[Federal Register Volume 87, Number 41 (Wednesday, March 2, 2022)]
[Notices]
[Pages 11739-11748]
[FR Doc No: 2022-04211]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94301; File No. SR-PEARL-2022-06]

Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Rule
2617(b) To Adopt Two New Routing Options, and To Make Related Changes
and Clarifications to Rules 2614(a)(2)(B) and 2617(b)(2)

February 23, 2022.
    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 February 15, 2022, MIAX PEARL, LLC
(``MIAX Pearl'' 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 is filing a proposed rule change to amend Exchange
Rule 2617(b), Routing to Away Trading Centers, to: (i) Adopt two new
routing options called Route to Primary Auction (``PAC'') and Price
Improvement (``PI''); and (ii) make related changes and clarifications
to Exchange Rules 2614(a)(2)(B) and 2617(b)(2).
    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 amend Exchange Rule
2617(b), Routing to Away Trading Centers, to adopt two new routing
options called PAC and PI that would be available to orders in equity
securities traded on the Exchange's equity trading platform (referred
to herein as ``MIAX Pearl Equities''). Both of the proposed routing
options are based on similar functionality offered at other equity
exchanges.\3\ The Exchange also proposes to make related changes and
clarifications to Exchange Rules 2614(a)(2)(B) and 2617(b)(2).
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    \3\ The PAC routing option is based on Cboe BZX Exchange, Inc.
(``BZX'') Rule 11.13(b)(3)(N) (describing the ROOC routing option),
Cboe EDGX Exchange, Inc. (``EDGX'') Rule 11.11(g)(8) (describing the
ROOC routing option), and The Nasdaq Stock Market LLC (``Nasdaq'')
Rule 4758(a)(1)(A)(x) (describing the LIST routing option). The PI
routing option is based on BZX Rule 11.13(b)(3)(G) (describing the
Route To Improve (``RTI'') routing option) and EDGX Rule
11.11(g)(12) (describing the RTI routing option).
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    The Exchange offers its Equity Members \4\ optional routing
functionality that allows them to use the Exchange to access liquidity
on other trading centers. The functionality includes routing algorithms
that determine the destination or pattern of routing. Exchange Rule
2617(b)(5) sets forth that there is a particular pattern of routing to
other trading centers, known as the ``System routing table'', as well
as setting forth the Exchange's available routing option. All routing
is designed to be conducted in a manner consistent with Regulation NMS.
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    \4\ The term ``Equity Member'' is a Member authorized by the
Exchange to transact business on MIAX Pearl Equities. See Exchange
Rule 1901.
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PAC Routing Option
    In sum, the PAC routing option would enable an Equity Member to
designate that their order be routed to the primary listing market to
participate in the primary listing market's opening, re-opening or
closing process. Proposed Exchange Rule 2617(b)(5)(B) would describe
PAC as a routing option for Market Orders \5\ and displayed Limit
Orders \6\ designated with a time-in-force of Regular Hours Only
(``RHO'') \7\ that the entering firm wishes to designate for
participation in the opening, re-opening (following a regulatory halt,
suspension, or pause), or closing process \8\ of a primary listing
market (BZX, the New York Stock Exchange LLC (``NYSE''), Nasdaq, NYSE
American LLC (``NYSE American''), or NYSE Arca, Inc. (``NYSE Arca''))
if received before the opening, re-opening, or closing process of such
market.\9\
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    \5\ See Exchange Rule 2614(a)(2).
    \6\ See Exchange Rule 2614(a)(1).
    \7\ Exchange Rule 2614(b)(2) defines ``Regular Hours Only'' or
``RHO'' as ``[a]n order that is designated for execution only during
Regular Trading Hours, which includes the Opening Process for equity
securities. An order with a time-in-force of RHO entered into the
System before the opening of business on the Exchange as determined
pursuant to Exchange Rule 2600 will be accepted but not eligible for
execution until the start of Regular Trading Hours.''
    \8\ As described further below, the Exchange does not propose to
route Market Orders to the primary listing market's closing process.
    \9\ The Exchange notes that proposed Exchange Rule 2617(b)(5)(B)
differs from BZX Rule 11.13(b)(3)(N) and EDGX Rule 11.11(g)(8) in
three primary ways. First, proposed Exchange Rule 2617(b)(5)(B)
would specify that the PAC routing option is limited to Market
Orders and displayed Limit Orders while both BZX and EDGX rules do
not include that level of specificity. However, the Exchange
believes this is consistent with BZX and EDGX functionality. Second,
proposed Exchange Rule 2617(b)(5)(B) would specify that an order
coupled with the PAC routing option would only route to the re-
opening following a regulatory halt, while BZX and EDGX refer to
halts generally. Third, both BZX and EDGX require that an order be
received before the primary listing market's opening, re-opening, or
closing time, but do not specify whether that order must be received
prior to the primary listing market's order entry cut-off time or
how and when orders are routed to the primary listing market to
participate in their opening, re-opening, or closing process.
Proposed Exchange Rule 2617(b)(5)(B) would provide additional
specificity as to when an order coupled with the PAC routing option
would be routed to participate in the primary listing market's
opening, re-opening, or closing process. The Exchange will continue
to route such orders to participate in the primary listing market's
opening, re-opening, or closing process after their order entry cut-
off time to increase the order's chances of participating in the
opening, re-opening, or closing process while also accounting for
the order entry cut-off time being changed/extended or where the
primary listing market continues to accept orders after their
established order entry cut-off time in accordance with their rules.
See infra note 22. If the primary listing market rejects or cancels
the order coupled with the PAC routing option for any reason, the
Exchange will pass any rejection or cancellation along to the Equity
Member that entered the order.
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    The following summarizes the operation of the PAC routing option
based on the order type and time-in-force selected. A more detailed
description of the operation of the proposed PAC routing option is
provided below.
     Only Market Orders and displayed Limit Orders designated
as RHO would be eligible for routing pursuant to the PAC routing
option.\10\
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    \10\ The Exchange believes this is consistent with operation of
the ROOC routing option on BZX and EDGX and the LIST routing option
on Nasdaq because none of those exchanges' rules state that any
returned unexecuted shares of an order routed to participate in a
primary listing market's opening, closing, or re-opening process may
be cancelled upon receipt. The Exchange believes this implies that
BZX, EDGX, and Nasdaq only route ROOC or LIST orders, respectively,
with a time-in-force of RHO or its equivalent, and not as IOC. See
BZX Rule 11.13(b)(3)(N) and EDGX Rule 11.11(g)(8) (stating ``[i]f
shares remain unexecuted after attempting to execute in the opening,
re-opening, or closing process, they are either posted to the BZX
Book, executed, or routed to destinations on the System routing
table''). See also Nasdaq Rule 4758(a)(1)(A)(x) (describing Nasdaq's
LIST routing option and specifying that any returned shares are
posted to the book, thereby implying that Nasdaq does not route LIST
orders as IOC).
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     Market Orders and displayed Limit Orders designated as
Immediate-or-Cancel (``IOC'') \11\ would not be eligible for routing
pursuant to the PAC routing option.
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    \11\ See Exchange Rule 2614(b)(1).
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     Market Orders coupled with the PAC routing option
designated as IOC would be cancelled.\12\
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    \12\ An order that is cancelled is first accepted by the System
and then immediately cancelled back to the Member. An order that is
rejected is not accepted by the System and immediately returned to
the Member.

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     Market Orders coupled with the PAC routing option
designated as RHO would be eligible to be routed to participate in the
primary listing market's opening and re-opening process.
     Market Orders coupled with the PAC routing option
designated as RHO would not be eligible to be routed to participate in
the primary listing market's closing process and would be cancelled.
     Limit Orders coupled with the PAC routing option
designated as RHO would eligible to be routed to participate in the
primary listing market's opening, re-opening, and closing process.
     Limit Orders coupled with the PAC routing option
designated as IOC received before the security has opened on the
primary listing market would be cancelled.
     Limit Orders coupled with the PAC routing option
designated as IOC received during the time when the Exchange is routing
orders to participate in the primary listing market's re-opening
process would be rejected.
     Limit Orders coupled with the PAC routing option
designated as IOC received during continuous trading or during the time
when the Exchange is in the process of routing orders to participate in
the primary listing market's closing process would be routed pursuant
to the PI routing option, described below.
Time-in-Force Related Rule Changes
    The Exchange proposes certain changes to its time-in-force rules
related to its proposal to only route Market Orders and displayed Limit
Orders pursuant to the PAC routing option when such orders are
designated as RHO. The Exchange currently offers two time-in-force
instructions, IOC and RHO.
    Exchange Rule 2614(a)(2)(B) provides that ``[a] Market Order may
only include a time-in-force of IOC.'' The Exchange proposes to amend
Exchange Rule 2614(a)(2)(B) to provide that a Market Order may also
include a time-in-force of RHO only when coupled with the PAC routing
option. Exchange Rule 2614(a)(2)(B) would further be amended to specify
that all other Market Orders that include a time-in-force of RHO will
be rejected. The Exchange proposes to require that only incoming Market
Orders and Limit Orders designated as RHO will be eligible to be routed
pursuant to the PAC routing option.\13\
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    \13\ See supra note 9. Related changes with regard to Limit
Orders are not needed because Exchange Rule 2614(a)(1)(B) already
provides that ``[a] Limit Order may include a time-in-force of IOC
or RHO.''
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    As described in detail below, a Market Order coupled with the
proposed PAC routing option designated as RHO would be rejected if not
received: (i) Before the security has opened on the primary listing
market to be routed to participate in the primary listing market's
opening process; and (ii) after the announcement of a regulatory halt,
suspension, or pause to be routed to participate in the primary listing
market's re-opening process. Otherwise, a Market Order coupled with the
PAC routing option and designated as IOC would also be rejected.
Amending Exchange Rule 2614(a)(2)(B) to provide that a Market Order
coupled with the PAC routing option include a time-in-force of RHO is
necessary to ensure such orders are accepted by the System prior to the
opening. For example, the Exchange does not accept orders with a time-
in-force of IOC prior to 9:30 a.m. Eastern Time.\14\ Therefore, a
Market Order that is entered prior to 9:30 a.m. Eastern Time would need
to include a time-in-force of RHO to be accepted and eligible to be
routed to the primary listing market's opening process.
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    \14\ See Exchange Rule 2600(a).
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    The Exchange currently designates all routable orders as IOC when
routing such order to an away market, regardless of the time-in-force
included with the order upon entry. Exchange Rule 2617(b)(4) describes
this functionality and currently provides that the System will
designate Market Orders and marketable Limit Orders that are fully or
partially routed to an away Trading Center as IOC.\15\
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    \15\ As described herein, the Exchange proposes to amend
Exchange Rule 2614(a)(2)(B) to provide that a Market Order may also
include a time-in-force of RHO only when coupled with the PAC
routing option. See supra note 13 and accompanying paragraph.
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    To ensure that orders coupled with the PAC routing option are
eligible to participate in the primary listing market's opening, re-
opening, or closing process, the Exchange proposes to route Market
Orders and displayed Limit Orders designated as RHO upon entry with a
time-in-force accepted or required by the primary listing market.\16\
As such, the Exchange would convert an order's time-in-force to a time-
in-force accepted or required by the primary listing market when
necessary only for purposes of routing that order to an away market.
For example, an order in a Nasdaq listed security coupled with the PAC
routing option that includes a time-in-force of RHO would be routed as
IOC or ``On Close'' to participate in Nasdaq's closing process.\17\ The
Exchange would not alter the time-in-force of an order coupled with the
PAC routing option designated as RHO where the primary listing market
accepts orders designated as RHO to participate in its opening, re-
opening, or closing process.
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    \16\ See proposed Exchange Rule 26174(b)(5)(B).
    \17\ See, e.g., Nasdaq Rules 4702(b)(9)(A) (providing that
``[a]n LOO Order entered after 9:29:30 a.m. ET that is designated as
an IOC will be rejected''), and 4702(b)(11)(B) (stating that ``a
Participant may designate the Time-in-Force for an MOC Order either
by designating a Time-in-Force of ``On Close'' or by entering a
Time-in-Force of IOC and flagging the Order to participate in the
Nasdaq Closing Cross'').
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Routing to Primary Listing Market's Opening, Re-Opening, or Closing
Process
    Proposed Exchange Rule 2617(b)(5)(B)(1) would describe how an order
coupled with the PAC routing option operates when being routed to
participate in the primary listing market's opening, re-opening, or
closing process.
    Proposed Exchange Rule 2617(b)(5)(B)(1)(i) would describe when an
order designated as RHO and coupled with the PAC routing option may be
routed to participate in the primary listing market's opening and re-
opening processes. Specifically, proposed Exchange Rule
2617(b)(5)(B)(1)(i) would provide that a displayed Limit Order or
Market Order designated as RHO received before the security has opened
on the primary listing market will be routed to participate in the
primary listing market's opening process upon receipt.\18\ Proposed
Exchange Rule 2617(b)(5)(B)(1)(i) would further provide that a
displayed Limit Order designated as RHO will be routed to participate
in a primary listing market re-opening process upon the announcement of
a regulatory halt, suspension, or pause. A displayed Limit Order or
Market Order designated as RHO received after the announcement of a
regulatory halt, suspension, or pause, but before the time of a primary
listing market re-opening process would be routed to participate in a
primary listing market re-opening process upon receipt. Lastly,
proposed Exchange Rule 2617(b)(5)(B)(1)(i) would provide that a Market
Order designated as RHO not

received during times set forth above will be cancelled.
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    \18\ Like current functionality, an order coupled with the PAC
routing option that is also designated as IOC would be rejected if
entered before 9:30 a.m. Eastern Time because the Exchange does not
accept orders with a time-in-force of IOC prior to 9:30 a.m. Eastern
Time. See Exchange Rule 2600(a).
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    Proposed Exchange Rule 2617(b)(5)(B)(1)(i)(a) would describe how
the Exchange would handle the returned unexecuted quantity of a Limit
Order designated as RHO routed pursuant to the PAC routing option to
participate in the primary listing market's opening or re-opening
process. Specifically, proposed Exchange Rule 2617(b)(5)(B)(1)(i)(a)
would provide that any shares that remain unexecuted after attempting
to execute in the primary listing market's opening or re-opening
process will either be posted to the MIAX Pearl Equities Book,
executed, or routed pursuant to the PI routing option described
below.\19\ Because Limit Orders must be designated as RHO upon entry to
be routed pursuant to the PAC routing option, an Equity Member that
wants any returned unexecuted quantity of such order to be immediately
returned to them would need to submit an instruction to cancel any
unexecuted shares upon their return to the Exchange.
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    \19\ This is consistent with the ROOC routing option available
on BZX and EDGX which provides that ``[i]f shares remain unexecuted
after attempting to execute in the opening, re-opening, or closing
process, they are either posted to the BZX Book, executed, or routed
to destinations on the System routing table.'' See BZX Rule
11.13(b)(3)(N) and EDGX Rule 11.11(g)(8).
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    Proposed Exchange Rule 2617(b)(5)(B)(1)(i)(b) would describe how
the Exchange would handle the returned unexecuted quantity of any
Market Order designated as RHO routed pursuant to the PAC routing
option to participate in the primary listing market's opening or re-
opening process. Today, the Exchange cancels the returned unexecuted
quantity of routed Market Orders pursuant to Exchange Rule 2614(a)(2).
The same would be true for a Market Order designated as RHO that is
routed away pursuant to the PAC routing option. Proposed Exchange Rule
2617(b)(5)(B)(1)(i)(b) provides that any shares of a Market Order that
remain unexecuted after attempting to execute in the primary listing
market's opening or re-opening process will be cancelled.
    Proposed Exchange Rule 2617(b)(5)(B)(1)(ii) would describe when an
order coupled with the PAC routing option would be routed to
participate in the primary listing market's closing process. The
Exchange only proposes to route Limit Orders coupled with the PAC
routing option and designated as RHO to participate in the primary
listing market's closing process. Market Orders would not be eligible
to be routed pursuant to the PAC routing option to participate in the
primary listing market's closing process, as discussed more below.
Proposed Exchange Rule 2617(b)(5)(B)(1)(ii)(a) would provide that Limit
Orders designated as RHO will be routed pursuant to the PAC routing
option to participate in the primary listing market's closing process
prior to the primary listing market's order entry cut-off time.\20\
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    \20\ The Exchange will publicly announce the initial time at
which it would route Limit Orders to participate in the primary
listing market's closing process and any updates via a regulatory
circular or alert. Unexecuted shares of a Limit Order that are
routed to participate in the primary listing market's closing
process will be cancelled.
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    Proposed Exchange Rule 2617(b)(5)(B)(1)(ii)(a) does not provide a
deadline for order entry because the Exchange will continue to route
Limit Orders designated as RHO to participate in the primary listing
market's opening, re-opening, or closing process after their order
entry cut-off time. In addition, proposed Exchange Rule
2617(b)(5)(B)(1)(ii)(a) would provide that if a Limit Order designated
as RHO is received at or after the time the Exchange begins to route
orders to participate in the primary listing market's closing process,
but before market close, the Exchange will check the System for
available shares and then route the remaining shares to participate in
the primary listing market's closing process.\21\ This is intended to
provide Equity Members with increased opportunities to participate in
the primary listing market's closing process while also accounting for
whether the order entry cut-off time is changed/extended or should the
primary listing market continue to accept orders after their
established order entry cut-off time in accordance with their
rules.\22\ If the primary listing market rejects or cancels the Limit
Order routed pursuant to the PAC routing option for any reason, the
Exchange will pass any rejection or cancellation along to the Equity
Member that entered the order. Equity Members that seek greater
certainty that their Limit Orders coupled with the PAC routing option
would participate in the closing process at the primary listing market
may enter their orders prior to the primary listing market's order
entry cut-off time.
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    \21\ The Exchange notes that the portion of a Limit Order
designated as RHO not executed in the primary listing market's
closing process will be cancelled because the Exchange does not
currently provide an afterhours trading session or time-in-force
instruction that extends past Regular Trading Hours.
    \22\ See, e.g., NYSE Rule 7.35B(f)(1)(B) (providing for the
entry of orders after the order entry cut-of time in the event a
Regulatory Closing Imbalance is published). See, e.g., BZX Rules
11.23(b)(1)(A) (providing for the entry of Late Limit On Open Orders
until 9:30 a.m.), (c)(1)(A) (providing for the entry of Late Limit
On Close orders up until 4:00 p.m.); and (d)(1)(C) (Incremental
Quote Period Extensions For Halt Auctions Following a Regulatory
Halt). The Exchange notes that this differs from BZX Rule
11.13(b)(3)(N) and EDGX Rule 11.11(g)(8). See supra note 9. This
behavior is also similar to Nasdaq's LIST routing option that will
continue to route orders to participate in the primary listing
market's closing process after its order entry cut-off time. See
Nasdaq Rule 4758(a)(1)(A)(x) (stating that ``[i]f a LIST order is
received at or after a time that is two minutes before market close
but before market close, Nasdaq will check the System for available
shares and simultaneously route the remaining shares to destinations
on the System routing table; remaining shares will be routed to the
security's primary listing market to participate in its closing
process.'').
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    Market Orders coupled with the PAC routing option would not be
eligible for routing to the primary listing market's closing process.
Proposed Exchange Rule 2617(b)(5)(B)(1)(ii)(b) would, therefore,
provide that a Market Order designated as RHO would not be eligible to
be routed to participate in the primary listing market's closing
process. Proposed Exchange Rule 2617(b)(5)(B)(1)(ii)(b) would further
provide that a Market Order designated as RHO received at or after the
time the Exchange begins to route existing orders to participate in the
primary listing market's closing process, but before market close, will
be cancelled.
    The Exchange understands that Equity Members do not plan to utilize
Market Orders to participate in the primary listing market's closing
process because they would prefer to enter Limit Orders for purposes of
participating in the price discovery process conducted by the primary
listing market's closing process.\23\ Therefore, the Exchange does not
propose to accept Market Orders for purposes of routing them to a
primary listing market's closing process. The Exchange seeks to make
clear in its proposed rules how a Market Order coupled with the PAC
routing option would be handled should an Equity Member mistakenly
enter such an order when the Exchange is in the process of routing
orders to participate in the primary listing market's closing process.
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    \23\ The Exchange would submit a proposed rule change to route
Market Orders to participate in the primary listing market's closing
process should Equity Members request such a change.
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Continuous Trading
    Proposed Exchange Rule 2617(b)(5)(B)(2) would describe how an order
coupled with the PAC routing option would operate during continuous
trading when the Exchange is not in the process of routing orders
pursuant to the PAC routing option to participate in the primary
listing market's re-opening or closing process.

    Specifically, proposed Exchange Rule 2617(b)(5)(B)(2)(i) would
describe the handling of Limit Orders coupled with the PAC routing
option designated as RHO during continuous trading and provide that if
the order is entered after the security has opened on the primary
listing market, before being routed to the primary listing market's re-
opening or closing process pursuant to proposed Exchange Rule
2617(b)(5)(B)(1)(i) described above, the Exchange will check the System
\24\ for available shares and then route the remaining shares pursuant
to the PI routing option,\25\ described below.\26\ As a result, a Limit
Order coupled with the PAC routing option that is designated as RHO
would be treated how a re-routable Limit Order is treated today during
continuous trading; i.e., it would be eligible: (i) First for execution
locally on the MIAX Pearl Equities Book; and then (ii) any remaining
share would be routed away to better priced away interest pursuant to
the proposed PI routing option described below.
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    \24\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
    \25\ A Limit Order coupled with the PAC routing option would
only be defaulted to the proposed PI routing option and will not be
eligible to be coupled with any other routing option.
    \26\ Proposed Exchange Rule 2617(b)(5)(B)(2) is based on Nasdaq
Rule 4758(a)(1)(A)(x), which describes how their LIST routing option
operates during continuous trading. See Nasdaq Rule 4758(a)(1)(A)(x)
(providing that ``if a LIST order is entered after the security has
opened on the primary listing market (but before a time that is two
minutes before market close) and the order has not been designated
to participate in the opening only, Nasdaq will check the System for
available shares and simultaneously route the remaining shares to
destinations on the System routing table . . .'').
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    Proposed Exchange Rule 2617(b)(5)(B)(2)(i)(a) would describe how
any unexecuted portion of a Limit Order designated as RHO and coupled
with the PAC routing option that is routed pursuant to the PI routing
option during continuous trading would be handled. Specifically,
proposed Exchange Rule 2617(b)(5)(B)(2)(i)(a) would provide that any
shares that remain unexecuted after routing will be either posted to
the MIAX Pearl Equities Book, executed, or routed pursuant to the PI
routing option, described below.\27\
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    \27\ Proposed Exchange Rule 2617(b)(5)(B)(2)(i) is based on BZX
Rule 11.13(b)(3)(N) and EDGX Rule 11.11(g)(8).
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    Proposed Exchange Rule 2617(b)(5)(B)(2)(ii) would describe the
handling of Limit Orders coupled with the PAC routing option designated
as IOC during continuous trading. As set forth above, a Limit Order
coupled with the PAC routing option that is designated as IOC would not
be eligible to be routed pursuant to the PAC routing option. However,
such order would be eligible to be routed pursuant to the proposed PI
routing option. This functionality would be described under proposed
Exchange Rule 2617(b)(5)(B)(2)(ii), which would provide that if a Limit
Order designated as IOC is entered after the security has opened on the
primary listing market, the Exchange will check the System for
available shares and then route the remaining shares pursuant to the PI
routing option described below. Any shares that remain unexecuted after
routing will be cancelled in accordance with the terms of the order.
    Proposed Exchange Rule 2617(b)(5)(B)(2)(ii)(a) would provide that a
Limit Order coupled with the PAC routing option designated as IOC
received during the time when the Exchange is in the process of routing
orders to the primary listing market's re-opening process will be
rejected. Such order would not be routed pursuant to the PI routing
option because trading in the security would be halted pending the
primary listing market conducting its re-opening process.
    Proposed Exchange Rule 2617(b)(5)(B)(2)(iii) would describe the
handling of Market Orders designated as RHO that are coupled with the
PAC routing option during continuous trading. Specifically, proposed
Exchange Rule 2617(b)(5)(B)(2)(iii) would provide that a Market Order
designated as RHO that is entered after the security has opened on the
primary listing market would be routed to participate in the primary
listing market's re-opening process pursuant to the PAC routing option
in accordance with proposed Exchange Rule 2617(b)(5)(B)(1), which is
described above. In sum, a Market Order designated as RHO received
after the announcement of a regulatory halt, suspension, or pause, but
before the time of a primary listing market re-opening process would be
routed to participate in a primary listing market re-opening process
upon receipt. A Market Order designated as RHO not received during
times set forth above would be cancelled.
    Lastly, proposed Exchange Rule 2617(b)(5)(B)(2)(iv) would provide
that a Market Order coupled with the PAC routing option that is
designated as IOC entered after the security has opened on the primary
listing market will be cancelled. As discussed above, the Exchange will
only route Market Orders pursuant to the PAC routing option when
designated as RHO. As such, a Market Order would not be eligible to be
routed pursuant to the PAC routing option when designated as IOC. Nor
does the Exchange propose that Market Orders be eligible for routing
pursuant to the proposed PI routing option, discussed below. The
proposed rule text is intended to provide completeness within the
Exchange's rules regarding how Market Orders coupled with the PAC
routing option would be handled when designated as IOC.
Routing During Short Sale Period
    The Exchange also proposes to make a related change to Exchange
Rule 2617(b)(2) to describe the routing of orders coupled with the PAC
routing option during a Short Sale Period, as defined in Exchange Rule
2614(g)(3)(A).\28\ Exchange Rule 2617(b)(2) currently provides that an
order marked ``short'' is not eligible for routing by the Exchange
during a Short Sale Period. The Exchange proposes to amend Exchange
Rule 2617(b)(2) to provide for the routing of an order marked ``short''
where that order is being routed to participate in the primary listing
market's opening, re-opening, or closing process pursuant to the PAC
routing option.\29\ Specifically, as amended, Exchange Rule 2617(b)(2)
would provide that ``[u]nless an order is routed pursuant to the PAC
routing option set forth under paragraph (b)(5) of this Rule, an order
marked `short' is not eligible for routing by the Exchange during a
Short Sale Period, as defined in Exchange Rule 2614(g)(3)(A).'' \30\
The Exchange notes that an order coupled with the PAC routing option
that is also marked ``short'' would remain ineligible for routing
during a Short Sale Period where that order would be routed

pursuant to the PI routing option, described below.
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    \28\ Exchange Rule 2614(g)(3)(A) generally defines a Short Sale
Period as the time during which a short sale price test restriction
under Rule 201 of Regulation SHO is in effect.
    \29\ Rules 201(b)(1)(i) and (ii) of Regulation SHO generally
require that trading centers such as the Exchange establish,
maintain, and enforce written policies and procedures reasonably
designed to: (i) Prevent the execution or display of a short sale
order of a covered security at a price that is less than or equal to
the current national best bid if the price of that covered security
decreases by 10% or more from the covered security's closing price;
and (ii) impose this price restriction for the remainder of the day
and the following day. To maintain compliance with Rule 201 of
Regulation SHO, an exchange may only execute short sale orders
(i.e., those not marked short exempt) if the execution would take
place at a permissible price pursuant to Regulation SHO.
Specifically, if a security is in a Short Sale Period, an order
marked short that is routed pursuant to the proposed PAC routing
option may only trade in the opening, re-opening, or closing process
if the process price is above the national best bid.
    \30\ The Exchange notes that proposed amended Exchange Rule
2617(b)(2) is based on BZX Rule 11.13(b)(1) and EDGX Rule 11.11(a)
with regard to their ROOC routing option.
---------------------------------------------------------------------------

    The Exchange further notes that Equity Members must continue to
ensure that their orders are marked in accordance with the requirements
of Regulation SHO and Exchange Rule 2623 \31\ and that it is the
primary listing market's obligation to ensure that an order marked
short that is routed by the Exchange to participate in its opening, re-
opening, or closing process is executed in accordance with the price
restrictions of Regulation SHO.\32\
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    \31\ Exchange Rule 2623 provides that ``[a]ll short sale orders
shall be identified as `short' or `short exempt' when entered into
the System. If marked `short exempt,' the Exchange shall execute,
display and/or route a short sale order marked without regard to any
short sale price test restriction in effect during a Short Sale
Period, as defined in Exchange Rule 2614(g)(3)(A). The Exchange
relies on the marking of an order as `short exempt,' when handling
such order, and thus, it is the entering Equity Member's
responsibility, not the Exchange's responsibility, to comply with
the requirements of Regulation SHO relating to marking of orders as
`short exempt,' ' Exchange Rule 2603 also requires that Equity
Members input accurate information into the System.
    \32\ Any remaining unexecuted shares returned to the Exchange
after routing will be handled and executed by the Exchange in
accordance with the price restrictions of Regulation SHO.
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PI Routing Option
    Proposed Exchange Rule 2617(b)(5)(C) would describe the PI routing
option as a routing option that will route a Limit Order coupled with
the PAC routing option to multiple destinations simultaneously at a
single price level.\33\ Limit Orders routed pursuant to the PI routing
option would be designated as IOC in accordance with current Exchange
Rule 2617(b)(4)(B). Like the proposed PAC routing option, the PI
routing option is based on the rules of other equity exchanges.\34\
Proposed Exchange Rule 2617(b)(5)(C) would further provide that PI
would not be an independent routing option and may not be selected
individually upon order entry. As discussed more fully below, the
proposed PI routing option would only be available to displayed Limit
Orders coupled with the PAC routing option. Such orders would be
eligible to be routed pursuant to the proposed PI routing option when:
(i) Designated as RHO and entered during continuous trading and when
the Exchange is not in the process of routing orders pursuant to the
PAC routing option; or (ii) designated as IOC and entered during
continuous trading.\35\
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    \33\ This differs from the Exchange's existing Order Protection
routing option, which routes orders to multiple destinations at
multiple price levels simultaneously. See Exchange Rule
2617(b)(5)(A).
    \34\ The PI routing option is based on the Route to Improve
(``RTI'') routing option available on EDGX which provides that ``RTI
may route to multiple destinations at a single price level
simultaneously . . .''. See EDGX Rule 11.11(g)(12). See also BZX
Rule 11.13(b)(3)(G).
    \35\ The proposed PI routing option would not be available to a
Market Order coupled with the PAC routing option that is designated
as RHO because such order is not accepted during continuous trading,
as described above.
---------------------------------------------------------------------------

    Proposed Exchange Rule 2617(b)(5)(C)(i) would provide that a
displayed Limit Order designated as RHO and coupled with the PAC
routing option would automatically be coupled by the System with the PI
routing option.\36\ In other words, an Equity Member that elects the
PAC routing option also elects that its displayed Limit Order
designated as RHO be subject to the PI routing option during continuous
trading when not being routed to participate in the primary listing
market's re-opening or closing process.
---------------------------------------------------------------------------

    \36\ This is consistent with the ROOC and RTI routing option
available on EDGX which provides that ``[a] User may select either
Route To Improve (`RTI') . . . for the following routing options:
ROOC . . . .'' See id. The only difference between the Exchange's
proposal and EDGX Rule 11.11(g)(12) is that on EDGX the coupling of
the ROOC and RTI routing options is elective while the Exchange
proposes to always include the PI routing option when the PAC
routing is elected.
---------------------------------------------------------------------------

    The following example illustrates the operation of the PI routing
option. Assume the Exchange receives a displayed Limit Order designated
as RHO to buy 300 shares at $10.00 during continuous trading and the
Equity Member selected the PAC routing option (``Order 1'') and there
are no orders resting on the MIAX Pearl Equities Book. Exchange A's
best displayed offer is $9.99 for 100 shares, Exchange B's best
displayed offer is also $9.99 for 100 shares, and Exchange C's best
displayed offer is $10.00 for 100 shares. During continuous trading,
Order 1 is subject to the PI routing option and would be routed as
follows: 100 shares are routed to Exchange A and 100 shares are routed
to Exchange B at $9.99. Assume that Order 1 executes against Exchange A
and B's best displayed offers at $9.99 exhausting that price level.
Exchanges A and B update their best displayed offers to $10.01 for 100
shares and $10.02 for 100 shares, respectively. Exchange C is now the
best displayed offer at $10.00 for 100 shares. The remaining 100 shares
of Order 1 would then be routed to Exchange C to execute 100 shares at
$10.00.
    The proposed PI routing option would also be available to Limit
Orders designated as IOC. However, because the PI routing option is not
a standalone routing option, Equity Members would be required to couple
such orders with the PAC routing option and enter them during
continuous trading. This functionality would be described under
proposed Exchange Rule 2617(b)(5)(C)(ii), which would provide that a
Limit Order designated as IOC that is coupled with the PAC routing
option received during continuous trading will automatically be
defaulted by the System to the PI routing option. As stated above, only
displayed Limit Orders designated as RHO would be eligible to be routed
pursuant to the proposed PAC routing option. Proposed Exchange Rule
2617(b)(5)(C)(ii) would, therefore, reiterate that Limit Orders
designated as IOC are not eligible to be routed pursuant the PAC
routing option. As a result, Limit Orders designated as IOC that are
eligible to be routed pursuant to the PI routing option will be routed
as such even during the time when the Exchange is in the process of
routing orders pursuant to the PAC routing option to participate in the
primary listing market's closing process.
    Equity Members that seek to utilize the PAC routing option, but not
the PI routing option, may submit a displayed Limit Order designated as
RHO coupled with the PAC routing option before the security opens on
the primary listing market or during the time at which the Exchange is
routing orders to participate in the primary listing market's re-
opening or closing processes and, in the case of an opening and re-
opening process, subsequently submit an instruction to cancel any
unexecuted shares upon their return to the Exchange.\37\ Conversely,
Equity Members that seek to utilize the PI routing option, but not the
PAC routing option may (i) enter a Limit Order coupled with both the
PAC routing option and time-in-force of IOC during continuous trading;
or (ii) enter a Limit Order coupled with both the PAC routing option
and time-in-force of RHO during continuous trading and cancel such
order prior to the time when the Exchange begins to route such orders
to participate in the primary listing market's re-opening or closing
process.\38\
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    \37\ See supra note 21. The unexecuted returned quantity of an
order routed to participate in the primary listing exchange's
closing process will be cancelled since the Exchange does not
currently provide an after-hours trading session.
    \38\ The Exchange believes this is consistent with functionality
on BZX and EDGX, which may allow for an order coupled with their RTI
routing option to include a time-in-force of IOC. The Exchange
believes this would allow such an order on BZX and EDGX to be routed
pursuant to the RTI routing option during continuous trading with
any returned shares being cancelled, thereby bypassing their ROOC
routing option. See EDGX Rule 11.11(g)(12) and BZX Rule
11.13(b)(3)(G) (not limiting the time-in-force instructions
available to be coupled with the RTI routing option).

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

Clarification to Exchange Rule 2617(b)(2)
    The Exchange also proposes a minor clarification to Exchange Rule
2617(b)(2). The second sentence of Exchange Rule 2617(b)(2) currently
provides that, ``[a]n order that is ineligible for routing during a
Short Sale Period that includes a time-in-force of IOC will be
cancelled upon entry.'' In all cases, a non-routable order designated
as IOC will first execute against contra-side interest on the MIAX
Pearl Equities Book and then be cancelled because it is not eligible
for routing and will never be posted to the MIAX Pearl Equities Book.
The Exchange proposes to amend the second sentence of Exchange Rule
2617(b)(2) to clarify that an order that is ineligible for routing
during a Short Sale Period that includes a time-in-force of IOC will
first execute against contra-side interest on the MIAX Pearl Equities
Book and then be cancelled. This change to Exchange Rule 2617(b)(2) is
designed to better align the rule with System functionality by
specifying that the order is first eligible for execution against
contra-side interest before being cancelled.
Implementation
    Due to the technological changes associated with this proposed
change, the Exchange will issue a trading alert publicly announcing the
implementation date of this proposed rule change to provide Equity
Members with adequate time to prepare for the associated technological
changes. The Exchange anticipates that the implementation date will be
in either the first or second quarter of 2022.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the
Act,\39\ in general, and furthers the objectives of Section
6(b)(5),\40\ 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. The proposed rule change
would remove impediments to a free and open market and promote just and
equitable principles of trade because it would provide market
participants, including institutional firms who ultimately represent
individual retail investors in many cases, with optional functionality
that would provide them with better control over their orders.
---------------------------------------------------------------------------

    \39\ 15 U.S.C. 78f(b).
    \40\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The proposed PAC routing option would promote just and equitable
principles of trade, facilitate transactions in securities, and remove
impediments to and perfect the mechanism of a free and open market and
a national market system because it would provide market participants
with additional optional access to the primary listing market's
opening, re-opening, and closing process. As a result, Equity Members
will have access to additional sources of liquidity, potentially
benefiting from improved execution prices and a more efficient
marketplace. Therefore, the Exchange believes the proposed rule change
will provide Equity Members with greater control and flexibility over
their routing of orders, thereby facilitating transactions in
securities and perfecting the mechanism of the national market system.
The Exchange also notes that use of its proposed routing options is
completely voluntary and no Equity Member is required to route orders
through the Exchange and may choose other methods to access liquidity
on other trading centers.
    The proposed PAC routing option would not impede the national
market system because it is not designed to disrupt the ability of the
primary listing market to conduct their opening, re-opening, and
closing processes. The proposed rule change is similar to existing
routing options already provided by other equity exchanges,\41\ which
the Exchange understands have not disrupted the primary listing
market's ability to conduct their opening, re-opening, or closing
processes. The proposed rule change would simply provide Equity Members
with another means to participate in the primary listing market's
opening, re-opening, and closing processes. The primary listing markets
are free to reject or cancel such orders should they deem them to be
inconsistent with their applicable rules.
---------------------------------------------------------------------------

    \41\ See supra notes 3 and 9.
---------------------------------------------------------------------------

    The Exchange further believes its proposal promotes just and
equitable principles of trade because the proposed operation of the
proposed routing options are well established in the equity markets and
are based on similar functionality at other equity exchanges.\42\ This
includes the Exchange's proposal to only route Market Orders and
displayed Limit Orders designated as RHO pursuant to the PAC routing
option because the Exchange believes this is consistent with operation
of the ROOC routing option on BZX and EDGX, and the LIST routing option
on Nasdaq.\43\
---------------------------------------------------------------------------

    \42\ Id.
    \43\ See supra note 9.
---------------------------------------------------------------------------

    While the proposed rule change does differ from similar
functionality at other exchanges, the Exchange does not believe any of
these differences are material. For example, the Exchange notes that
the proposed PAC routing option under Exchange Rule 2617(b)(5)(B) would
differ from BZX Rule 11.13(b)(3)(N) and EDGX Rule 11.11(g)(8) in three
primary ways. First, proposed Exchange Rule 2617(b)(5)(B) would specify
that the PAC routing option is limited to Market Orders and displayed
Limit Orders designated as RHO while both BZX and EDGX rules do not
include that level of specificity. However, the Exchange believes this
is consistent with BZX and EDGX functionality based on industry
feedback. The Exchange believes not allowing the PAC routing option to
be coupled with non-displayed Limit Orders is reasonable and consistent
with the use of the routing option. The Exchange understands that
potential users of the PAC routing option seek to improve the
likelihood of execution of their orders and better accomplish this goal
if their Limit Orders are displayed on the MIAX Pearl Equities Book.
    Second, proposed Exchange Rule 2617(b)(5)(B) would specify that the
PAC routing option would only route orders to the re-opening following
a regulatory halt, while BZX and EDGX refer to halts generally. The
Exchange believes this is not a material difference as most halts are
regulatory halts and specifying regulatory halts within the rule
provides additional specificity. The Exchange does not propose to route
orders with a PAC routing option for other types of halts, such as an
operational halt, because an operational halt indicates that the
primary listing market that issued the halt has indicated that they may
be experiencing a system issue across all or a subset of securities
that inhibits their ability to operate normally. Additionally, some
exchanges cancel all open orders as a result of an operational halt and
do not accept new orders while the operational halt is in effect and/or
do not conduct a re-opening process once the operational halt
concludes.\44\
---------------------------------------------------------------------------

    \44\ See, e.g., BZX Rule 11.23(d) (providing that BZX will
conduct a halt auction after a regulatory halt and not specifying an
operational halt).

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

    Third, both BZX and EDGX require that an order be received before
the primary listing market's opening, re-opening, or closing time, but
do not specify whether that order must be received prior to the primary
listing market's order entry cut-off time or how and when orders are
routed to the primary listing market to participate in their opening,
re-opening, or closing process. Proposed Exchange Rule 2617(b)(5)(B)
would provide additional specificity as to when an order would be
routed to participate in the primary listing market's opening, re-
opening, or closing process. The Exchange will continue to route orders
to participate in the primary listing market's opening, re-opening, or
(in the case of a displayed Limit Order) closing process after their
order entry cut-off time to increase the order's chances of
participating in the opening, re-opening, or closing process while also
accounting for the order entry cut-off time being changed/extended or
where the primary listing market continues to accept orders after their
established order entry cut-off time in accordance with their
rules.\45\ If the primary listing market rejects or cancels the order
coupled with the PAC routing option for any reason, the Exchange will
pass any rejection or cancellation along to the Equity Member that
entered the order via existing protocols. This behavior is also similar
to Nasdaq's LIST routing option that will continue to route orders to
participate in the primary listing market's closing process after its
order entry cut-off time.\46\ Equity Members that seek greater
certainty that their orders coupled with the PAC routing option would
participate in the opening, re-opening, or closing process at the
primary listing market may enter their orders prior to the primary
listing market's order entry cut-off time.
---------------------------------------------------------------------------

    \45\ See supra note 22.
    \46\ See Nasdaq Rule 4758(a)(1)(A)(x) (providing that ``[t]wo
minutes before market close, all LIST orders on the book will begin
routing to the security's primary listing market for participation
in its closing process. If a LIST order is received at or after a
time that is two minutes before market close but before market
close, Nasdaq will check the System for available shares and
simultaneously route the remaining shares to destinations on the
System routing table; remaining shares will be routed to the
security's primary listing market to participate in its closing
process.'').
---------------------------------------------------------------------------

    The Exchange also believes that not: (i) Accepting Market Orders
coupled with the PAC routing option during continuous trading; (ii)
making Market Orders eligible for routing pursuant to the proposed PI
routing option; and (iii) routing Market Orders coupled with the PAC
routing option to the primary listing market's closing process promotes
just and equitable principles of trade because the proposed treatment
is consistent with the Exchange's understanding of how Equity Members
would expect such orders to be handled. The treatment of Market Orders
coupled with the PAC routing option is being proposed in response to
industry feedback that Equity Members do not intend to enter Market
Orders with the PAC routing option during continuous trading or for
such orders to be routed to participate in a primary listing market's
closing process. The Exchange understands that Equity Members would
prefer to have such orders cancelled in the event they inadvertently
entered such order. This proposed functionality promotes just and
equitable principles of trade, and in general, protects investors and
the public interest because it provides specificity within the
Exchange's rules and aligns system functionality with how the Exchange
understands Members would expect their Market Orders would be handled
in such circumstances.
    Further, the Exchange proposes to require that Limit Orders coupled
with the PAC routing option are also automatically coupled with the PI
routing option. In other words, the PI routing option could not be
elected individually and without also electing the PAC routing option.
This is different than EDGX, which allows their ROOC routing option to
be coupled with their RTI routing option but does not require it. The
Exchange does not believe this is a material difference and does not
propose to offer the optionality to couple the PAC and PI routing
options at this time based on input from market participants. As stated
above, the Exchange understands that potential users of the PAC routing
option seek to improve the likelihood of execution of their Limit
Orders and better accomplish this goal if their orders are eligible for
routing pursuant to the PI routing option during continuous trading and
when the Exchange is not in the process of routing orders away pursuant
to the PAC routing option. Requiring that the PAC routing option be
coupled with the PI routing option would provide Equity Members with
increased price improvement opportunities during continuous trading
because their Limit Order would be eligible for routing to multiple
markets at the single best price level simultaneously. Equity Members
that seek to utilize the PAC routing option, but not the PI routing
option, may submit a Limit Order designated as RHO and coupled with the
PAC routing option before the security has opened on the primary
listing market or during the time at which the Exchange is routing
orders pursuant to the PAC routing option to participate in the primary
listing market's re-opening or closing process and, in the case of an
opening and re-opening process, subsequently to cancel any unexecuted
shares upon their return to the Exchange.\47\ Conversely, Equity
Members that seek to utilize the PI routing option, but not the PAC
routing option may (i) enter a Limit Order coupled with both the PAC
routing option and time-in-force of IOC during continuous trading; or
(ii) enter a Limit Order coupled with both the PAC routing option and
time-in-force of RHO during continuous trading and cancel such order
prior to the time when the Exchange begins to route such orders to
participate in the primary listing market's re-opening or closing
process.\48\ The Exchange believes providing a path for Members to
utilize the PI routing option, but not the PAC routing option, removes
impediments to a free and open market because it is consistent with
similar functionality available on other equity exchanges \49\ and
Members appreciate this consistency because it enables them to modify
their systems in a singular manner that accommodates similar
functionality across multiple exchanges.
---------------------------------------------------------------------------

    \47\ See supra note 21. The unexecuted returned quantity of an
order routed to participate in the primary listing exchange's
closing process will be cancelled since the Exchange does not
currently provide an after-hours trading session.
    \48\ See supra note 38.
    \49\ See supra note 38.
---------------------------------------------------------------------------

    By routing to a single price level at a time, the PI routing option
places more emphasis on maximizing price improvement for the order as
opposed to speed of execution. Therefore, the proposed PI routing
option promotes just and equitable principles of trade because it
provides Equity Members with additional flexibility when deciding how
their orders are to be routed by providing them the ability to seek out
better prices over the speed of execution. The proposed PI routing
option is also based on functionality offered by other equity
exchanges.\50\
---------------------------------------------------------------------------

    \50\ See EDGX Rule 11.11(g)(12). See also BZX Rule
11.13(b)(3)(G).
---------------------------------------------------------------------------

    The Exchange also believes its proposed related change to Exchange
Rule 2617(b)(2) to allow for the routing of orders coupled with the PAC
routing option during a Short Sale Period promotes just and equitable
principles of trade because it would provide such orders with increased
possibilities to participate in the primary listing

market's opening, re-opening, or closing process in the event of a
prolonged Short Sale Period. Further, this proposed change to Exchange
Rule 2617(b)(2) is not unique and is consistent with functionality
offered by other equity exchanges.\51\ Finally, the proposed
clarification to Exchange Rule 2617(b)(2) promotes just and equitable
principles of trade and protects investors and the public interest
because it better aligns the rule with System functionality by
specifying that the order is first eligible for execution against
contra-side interest before being cancelled.
---------------------------------------------------------------------------

    \51\ See BZX Rule 11.13(b)(1) and EDGX Rule 11.11(a) (regarding
their ROOC routing option).
---------------------------------------------------------------------------

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 proposed PAC routing option and related changes may
have a positive effect on competition because it will enable the
Exchange to offer functionality substantially similar to that offered
by BZX, EDGX, and Nasdaq.\52\ The same is true for the proposed PI
routing option which is also similar to functionality offered by EDGX
and BZX.\53\ The Exchange believes its lack of this functionality has
put it at a competitive disadvantage as market participants that seek
to have their orders eligible to be routed for improved price
improvement opportunities or to the primary listing markets' opening,
re-opening, or closing process have avoided sending orders to the
Exchange in favor of other exchanges that offer such functionality.
This proposal is designed to allow the Exchange to directly compete
with other exchanges that offer similar routing functionality. The
Exchange believes that its proposal promotes competition because it is
designed to attract liquidity to the Exchange by providing market
participants with additional routing functionality.
---------------------------------------------------------------------------

    \52\ See supra notes 3 and 9.
    \53\ See EDGX Rule 11.11(g)(12). See also BZX Rule
11.13(b)(3)(G).
---------------------------------------------------------------------------

    The Exchange believes that the proposal will not impose any burden
on inter-market competition, but rather promote competition by
enhancing the value of the Exchange's available routing options.
However, since the use of the Exchange's routing options is voluntary
and Equity Members have numerous alternative mechanisms for order
routing, the changes will not impair the ability of Equity Members to
use other means to access competing trading venues. The proposed rule
change would improve inter-market competition because it allows the
Exchange to provide another means by which market participants would be
able to participate in the primary listing market's opening, re-
opening, or closing processes that is similar to that currently
provided by other exchanges.\54\
---------------------------------------------------------------------------

    \54\ Id.
---------------------------------------------------------------------------

    The Exchange believes that the proposal will not impose any burden
on intra-market competition because it would be available to all Equity
Members. Any Equity Member that seeks to have their order routed to
multiple markets at a single price level simultaneously or to
participate in the primary listing market's opening, re-opening, or
closing processes is free to select the PAC routing option or seek to
access those markets through other means.
    In addition, the Exchange also believes its proposed related change
to Exchange Rule 2617(b)(2) to allow for the routing of orders coupled
with the PAC routing option during a Short Sale Period will not impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act because it is identical to
functionality offered on BZX, EDGX, and Nasdaq, and, therefore, does
not alone enhance the Exchange's competitive position.
    Finally, the proposed clarification to Exchange Rule 2617(b)(2)
will not impose any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act because it also
does not enhance the Exchange's competitive position. Rather, it is
simply designed to better align the rule with System functionality by
specifying that the order is first eligible for execution against
contra-side interest before being cancelled.

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

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \55\ and Rule 19b-4(f)(6) \56\
thereunder.
---------------------------------------------------------------------------

    \55\ 15 U.S.C. 78s(b)(3)(A).
    \56\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-PEARL-2022-06 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-PEARL-2022-06. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the

public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission's Public
Reference Room, 100 F Street NE, Washington, DC 20549, on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
the filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change. Persons submitting comments are cautioned that we do
not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
PEARL-2022-06, and should be submitted on or before March 23, 2022.
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    \57\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\57\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2022-04211 Filed 3-1-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: January 26, 2007 (Volume 72, Number 17)]
[Proposed Rules]
[Page 3775]
[DOCID:fr26ja07-26]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 35, 131, 154, 157, 250, 281, 284, 300, 341, 342, 344,
346, 347, 348, 375 and 385

[Docket No. RM01-5-000]

 Notice of Meeting With North American Energy Standards Board

January 18, 2007.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of Proposed Rulemaking; notice of conference.

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SUMMARY: A conference will be held with the North American Energy
Standards Board (NAESB) to discuss NAESB's assistance in the process of
developing standards for electronic tariff and rate schedules filings
in connection with the Notice of Proposed Rulemaking (NOPR) that
proposed to initiate electronic tariff filings. Electronic Tariff
Filings, 69 FR 43929 (July 23, 2004).

DATES: February 1, 2007, 10 a.m. until 4 p.m.

ADDRESSES: Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT: Keith Pierce, Office of Energy Markets
and Reliability, Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, DC 20426,<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Electronic Tariff Filings

Notice of Meeting With North American Energy Standards Board

    Take notice that on February 1, 2007, a conference will be held
with the North American Energy Standards Board (NAESB) to discuss
NAESB's assistance in the process of developing standards for
electronic tariff and rate schedules filings in connection with the
Notice of Proposed Rulemaking (NOPR) that proposed to initiate
electronic tariff filings. Electronic Tariff Filings, 69 FR 43929 (July
23, 2004) FERC Stats. & Regs., Proposed Regulations ] 32,575 (July 8,
2004). This process will examine the protocols, standards, and data
formats needed to provide metadata to enable the Commission to develop
a database to track such filings.
    The technical conference will be held from 10 a.m. until 4 p.m.
(EDT) at the Federal Energy Regulatory Commission, 888 First Street,
NE., Washington, DC 20426, in the Commission Meeting Room.
    Information related to this conference is available on NAESB's Web
site (http://www.naesb.org/etariff.asp). Background material can be found on the Commission's Web site (http://www.ferc.gov; click on

eTariff under the Documents and Filings Heading). Notices of any
subsequent NAESB meetings will be posted on the NAESB Web site http://www.naesb.org/etariff.asp
.

    The conference is open to the public to attend, and pre-
registration is not required.
    Conferences held at the Federal Energy Regulatory Commission are
accessible under section 508 of the Rehabilitation Act of 1973. For
accessibility accommodations please send an e-mail to
<EMAIL_ADDRESS>or call toll free 1-866-208-3372 (voice) or 202-

208-1659 (TTY), or send a FAX to<PHONE_NUMBER> with the required
accommodations.
    For more information about this conference, please contact Keith
Pierce, Office of Energy Markets and Reliability at<PHONE_NUMBER> or
<EMAIL_ADDRESS>

Magalie R. Salas,
Secretary.
 [FR Doc. E7-1158 Filed 1-25-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register: December 11, 2008 (Volume 73, Number 239)]
[Notices]
[Page 75430]
[DOCID:fr11de08-61]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. ER09-206-000, ER09-206-001]

Pasco Cogen, Ltd.; Supplemental Notice That Initial Market-Based
Rate Filing Includes Request for Blanket Section 204 Authorization

December 3, 2008.
    This is a supplemental notice in the above-referenced proceeding of
Pasco Cogen, Ltd.'s application for market-based rate authority, with
an accompanying rate tariff, noting that such application includes a
request for blanket authorization, under 18 CFR Part 34, of future
issuances of securities and assumptions of liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, in accordance with Rules 211 and 214 of the
Commission's Rules of Practice and Procedure (18 CFR 385.211 and
385.214). Anyone filing a motion to intervene or protest must serve a
copy of that document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is January 5, 2009.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://
www.ferc.gov. To facilitate electronic service, persons with Internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
14 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First St., NE., Washington, DC 20426.
    The filings in the above-referenced proceeding are accessible in
the Commission's eLibrary system by clicking on the appropriate link in
the above list.
    They are also available for review in the Commission's Public
Reference Room in Washington, DC. There is an eSubscription link on the
Web site that enables subscribers to receive e-mail notification when a
document is added to a subscribed dockets(s). For assistance with any
FERC Online service, please e-mail<EMAIL_ADDRESS>or call
(866) 208-3676 (toll free). For TTY, call<PHONE_NUMBER>.

Kimberly D. Bose,
Secretary.
 [FR Doc. E8-29349 Filed 12-10-08; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 80, Number 212 (Tuesday, November 3, 2015)]
[Notices]
[Pages 67826-67827]
[FR Doc No: 2015-27906]

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SECURITIES AND EXCHANGE COMMISSION

Submission for OMB Review; Comment Request

Upon Written Request Copies Available From: U.S. Securities and
Exchange Commission, Office of FOIA Services, 100 F Street NE.,
Washington, DC 20549-2736.

Reinstatement: Rule 19h-1;
    SEC File No. 270-247; OMB Control No. 3235-0259.

    Notice by a Self-Regulatory Organization of Proposed Admission to
or Continuance in Membership or Participation or Association With a
Member of Any Person Subject to a Statutory Disqualification, and
Applications to the Commission for Relief Therefrom
    Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the proposed
request for reinstatement, with change, of a previously approved
collection for which approval has expired--Rule 19h-1, Notice by a
Self-Regulatory Organization of Proposed Admission to or Continuance in
Membership or Participation or Association With a Member of Any Person
Subject to a Statutory Disqualification, and Applications to the
Commission for Relief Therefrom (17 CFR 240.19h-1). The Commission
plans to submit this request for reinstatement to the Office of
Management and Budget (``OMB'') for approval.
    Rule 19h-1 (``Rule'') under the Securities Exchange Act of 1934
(the ``Exchange Act'') prescribes the form and content of notices and
applications by self-regulatory organizations (``SROs'') regarding
proposed admissions to, or continuances in, membership, participation
or association with a member of any person subject to a statutory
disqualification.
    The Commission uses the information provided in the submissions
filed pursuant to Rule 19h-1 to review decisions of SROs to permit the
entry into or continuance in the securities business of persons who
have committed serious misconduct. The filings submitted pursuant to
the Rule also permit inclusion of an application to the Commission for
consent to associate with a member of an SRO notwithstanding a
Commission order barring such association.
    The Commission reviews filings made pursuant to the Rule to
ascertain whether it is in the public interest to permit the employment
in the securities business of persons subject to a statutory
disqualification. The filings contain information that is essential to
the staff's review and ultimate determination on whether an association
or employment is in the public interest and consistent with investor
protection. Without these filings, persons subject to a statutory
disqualification could reenter or continue employment in the securities
business without the Commission's critical review of their character,
ability to act as a fiduciary, and their employer's plan of
supervision. The failure to collect and review this information could
result in significant harm to the investing public.
    The Commission estimates the annual burden of responding to this
collection of information is as follows.

                                                                      Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                        19h-1(a)--Notice of
                                            admission or         19h-1(a)(4)--Notification of                                  19h-1(d)--Application to
                                            continuance             proposed admission or          19h-1(b)--Preliminary      the Commission for relief
                                         notwithstanding a        continuance pursuant to an           notifications            from certain statutory
                                             statutory            exception from the  notice                                      disqualifications
                                          disqualification               requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimated number of respondents =...  20.....................  20.............................  20.........................  20.
Estimated number of annual responses  11.....................  9..............................  28.........................  5.
 per respondent =.
Estimated annual reporting burden     80.....................  80.............................  13.........................  80.
 per response =.
                                     -------------------------------------------------------------------------------------------------------------------
    Estimated total annual reporting  17,600 (20 respondents   14,400 (20 respondents x 9       7,280 (20 respondents x 28   8,000 (20 respondents x 5
     burden =.                         x 11 annual responses    annual responses per             annual responses per         annual responses per
                                       per respondent x 80      respondent x 80 hours per        respondent x 13 hours per    respondent x 80 hours per
                                       hours per respondent).   respondent).                     respondent).                 respondent).
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Written comments are invited on: (a) Whether this collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (b) the accuracy of the agency's estimate of the burden
imposed by the collection of information; (c) ways to enhance the
quality, utility, and clarity of the information collected; and (d)
ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology.
    The Commission may not conduct or sponsor a collection of
information unless it displays a currently valid control number. No
person shall be subject to any penalty for failing to comply with a
collection of information subject to the PRA that does not display a
valid OMB control number.
    Persons submitting comments on the collection of information
requirements should direct them to Pamela Dyson, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or send an email
to<EMAIL_ADDRESS>Comments should reference SEC File

No. 270-247. Requests for materials submitted to OMB by the Commission
with regard to this collection of information should be in writing,
with reference to SEC File No. 270-247. Comments must be submitted to
the SEC within 60 days of this notice.

    Dated: October 28, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-27906 Filed 11-2-15; 8:45 am]
 BILLING CODE 8011-01-P