4672 Federal Register / Vol. 87, No. 19 / Friday, January 28, 2022 / Notices 

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

2 17 CFR 240.19b–4. 

3See MIAX’s ‘‘The Market at a Glance’’, available 

at https://www.miaxoptions.com/ (last visited 

January 11, 2022). 

4See id. 

5The term ‘‘Member’’ means an individual or 

organization approved to exercise the trading rights 

associated with a Trading Permit. Members are 

deemed ‘‘members’’ under the Exchange Act. See 

Exchange Rule 100. 

6The term ‘‘Public Customer’’ means a person 

that is not a broker or dealer in securities. See 

Exchange Rule 100. 

7The term ‘‘Priority Customer’’ means a person 

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

securities, and (ii) does not place more than 390 

orders in listed options per day on average during 

a calendar month for its own beneficial account(s). 

See Exchange Rule 100. 

8Qualified Contingent Cross Order. A Qualified 

Contingent Cross Order is comprised of an 

originating order to buy or sell at least 1,000 

contracts, or 10,000 mini-option contracts, that is 

identified as being part of a qualified contingent 

trade, as that term is defined in Interpretations and 

Policies .01 of Rule 516, coupled with a contra-side 

order or orders totaling an equal number of 

contracts. A Qualified Contingent Cross Order is not 

valid during the opening rotation process described 

in Rule 503. See Exchange Rule 516(j). 

9A Complex Qualified Contingent Cross or 

‘‘cQCC’’ Order is comprised of an originating 

complex order to buy or sell where each component 

is at least 1,000 contracts that is identified as being 

part of a qualified contingent trade, as defined in 

Rule 516, Interpretations and Policies .01, coupled 

with a contra-side complex order or orders totaling 

an equal number of contracts. Trading of cQCC 

Orders is governed by Rule 515(h)(4). See Exchange 

Rule 518(b)(6). 

10PRIME is a process by which a Member may 

electronically submit for execution (‘‘Auction’’) an 

order it represents as agent (‘‘Agency Order’’) 

against principal interest, and/or an Agency Order 

against solicited interest. See Exchange Rule 

515A(a). 

11A Complex PRIME or ‘‘cPRIME’’ Order is a 

complex order (as defined in Rule 518(a)(5)) that is 

submitted for participation in a cPRIME Auction. 

Trading of cPRIME Orders is governed by Rule 

515A, Interpretations and Policies .12. See 

Exchange Rule 518(b)(7). 

12An Auction-or-Cancel or ‘‘AOC’’ order is a limit 

order used to provide liquidity during a specific 

any item or subject listed on the agenda 

for the open session above. 

Additionally, the public will be given 

the option to join the public comment 

session and participate via 

teleconference. Registration of speakers 

at the public comment period is 

required. Should you wish to participate 

via teleconference, you will be required 

to give your first and last name, a valid 

email address to send an invite and a 

phone number to reach you should a 

technical issue arise. Speakers may 

register online at https://

www.surveymonkey.com/r/BOG-02-08- 

2022. No more than three minutes shall 

be allotted to each speaker. The time 

allotted to each speaker will be 

determined after registration closes. 

Registration for the public comment 

period, either in person or via 

teleconference, will end on February 6 

at 5 p.m. ET. Participation in the public 

comment period is governed by 39 CFR 

232.1(n). 

CONTACT PERSON FOR MORE INFORMATION: 

Michael J. Elston, Secretary of the 

Board, U.S. Postal Service, 475 L’Enfant 

Plaza SW, Washington, DC 20260–1000. 

Telephone: (202) 268–4800. 

Michael J. Elston, 

Secretary. 

[FR Doc. 2022–01874 Filed 1–26–22; 11:15 am] 

BILLING CODE 7710–12–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94039; File No. SR–MIAX– 

2022–05] 

Self-Regulatory Organizations; Miami 

International Securities Exchange LLC; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend the Professional 

Rebate Program 

January 24, 2022. 

Pursuant to the provisions of 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 January 13, 2022, Miami 

International Securities Exchange LLC 

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

Securities and Exchange Commission 

(‘‘Commission’’) a 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 is filing a proposal to 

amend the MIAX Options Fee Schedule 

(the ‘‘Fee Schedule’’). 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings, at MIAX’s principal office, 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 the 

Fee Schedule to change the Professional 

Rebate Program so that it applies only 

to orders that add liquidity to the 

Exchange. The Exchange initially filed 

this proposal on January 3, 2022 (SR– 

MIAX–2022–02) and withdrew such 

filing on January 13, 2022. The 

Exchange proposes to implement the fee 

change effective January 13, 2022. 

The Exchange notes that it operates in 

a highly competitive market in which 

market participants can readily direct 

order flow to competing venues if they 

deem fee levels at a particular venue to 

be excessive or incentives to be 

insufficient. More specifically, the 

Exchange is one of 16 registered options 

exchanges competing for order flow. 

Based on publicly-available 

information, and excluding index-based 

options, no single exchange has more 

than approximately 13% of the market 

share of executed volume of multiplylisted equity and exchange-traded fund 

(‘‘ETF’’) options trades as of January 11, 

2022, for the month of January 2022.3

Therefore, no exchange possesses 

significant pricing power in the 

execution of multiply-listed equity and 

ETF options order flow. More 

specifically, as of January 11, 2022, the 

Exchange has a total market share of 

5.41% of all equity options volume, for 

the month of January 2022.4

The Exchange currently offers a 

Professional Rebate Program (the 

‘‘Program’’) as defined in the Fee 

Schedule. Under the Program, the 

Exchange will credit each Member 5 the 

per contract amount resulting from any 

contracts executed from an order 

submitted by a Member for the 

account(s) of a (i) Public Customer 6 that 

is not a Priority Customer; 7 (ii) NonMIAX Market Maker; (iii) Non-Member 

Broker-Dealer; or (iv) Firm (for purposes 

of the Professional Rebate Program, 

‘‘Professional’’) which is executed 

electronically on the Exchange in all 

multiply-listed option classes 

(excluding, in simple or complex as 

applicable, mini-options, QCC 8 and 

cQCC Orders,9 PRIME 10 and cPRIME 

Orders,11 PRIME and cPRIME AOC 

Responses,12 PRIME and cPRIME 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 19 / Friday, January 28, 2022 / Notices 4673 

Exchange process (such as the Opening Imbalance 

process described in Rule 503) with a time in force 

that corresponds with that event. AOC orders are 

not displayed to any market participant, are not 

included in the MBBO and therefore are not eligible 

for trading outside of the event, may not be routed, 

and may not trade at a price inferior to the away 

markets. See Exchange Rule 516(b)(4). 13For purposes of the MIAX Options Fee 

Schedule, the term ‘‘Affiliate’’ means (i) an affiliate 

of a Member of at least 75% common ownership 

between the firms as reflected on each firm’s Form 

BD, Schedule A, (‘‘Affiliate’’), or (ii) the Appointed 

Market Maker of an Appointed EEM (or, conversely, 

the Appointed EEM of an Appointed Market 

Maker). See MIAX Options Exchange Fee Schedule. 

14A Simple Order is an order on the Exchange’s 

regular electronic book of orders and quotes. See 

Exchange Rule 518(a)(15). 

15A ‘‘complex order’’ is any order involving the 

concurrent purchase and/or sale of two or more 

different options in the same underlying security 

(the ‘‘legs’’ or ‘‘components’’ of the complex order), 

for the same account, in a ratio that is equal to or 

greater than one-to-three (.333) and less than or 

equal to three-to-one (3.00) and for the purposes of 

executing a particular investment strategy. Minioptions may only be part of a complex order that 

includes other mini-options. Only those complex 

orders in the classes designated by the Exchange 

and communicated to Members via Regulatory 

Circular with no more than the applicable number 

of legs, as determined by the Exchange on a classby-class basis and communicated to Members via 

Regulatory Circular, are eligible for processing. A 

complex order can also be a ‘‘stock-option order’’ 

as described further, and subject to the limitations 

set forth, in Interpretations and Policies .01 of this 

Rule. A stock-option order is an order to buy or sell 

a stated number of units of an underlying security 

(stock or Exchange Traded Fund Share (‘‘ETF’’)) or 

a security convertible into the underlying stock 

(‘‘convertible security’’) coupled with the purchase 

or sale of options contract(s) on the opposite side 

of the market representing either (i) the same 

number of units of the underlying security or 

convertible security, or (ii) the number of units of 

the underlying stock necessary to create a delta 

neutral position, but in no case in a ratio greater 

than eight-to-one (8.00), where the ratio represents 

the total number of units of the underlying security 

or convertible security in the option leg to the total 

number of units of the underlying security or 

convertible security in the stock leg. Only those 

stock-option orders in the classes designated by the 

Exchange and communicated to Members via 

Regulatory Circular with no more than the 

applicable number of legs as determined by the 

Exchange on a class-by-class basis and 

communicated to Members via Regulatory Circular, 

are eligible for processing. See Exchange Rule 

518(a)(5). 

Contra-side Orders, and executions 

related to contracts that are routed to 

one or more exchanges in connection 

with the Options Order Protection and 

Locked/Crossed Market Plan referenced 

in MIAX Rule 1400 (collectively, for 

purposes of the Professional Rebate 

Program, ‘‘Excluded Contracts’’)), 

provided the Member achieves certain 

Professional volume increase percentage 

thresholds in the month relative to the 

fourth quarter of 2015, as described in 

the table above. 

The percentage thresholds in each tier 

are based upon the increase in the total 

volume submitted by a Member and 

executed for the account(s) of a 

Professional on MIAX (not including 

Excluded Contracts) during a particular 

month as a percentage of the total 

volume reported by the Options 

Clearing Corporation (OCC) in MIAX 

classes during the same month (the 

‘‘Current Percentage’’), less the greater 

of (x) total volume submitted by that 

Member and executed for the account(s) 

of a Professional on MIAX (not 

including Excluded Contracts) during 

the fourth quarter of 2015 as a 

percentage of the total volume reported 

by OCC in MIAX classes during the 

fourth quarter of 2015, and (y) 0.065% 

(the ‘‘Baseline Percentage’’). Volume for 

transactions in both simple and 

complex orders will be aggregated to 

determine the appropriate volume tier 

threshold applicable to each transaction. 

For purposes of determining the 

Baseline Percentage for any Member 

that did not execute any contracts for 

the account(s) of a Professional on 

MIAX in the fourth quarter of 2015, the 

Baseline Percentage shall be 0.065%. 

The Member’s percentage increase 

will be calculated as the Current 

Percentage less the Baseline Percentage. 

Members will receive rebates for 

contracts submitted by such Member on 

behalf of a Professional(s) that are 

executed within a particular percentage 

tier based upon that percentage tier 

only, and will not receive a rebate for 

such contracts that applies to any other 

tier. The increase in volume percentage 

will be recorded for, and credits will be 

delivered to, the Member that submits 

the order to MIAX on behalf of the 

Professional. Volume for both simple 

and complex orders will be aggregated 

to determine the appropriate volume 

tier threshold applicable to each 

transaction. MIAX will aggregate the 

contracts resulting from Professional 

orders transmitted and executed 

electronically on MIAX from Members 

and their Affiliates 13 for purposes of the 

thresholds described in the table above. 

A Member may request to receive its 

credit under the Program as a separate 

direct payment. 

For Simple Orders 14 the per contract 

credit of $0.10 for Tier 1 will apply to 

percentage thresholds from above 0.00% 

up to 0.005%. Next, the per contract 

credit of $0.15 for Tier 2 will apply only 

to percentage thresholds from above 

0.005% up to 0.020%, beginning with 

the first contract executed in Tier 2, but 

will not apply to contracts executed in 

Tier 1, to which the $0.10 per contract 

credit applied. Thereafter, the per 

contract credit of $0.20 for Tier 3 will 

apply to percentage thresholds from 

above 0.020%, beginning with the first 

contract executed in Tier 3, but will not 

apply to contracts executed in Tier 1, to 

which the $0.10 per contract credit 

applied, and will not apply to contracts 

executed in Tier 2, to which the $0.15 

per contract credit applied. 

For Complex Orders 15 the per 

contract credit of $0.03 for Tier 1 will 

apply to percentage thresholds from 

above 0.00% up to 0.005%. Next, the 

per contract credit of $0.05 for Tier 2 

will apply only to percentage thresholds 

from above 0.005% up to 0.020%, 

beginning with the first contract 

executed in Tier 2, but will not apply 

to contracts executed in Tier 1, to which 

the $0.03 per contract credit applied. 

Thereafter, the per contract credit of 

$0.07 for Tier 3 will apply to percentage 

thresholds from above 0.020%, 

beginning with the first contract 

executed in Tier 3, but will not apply 

to contracts executed in Tier 1, to which 

the $0.03 per contract credit applied, 

and will not apply to contracts executed 

in Tier 2, to which the $0.05 per 

contract credit applied. 

The below table reflects the current 

Professional Rebate Program in the Fee 

Schedule. 

PROFESSIONAL REBATE PROGRAM

Type of market participants eligible for rebate Tier 

Percentage thresholds of 

volume increase 

in multiply-listed 

options (except 

Excluded Contracts) 

for the Current Month 

Compared to Fourth 

Quarter 2015 

Per contract 

credit 

(except 

Excluded 

Contracts) 

for Simple 

Orders 

Per contract 

credit 

(except 

Excluded 

Contracts) 

for Complex 

Orders 

Public Customer that is Not a Priority Customer .............................. 1 Above 0.00%–0.005% ..... $0.10 $0.03 

Non-MIAX Market Maker .................................................................. 2 Above 0.005%–0.020% ... 0.15 0.05 


jspears on DSK121TN23PROD with NOTICES1
4674 Federal Register / Vol. 87, No. 19 / Friday, January 28, 2022 / Notices 

16 15 U.S.C. 78f(b). 17 15 U.S.C. 78f(b)(4). 18 15 U.S.C. 78f(b)(5). 

19See Securities Exchange Act Release No. 51808 

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

PROFESSIONAL REBATE PROGRAM—Continued 

Type of market participants eligible for rebate Tier 

Percentage thresholds of 

volume increase 

in multiply-listed 

options (except 

Excluded Contracts) 

for the Current Month 

Compared to Fourth 

Quarter 2015 

Per contract 

credit 

(except 

Excluded 

Contracts) 

for Simple 

Orders 

Per contract 

credit 

(except 

Excluded 

Contracts) 

for Complex 

Orders 

Non-Member Broker-Dealer Firm ..................................................... 3 Above 0.020% .................. 0.20 0.07 

The Exchange now proposes to revise 

the Program to make the credit available 

only to those orders (both simple and 

complex) that add liquidity to the 

Exchange. The purpose of this change is 

to encourage Members to direct greater 

Professional trade volume to the 

Exchange that adds liquidity. Increased 

Professional volume will provide for 

greater liquidity, which benefits all 

market participants. The practice of 

incentivizing increased order flow in 

order to attract liquidity is, and has 

been, commonly practiced in the 

options markets. The Program similarly 

intends to attract Professional order 

flow, which will increase liquidity, 

thereby providing greater trading 

opportunities and tighter spreads for 

other market participants and causing a 

corresponding increase in order flow 

from such other market participants. 

The specific volume increase 

thresholds of the Program’s tiers are not 

changing under this proposal and were 

set based upon business determinations 

and an analysis of volume levels. The 

volume increase thresholds are intended 

to encourage firms that route some 

Professional orders to the Exchange to 

increase the number of such orders that 

are sent to the Exchange to achieve the 

next threshold and to provide incentive 

for new participants to send 

Professional orders as well. Increasing 

the number of such orders sent to the 

Exchange will in turn provide tighter 

and more liquid markets, and therefore 

attract more business overall. Similarly, 

the different credit rates at the different 

tier levels were based on an analysis of 

revenue and volume levels and are 

intended to provide increasing rewards 

for increasing the volume of trades sent 

to and executed on the Exchange. The 

specific amounts of the tiers and rates 

were set in order to encourage suppliers 

of Professional order flow to reach for 

higher tiers. 

The purpose of calculating the 

Baseline Percentage as the total volume 

submitted by that Member and executed 

for the account(s) of a Professional on 

MIAX (not including Excluded 

Contracts) during the fourth quarter of 

2015 as a percentage of the total volume 

reported by OCC in MIAX classes 

during the fourth quarter of 2015 is to 

maintain a constant measuring 

methodology based upon a sample of 

the most current market conditions 

available over a meaningful period of 

time (e.g., three months), which should 

help Members submitting orders 

designated as Professional (as defined 

above) better understand the volume 

thresholds that will result in higher 

rebate amounts. 

The Exchange will continue to leave 

certain Excluded Contracts (specifically, 

Non-Priority Customer to Non-Priority 

Customer orders, QCC Orders, PRIME 

Orders, PRIME AOC Responses, and 

PRIME Contra-side Orders) out of the 

calculation of the Current and Baseline 

percentages measuring contracts 

executed on MIAX and accordingly 

from the calculation of the percentage 

thresholds of volume increase. The 

Exchange believes that it is unnecessary 

and redundant to offer an incentive 

where both sides of the trade are 

submitted and executed by the same 

Member that submits such orders on 

behalf of Professionals. 

Executions related to contracts that 

are routed to one or more exchanges in 

connection with the Options Order 

Protection and Locked/Crossed Market 

Plan referenced in MIAX Rule 1400 are 

excluded from the calculation because 

the execution of such orders occurs on 

away markets. Providing rebates to 

Professional executions that occur on 

other trading venues would be 

inconsistent with the proposal. 

Therefore, such volume is excluded 

from the Program in order to promote 

the underlying goal, which is to increase 

liquidity and execution volume on the 

Exchange. 

The Exchange also excludes minioptions from the calculation of the 

percentage thresholds of volume 

increase. Mini-options contracts are 

excluded from the Program because the 

cost to the Exchange to process quotes, 

orders and trades in mini-options is the 

same as for standard options. This, 

coupled with the lower per-contract 

transaction fees charged to other market 

participants, makes it impractical to 

offer Members a credit for Professional 

mini-option volume that they transact. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 16

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 17 in 

particular, in that it is an equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

issuers and other persons using its 

facilities. The Exchange also believes 

the proposal furthers the objectives of 

Section 6(b)(5) of the Act 18 in that it is 

designed to promote just and equitable 

principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest and is not designed to 

permit unfair discrimination between 

customers, issuers, brokers and dealers. 

As discussed above the Exchange 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels to be 

excessive or incentives to be 

insufficient, and the Exchange 

represents only a small percentage of 

the overall market. The Commission has 

repeatedly expressed its preference for 

competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In Regulation NMS, the 

Commission highlighted the importance 

of market forces in determining prices 

and self-regulatory organization 

(‘‘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.’’ 19

The Exchange believes that the evershifting market shares among the 

exchanges from month to month 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 19 / Friday, January 28, 2022 / Notices 4675 

20 15 U.S.C. 78f(b)(4). 

21 15 U.S.C. 78f(b)(4) and (5). 

22 15 U.S.C. 78s(b)(3)(A)(ii). 

23 17 CFR 240.19b–4(f)(2). 

demonstrates that market participants 

can shift order flow or discontinue or 

reduce use of certain categories of 

products, in response to transaction and 

non-transaction fee changes. 

Accordingly, competitive forces 

constrain the Exchange’s transaction 

fees and rebates, and market 

participants can readily trade on 

competing venues if they deem pricing 

levels at those other venues to be more 

favorable. The Exchange believes the 

proposal reflects a reasonable and 

competitive pricing structure which will 

continue to incentivize market 

participants to direct liquidity adding 

orders to the Exchange, which the 

Exchange believes would enhance 

liquidity and market quality on the 

exchange to the benefit of all Members. 

The Exchange believes that amending 

the Program to provide a per contract 

rebate only to liquidity adding orders 

and to no longer provide a per contract 

rebate to those orders that remove 

liquidity from the Exchange is 

reasonable, equitable and not unfairly 

discriminatory as the Program is 

available to all Members and all 

similarly situated market participants 

are subject to the same rebate structure 

under the Program, and access to the 

Exchange is offered on terms that are 

not unfairly discriminatory. The 

Exchange’s proposal is intended to 

encourage participants to submit more 

orders that add liquidity to the 

Exchange, thus enhancing liquidity on 

the Exchange. Increased liquidity 

benefits all market participants by 

providing more trading opportunities 

and tighter spreads. The Exchange 

believes the Program, as amended, will 

continue to encourage liquidity and 

support the quality of price discovery, 

thereby promoting market transparency 

and improving investor protection. 

The Exchange believes that the 

proposed change to its Program is 

reasonably designed to incentivize 

Members to submit orders which add 

liquidity to the Exchange, which 

facilitates increased trading 

opportunities, tighter spreads, and 

overall enhanced market quality to the 

benefit of all market participants. The 

Exchange further believes the proposed 

change is reasonable as incentive 

programs have been widely adopted by 

exchanges, including the Exchange, and 

are reasonable, equitable, and not 

unfairly discriminatory because they are 

open to all members on an equal basis 

and provide additional benefits or 

discounts that are reasonably related to 

an exchange’s market quality. In 

particular, the Exchange believes its 

proposal to provide a per contract credit 

only to liquidity adding orders and to 

not provide a per contract credit to 

liquidity removing orders is reasonable, 

equitable, and not unfairly 

discriminatory for these same reasons, 

as it provides Members with an 

additional incentive to submit liquidity 

adding orders to the Exchange in order 

to qualify for a rebate under the 

Program. 

The Exchange believes its proposal to 

offer certain per contract credits to 

simple and complex orders that add 

liquidity under the Program is 

consistent with Section 6(b)(4) of the 

Act 20 because it applies equally to all 

participants. The Exchange’s proposal is 

intended to encourage participants to 

submit more orders to the Exchange that 

add liquidity, thus enhancing liquidity 

and removing impediments to and 

perfecting the mechanisms of a free and 

open market and a national market 

system. Additionally, if a Member does 

not satisfy the requirements of the 

Program then they will simply not 

receive the rebate offered by the 

Program for that month. 

For the reasons discussed above, the 

Exchange submits that the proposal 

satisfies the requirements of Sections 

6(b)(4) and 6(b)(5) of the Act 21 in that 

it provides for the equitable allocation 

of reasonable dues, fees and other 

charges among its Members and other 

persons using its facilities and is not 

designed to unfairly discriminate 

between customers, issuers, brokers, or 

dealers. 

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. The 

Exchange believes that the proposed 

rule change would increase both 

intermarket and intramarket 

competition by incentivizing Members 

to direct orders for the account(s) of 

Professionals to the Exchange, which 

should enhance the quality of the 

Exchange’s markets and increase the 

volume of contracts traded here. To the 

extent that this purpose is achieved, all 

the Exchange’s market participants 

should benefit from the improved 

market liquidity. Enhanced market 

quality and increased transaction 

volume that results from the anticipated 

increase in order flow directed to the 

Exchange will benefit all market 

participants and improve competition 

on the Exchange. 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. In such an environment, 

the Exchange must continually adjust its 

fees to remain competitive with other 

exchanges and to attract order flow to 

the Exchange. The Exchange believes 

that the proposed rule change reflects 

this competitive environment because it 

encourages market participants to direct 

their customer order flow, to provide 

liquidity, and to attract additional 

transaction volume, to the Exchange. 

Given the robust competition for 

volume among options markets, many of 

which offer the same products, 

implementing a volume based rebate 

program for orders that add liquidity to 

attract order flow like the one being 

proposed in this filing is consistent with 

the above-mentioned goals 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,22 and Rule 

19b–4(f)(2) 23 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 (http://www.sec.gov/ 

rules/sro.shtml); or 


jspears on DSK121TN23PROD with NOTICES1
4676 Federal Register / Vol. 87, No. 19 / Friday, January 28, 2022 / Notices 

24 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78mm(a)(1). 

2 15 U.S.C. 78s(b). 

3See Letter from Angela S. Dunn, Principal 

Associate General Counsel, Nasdaq, to J. Matthew 

DeLesDernier, Assistant Secretary, Commission, 

dated January 20, 2022 (‘‘Exemptive Request’’). 

4 17 CFR 240.0–12. 

5See Exemptive Request, supra note 3, at 5. 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

MIAX–2022–05 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–MIAX–2022–05. 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–MIAX–2022–05 and should 

be submitted on or before February 18, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01702 Filed 1–27–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94031] 

Order Granting Application by The 

Nasdaq Stock Market LLC for an 

Exemption Pursuant to Section 36(a) of 

the Exchange Act From the Rule Filing 

Requirements of Section 19(b) of the 

Exchange Act With Respect to Certain 

Rules Incorporated by Reference 

January 24, 2022. 

The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) has filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) an 

application for an exemption under 

Section 36(a)(1) of the Securities 

Exchange Act of 1934 (‘‘Exchange 

Act’’) 1 from the rule filing requirements 

of Section 19(b) of the Exchange Act 2

with respect to certain rules of the 

Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’), Cboe 

Exchange, Inc. (‘‘Cboe’’), and New York 

Stock Exchange LLC (‘‘NYSE’’), that the 

Exchange seeks to incorporate by 

reference.3 Section 36 of the Exchange 

Act, subject to certain limitations, 

authorizes the Commission to 

conditionally or unconditionally 

exempt any person, security, or 

transaction, or any class thereof, from 

any provision of the Exchange Act or 

rule thereunder, if necessary or 

appropriate in the public interest and 

consistent with the protection of 

investors. 

The Exchange has requested, pursuant 

to Rule 0–12 under the Exchange Act,4

that the Commission grant the Exchange 

an exemption from the rule filing 

requirements of Section 19(b) of the 

Exchange Act for changes to the 

Exchange’s rules that are effected solely 

by virtue of a change to a crossreferenced FINRA, Cboe, or NYSE rule. 

Specifically, the Exchange requests that 

it be permitted to incorporate by 

reference changes made to the FINRA, 

Cboe, and NYSE rules that are crossreferenced in the Exchange’s rules 

identified below, without the need for 

the Exchange to file separately similar 

proposed rule changes pursuant to 

Section 19(b) of the Exchange Act: 5

• General 9, Section 1(b) (Prohibition 

Against Trading Ahead of Customer 

Orders) cross-references FINRA Rule 

5320 (except for FINRA Rule 5320.02(b) 

and the reference to FINRA Rule 6420 

in FINRA Rule 5320). 

• General 9, Section 1(c) (Front 

Running Policy) cross-references FINRA 

Rule 5270. 

• General 9, Section 1(f) 

(Confirmation of Callable Common 

Stock) cross-references FINRA Rule 

2232. 

• General 9, Section 1(h) (Interfering 

With the Transfer of Customer Accounts 

in the Context of Employment Disputes) 

cross-references FINRA Rule 2140. 

• General 9, Section 2 (Customers’ 

Securities or Funds) cross-references 

FINRA Rule 2150. 

• General 9, Section 3 

(Communications with the Public) 

cross-references FINRA Rule 2210 

(except for FINRA Rule 2210(c)). 

• General 9, Section 5 

(Telemarketing) cross-references FINRA 

Rule 3230. 

• General 9, Section 6 (Forwarding of 

Proxy and Other Issuer-Related 

Materials) cross-references FINRA Rule 

2251. 

• General 9, Section 7 (Disclosure of 

Financial Condition, Control 

Relationship with Issuer and 

Participation or Interest in Primary or 

Secondary Distribution) cross-references 

FINRA Rules 2261, 2262, and 2269. 

• General 9, Section 8 (SIPC 

Information) cross-references FINRA 

Rule 2266. 

• General 9, Section 9 (Fairness 

Opinions) cross-references FINRA Rule 

5150. 

• General 9, Section 10(a) 

(Recommendations to Customers 

(Suitability)) cross-references FINRA 

Rule 2111 (except for the references to 

FINRA Rule 2214 in FINRA Rule 2111). 

• General 9, Section 10(c) (Know 

Your Customer) cross-references FINRA 

Rule 2090. 

• General 9, Section 11 (Best 

Execution and Interpositioning) crossreferences FINRA Rule 5310 (except for 

the references to FINRA Rule 2121 and 

its supplementary material in FINRA 

Rule 5310). 

• General 9, Section 12 (Customer 

Account Statements) cross-references 

FINRA Rule 2231. 

• General 9, Section 13 (Margin 

Disclosure Statement) cross-references 

FINRA Rule 2264. 

• General 9, Section 14 (Approval 

Procedures for Day-Trading Accounts) 

cross-references FINRA Rules 2130 and 

2270. 

• General 9, Section 15 (Borrowing 

From or Lending to Customers) crossreferences FINRA Rule 3240. 

• General 9, Section 16 (Charges for 

Services Performed) cross-references 

FINRA Rule 2122. 


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