Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Notices 66541 

41See supra note 19. 

42See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005). 

43NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. 

Cir. 2010) (quoting Securities Exchange Act Release 

No. 59039 (December 2, 2008), 73 FR 74770, 74782– 

83 (December 9, 2008) (SR–NYSE–2006–21)). 

44 15 U.S.C. 78s(b)(3)(A)(ii). 

45 17 CFR 240.19b–4(f)(2). 

46 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

at those other venues to be more 

favorable. 

As described above, the proposal is 

designed to enhance market quality on 

the Exchange and to encourage 

additional order flow and quoting 

activity on the Exchange and to promote 

market quality through pricing 

incentives that are comparable to, and 

competitive with, pricing programs in 

place at other exchanges with respect to 

executions of Added Displayed 

Volume.41 Accordingly, the Exchange 

believes the proposal would not be a 

burden on, but rather promote, 

intermarket competition by enabling the 

Exchange to better compete with other 

exchanges that offer similar incentives 

to market participants that enhance 

market quality and/or achieve certain 

volume criteria and thresholds. 

Additionally, the Commission has 

repeatedly expressed its preference for 

competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. Specifically, in Regulation 

NMS, the Commission highlighted the 

importance of market forces in 

determining prices and SRO revenues 

and, also, recognized that current 

regulation of the market system ‘‘has 

been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 42 The 

fact that this market is competitive has 

also long been recognized by the courts. 

In NetCoalition v. Securities and 

Exchange Commission, the DC circuit 

stated: ‘‘[n]o one disputes that 

competition for order flow is ‘fierce’ 

. . . As the SEC explained, ‘[i]n the U.S. 

national market system, buyers and 

sellers of securities, and the brokerdealers that act as their routing agents, 

have a wide range of choices of where 

to route orders for execution’; [and] ‘no 

exchange can afford to take its market 

share percentages for granted’ because 

‘no exchange possess a monopoly, 

regulatory or otherwise, in the execution 

of order flow from broker dealers’ 

. . .’’.43 Accordingly, the Exchange does 

not believe its proposed pricing changes 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act,44 and Rule 

19b-4(f)(2) 45 thereunder. 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 to determine 

whether the proposed rule should be 

approved or disapproved. 

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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

PEARL–2023–45 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–PEARL–2023–45. 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 (https://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 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–PEARL–2023–45 and should be 

submitted on or before October 18, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.46

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–20960 Filed 9–26–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98475; File No. SR– 

NASDAQ–2023–037] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

NOM Options 7, Section 2 

September 21, 2023. 

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 

September 13, 2023, The Nasdaq Stock 

Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I, II, and III, 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. 


ddrumheller on DSK120RN23PROD with NOTICES1
66542 Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Notices 

3On September 13, 2023, the Exchange withdrew 

SR–NASDAQ–2023–033 and replaced it with the 

instant rule change. 

4The term ‘‘Customer’’ or (‘‘C’’) applies to any 

transaction that is identified by a Participant for 

clearing in the Customer range at The Options 

Clearing Corporation (‘‘OCC’’) which is not for the 

account of broker or dealer or for the account of a 

‘‘Professional’’ (as that term is defined in Options 

1, Section 1(a)(47)). See Options 7, Section 1(a). 

5The term ‘‘Professional’’ or (‘‘P’’) means any 

person or entity that (i) is not a broker or dealer in 

securities, and (ii) places more than 390 orders in 

listed options per day on average during a calendar 

month for its own beneficial account(s) pursuant to 

Options 1, Section 1(a)(47). All Professional orders 

shall be appropriately marked by Participants. See 

Options 7, Section 1(a). 

6The term ‘‘NOM Market Maker’’ or (‘‘M’’) is a 

Participant that has registered as a Market Maker on 

NOM pursuant to Options 2, Section 1, and must 

also remain in good standing pursuant to Options 

2, Section 9. In order to receive NOM Market Maker 

pricing in all securities, the Participant must be 

registered as a NOM Market Maker in at least one 

security. See Options 7, Section 1(a). 7See note 1 in Options 7, Section 2. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend The 

Nasdaq Options Market LLC (‘‘NOM’’) 

Pricing Schedule at Options 7, Section 

2.3

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, at the principal 

office of the Exchange, 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 amend 

NOM’s Pricing Schedule at Options 7, 

Section 2, Nasdaq Options Market— 

Fees and Rebates. Today, NOM Options 

7, Section 2(1) provides for various fees 

and rebates applicable to NOM 

Participants. 

Today, Customer,4 Professional,5 and 

NOM Market Maker 6 Rebates to Add 

Liquidity in Penny Symbols are paid per 

the highest tier achieved among the 

available tiers. The tiers for Customer 

and Professional Rebates to Add 

Liquidity in Penny Symbols are below. 

Monthly Volume 

Tier 1: Participant adds Customer, 

Professional, Firm, Non-NOM Market 

Maker and/or Broker-Dealer liquidity in 

Penny Symbols and/or Non-Penny 

Symbols of up to 0.10% of total industry 

customer equity and ETF option average 

daily volume (‘‘ADV’’) contracts per day 

in a month. 

Tier 2: Participant adds Customer, 

Professional, Firm, Non-NOM Market 

Maker and/or Broker-Dealer liquidity in 

Penny Symbols and/or Non-Penny 

Symbols above 0.10% of total industry 

customer equity and ETF option ADV 

contracts per day in a month. 

Tier 3: Participant: (a) adds Customer, 

Professional, Firm, Non-NOM Market 

Maker and/or Broker-Dealer liquidity in 

Penny Symbols and/or Non-Penny 

Symbols above 0.20% of total industry 

customer equity and ETF option ADV 

contracts per day in a month; or (b) adds 

Customer and/or Professional liquidity 

in Penny Symbols and/or Non-Penny 

Symbols above 0.05% of total industry 

customer equity and ETF option ADV 

contracts per day in a month and 

qualifies for MARS. 

Tier 4: Participant adds Customer, 

Professional, Firm, Non-NOM Market 

Maker and/or Broker-Dealer liquidity in 

Penny Symbols and/or Non-Penny 

Symbols above 0.30% of total industry 

customer equity and ETF option ADV 

contracts per day in a month. 

Tier 5: Participant adds Customer, 

Professional, Firm, Non-NOM Market 

Maker and/or Broker-Dealer liquidity in 

Penny Symbols and/or Non-Penny 

Symbols above 0.40% of total industry 

customer equity and ETF option ADV 

contracts per day in a month. 

Tier 6##: Participant adds Customer, 

Professional, Firm, Non-NOM Market 

Maker and/or Broker-Dealer liquidity in 

Penny Symbols and/or Non-Penny 

Symbols above 0.70% or more of total 

industry customer equity and ETF 

option ADV contracts per day in a 

month, or Participant: (1) adds 

Customer and/or Professional liquidity 

in Penny Symbols and/or Non-Penny 

Symbols of 0.10% or more of total 

industry customer equity and ETF 

option ADV contracts per day in a 

month, and (2) has added liquidity in all 

securities through one or more of its 

Nasdaq Market Center MPIDs that 

represent 1.00% or more of 

Consolidated Volume in a month or 

qualifies for MARS (defined below). 

To determine the applicable 

percentage of total industry customer 

equity and ETF option average daily 

volume for a Customer and Professional 

Rebate to Add Liquidity in Penny 

Symbols, unless otherwise stated, the 

Participant’s Penny Symbol and NonPenny Symbol Customer and/or 

Professional volume that adds liquidity 

will be included.7

With respect to the NOM Market 

Maker Rebates to Add Liquidity in 

Penny Symbols, today, rebates are paid 

on the below tier qualifications. 

Monthly Volume 

Tier 1: Participant adds NOM Market 

Maker liquidity in Penny Symbols and/ 

or Non-Penny Symbols of up to 0.10% 

of total industry customer equity and 

ETF option average daily volume 

(‘‘ADV’’) contracts per day in a month. 

Tier 2: Participant adds NOM Market 

Maker liquidity in Penny Symbols and/ 

or Non-Penny Symbols above 0.10% of 

total industry customer equity and ETF 

option ADV contracts per day in a 

month. 

Tier 3: Participant: (a) adds NOM 

Market Maker liquidity in Penny 

Symbols and/or Non-Penny Symbols 

above 0.20% of total industry customer 

equity and ETF option ADV contracts 

per day in a month; or (b)(1) adds NOM 

Market Maker liquidity in Penny 

Symbols and/or Non-Penny Symbols 

above 0.07% of total industry customer 

equity and ETF option ADV contracts 

per day in a month, (2) transacts in all 

securities through one or more of its 

Nasdaq Market Center MPIDs that 

represent (i) 0.70% or more of 

Consolidated Volume (‘‘CV’’) which 

adds liquidity in the same month on 

The Nasdaq Stock Market or (ii) 70 

million shares or more ADV which adds 

liquidity in the same month on The 

Nasdaq Stock Market, (3) transacts in 

Tape B securities through one or more 

of its Nasdaq Market Center MPIDs that 

represent 0.10% or more of CV which 

adds liquidity in the same month on 

The Nasdaq Stock Market, and (4) 

executes greater than 0.01% of CV via 

Market-on- Close/Limit-on-Close 

(‘‘MOC/LOC’’) volume within The 

Nasdaq Stock Market Closing Cross in 

the same month. 

Tier 4: Participant adds NOM Market 

Maker liquidity in Penny Symbols and/ 

or Non-Penny Symbols of above 0.60% 

of total industry customer equity and 

ETF option ADV contracts per day in a 

month. 

Tier 5: Participant adds NOM Market 

Maker liquidity in Penny Symbols and/ 

or Non-Penny Symbols of above 0.40% 

of total industry customer equity and 

ETF option ADV contracts per day in a 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Notices 66543 

8The term ‘‘Broker-Dealer’’ or (‘‘B’’) applies to 

any transaction which is not subject to any of the 

other transaction fees applicable within a particular 

category. See Options 7, Section 1(a). 

9The term ‘‘Firm’’ or (‘‘F’’) applies to any 

transaction that is identified by a Participant for 

clearing in the Firm range at OCC. See Options 7, 

Section 1(a). 

10The term ‘‘Non-NOM Market Maker’’ or (‘‘O’’) 

is a registered market maker on another options 

exchange that is not a NOM Market Maker. A NonNOM Market Maker must append the proper NonNOM Market Maker designation to orders routed to 

NOM. See Options 7, Section 1(a). 

11The M–ELO order type, also known as the 

‘‘Midpoint Extended Life Order,’’ is a NonDisplayed Order priced at the midpoint between the 

National Best Bid and Offer (‘‘NBBO’’) and is 

eligible for execution only against other eligible M– 

ELOs and only after a minimum period of 10 

milliseconds (‘‘Holding Period’’) has passed after 

acceptance of the Order by the System. All market 

participants on The Nasdaq Stock Market LLC may 

utilize this order type. See Nasdaq Equities 4, Rule 

4702(b)(14). Of note, the Commission recently 

approved a rule proposal amending the Holding 

Period of the M–ELO order type so that it may 

adjust dynamically between .025 and 2.5 

milliseconds upon real-time assessments of market 

conditions. See Securities and Exchange Act 

Release No. 98321 (September 7, 2003), 88 FR 

62850 (September 13, 2023) (SR–NASDAQ–2022– 

079). This rule change has not yet been 

implemented. 

12The Exchange notes that 0.45% or more of 

Consolidated Volume (‘‘CV’’) is approximately $44 

million. 

month and transacts in all securities 

through one or more of its Nasdaq 

Market Center MPIDs that represent 

0.40% or more of Consolidated Volume 

(‘‘CV’’) which adds liquidity in the same 

month on The Nasdaq Stock Market. 

Tier 6: Participant: (a)(1) adds NOM 

Market Maker liquidity in Penny 

Symbols and/or Non-Penny Symbols 

above 0.95% of total industry customer 

equity and ETF option ADV contracts 

per day in a month, (2) executes Total 

Volume of 250,000 or more contracts 

per day in a month, of which 30,000 or 

more contracts per day in a month must 

be removing liquidity, and (3) adds 

Firm, Broker-Dealer and Non-NOM 

Market Maker liquidity in Non-Penny 

Symbols of 10,000 or more contracts per 

day in a month; or (b)(1) adds NOM 

Market Maker liquidity in Penny 

Symbols and/or Non-Penny Symbols 

above 1.50% of total industry customer 

equity and ETF option ADV contracts 

per day in a month, and (2) executes 

Total Volume of 250,000 or more 

contracts per day in a month, of which 

15,000 or more contracts per day in a 

month must be removing liquidity. 

Total Volume is defined as Customer, 

Professional, Firm, Broker-Dealer, NonNOM Market Maker and NOM Market 

Maker volume in Penny Symbols and/ 

or Non-Penny Symbols which either 

adds or removes liquidity on NOM. 

Finally, today, Broker-Dealers,8 Firms 9

and Non-NOM Market Makers 10 are 

paid a $0.10 per contract Rebate to Add 

Liquidity in Penny Symbols regardless 

of the tier. 

Proposal 

NOM Market Maker—Note 4 

At this time, the Exchange proposes to 

amend note 4 of Options 7, Section 2 

which currently applies to Participants 

who achieve the NOM Market Maker 

Tier 3 or Tier 4 Rebate to Add Liquidity 

in Penny Symbols. Note 4 of Options 7, 

Section 2 currently states, ‘‘Participants 

who achieve the NOM Market Maker 

Tier 3 or Tier 4 Rebate to Add Liquidity 

will receive $0.40 per contract to add 

liquidity in the following symbols: 

AAPL, SPY, QQQ, IWM, and VXX.’’ The 

Exchange proposes to amend this rebate 

in note 4 of Options 7, Section 2 and 

also offer a second additional rebate. 

First, the Exchange proposes to 

amend the existing rebate of $0.40 per 

contract in note 4 of Options 7, Section 

2, which is paid to Participants who 

achieve the NOM Market Maker Tier 3 

or Tier 4 Rebate to Add Liquidity in 

Penny Symbols to $0.39 per contract. 

Second, the Exchange proposes to 

remove the symbols ‘‘AAPL’’ and 

‘‘VXX’’ as eligible for the existing rebate. 

Third, the Exchange proposes to offer an 

additional rebate, in note 4 of Options 

7, Section 2, of $0.33 per contract to add 

liquidity in SPY, QQQ, and IWM to 

Participants who achieve the NOM 

Market Maker Tier 2 Rebate to Add 

Liquidity in Penny Symbols and execute 

1 million shares or more ADV in the 

same month utilizing the M–ELO order 

type 11 on The Nasdaq Stock Market, 

provided the Participant also transacts 

in all securities through one or more of 

its Nasdaq Market Center MPIDs that 

represent (i) 0.45% or more of 

Consolidated Volume (‘‘CV’’) which 

adds liquidity in the same month on 

The Nasdaq Stock Market or (ii) 45 

million shares or more ADV which adds 

liquidity in the same month on The 

Nasdaq Stock Market. 

Therefore, in order to qualify for the 

new $0.33 per contract rebate to add 

liquidity in SPY, QQQ, and IWM, in 

note 4 of Options 7, Section 2, a 

Participant must first qualify for the 

NOM Market Maker Tier 2 Rebate to 

Add Liquidity in Penny Symbols and 

execute 1 million shares or more ADV 

in the same month utilizing the M–ELO 

order type on The Nasdaq Stock Market. 

Further, a Participant must transact in 

all securities through one or more of its 

Nasdaq Market Center MPIDs that 

represent either (i) 0.45% or more of CV 

which adds liquidity in the same 

month 12 on The Nasdaq Stock Market; 

or (ii) 45 million shares or more ADV 

which adds liquidity in the same month 

on The Nasdaq Stock Market to receive 

a $0.33 per contract to add liquidity in 

SPY, QQQ, and IWM. 

The Exchange believes the 

amendment to the current rebate in note 

4 of Options 7, Section 2 will continue 

to incentivize Participants to add 

liquidity to NOM to qualify for the $0.39 

per contract rebate to add liquidity in 

SPY, QQQ, and IWM despite the lower 

rebate ($0.40 to $0.39 per contract) and 

removal of AAPL and VXX. 

Additionally, the Exchange believes that 

introducing a new $0.33 rebate for 

Participants who achieve the NOM 

Market Maker Tier 2 Rebate to Add 

Liquidity in Penny Symbols, in addition 

to other qualifications, will create an 

additional opportunity for Market 

Makers to increase their liquidity 

adding activity on the Exchange’s equity 

market. The Exchange believes that the 

new note 4 rebate qualifying criteria 

will incentivize participation in greater 

volume from cross asset activity, which 

would improve the overall quality of the 

Exchange’s marketplace to the benefit of 

all market participants, both on NOM 

and The Nasdaq Stock Market. 

NOM Market Maker—Tier 3 Qualifier 

The Exchange also proposes to amend 

the qualifications in the Tier 3 NOM 

Market Maker Rebate to Add Liquidity 

in Penny Symbol that currently state, 

Participant: (a) adds NOM Market Maker 

liquidity in Penny Symbols and/or NonPenny Symbols above 0.20% of total industry 

customer equity and ETF option ADV 

contracts per day in a month; or (b)(1) adds 

NOM Market Maker liquidity in Penny 

Symbols and/or Non-Penny Symbols above 

0.07% of total industry customer equity and 

ETF option ADV contracts per day in a 

month, (2) transacts in all securities through 

one or more of its Nasdaq Market Center 

MPIDs that represent (i) 0.70% or more of 

Consolidated Volume (‘‘CV’’) which adds 

liquidity in the same month on The Nasdaq 

Stock Market or (ii) 70 million shares or more 

ADV which adds liquidity in the same month 

on The Nasdaq Stock Market, (3) transacts in 

Tape B securities through one or more of its 

Nasdaq Market Center MPIDs that represent 

0.10% or more of CV which adds liquidity 

in the same month on The Nasdaq Stock 

Market, and (4) executes greater than 0.01% 

of CV via Market-on-Close/Limit-on-Close 

(‘‘MOC/LOC’’) volume within The Nasdaq 

Stock Market Closing Cross in the same 

month. 

The Exchange proposes to amend the 

Tier 3 NOM Market Maker Rebate to 

Add Liquidity in Penny Symbol 

qualifications in several ways. First, the 

Exchange proposes to amend the (b)(1) 

qualifier to require NOM Market Maker 

liquidity in Penny Symbols and/or NonPenny Symbols above 0.15% of total 

industry customer equity and ETF 


ddrumheller on DSK120RN23PROD with NOTICES1
66544 Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Notices 

13NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 

2010). 

14 Id. at 539 (quoting Securities Exchange Act 

Release No. 59039 (December 2, 2008), 73 FR 

74770, 74782–83 (December 9, 2008) (SR– 

NYSEArca-2006–21)). 

option ADV contracts per day in a 

month (a change from 0.07% to 0.15%). 

Second, the Exchange proposes to 

amend the (b)(2)(i) qualifier to require 

0.50% or more of CV which adds 

liquidity in the same month on The 

Nasdaq Stock Market (a change from 

0.70% to 0.50%). Third, the Exchange 

proposes to amend the (b)(2)(ii) qualifier 

to require 50 million shares or more 

ADV which adds liquidity in the same 

month on The Nasdaq Stock Market (a 

change from 70 million to 50 million 

shares). Fourth, the Exchange proposes 

to remove the current (b)(3) and (4) 

qualifiers and replace those qualifiers 

with a new (b)(3) qualifier that requires 

a Participant to execute 1.5 million 

shares or more ADV in the same month 

utilizing the M–ELO order type on The 

Nasdaq Stock Market. In order to qualify 

for the Tier 3 NOM Market Maker 

Rebate to Add Liquidity a Participant 

must meet either the Tier 3 (a) or (b) 

requirements. To the extent a 

Participant desires to qualify for the Tier 

3 (b) requirements, all 3 parts of the 

requirement must be met. The proposed 

new language of the Tier 3 NOM Market 

Maker Rebate to Add Liquidity would 

provide, 

Participant: (a) adds NOM Market Maker 

liquidity in Penny Symbols and/or NonPenny Symbols above 0.20% of total industry 

customer equity and ETF option ADV 

contracts per day in a month; or (b)(1) adds 

NOM Market Maker liquidity in Penny 

Symbols and/or Non-Penny Symbols above 

0.15% of total industry customer equity and 

ETF option ADV contracts per day in a 

month, (2) transacts in all securities through 

one or more of its Nasdaq Market Center 

MPIDs that represent (i) 0.50% or more of 

Consolidated Volume (‘‘CV’’) which adds 

liquidity in the same month on The Nasdaq 

Stock Market or (ii) 50 million shares or more 

ADV which adds liquidity in the same month 

on The Nasdaq Stock Market, and (3) 

executes 1.5 million shares or more ADV in 

the same month utilizing the M–ELO order 

type on The Nasdaq Stock Market. 

The Exchange believes that the 

proposed Tier 3 NOM Market Maker 

Rebate to Add Liquidity will continue to 

provide NOM Participants an 

opportunity to qualify for the NOM 

Market Maker Tier 3 Rebate to Add 

Liquidity in more than one way. The 

proposed new Tier 3 NOM Market 

Maker Rebate to Add Liquidity (b) 

qualifiers will incentivize greater 

options participation with the 

amendment to (b)(1) increasing the 

percentage of total industry customer 

equity and ETF option ADV contracts 

per day in a month from 0.07% to 

0.15%; decreasing the (b)(2)(i) 

percentage of CV required to add 

liquidity on The Nasdaq Stock Market 

from 0.70% to 0.50%; lowering the 

current share requirement for 

participation in The Nasdaq Stock 

Market as part of (b)(2)(ii) from 70 to 50 

million shares; and adding a new (b)(3) 

requirement to utilize M–ELO to 

execute 1.5 million shares or more ADV 

on The Nasdaq Stock Market. The 

amended qualifiers for (b) within Tier 3 

will incentivize participation in greater 

volume from cross asset activity, which 

would improve the overall quality of the 

Exchange’s marketplace to the benefit of 

all market participants, both on NOM 

and The Nasdaq Stock Market. 

2. Statutory Basis 

The proposed changes to its Pricing 

Schedule are reasonable in several 

respects. As a threshold matter, the 

Exchange is subject to significant 

competitive forces in the market for 

options transaction services that 

constrain its pricing determinations in 

that market. The fact that this market is 

competitive has long been recognized by 

the courts. In NetCoalition v. Securities 

and Exchange Commission 13

(‘‘NetCoalition’’), the D.C. Circuit stated, 

‘‘[n]o one disputes that competition for 

order flow is ‘fierce.’ . . . As the SEC 

explained, ‘[i]n the U.S. national market 

system, buyers and sellers of securities, 

and the broker-dealers that act as their 

order-routing agents, have a wide range 

of choices of where to route orders for 

execution’; [and] ‘no exchange can 

afford to take its market share 

percentages for granted’ because ‘no 

exchange possesses a monopoly, 

regulatory or otherwise, in the execution 

of order flow from broker 

dealers’. . . .’’ 14

Numerous indicia demonstrate the 

competitive nature of this market. For 

example, clear substitutes to the 

Exchange exist in the market for options 

transaction services. The Exchange is 

only one of sixteen options exchanges to 

which market participants may direct 

their order flow. Within this 

environment, market participants can 

freely and often do shift their order flow 

among the Exchange and competing 

venues in response to changes in their 

respective pricing schedules. Within the 

foregoing context, the proposal 

represents a reasonable attempt by the 

Exchange to attract additional order 

flow to the Exchange and increase its 

market share relative to its competitors. 

NOM Market Maker—Note 4 

Amending note 4 of Options 7, 

Section 2, which currently applies to 

Participants who achieve the NOM 

Market Maker Tier 3 or Tier 4 Rebate to 

Add Liquidity in Penny Symbols is 

reasonable in several ways. The 

Exchange believes the amendment to 

the current rebate in note 4 of Options 

7, Section 2 will continue to incentivize 

Participants to add liquidity to NOM to 

qualify for the $0.39 per contract rebate 

to add liquidity in SPY, QQQ, and IWM 

despite the lower rebate ($0.40 to $0.39 

per contract) and removal of AAPL and 

VXX. The Exchange notes that it 

proposes to limit the rebate to adding 

liquidity in SPY, QQQ, and IWM, and 

not AAPL and VXX, because options on 

these broad-based Exchange-Traded 

Funds collectively have large volumes. 

The amended $0.39 per contract rebate 

remains higher than the NOM Market 

Maker Tier 3 or Tier 4 Rebates to Add 

Liquidity of $0.30 and $0.32 per 

contract, respectively. Additionally, 

amending note 4 of Options 7, Section 

2 to introduce an additional rebate for 

Participants who achieve the NOM 

Market Maker Tier 2 Rebate to Add 

Liquidity in Penny Symbols is 

reasonable because it will create an 

additional opportunity for Market 

Makers to increase their liquidity 

adding activity on the Exchange’s equity 

market. The Exchange believes that the 

new note 4 rebate qualifying criteria 

will incentivize participation in greater 

volume from cross asset activity, which 

would improve the overall quality of the 

Exchange’s marketplace to the benefit of 

all market participants, both on NOM 

and The Nasdaq Stock Market. The 

proposed new Tier 2 NOM Market 

Maker Rebate to Add Liquidity in Penny 

Symbols of $0.33 per contract is higher 

than the Tier 2 NOM Market Maker 

Rebate to Add Liquidity of $0.25 per 

contract. Finally, the Exchange notes 

that all NOM Participants are required 

to become members of The Nasdaq 

Stock Market pursuant to General 3 

Membership and Access rules. 

Therefore, a NOM Participant is able to 

transact the requisite volume on NOM 

as an Options Participant and also 

utilize the M–ELO order type as a 

member of The Nasdaq Stock Market. 

All members of The Nasdaq Stock 

Market LLC may utilize the M–ELO 

order type. 

Amending note 4 of Options 7, 

Section 2, which currently applies to 

Participants who achieve the NOM 

Market Maker Tier 3 or Tier 4 Rebate to 

Add Liquidity in Penny Symbols is 

equitable and not unfairly 

discriminatory because the Exchange 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Notices 66545 

15See Options 2, Sections 4 and 5. 

16First, the Exchange proposes to amend the 

(b)(1) qualifier to require NOM Market Maker 

liquidity in Penny Symbols and/or Non-Penny 

Symbols above 0.15% of total industry customer 

equity and ETF option ADV contracts per day in a 

month (a change from 0.07% to 0.15%). Second, the 

Exchange proposes to amend the (b)(2)(i) qualifier 

to require 0.50% or more of CV which adds 

liquidity in the same month on The Nasdaq Stock 

Market (a change from 0.70% to 0.50%). Third, the 

Exchange proposes to amend the (b)(2)(ii) qualifier 

to require 50 million shares or more ADV which 

adds liquidity in the same month on The Nasdaq 

Stock Market (a change from 70 million to 50 

million shares). Fourth, the Exchange proposes to 

remove the current (b)(3) and (4) qualifiers and 

replace those qualifiers with a new (b)(3) qualifier 

that requires a Participant to execute 1.5 million 

shares or more ADV in the same month utilizing the 

M–ELO order type on The Nasdaq Stock Market. 

17 In order to qualify for the Tier 3 NOM Market 

Maker Rebate to Add Liquidity a Participant must 

meet the (a) or (b) requirements within the tier. 

18See supra note 14. 

19See Options 2, Sections 4 and 5. 

will pay the Tier 3 and 4 NOM Market 

Maker rebates uniformly to any 

qualifying Participants. Additionally, 

amending note 4 of Options 7, Section 

2 to introduce an additional rebate for 

Participants who achieve the NOM 

Market Maker Tier 2 Rebate to Add 

Liquidity in Penny Symbols is equitable 

and not unfairly discriminatory because 

the Exchange will pay the new Tier 2 

NOM Market Maker rebate uniformly to 

any qualifying Participants. The 

Exchange notes that all NOM 

Participants are required to become 

members of The Nasdaq Stock Market 

pursuant to General 3 Membership and 

Access rules. Therefore, a NOM 

Participant is able to transact the 

requisite volume on NOM as an Options 

Participant and also utilize the M–ELO 

order type as a member of The Nasdaq 

Stock Market. All members of The 

Nasdaq Stock Market LLC may utilize 

the M–ELO order type. Additionally, 

Market Makers add value through 

continuous quoting and the 

commitment of capital.15 Because 

Market Makers have these obligations to 

the market and regulatory requirements 

that normally do not apply to other 

market participants, the Exchange 

believes that offering these rebates to 

Market Makers is equitable and not 

unfairly discriminatory in light of their 

obligations. Finally, encouraging Market 

Makers to add greater liquidity benefits 

all market participants, both on NOM 

and The Nasdaq Stock Market, in the 

quality of order interaction. 

NOM Market Maker—Tier 3 Qualifier 

Amending the Tier 3 NOM Market 

Maker Rebate to Add Liquidity 

qualifications in several ways 16 is 

reasonable because Participants will 

continue to have more than one way to 

qualify for the Tier 3 NOM Market 

Maker Rebate to Add Liquidity in Penny 

Symbols.17 The proposed new Tier 3 

NOM Market Maker Rebate to Add 

Liquidity in Penny Symbols part (b) 

qualifier will incentivize greater options 

participation with the amendment to 

(b)(1) as it increases the percentage of 

total industry customer equity and ETF 

option ADV contracts per day in a 

month from 0.07% to 0.15%. Further 

part (b)(2)(i) decreases the percentage of 

CV required to add liquidity on The 

Nasdaq Stock Market from 0.70% to 

0.50%, lowers the current share 

requirement for participation in The 

Nasdaq Stock Market as part of (b)(2)(ii) 

from 70 to 50 million shares, and adds 

a new (b)(3) requirement to utilize M– 

ELO to execute 1.5 million shares or 

more ADV on The Nasdaq Stock Market. 

The amended qualifiers for (b) within 

Tier 3 will incentivize participation in 

greater volume from cross asset activity, 

which would improve the overall 

quality of the Exchange’s marketplace to 

the benefit of all market participants, 

both on NOM and The Nasdaq Stock 

Market. All NOM Participants are 

required to become members of The 

Nasdaq Stock Market pursuant to 

General 3 Membership and Access 

rules. Therefore, a NOM Participant is 

able to transact the requisite volume on 

NOM as an Options Participant and also 

utilize the M–ELO order type as a 

member of The Nasdaq Stock Market. 

Amending the Tier 3 NOM Market 

Maker Rebate to Add Liquidity in Penny 

Symbols qualifications in several 

ways 18 is equitable and not unfairly 

discriminatory because the Exchange 

will pay the Tier 3 NOM Market Maker 

Rebate to Add Liquidity uniformly to all 

Participants that qualify for this tier. All 

NOM Participants are required to 

become members of The Nasdaq Stock 

Market pursuant to General 3 

Membership and Access rules. 

Therefore, a NOM Participant is able to 

transact the requisite volume on NOM 

as an Options Participant and also 

utilize the M–ELO order type as a 

member of The Nasdaq Stock Market. 

Additionally, Market Makers add value 

through continuous quoting and the 

commitment of capital.19 Because 

Market Makers have these obligations to 

the market and regulatory requirements 

that normally do not apply to other 

market participants, the Exchange 

believes that offering the rebate to only 

Market Makers is equitable and not 

unfairly discriminatory in light of their 

obligations. Finally, encouraging Market 

Makers to add greater liquidity on both 

NOM and The Nasdaq Stock Market 

benefits all market participants, both on 

NOM and The Nasdaq Stock Market, in 

the quality of order interaction. 

The Exchange believes that it is 

reasonable, equitable, and not unfairly 

discriminatory to pay a rebate to add 

liquidity in SPY, QQQ, and IWM, as 

compared to other options, because 

pricing by symbol is a common practice 

on many U.S. options exchanges as a 

means to incentivize order flow to be 

sent to an exchange for execution in the 

most actively traded options classes, in 

this case actively traded Penny 

Symbols. SPY, QQQ, and IWM are 

among the most actively traded options 

in the U.S. The Exchange believes that 

this pricing will incentivize members to 

transact options in SPY, QQQ, and IWM 

on NOM in order to obtain higher NOM 

Market Maker rebates in Penny 

Symbols. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Intermarket Competition 

The Exchange operates in a highly 

competitive market in which market 

participants can readily favor competing 

venues if they deem fee levels at a 

particular venue to be excessive, or 

rebate opportunities available at other 

venues to be more favorable. In such an 

environment, the Exchange must 

continually adjust its pricing to remain 

competitive with other exchanges. 

Because competitors are free to modify 

their pricing in response, and because 

market participants may readily adjust 

their order routing practices, the 

Exchange believes that the degree to 

which pricing changes in this market 

may impose any burden on competition 

is extremely limited because other 

options exchanges offer similar pricing. 

Moreover, as noted above, price 

competition between exchanges is 

fierce, with liquidity and market share 

moving freely between exchanges in 

reaction to fee and rebate changes. In 

sum, if the changes proposed herein are 

unattractive to market participants, it is 

likely that the Exchange will lose 

market share as a result. Accordingly, 

the Exchange does not believe that the 

proposed changes will impair the ability 

of members or competing order 

execution venues to maintain their 

competitive standing in the financial 

markets. 


ddrumheller on DSK120RN23PROD with NOTICES1
66546 Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Notices 

20See Options 2, Sections 4 and 5. 

21See supra note 14. 

22See Options 2, Sections 4 and 5. 

23 15 U.S.C. 78s(b)(3)(A)(ii). 24 17 CFR 200.30–3(a)(12). 

Intramarket Competition 

The proposed rule change does not 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

Amending note 4 of Options 7, 

Section 2, which currently applies to 

Participants who achieve the NOM 

Market Maker Tier 3 or Tier 4 Rebate to 

Add Liquidity in Penny Symbols does 

not impose an undue burden on 

competition because the Exchange will 

pay the Tier 3 and 4 NOM Market Maker 

rebates uniformly to any qualifying 

Participants. Additionally, amending 

note 4 of Options 7, Section 2 to 

introduce an additional rebate for 

Participants who achieve the NOM 

Market Maker Tier 2 Rebate to Add 

Liquidity in Penny Symbols does not 

impose an undue burden on 

competition because the Exchange will 

pay the new Tier 2 NOM Market Maker 

rebate uniformly to any qualifying 

Participants. The Exchange notes that 

all NOM Participants are required to 

become members of The Nasdaq Stock 

Market pursuant to General 3 

Membership and Access rules. 

Therefore, a NOM Participant is able to 

transact the requisite volume on NOM 

as an Options Participant and also 

utilize the M–ELO order type as a 

member of The Nasdaq Stock Market. 

All members of The Nasdaq Stock 

Market LLC may utilize the M–ELO 

order type. Additionally, Market Makers 

add value through continuous quoting 

and the commitment of capital.20

Because Market Makers have these 

obligations to the market and regulatory 

requirements that normally do not apply 

to other market participants, the 

Exchange believes that offering these 

rebates to Market Makers does not 

impose an undue burden on 

competition in light of their obligations. 

Finally, encouraging Market Makers to 

add greater liquidity benefits all market 

participants, both on NOM and The 

Nasdaq Stock Market, in the quality of 

order interaction. 

Amending the Tier 3 NOM Market 

Maker Rebate to Add Liquidity in Penny 

Symbols qualifications in several 

ways 21 does not impose an undue 

burden on competition because the 

Exchange will pay the Tier 3 NOM 

Market Maker Rebate to Add Liquidity 

in Penny Symbols uniformly to all 

Participants that qualify for this tier. All 

NOM Participants are required to 

become members of The Nasdaq Stock 

Market pursuant to General 3 

Membership and Access rules. 

Therefore, a NOM Participant is able to 

transact the requisite volume on NOM 

as an Options Participant and also 

utilize the M–ELO order type as a 

member of The Nasdaq Stock Market. 

Additionally, Market Makers add value 

through continuous quoting and the 

commitment of capital.22 Because 

Market Makers have these obligations to 

the market and regulatory requirements 

that normally do not apply to other 

market participants, the Exchange 

believes that offering the rebate to only 

Market Makers does not impose an 

undue burden on competition in light of 

their obligations. Finally, encouraging 

Market Makers to add greater liquidity 

on both NOM and The Nasdaq Stock 

Market benefits all market participants, 

both on NOM and The Nasdaq Stock 

Market, in the quality of order 

interaction. 

The Exchange believes that paying a 

rebate to add liquidity in SPY, QQQ, 

and IWM, as compared to other options, 

does not impose an undue burden on 

competition because pricing by symbol 

is a common practice on many U.S. 

options exchanges as a means to 

incentivize order flow to be sent to an 

exchange for execution in the most 

actively traded options classes, in this 

case actively traded Penny Symbols. 

SPY, QQQ, and IWM are among the 

most actively traded options in the U.S. 

The Exchange believes that this pricing 

will incentivize members to transact 

options in SPY, QQQ, and IWM on 

NOM in order to obtain higher NOM 

Market Maker rebates in Penny 

Symbols. 

C. Self-Regulatory Organization’s 

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 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.23

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: (i) necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number 

SR–NASDAQ–2023–037 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–NASDAQ–2023–037. 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 (https://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 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–NASDAQ–2023–037 and should be 

submitted on or before October 18, 

2023. 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Notices 66547 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–20962 Filed 9–26–23; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice: 12195] 

30-Day Notice of Proposed Information 

Collection: Welcome Corps 

Application 

ACTION: Notice of request for public 

comment and submission to OMB of 

proposed collection of information. 

SUMMARY: The Department of State has 

submitted the information collection 

described below to the Office of 

Management and Budget (OMB) for 

approval. In accordance with the 

Paperwork Reduction Act of 1995, we 

are requesting comments on this 

collection from all interested 

individuals and organizations. The 

purpose of this Notice is to allow 30 

days for public comment. 

DATES: Submit comments up to October 

27, 2023. 

ADDRESSES: Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice to www.reginfo.gov/public/do/ 

PRAMain. Find this information 

collection by selecting ‘‘Currently under 

30-day Review—Open for Public 

Comments’’ or by using the search 

function. 

FOR FURTHER INFORMATION CONTACT: 

Direct requests for additional 

information regarding the collection 

listed in this notice, including requests 

for copies of the proposed collection 

instrument and supporting documents 

to Cassie Le, who may be reached on 

202–805–9291 or at LeCR@state.gov. 

SUPPLEMENTARY INFORMATION: 

• Title of Information Collection: 

Welcome Corps Application. 

• OMB Control Number: 1405–0256. 

• Type of Request: Extension of a 

currently approved collection. 

• Originating Office: PRM/A. 

• Form Number: No form. 

• Respondents: Respondents: Private 

Sponsor Groups (PSGs), groups of at 

least five or more individual American 

citizens or permanent residents who 

will be able to apply to sponsor the 

resettlement of refugees, and Private 

Sponsor Organizations (PSOs), 

established and/or incorporated 

organizations who will be able to apply 

to mobilize, organize, oversee, and/or 

offer support to Private Sponsor Groups. 

• Estimated Number of Respondents: 

2,020. 

• Estimated Number of Responses: 

2,020. 

• Average Time per Response: 5.5 

hours. 

• Total Estimated Burden Time: 8,908 

hours total. 

• Frequency: Once per respondent. 

• Obligation to Respond: Voluntary. 

We are soliciting public comments to 

permit the Department to: 

• Evaluate whether the proposed 

information collection is necessary for 

the proper functions of the Department. 

• Evaluate the accuracy of our 

estimate of the time and cost burden for 

this proposed collection, including the 

validity of the methodology and 

assumptions used. 

• Enhance the quality, utility, and 

clarity of the information to be 

collected. 

• Minimize the reporting burden on 

those who are to respond, including the 

use of automated collection techniques 

or other forms of information 

technology. 

Please note that comments submitted 

in response to this Notice are a public 

record. Before including any detailed 

personal information, you should be 

aware that your comments as submitted, 

including your personal information, 

will be available for public review. 

Abstract of Proposed Collection 

In Executive Order 14013 on 

‘‘Rebuilding and Enhancing Programs to 

Resettle Refugees and Planning for the 

Impact of Climate Change on Migration’’ 

issued in February 2021, President 

Biden directed the Department of State 

and Department of Health and Human 

Services to ‘‘capitalize on . . . private 

sponsorship of refugees’’ as part of 

efforts to ‘‘meet the challenges of 

restoring and expanding the [U.S. 

Refugee Admissions Program].’’ To 

fulfill this directive, the Department of 

State is rolling out a program for private 

sponsorship of refugees approved for 

admission to the United States through 

the U.S. Refugee Admissions Program 

(USRAP), named ‘‘the Welcome Corps.’’ 

Through the Welcome Corps 

application process, private sponsors 

accept primary responsibility to 

welcome arriving refugees and to 

provide core services/assistance to 

support their initial resettlement 

equivalent to what is provided by 

nonprofit resettlement agency partners 

through the U.S. Government-funded 

Reception and Placement (R&P) 

program. When private sponsors apply 

through the program, sponsors have the 

option to be matched with a refugee 

case already being processed through 

the USRAP or to refer specific 

individuals to access the USRAP 

through the P–4 Privately Sponsored 

Refugees category. The P–4 category, 

along with the other categories of cases 

that have access to the USRAP, is 

outlined in the annual Proposed 

Refugee Admissions—Report to 

Congress, which is submitted on behalf 

of the President in fulfillment of the 

requirements of section 207(d) of the 

Immigration and Nationality Act (8 

U.S.C. 1157) and authorized by the 

annual Presidential Determination for 

Refugee Admissions. 

Private sponsor entities include 

Private Sponsor Groups (groups of at 

least five or more individual American 

citizens or permanent residents who can 

apply to sponsor the resettlement of 

refugees) and Private Sponsor 

Organizations (established and/or 

incorporated organizations who can 

apply to mobilize, organize, oversee, 

and/or offer support to Private Sponsor 

Groups). 

As part of the Welcome Corps 

application process for private sponsors, 

biographic information is collected from 

Private Sponsor Groups (PSGs) and 

Private Sponsor Organizations (PSOs) to 

facilitate the placement of approved 

refugee applicants with private sponsors 

and to plan for refugee applicants to 

travel to the appropriate location of 

private sponsors within the United 

States. In instances where private 

sponsors are seeking to refer specific 

individuals to access the USRAP 

through the P–4 category, additional 

information is collected on refugee 

applicants, including biographic 

information, to assess whether refugee 

applicants meet the eligibility criteria to 

access the USRAP through the P–4 

category. The information collected on 

refugee applicants will also assist 

Department of Homeland Security’s U.S. 

Citizenship and Immigration Services 

(USCIS) officials in conducting 

adjudications of applicants’ refugee 

status. 

Methodology 

The Department of State’s Bureau of 

Population, Refugees, and Migration 

(PRM) has entered into a cooperative 

agreement with the Community 

Sponsorship Hub (CSH), which is 

managing a consortium of nongovernmental organizations (NGOs) to 

establish and oversee an online 

application process to intake 

applications from PSGs and PSOs and 

screen their applications for approval 

for participation in the Welcome Corps. 


ddrumheller on DSK120RN23PROD with NOTICES1