[Federal Register Volume 88, Number 86 (Thursday, May 4, 2023)]
[Notices]
[Pages 28641-28645]
[FR Doc No: 2023-09448]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97406; File No. SR-CboeEDGX-2023-016]

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.;
Suspension of and Order Instituting Proceedings To Determine Whether To
Approve or Disapprove Proposed Rule Change To Amend the EDGX Equities
Fee Schedule To Eliminate and Modify Certain Growth Tiers and Non-
Displayed Step-Up Volume Tiers, Modify a Retail Growth Tier, Introduce
New Fee Code DX and Modify Fee Code DQ

April 28, 2023.

I. Introduction

    On March 1, 2023, Cboe EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to section 19(b)(1) of the Securities
Exchange Act of 1934 (``Exchange Act'' or ``Act''),\1\ and Rule 19b-4
thereunder,\2\ a proposed rule change (File Number SR-CboeEDGX-2023-
016) to amend the EDGX Equities Fee Schedule (``Fee Schedule'') to
eliminate and modify certain Growth Tiers and Non-Displayed Step-Up
Volume Tiers, modify a Retail Growth Tier, introduce new fee code DX
and modify fee code DQ.\3\ The proposed rule change was immediately
effective upon filing with the Commission pursuant to section
19(b)(3)(A) of the Act.\4\ The proposed rule change was published for
comment in the Federal Register on March 9, 2023.\5\ The Commission has
received no comment letters on the proposed rule change. Under section
19(b)(3)(C) of the Act,\6\ the Commission is hereby: (i) temporarily
suspending File Number SR-CboeEDGX-2023-016; and (ii) instituting
proceedings to determine whether to approve or disapprove File Number
SR-CboeEDGX-2023-016.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Notice, infra note 5, at 14658.
    \4\ 15 U.S.C. 78s(b)(3)(A). A proposed rule change may take
effect upon filing with the Commission if it is designated by the
exchange as ``establishing or changing a due, fee, or other charge
imposed by the self-regulatory organization on any person, whether
or not the person is a member of the self-regulatory organization.''
15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ See Securities Exchange Act Release No. 97042 (March 3,
2023), 88 FR 14657 (``Notice'').
    \6\ 15 U.S.C. 78s(b)(3)(C).
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II. Description of the Proposed Rule Change

    The Exchange operates a ``Maker-Taker'' model whereby it pays
rebates to Members \7\ that add liquidity and assesses fees to those
that remove liquidity.\8\ The Exchange also offers tiered pricing which
provides Members opportunities to qualify for higher rebates or reduced
fees where certain volume criteria and thresholds are met.\9\ According
to the Exchange, tiered pricing provides an incremental incentive for
Members to strive for higher tier levels, which provides increasingly
higher benefits or discounts for satisfying increasingly more stringent
criteria.\10\
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    \7\ See EDGX Rule 1.5(n). The term ``Member'' shall mean any
registered broker or dealer that has been admitted to membership in
the Exchange. A Member will have the status of a ``member'' of the
Exchange as that term is defined in section 3(a)(3) of the Act.
Membership may be granted to a sole proprietor, partnership,
corporation, limited liability company or other organization which
is a registered broker or dealer pursuant to section 15 of the Act,
and which has been approved by the Exchange.
    \8\ See Notice, supra note 5, at 14658.
    \9\ Id.
    \10\ Id.
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    The Exchange proposes to amend its Fee Schedule to eliminate and
modify certain Growth Tiers and Non-Displayed Step-Up Volume Tiers,
modify a Retail Growth Tier, introduce new fee code DX and modify fee
code DQ, which fee changes became effective on March 1, 2023.\11\ With
respect to the Exchange's Growth Tiers, the Exchange offers five Growth
Tiers that each provide an enhanced rebate for Members' qualifying
orders yielding fee codes B, V, Y, 3, and 4, where a Member reaches
certain add volume-based criteria, including ``growing'' its volume
over a certain baseline month.\12\ The Exchange proposes to discontinue
Growth Tiers 1-3 and to modify the criteria of Growth Tier 4 and Growth
Tier 5 (renumbered to Growth Tier 1 and Growth Tier 2, respectively and
referred to herein as ``proposed Growth Tier 1'' and ``proposed Growth
Tier 2'').\13\ Specifically, the Exchange proposes to add a third prong
to the Required Criteria for proposed Growth Tier 1. As

a result, the Required Criteria for proposed Growth Tier 1 is as
follows:
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    \11\ See Notice, supra note 5, at 14658. Under footnotes 1 and 2
of the Exchange's Fee Schedule, the tiered pricing fee table lists
the tier, the ``rebate per share to add'' or the ``fee per share to
remove,'' as applicable, and the ``Required Criteria''--sometimes
referred to as ``prongs''--that must be met by a Member in order to
qualify for the applicable tiered pricing fee.
    \12\ See Notice, supra note 5, at 14658. See also Fee Schedule,
Footnotes, 1, Add/Remove Volume Tiers.
    \13\ The Exchange states it is eliminating Growth Tiers 1-3
because no Members have satisfied those Growth Tier criteria within
the past six months and the Exchange no longer wishes to, nor is
required to, maintain such tiers. The Exchange states that it would
rather redirect future resources and funding into other programs and
tiers intended to incentivize increased order flow. See Notice,
supra note 5, at 14658.
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     Proposed Growth Tier 1 provides a rebate of $0.0034 per
share to qualifying orders (i.e., orders yielding fee codes B, V, Y, 3,
or 4) where 1) MPID adds a Step-Up ADAV \14\ from October 2021 >= 0.12%
of the TCV \15\ or MPID adds a Step-Up ADAV from October 2021 >=
16,000,000; and 2) MPID adds an ADV \16\ >= 0.30% of TCV or MPID adds
an ADV >= 35,000,000; and 3) MPID adds an ADAV >= 0.30% of TCV with
displayed orders that yield fee codes B, V, or Y.
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    \14\ ADAV means average daily added volume calculated as the
number of shares added per day ADAV is calculated on a monthly
basis. Step-Up ADAV means ADAV in the relevant baseline month
subtracted from current ADAV. See Notice, supra note 5, at 14658, n.
9.
    \15\ TCV means total consolidated volume calculated as the
volume reported by all exchanges and trade reporting facilities to a
consolidated transaction reporting plan for the month for which the
fees apply. See Notice, supra note 5, at 14658, n. 10.
    \16\ ADV means average daily volume calculated as the number of
shares added to, removed from, or routed by, the Exchange, or any
combination or subset thereof, per day. ADV is calculated on a
monthly basis. See Fee Schedule, Definitions.
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    In addition, the Exchange proposes to modify proposed Growth Tier 2
by adding a third prong to the Required Criteria. As a result, the
Required Criteria for proposed Growth Tier 2 is as follows:
     Proposed Growth Tier 2 provides a rebate of $0.0034 per
share to qualifying orders (i.e., orders yielding fee codes B, V, Y, 3,
or 4) where (1) Member adds a Step-Up ADAV from October 2022 >= 0.15%
of the TCV or Member adds a Step-Up ADAV from October 2022 >=
15,000,000; and (2) Member has a total remove ADV >= 0.45% of TCV or
Member has a total remove ADV >= 45,000,000; and (3) Member adds a
Retail Step-Up ADV \17\ (i.e., yielding fee codes ZA or ZO) from August
2022 >= 0.10% of TCV.
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    \17\ Step-Up ADV means ADV in the relevant baseline month
subtracted from current day ADV. See Fee Schedule, Definitions.
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    The Exchange also offers Non-Displayed Step-Up Volume Tiers under
footnote 1 of the Fee Schedule that each provide an enhanced rebate for
Members' qualifying orders yielding fee codes DM, HA, MM, and RP, where
a Member reaches certain volume-based criteria offered in each
tier.\18\ The Exchange proposes to discontinue the use of Non-Displayed
Step-Up Volume Tiers 1 and 2, and to amend the criteria of current Non-
Displayed Step-Up Volume Tier 3 (renumbered to proposed Non-Displayed
Step-Up Volume Tier 1).\19\ Specifically, the Exchange proposes to add
a third prong to the Required Criteria for proposed Non-Displayed Step-
Up Volume Tier 1. As a result, the Required Criteria for proposed Non-
Displayed Step-Up Volume Tier 1 is as follows:
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    \18\ See Notice, supra note 5, at 14659. See also Fee Schedule,
Footnotes, 1, Add/Remove Volume Tiers.
    \19\ Similar to the elimination of Growth Tiers 1 and 2, the
Exchange states that it is eliminating Non-Displayed Step-Up Volume
Tiers 1 and 2 because no Members have satisfied the criteria within
the past six months and the Exchange no longer wishes to, nor is
required to, maintain such tiers. The Exchange states that it would
rather redirect future resources and funding into other programs and
tiers intended to incentivize increased order flow. See Notice,
supra note 5, at 14659.
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     Non-Displayed Step-Up Volume Tier 1 provides a rebate of
$0.0026 per share to qualifying orders (i.e., orders yielding fee code
DM, HA, MM, or RP) where (1) Members adds a Step-Up ADAV from October
2022 >= 0.15% of the TCV or Member adds a Step-Up ADAV from October
2022 >= 15,000,000; (2) Member has a total remove ADV >= 0.45% of TCV
or Member has a total remove ADV >= 45,000,000; and (3) Member adds a
Retail Step-Up ADV (i.e., yielding fee codes ZA or ZO) from August 2022
>= 0.10% of TCV.
    Pursuant to footnote 2 of the Fee Schedule, the Exchange also
offers Retail Volume Tiers which provide Retail Member Organizations
(``RMOs'') \20\ an opportunity to receive an enhanced rebate from the
standard rebate for Retail Orders \21\ that add liquidity (i.e.,
yielding fee code ZA or ZO).\22\ The Retail Volume Tiers offer three
Retail Growth Tiers, where a Member is eligible for an enhanced rebate
for qualifying orders (i.e., yielding fee code ZA or ZO) meeting
certain add volume-based criteria, including ``growing'' its volume
over a certain baseline month.\23\ The Exchange proposes to amend the
Required Criteria for Retail Growth Tier 3 to add a third prong. As a
result, the Required Criteria for Retail Growth Tier 3 is as follows:
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    \20\ See EDGX Rule 11.21(a)(1). A ``Retail Member Organization''
or ``RMO'' is a Member (or a division thereof) that has been
approved by the Exchange under this Rule to submit Retail Orders.
    \21\ See EDGX Rule 11.21(a)(2). A ``Retail Order'' is an agency
or riskless principal order that meets the criteria of FINRA Rule
5320.03 that originates from a natural person and is submitted to
the Exchange by a Retail Member Organization, provided that no
change is made to the terms of the order with respect to price or
side of market and the order does not originate from a trading
algorithm or any other computerized methodology.
    \22\ See Notice, supra note 5, at 14659. See also Fee Schedule,
Footnotes, 2, Retail Volume Tiers.
    \23\ See Notice, supra note 5, at 14659.
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     Retail Growth Tier 3 provides a rebate of $0.0037 per
share to qualifying orders (i.e., orders yielding fee code ZA or ZO)
where (1) Member adds a Step-Up ADAV from October 2022 >= 0.15% of the
TCV or Member adds a Step-Up ADAV from October 2022 >= 15,000,000; (2)
Member has a total remove ADV >= 0.45% of TCV or Member has a total
remove ADV >= 45,000,000; and (3) Members adds a Retail Step-Up ADV
(i.e., yielding fee code ZA or ZO) from August 2022 >= 0.10% of TCV.
    Finally, the Exchange offers fee code DQ, which is appended to
Midpoint Discretionary Orders (``MDOs'') \24\ using the Quote Depletion
Protection (``QDP'') \25\ order instruction.\26\ According to the
Exchange, QDP is designed to provide enhanced protections to MDOs by
tracking significant executions that constitute the best bid or offer
on the EDGX Book and enabling Users to avoid potentially unfavorable
executions by preventing MDOs entered with the optional QDP instruction
from exercising discretion to trade at more aggressive prices when QDP
has been triggered.\27\ MDOs entered with the QDP instruction are
appended fee code DQ and assessed a flat fee of $0.00040 per share in
securities at or above $1.00 and 0.30% of dollar value for securities
priced below $1.00.\28\ The Exchange proposes to amend fee code DQ to
be appended to MDOs entered with a QDP instruction that add liquidity
to the Exchange.\29\ The Exchange also proposes to introduce fee code
DX, which would be appended to MDOs with a QDP instruction that remove
liquidity from the Exchange.\30\ Orders appended with fee code DX would
be assessed a fee of $0.00060 per share in securities at or above $1.00
and 0.30% of dollar value for securities priced below $1.00.\31\
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    \24\ See Exchange Rule 11.8(g).
    \25\ See Exchange Rule 11.8(g)(10).
    \26\ See Notice, supra note 5, at 14659. See also Fee Schedule,
Footnotes, 1, Add/Remove Volume Tiers.
    \27\ See Notice, supra note 5, at 14659.
    \28\ See Notice, supra note 5, at 14659. See also Fee Schedule,
Footnotes, 1, Add/Remove Volume Tiers.
    \29\ See Notice, supra note 5, at 14659. There would be no
change to the fee associated with fee code DQ.
    \30\ See Notice, supra note 5, at 14659.
    \31\ Id.
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III. Suspension of the Proposed Rule Change

    Pursuant to section 19(b)(3)(C) of the Act,\32\ at any time within
60 days of the date of filing of an immediately effective proposed rule
change pursuant to section 19(b)(1) of the Act,\33\ the Commission
summarily may temporarily suspend the change in the rules of a self-
regulatory organization (``SRO'') 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. As discussed below, the Commission believes a
temporary suspension of the proposed rule change is necessary and
appropriate to allow for additional analysis of the proposed rule
change's consistency with the Act and the rules thereunder.
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    \32\ 15 U.S.C. 78s(b)(3)(C).
    \33\ 15 U.S.C. 78s(b)(1).
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    In support of the proposal, the Exchange argues that is operates in
a highly competitive market in which market participants can readily
direct order flow to competing venues if they deem fee levels at a
particular venue to be excessive or incentives to be insufficient.\34\
The Exchange believes that its specific proposal reflects a competitive
pricing structure designed to incentivize market participants to direct
their order flow to the Exchange, which the Exchange believes would
enhance market quality to the benefit of all Members.\35\ The Exchange
states that the Growth Tiers, Non-Displayed Step-Up Volume Tiers, and
Retail Volume Tiers are intended to provide Members an opportunity to
receive an enhanced rebate by increasing their order flow to the
Exchange, which further contributes to a deeper, more liquid market and
provides even more execution opportunities for active market
participants.\36\ As such, increased overall order flow benefits all
Members by contributing towards a robust and well-balanced market
ecosystem, according to the Exchange.\37\
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    \34\ See Notice, supra note 5, at 14660.
    \35\ Id.
    \36\ See Notice, supra note 5, at 14659.
    \37\ Id.
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    Additionally, the Exchange notes that relative volume-based
incentives and discounts have been widely adopted by exchanges,
including the Exchange, and are reasonable, equitable and non-
discriminatory because they are open to all Members on an equal basis
and provide additional benefits or discounts that are reasonably
related to (i) the value to an exchange's market quality and (ii)
associated higher levels of market activity, such as higher levels of
liquidity provision and/or growth patterns.\38\ The Exchange states
that competing equity exchanges offer similar tiered pricing
structures, including schedules of rebates and fees that apply based
upon Members achieving certain volume and/or growth thresholds, as well
as assess similar fees or rebates for similar types of orders, to that
of the Exchange.\39\
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    \38\ See Notice, supra note 5, at 14660.
    \39\ Id.
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    With respect to the proposed amendments to proposed Growth Tiers 1
and 2, proposed Non-Displayed Step-Up Volume Tier 1, and Retail Growth
Tier 3 in particular, the Exchange states that such modifications are
reasonable because they will be available to all Members and will
provide all Members with an additional opportunity to receive an
enhanced rebate.\40\ The Exchange further believes that these specific
modifications also will provide a reasonable means to encourage
liquidity adding displayed orders, liquidity adding non-displayed
orders, and retail orders, respectively, in Members' order flow to the
Exchange and to incentivize Members to continue to provide liquidity
adding volume to the Exchange by offering them an additional
opportunity to receive an enhanced rebate on qualifying orders.\41\
According to the Exchange, an overall increase in activity would deepen
the Exchange's liquidity pool, offers additional cost savings, support
the quality of price discovery, promote market transparency and improve
market quality, for all investors.\42\
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    \40\ Id.
    \41\ Id.
    \42\ Id.
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    The Exchange believes that the proposed changes to proposed Growth
Tiers 1 and 2, proposed Non-Displayed Step-Up Volume Tier 1, and Retail
Growth Tier 3 are reasonable as they do not represent a significant
departure from the criteria currently offered in the Fee Schedule.\43\
The Exchange also believes that the proposal represents an equitable
allocation of fees and rebates and is not unfairly discriminatory
because all Members will be eligible for the proposed new tiers and
have the opportunity to meet the tiers' criteria and receive the
corresponding enhanced rebate if such criteria is met.\44\ The Exchange
also notes that proposed changes will not adversely impact any Member's
ability to qualify for enhanced rebates offered under other tiers;
should a Member not meet the proposed new criteria, the Member will
merely not receive that corresponding enhanced rebate.\45\
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    \43\ Id.
    \44\ Id.
    \45\ Id.
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    When exchanges file their proposed rule changes with the
Commission, including fee filings like the Exchange's present proposal,
they are required to provide a statement supporting the proposal's
basis under the Act and the rules and regulations thereunder applicable
to the exchange.\46\ The instructions to Form 19b-4, on which exchanges
file their proposed rule changes, specify that such statement ``should
be sufficiently detailed and specific to support a finding that the
proposed rule change is consistent with [those] requirements.'' \47\
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    \46\ See 17 CFR 240.19b-4 (Item 3 entitled ``Self-Regulatory
Organization's Statement of the Purpose of, and Statutory Basis for,
the Proposed Rule Change'').
    \47\ Id.
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    Section 6 of the Act, including sections 6(b)(4), (5), and (8),
requires the rules of an exchange to (1) provide for the equitable
allocation of reasonable fees among members, issuers, and other persons
using the exchange's facilities; \48\ (2) perfect the mechanism of a
free and open market and a national market system, protect investors
and the public interest, and not be designed to permit unfair
discrimination between customers, issuers, brokers, or dealers; \49\
and (3) not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act.\50\
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    \48\ 15 U.S.C. 78f(b)(4).
    \49\ 15 U.S.C. 78f(b)(5).
    \50\ 15 U.S.C. 78f(b)(8).
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    In temporarily suspending the Exchange's fee change, the Commission
intends to further consider whether the proposal, in particular the
proposed modifications to certain Growth Tiers, Non-Displayed Step-Up
Volume Tiers, and a Retail Growth Tier, is consistent with the
statutory requirements applicable to a national securities exchange
under the Act. The Commission will consider whether the proposed rule
change satisfies the standards under the Act and the rules thereunder
requiring, among other things, that an exchange's rules provide for the
equitable allocation of reasonable fees among members, issuers, and
other persons using its facilities; not permit unfair discrimination
between customers, issuers, brokers or dealers; and do not impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act.\51\
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    \51\ See 15 U.S.C. 78f(b)(4), (5), and (8), respectively.
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    Therefore, the Commission finds that it is appropriate in the
public interest, for the protection of investors, and otherwise in
furtherance of the purposes of the Act, to temporarily suspend the
proposed rule change.\52\
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    \52\ For purposes of temporarily suspending the proposed rule
change, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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IV. Proceedings To Determine Whether To Approve or Disapprove the
Proposed Rule Change

    In addition to temporarily suspending the proposal, the Commission
also

hereby institutes proceedings pursuant to sections 19(b)(3)(C) \53\ and
19(b)(2)(B) of the Act \54\ to determine whether the proposed rule
change should be approved or disapproved. Institution of proceedings
does not indicate that the Commission has reached any conclusions with
respect to any of the issues involved. Rather, the Commission seeks and
encourages interested persons to provide additional comment on the
proposed rule change to inform the Commission's analysis of whether to
approve or disapprove the proposed rule change.
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    \53\ 15 U.S.C. 78s(b)(3)(C). Once the Commission temporarily
suspends a proposed rule change, section 19(b)(3)(C) of the Act
requires that the Commission institute proceedings under section
19(b)(2)(B) to determine whether a proposed rule change should be
approved or disapproved.
    \54\ 15 U.S.C. 78s(b)(2)(B).
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    Pursuant to section 19(b)(2)(B) of the Act,\55\ the Commission is
providing notice of the grounds for possible disapproval under
consideration:
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    \55\ 15 U.S.C. 78s(b)(2)(B). Section 19(b)(2)(B) of the Act also
provides that proceedings to determine whether to disapprove a
proposed rule change must be concluded within 180 days of the date
of publication of notice of the filing of the proposed rule change.
See id. The time for conclusion of the proceedings may be extended
for up to 60 days if the Commission finds good cause for such
extension and publishes its reasons for so finding, or if the
exchange consents to the longer period. See id.
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     Whether the Exchange has demonstrated how the proposal is
consistent with section 6(b)(4) of the Act, which requires that the
rules of a national securities exchange ``provide for the equitable
allocation of reasonable dues, fees, and other charges among its
members and issuers and other persons using its facilities;'' \56\
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    \56\ 15 U.S.C. 78f(b)(4).
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     Whether the Exchange has demonstrated how the proposal is
consistent with section 6(b)(5) of the Act, which requires, among other
things, that the rules of a national securities exchange be ``designed
to perfect the operation of a free and open market and a national
market system'' and ``protect investors and the public interest,'' and
not be ``designed to permit unfair discrimination between customers,
issuers, brokers, or dealers;'' \57\ and
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    \57\ 15 U.S.C. 78f(b)(5).
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     Whether the Exchange has demonstrated how the proposal is
consistent with section 6(b)(8) of the Act, which requires that the
rules of a national securities exchange ``not impose any burden on
competition not necessary or appropriate in furtherance of the purposes
of [the Act].'' \58\
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    \58\ 15 U.S.C. 78f(b)(8).
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    As discussed in Section III above, the Exchange argues that all
Members will be eligible for the proposed new tiers and have the
opportunity to meet the tiers' criteria. The Exchange further states
the proposal provides a reasonable means to incentivize Members to
continue to send certain types of order flow to the Exchange. Because
the proposed growth and step-up tiers are designed to provide more
favorable pricing to Members with volume increases over specified
baseline months, questions are raised as to whether the Exchange has
satisfied its burden to demonstrate that such tiers will, as the
Exchange argues, continue to provide a reasonable means to incentivize
Members to send certain types of order flow to the Exchange, in a
manner consistent with the Act and the rules thereunder when the
specified baseline months remain the same and may continue
indefinitely.
    Under the Commission's Rules of Practice, the ``burden to
demonstrate that a proposed rule change is consistent with the [Act]
and the rules and regulations issued thereunder . . . is on the [SRO]
that proposed the rule change.'' \59\ The description of a proposed
rule change, its purpose and operation, its effect, and a legal
analysis of its consistency with applicable requirements must all be
sufficiently detailed and specific to support an affirmative Commission
finding,\60\ and any failure of an SRO to provide this information may
result in the Commission not having a sufficient basis to make an
affirmative finding that a proposed rule change is consistent with the
Act and the applicable rules and regulations.\61\
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    \59\ 17 CFR 201.700(b)(3).
    \60\ See id.
    \61\ See id.
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    The Commission is instituting proceedings to allow for additional
consideration and comment on the issues raised herein, including as to
whether the proposal is consistent with the Act, specifically, with its
requirements that the rules of a national securities exchange provide
for the equitable allocation of reasonable dues, fees, and other
charges among its members, issuers, and other persons using its
facilities; are designed to perfect the operation of a free and open
market and a national market system, and to protect investors and the
public interest; are not designed to permit unfair discrimination
between customers, issuers, brokers, or dealers; and do not impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act; \62\ as well as any other
provision of the Act, or the rules and regulations thereunder.
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    \62\ See 15 U.S.C. 78f(b)(4), (5), and (8).
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V. Commission's Solicitation of Comments

    The Commission requests written views, data, and arguments with
respect to the concerns identified above as well as any other relevant
concerns. Such comments should be submitted by May 25, 2023. Rebuttal
comments should be submitted by June 8, 2023. Although there do not
appear to be any issues relevant to approval or disapproval that would
be facilitated by an oral presentation of views, data, and arguments,
the Commission will consider, pursuant to Rule 19b-4, any request for
an opportunity to make an oral presentation.\63\
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    \63\ 15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act grants the
Commission flexibility to determine what type of proceeding--either
oral or notice and opportunity for written comments--is appropriate
for consideration of a particular proposal by an SRO. See Securities
Acts Amendments of 1975, Report of the Senate Committee on Banking,
Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th
Cong., 1st Sess. 30 (1975).
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    The Commission asks that commenters address the sufficiency and
merit of the Exchange's statements in support of the proposal, in
addition to any other comments they may wish to submit about the
proposed rule change.
    Interested persons are invited to submit written data, views, and
arguments concerning the proposed rule change, including whether the
proposal is consistent with the Act. Comments may be submitted by any
of the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File No. SR-CboeEDGX-2023-016 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-2023-016. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements

with respect to the proposed rule change that are filed with the
Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 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. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to File Number SR-CboeEDGX-2023-016 and should be
submitted on or before May 25, 2023. Rebuttal comments should be
submitted by June 8, 2023.

VI. Conclusion

    It is therefore ordered, pursuant to section 19(b)(3)(C) of the
Act,\64\ that File Number SR-CboeEDGX-2023-016 be and hereby is,
temporarily suspended. In addition, the Commission is instituting
proceedings to determine whether the proposed rule change should be
approved or disapproved.
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    \64\ 15 U.S.C. 78s(b)(3)(C).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\65\
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    \65\ 17 CFR 200.30-3(a)(57) and (58).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-09448 Filed 5-3-23; 8:45 am]
BILLING CODE 8011-01-P