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Federal Register / Vol. 86, No. 164 / Friday, August 27, 2021 / Notices
lotter on DSK11XQN23PROD with NOTICES1

System functionality and the remainder of paragraph k.
Second, the Exchange proposes to make the following other nonsubstantive changes:
Currently, Rule 5.33a states the term complex order has the meaning set forth in Rule 1.1. The proposed rule change amends this definition to state that the term complex order is defined in Rule 1.1 to make the provision plain English and to conform the language to that in other definitions in the Exchanges rulebook.
Currently, Rule 5.33a defines the complex order book COB as the Exchanges electronic book of complex orders maintained by the System, which single book is used during both the Regular Trading Hours RTH and Global Trading Hours GTH trading sessions. The proposed rule change defines COB as the Exchanges electronic book of complex orders used for all trading sessions. The Exchange believes this proposed change streamlines the definition and eliminates unnecessary terminology.13
The proposed rule change amends the definitions of All Sessions, MTP
Modifiers, and RTH Only in Rule 5.33b5 and applicable provisions in Rule 5.33d2A, 3, 3B, and 3C, 5, 5Ai and ii, and 5B, e, e1 and 2, f2Av and 2B, g, i and i3C, j3, and k2 to state that orders rest in or are otherwise in the simple book or COB rather than on the simple book or COB. The majority of the provisions in Rule 5.33
state that orders are in the book or COB, so the Exchange proposes to amend these provisions to maintain consistency throughout Rule 5.33.
The proposed rule change amends the definitions of Book Only and Post Only in Rule 5.33b5 to state that the order is subject to a users instructions rather than in accordance with the users instructions. The phrases mean the same thing in the context of these rule provisions, but the majority of Rule 5.33 uses the phrase subject to a users instructions, so the Exchange proposes to amend these provisions to maintain consistency throughout Rule 5.33.
The proposed rule change proposes to delete the term complex order prior to Capacities in the definition of 13 The phrase all trading sessions would incorporate both RTH and GTHcurrently the only two trading sessions on the Exchangeso it is unnecessary to list both of those in the definition.
See Rule 1.1 definition of trading session.
Additionally, the definition implies that the COB is maintained by the Exchanges trading system and is a single book because it is an electronic book, making the language proposed to be deleted unnecessary.

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Complex Only in Rule 5.33a. Rule 5.33 relates solely to the trading of complex orders and generally does not specify that certain terms relate to complex orders for example, just prior to Capacities, the term Times-in-Force is not qualified to be complex order Times-in-Force. Therefore, the proposed rule change deletes complex order prior to Capacities, as it is redundant and unnecessary.
The proposed rule change amends Rule 5.33d2A to use the term subparagraph rather than paragraph for the cross-reference to subparagraph d3 in that provision. This merely conforms to terminology used throughout the Rules.
The proposed rule change amends Rule 5.33d3A through C and j3
to replace posts with enters when describing an order entering into the COB or the Book. This merely changes the term used to describe an order entering a book to conform to the terminology used elsewhere in the Rules.
The proposed rule change deletes an inadvertent grammatically incorrect comma after EFID in Rule 5.33d4B, after class in Rule 5.33d5Aii, after the second parenthetical in Rule 5.33d5B, and after the second parenthetical in the last paragraph of Rule 5.33e.
The proposed rule change deletes inadvertent extra spaces prior to the hyphen in the term contra-side in Rule 5.33d5A and e.
The proposed rule change replaces pursuant to with which the System allocates in accordance with in Rule 5.33d5Aii and e2. The provision has the same meaning, but the new language is consistent with language used in the remainder of Rule 5.33. The proposed rule change also adds as prior to determined at the end of Rule 5.33dAii to similarly be consistent with language used in the remainder of Rule 5.33.
The proposed rule change replaces if eligible to rest with if eligible for entry in Rule 5.33d5B, the last paragraph of Rule 5.33e, and k1 and 2. This is consistent with the language in Rule 5.33b2 regarding the Exchanges authority to determine which Capacities are eligible for entry into the Book.
The proposed rule change amends the heading of Rule 5.33g to be Legging rather than Legging Restrictions, as the Exchange believes it to be more appropriate given that paragraph g describes how a complex order may leg into the simple book, in addition to certain restrictions that apply to legging.

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The proposed rule change adds subheading names to subparagraphs h1 through 3 to be consistent with the remainder of Rule 5.33, as subparagraphs in the rule generally have subheadings. The proposed rule change also moves current subparagraph 2 to proposed subparagraph 3 14 and renumbers current subparagraph 3 as subparagraph 2.
The proposed rule change amends the last to sentences of Rule 5.33k1
to eliminate the passive voice in each sentence, thus making each sentence more plain English.
The proposed rule change adds a heading to Interpretation and Policy .03
to be consistent with the other Interpretations and Policies in Rule 5.33.
2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6b of the Act.15 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6b5 16 requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is consistent with the Section 6b5 17 requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
In particular, the Exchange believes the proposed rule change will protect investors and the public interest by adding clarifications and detail to the Rules, as well as conforming and simplifying certain rule provisions. The proposed clarifying and nonsubstantive rule changes will have no impact on trading, as they codify or are otherwise consistent with current functionality 14 The proposed rule change makes a nonsubstantive change to proposed subparagraph 3 current subparagraph 2 to move the word resting after the term complex order rather than before.
15 15 U.S.C. 78fb.
16 15 U.S.C. 78fb5.
17 Id.

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