Voglio sapere a riguardo di…

jbell on DSKJLSW7X2PROD with NOTICES2

36454

Federal Register / Vol. 86, No. 129 / Friday, July 9, 2021 / Notices
proposed change would provide an AON Order with additional execution opportunities.
Proposed Rule 6.62POd3Ci would provide that if an Aggressing Order or Aggressing Quote to sell buy does not satisfy the resting AON Order to buy sell, that Aggressing Order or Aggressing Quote would not trade with and may trade through such AON
Order. Proposed Rule 6.62P
Od3Cii would further provide that if a resting non-displayed order to sell buy does not satisfy the quantity of a same-priced resting AON Order to buy sell, a subsequently arriving order or quote to sell buy that satisfies the AON
Order would trade before such resting non-displayed order or quote to sell buy at that price. Both of these proposed rules are consistent with current Rule 6.62Od4, which provides that an AON Order does not have standing in any Order Process in the Consolidated Book, i.e., a resting AON Order can be ignored if its condition is not met. This proposed rule text is also based on how the MTS
Modifier functions on the cash equity market, as described in Rule 7.31
Ei3Ei and ii.
Proposed Rule 6.62POd3D
would provide that a resting AON Order to buy sell would not be eligible to trade against an Aggressing Order or Aggressing Quote to sell buy: i At a price equal to or above below any orders or quotes to sell buy that are displayed at a price equal to or below above the working price of such AON
Order; or ii at a price above below any orders or quotes to sell buy that are not displayed and that have a working price below above the working price of such AON Order. This proposed rule text is new functionality for AON Orders that is designed to protect the priority of resting orders and quotes and is based on how the MTS
Modifier functions on the cash equity market, as described in Rule 7.31
Ei3C and its subparagraphs i and ii.
Proposed Rule 6.62POd3E
would provide that if a resting AON
Order to buy sell becomes an Aggressing Order it would trade as provided in paragraph d3B of this Rule; however, other resting orders or quotes to buy sell ranked Priority 3
Non-Display Orders that become Aggressing Orders or Aggressing Quotes at the same time as the resting AON
Order would be processed before the AON Order. This is proposed new functionality and is designed to promote clarity in Exchange rules that if multiple orders ranked Priority 3Non-Display Orders, including AON and non-AON

VerDate Sep<11>2014

20:01 Jul 08, 2021

Jkt 253001

Orders, become Aggressing Orders or Aggressing Quotes at the same time, the AON Order would not be eligible trade until the other orders ranked Priority 3Non-Display Orders have been processed, even if they have later working times. The Exchange believes that it would be consistent with the conditional nature of AON Orders for other same-side non-displayed orders to have a trading opportunity before the AON Order.
Proposed Rule 6.62POd3F
would provide that an AON Order may be designated with a Non-Display Remove Modifier and if so designated, a resting AON Order to buy sell that can trade with an ALO Order or Day ISO
ALO Order to sell buy would trade as the liquidity-taking order. This proposed functionality would be new for options trading and is based on the Non-Display Remove Modifier available on the cash equity market, as described in Rules 7.31Ed2B and 7.31
Ee1C.
Stop Order. Stop Orders are currently defined in Rule 6.62Od1. The Exchange proposes to use Pillar terminology to describe Stop Orders in proposed Rule 6.62POd4. Proposed Rule 6.62POd4 would provide that a Stop Order is an order to buy sell a particular option contract that becomes a Market Order or is elected when the Exchange BB BO or the most recent consolidated last sale price reported after the order was placed in the Consolidated Book the Consolidated Last Sale either, the trigger is equal to or higher lower than the specified stop price. Because a Stop Order becomes a Market Order when it is elected, the Exchange proposes that when it is elected, it would be cancelled if it does not meet the validations specified in proposed Rule 6.62P
Oa1A and if not cancelled, it would be assigned a Trading Collar.
Proposed Rule 6.62POd4A
would provide that a Stop Order would be assigned a working time when it is received but would not be ranked or displayed in the Consolidated Book until it is elected and that once converted to a Market Order, the order would be assigned a new working time and be ranked Priority 1- Market Orders.
The original working time assigned to a Stop Order would be used to rank multiple Stop Orders elected at the same time.
Proposed Rule 6.62POd4B
would specify additional events that are designed to limit when a Stop Order may be elected so that a Market Order does not trade during a period of pricing uncertainty:

PO 00000

Frm 00016

Fmt 4701

Sfmt 4703

Proposed Rule 6.62POd4Bi would provide that if not elected on arrival, a Stop Order that is resting would not be eligible to be elected based on a Consolidated Last Sale unless the Consolidated Last Sale is equal to or in between the NBBO. This proposed rule text provides additional transparency of when a resting Stop Order would be eligible to be elected.
Proposed Rule 6.62POd4Bii would provide that a Stop Order would not be elected if the NBBO is crossed.
Proposed Rule 6.62POd4Biii would provide that after a Limit State or Straddle State is lifted, the trigger to elect a Stop Order would be either the Consolidated Last Sale received after such state was lifted or the Exchange BB
BO.30
Stop Limit Order. Stop Limit Orders are currently defined in Rule 6.62
Od2. The Exchange proposes to use Pillar terminology to describe Stop Limit Orders in proposed Rule 6.62P
Od5. Proposed Rule 6.62POd5
would provide that a Stop Limit Order is an order to buy sell a particular option contract that becomes a Limit Order or is elected when the Exchange BB BO or the Consolidated Last Sale either, the trigger is equal to or higher lower than the specified stop price.31 As further proposed, a Stop Limit Order to buy sell would be rejected if the stop price is higher lower than its limit price. Because a Stop Limit Order becomes a Limit Order when it is elected, the Exchange proposes that when it is elected, it would be cancelled if it fails Limit Order Price Protection or a Price Reasonability Check and if not cancelled, it would be assigned a Trading Collar.32
Proposed Rule 6.62POd5A
would provide that a Stop Limit Order would be assigned a working time when it is received but would not be ranked or displayed in the Consolidated Book until it is elected and that once converted to a Limit Order, the order would be assigned a new working time and be ranked Priority 2Display Orders.
Proposed Rule 6.62POd5B
would specify additional events that are designed to limit when a Stop Limit Order may be elected so that a Limit 30 Rule 6.65Aa2 currently provides that the Exchange will not elect Stop Orders when the underlying NMS stock is either in a Limit State or a Straddle State, which would continue to be applicable on Pillar. The Exchange proposes a nonsubstantive amendment to Rule 6.65Aa2 to add a cross-reference to proposed Rule 6.62POd4.
31 The term Consolidated Last Sale is defined in proposed Rule 6.62POd4.
32 See discussion infra, regarding proposed Rule 6.41PO and Price Reasonability Checks.

E:FRFM09JYN2.SGM

09JYN2