existing risk settings, the proposed rule change offers Users an
optional tool to evaluate whether their orders comply with User
established criteria. Specifically, orders submitted in securities
included on a User's Hard to Borrow List will be rejected back to the
User.
    The Hard to Borrow List resides at a User's port level, a User-
specific logical session used to access the Exchange. Users may upload
a Hard to Borrow List to their preferred port(s) via a web-based
application programming interface. When uploaded to the port, Users may
apply the setting to some or all of the market-participant identifiers
(MPID) that they use to access the Exchange via the specified port. As
is the case with the Exchange's existing risk settings, the User, and
not the Exchange, will have the full responsibility for ensuring that
their orders comply with applicable securities rules, laws, and
regulations, and may not rely on the Hard to Borrow List for any such
purpose.\5\ Furthermore, use of the Hard to Borrow List does not
automatically constitute compliance with Exchange Rules. As is the case
with the Exchange's existing risk settings, the Exchange does not
believe that the use of the Hard to Borrow List can replace User-
managed risk management solutions.
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    \5\ See Securities and Exchange Commission Release No. 34-50103
(July 28 2004) 69 FR 48007 (August 6, 2004) (Final Rule: Short
Sales) at 48014, regarding hard to borrow lists and the locate
requirements under 17 CFR 242.203 (Regulation SHO Rule 203--
Borrowing and delivery requirements).
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    The Exchange proposes to make the risk setting available to its
Users upon request and will not require Users to utilize the Hard to
Borrow List. The Exchange will not provide preferential treatment to
Users using the Hard to Borrow List. However, the Exchange believes the
Hard to Borrow List will offer Exchange Users another option in
efficient risk management of its access to the Exchange. For instance,
the Hard to Borrow List may assist some Users in managing borrowing
costs for their short sale transactions. Generally, day over day
borrowing costs in hard to borrow securities may be costly, and while a
locate may be secured by a User prior to routing their short sale
transactions to the Exchange, borrowing costs may make such
transactions less desirable. By utilizing the Hard to Borrow List,
Users have a tool that enables them to manage their costs by rejecting
orders in such securities.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the requirements of Section 6(b) of the Act,\6\ in general, and Section
6(b)(5) of the Act,\7\ in particular, in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, to
remove impediments to, and perfect the 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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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    Specifically, the Exchange believes that the proposed rule change
is consistent with these principles because, like the current risk
settings, the Hard to Borrow List fosters competition by providing
another option in the efficient risk management of trading on the
Exchange. Users are free to use the Exchange's Hard to Borrow List, or
other risk management offerings.
    Moreover, as noted by the Commission, even when shares can be
borrowed short sellers may find it costly to borrow stock to enter or
maintain a short position.\8\ In this regard, the Hard to Borrow List
provides Users with a tool to help manage such costs by rejecting
orders in hard to borrow securities and thus providing a mechanism of
financial protection to Exchange Users.
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    \8\ See Staff of the U.S. Securities and Exchange Commission,
Staff Report on Equity And Options Market Structure Conditions in
Early 2021, (October 14, 2021) at 30, footnote 84.
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    The proposed rule change also is designed to support the principles
of Section 11A(a)(1) \9\ in that it seeks to assure economically
efficient execution of securities transactions, makes it practicable
for brokers to execute investors' orders in the best market, and
provides an opportunity for investors' orders to be executed without
the participation of a dealer. Additionally, the rule proposal is
consistent with Section 11(a)(1) \10\ in that makes the Hard to Borrow
List available to all Users, regardless of their size.
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    \9\ 15 U.S.C. 78k-1(a)(1).
    \10\ 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 imposes
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. Rather, the proposed rule
change is not designed to address any competitive issues and does not
pose an undue burden on Users, as the Hard to Borrow List is an
optional risk setting offered to all Users.

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposal. No written comments were solicited or
received on the proposed rule change.

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 up to 90 days (i) as the
Commission may designate 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 will:
    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-CboeEDGX-2021-048 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-CboeEDGX-2021-048. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeEDGX-2021-048 and should be
submitted on or before December 20, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-25882 Filed 11-26-21; 8:45 am]
BILLING CODE 8011-01-P