6212 Federal Register / Vol. 87, No. 23 / Thursday, February 3, 2022 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The Exchange originally filed to amend the Fee 

Schedule on December 29, 2021 (SR–NYSEAmer– 

2021–52), with an effective date of January 3, 2022, 

then withdrew such filing and amended the Fee 

Schedule on January 12, 2022 (SR–NYSEAmer– 

2022–04), which latter filing the Exchange 

withdrew on January 21, 2022. 

5For purposes of this filing, ‘‘Professional’’ 

Electronic volume includes: Professional Customer, 

Broker Dealer, Non-NYSE American Options 

Market Maker, and Firm. 

6See NYSE American Options Fee Schedule, 

Section I.H., available at: https://www.nyse.com/ 

publicdocs/nyse/markets/american-options/NYSE_

American_Options_Fee_Schedule.pdf. 

Counsel’s Office, 100 F Street NE, 

Washington, DC 20549–8010. 

Calvert High Income Term Trust [File 

No. 811–23587] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. Applicant has 

never made a public offering of its 

securities and does not propose to make 

a public offering or engage in business 

of any kind. 

Filing Date: The application was filed 

on October 29, 2021. 

Applicant’s Address: jbeksha@

eatonvance.com. 

Cascades Trust [File No. 811–04626] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. The applicant has 

transferred its assets to Aquila Tax-Free 

Trust of Oregon, a series of Aquila 

Municipal Trust, and on June 26, 2020 

made a final distribution to its 

shareholders based on net asset value. 

Expenses of $314,858 incurred in 

connection with the reorganization were 

paid by the applicant and the acquiring 

fund. 

Filing Date: The application was filed 

on December 29, 2021. 

Applicant’s Address: info@

aquilafunds.com. 

Eaton Vance Income Opportunities 

Fund-MA [File No. 811–23572] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. Applicant has 

never made a public offering of its 

securities and does not propose to make 

a public offering or engage in business 

of any kind. 

Filing Dates: The application was 

filed on October 29, 2021, and amended 

on January 12, 2022. 

Applicant’s Address: jbeksha@

eatonvance.com. 

NexPoint Event Driven Fund [File No. 

811–23156] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. Applicant has 

never made a public offering of its 

securities and does not propose to make 

a public offering or engage in business 

of any kind. 

Filing Date: The application was filed 

on October 14, 2021. 

Applicant’s Address: jon-luc.dupuy@

klgates.com. 

NB Crossroads Private Markets Fund 

VI Custody LP [File No. 811–23442] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. Applicant has 

never made a public offering of its 

securities and does not propose to make 

a public offering or engage in business 

of any kind. 

Filing Dates: The application was 

filed on November 5, 2021, and 

amended on January 6, 2022. 

Applicant’s Address: corey.issing@

nb.com. 

Theseus U.S. Debt Fund [File No. 811– 

23453] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. Applicant has 

never made a public offering of its 

securities and does not propose to make 

a public offering or engage in business 

of any kind. 

Filing Dates: The application was 

filed on September 21, 2021, and 

amended on January 14, 2022. 

Applicant’s Address: 

robert.robertson@dechert.com. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–02178 Filed 2–2–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94093; File No. SR– 

NYSEAMER–2022–08] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Amend the NYSE American 

Options Fee Schedule 

January 28, 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 

21, 2022, NYSE American LLC (‘‘NYSE 

American’’ 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 the 

NYSE American Options Fee Schedule 

(‘‘Fee Schedule’’) regarding fees for 

Professional executions. The Exchange 

proposes to implement the fee change 

effective January 21, 2022.4 The 

proposed 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 purpose of this filing is to modify 

certain fees for Electronic executions in 

the ‘‘Professional’’ range.5 Specifically, 

the Exchange proposes to modify the 

fees for Electronic executions in the 

Professional range for all participants, as 

well as fees for Electronic executions for 

participants that qualify for the 

Professional Step-Up Incentive.6 The 

Exchange further proposes a discounted 

rate for Electronic volume in the 

Professional range for ATP Holders that 

achieve Tier 3 or higher in the American 


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Federal Register / Vol. 87, No. 23 / Thursday, February 3, 2022 / Notices 6213 

7See id. at Section I.E. (American Customer 

Engagement (‘‘ACE’’) Program). The ACE program 

offers tiered credits based on increasing levels of 

Customer Electronic Average Daily Volume 

(‘‘ADV’’) or Total Electronic ADV, of which 20% of 

the qualifying volume for the Tier must be 

Customer volume. Participants in the ACE Program 

are eligible for per contract credits on Customer 

volume in Electronic options transactions based on 

the ACE Tier achieved. 

8To effect this change, the Exchange also 

proposes to add references to footnote 8 in the 

‘‘Participant’’ column to specify that the rate set 

forth in footnote 8 would be available to BrokerDealer, Firm, Non-NYSE American Options Market 

Maker, and Professional Customer participants. See 

proposed Fee Schedule, Section I.A. 

9See, e.g., Nasdaq MRX, LLC (‘‘Nasdaq MRX’’) 

Options 7 Pricing Schedule, Section 3. Regular 

Order Fees and Rebates, available at: https://

listingcenter.nasdaq.com/rulebook/mrx/rules/ 

MRX%20Options%207 (charging $0.90 maker fee 

and $1.10 taker fee for transactions by NASDAQ 

MRX Professional Customers in non-penny 

symbols); BOX Exchange (‘‘BOX’’) Fee Schedule, 

Section I.A. Non-Auction Transactions, available at: 

https://boxoptions.com/regulatory/fee-schedule/ 

(providing for $0.95 fee on BOX Professional 

Customer or Broker Dealer transactions with 

customers); Nasdaq ISE, LLC (‘‘Nasdaq ISE’’) 

Options 7 Pricing Schedule, Section 3. Regular 

Order Fees and Rebates, available at: https://

listingcenter.nasdaq.com/rulebook/ise/rules/ 

ISE%20Options%207 (providing for $0.70 maker 

fee and $0.90 taker fee for Professional 

transactions); see also MIAX Options (‘‘MIAX’’) Fee 

Schedule, Section 1.a.iv, Professional Rebate 

Program, available at: https://

www.miaxoptions.com/sites/default/files/fee_

schedule-files/MIAX_Options_Fee_Schedule_

121021.pdf (setting forth incentive program that, 

like the Professional Step-Up Incentive, provides a 

discounted net rate on Professional (as defined by 

the MIAX program) electronic volume, provided the 

Member achieves certain Professional volume 

increase percentage thresholds in the month 

relative to the fourth quarter of 2015). 

10See Nasdaq MRX Pricing Schedule, BOX Fee 

Schedule, and Nasdaq ISE Fee Schedule, id. 

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

12 15 U.S.C. 78f(b)(4) and (5). 

Customer Engagement (‘‘ACE’’) 

Program.7

The Exchange proposes to implement 

the rule change on January 21, 2022. 

Proposed Rule Change 

Professional Transaction Rates 

Currently, Section I.A. of the Fee 

Schedule (‘‘Rates for Options 

transactions’’) provides that the 

Exchange charges all participants a base 

rate of $0.75 per contract for Electronic 

executions in the Professional range in 

Non-Penny issues. The Exchange 

proposes to increase the rate per 

contract for Electronic transactions in 

Non-Penny issues for all participants 

that execute in the Professional range to 

$0.85 per contract. 

The Exchange also proposes to 

increase the per contract rate for 

Electronic transactions in Penny issues 

by Firm participants from $0.47 to 

$0.49. 

The Exchange further proposes to add 

footnote 8 in Section I.A., which would 

provide for an additional discount to 

ATP Holders that also participate in the 

ACE program. Specifically, ATP Holders 

that achieve at least ACE Tier 3 would 

qualify for a further discounted rate of 

$0.80 per contract for Electronic 

transactions in the Professional range in 

Non-Penny issues.8

Professional Step-Up Incentive 

The Professional Step-Up Incentive is 

a program offering incentives to ATP 

Holders that increase their Electronic 

volume in the Professional range. 

Currently, the Professional Step-Up 

Incentive program provides that ATP 

Holders that increase their monthly 

Electronic Professional volume by 

specified percentages of TCADV over 

their August 2019 volume or, for new 

ATP Holders, that increase Electronic 

Professional volume by specified 

percentages of TCADV above a base 

level of 10,000 contracts ADV, will 

qualify for certain reduced transaction 

rates on Electronic Professional volume, 

as well as credits on Electronic 

Customer volume at Tier 1 of the ACE 

program. The Professional Step-Up 

Incentive program offers such incentives 

at two Tiers, based on qualifying 

volume. 

The Exchange proposes to modify the 

rates offered under the Professional 

Step-Up Incentive program to increase 

the per contract Non-Penny rates for 

both Tiers by $0.05 per contract. 

Specifically, the Exchange proposes to 

increase the rate for Tier A from $0.60 

per contract to $0.65 per contract, and 

to increase the rate for Tier B from $0.50 

per contract to $0.55 per contract. 

* * * * * 

The Exchange’s fees are constrained 

by intermarket competition, as ATP 

Holders may direct their order flow to 

any of the 16 options exchanges, 

including exchanges that charge similar 

fees for Professional transactions and 

that offer a similar incentive program for 

Professional volume.9 Thus, ATP 

Holders have a choice of where they 

direct their order flow. The Exchange 

believes that the proposed modifications 

to the base rates applicable to Electronic 

executions in the Professional range 

(including the additional discount 

proposed for ATP Holders that achieve 

ACE Tier 3 or better) and to the 

Professional Step-Up Incentive program 

would not discourage ATP Holders from 

continuing to direct and execute 

Electronic Professional volume on the 

Exchange. In addition, the proposed 

change to provide ATP Holders that 

achieve ACE Tier 3 or higher with a 

lower per contract rate on Non-Penny 

Electronic transactions in the 

Professional range is designed to incent 

ATP Holders to direct such order flow 

to the Exchange by offering a more 

favorable rate on Professional 

executions while also encouraging 

increased Customer volume. Moreover, 

although the proposed changes would 

increase the rates for Electronic 

executions in the Professional range for 

Non-Penny issues (and, for Firm 

participants, the rates for executions in 

Penny issues), the modified rates remain 

lower than those charged by competing 

options exchanges,10 and the Exchange 

does not believe that the modified rates 

would discourage ATP Holders from 

continuing to direct Electronic 

Professional volume to the Exchange, 

thereby promoting market quality and 

opportunities for order execution for all 

market participants. In addition, while 

the Exchange likewise proposes 

increased rates for Non-Penny contracts 

for participants in the Professional StepUp Incentive program, the Exchange 

believes that the program, as modified, 

would continue to incent ATP Holders 

to direct both Professional and 

Customer order flow to the Exchange 

because it would continue to offer 

discounted rates on Professional volume 

coupled with ACE program Tier 1 

credits on Customer volume. Thus, the 

Exchange believes the proposed changes 

should continue to incent the consistent 

and concerted direction of both 

Professional and Customer order flow to 

the Exchange by ATP Holders, making 

it a more attractive venue for trading. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,11 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,12 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 Proposed Rule Change Is 

Reasonable 

The Exchange operates in a highly 

competitive 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 SRO revenues and, also, recognized 

that current regulation of the market 


khammond on DSKJM1Z7X2PROD with NOTICES
6214 Federal Register / Vol. 87, No. 23 / Thursday, February 3, 2022 / Notices 

13See Securities Exchange Act Release No. 51808 

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

(S7–10–04) (‘‘Reg NMS Adopting Release’’). 

14The OCC publishes options and futures volume 

in a variety of formats, including daily and monthly 

volume by exchange, available at: https://

www.theocc.com/Market-Data/Market-DataReports/Volume-and-Open-Interest/MonthlyWeekly-Volume-Statistics. 

15Based on a compilation of OCC data for 

monthly volume of equity-based options and 

monthly volume of ETF-based options, see id., the 

Exchange’s market share in equity-based options 

was 9.09% for the month of November 2020 and 

7.06% for the month of November 2021. 

16See Nasdaq MRX Pricing Schedule, BOX Fee 

Schedule, and Nasdaq ISE Fee Schedule, supra note 

9; see also Fee Schedule, Section I.A. (providing for 

$0.50 per contract rate for Penny issues for BrokerDealer, Non-NYSE American Options Market 

Maker, and Professional Customer participants); 

Nasdaq Options Market, Options 7 Pricing 

Schedule, Section 2 Nasdaq Options Market—Fees 

and Rebates, available at: https://listingcenter.

nasdaq.com/rulebook/nasdaq/rules/Nasdaq%20

Options%207 (setting forth $0.50 fee for Firms to 

remove liquidity in penny symbols). 

system ‘‘has been remarkably successful 

in promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 13

There are currently 16 registered 

options exchanges competing for order 

flow. Based on publicly-available 

information, and excluding index-based 

options, no single exchange has more 

than 16% of the market share of 

executed volume of multiply-listed 

equity and ETF options trades.14

Therefore, no exchange possesses 

significant pricing power in the 

execution of multiply-listed equity and 

ETF options order flow. More 

specifically, in November 2021, the 

Exchange had less than 8% market 

share of executed volume of multiplylisted equity and ETF options trades.15

The Exchange believes that the evershifting market share among the 

exchanges from month to month 

demonstrates that market participants 

can shift order flow, or discontinue or 

reduce use of certain categories of 

products, in response to fee changes. 

Accordingly, competitive forces 

constrain options exchange transaction 

fees. Stated otherwise, changes to 

exchange transaction fees can have a 

direct effect on the ability of an 

exchange to compete for order flow. 

The Exchange believes that the 

proposed modifications to the 

Professional transaction fees and to the 

Firm charge for transactions in Penny 

issues are reasonable because they are 

within the range of fees currently 

charged by other options exchanges and, 

in the case of the Firm rate, would also 

more closely align with both the 

Exchange’s Penny rates for other 

executions in the Professional range and 

the fee charged by another options 

exchange.16 Accordingly, the Exchange 

believes that the proposed rates, 

although they would generally increase 

the rates for Professional Electronic 

executions, would not discourage ATP 

Holders from continuing to direct 

Professional volume to the Exchange. In 

addition, to the extent the proposed fees 

on Professional volume are coupled 

with new or existing incentives that are 

intended to encourage Customer volume 

(e.g., the proposed additional discount 

available to ATP Holders that achieve 

ACE Tier 3 or higher), the Exchange 

further believes that the proposed 

changes are reasonably designed to 

encourage ATP Holders to direct a 

variety of transactions to the Exchange. 

All market participants stand to benefit 

from such volume—whether 

Professional or Customer—as such 

increase promotes market depth, 

facilitates tighter spreads and enhances 

price discovery, and may lead to a 

corresponding increase in order flow 

from other market participants. 

The Proposed Rule Change Is an 

Equitable Allocation of Credits and Fees 

The Exchange believes the proposed 

rule change is an equitable allocation of 

its fees and credits. The proposal is 

based on the amount and type of 

business transacted on the Exchange, 

and ATP Holders can opt to direct their 

Professional Electronic order flow to the 

Exchange to avail themselves of the 

rates and incentives offered or not. The 

Exchange also believes that the 

proposed rate for Firm transactions in 

Penny issues would be an equitable 

allocation of fees because it would bring 

the rate closer in line with those 

assessed to other participants executing 

in the Professional range. Moreover, 

although the proposed changes would 

generally increase the rates for 

Electronic executions in the 

Professional range, the Exchange 

believes that they would not discourage 

ATP Holders from continuing to 

aggregate their executions at the 

Exchange as a primary execution venue, 

particularly to the extent the proposal 

provides opportunities for ATP Holders 

to qualify for reduced rates by 

increasing their Customer volume. The 

Exchange further believes that 

maintaining a higher fee for Professional 

transactions as compared to transactions 

by Market Makers and Specialists 

represents an equitable allocation of fees 

because Market Makers and Specialists 

are subject to heightened obligations 

and additional fees based on their roles 

on the Exchange. 

To the extent that the proposed 

changes attract more Professional 

Electronic volume or Customer volume 

to the Exchange, this increased order 

flow would continue to make the 

Exchange a more competitive venue for, 

among other things, order execution. 

Thus, the Exchange believes the 

proposed rule changes would improve 

market quality for all market 

participants on the Exchange and, as a 

consequence, attract more order flow to 

the Exchange thereby improving marketwide quality and price discovery. 

The Proposed Rule Change Is Not 

Unfairly Discriminatory 

The Exchange believes that the 

proposal is not unfairly discriminatory 

because the proposed modifications 

would be apply and be available to all 

similarly-situated market participants 

on an equal and non-discriminatory 

basis. 

The proposed changes are based on 

the amount and type of business 

transacted on the Exchange and would 

apply to all ATP Holders that execute 

Professional Electronic transactions to 

the Exchange. The Exchange believes 

that the disparity between fees for 

Professional Electronic transactions and 

Electronic transactions by Market 

Makers or Specialists is not unfairly 

discriminatory because those 

participants are subject to heightened 

obligations and additional fees based on 

their roles on the Exchange. In addition, 

ATP Holders that qualify for the 

Professional Step-Up Incentive will still 

be entitled to a discounted rate based on 

the Tier they achieve. The Exchange 

also believes that increasing the rate for 

Firm transactions in Penny issues 

would not be unfairly discriminatory 

because it would bring the rate closer in 

line with those assessed for transactions 

by other participants in the Professional 

range in Penny issues. In addition, to 

the extent the proposed rates are 

intended to incent both Professional and 

Customer volume, the Exchange 

believes they are designed to continue 

to encourage ATP Holders to direct 

order flow to the Exchange and utilize 

the Exchange as a primary trading venue 

(if they have not done so previously). To 

the extent that the proposed changes 

attract more executions to the Exchange, 

this increased order flow would 

continue to make the Exchange a more 

competitive venue for, among other 

things, order execution. Thus, the 

Exchange believes the proposed rule 

changes would improve market quality 

for all market participants on the 

Exchange and, as a consequence, attract 

more order flow to the Exchange thereby 

improving market-wide quality and 

price discovery. The resulting increased 

volume and liquidity would provide 

more trading opportunities and tighter 

spreads to all market participants and 


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Federal Register / Vol. 87, No. 23 / Thursday, February 3, 2022 / Notices 6215 

17See Reg NMS Adopting Release, supra note 13, 

at 37499. 

18See supra note 9. 

19See supra note 14. 

20See supra note 15. 

21 15 U.S.C. 78s(b)(3)(A). 

22 17 CFR 240.19b–4(f)(2). 

23 15 U.S.C. 78s(b)(2)(B). 

thus would promote just and equitable 

principles of trade, 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. 

Finally, the Exchange believes that it 

is subject to significant competitive 

forces, as described below in the 

Exchange’s statement regarding the 

burden on competition. 

For the foregoing reasons, the 

Exchange believes that the proposal is 

consistent with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act, the Exchange does not believe 

that the proposed rule change would 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

Instead, as discussed above, the 

Exchange believes that the proposed 

changes would encourage the 

submission of additional liquidity to a 

public exchange, thereby promoting 

market depth, price discovery and 

transparency and enhancing order 

execution opportunities for all market 

participants. As a result, the Exchange 

believes that the proposed change 

furthers the Commission’s goal in 

adopting Regulation NMS of fostering 

integrated competition among orders, 

which promotes ‘‘more efficient pricing 

of individual stocks for all types of 

orders, large and small.’’ 17

Intramarket Competition. The 

Exchange believes that the proposed 

modifications to the base rates for 

Professional Electronic transactions, as 

well as to the rates available to ATP 

Holders that qualify for the Professional 

Step-Up Incentive, would continue to 

incent market participants to direct both 

Professional and Customer volume to 

the Exchange. Greater liquidity benefits 

all market participants on the Exchange, 

and increased Electronic Professional 

volume would increase opportunities 

for execution of other trading interest. In 

addition, the base rates, as modified, 

would be the same for all participants 

executing Professional Electronic 

volume in Non-Penny issues, and the 

rates for ATP Holders that achieve the 

Professional Step-Up Incentive will 

continue to be discounted and maintain 

the incentive structure of the two Tiers 

of that program. In addition, while 

Professional transactions will continue 

to be subject to a higher fee than 

transactions by Market Makers or 

Specialists, the Exchange does not 

believe that the proposed change would 

impose any burden on competition that 

is not necessary or appropriate because 

the lower fees offered to Market Makers 

or Specialists on their Electronic 

transactions are balanced with 

heightened obligations and additional 

fees based on their roles on the 

Exchange. 

Intermarket Competition. The 

Exchange operates in a highly 

competitive market in which market 

participants can readily favor one of the 

16 competing option exchanges 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 (including other options 

exchanges with a similar incentive 

program or comparable transaction 

fees) 18 and to attract order flow to the 

Exchange. Based on publicly-available 

information, and excluding index-based 

options, no single exchange has more 

than 16% of the market share of 

executed volume of multiply-listed 

equity and ETF options trades.19

Therefore, no exchange possesses 

significant pricing power in the 

execution of multiply-listed equity & 

ETF options order flow. More 

specifically, in November 2021, the 

Exchange had less than 8% market 

share of executed volume of multiplylisted equity and ETF options trades.20

The Exchange believes that the 

proposed rule change reflects this 

competitive environment because it 

modifies the Exchange’s fees in a 

manner designed to continue to 

encourage ATP Holders to direct trading 

interest to the Exchange, to provide 

liquidity and to attract order flow, 

including by continuing to provide 

discounted rates for ATP Holders that 

achieve the Professional Step-Up 

Incentive and offering a new discounted 

rate to ATP Holders that execute the 

requisite Customer volume to achieve 

ACE Tier 3. To the extent that this 

purpose is achieved, all the Exchange’s 

market participants should benefit from 

the improved market quality and 

increased opportunities for price 

improvement. 

Thus, the Exchange believes that the 

proposed change could promote 

competition between the Exchange and 

other execution venues, including those 

that currently offer similar pricing 

models, by encouraging additional 

orders to be sent to the Exchange for 

execution. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 21 of the Act and 

subparagraph (f)(2) of Rule 19b–4 22

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 23 of the Act 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– 

NYSEAMER–2022–08 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–NYSEAMER–2022–08. 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 


khammond on DSKJM1Z7X2PROD with NOTICES
6216 Federal Register / Vol. 87, No. 23 / Thursday, February 3, 2022 / Notices 

24 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. 

4See NYSE Arca Rule 6.1A–O(a)(13). 

5The Exchange has announced that, pending 

regulatory approval, it will begin migrating 

Exchange-listed options to Pillar on February 7, 

2022, available here: https://www.nyse.com/traderupdate/history#110000322291. See also Securities 

Exchange Act Release No. 92304 (June 30, 2021), 86 

FR 36440 (July 9, 2021) (SR–NYSEArca–2021–47) 

(SR–NYSEArca–2021–47) (Notice of Filing of 

Proposed Rule Change for New Rules 6.1P–O, 

6.37AP–O, 6.40P–O, 6.41P–O, 6.62P–O, 6.64P–O, 

6.76P–O, and 6.76AP–O and Amendments to Rules 

1.1, 6.1–O, 6.1A–O, 6.37–O, 6.65A–O and 6.96–O) 

and Amendment No. 4 to SR–NYSEArca–2021–47, 

available here: https://www.sec.gov/comments/srnysearca-2021-47/srnysearca202147-20112491- 

265389.pdf. 

6See Fee Schedule, RATIO THRESHOLD FEE, 

available here: https://www.nyse.com/publicdocs/ 

nyse/markets/arca-options/NYSE_Arca_Options_

Fee_Schedule.pdf; see also Securities Exchange Act 

Release No. 60102 (June 11, 2009), 74 FR 29251 

(June 19, 2009) (SR–NYSEArca–2009–50). 

7See id. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(4) and (5). 

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–NYSEAMER–2022–08, and 

should be submitted on or before 

February 24, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–02181 Filed 2–2–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94095; No. SR–NYSEArca– 

2022–04] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the NYSE Arca 

Options Fee Schedule 

January 28, 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 

25, 2022, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ 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 self-regulatory 

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 the 

NYSE Arca Options Fee Schedule (the 

‘‘Fee Schedule’’) to provide for a waiver 

of the Ratio Threshold Fee in 

connection with the Exchange’s 

migration to a new trading platform. 

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 purpose of this filing is to amend 

the Fee Schedule to waive the Ratio 

Threshold Fee during the Exchange’s 

migration of options trading to a new 

electronic trading platform. 

Currently, the Exchange conducts 

options trading on an electronic 

platform known as ‘‘OX.’’ OX refers to 

the Exchange’s electronic order 

delivery, execution, and reporting 

system for designated option issues 

through which orders and quotes of 

Users are consolidated for execution 

and/or display.4 On or about February 7, 

2022, the Exchange anticipates 

beginning the migration of its options 

trading to a new technology platform 

known as Pillar.5

The Ratio Threshold Fee is based on 

the number of orders entered as 

compared to the number of executions 

received in a calendar month and is 

intended to deter OTP Holders and OTP 

Firms (collectively, ‘‘OTP Holders’’) 

from submitting an excessive number of 

orders that are not executed.6 Because 

order to execution ratios of 10,000 to 1 

or greater have the potential residual 

effect of exhausting system resources, 

bandwidth, and capacity, such ratios 

may create latency and impact other 

OTP Holders’ ability to receive timely 

executions.7

The Exchange proposes to modify the 

Fee Schedule to specify that the 

monthly Ratio Threshold Fee assessed 

to OTP Holders will be waived for the 

duration of the migration and for three 

calendar months after the migration. 

Specifically, the Exchange proposes that 

the waiver of the Ratio Threshold Fee 

take effect for the month during which 

the migration begins and remain in 

effect for three months following the 

month in which the migration is 

completed (the ‘‘Waiver Period’’). The 

Exchange believes that waiving Ratio 

Threshold Fees during the Waiver 

Period will give both OTP Holders and 

the Exchange an opportunity to adjust to 

new functionality and new order 

handling mechanisms without imposing 

a financial burden on OTP Holders 

based on their order to execution ratios 

during the Pillar transition. In addition, 

during the Waiver Period, the Exchange 

intends to work closely with OTP 

Holders to monitor traffic rates and their 

order to execution ratio as they adapt to 

trading on the Pillar platform. 

The Exchange proposes to implement 

this change beginning in the month 

during which it commences its 

migration to the Pillar platform. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,8 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,9 in particular, 


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