Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 / Notices 7519 

5 15 U.S.C. 78s(b)(2). 

6 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3Port Order Rate Threshold is defined as the 

maximum allowed message rate on a port. See Cboe 

FIX Specifications, available at: https://cdn.cboe./ 

resources/membership/Cboe_US_Equities_FIX_

Specification.pdf. See also Cboe BOE 

Specifications, available at: https://cdn..com/ 

resources/membership/Cboe_US_Equities_BOE_

Specification.pdf. 

4The term ‘‘System’’ shall mean the electronic 

communications and trading facility designated by 

the Board through which securities orders of Users 

are consolidated for ranking, execution and, when 

applicable, routing away. See Rule 1.5(cc). 

5E.g., Section 5.7 of the New York Stock 

Exchange’s technical specifications states, ‘‘In order 

to protect the Trading Engine from an overload of 

incoming messages, the CGC Gateway employs a 

session-level throttle mechanism. This is a 

configurable value currently set to 1000 messages 

per second on a rolling 1 second basis. In the event 

this throttle mechanism is activated, the gateway 

will slow the sending of incoming messages down 

to the Trading Engine during the throttle period 

(i.e., messages will be queued) so as to not exceed 

the defined message threshold. See https://

www.nyse.com///markets//NYSE_CCG_FIX_

Specification.pdf. 

6E.g., page 73, ‘‘Port Order Rate Threshold’’, of 

the Cboe U.S. Equities FIX Technical 

Specifications, which denotes the current 

maximum allowed message rate on the port. When 

the first non-administrative message is received, a 

one second window begins. During the second no 

more than 4,999 additional non-administrative 

messages will be allowed within that window. If the 

rate is exceeded all new orders in the time window 

are rejected, modifies are treated as cancels, and 

cancels are processed. If maximum rate limit of 

10,000 is requested, no more than 9,999 additional 

non-administrative messages will be allowed within 

that one second window. 

7 In 2016, Cboe Global Markets, Inc. the parent 

company of C1 and C2, acquired Cboe EDGA 

Exchange Inc., Cboe EDGX Exchange, Inc., Cboe 

BZX Exchange, Inc., and Cboe BYX Exchange, Inc. 

(collectively, the ‘‘Cboe Affiliated Exchanges’’). 

Subsequent to the acquisitions, the Cboe Affiliated 

Exchanges sought to align their rulebooks, retaining 

only intended differences between the Cboe 

Affiliated Exchanges. As part of this process C1 

Rule 6.23B and C2 Rule 6.35 were removed from 

the C1 and C2 rulebooks. See SR–CBOE–2019–033 

(https://cdn.cboe.com/resources/regulations/rule_

filings/approved/2019/SR-CBOE-2019-033.pdf.) 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day for this filing 

is February 6, 2022. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change. The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change. 

Accordingly, pursuant to Section 

19(b)(2) of the Act, 5 the Commission 

designates March 23, 2022, as the date 

by which the Commission shall either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

(File No. SR–CboeBZX–2021–083). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–02668 Filed 2–8–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94144; File No. SR– 

CboeEDGX–2022–004] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

of a Proposed Rule Change To Codify 

Certain Practices and Requirements 

Related to the Exchange’s Port 

Message Rate Thresholds 

February 3, 2022. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on January 

21, 2022, Cboe EDGX Exchange, Inc. 

(‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe EDGX Exchange, Inc. (‘‘EDGX’’ 

or the ‘‘Exchange’’) is filing with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) a proposal to codify 

certain practices and requirements 

related to the Exchange’s port message 

rate thresholds, and to promote 

transparency and maintain clarity in the 

rules. The text of the proposed rule 

change is provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

options/regulation/rule_filings/edgx/), 

at the Exchange’s Office of the 

Secretary, 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 purpose of this rule filing is to 

codify certain of the Exchange’s current 

practices and requirements related to its 

port message rate thresholds, which it 

believes will promote transparency and 

maintain clarity in its rules. 

Specifically, the Exchange is proposing 

to add new Rule 11.23, titled Port 

Message Rate Threshold, in order to 

memorialize the Exchange’s ability to 

establish per port message rate limits 

applicable to its Members. The 

Exchange has historically provided 

Members with information regarding the 

port order rate threshold, as defined 

below, in its publicly available technical 

specifications, 3 but to promote 

transparency, the Exchange is proposing 

to codify the Exchange’s discretion to 

impose such limits in its rulebook. The 

System 4 does not have unlimited port 

capacity to consistently support an 

unlimited number of messages 

throughout the trading day. For this 

reason, the Exchange limits each 

Member to a maximum number of 

messages over a set amount of time, per 

port (hereinafter the ‘‘Port Order Rate 

Thresholds’’). While Members may elect 

to establish a lower Port Order Rate 

Threshold, each Member is subject to 

the same maximum Port Order Rate 

Threshold. Like other exchanges, 5

EDGX currently imposes a maximum 

Port Order Rate Threshold, at its 

discretion, and notifies its Members of 

such maximum number through the 

Exchange’s publicly available technical 

specifications.6 Consistent with this 

current functionality, proposed Rule 

11.23 would memorialize that all 

Members shall be subject to a Port Order 

Rate Threshold, as determined by the 

Exchange in its discretion. 

The Exchange notes that proposed 

Rule 11.23 is based on substantially 

similar rules that historically 7 existed 

in the Cboe Options Exchange (‘‘C1’’) 


lotter on DSK11XQN23PROD with NOTICES1
7520 Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 / Notices 

8See MIAX Options and MIAX Emerald Rule 502 

(‘‘Message Packets’’). 

9Rule 6.23B and 6.35 provided: Each Trading 

Permit shall entitle the holder to a maximum 

number of orders and quotes per second(s) as 

determined by the Exchange. Only Market-Makers 

may submit quotes. Trading Permit Holders seeking 

to exceed that number of messages per second(s) 

may purchase additional bandwidth packets at 

prices set forth in the Exchange’s Fees Schedule. 

The Exchange shall, upon request and where good 

cause is shown, temporarily increase a Trading 

Permit Holder’s order entry bandwidth allowance at 

no additional cost. All determinations to 

temporarily expand bandwidth allowance shall be 

made in a non-discriminatory manner and on a fair 

and equal basis. No bandwidth limits shall be in 

effect during pre-opening prior to 8:25 a.m. CT, 

which shall apply to all Trading Permit Holders. 

The Exchange may also determine time periods for 

which there shall temporarily be no bandwidth 

limits in effect for all Trading Permit Holders. Any 

such determination shall be made in the interest of 

maintaining a fair and orderly market. The 

Exchange shall notify all Trading Permit Holders of 

any such determination.’’ 

10 Id. 

11The C1 and C2 Rulebooks defined ‘‘MarketMaker’’ as a Trading Permit Holder registered with 

the Exchange for the purpose of making markets in 

options contracts traded on the Exchange and that 

is vested with the rights and responsibilities 

specified in Chapter 5 of the Rules. 

12See EDGX Exchange fees, effective December 1, 

2021, available at: https://www.cboe.com/us/ 

equities/membership/fee_schedule/edgx/. 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(5). 

15See Securities and Exchange Act Release No. 

73639 (November 19, 2014) 79 FR 72251 (December 

5, 2014) (File No. S7–01–13) (Regulation SCI 

Adopting Release). 

16See Section 6(b) of the Securities and Exchange 

Act of 1934 (the ‘‘Act’’), 15 U.S.C. 78f (National 

Securities Exchanges), which requires that 

exchanges have the capacity to carry out the 

purposes of an exchange under the Act. 

and the Cboe C2 Options Exchange 

(‘‘C2’’) rulebooks, as well as MIAX Rule 

502 (‘‘Message Packets’’) which 

currently exists in the MIAX Options 

and MIAX Emerald (collectively, 

‘‘MIAX’’) rulebooks.8 Like new Rule 

11.23, C1 Rule 6.23B9 (Bandwidth 

Packets), C2 Rule 6.35 10 (Message 

Packets), and MIAX Rule 502 provide(d) 

that Trading Permit Holders are entitled 

to a maximum number of orders and 

quotes per second as determined by C1/ 

C2 or MIAX. 

The Exchange further notes that C1 

Rule 6.23B, C2 Rule 6.35, and MIAX 

Rule 502 provide(d) for certain other 

messaging restrictions and actions not 

included in proposed Rule 11.23; 

namely, the restriction that only a 

Market-Maker 11 may enter quotes, and 

language noting the ability of Trading 

Permit Holders to purchase additional 

bandwidth packets at the prices set forth 

in the exchanges’ fee schedule. 

However, these changes are not 

necessary for the purposes of proposed 

Rule 11.23 because all Exchange 

Members, not just Market Makers, may 

submit messages to the Exchange. 

Additionally, it is already clear from the 

Exchange’s fee filings 12 that additional 

ports are available for purchase. 

Additionally, C1 Rule 6.23B and C2 

Rule 6.35, provided those exchanges 

with the discretion to temporarily 

increase, upon request, a Member’s 

limits, as well as the discretion to 

designate time periods when Members 

shall not be subject to a message limit. 

This language is not included in this 

rule filing because the Exchange is not 

currently proposing to allow Members 

to request temporary message rate 

increases or to designate time periods 

when Members shall not be subject to a 

message limit. 

2. Statutory Basis 

The Exchange believes the proposed 

rule changes are consistent with the 

requirements of Section 6(b) of the 

Act,13 in general, and Section 6(b)(5) of 

the Act,14 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. 

Specifically, the Exchange believes 

that proposed Rule 11.23 does not 

unfairly discriminate amongst market 

participants. Under proposed Rule 

11.23, Members may elect a lower Port 

Order Rate Threshold, but all Members 

are limited to the same maximum Port 

Order Rate Threshold. 

Moreover, by providing the Exchange 

with the explicit discretion to impose 

Port Order Rate Thresholds, proposed 

Rule 11.23 helps to foster a free and 

open national market system, as well as 

the Commission’s goal of ensuring that 

critical market infrastructure has ‘‘levels 

of capacity, integrity, availability, and 

security adequate to maintain their 

operational capability and promote the 

maintenance of fair and order 

market’’.15

As noted above the Exchange’s 

Systems do not have unlimited port 

capacity to consistently support an 

unlimited number of messages 

throughout the trading day. As such, it 

is critical that the Exchange maintain 

discretion to impose Port Order Rate 

Thresholds to ensure that Members are 

not able to submit orders in quantities 

that degrade the capacity and 

performance of Members’ ports, as well 

as the Exchange systems through which 

securities orders of Members are 

consolidated for ranking, execution and, 

where applicable, routing away.16

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change imposes any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Rather, the 

proposed rule change seeks merely to 

provide Members with additional clarity 

and transparency regarding Exchange 

port message rate limits. 

Importantly, the Exchange notes that 

similar to other exchanges, proposed 

rule 11.23 does not include an explicit 

number of messages or range of 

messages, that may be imposed by the 

Exchange, in its discretion. Accordingly, 

proposed Rule 11.23 places the 

Exchange on par with its peer exchanges 

by preserving the Exchange’s ability to 

adjust the port order rate threshold as 

needed, to ensure the Exchange’s 

operational resiliency. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposal. No written comments 

were solicited or received on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the Exchange consents, the Commission 

will: 

A. By order approve or disapprove 

such proposed rule change, or 

B. institute proceedings to determine 

whether the proposed rule change 

should be 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 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 / Notices 7521 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 93787 

(December 15, 2021), 86 FR 72296 (December 21, 

2021). 

4 15 U.S.C. 78s(b)(2). 

5 Id. 

6 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 93789 

(December 15, 2021), 86 FR 72293. 

4 15 U.S.C. 78s(b)(2). 

• Send an email to rule-comments@

sec.gov. Please include File Number SRCboeEDGX–2022–004 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–CboeEDGX–2022–004. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR-CboeEDGX–2022–004 and 

should be submitted on or before March 

2, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–02667 Filed 2–8–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94140; File No. SR–LTSE– 

2021–08] 

Self-Regulatory Organizations; LongTerm Stock Exchange, Inc.; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change To Modify and Expand 

the Package of Products and Services 

Provided to Companies and Clarify 

Existing Practice Under Rule 14.602 

February 3, 2022. 

On December 2, 2021, Long-Term 

Stock Exchange, Inc. (‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule to 

modify and expand the package of 

products and services provided to 

Companies and clarify existing practice 

under Exchange Rule 14.602 with 

respect to providing Company-specific 

web pages on the Exchange’s website in 

connection with listing on the 

Exchange. The proposed rule change 

was published for comment in the 

Federal Register on December 21, 

2021.3 The Commission has not 

received any comment letters on the 

proposed rule change. 

Section 19(b)(2) of the Act 4 provides 

that, within 45 days of the publication 

of notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is February 4, 

2022. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change. The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change. 

Accordingly, pursuant to Section 

19(b)(2) of the Act,5 the Commission 

designates March 21, 2022, as the date 

by which the Commission shall either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

(File No. SR–LTSE–2021–08). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–02665 Filed 2–8–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94145; File No. SR– 

NASDAQ–2021–099] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Designation of a Longer Period for 

Commission Action on Proposed Rule 

Change To Amend Nasdaq Rule 5815 

Regarding the Use of a Panel Monitor 

Following a Compliance Determination 

by a Nasdaq Listings Qualification 

Hearings Panel 

February 3, 2022. 

On December 10, 2021, The Nasdaq 

Stock Market LLC (‘‘Nasdaq’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend Rule 5815 regarding the use of a 

Hearings Panel Monitor following a 

compliance determination by a Nasdaq 

Listings Qualification Hearings Panel. 

The proposed rule change was 

published for comment in the Federal 

Register on December 21, 2021.3 The 

Commission has received no comments 

on the proposal. 

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 


lotter on DSK11XQN23PROD with NOTICES1