Je veux savoir à propos de…

29650

Federal Register / Vol. 86, No. 104 / Wednesday, June 2, 2021 / Notices
jbell on DSKJLSW7X2PROD with NOTICES2

in an amount other than a round lot i.e., 100 shares. The Exchange is not adopting an exception for odd-lot orders under these circumstances because the minimum unit of trading for Securities pursuant to proposed Rule 25020 is one Security. The Exchange believes that there may be a notable amount of trading in amounts of less than 100
Securities i.e., trading in odd-lot amounts, and the Exchange accordingly does not believe that it is appropriate to allow BSTX Participants to trade ahead of customer orders just to offset an oddlot customer order.
The Exchange believes that the proposed Rule 23000 Series relating to trading practice rules is consistent with Section 6b5 of the Exchange Act 170
because these proposed rules are designed to prevent fraudulent and manipulative acts and practices that could harm investors and to promote just and equitable principles of trade.
The proposed rules in the Rule 23000
Series are substantially similar to the rules of other exchanges and generally include a variety of prohibitions against types of trading activity or other conduct that could potentially be manipulative, such as prohibitions against market manipulation, fictitious transactions, and the dissemination of false information. The Exchange has proposed to exclude certain provisions from, or make certain modifications to, comparable rules of other SROs, as detailed above, in order to account for certain unique aspects related to the proposed trading of Securities. The Exchange believes that it is consistent with applicable requirements under the Exchange Act to exclude these provisions and exceptions because they set forth requirements that would not apply to BSTX Participants trading in Securities and are not necessary for the Exchange to carry out its functions of facilitating Security transactions and regulating BSTX Participants.
Disciplinary Rules Rule 24000 Series With respect to disciplinary matters, the Exchange proposes to adopt Rule 24000 Discipline and Summary Suspension, which provides that the provisions of the Exchange Rule 11000
Series Summary Suspension, 12000
Series Discipline, 13000 Series Review of Certain Exchange Actions, and 14000 Series Arbitration of the Exchange Rules shall be applicable to BSTX Participants and trading on the BSTX System. The Exchange already has Rules pertaining to discipline and suspension of Exchange Participants that it proposes to extend to BSTX
170 15

U.S.C. 78fb5.

VerDate Sep<11>2014

18:31 Jun 01, 2021

Jkt 253001

Participants and trading on the BSTX
System. The Exchange also proposes to adopt as Rule 24010 a minor rule violation plan with respect to transactions on BSTX.171
Proposed Rule 24000 incorporates by reference existing rules that have already been approved by the Commission.
Trading Rules and the BSTX System Rule 25000 Series Rule 25000Access to and Conduct on the BSTX Marketplace The Exchange proposes to adopt Rule 25000 Access to and Conduct on the BSTX Marketplace to set forth rules relating to access to the BSTX System and certain conduct requirements applicable to BSTX Participants.
Specifically, proposed Rule 25000
provides that only BSTX Participants, including their associated persons, that are approved for trading on the BSTX
System shall effect any transaction on the BSTX System. Proposed Rule 25000b generally requires that a BSTX
Participant maintain a list of authorized traders that may obtain access to the BSTX System on behalf of the BSTX
Participant, have procedures in place reasonably designed to ensure that all authorized traders comply with Exchange Rules and to prevent unauthorized access to the BSTX
System, and to provide the list of authorized traders to the Exchange upon request. Proposed Rule 25000c and d restate provisions that are already set forth in Exchange Rule 7000, generally providing that BSTX Participants shall not engage in conduct that is inconsistent with the maintenance of a fair and orderly market or the ordinary and efficient conduct of business, as well as conduct that is likely to impair public confidence in the operations of the Exchange. Examples of such prohibited conduct include failure to abide by a determination of the Exchange, refusal to provide information requested by the Exchange, and failure to adequately supervise employees. Proposed Rule 25000f provides the Exchange with authority to suspend or terminate access to the BSTX System under certain circumstances.
The Exchange believes that proposed Rule 25000 is consistent with Section 6b5 of the Exchange Act 172 because it is designed to protect investors and the public interest and promote just and equitable principles of trade by ensuring 171 The proposed additions to the Exchanges minor rule violation plan pursuant to proposed Rule 24010 are discussed below in Part IV.
172 15 U.S.C. 78fb5.

PO 00000

Frm 00018

Fmt 4701

Sfmt 4703

that BSTX Participants would not allow for unauthorized access to the BSTX
System and would not engage in conduct detrimental to the maintenance of fair and orderly markets.
Rule 25010Days/Hours Proposed Rule 25010 sets forth the days and hours during which BSTX
would be open for business and during which transactions may be effected on the BSTX System. Under the proposed rule, transactions may be executed on the BSTX System between 9:30 a.m. and 4:00 p.m. Eastern Time. The proposed rule also specifies certain holidays BSTX would not be open e.g., New Years Day and provides that the Chief Executive Officer, President, or Chief Regulatory Officer of the Exchange, or such persons designee who is a senior officer of the Exchange, shall have the power to halt or suspend trading in any Securities, close some or all of BSTXs facilities, and determine the duration of any such halt, suspension, or closing, when such person deems the action necessary for the maintenance of fair and orderly markets, the protection of investors, or otherwise in the public interest.
The Exchange believes that proposed Rule 25010 is designed to protect investors and the public interest, consistent with Section 6b5 of the Exchange Act,173 by setting forth the days and hours that trades may be effected on the BSTX System and by providing officers of the Exchange with the authority to halt or suspend trading when such officers believe that such action is necessary or appropriate to maintain fair and orderly markets or to protect investors or in the public interest.
Rule 25020Units of Trading Proposed Rule 25020 sets forth the minimum unit of trading on the BSTX
System, which shall be one Security.
The Exchange believes that proposed Rule 25020 is consistent with Section 6b5 of the Exchange Act 174 because it fosters cooperation and coordination of persons engaged in facilitating transactions in securities by specifying the minimum unit of trading of Securities on the BSTX System. In addition, other exchanges similarly provide that the minimum unit of trading is one share for their market and/or for certain securities.175
173 15

U.S.C. 78fb5.
U.S.C. 78fb5.
175 See e.g., IEX Rule 11.180.
174 15

E:FRFM02JNN2.SGM

02JNN2