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Federal Register / Vol. 86, No. 183 / Friday, September 24, 2021 / Notices disseminating quotes as specified in Phlx Options 3, Section 26. The Exchanges current practice is aligned with the original intent. Today, BX
mitigates quotes by disseminating them only when the size associated with a bid or offer increases by an amount greater than or equal to a certain percentage established by the Exchange. Because BX is not amending its practice with respect to the dissemination of quotes, the Exchange notes that there would be no change in the number of quotes that will be disseminated by the Exchange and the proposed change aligns with the original intent of the rule.
BXs proposal to amend its rule text identical to Phlx to permit it to determine the percentage by which it will disseminate an updated bid or offer price based on the size on an issue-byissue basis is consistent with the Act.
This proposal would provide BX the same flexibility as Phlx to permit it to determine the way it will mitigate quotes among options. BXs proposal to commence posting the percentage specified within proposed Options 3, Section 26a3 on the Exchanges website will continue to provide transparency to Participants.
Finally, removing current Options 3, Section 26d which provides that all message traffic mitigation mechanisms which are used on BX will be identical for the OPRA top of the book broadcast, is consistent with the Act.
The Exchange will mitigate quotes pursuant to its rules for all quotes on the Exchange, including those that constitute the Exchanges best bid and offer. The text of Options 3, Section 26d is unnecessary as OPRA publishes messages disseminated by each options exchange in a similar fashion. Further, BX Options 5, Section 117 describes the type of information disseminated by OPRA.
Today, and over the years, Phlxs number of listed underlyings exceeds the underlyings listed on BX and, therefore, utilizing a message traffic protocol identical to Phlx Options 3, Section 26c would permit BX to sufficiently mitigate quotes.

amend the certain terminology in those rules to align with General 4
terminology is consistent with the Act.
These non-substantive amendments will bring greater clarity to the current registration requirements.

Section 27, Limitation of Liability, from Rule 4626 to Equity 2, Section 17 does not impose an undue burden on competition. The proposal will bring greater clarity to the rule. This amendment is non-substantive.

B. Self-Regulatory Organizations Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.

Options 10, Sections 5, 6 and 9
The Exchanges proposal to amend Options 10, Sections 5, 6, and 9 to conform the terminology to General 4
terminology does not impose and undue burden on competition, rather it will bring greater clarity to the current registration requirements. These amendments are non-substantive.

Options 2, Section 10
The Exchanges proposal to amend Options 2, Section 10, Directed Market Makers, to more explicitly describe, within subparagraph a2 of that rule, the price at which a Directed Market Maker must be quoting at to execute against the Directed Order does not impose an undue burden on competition. Every Directed Market Maker must be quoting at the better of the internal BBO or the NBBO to execute against a Directed Order. This amendment will bring greater clarity to the Directed Market Maker rule.

Options 3, Section 27
The Exchanges proposal to update a citation to Rule 4626 within Options 3, Section 27, Limitation of Liability, from Rule 4626 to Equity 2, Section 17 will bring greater clarity to the rule and is therefore consistent with the Act. The proposed amendment is nonsubstantive.

Options 3, Section 26
The Exchanges proposal to amend Options 3, Section 26, Message Traffic Mitigation, to replace its current rule with a rule identical to Phlx Options 3, Section 26 does not create an undue burden on competition. Specifically, removing the rule text within Options 3, Section 26a, b and d and amending the rule text within c aligns with BXs current practice for mitigating message traffic. BXs current practice will remain unchanged with this proposal. BX
would continue to utilize its current quote mitigation strategies without amending the quantity of messages disseminated.
Amending BXs rule text identical to Phlx to permit it to determine the percentage by which it will disseminate an updated bid or offer price based on the size on an issue-by-issue basis does not impose an undue burden on competition, rather the amendment would provide BX the same flexibility as Phlx to permit it to determine the way it will mitigate quotes among options. Posting the percentage specified within proposed Options 3, Section 26a3 on the Exchanges website, does not impose an undue burden on competition, rather the proposal will continue to provide transparency to Participants.

Options 10, Sections 5, 6, and 9
The Exchanges proposal to amend Options 10, Sections 5, 6, and 9 to
Options 3, Section 27
The Exchanges proposal to update a citation to Rule 4626 within Options 3,
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C. Self-Regulatory Organizations Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: i Significantly affect the protection of investors or the public interest; ii impose any significant burden on competition; and iii become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19b3Aiii of the Act 23 and subparagraph f6 of Rule 19b4
thereunder.24
A proposed rule change filed under Rule 19b4f6 25 normally does not become operative prior to 30 days after the date of the filing. However, Rule 19b4f6iii 26 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the operative delay to permit the Exchange to immediately amend Options 3, Section 26 to adopt a rule identical to Phlxs current rule, which would reflect BXs current quote mitigation practice.
According to the Exchange, current Options 3, Section 26 does not correctly explain the way BX mitigates quote messages and the Exchange believes its proposal will provide clarity regarding 15 U.S.C. 78sb3Aiii.
17 CFR 240.19b4f6. In addition, Rule 19b 4f6 requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement.
25 17 CFR 240.19b4f6.
26 17 CFR 240.19b4f6iii.
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