Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rules 13.4(a) and 11.11(g)(8) and (13)

<NOTICE> SECURITIES AND EXCHANGE COMMISSION <DEPDOC>[Release No. 34-103121; File No. SR-CboeEDGX-2025-042]</DEPDOC> <SUBJECT>Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rules 13.4(a) and 11.11(g)(8) and (13)</SUBJECT> <DATE>May 23, 2025.</DATE> Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”), <SU>1</SU> <FTREF/> and Rule 19b-4 thereunder, <SU>2</SU> <FTREF/> notice is hereby given that on May 15, 2025, Cboe EDGX Exchange, Inc. (the “Exchange” or “EDGX”) 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 Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. <FTNT> <SU>1</SU>  15 U.S.C. 78s(b)(1). </FTNT> <FTNT> <SU>2</SU>  17 CFR 240.19b-4. </FTNT> <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD> Cboe EDGX Exchange, Inc. (the “Exchange” or “EDGX”) proposes to amend Rule 13.4(a) regarding the public disclosure of the sources of data that the Exchange utilizes when performing: (i) order handling; (ii) order routing; (iii) order execution; and (iv) related compliance processes to reflect the name change of NYSE Chicago, Inc. to NYSE Texas, Inc. The Exchange also proposes to amend Rule 11.11(g)(8) and Rule 11.11(g)(13) to remove the list of primary listing markets shown in the rule text. 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 ( <E T="03">http://markets.cboe.com/us/options/regulation/rule_filings/edgx/</E> ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room. <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD> 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. <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD> <HD SOURCE="HD3">1. Purpose</HD> The Exchange proposes to update Rule 13.4(a) regarding the public disclosure of the sources of data that the Exchange utilizes when performing: (i) order handling; (ii) order routing; (iii) order execution; and (iv) related compliance processes to reflect the recent name change of NYSE Chicago, Inc. (“NYSE Chicago”) to NYSE Texas, Inc. (“NYSE Texas”). The Exchange also proposes to amend Rule 11.11(g)(8) and Rule 11.11(g)(13) to remove the list of primary listing markets. On February 28, 2025, NYSE Chicago filed with the Commission a proposal to convert from a corporation organized under the laws of the state of Delaware to one organized under the laws of the state of Texas and changed its name from NYSE Chicago, Inc. to NYSE Texas, Inc. <SU>3</SU> <FTREF/> The Exchange accordingly proposes a conforming change to its rules to replace the name of NYSE Chicago, Inc. with NYSE Texas, Inc. Specifically, the Exchange proposes to replace one reference to “Chicago” in Rule 13.4(a) with “Texas.” The proposed changes are conforming and non-substantive in nature. <FTNT> <SU>3</SU>   <E T="03">See</E> Securities Exchange Act Release No. 102507 (February 28, 2025), 90 FR 11445 (March 6, 2025) (SR-NYSECHX-2025-01) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Repeal the Exchange's Certification of Incorporation; Adopt the Certificate of Formation of NYSE Texas, Inc.; Amend the Exchange's By-Laws, Rules, and Certain Fee Schedules; and Amend the Certification of Incorporation and By-Laws of the Exchange's Holding Company To Reflect the Conversion of the Exchange to a Texas Corporation and the Renaming of NYSE Chicago Holdings, Inc.). </FTNT> In addition to its proposal to become a Texas corporation and change its name to NYSE Texas, NYSE Chicago filed and received approval to amend its rules to permit the qualification, listing and trading of certain exchange traded products. <SU>4</SU> <FTREF/> The Exchange currently lists names of venues that are also primary listing markets in Rule 11.11(g)(8) and Rule 11.11(g)(13), <SU>5</SU> <FTREF/> which provide information about the ROOC routing strategy and associated port attribute offered by the Exchange, respectively. Pursuant to Rule 11.11(g)(8), the Exchange offers the ROOC routing strategy, which allows orders that the entering firm wishes to designate for participation in the opening, re-opening (following a halt, suspension, or pause), or closing process of a primary listing market (Cboe BZX, NYSE, Nasdaq, NYSE American, or NYSE Arca) 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, <SU>6</SU> <FTREF/> executed, or routed to destinations on the System  <SU>7</SU> <FTREF/> routing table. Rule 11.11(g)(13) provides that a User  <SU>8</SU> <FTREF/> may designate their order for participation in the re-opening (following a halt, suspension, or pause) of a primary listing market (Cboe BZX, NYSE, Nasdaq, NYSE MKT, or NYSE Arca) if received before the re-opening time of such market. If shares remain unexecuted after attempting to execute in the re-opening process, they are either posted to the EDGX Book, executed, or routed to destinations on the System routing table. Rule 11.11(g)(13) supplements Rule 11.11(g)(8) by describing the port attribute that is associated with the ROOC routing option described in Rule 11.11(g)(8). <FTNT> <SU>4</SU>   <E T="03">See</E> Securities Exchange Act Release No. 102957 (April 29, 2025), 90 FR 19054 (May 5, 2025) (SR-NYSECHX-2025-04) (“NYSE Texas Listing Venue Filing”). </FTNT> <FTNT> <SU>5</SU>  Rule 11.11(g)(13) does not describe an individual routing strategy, but rather supplements Rule 11.11(g)(8) by detailing how a firm may designate its orders using port settings. By way of background, a physical port is utilized by a Member or non-Member to connect to the Exchange at the data centers where the Exchange's servers are located. </FTNT> <FTNT> <SU>6</SU>   <E T="03">See</E> Rule 1.5(d). The term EDGX Book shall mean the System's electronic file of orders. </FTNT> <FTNT> <SU>7</SU>   <E T="03">See</E> Rule 1.5(cc). The term System shall mean the 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. </FTNT> <FTNT> <SU>8</SU>   <E T="03">See</E> Rule 1.5(ee). The term User shall mean any Member or Sponsored Participant who is authorized to obtain access to the System pursuant to Rule 11.3. </FTNT> The Exchange now proposes to remove the list of primary listing markets that is currently listed in Rule 11.11(g)(8) and Rule 11.11(g)(13). While the Exchange notes that having a list of primary listing markets provides additional specificity to market participants, the Exchange also notes that confusion may occur if this list is not maintained in a timely fashion and believes that market participants will not be harmed by the removal of the list of primary listing markets as it does not affect the functionality of the ROOC routing strategy. Notably, there are many places throughout the Exchange's rulebook where the term “primary listing market” is used without including the list of primary listing markets that is shown under Rule 11.11(g)(8) and Rule 11.11(g)(13). <SU>9</SU> <FTREF/> Similarly, the term “primary listing market” is used throughout the rulebook of NYSE Arca, Inc. (“NYSE Arca”) and The Nasdaq Stock Market LLC (“Nasdaq”) without reference to a list of exchanges that currently serve as primary listing markets. <SU>10</SU> <FTREF/> Given that the term “primary listing market” is commonly used throughout the industry and its meaning is well understood by market participants, the Exchange believes that Users are not harmed by the removal of the list of primary listing markets from Rule 11.11(g)(8) and Rule 11.11(g)(13) and that sufficient clarity exists within the proposed rule text for Users to understand the routing behavior of the ROOC routing strategy and the functionality offered by the port setting. <FTNT> <SU>9</SU>   <E T="03">See, e.g.,</E> Rule 11.8(d)(1)(B) (Obligations of Market Makers—Quotation Requirements and Obligations); Rule 11.17(c)(1)(B) (Clearly Erroneous Executions—Clearly erroneous review); Rule 11.18(c) (Trading Halts Due to Extraordinary Market Volatility); Rule 11.22(j) (Data Products—Cboe Aggregated Market “Cboe One” Feed); Rule 11.28 (Cboe Market Close, a closing Match Process for Non-EDGX-Listed Securities). </FTNT> <FTNT> <SU>10</SU>   <E T="03">See, e.g.,</E> NYSE Arca Rule 7.31-E(f)(1) (Primary Only Order); NYSE Arca Rule 7.34-E(c)(1)(D) (Trading Sessions—Orders Permitted in Each Session); NYSE Arca Rule 7.37-E(a)(5) (Order Execution and Routing). <E T="03">See also,</E> Nasdaq Equity 2, Section 5 (Market Maker Obligations); Nasdaq Equity 4, Rule 4120 (Limit Up-Limit Down Plan and Trading Halts); Nasdaq Equity 4, Rule 4758(a)(1)(x) (Order Routing). </FTNT> <HD SOURCE="HD3">2. Statutory Basis</HD> The Exchange believes the proposed rule chan ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 20k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━