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Federal Register / Vol. 86, No. 168 / Thursday, September 2, 2021 / Notices
lotter on DSK11XQN23PROD with NOTICES2

addition to the TOP, the Exchange would disseminate pursuant to proposed Rule 25040a3: i Paired Securities, which is the quantity of Securities that would execute at the TOP; ii the Imbalance Quantity, which is the number of Securities that may not be matched with other orders at the TOP at the time of dissemination;
and iii the Imbalance Side, which is the buy/sell direction of any imbalance at the time of dissemination collectively, with the TOP, Broadcast Information.171 Broadcast Information would be recalculated and disseminated every time a new order is received or cancelled and where such event causes the TOP or Paired Securities to change.
With respect to priority during the opening match for all Securities, consistent with proposed Rule 25080
Execution and Price/Time Priority, among multiple orders at the same price, execution priority during the opening match is determined based on the time the order was received by the BSTX System.
Consistent with the manner in which the Exchange opens options trading, the BSTX System would determine a single price at which a BSTX-listed Security would be opened by calculating the optimum number of Securities that could be matched at a price, taking into consideration all the orders on the BSTX Book.172 Proposed Rule 25040a6 provides that the opening match price is the price which results in the matching of the highest number of Securities. If two or more prices would satisfy this maximum quantity criteria, the price leaving the fewest resting Securities in the BSTX Book will be selected at the opening price and where two or more prices would satisfy the maximum quantity criteria and leave the fewest Securities in the BSTX Book, the price closest to the previous days closing price will be selected.173 The opening price must also be within the Collar Price Range as set forth in proposed Rule 25040a5, which is designed to ensure that a Security opens in an fair and orderly manner and under market conditions where there is sufficient quotation interest e.g., a national best bid and offer, the market 171 Pursuant to proposed Rule 25040a3, any orders which are at a better price i.e., bid higher or offer lower than the TOP would be shown only as a total quantity on the BSTX Book at a price equal to the TOP.
172 See proposed Rule 25040a4ii.
173 With respect to an initial public offering of a Security where there is no previous days closing price, the opening price would be the price assigned to the Security by the underwriter for the offering, referred to as the Initial Security Offering Reference Price. See Proposed Rule 25040a5ii3.

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is not crossed, and where the opening price will not drastically depart from the market at the time of the auction or the preceding days closing price.174
Unexecuted trading interest during the opening match will move to the BSTX
Book and will preserve price time priority.175 When the BSTX System cannot determine an opening price of a BSTX-listed Security at the start of regular trading hours, BSTX would nevertheless open the Security for trading and move all trading interest received during the Pre-Opening Phase to the BSTX Book.176
For initial public offerings of Securities Initial Security Offerings, the process would be generally the same as regular market openings. However, in advance of an Initial Security Offering auction Initial Security Offering Auction, the Exchange shall announce a Quote-Only Period that shall be between fifteen 15 and thirty 30
minutes plus a short random period prior to the Initial Security Offering Auction.177 The Quote-Only Period may be extended in certain cases.178 As with regular market openings the Exchange would disseminate Broadcast Information at the commencement of the Quote Only Period, and Broadcast Information would be re-calculated and disseminated every time a new order is received or cancelled and where such event causes the TOP price or Paired Securities to change.179 In the event of any extension to the Quote-Only Period or a trading pause, the Exchange will notify market participants regarding the circumstances and length of the extension.180 Orders will be matched and executed at the conclusion of the Quote-Only Period, rather than at 9:30
a.m. Eastern Time.181 Following the 174 See proposed Rule 25040a5. The Exchange notes that the auction collars proposed in Rule 25040a5 are substantially similar to those of Cboe BZX. See Cboe BZX Rule 11.23.
175 See proposed Rule 25040a7.
176 Id.
177 See proposed Rule 25040b1.
178 Such cases are when: i There is no TOP; ii the underwriter requests an extension; iii the TOP
moves the greater of 10% or fifty 50 cents in the fifteen 15 seconds prior to the initial cross; or iv in the event of a technical or systems issue at the Exchange that may impair the ability of BSTX
Participants to participate in the Initial Security Offering or of the Exchange to complete the Initial Security Offering. See proposed Rule 25040b2.
179 See proposed Rule 25040b3.
180 See proposed Rule 25040b4. The Exchange also proposes that if a trading pause is triggered by the Exchange or if the Exchange is unable to reopen trading at the end of the trading pause due to a systems or technology issue, the Exchange will immediately notify the single plan processor responsible for consolidation of information for the security pursuant to Rule 603 of Regulation NMS
under the Securities Exchange Act of 1934. Id.
181 See proposed Rule 25040b5.

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initial cross at the end of the QuoteOnly Period wherein orders will execute based on price/time priority consistent with proposed Rule 25080, the Exchange will transition to normal trading pursuant to proposed Rule 25040a6.182
The Exchange also proposes a process for reopening trading following a Limit Up-Limit Down Halt or trading pause Halt Auctions. For Halt Auctions, the Exchange proposes that in advance of reopening, the Exchange shall announce a Quote-Only Period that shall be five 5 minutes prior to the Halt Auction.183 This Quote-Only Period may be extended in certain circumstances.184 The Exchange proposes to disseminate the same Broadcast Information as it does for an Initial Security Offering Auction and would similarly provide notification of any extension to the quote-only period as with an Initial Security Offering Auction.185 The transition to normal trading would also occur in the same manner as Initial Security Offering Auctions, as described above.186
The Exchange also proposes to adopt certain contingency procedures in proposed Rule 25040d that would provide that when a disruption occurs that prevents the execution of an Initial Security Offering Auction the Exchange will publicly announce the Quote-Only Period for the Initial Security Offering Auction, and the Exchange will then cancel all orders on the BSTX Book and 182 As with the regular opening process, orders marked IOC submitted during the Pre-Opening Phase of an Initial Security Offering Auction would be rejected. See proposed Rule 25040b6.
183 See proposed Rule 25040c1. Orders marked IOC submitted during the Quote-Only Period would be rejected. In addition, Halt Auctions would be subject to the proposed Halt Auction Collar, as set forth in proposed Rule 25040c2i and ii. These proposed collars for Halt Auctions are substantially similar to those provided by Cboe BZX, and are designed to make sure that the Exchange is able to reopen trading in a Security in a fair and orderly manner. See Cboe BZX Rule 11.23d. To the extent an Halt Auction would occur at an Impermissible Price i.e., a price outside of the proposed Halt Auction collars, the Exchange would extend the period of Halt Auction and gradually expand the scope of the collar price range over time until it is able to re-open trading in the Security in a manner consistent with proposed Rule 25040c2.
184 See proposed Rule 25040c2. The QuoteOnly Period shall be extended for an additional five 5 minutes should a Halt Auction be unable to be performed due to the absence of a TOP Initial Extension Period. After the Initial Extension Period, the Exchange proposes that the Quote-Only Period shall be extended for additional five 5
minute periods should a Halt Auction be unable to be performed due to absence of a TOP Additional Extension Period until a Halt Auction occurs.
Under the proposed Rule, the Exchange shall attempt to conduct a Halt Auction during the course of each Additional Extension Period. Id.
185 See proposed Rule 25040c35.
186 Id.

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