3632 Federal Register / Vol. 87, No. 15 / Monday, January 24, 2022 / Notices 

16See Securities Exchange Act Release No. 93818 

(December 17, 2021), 86 FR 73009 (December 23, 

2021) (SR–NYSEArca–2021–91). 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

19 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

10 seconds of trading followed by a 

narrow market at any point in the 

subsequent 10-second period, regardless 

of the types of market participants 

involved in such transactions. The 

proposed change to subsection (c)(4)(B) 

would harmonize the treatment of 

Obvious Error transactions involving 

Customers and non-Customers, no 

matter what type of market participants 

those parties may be. 

For these reasons, the Exchange 

believes that the proposal is consistent 

with the Act. 

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 

proposed rule change is identical to a 

NYSE Arca proposed rule change 

recently approved by the Commission.16

The Exchange anticipates that the other 

options exchanges will adopt 

substantively similar proposals, such 

that there would be no burden on 

intermarket competition from the 

Exchange’s proposal. Accordingly, the 

proposed change is not meant to affect 

competition among the options 

exchanges. For these reasons, the 

Exchange believes that the proposed 

rule change reflects this competitive 

environment and does not impose any 

undue burden on intermarket 

competition. 

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 

Because the foregoing proposed rule 

change does not: 

A. Significantly affect the protection 

of investors or the public interest; 

B. impose any significant burden on 

competition; and 

C. 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 17 and Rule 19b–4(f)(6) 18

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 will institute proceedings 

to determine whether the proposed rule 

change 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CboeEDGX–2022–003 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Vanessa Countryman, Secretary, 

Securities and Exchange Commission, 

100 F Street NE, Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–CboeEDGX–2022–003. 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–2022–003 and 

should be submitted on or before 

February 14, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01223 Filed 1–21–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–93986; File No. SR–Phlx– 

2022–01] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Phlx’s Pricing 

Schedule at Options 7, Section 3 

January 18, 2022. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on January 

3, 2022, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Phlx’s Pricing Schedule at Options 7, 

Section 3, ‘‘Rebates and Fees for Adding 

and Removing Liquidity in SPY.’’ The 

Exchange also proposes to remove 

obsolete rule text within Options 7, 

Section 9, ‘‘Other Member Fees.’’ 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 15 / Monday, January 24, 2022 / Notices 3633 

4The term ‘‘Customer’’ applies to any transaction 

that is identified by a member or member 

organization for clearing in the Customer range at 

The Options Clearing Corporation (‘‘OCC’’) which 

is not for the account of a broker or dealer or for 

the account of a ‘‘Professional’’ (as that term is 

defined in Options 1, Section 1(b)(45)). See Options 

7, Section 1(c). 

5The term ‘‘Lead Market Maker’’ applies to 

transactions for the account of a Lead Market Maker 

(as defined in Options 2, Section 12(a)). A Lead 

Market Maker is an Exchange member who is 

registered as an options Lead Market Maker 

pursuant to Rule Options 2, Section 12(a)[sic]. An 

options Lead Market Maker includes a Remote Lead 

Market Maker which is defined as an options Lead 

Market Maker in one or more classes that does not 

have a physical presence on an Exchange floor and 

is approved by the Exchange pursuant to Options 

2, Section 11. 

6The term ‘‘Market Maker’’ is defined in Options 

1, Section 1(b)(28) as a member of the Exchange 

who is registered as an options Market Maker 

pursuant to Options 2, Section 12(a). A Market 

Maker includes SQTs and RSQTs as well as on and 

Floor Market Makers. 

7The term ‘‘Firm’’ applies to any transaction that 

is identified by a member or member organization 

for clearing in the Firm range at OCC. 

8The term ‘‘Broker-Dealer’’ applies to any 

transaction which is not subject to any of the other 

transaction fees applicable within a particular 

category. 

9The term ‘‘Professional’’ applies to transactions 

for the accounts of Professionals, as defined in 

Exchange Rule 1000(b)(43) 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). 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(4) and (5). 

12NetCoalition 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–NYSEArca–2006–21)). 

13Securities Exchange Act Release No. 51808 

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

(‘‘Regulation NMS Adopting Release’’). 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/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 

Phlx proposes to amend its pricing at 

Options 7, Section 3, ‘‘Rebates and Fees 

for Adding and Removing Liquidity in 

SPY.’’ Specifically, Phlx proposes to 

amend its Simple Order Customer 4 Fee 

for Removing Liquidity in options 

overlying the SPDR® S&P 500 ETF Trust 

(‘‘SPY’’). The Exchange also proposes to 

remove obsolete rule text within 

Options 7, Section 9, ‘‘Other Member 

Fees.’’ Each change will be described 

below. 

Options 7, Section 3 

Today, the Exchange assesses a $0.38 

per contract Customer Simple Order Fee 

for Removing Liquidity in SPY. The 

Exchange assesses a Lead Market 

Maker,5 Market Maker,6 Firm,7 BrokerDealer 8 and Professional 9 Simple Order 

Fee for Removing Liquidity in SPY of 

$0.48 per contract. The Exchange 

proposes to increase the Customer 

Simple Order Fee for Removing 

Liquidity in SPY from $0.38 to $0.41 per 

contract. Notwithstanding the increase, 

the Customer Simple Order Fee for 

Removing Liquidity in SPY remains the 

lowest fee for removing liquidity in 

SPY. The Exchange believes that the 

Customer Simple Order Fee for 

Removing Liquidity in SPY will 

continue to attract order flow to the 

Exchange despite the increase. 

Options 7, Section 9 

The Exchange proposes to remove 

obsolete rule text within Options 7, 

Section 9.B, Port Fees. Options 7, 

Section 9.B refers to a technology 

infrastructure migration that occurred in 

2019. The rule text related to the 

migration is now obsolete. At this time, 

the Exchange proposes to remove the 

rule text which describes the migration 

within Options 7, Section 9.B because it 

is outdated. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,10 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,11 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The Exchange’s 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 securities 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, 

the D.C. Circuit stated as follows: ‘‘[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’. . . .’’ 12

The Commission and the courts have 

repeatedly expressed their preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In Regulation NMS, while 

adopting a series of steps to improve the 

current market model, 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.’’ 13

Numerous indicia demonstrate the 

competitive nature of this market. For 

example, clear substitutes to the 

Exchange exist in the market for options 

security 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. As such, 

the proposal represents a reasonable 

attempt by the Exchange to increase its 

liquidity and market share relative to its 

competitors. 


jspears on DSK121TN23PROD with NOTICES1
3634 Federal Register / Vol. 87, No. 15 / Monday, January 24, 2022 / Notices 

14 15 U.S.C. 78s(b)(3)(A)(ii). 

Options 7, Section 3 

The Exchange’s proposal to increase 

the Customer Simple Order Fee for 

Removing Liquidity in SPY from $0.38 

to $0.41 per contract is reasonable. 

Notwithstanding the increase, the 

Customer Simple Order Fee for 

Removing Liquidity in SPY remains the 

lowest fee for removing liquidity in 

SPY. The Exchange believes that the 

Customer Simple Order Fee for 

Removing Liquidity in SPY will 

continue to attract order flow to the 

Exchange despite the increase. 

The Exchange’s proposal to increase 

the Customer Simple Order Fee for 

Removing Liquidity in SPY from $0.38 

to $0.41 per contract is equitable and 

not unfairly discriminatory. Priority 

Customers continue to be assessed the 

lowest Simple Order Fee for Removing 

Liquidity in SPY. Priority Customer 

liquidity benefits all market participants 

by providing more trading 

opportunities, which attracts Market 

Makers. An increase in the activity of 

these market participants in turn 

facilitates tighter spreads, which may 

cause an additional corresponding 

increase in order flow from other market 

participants. 

Options 7, Section 9 

The Exchange’s proposal to remove 

obsolete rule text within Options 7, 

Section 9.B, Port Fees is reasonable, 

equitable and not unfairly 

discriminatory. Options 7, Section 9.B 

refers to a technology infrastructure 

migration that occurred in 2019. The 

rule text related to the migration is 

outdated and would not apply to any 

Phlx market participant. 

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. 

Inter-Market Competition 

The proposal does not impose an 

undue burden on inter-market 

competition. The Exchange believes its 

proposal remains competitive with 

other options markets and will offer 

market participants with another choice 

of where to transact options. The 

Exchange notes that it 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 

fees to remain competitive with other 

exchanges that have been exempted 

from compliance with the statutory 

standards applicable to exchanges. 

Because competitors are free to modify 

their own fees in response, and because 

market participants may readily adjust 

their order routing practices, the 

Exchange believes that the degree to 

which fee changes in this market may 

impose any burden on competition is 

extremely limited. 

Intra-Market Competition 

The proposed amendments do not 

impose an undue burden on intramarket competition. 

Options 7, Section 3 

The Exchange’s proposal to increase 

the Customer Simple Order Fee for 

Removing Liquidity in SPY from $0.38 

to $0.41 per contract does not impose an 

undue burden on competition. Priority 

Customers continue to be assessed the 

lowest Simple Order Fee for Removing 

Liquidity in SPY. Priority Customer 

liquidity benefits all market participants 

by providing more trading 

opportunities, which attracts Market 

Makers. An increase in the activity of 

these market participants in turn 

facilitates tighter spreads, which may 

cause an additional corresponding 

increase in order flow from other market 

participants. 

Options 7, Section 9 

The Exchange’s proposal to remove 

obsolete rule text within Options 7, 

Section 9.B, Port Fees does not impose 

an undue burden on competition. The 

rule text related to the migration is 

outdated and would not apply to any 

Phlx market participant. 

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.14

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

Phlx–2022–01 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–Phlx–2022–01. 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–Phlx–2022–01, and should 

be submitted on or before February 14, 

2022. 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 15 / Monday, January 24, 2022 / Notices 3635 

15 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The Exchange initially filed to adopt the fee 

waiver and waive the BTL fee in 2015. See 

Securities Exchange Act Release No. 74031 (January 

12, 2015), 80 FR 2462 (January 16, 2015) (SR– 

NYSE–2014–78). The Exchange has filed to extend 

the fee waiver and waive the BTL fee for each 

calendar year since 2017. See Securities Exchange 

Act Release Nos. 79710 (December 29, 2016), 82 FR 

1395 (January 5, 2017) (SR–NYSE–2016–89); 82418 

(December 28, 2017), 83 FR 568 (January 4, 2018) 

(SR–NYSE–2017–70); 84899 (December 20, 2018), 

83 FR 67395 (December 28, 2018) (SR–NYSE–2018– 

65); 87952 (January 13, 2020), 85 FR 3089 (January 

17, 2020) (SR–NYSE–2019–73); and 90891 (January 

11, 2021), 86 FR 4147 (January 15, 2021) (SR– 

NYSE–2021–03). 

5 15 U.S.C. 78f(b). 

6 15 U.S.C. 78f(b)(4), (5). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01218 Filed 1–21–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–93992; File No. SR–NYSE– 

2022–01] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Its 

Price List To Extend a Waiver of New 

Firm Application Fees for Certain 

Applications and of Bond Trading 

License Fees 

January 18, 2022. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on January 

4, 2022, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Price List to (1) extend a fee waiver for 

new firm application fees for applicants 

seeking only to obtain a bond trading 

license (‘‘BTL’’) for 2022; and (2) waive 

the BTL fee for 2022. The Exchange 

proposes to implement the fee changes 

effective January 3, 2022. The proposed 

rule change is available on the 

Exchange’s website at www.nyse.com, 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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

Price List to (1) extend a fee waiver for 

new firm application fees for applicants 

seeking only to obtain a BTL for 2022; 

and (2) waive the BTL fee for 2022.4 The 

Exchange proposes to implement the fee 

changes effective January 3, 2022. 

The Exchange currently charges a 

New Firm Fee ranging from $2,000 to 

$4,000, depending on the type of firm, 

which is charged per application for any 

broker-dealer that applies to be 

approved as an Exchange member 

organization. The Exchange proposes to 

amend the Price List to waive the New 

Firm Fee for 2022 for new member 

organization applicants that are seeking 

only to obtain a BTL and not trade 

equities at the Exchange. The proposed 

waiver of the New Firm Fee would be 

available only to applicants seeking 

approval as a new member organization, 

including carrying firms, introducing 

firms, or non-public organizations, 

which would be seeking to obtain a BTL 

at the Exchange and not trade equities. 

Further, if a new firm that is approved 

as a member organization and has had 

the New Firm Fee waived converts a 

BTL to a full trading license within one 

year of approval, the New Firm Fee 

would be charged in full retroactively. 

The Exchange believes that charging the 

New Firm Fee retroactively within a 

year of approval is appropriate because 

it would discourage applicants to claim 

that they are applying for a BTL solely 

to avoid New Firm Fees. 

Additionally, the Exchange currently 

charges a BTL fee of $1,000 per year. 

The Exchange proposes to amend the 

Price List to waive the BTL fee for 2022 

for all member organizations. 

The Exchange believes that the 

proposed fee changes would provide 

increased incentives for bond trading 

firms that are not currently Exchange 

member organizations to apply for 

Exchange membership and a BTL. The 

Exchange believes that having more 

member organizations trading on the 

Exchange’s bond platform would benefit 

investors through the additional display 

of liquidity and increased execution 

opportunities in Exchange-traded bonds 

at the Exchange. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,5 in general, and 

furthers the objectives of Sections 

6(b)(4) and 6(b)(5) of the Act,6 in 

particular, because it provides for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

members, issuers and other persons 

using its facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

The Exchange believes that it is 

reasonable to waive the New Firm Fee 

and the annual BTL fee for 2022 to 

provide an incentive for bond trading 

firms to apply for Exchange membership 

and a BTL. The Exchange believes that 

providing an incentive for bond trading 

firms that are not currently Exchange 

member organizations to apply for 

membership and a BTL would 

encourage market participants to 

become members of the Exchange and 

bring additional liquidity to a 

transparent bond market. To the extent 

the existing New Firm Fees or the BTL 

fee serves as a disincentive for bond 

trading firms to become Exchange 

member organizations, the Exchange 

believes that the proposed fee change 

could expand the number of firms 

eligible to trade bonds on the Exchange. 

The Exchange believes creating 

incentives for bond trading firms to 

trade bonds on the Exchange protects 

investors and the public interest by 

increasing the competition and liquidity 

on a transparent market for bond 

trading. The proposed waiver of the 

New Firm Fee and BTL fee is equitable 

and not unfairly discriminatory because 

it would be offered to all market 

participants that wish to trade at the 

Exchange the narrower class of debt 

securities only. 


jspears on DSK121TN23PROD with NOTICES1