Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt the Dark Routing Technique Routing Option; To Eliminate References to the ROUD, ROUE, and ROUQ Routing Options; and To Reflect Additional Routing Strategies for Which the Exchange May Route Orders With a Short Sale Instruction

Published date13 February 2020
Citation85 FR 8327
Record Number2020-02838
SectionNotices
CourtSecurities And Exchange Commission
Federal Register, Volume 85 Issue 30 (Thursday, February 13, 2020)
[Federal Register Volume 85, Number 30 (Thursday, February 13, 2020)]
                [Notices]
                [Pages 8327-8331]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-02838]
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                SECURITIES AND EXCHANGE COMMISSION
                [Release No. 34-88154; File No. SR-CboeEDGX-2020-006]
                Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
                of Filing and Immediate Effectiveness of a Proposed Rule Change To
                Adopt the Dark Routing Technique Routing Option; To Eliminate
                References to the ROUD, ROUE, and ROUQ Routing Options; and To Reflect
                Additional Routing Strategies for Which the Exchange May Route Orders
                With a Short Sale Instruction
                February 7, 2020.
                 Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
                (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
                on February 3, 2020, Cboe EDGX Exchange, Inc. (``Exchange'') filed with
                the Securities and Exchange Commission (``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 ``non-
                controversial'' 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 publishing this notice to solicit comments on the
                proposed rule change from interested persons.
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                 \1\ 15 U.S.C. 78s(b)(1).
                 \2\ 17 CFR 240.19b-4.
                 \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
                 \4\ 17 CFR 240.19b-4(f)(6).
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                I. Self-Regulatory Organization's Statement of the Terms of Substance
                of the Proposed Rule Change
                 Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') proposes:
                To amend Rule 11.11(g)(2) to adopt the proposed Dark Routing Technique
                (``DRT'') routing option on the Exchange; to amend Rule 11.11, as well
                [[Page 8328]]
                as its Fee Schedule, to eliminate references to the ROUD, ROUE, and
                ROUQ routing options; and to amend Rule 11.11 to reflect additional
                routing strategies for which the Exchange may route orders with a short
                sale instruction when a short sale circuit breaker pursuant to Rule 201
                of Regulation SHO is in effect. 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/options/regulation/rule_filings/edgx/), 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
                 The Exchange proposes to: (i) Adopt the DRT routing option under
                proposed Rule 11.11(g)(2); (ii) amend Rule 11.11(g) to eliminate the
                ROUD, ROUE, and ROUQ routing options and to eliminate any such
                references in its Fee Schedule; and (iii) amend Rule 11.11(a) to make
                clear that if a User \5\ selects the RDOT, RDOX, or INET routing
                options, orders with a short sale \6\ instruction when a short sale
                circuit breaker pursuant to Rule 201 of Regulation SHO \7\ is in effect
                are eligible for routing by the Exchange. The Exchange intends to
                implement the proposed rule changes on February 3, 2020.
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                 \5\ See Exchange Rule 1.5(ee).
                 \6\ See Exchange Rule 11.6(o). The term ``short sale'' is
                defined as ``any sale of a security which the seller does not own or
                any sale which is consummated by the delivery of a security borrowed
                by, or for the account of, the seller.'' 17 CFR 242.200(a).
                 \7\ See 17 CFR 242.201; Securities Exchange Act Release No.
                61595 (February 26, 2010), 75 FR 11232 (March 10, 2010).
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                Adopting DRT
                 The Exchange proposes to adopt the DRT under subparagraph (g)(2) as
                a new routing option available on the Exchange. As noted in proposed
                Rule 11.11(g)(2), the DRT routing option would instruct the System \8\
                to route to alternative trading systems (``ATSs'') included in the
                System routing table.\9\ The proposed description of DRT is identical
                to existing Cboe BZX Exchange, Inc. (``BZX'') and Cboe BYX Exchange,
                Inc. (``BYX'') Rules 11.13(b)(3)(D). Thus, the proposed amendment is
                intended to add certain system functionality currently offered by BZX
                and BYX in order to provide a consistent technology offering for Users
                across the Cboe affiliated exchanges.
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                 \8\ The ``System'' is the Exchange's electronic communications
                and trading facility designated by the Board through which
                securities orders of Users are consolidated for ranking, execution
                and, when applicable, routing away. See Exchange Rule 1.55(cc).
                \9\ The term ``System routing table'' refers to the proprietary
                process for determining the specific trading venues to which the
                System routes orders and the order in which it routes them. See
                Exchange Rule 11.11(g).
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                 Currently, for routing mechanisms that route orders to ATSs, the
                Exchange routes such orders using a preselected sequence of venues
                pursuant to the applicable System routing table and every order is
                routed to such venues in that sequence.\10\ Stated another way, all
                orders entered with a routing strategy that is eligible for routing to
                ATSs will first seek liquidity on the Exchange and any unexecuted
                portion of the order will then be routed in accordance with the pre-
                established sequence in the System routing table.
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                 \10\ The Exchange notes that the current routing mechanism is
                set forth in the System routing table, and is not referenced in
                Exchange Rules. Nonetheless, the Exchange proposes to adopt the DRT
                under subparagraph (g)(2) of Rule 11.11 to harmonize the Exchange's
                rules with BZX/BYX Rule 11.13(b)(3)(D).
                ---------------------------------------------------------------------------
                 As proposed, the DRT routing mechanism would instead use a randomly
                generated, weighted permutation to prioritize off-exchange venues based
                on a ``score'' \11\ for each off-exchange venue, where a higher score
                will result in a greater likelihood that the off-exchange venue will be
                selected earlier in the permutation. The DRT routing mechanism will be
                established in the System routing table and replace the existing
                routing mechanism that routes orders to ATSs. The Exchange believes
                that converting from this mechanical, sequential routing strategy to
                the more dynamic strategy applied with DRT will allow an off-exchange
                venue with a lower score to occasionally be selected before an off-
                exchange venue with a higher score, and thus provides the Exchange with
                the most accurate view of the quality at each market. As a result, the
                Exchange believes that DRT will result in improved execution quality.
                Additionally, converting to DRT will result in uniformity that will
                simplify the Exchange's routing logic and management across the Cboe
                equities platforms.
                ---------------------------------------------------------------------------
                 \11\ ``Scores'' are assigned to each off-exchange venue by the
                Exchange and are determined based on various factors, such as order
                fill percentage, latency, and price improvement.
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                Eliminating ROUE, ROUQ, and ROUD
                 In connection with the adoption of the DRT mechanism, the Exchange
                proposes to amend Rule 11.11(g) and the Fee Schedule to eliminate any
                references to routing options that are redundant due to such adoption.
                 Currently, Rule 11.11(g) provides for a variety of routing options
                under which the System will consider the quotations only of accessible
                Trading Centers.\12\ Rules 11.11(g)(2) and 11.11(g)(3)(D) currently
                provides for the ROUD and ROUQ routing options, respectively, which are
                detailed in the System routing table.\13\ For orders entered with a
                ROUD or ROUQ routing options, the System is first checked for available
                shares and then is sent to destinations on the System routing table. If
                shares remain unexecuted after routing, they are posted on the EDGX
                Book, unless otherwise instructed by the User. The ROUD and ROUQ
                routing options first seek liquidity on the Exchange's book, and will
                subsequently route any unfilled portion of the order pursuant to the
                System routing table. Given the proposed implementation of DRT, the
                ROUD and ROUQ routing option will first seek liquidity on the
                Exchange's book, and will subsequently route any unfilled portion via
                DRT. Such a
                [[Page 8329]]
                strategy is duplicative of the Exchange's ROUZ routing option.\14\
                Therefore, the Exchange proposes to eliminate subparagraph (g)(2) and
                (g)(3)(D) of Rule 11.11, as well as Fee Code T from the Exchange's Fee
                Schedule.\15\
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                 \12\ Rule 600(b)(82) of Regulation NMS defines a ``Trading
                Center'' as ``a national securities exchange or national securities
                association that operates an SRO trading facility, an alternative
                trading system, an exchange market maker, an OTC market maker, or
                any other broker or dealer that executes orders internally by
                trading as principal or crossing orders as agent.'' See 17 CFR
                242.201(a)(9); 17 CFR 242.600(b)(82).
                 \13\ While the System routing table is not publicly available,
                the Cboe affiliated equity markets have provided a summary document
                of its available routing options, which is subject to change at any
                time. Such document details the strategies of the ROUD, ROUQ, ROUE,
                ROUZ, and ROUT routing options referenced herein. See https://cdn.cboe.com/resources/features/cboe_exchange_routing-strategies.pdf. See also Exchange Rule 11.11(g), which provides that
                the Exchange reserves the right to route orders simultaneously or
                sequentially, maintain a 124 different System routing table for
                different routing options and to modify the System routing table at
                any time without notice.
                 \14\ See Exchange Rule 11.11(g)(3)(E). See also id.
                 \15\ Fee Code T references both the ROUD and ROUE routing
                options, both of which are proposed to be eliminated from the Fee
                Schedule. As such, the Exchange proposes to eliminate Fee Code T in
                its entirety.
                ---------------------------------------------------------------------------
                 Similarly, the ROUE routing option provided in Rule 11.11(g)(3)(A)
                first seeks liquidity on the Exchange's book, second will route any
                unfilled portion of the order to ATSs pursuant to the System routing
                table, and third will route any unfilled portion of the order to other
                Trading Centers.\16\ Given the proposed implementation of DRT, the ROUE
                routing option will first seek liquidity on the Exchange's book, second
                route any unfilled portion via DRT, and third will route any unfilled
                portion of the order to other Trading centers. Such a strategy is
                duplicative of the Exchange's ROUT routing option.\17\ Therefore, the
                Exchange proposes to eliminate subparagraph (g)(3)(A) of Rule 11.11 and
                references to the ROUE routing option in subparagraphs (g)(11) and
                (12). The Exchange also proposes to remove Fee Codes PR and RQ as they
                both reference the ROUQ routing option which is also proposed to be
                eliminated.\18\ The Exchange also proposes to remove references to the
                ROUE trading strategy in Fee Codes BY, I, and K.
                ---------------------------------------------------------------------------
                 \16\ See supra note 14.
                 \17\ See Exchange Rule 11.11(g)(3)(B). See also supra note 14.
                 \18\ As noted above, Fee Code T references both ROUD and ROUE
                routing strategies, both of which the Exchange is proposing to
                eliminate and, as such, the Exchange proposed above to eliminate Fee
                Code T.
                ---------------------------------------------------------------------------
                RDOT, RDOX, and INET Routing Clarification
                 Under Rule 201 of Regulation SHO, a short sale order in a covered
                security \19\ generally cannot be executed or displayed by a Trading
                Center (such as the Exchange), at a price that is at or below the
                current national best bid (``NBB'') \20\ when a short sale circuit
                breaker is in effect for the covered security (the ``SSCB''). Based on
                this rule, there is no reason for a Trading Center to route an order
                marked short when a SSCB is in effect using a routing option that does
                not provide for a routed order to post to another Trading Center's
                book. Post to Away \21\ and ROOC \22\ routing options are able to post
                an order to another Trading Center's book and, thus, Exchange Rule
                11.11(a) explicitly provides that the Exchange will route orders marked
                short using Post to Away and ROOC routing options when a SSCB is in
                effect.\23\
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                 \19\ Rule 201(a)(1) of Regulation SHO defines the term ``covered
                security'' to mean any ``NMS stock'' as defined under Rule
                600(b)(48) of Regulation NMS. Rule 600(b)(48) of Regulation NMS
                defines an ``NMS stock'' as ``any NMS security other than an
                option.'' Rule 600(b)(47) of Regulation NMS defines an ``NMS
                security'' as ``any security or class of securities for which
                transaction reports are collected, processed, and made available
                pursuant to an effective transaction reporting plan, or an effective
                national market system plan for reporting transactions in listed
                options.'' See 17 CFR 242.201(a)(1); 17 CFR 242.600(b)(47); and 17
                CFR 242.600(b)(48).
                 \20\ See 17 CFR 242.201(a)(4); 17 CFR 242.600(b)(43).
                 \21\ See Exchange Rule 11.11(g)(11). Under the Post to Away
                routing option, the remainder of a routed order is routed to and
                posted to the order book of a destination on the ``System routing
                table'', as specified by the User.
                 \22\ ROOC is a routing option for orders that the User wishes to
                designate for participation in the opening, re-opening (following a
                halt, suspension, or pause), or closing process of a primary listing
                market other than the Exchange (e.g., the New York Stock Exchange,
                Inc. (``NYSE''), Nasdaq Stock Market LLC (``Nasdaq''), NYSE MKT LLC,
                NYSE Arca, Inc. (``NYSE Arca''), or BZX) if received before the
                opening/re-opening/closing time of such market. If shares remain
                unexecuted after attempting to execute in the opening, re-opening,
                or closing process, they are either posted to the EDGX Book,
                executed, or routed to destinations on the System routing table. See
                Exchange Rule 11.11(g)(8).
                 \23\ The Exchange notes that orders routed pursuant to the Post
                to Away, ROOC, RDOT, RDOX, and INET routing options that include a
                short sale instruction are identified as ``short'' and are subject
                to the receiving Trading Center's processes for handling short sale
                orders in compliance with Rule 201 of Regulation SHO.
                ---------------------------------------------------------------------------
                 Similarly, RDOT,\24\ RDOX,\25\ and INET \26\ routing options are
                able to post an order to another Trading Center's book. Based on this
                functionality, the Exchange currently allows orders marked short while
                a SSCB is in effect to be routed using these routing options. As such,
                the Exchange is proposing to amend Rule 11.11(a) in order to codify
                that, in addition to Post to Away and ROOC routing options, short
                orders using the RDOT, RDOX, and INET routing strategies are also able
                to be routed when a SSCB is in effect. Given that orders routed via the
                RDOT, RDOX, and INET routing options are subjected to the receiving
                Trading Center's processes for handling short sale orders in compliance
                with Rule 201 of Regulation SHO in substantially the same manner as the
                ROOC and Post to Away routing options, the Exchange believes such
                functionality is appropriate and that Exchange Rules should be amended
                to codify such functionality.
                ---------------------------------------------------------------------------
                 \24\ RDOT is a routing option under which an order checks the
                System for available shares and then is sent to destinations on the
                System routing table. If shares remain unexecuted after routing,
                they are sent to the NYSE and can be re-routed by the NYSE. Any
                remainder will be posted to the NYSE, unless otherwise instructed by
                the User.
                 \25\ See Exchange Rule 11.11(g)(6). RDOX is a routing option
                under which an order checks the System for available shares, is then
                sent to the NYSE and can be re-routed by the NYSE. If shares remain
                unexecuted after routing, they are posted on the NYSE book, unless
                otherwise instructed by the User.
                 \26\ See Exchange Rule 11.11(g)(4). INET is a routing option
                under which an order checks the System for available shares and then
                is sent to Nasdaq. If shares remain unexecuted after routing, they
                are posted on the Nasdaq book, unless otherwise instructed by the
                User.
                ---------------------------------------------------------------------------
                 Based on the above proposed changes the Exchange also proposes to
                re-alphabetize paragraph (g)(3) of Rule 11.11, and make conforming
                changes to various subparagraphs under paragraph (g) of Rule 11.11.
                Additionally, the Exchange proposes non-substantive changes to Rule
                11.11(g)(7) and (g)(13) to properly reflect the name of Cboe BZX
                Exchange, Inc. and remove the Investors Exchange as a primary listing
                market.
                2. Statutory Basis
                 The Exchange believes the proposed rule change is consistent with
                the Securities Exchange Act of 1934 (the ``Act'') and the rules and
                regulations thereunder applicable to the Exchange and, in particular,
                the requirements of Section 6(b) of the Act.\27\ Specifically, the
                Exchange believes the proposed rule change is consistent with the
                Section 6(b)(5) \28\ requirements that the rules of an exchange be
                designed to prevent fraudulent and manipulative acts and practices, to
                promote just and equitable principles of trade, to foster cooperation
                and coordination with persons engaged in regulating, clearing,
                settling, processing information with respect to, and facilitating
                transactions in securities, to remove impediments to and perfect the
                mechanism of a free and open market and a national market system, and,
                in general, to protect investors and the public interest. Additionally,
                the Exchange believes the proposed rule change is consistent with the
                Section 6(b)(5) \29\ requirement that the rules of an exchange not be
                designed to permit unfair discrimination between customers, issuers,
                brokers, or dealers. The proposed rule change also is designed to
                support the principles of Section 11A(a)(1) \30\ of the Act in that it
                seeks to assure fair competition among brokers and dealers and among
                exchange markets.
                ---------------------------------------------------------------------------
                 \27\ 15 U.S.C. 78f(b).
                 \28\ 15 U.S.C. 78f(b)(5).
                 \29\ Id.
                 \30\ 15 U.S.C. 78k-1(a)(1).
                ---------------------------------------------------------------------------
                [[Page 8330]]
                 In particular, the proposed rule change to add the DRT routing
                option is generally intended to provide a consistent technology
                offering for the Cboe affiliated exchanges, which the Exchange believes
                is designed to remove impediments to and perfect the mechanism of a
                free and open market and a national market system. Further to this
                point, a consistent technology offering, in turn, will simplify the
                technology implementation, changes and maintenance by Users of the
                Exchange that are also participants on BYX and/or BZX. The proposed
                rule changes would also provide Users with access to functionality that
                is intended to result in the efficient execution of such orders and
                will provide additional flexibility as well as increased functionality
                to the Exchange's System and its Users. As a result, the Exchange's
                proposal will further remove impediments to and perfect the mechanism
                of a free and open market and a national market system, and will also
                introduce the DRT routing strategy on the Exchange which will provide
                market participants with greater flexibility in routing orders without
                developing order routing strategies on their own.
                 The Exchange believes the proposed rule change to remove references
                to ROUD, ROUQ, and ROUE from Exchange Rules and the Fee Schedule will
                remove impediments to the mechanism of a free and open market, thereby
                protecting investors and the public interest. As stated above, the
                Exchange is proposing that its routing functionality to ATSs will use
                the DRT routing mechanism in the System routing table effective
                February 3, 2020. As a result, the ROUD, ROUQ, and ROUE routing options
                will function in the same manner as other existing routing options. By
                removing routing options that are duplicative of other existing routing
                options and amending Exchange Rules to reflect a new routing option,
                the Exchange believes the proposed rule change will remove impediments
                to the mechanism of a free and open market and protect investors by
                providing investors with increased transparency regarding rules that
                reflect routing options currently available on the Exchange. Also, as
                it pertains to the proposed changes to Exchange Rule 11.11(g) and the
                Fee Schedule, the Exchange does not believe the proposed amendments
                will permit unfair discrimination among customers, brokers, or dealers
                because the ROUD, ROUQ, and ROUE routing options will no longer be
                available to all Users.
                 Finally, the proposed changes to Rule 11.11(a) are designed to
                ensure clarity in the Exchange's rulebook with respect to the routing
                of orders in compliance with Rule 201 of Regulation SHO. In addition,
                providing Users the ability to send short sale orders that are routable
                pursuant to RDOT, RDOX, and INET routing options provides them
                additional flexibility with regard to the handling of their orders. The
                Exchange notes that orders that include a short sale instruction routed
                pursuant to the RDOT, RDOX, or INET routing options are identified
                ``short'' and, therefore, subject to the receiving Trading Center's
                processes for handling short sale orders in compliance with Regulation
                SHO. The Exchange also notes that the Post to Away and ROOC routing
                options are similar to the RDOT, RDOX, and INET routing options in that
                they route orders to other Trading Centers for posting and/or later
                execution. Rule 11.11(a) currently provides that orders including a
                short sale instruction routed pursuant to the Post to Away or ROOC
                routing options are eligible for routing when a short sale circuit
                breaker is in effect. Thus, the proposed amendments to Rule 11.11(a) is
                directly targeted at removing impediments to and perfecting the
                mechanism of a free and open market and national market system, as well
                as to assure fair competition among brokers and dealers and among
                exchange markets.
                B. Self-Regulatory Organization's Statement on Burden on Competition
                 The Exchange does not believe that the proposed rule change will
                impose any burden on competition that is not necessary or appropriate
                in furtherance of the purposes of the Act. The Exchange notes that the
                proposed amendment to allow orders with a short sale instruction and a
                RDOX, RDOT, or INET routing option to be eligible to route when a short
                sale circuit breaker is in effect will promote consistency between
                other routing strategies (i.e., Post to Away and ROOC) that are
                similarly eligible to route when a short sale circuit breaker is in
                effect and are designed to route orders to other Trading Centers for
                posting and/or later execution. The Exchange does not believe the
                proposed change will have any impact on intermarket competition as the
                RDOX, RDOT, and INET routing strategies are and will continue to be
                available to all Users.
                 The Exchange notes that the proposed amendments to add a reference
                to the DRT routing option and eliminate references to the ROUD, ROUE,
                and ROUQ routing options in Exchange Rules and the Fee Schedule will
                eliminate any potential confusion to investors, as those routing
                options will be duplicative of existing routing options after the
                implementation of the DRT routing mechanism.
                 The Exchange does not believe that the proposed amendments will
                impose any burden on intra-market competition that is not necessary or
                appropriate in furtherance of the purposes of the Act. The Exchange
                provides routing services in a highly competitive market in which
                participants may avail themselves of a wide variety of routing options
                offered by self-regulatory organizations, other broker-dealers, market
                participants' own proprietary routing systems, and service bureaus. In
                such an environment, system enhancements such as the changes proposed
                in this rule filing do not burden competition, because they can succeed
                in attracting order flow to the Exchange only if they offer investors
                higher quality and better value than services offered by others. The
                Exchange reiterates that the proposed rule change to adopt DRT and
                eliminate the ROUE, ROUQ, and ROUD strategies is being proposed in an
                effort to add a consistent technology offering across the Cboe
                affiliated Exchanges.
                C. Self-Regulatory Organization's Statement on Comments on the Proposed
                Rule Change Received From Members, Participants, or Others
                 The Exchange neither solicited nor received comments on the
                proposed rule change.
                III. Date of Effectiveness of the Proposed Rule Change and Timing for
                Commission Action
                 The Exchange has designated this rule filing as non-controversial
                under Section 19(b)(3)(A) of the Act \31\ and Rule 19b-4(f)(6)
                thereunder.\32\ 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 19(b)(3)(A) of the Act and Rule 19b-
                4(f)(6) thereunder.
                ---------------------------------------------------------------------------
                 \31\ 15 U.S.C. 78s(b)(3)(A).
                 \32\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
                requires a self-regulatory organization to give the Commission
                written notice of its intent to file the proposed rule change, along
                with a brief description and text of 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.
                ---------------------------------------------------------------------------
                 A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
                Act \33\ normally does not become
                [[Page 8331]]
                operative for 30 days after the date of its filing. However, Rule 19b-
                4(f)(6)(iii) \34\ 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 asked the Commission to waive the 30-
                day operative delay so that the proposal may become operative
                immediately upon filing. The Exchange has represented that adopting the
                DRT routing functionality and eliminating references to certain
                duplicative routing options will conform its routing strategies to its
                affiliated exchanges and will eliminate any potential confusion for its
                Members. The Commission believes that waiver of the 30-day operative
                delay is consistent with the protection of investors and the public
                interest and hereby waives the operative delay and designates the
                proposal as operative upon filing.\35\
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                 \33\ 17 CFR 240.19b-4(f)(6).
                 \34\ 17 CFR 240.19b-4(f)(6)(iii).
                 \35\ For purposes only of waiving the 30-day operative delay,
                the Commission also has considered the proposed rule's impact on
                efficiency, competition, and capital formation. See 15 U.S.C.
                78c(f).
                ---------------------------------------------------------------------------
                 At any time within 60 days of the filing of the proposed rule
                change, the Commission summarily may temporarily suspend such rule
                change if it appears to the Commission that such action is necessary or
                appropriate in the public interest, for the protection of investors, or
                otherwise in furtherance of the purposes of the Act. If the Commission
                takes such action, the Commission shall institute proceedings under
                Section 19(b)(2)(B) of the Act \36\ to determine whether the proposed
                rule change should be approved or disapproved.
                ---------------------------------------------------------------------------
                 \36\ 15 U.S.C. 78s(b)(2)(B).
                ---------------------------------------------------------------------------
                IV. Solicitation of Comments
                 Interested persons are invited to submit written data, views, and
                arguments concerning the foregoing, including whether the proposed rule
                change is consistent with the Act. Comments may be submitted by any of
                the following methods:
                Electronic Comments:
                 Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
                 Send an email to [email protected]. Please include
                File Number SR-CboeEDGX-2020-006 on the subject line.
                Paper Comments:
                 Send paper comments in triplicate to Secretary, Securities
                and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
                All submissions should refer to File Number SR-CboeEDGX-2020-006. This
                file number should be included on the subject line if email is used. To
                help the Commission process and review your comments more efficiently,
                please use only one method. The Commission will post all comments on
                the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
                Copies of the submission, all subsequent amendments, all written
                statements with respect to the proposed rule change that are filed with
                the Commission, and all written communications relating to the proposed
                rule change between the Commission and any person, other than those
                that may be withheld from the public in accordance with the provisions
                of 5 U.S.C. 552, will be available for website viewing and printing in
                the Commission's Public Reference Room, 100 F Street NE, Washington, DC
                20549, on official business days between the hours of 10:00 a.m. and
                3:00 p.m. Copies of the filing also will be available for inspection
                and copying at the principal office of the Exchange. All comments
                received will be posted without change. Persons submitting comments are
                cautioned that we do not redact or edit personal identifying
                information from comment submissions. You should submit only
                information that you wish to make available publicly. All submissions
                should refer to File Number SR-CboeEDGX-2020-006 and should be
                submitted on or before March 5, 2020.
                ---------------------------------------------------------------------------
                 \37\ 17 CFR 200.30-3(a)(12).
                 For the Commission, by the Division of Trading and Markets,
                pursuant to delegated authority.\37\
                J. Matthew DeLesDernier,
                Assistant Secretary.
                [FR Doc. 2020-02838 Filed 2-12-20; 8:45 am]
                 BILLING CODE 8011-01-P
                

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