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Federal Register / Vol. 86, No. 104 / Wednesday, June 2, 2021 / Notices Participants to satisfy these obligations.220
The Exchange believes that proposed Rule 25100 is consistent with Section 6b5 of the Exchange Act 221 because it will foster cooperation and coordination with persons processing information with respect to, and facilitating transactions in securities by requiring the Exchange to collect and disseminate quotation and last sale transaction information to market participants. BSTX Participants will need last sale and quotation information to effectively trade on the BSTX System, and proposed Rule 25100 sets forth the requirement for the Exchange to provide this information as well as the information to be provided. The proposed rule is similar to rules of other exchanges relating to the dissemination of last sale and quotation information.
The Exchange believes that requiring BSTX Participants or firms clearing trades on behalf of other BSTX
Participants to honor their trade obligations on the settlement date is consistent with the Exchange Act because it will foster cooperation with persons engaged in clearing and settling transactions in Securities, consistent with Section 6b5 of the Exchange Act.222

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Rule 25110Clearly Erroneous Proposed Rule 25110 sets forth the manner in which BSTX will resolve clearly erroneous executions that might occur on the BSTX System and is substantially similar to comparable clearly erroneous rules on other exchanges. Under proposed Rule 25100, transactions that involve an obvious error such as price or quantity, may be canceled after review and a determination by an officer of BSTX or such other employee designee of BSTX
Official.223 BSTX Participants that believe they submitted an order erroneously to the Exchange may request a review of the transaction, and must do so within thirty 30 minutes of execution and provide certain information, including the factual basis for believing that the trade is clearly erroneous, to the Official.224 Under 220 These proposed provisions are substantially similar to those of exchanges. See e.g., Nasdaq Rule 4627 and IEX Rule 10.250.
221 15 U.S.C. 78fb5.
222 Id.
223 A transaction made in clearly erroneous error and canceled by both parties or determined by the Exchange to be clearly erroneous would be removed from the Consolidated Tape. Proposed Rule 25110a.
224 Proposed Rule 25110b. The Official may also consider certain outlier transactions on a case by case basis where the request for review is submitted after 30 minutes but no longer than sixty 60

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proposed Rule 25100c, an Official may determine that a transaction is clearly erroneous if the price of the transaction to buy sell that is the subject of the complaint is greater than less than the Reference Price 225 by an amount that equals or exceeds specified Numerical Guidelines. 226 The Official may consider additional factors in determining whether a transaction is clearly erroneous, such as whether trading in the security had recently halted or overall market conditions.227
Similar to other exchanges clearly erroneous rules, the Exchange may determine that trades are clearly erroneous in certain circumstances such as during a system disruption or malfunction, on a BSTX Officers or senior employee designee own motion, during a trading halt, or with respect to a series of transactions over multiple days.228 Under proposed Rule 25110e2, BSTX Participants affected by a determination by an Official may appeal this decision to the Chief Regulatory Officer of BSTX, provided such appeal is made within thirty 30
minutes after the party making the appeal is given notice of the initial determination being appealed.229 The Chief Regulatory Officers determination shall constitute final action by the Exchange on the matter at issue pursuant to proposed Rule 25110e2ii.
The Exchange believes that proposed Rule 25110 is consistent with Section 6b5 of the Exchange Act,230 because minutes after the transaction. Proposed Rule 2511d.
225 The Reference Price would be equal to the consolidated last sale immediately prior to the executions under review except for in circumstances, such as, for example, relevant news impacting a security or securities, periods of extreme market volatility, sustained illiquidity, or widespread system issues, where use of a different Reference Price is necessary for the maintenance of a fair and orderly market and the protection of investors and the public interest. Proposed Rule 25110c1.
226 The proposed Numerical Guidelines are 10%
where the Reference Price ranges from $0.00 to $25.00, 5% where the Reference Price is greater than $25.00 up to and including $50.00, and 3%
where the Reference Price ranges is greater than $50. Proposed Rule 25110c1.
227 Proposed Rule 25110c1.
228 See proposed Rule 25110fj. These provisions are virtually identical to similar provisions of other exchanges clearly erroneous rules other than by making certain administrative edits e.g., replacing the term security with Security.
229 Determinations by an Official pursuant to proposed Rule 25110f relating to system disruptions or malfunctions may not be appealed if the Official made a determination that the nullification of transactions was necessary for the maintenance of a fair and orderly market or the protection of invests and the public interest.
Proposed Rule 25110d2.
230 15 U.S.C. 78fb5.

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it would promote just and equitable principles of trade, remove impediments to, and perfect the mechanism of, a free and open market and a national market system by setting forth the process by which clearly erroneous trades on the BSTX System may be identified and remedied.
Proposed Rule 25110 would apply equally to all BSTX Participants and is therefore not designed to permit unfair discrimination among BSTX
Participants, consistent with Section 6b5 of the Exchange Act.231 The proposed rule is substantially similar to the clearly erroneous rules of other exchanges.232 For example, proposed Rule 25110 does not include provisions related to clearly erroneous transactions for routed orders because orders for Securities will not route to other exchanges.233 Securities would also only trade during regular trading hours i.e., 9:30 a.m. ET to 4:00 p.m. ET, so provisions from comparable exchange rules relating to clearly erroneous executions occurring outside of regular trading hours have been excluded.
Proposed Rule 25110 also excludes provisions from comparable clearly erroneous rules of certain other exchanges relating to clearly erroneous executions in unlisted trading privileges securities that are subject to an initial public offering.234
The Exchange believes that its proposed process for BSTX Participants to appeal clearly erroneous execution determinations made by an Exchange Official pursuant to proposed Rule 25110 to the Chief Regulatory Officer of BSTX is consistent with Section 6b5
of the Exchange Act 235 because it 231 Id.
232 See e.g., Cboe BZX Rule 11.17. Similar to other exchanges comparable rules, proposed Rule 25110
provides BSTX with the ability to determine clearly erroneous trades that result from a system disruption or malfunction, a BSTX Official acting on his or her own motion, trading halts, multi-day trading events, multi-stock events involving five or more but less than twenty securities whose executions occurred within a period of five minutes or less, multi-stock events involving twenty or more securities whose executions occurred within a period of five minutes or less, securities subject to the LULD Plan, and for leveraged ETP Securities.
233 Other exchange clearly erroneous rules reference removing trades from the Consolidated Tape. Because Security transactions would be reported pursuant to a separate transaction reporting plan, proposed Rule 25110 eliminates references to the Consolidated Tape and provides that clearly erroneous Security transactions will be removed from all relevant data feeds disseminating last sale information for Security transactions. See proposed Rule 25110a.
234 The Exchange notes that not all equities exchanges have a provision with respect to trade nullification for UTP securities that are the subject of an initial public offering. See IEX Rule 11.270.
235 15 U.S.C. 78fb5.

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