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Federal Register / Vol. 86, No. 17 / Thursday, January 28, 2021 / Notices
Exchange to determine the amounts of the Maximum Composite Width and Opening Collar on a class and Composite Bid basis will remove impediments to and perfect the mechanism of a free and open market and a national market system and protect investors, because it will provide the Exchange with flexibility to consider the different market models and characteristics of different classes, and respond to then-current market conditions. The Rules currently permit the Exchange to modify these amounts during the opening auction process when it deems necessary to maintain a fair and orderly opening process which modifications the Exchange disseminates to all subscribers to the Exchanges data feeds that deliver opening auction updates. This proposed change merely permits the Exchange to modify these amounts at any time as it deems necessary and appropriate. The Exchange notes several options exchanges are able to change the amounts of valid opening widths by notice or circular and do not need to submit a rule filing to the Commission to do so, and the proposed rule change would provide the Exchange with the same flexibility to determine maximum opening widths that other exchanges have.21
B. Self-Regulatory Organizations 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. The Exchange does not believe that the proposed rule change will impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because all Users may trade in any series that opens subject to the proposed forced opening process. The Exchange believes it is appropriate to limit the forced opening to equity and ETP
options, as those may be multiply listed on exchanges. Additionally, all Users will have the opportunity to instruct the System to cancel its market orders or all open orders in the event of a forced or otherwise manual opening. Cancellation of some or all of a Users orders in the event of such an opening would be 21 See, e.g., NOM Options 3, Section 8a6, EDGX Rule 21.7a definitions of Maximum Composite Width and Opening Collar, BZX Rule 21.7a definitions of Maximum Composite Width and Opening Collar, and C2 Rule 6.11a definitions of Maximum Composite Width and Opening Collar; see also MIAX Rule 503f2
which permits MIAX to determine by circular an acceptable range in which openings are permissible if there is no valid width NBBO.

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voluntary and completely within the Users discretion. The Exchange believes the proposed rule change to determine the amounts of the Maximum Composite Width and Opening Collar on a class and Composite Bid basis will not impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act, because the determined amounts by Composite Bid for each class will apply to all orders of all market participants in the applicable class in the same manner. The Exchange believes it is appropriate to be able to determine different amounts on a class basis it already determines different amounts on a Composite Bid basis, because it will provide the Exchange with flexibility to consider the different market models and characteristics of different classes, and respond to thencurrent market conditions. The Rules currently permit the Exchange to modify these amounts during the opening auction process when it deems necessary to maintain a fair and orderly opening process which modifications the Exchange disseminates to all subscribers to the Exchanges data feeds that deliver opening auction updates.
This proposed change merely permits the Exchange to modify these amounts at any time as it deems necessary and appropriate.
The Exchange does not believe that the proposed rule change will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed forced opening process will permit series to open on the Exchange that are otherwise open for trading on other options Exchange, which may increase liquidity and competition in those series sooner.
Additionally, the Exchange believes opening series for trading on the Exchange that are open for trading on other options exchanges will put Exchange Users on equal footing with other market participants, as it will provide Users orders that are otherwise resting in the Queuing Book and awaiting execution with the ability to get into the market for potential execution. The proposed flexibility for Users to instruct the System how to handle their orders in the event of a forced or manual opening applies only to how a Users orders on the Exchange will be handled in such a circumstance.
The Exchange does not believe the proposed rule change to permit the Exchange to determine the amounts of the Maximum Composite Width and Opening Collar on a class and Composite Bid basis will impose any
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burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act.
Several options exchanges are able to change the amounts of valid opening widths by notice or circular and do not need to submit a rule filing to the Commission to do so, and the proposed rule change would provide the Exchange with the same flexibility to determine maximum opening widths that other exchanges have.22
C. Self-Regulatory Organizations Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has designated this rule filing as non-controversial under Section 19b3A 23 of the Act and Rule 19b4f6 24 thereunder. 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 for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19b3A of the Act and Rule 19b 4f6 thereunder.25
A proposed rule change filed under Rule 19b4f6 26 normally does not become operative for 30 days after the date of filing. However, pursuant to Rule 19b4f6iii,27 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 22 See, e.g., NOM Options 3, Section 8a6, EDGX Rule 21.7a definitions of Maximum Composite Width and Opening Collar, BZX Rule 21.7a definitions of Maximum Composite Width and Opening Collar, and C2 Rule 6.11a definitions of Maximum Composite Width and Opening Collar; see also MIAX Rule 503f2
which permits MIAX to determine by circular an acceptable range in which openings are permissible if there is no valid width NBBO.
23 15 U.S.C. 78sb3A.
24 17 CFR 240.19b4f6.
25 In addition, Rule 19b4f6iii requires the Exchange to give the Commission written notice of its 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 filing of the proposed rule change, or such shorter time as designated by the Commission. The Exhange has satisfied this requirement.
26 Id.
27 17 CFR 240.19b4f6iii.

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