60 Day Notice

Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices

jspears on DSK121TN23PROD with NOTICES1

under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.) (‘‘Act’’).
On February 12, 1935, the
Commission adopted Rule 12d2–1 1
(‘‘Suspension of Trading’’) which sets
forth the conditions and procedures
under which a security may be
suspended from trading under Section
12(d) of the Act. 2 Rule 12d2–1 provides
the procedures by which a national
securities exchange may suspend from
trading a security that is listed and
registered on the exchange. Under Rule
12d2–1, an exchange is permitted to
suspend from trading a listed security in
accordance with its rules, and must
promptly notify the Commission of any
such suspension, along with the
effective date and the reasons for the
suspension.
Any such suspension may be
continued until such time as the
Commission may determine that the
suspension is designed to evade the
provisions of Section 12(d) of the Act
and Rule 12d2–2 thereunder.3 During
the continuance of such suspension
under Rule 12d2–1, the exchange is
required to notify the Commission
promptly of any change in the reasons
for the suspension. Upon the restoration
to trading of any security suspended
under Rule 12d2–1, the exchange must
notify the Commission promptly of the
effective date of such restoration.
The trading suspension notices serve
a number of purposes. First, they inform
the Commission that an exchange has
suspended from trading a listed security
or reintroduced trading in a previously
suspended security. They also provide
the Commission with information
necessary for it to determine that the
suspension has been accomplished in
accordance with the rules of the
exchange, and to verify that the
exchange has not evaded the
requirements of Section 12(d) of the Act
and Rule 12d2–2 thereunder by
improperly employing a trading
suspension. Without Rule 12d2–1, the
Commission would be unable to fully
implement these statutory
responsibilities.
There are 24 national securities
exchanges 4 that are subject to Rule
1 See Securities Exchange Act Release No. 98
(February 12, 1935).
2 See Securities Exchange Act Release No. 7011
(February 5, 1963), 28 FR 1506 (February 16, 1963).
3 Rule 12d2–2 prescribes the circumstances under
which a security may be delisted from an exchange
and withdrawn from registration under Section
12(b) of the Act, and provides the procedures for
taking such action.
4 The Exchanges are BOX Exchange LLC, Cboe
BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe
C2 Exchange, Inc., Cboe EDGA Exchange, Inc., Cboe
EDGX Exchange, Inc., Cboe Exchange, Inc.,
Investors Exchange LLC, Long Term Stock

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12d2–1. The burden of complying with
Rule 12d2–1 is not evenly distributed
among the exchanges, however, since
there are many more securities listed on
the New York Stock Exchange, Inc., the
NASDAQ Stock Exchange, and the
NYSE American LLC than on the other
exchanges.5 There are approximately
878 responses 6 under Rule 12d2–1 for
the purpose of suspension of trading
from the national securities exchanges
each year, and the resultant aggregate
annual reporting hour burden would be,
assuming on average one-half reporting
hour per response, 439 annual burden
hours for all exchanges. The related
internal compliance costs associated
with these burden hours are $98,354 per
year.
The collection of information
obligations imposed by Rule 12d2–1 is
mandatory. The response will be
available to the public and will not be
kept confidential.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) www.reginfo.gov/public/do/
PRAMain and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o Cynthia Roscoe, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: [email protected].
Dated: October 15, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–22906 Filed 10–20–21; 8:45 am]
BILLING CODE 8011–01–P

Exchange, Inc., MEMX, LLC, Miami International
Securities Exchange, MIAX Emerald, LLC, MIAX
PEARL, LLC, Nasdaq BX, Inc., Nasdaq GEMX, LLC,
Nasdaq ISE, LLC, Nasdaq MRX, LLC, Nasdaq PHLX
LLC, The Nasdaq Stock Market, New York Stock
Exchange LLC, NYSE Arca, Inc., NYSE Chicago,
Inc., NYSE American LLC, NYSE National, Inc.
5 In fact, some exchanges do not file any trading
suspension reports in a given year.
6 The 878 figure was calculated by averaging the
numbers for compliance in 2019 and 2020, which
are 822 and 933, respectively.

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58329

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–451, OMB Control No.
3235–0763]

Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Rule 304 of Regulation ATS and Form ATS

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 304 of Regulation
ATS (17 CFR 242.304) and Form ATS–
N under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.) (‘‘Exchange
Act’’). The Commission plans to submit
this existing collection of information to
the Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Regulation ATS provides a regulatory
structure for alternative trading systems.
Rule 304 of Regulation ATS provides
conditions for NMS Stock ATSs seeking
to rely on the exemption from the
definition of ‘‘exchange’’ provided by
Rule 3a1–1(a) of the Exchange Act,
including to file a Form ATS–N, and for
that Form ATS–N to become effective.
Form ATS–N requires NMS Stock ATSs
to provide information about their
manner of operations, the broker-dealer
operator, and the ATS-related activities
of the broker-dealer operator and its
affiliates to comply with the conditions
provided under Rule 304. Form ATS–N
promotes more efficient and effective
market operations by providing more
transparency to market participants
about the operations of NMS Stock
ATSs and the potential conflicts of
interest of the controlling broker-dealer
operator and its affiliates, and helps
brokers meet their best execution
obligations to their customers.
Operational transparency rules,
including Form ATS–N, are designed to
increase competition among trading
centers in regard to order routing and
execution quality.
The Commission staff estimates that
entities subject to the requirements of
Rule 304 and Form ATS–N will spend
a total of approximately 2,042 hours a
year to comply with the Rule.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the

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Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices

Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
[email protected].
Dated: October 15, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–22904 Filed 10–20–21; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93366; File No. SR–
CboeEDGA–2021–023]

Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Extend the
Pilot Related to the Market-Wide
Circuit Breaker in Rule 11.16

jspears on DSK121TN23PROD with NOTICES1

October 15, 2021.

Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
15, 2021, Cboe EDGA Exchange, Inc.
(the ‘‘Exchange’’ or ‘‘EDGA’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 The Commission is
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17

17:35 Oct 20, 2021

I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGA Exchange, Inc. (‘‘EDGA’’
or the ‘‘Exchange’’) is filing with the
Securities and Exchange Commission
(the ‘‘Commission’’) a proposal to
extend the pilot related to the marketwide circuit breaker in Rule 11.16. The
text of the proposed rule change is
provided in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (http://markets.cboe.com/us/
equities/regulation/rule_filings/edga/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
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 Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
EDGA Rules 11.16(a) through (d), (f)
and (g) describe the methodology for
determining when to halt trading in all
stocks due to extraordinary market
volatility, i.e., market-wide circuit
breakers. The market-wide circuit
breaker (‘‘MWCB’’) mechanism was
approved by the Commission to operate
on a pilot basis, the term of which was
to coincide with the pilot period for the
Plan to Address Extraordinary Market
Volatility Pursuant to Rule 608 of
Regulation NMS (the ‘‘LULD Plan’’),5
including any extensions to the pilot
period for the LULD Plan. In April 2019,
the Commission approved an
amendment to the LULD Plan for it to
operate on a permanent, rather than
5 See Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498 (June 6, 2012). The
LULD Plan provides a mechanism to address
extraordinary market volatility in individual
securities.

1 15

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publishing this notice to solicit
comments on the proposed rule change
from interested persons.

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pilot, basis.6 In light of the proposal to
make the LULD Plan permanent, the
Exchange amended Rule 11.16 to untie
the pilot’s effectiveness from that of the
LULD Plan and to extend the pilot’s
effectiveness to the close of business on
October 18, 2019.7 The Exchange
subsequently amended Rule 11.16 to
extend the pilot’s effectiveness for an
additional year to the close of business
on October 18, 2020,8 and again to the
close of business on October 18, 2021.9
The Exchange now proposes to amend
Rule 11.16 to extend the pilot to the
close of business on March 18, 2022.
This filing does not propose any
substantive or additional changes to
Rule 11.16.
The market-wide circuit breaker
under Rule 11.16 provides an important,
automatic mechanism that is invoked to
promote stability and investor
confidence during a period of
significant stress when securities
markets experience extreme broad-based
declines. All U.S. equity exchanges and
FINRA adopted uniform rules on a pilot
basis relating to market-wide circuit
breakers in 2012 (‘‘MWCB Rules’’),
which are designed to slow the effects
of extreme price movement through
coordinated trading halts across
securities markets when severe price
declines reach levels that may exhaust
market liquidity.10 Market-wide circuit
breakers provide for trading halts in all
equities and options markets during a
severe market decline as measured by a
single-day decline in the S&P 500 Index.
Pursuant to Rule 11.16, a market-wide
trading halt will be triggered if the S&P
500 Index declines in price by specified
percentages from the prior day’s closing
price of that index. Currently, the
triggers are set at three circuit breaker
thresholds: 7% (Level 1), 13% (Level 2),
and 20% (Level 3). A market decline
that triggers a Level 1 or Level 2 halt
after 9:30 a.m. ET and before 3:25 p.m.
ET would halt market-wide trading for
6 See Securities Exchange Act Release No. 85623
(April 11, 2019), 84 FR 16086 (April 17, 2019).
7 See Securities Exchange Act Release No. 85668
(April 16, 2019), 84 FR 16743 (April 22, 2019) (SR–
CboeEDGA–2019–006).
8 See Securities Exchange Act Release No. 87335
(October 17, 2019), 84 FR 56858 (October 23, 2019)
(SR-CboeEDGA–2019–016)
9 See Securities Exchange Act Release No. 90127
(October 8, 2020), 85 FR 65085 (October 14, 2020)
(SR-CboeEDGA–2020–026).
10 See Securities Exchange Act Release No. 67090
(May 31, 2012), 77 FR 33531 (June 6, 2012) (SR–
BATS–2011–038; SR–BYX–2011–025; SR–BX–
2011–068; SR–CBOE–2011–087; SR–C2–2011–024;
SR–CHX–2011–30; SR–EDGA–2011–31; SR–EDGX–
2011–30; SR–FINRA–2011–054; SR–ISE–2011–61;
SR–NASDAQ–2011–131; SR–NSX–2011–11; SR–
NYSE–2011–48; SR–NYSEAmex–2011–73; SR–
NYSEArca–2011–68; SR–Phlx–2011–129) (‘‘MWCB
Approval Order’’).

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