Federal Register / Vol. 87, No. 25 / Monday, February 7, 2022 / Notices 6925 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 15 17 CFR 200.30–3(a)(12). 

1See Securities Exchange Act Release No. 34– 

93818 (December 17, 2021), 86 FR 73009 (December 

23, 2021) (SR–NYSEArca–2021–91) (Order 

Approving a Proposed Rule Change to Amend Rule 

6.87–O). 

2See Exchange Rule 7170(b). 

3For purposes of Rule 7170, the term ‘‘Customer’’ 

does not include any broker-dealer or Professional 

Customer. See Exchange Rule 7170(a)(1). 

4See e.g., Securities Exchange Act Release Nos. 

74911 (May 8, 2015), 80 FR 27717 (May 14, 2015) 

(SR–BOX–2015–18); 80247 (March 15, 2017), 82 FR 

14589 (March 21, 2017) (SR–BOX–2017–08). 

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 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

GEMX–2022–04 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–GEMX–2022–04. 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–GEMX–2022–04 and 

should be submitted on or before 

February 28, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–02431 Filed 2–4–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94124; File No. SR–BOX– 

2022–05] 

Self-Regulatory Organizations; BOX 

Exchange LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend BOX Rule 7170 

(Nullification and Adjustment of 

Options Transactions Including 

Obvious Errors) To Improve the 

Operation of the Rule 

February 1, 2022. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on January 

26. 2022, BOX Exchange LLC (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

BOX Rule 7170 (Nullification and 

Adjustment of Options Transactions 

including Obvious Errors) to improve 

the operation of the Rule. The text of the 

proposed rule change is available from 

the principal office of the Exchange, at 

the Commission’s Public Reference 

Room and also on the Exchange’s 

internet website at http://

boxoptions.com. 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 

BOX Rule 7170 (Nullification and 

Adjustment of Options Transactions 

including Obvious Errors) to improve 

the operation of the Rule. This is a 

competitive filing that is based on a 

proposal recently submitted by NYSE 

Arca, Inc. (‘‘NYSE Arca’’) and approved 

by the Commission.1

Following discussions with other 

exchanges and a cross-section of 

industry participants and in 

coordination with the Listed Options 

Market Structure Working Group 

(‘‘LOMSWG’’) (collectively, the 

‘‘Industry Working Group’’), the 

Exchange proposes: (1) To amend 

section (b)(3) of the Rule to permit the 

Exchange to determine the Theoretical 

Price 2 of a Customer 3 option 

transaction in a wide market so long as 

a narrow market exists at any point 

during the 10-second period after an 

opening or re-opening; and (2) to amend 

section (c)(4)(B) of the Rule to adjust, 

rather than nullify, Customer 

transactions in Obvious Error situations, 

provided the adjustment does not 

violate the limit price. 

Proposed Change to Section (b)(3) 

Exchange Rule 7170 has been part of 

various harmonization efforts by the 

Industry Working Group.4 These efforts 


jspears on DSK121TN23PROD with NOTICES1
6926 Federal Register / Vol. 87, No. 25 / Monday, February 7, 2022 / Notices 

5See Securities Exchange Act Release No. 81351 

(August 8, 2017), 82 FR 37920 (August 14, 2017) 

(SR–BOX–2017–25). 

6See supra note 6. 

7The term ‘‘NBBO’’ means the national best bid 

or offer as calculated by the Exchange based on 

market information received by the Exchange from 

OPRA. See Exchange Rule 100. 

8 Specifically, the current Rule provides at 

section (c)(4)(C) that if any Participant has 200 or 

have often centered around the 

Theoretical Price for which an options 

transaction should be compared to 

determine whether an Obvious Error has 

occurred. For instance, all options 

exchanges have adopted language 

comparable to IM–7170–5, Exchange 

Determining Theoretical Price,5 which 

explains how an exchange is to 

determine Theoretical Price at the open, 

when there are no valid quotes, and 

when there is a wide quote. This 

includes at times the use of a singular 

third-party vendor, known as a TP 

Provider (currently CBOE Livevol, LLC). 

Similarly, section (b)(3) of Rule 7170 

was previously harmonized across all 

options exchanges to handle situations 

where executions occur in markets that 

are wide (as set forth in the rule).6

Under that section, the Exchange 

determines the Theoretical Price if the 

NBBO 7 for the subject series is wide 

immediately before execution and a 

narrow market (as set forth in the rule) 

existed ‘‘during the 10 seconds prior to 

the transaction.’’ The rule goes on to 

clarify that, should there be no narrow 

quotes ‘‘during the 10 seconds prior to 

the transaction,’’ the Theoretical Price 

for the affected series is the NBBO that 

existed at the time of execution 

(regardless of its width). In recent 

discussions, the Industry Working 

Group has identified proposed changes 

to section (b)(3) of Rule 7170 that would 

improve the Rule’s functioning. 

Currently, section (b)(3) does not permit 

the Exchange to determine the 

Theoretical Price unless there is a 

narrow quote 10 seconds prior to the 

transaction. However, in the first 

seconds of trading, there is no 10- 

second period ‘‘prior to the 

transaction.’’ Further, the Industry 

Working Group has observed that prices 

in certain series can be disjointed at the 

start of trading. Accordingly, the 

Exchange proposes to provide 

additional protections to trading in 

certain circumstances immediately after 

the opening before liquidity has had a 

chance to enter the market. The 

Exchange proposes to amend section 

(b)(3) to allow the Exchange to 

determine the Theoretical Price in a 

wide market so long as a narrow market 

exists at any point during the 10-second 

period after an opening or reopening. 

Specifically, the Exchange proposes 

that the existing text of section (b)(3) 

would become subsection ‘‘(A).’’ The 

Exchange proposes to add the following 

heading and text as subsection ‘‘(B)’’: 

(B) Customer Transactions Occurring 

Within 10 Seconds or Less After an Opening 

or Re-Opening: 

(i) The Exchange will determine the 

Theoretical Price if the bid/ask differential of 

the NBB and NBO for the affected series just 

prior to the Customer’s erroneous transaction 

was equal to or greater than the Minimum 

Amount set forth in paragraph A above and 

there was a bid/ask differential less than the 

Minimum Amount during the 10 seconds 

prior to the transaction. 

(ii) If there was no bid/ask differential less 

than the Minimum Amount during the 10 

seconds prior to the transaction, then the 

Exchange will determine the Theoretical 

Price if the bid/ask differential of the NBB 

and NBO for the affected series just prior to 

the Customer’s erroneous transaction was 

equal to or greater than the Minimum 

Amount set forth in paragraph A above and 

there was a bid/ask differential less than the 

Minimum Amount anytime during the 10 

seconds after an opening or re-opening. 

(iii) If there was no bid/ask differential less 

than the Minimum Amount during the 10 

seconds following an Opening or ReOpening, then the Theoretical Price of an 

option series is the last NBB or NBO just 

prior to the Customer transaction in question, 

as set forth in paragraph (b) above. 

(iv) Customer transactions occurring more 

than 10 seconds after an opening or reopening are subject to paragraph A above. 

The following examples illustrate the 

functioning of the proposed rule change. 

Consider that the NBBO of a series 

opens as $0.01 at $4.00. A marketable 

limit order to buy one contract arrives 

one second later and is executed at 

$4.00. In the third second of trading, the 

NBBO narrows from $0.01 at $4.00 to 

$2.00 at $2.10. While the execution 

occurred in a market with wide widths, 

there was no tight market within the 10 

seconds prior to execution. Accordingly, 

under the current rule, the trade would 

not qualify for Obvious Error review, in 

part due to the fact that there was only 

a single second of trading before the 

execution. Under the proposal, since a 

tight market existed at some point in the 

first 10 seconds of trading (i.e., in the 

third second), the Exchange would be 

able to determine the Theoretical Price 

as provided in IM–7170–5. As another 

example, the NBBO for a series opens as 

$0.01 at $4.00. In the seventh second of 

trading, a marketable limit order is 

received to buy one contract and is 

executed at $4.00. Five seconds later 

(i.e., in the twelfth second of trading), 

the NBBO narrows from $0.01 at $4.00 

to $2.00 at $2.10. While the execution 

occurred in a market with wide widths, 

there was no tight market within 10 

seconds prior to execution. Accordingly, 

under the current rule, the trade would 

not qualify for Obvious Error review. 

Under the proposal, since no tight 

market existed at any point during the 

first 10 seconds of trading (i.e., the 

narrow market occurred in the twelfth 

second), the trade would not qualify for 

Obvious Error review. The proposed 

rule change would also better 

harmonize section (b)(3) with section 

(b)(1) of the Rule. Under section (b)(1), 

the Exchange is permitted to determine 

the Theoretical Price for transactions 

occurring as part of the opening auction 

process (as described in Exchange Rule 

7170) if there is no NBB or NBO for the 

affected series just prior to the 

erroneous transaction. However, under 

the current version of section (b)(3), a 

core trading transaction could occur in 

the same wide market but the Exchange 

would not be permitted to determine the 

Theoretical Price. Consider an example 

where one second after the Exchange 

opens a selected series, the NBBO is 

$1.00 at $5.00. At 9:30:03, a customer 

submits a marketable buy order to the 

Exchange and pays $5.00. At 9:30:03, a 

different exchange runs an opening 

auction that results in a customer 

paying $5.00 for the same selected 

series. At 9:30:06, the NBBO changes 

from $1.00 at $5.00 to $1.35 at $1.45. 

Under the current version of section 

(b)(3), the Exchange would not be able 

to determine the Theoretical Price for 

the trade occurring during core trading. 

However, the trade on the other 

exchange could be submitted for review 

under (b)(1) and that exchange would be 

able to determine the Theoretical Price. 

If the proposed change to section (b)(3) 

were approved, both of the trades 

occurring at 9:30:03 (on the Exchange 

during core trading and on another 

exchange via auction) would also be 

entitled to the same review regarding 

the same Theoretical Price based upon 

the same time. 

The proposal would not change any 

Obvious Error review beyond the first 

10 seconds of an opening or re-opening. 

Proposed Change to Section (c)(4)(B) 

The Exchange proposes to amend 

section (c)(4)(B)—the ‘‘Adjust or Bust’’ 

rule for Customer transactions in 

Obvious Error situations—to adjust 

rather than nullify such orders, 

provided the adjustment does not 

violate the Customer’s limit price. 

Currently, the Rule provides that in 

Obvious Error situations, transactions 

involving non-Customers should be 

adjusted, while transactions involving 

Customers are nullified, unless a certain 

condition applies.8 The Industry 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 25 / Monday, February 7, 2022 / Notices 6927 

more Customer transactions under review 

concurrently and the orders resulting in such 

transactions were submitted during the course of 2 

minutes or less, where at least one party to the 

Obvious Error is a non-Customer, then the 

Exchange will apply the non-Customer adjustment 

criteria set forth in (c)(4)(A) for such transactions. 

9 See Securities Exchange Act Release No. 93818 

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

2021) (SR–NYSEArca–2021–91) (Order Approving a 

Proposed Rule Change to Amend Rule 6.87–O). 

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

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

12 See Securities Exchange Act Release No. 74911 

(May 8, 2015), 80 FR 27717 (May 14, 2015) (SR– 

BOX–2015–18). 

13 Dan Raju, Retail Traders Adopt Options En 

Masse, by Dan Raju, (Dec 8, 2020) available at 

https://www.nasdaq.com/articles/retail-tradersadopt-options-en-masse-2020-12-08. 

Working Group has concluded that the 

treatment of these transactions should 

be harmonized under the Rule, such 

that transactions involving Customers 

may benefit from adjustment, just as 

non-Customer transactions currently do, 

except where such adjustment would 

violate the Customer’s limit price; in 

that instance, the trade would be 

nullified. 

Specifically, the Exchange proposes to 

amend the text of section (c)(4)(B) to 

add that where at least one party to the 

Obvious Error is a Customer, ‘‘the 

execution price of the transaction will 

be adjusted by the Official pursuant to 

the table immediately above. Any 

Customer Obvious Error exceeding 50 

contracts will be subject to the Size 

Adjustment Modifier defined in 

subparagraph (a)(4) above. However, if 

such adjustment(s) would result in an 

execution price higher (for buy 

transactions) or lower (for sell 

transactions) than the Customer’s limit 

price,’’ the trade will be nullified. The 

‘‘table immediately above’’ referenced in 

the proposed text refers to the table at 

current Section (c)(4)(A), which 

provides for the adjustment of prices a 

specified amount away from the 

Theoretical Price, rather than adjusting 

the Theoretical Price. 

The Exchange proposes no other 

changes at this time. 

Implementation Date 

The proposed rule change will 

become operative no sooner than six 

months following the approval of the 

NYSE Arca proposal 9 to coincide with 

implementation on other option 

exchanges. The Exchange will announce 

the implementation date to its 

Participants via Regulatory Circular. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),10 in general, and Section 6(b)(5) 

of the Act,11 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general to protect investors and the 

public interest. 

The Exchange believes the proposed 

rule change to section (b)(3) of the Rule 

would remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general, protect 

investors and the public interest 

because it provides a method for 

addressing Obvious Error Customer 

transactions that occur in a wide market 

at the opening of trading. Generally, a 

wide market is an indication of a lack 

of liquidity in the market such that the 

market is unreliable. Current section 

(b)(3) recognizes that a persistently wide 

quote (i.e., more than 10 seconds) 

should be considered the reliable 

market regardless of its width, but does 

not address transactions that occur in a 

wide market in the first seconds of 

trading, where there is no preceding 10- 

second period to reference. Accordingly, 

in the first 10 seconds of trading, there 

is no opportunity for a wide quote to 

have persisted for a sufficiently lengthy 

period such that the market should 

consider it a reliable market for the 

purposes of determining an Obvious 

Error transaction. 

The proposed change would rectify 

this disparity and permit the Exchange 

to consider whether a narrow quote is 

present at any time during the 10- 

second period after an opening or 

reopening. The presence of such a 

narrow quote would indicate that the 

market has gained sufficient liquidity 

and that the previous wide market was 

unreliable, such that it would be 

appropriate for the Exchange to 

determine the Theoretical Price of an 

Obvious Error transaction. In this way, 

the proposed rule harmonizes the 

treatment of Customer transactions that 

execute in an unreliable market at any 

point of the trading day, by making 

them uniformly subject to Exchange 

determination of the Theoretical Price. 

The Exchange believes that the 

proposed change to section (c)(4)(B) of 

the Rule would remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system and enhance the protection of 

investors by harmonizing the treatment 

of non-Customer transactions and 

Customer transactions under the Rule. 

Under the current Rule, Obvious Error 

situations involving non-Customer 

transactions are adjusted, while those 

involving Customer transactions are 

generally nullified, unless they meet the 

additional requirements of section 

(c)(4)(C) (i.e., where a Participant has 

200 or more Customer transactions 

under review concurrently and the 

orders resulting in such transactions 

were submitted during the course of 2 

minutes or less.) The proposal would 

harmonize the treatment of nonCustomer and Customer transactions by 

providing for the adjustment of all such 

transactions, except where such 

adjustment would violate the 

Customer’s limit price. 

When it proposed the current rule in 

2015, the Exchange believed there were 

sound reasons for treating non-Customer 

transactions and Customer transactions 

differently. At the time, the Exchange 

stated its belief that ‘‘Customers are not 

necessarily immersed in the day-today 

trading of the markets, are less likely to 

be watching trading activity in a 

particular option throughout the day, 

and may have limited funds in their 

trading accounts,’’ and that nullifying 

Obvious Error transactions involving 

Customers would give Customers 

‘‘greater protections’’ than adjusting 

such transactions by eliminating the 

possibility that a Customer’s order will 

be adjusted to a significantly different 

price. The Exchange also noted its belief 

that ‘‘Customers are . . . less likely to 

have engaged in significant hedging or 

other trading activity based on earlier 

transactions, and thus, are less in need 

of maintaining a position at an adjusted 

price than non-Customers.’’ 12

Those assumptions about Customer 

trading and hedging activity no longer 

hold. The Exchange and the Industry 

Working Group believe that over the 

course of the last five years, Customers 

that use options have become more 

sophisticated, as retail broker-dealers 

have enhanced the trading tools 

available. Pursuant to OCC data, 

volumes clearing in the Customer range 

have expanded from 12,022,163 ADV in 

2015 to 35,081,130 ADV in 2021. This 

increase in trading activity underscores 

the greater understanding of options by 

Customers as a trading tool and its use 

in the markets. Customers who trade 

options today largely are more educated, 

have better trading tools, and have 

better access to financial news than any 

time prior.13 The proposed rule would 

extend the hedging protections 

currently enjoyed by non-Customers to 

Customers, by allowing them to 

maintain an option position at an 


jspears on DSK121TN23PROD with NOTICES1
6928 Federal Register / Vol. 87, No. 25 / Monday, February 7, 2022 / Notices 

14See supra, note 3. 

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

16 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. 

adjusted price, which would in turn 

prevent a cascading effect by 

maintaining the hedge relationship 

between the option transaction and any 

other transactions in a related security. 

The Exchange believes that extending 

such hedging protections to Customer 

transactions would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system and 

enhance the protection of investors by 

providing greater certainty of execution 

for all participants to options 

transactions. Under the current Rule, a 

Customer that believes its transaction 

was executed pursuant to an Obvious 

Error may be disincentivized from 

submitting the transaction for review, 

since during the review process, the 

Customer would be uncertain whether 

the trade would be nullified, and if so, 

whether market conditions would still 

permit the opportunity to execute a 

related order at a better price after the 

nullification ruling is finalized. In 

contrast, under the proposed rule, the 

Customer would know that the only 

likely outcomes of submitting a trade to 

Obvious Error review would be that the 

trade would stand or be re-executed at 

a better price; the trade would only be 

nullified if the adjustment would violate 

the order’s limit. Similarly, under the 

current Rule, during the review period, 

a market maker who traded contra to the 

Customer would be uncertain if it 

should retain any position executed to 

hedge the original trade, or attempt to 

unwind it, possibly at a significant loss. 

Under the proposed rule change, this 

uncertainty is largely eliminated, and 

the question would be whether the 

already-executed and hedged trade 

would be adjusted to a better price for 

the Customer, or if it would stand as 

originally executed. In this way, the 

proposed rule enhances the protection 

of investors and removes impediments 

to and perfects the mechanism of a free 

and open market and a national market 

system. 

The proposed rule also addresses the 

concern the Exchange cited in its 2015 

filing that adjusting, rather than 

nullifying, Customer transactions could 

lead to a Customer’s order being 

adjusted to a significantly different 

price. To address that concern, the 

proposed rule would prevent Customer 

transactions from being adjusted to a 

price that violates the order’s limit; if 

the adjustment would violate a 

Customer’s limit, the trade would 

instead be nullified. The Exchange 

believes it is in the best interest of 

investors to expand the availability of 

adjustments to Customer transactions in 

all Obvious Error situations except 

where the adjustment would violate the 

Customer’s limit price. Further, the 

Exchange believes that, with respect to 

such proposed adjustments to Customer 

transactions, it is appropriate to use the 

same form of adjustment as is currently 

in place with respect to non-Customer 

transactions as laid out in the table in 

section (c)(4)(A). That is, the Exchange 

believes that it is appropriate to adjust 

to prices a specified amount away from 

the Theoretical Price rather than to 

adjust the Theoretical Price, even 

though the Exchange has determined a 

given trade to be erroneous in nature, 

because the parties in question should 

have had some expectation of execution 

at the price or prices submitted. Also, it 

is common that by the time it is 

determined that an Obvious Error has 

occurred, additional hedging and 

trading activity has already occurred 

based on the executions that previously 

happened. The Exchange believes that 

providing an adjustment to the 

Theoretical Price in all cases would not 

appropriately incentivize market 

participants to maintain appropriate 

controls to avoid potential errors, while 

adjusting to prices a specified amount 

away from the Theoretical Price would 

incentivize such behavior. The 

Exchange believes that the proposal is 

not designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. The 

proposed change to section (b)(3) would 

apply to all instances of a wide market 

occurring within the first 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 

section (c)(4)(B) would harmonize the 

treatment of Obvious Error transactions 

involving Customers and nonCustomers, 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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. In this regard 

and as indicated above, the Exchange 

notes that the rule change is being 

proposed as a competitive response to a 

filing submitted by NYSE Arca that was 

recently approved by the Commission.14

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 has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A) of the 

Act 15 and Rule 19b–4(f)(6) 16

thereunder, the Exchange has 

designated this proposal as one that 

effects a change that: (i) Does not 

significantly affect the protection of 

investors or the public interest; (ii) does 

not impose any significant burden on 

competition; and (iii) by its terms, does 

not become operative for 30 days after 

the date of the filing, or such shorter 

time as the Commission may designate 

if consistent with the protection of 

investors and the public interest. 

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: 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 25 / Monday, February 7, 2022 / Notices 6929 

17 17 CFR 200.30–3(a)(12). 

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– 

BOX–2022–05 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– BOX–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–BOX–2022–05 and should 

be submitted on or before February 28, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–02430 Filed 2–4–22; 8:45 am] 

BILLING CODE 8011–01–P 

SOCIAL SECURITY ADMINISTRATION 

[Docket No: SSA–2022–0003] 

Agency Information Collection 

Activities: Comment Request 

The Social Security Administration 

(SSA) publishes a list of information 

collection packages requiring clearance 

by the Office of Management and 

Budget (OMB) in compliance with 

Public Law 104–13, the Paperwork 

Reduction Act of 1995, effective October 

1, 1995. This notice includes revisions 

and extensions of OMB-approved 

information collections. 

SSA is soliciting comments on the 

accuracy of the agency’s burden 

estimate; the need for the information; 

its practical utility; ways to enhance its 

quality, utility, and clarity; and ways to 

minimize burden on respondents, 

including the use of automated 

collection techniques or other forms of 

information technology. Mail, email, or 

fax your comments and 

recommendations on the information 

collection(s) to the OMB Desk Officer 

and SSA Reports Clearance Officer at 

the following addresses or fax numbers. 

(OMB) Office of Management and 

Budget, Attn: Desk Officer for SSA 

Comments: https://www.reginfo.gov/ 

public/do/PRAMain. Submit your 

comments online referencing Docket ID 

Number [SSA–2022–0003]. 

(SSA) Social Security Administration, 

OLCA, Attn: Reports Clearance 

Director, 3100 West High Rise, 6401 

Security Blvd., Baltimore, MD 21235, 

Fax: 410–966–2830, Email address: 

OR.Reports.Clearance@ssa.gov 

Or you may submit your comments 

online through https://www.reginfo.gov/ 

public/do/PRAMain, referencing Docket 

ID Number [SSA–2022–0003]. 

SSA submitted the information 

collections below to OMB for clearance. 

Your comments regarding these 

information collections would be most 

useful if OMB and SSA receive them 

within 30 days from the date of this 

publication. To be sure we consider 

your comments, we must receive them 

no later than March 9, 2022. Individuals 

can obtain copies of these OMB 

clearance packages by writing to 

OR.Reports.Clearance@ssa.gov. 

1. Application for a Social Security 

Number Card, the Social Security 

Number Application Process (SSNAP), 

internet SSN Replacement Card 

(iSSNRC) Application, and Online 

Social Security Number Application 

Process (oSSNAP)—20 CFR 422.103– 

422.110—0960–0066. SSA collects 

information on the SS–5 (used in the 

United States) and SS–5–FS (used 

outside the United States) to issue 

original or replacement Social Security 

cards. SSA also enters the application 

data into the SSNAP application when 

issuing a card via telephone or in 

person. In addition, hospitals collect the 

same information on SSA’s behalf for 

newborn children through the 

Enumeration-at-Birth process. In this 

process, parents of newborns provide 

hospital birth registration clerks with 

information required to register these 

newborns. Hospitals send this 

information to State Bureaus of Vital 

Statistics (BVS), and they send the 

information to SSA’s National Computer 

Center. SSA then uploads the data to the 

SSA mainframe along with all other 

enumeration data, and we assign the 

newborn a Social Security number 

(SSN) and issue a Social Security card. 

Respondents can also use these 

modalities to request a change in their 

SSN records. In addition, the iSSNRC 

internet application collects information 

similar to the paper SS–5 for no-change 

replacement SSN cards for adult U.S. 

citizens. The iSSNRC modality allows 

certain applicants for SSN replacement 

cards to complete the internet 

application and submit the required 

evidence online rather than completing 

a paper Form SS–5. Finally, oSSNAP 

collects information similar to that 

which we collect on the paper SS–5 for 

no change situations, with the exception 

of name change, new or replacement 

SSN cards for U.S Citizens (adult and 

minor children), and replacement cards 

only for non-U.S. citizens. oSSNAP 

allows these applicants for new or 

replacement SSN cards to start the 

application process on-line, receive a 

list of evidentiary documents, and then 

submit the application data to SSA for 

further processing by SSA employees. 

Applicants need to visit a local SSA 

office to complete the application 

process. The respondents for this 

information collection are applicants for 

original and replacement Social 

Security cards, or individuals who wish 

to change information in their SSN 

records, who use any of the modalities 

described above. 

Type of Request: Revision of an OMBapproved information collection. 


jspears on DSK121TN23PROD with NOTICES1