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Federal Register / Vol. 86, No. 146 / Tuesday, August 3, 2021 / Notices D Promotions and Compensation D Project Reinvest Wind-Down D Grant Appropriations Disbursement b. Internal Audit Performance Scorecard c. FY21 Plan Projects Activity Summary as of July 13, 2021
d. Implementation of Internal Audit Recommendations VI. Adjournment CONTACT PERSON FOR MORE INFORMATION:
Lakeyia Thompson, Special Assistant, 202 5249940; Lthompson@nw.org.
Lakeyia Thompson, Special Assistant.
FR Doc. 202116645 Filed 73021; 4:15 pm BILLING CODE 757002P

SECURITIES AND EXCHANGE
COMMISSION
Release No. 3492518; File No. SRCBOE
2021042

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Enhance and Clarify its Price Adjust Process for Certain Market-Maker Interest, Specifically Book Only Orders and Bulk Messages Submitted Through Bulk Ports and Modify the Bulk Message Fat Finger Check July 28, 2021.

Pursuant to Section 19b1 of the Securities Exchange Act of 1934
Act,1 and Rule 19b4 thereunder,2
notice is hereby given that on July 16, 2021, Cboe Exchange, Inc. Exchange or Cboe Options filed with the Securities and Exchange Commission Commission the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a noncontroversial proposed rule change pursuant to Section 19b3Aiii of the Act 3 and Rule 19b4f6
thereunder.4 The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

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I. Self-Regulatory Organizations Statement of the Terms of Substance of the Proposed Rule Change Cboe Exchange, Inc. the Exchange or Cboe Options proposes to enhance and clarify its Price Adjust process and modify the bulk message fat finger 1 15

U.S.C. 78sb1.
2 17 CFR 240.19b4.
3 15 U.S.C. 78sb3Aiii.
4 17 CFR 240.19b4f6.

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check. The text of the proposed rule change is provided in Exhibit 5.
The text of the proposed rule change is also available on the Exchanges website http www.cboe.com/
AboutCBOE/
CBOELegalRegulatoryHome.aspx, at the Exchanges Office of the Secretary, and at the Commissions Public Reference Room.
II. Self-Regulatory Organizations Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organizations Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to enhance its Price Adjust as defined below process for certain Market-Maker interest specifically Book Only 5 orders and bulk messages 6 submitted through bulk ports 7and clarify other parts of that process, as well as modify the bulk message fat finger check.
Rule 5.32b describes the Price Adjust process, which applies to an order by default or not designated as Cancel Back.8 The System adjusts the 5 Rule 5.6c defines a Book Only order as an order the System ranks and executes pursuant to Rule 5.32, subjects to the Price Adjust process pursuant to Rule 5.32, or cancels, as applicable in accordance with User instructions, without routing away to another exchange. Users may designate bulk messages as Book Only as set forth in Rule 5.5c.
6 The term bulk message means a single electronic message a User submits with an M
Capacity for the account of a Market-Maker to the Exchange in which the User may enter, modify, or cancel up to an Exchange-specified number of bids and offers. A User may submit a bulk message through a bulk port as set forth in Rule 5.6c3.
The System handles a bulk message bid or offer in the same manner as it handles an order or quote unless the Rules specify otherwise. See Rule 1.1.
7 A bulk port is a dedicated logical port that provides Users with the ability to submit bulk messages, single orders, and auction responses, each subject to certain restrictions. See Rule 5.5c3.
8 Rule 5.6c defines a Cancel Back order as an order including a bulk message a User designates to not be subject to the Price Adjust Process pursuant to Rule 5.32 that the System cancels or
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price Price Adjust of an order designated as Price Adjust or an order not designated as Cancel Back as follows:
A If a buy sell non-all-or-none AON
order at the time of entry, would lock or cross:
i A Protected Quotation of another options exchange or the Exchange, the System ranks and displays the order at one minimum price variation below above the current national best offer NBO national best bid NBB; or ii the offer bid of a sell buy AON order resting on the Book at or better than the Exchanges best offer bid, the System ranks the resting AON order one minimum price variation above below the bid offer of the non-AON order.
B Incoming AON Orders. If a buy sell AON order, at the time of entry, would:
i Cross a Protected Offer Bid of another options exchange or a sell buy AON order resting on the Book at or better than the Exchanges best offer bid, the System ranks the incoming AON order at a price equal to the Protected Offer Bid or the offer bid of the resting AON order, respectively; or ii lock or cross a Protected Offer Bid of the Exchange, the System ranks the incoming AON order at a price one minimum price variation below above the Protected Offer Bid.

This Price Adjust process applies to Book Only orders and bulk messages submitted that are designated as Price Adjust and not designated as Cancel Back. Separately, a Book Only order or bulk message bid or offer or unexecuted portion is rejected if submitted by a Market-Maker with an appointment in the class through a bulk port if it would execute against a resting offer or bid, respectively with a capacity of M.
Therefore, if a Book Only bulk message bid of an appointed Market-Maker does not execute upon entry and would rest at the same price as an offer not represented by a capacity of M, that bid price would be adjusted and rest on the book at one minimum price variation below the offer. However, if the offer was represented by a capacity of M, the System would reject the bid since it may not execute against that resting offer.
The proposed rule change amends the Price Adjust process so that an appointed Market-Makers Book Only bids and offers submitted through a bulk port may have the opportunity to rest on the book if they are submitted at the same price as the opposite side of the market when represented by MarketMaker interest. Specifically, the proposed rule change adds rejects immediately at the time the System receives the order or upon return to the System after being routed away if displaying the order on the Book would create a violation of Rule 5.67, or if the order cannot otherwise be executed or displayed in the Book at its limit price.

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