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Federal Register / Vol. 86, No. 171 / Wednesday, September 8, 2021 / Notices reporting is accurate and complete for all order events that occur on or prior to August 31, 2021. LTSE Rule 11.420, like the FINRA OATS Rules, will be deleted from the LTSE rulebook effective September 1, 2021.42
In light of the foregoing, LTSE, like FINRA, believes that retiring OATS as of September 1, 2021 is appropriate, particularly given the potential risks of continuing to run OATS and CAT in parallel for an additional period of time.
Such potential risks may include, for example, on an industry-wide basis: 1
Processing and storage capacity issues from operating two systems particularly in the event of extraordinary market volume; 2 cybersecurity risks from having data flow through two separate systems for a longer time period; 3
systems issues from reporting infrastructure that is near end-of-life;
and 4 the expense and burden on CAT
Reporters of dual reporting, particularly in the event of systems issues requiring correction and/or resubmission of data and competing resource priorities between OATS and CAT reporting and repair activities.
LTSE has filed the proposed rule change for immediate effectiveness and is seeking a waiver of the 30 day operative delay to allow its OATS rules to be retired concurrent with the September 1, 2021 retirement of FINRAs OATS Rules. LTSE will also announce the retirement of OATS via a trader alert to its Members.

and effective surveillance of market activity on LTSE. Therefore, LTSE will continue to be able to fulfill its statutory obligation to protect investors and the public interest after the retirement of OATS.

2. Statutory Basis LTSE believes that the proposed rule change is consistent with the provisions of Section 6b5 of the Act, 43 which require, among other things, that LTSEs rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest.
LTSE believes that the proposed retirement of LTSE Rule 11.420 fulfills the obligation in the CAT NMS Plan for LTSE to submit a proposed rule change to eliminate or modify duplicative rules, and that the CAT NMS Plan has achieved the accuracy and reliability standards required by the Commission in the OATS Retirement Order.
Additionally, as discussed in the Purpose section, LTSE believes that the use of CAT Data, whether by LTSE
directly, or by FINRA pursuant to the RSA, will continue to allow for accurate
C. Self-Regulatory Organizations Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others
42 In the unlikely event that FINRA determines it is unable to retire OATS effective September 1, 2021, LTSE will delay the retirement of LTSE Rule 11.420 pending the actual retirement of FINRA
OATS.
43 15 U.S.C. 78fb5.

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B. Self-Regulatory Organizations Statement on Burden on Competition LTSE does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. LTSE notes that the proposed rule change implements provisions of the CAT NMS
Plan, facilitates the retirement of certain existing regulatory systems, and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan. LTSE also notes that the proposed rule change will apply equally to all firms that trade NMS
Securities. In addition, all national securities exchanges and FINRA are proposing substantially similar rule filings. Therefore, this is not a competitive rule filing, and, therefore, it does not impose a burden on competition.
Furthermore, LTSE notes that FINRA
undertook an economic impact assessment of the potential costs and benefits associated with OATS
retirement and determined that CAT
meets or exceeds the OATS standards.

Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to Section 19b3Aiii of the Act 44 and Rule 19b4f6 thereunder.45 Because the 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19b3A
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U.S.C. 78sb3Aiii.
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of the Act 46 and Rule 19b4f6iii thereunder.47
The proposed rule change would not significantly affect the protection of investors or the public interest because it seeks to align LTSEs retirement of its OATS rule with FINRAs September 1, 2021 retirement of the OATS system itself. Thus, this rule change would facilitate the retirement of certain existing, duplicative, regulatory systems. Additionally, all national securities exchanges that currently have OATS rules are proposing substantially similar regulatory filings retiring their respective OATS rules. Therefore, this is not a competitive rule filing, and it does not impose a burden on competition.
Accordingly, the Exchange has filed this rule change under Section 19b3A of the Act 48 and paragraph f6 of Rule 19b4 thereunder.49
A proposed rule change filed under Rule 19b4f6 50 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4f6iii,51 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative by September 1, 2021, the first day in which FINRA will no longer accept OATS data.52 As discussed above, LTSE believes that it is appropriate for FINRA to retire OATS
effective September 1, 2021. LTSE states that the use of CAT Data, whether by LTSE or by FINRA pursuant to LTSEs RSA with FINRA, will allow for accurate and effective surveillance of market activity on LTSE. In addition, August 31, 2021, will be the last OATS
Business Day, as defined under FINRA
Rule 7450b3, for which OATS will accept order events and perform routine processing, and reports submitted to OATS for order events that occur after August 31, 2021, will be rejected. The Commission believes that it is 46 15

U.S.C. 78sb3A.
CFR 240.19b4f6. In addition, Rule 19b 4f6iii requires the Exchange to give the Commission written notice of the Exchanges intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement.
48 15 U.S.C. 78sb3A.
49 17 CFR 240.19b4.
50 17 CFR 240.19b4f6.
51 17 CFR 240.19b4f6iii.
52 In the unlikely event that FINRA determines it is unable to retire OATS effective September 1, 2021, LTSE will delay the retirement of LTSE Rule 11.420 pending the actual retirement of FINRA
OATS.
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