9764 Federal Register / Vol. 87, No. 35 / Tuesday, February 22, 2022 / Notices 

124 17 CFR 200.30–3(a)(12), (57) and (58). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘Member’’ means an individual or 

organization approved to exercise the trading rights 

associated with a Trading Permit. Members are 

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

Exchange Rule 100. 

4A ‘‘branch office’’ is any location where one or 

more associated persons of a Member regularly 

conduct the business of effecting any transactions 

in, or inducing or attempting to induce the 

purchase or sale of any security, or is held out as 

such, with such exclusions pursuant to Exchange 

Rule 1306(c)(1)–(7). See Exchange Rule 1306(c). 

5The Exchange notes that notwithstanding the 

exclusions in subparagraphs (c)(1)–(7) of Exchange 

Rule 1306, any location that is responsible for 

supervising the activities of persons associated with 

a Member at one or more non-branch locations of 

such Member is considered to be a branch office. 

See Exchange Rule 1306(d). 

6A Member may demonstrate to the satisfaction 

of the Exchange that because of proximity, special 

reporting or supervisory practice, other 

arrangements may satisfy Exchange Rule 1308(d)’s 

requirements for a particular branch office, or that, 

based upon the written policies and procedures of 

such Member providing for a systematic risk-based 

surveillance system, the Member submits a 

proposal to the Exchange and receives, in writing, 

an exemption from the requirement in Exchange 

1308(d), pursuant to Exchange Rule 1308(e). 

7See Exchange Rule 1308(d)(2). 

8See Securities Exchange Act Release No. 90937 

(January 25, 2021), 86 FR 6944 (January 15, 2021) 

(SR–MIAX–2021–01). 

9See id. 

10See Securities and Exchange Act Release Nos. 

89188 (June 30, 2020), 85 FR 40713 (July 7, 2020) 

(SR–FINRA–2020–019); and 90454 (November 18, 

2020), 85 FR 75097 (November 24, 2020) (Notice of 

Filing and Immediate Effectiveness of File No. SR– 

FINRA–2020–040). 

11See The Centers for Disease Control and 

Prevention (‘‘CDC’’), What You Need to Know 

About Variants, https://www.cdc.gov/coronavirus/ 

2019-ncov/variants/variant.html (stating, in part, 

that ‘‘the Delta variant causes more infections and 

spreads faster than earlier forms of the virus that 

causes COVID19’’) (updated September 3, 2021). 

See also CDC, The Possibility of COVID–19 Illness 

After Vaccination: Breakthrough Infections, https:// 

www.cdc.gov/coronavirus/2019-ncov/vaccines/ 

effectiveness/why-measure-effectiveness/ 

breakthrough-cases.html (stating, in part, that 

‘‘COVID–19 vaccines are effective at preventing 

infection, serious illness, and death. Most people 

who get COVID–19 are unvaccinated. However, 

since vaccines are not 100% effective at preventing 

infection, some people who are fully vaccinated 

will still get COVID–19 . . . People who get vaccine 

breakthrough infections can be contagious’’) 

(updated August 23, 2021). 

12For example, President Joe Biden on July 29, 

2021, announced several measures to increase the 

number of people vaccinated against COVID–19 and 

to slow the spread of the Delta variant, including 

strengthening safety protocols for federal 

proceedings to determine whether the 

proposed rule change should be 

approved or disapproved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.124

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–03654 Filed 2–18–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94251; File No. SR–MIAX– 

2022–09] 

Self-Regulatory Organizations: Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change by Miami 

International Securities Exchange, LLC 

To Amend Exchange Rule 1308, 

Supervision of Accounts 

February 15, 2022. 

Pursuant to the provisions of Section 

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

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on February 3, 2022, Miami 

International Securities Exchange, LLC 

(‘‘MIAX Options’’ or the ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing a proposal to 

amend Exchange Rule 1308, 

Supervision of Accounts, to extend the 

temporary remote inspection relief for 

Members 3 to complete their branch 

office 4 inspections for the calendar 

years 2020 and 2021 to include calendar 

year 2022 through December 31, 2022. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/ at MIAX Options’ principal 

office, and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Exchange Rule 1308, Supervision of 

Accounts, to extend the temporary 

remote inspection relief for Members to 

complete their branch office inspections 

for the calendar years 2020 and 2021 to 

include calendar year 2022 through 

December 31, 2022. 

The COVID–19 pandemic has caused 

a host of operational disruptions to the 

securities industry and impacted 

Members, regulators, investors, and 

other stakeholders. In response to the 

pandemic, the Exchange began 

providing temporary relief to Members 

from specified Exchange Rules and 

requirements, including Exchange Rule 

1308(d), Annual Branch Office 

Inspections. 

Exchange Rules require Members to 

conduct branch 5 and non-branch office 

and location inspections pursuant to 

certain annual cycles. Specifically, 

pursuant to Exchange Rule 1308(d), 

each branch office that supervises one 

or more non-branch location must be 

inspected no less often than once each 

calendar year, unless it qualifies for 

certain exemptions.6 Every branch 

office, without exception, must be 

inspected at least once every three 

calendar-years. Members must maintain 

written reports of such inspections.7

In November 2020, the Exchange 

adopted Exchange Rule 1308(d)(4) and 

(d)(5), which has expired by its terms, 

that extended the time by which 

Members must complete their calendar 

year 2020 inspection obligations to 

March 31, 2021, without an on-site visit 

to the office or location.8 The Exchange 

Rule 1308(d)(5) automatically sunset on 

December 31, 2021, to provide Members 

the option of satisfying their inspection 

obligations under Exchange Rule 1308 

remotely for calendar years 2020 and 

2021, subject to specified conditions,9

due to the logistical challenges of going 

on-site while public health and safety 

concerns related to COVID–19 persisted. 

The Exchange notes that these 

temporary rules are substantively 

identical to the temporary inspection 

extension and remote relief rules filed 

by the Financial Industry Regulatory 

Authority (‘‘FINRA’’).10

While there are signs of improvement, 

much uncertainty remains. The 

emergence of the COVID–19 variants,11

dissimilar vaccination rates throughout 

the United States, and the uptick in 

transmissions in many locations 

indicate that COVID–19 remains an 

active and real public health concern.12


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Federal Register / Vol. 87, No. 35 / Tuesday, February 22, 2022 / Notices 9765 

government employees and contractors. See https:// 

www.whitehouse.gov/briefing-room/statementsreleases/2021/07/29/factsheet-president-biden-toannounce-new-actions-to-get-moreamericansvaccinated-and-slow-the-spread-of-thedelta-variant. More recently, President Joe Biden on 

August 31, 2021, briefed the press on, among other 

things, the government’s response to the COVID–19 

surge, noting the government’s continuing efforts to 

help states with Delta variant outbreaks. See https:// 

www.whitehouse.gov/briefing-rom/press-briefings/ 

2021/08/31/pressbriefing-by-white-house-covid-19- 

response-team-and-public-health-officials-53/. 

13The Exchange notes that a majority of its 

Members are FINRA member firms as well, and that 

through FINRA’s ongoing monitoring, the Exchange 

has learned that many of its Members have delayed 

plans to require a full return to the office and that 

most continue to operate in a remote or hybrid 

environment. 

14See Securities and Exchange Act Release Nos. 

93002 (September 15, 2021), 86 FR 52508 

(September 21, 2021) (SR–FINRA–2021–023); and 

94018 (January 20, 2022), 87 FR 4072 (January 26, 

2022) (SR–FINRA–2022–001). 

15 Id. 

16 15 U.S.C. 78f(b). 

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

The Exchange understands that 

Members have delayed their return-tooffice plans due to the continued 

pandemic and are considering 

implementing or have implemented 

hybrid work arrangements dependent 

on functions and regulatory 

requirements.13 To that end, in order to 

address ongoing industry-wide concerns 

regarding having to conduct in-person 

office inspections while safety concerns 

related to the pandemic persist and to 

align with pandemic-related regulatory 

relief provided by FINRA, which 

recently extended their substantively 

identical temporary remote inspection 

rules,14 the Exchange proposes to 

extend Exchange Rule 1308(d)(5) to 

cover calendar year 2022 inspection 

obligations through December 31, 2022. 

The proposed extension would provide 

clarity to Members on regulatory 

requirements and account for the time 

needed for many Members to carefully 

assess when and how to have their 

employees safely return to their offices 

in light of vaccination coverage in the 

U.S. and transmission levels of the 

virus, including any emergent variants 

throughout the country. 

By extending Exchange Rule 

1308(d)(5) through December 31, 2022, 

the Exchange does not propose to 

amend the other conditions of the 

temporary rule. The proposed 

amendment to Exchange Rule 1308(d)(5) 

simply provides that for calendar year 

2022, a Member has the option to 

conduct those inspections remotely 

through December 31, 2022. The current 

conditions of Exchange Rule 1308(d)(5) 

for Members that elect to conduct 

remote inspections would remain 

unchanged. Such Members must amend 

or supplement their written supervisory 

procedures for remote inspections, use 

remote inspections as part of an 

effective supervisory system, and 

maintain the required documentation. 

The additional period of time would 

also enable the Exchange to further 

monitor the effectiveness of remote 

inspections and their impacts—positive 

or negative—on Members’ overall 

supervisory systems in the evolving 

workplace. Notwithstanding the 

proposed temporary rule change, a 

Member remains subject to the other 

requirements of Exchange Rule 1308(d). 

The Exchange continues to believe 

this temporary remote inspection option 

is a reasonable alternative to provide to 

Members to fulfill their Exchange Rule 

1308(d) obligations during the 

pandemic and is designed to achieve the 

investor protection objectives of the 

inspection requirements under these 

unique circumstances. Members should 

consider whether, under their particular 

operating conditions, reliance on remote 

inspections would be reasonable under 

the circumstances. For example, 

Members with offices that are open to 

the public or that are otherwise doing 

business as usual should consider 

whether some form of in-person 

inspections would be feasible and 

appropriately contribute to a 

supervisory system that is reasonably 

designed to achieve compliance with 

applicable securities laws and 

regulations as well as with applicable 

Exchange Rules. 

The Exchange notes that the proposed 

rule change is substantively identical to 

the proposed rule changes recently filed 

by FINRA.15 The Exchange notes that 

MIAX Chapter XIII is incorporated by 

reference into the rulebooks of the 

Exchange’s affiliates, MIAX PEARL, LLC 

(‘‘Pearl’’) and MIAX Emerald, LLC 

(‘‘Emerald’’). As such, the amendments 

to MIAX Chapter XIII proposed herein 

will also apply to MIAX Pearl and 

MIAX Emerald Chapters XIII. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.16 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 17 requirements that the rules of 

an exchange be 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 regulating, clearing, settling, 

processing information with respect to, 

and 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. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 18 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange believes 

that, in light of the impact of COVID– 

19 on the performance of on-site office 

and location inspections pursuant to 

Exchange Rule 1308(d), the proposed 

temporary rule change is intended to 

provide Members a temporary 

regulatory option to conduct inspections 

of offices and locations remotely during 

the calendar year 2022. The proposed 

temporary rule change does not relieve 

Members from meeting their existing 

core regulatory obligations to establish 

and maintain a system to supervise the 

activities of each associate person that is 

reasonably designed to achieve 

compliance with applicable securities 

laws and regulations as well as with 

applicable Exchange Rules that directly 

serve investor protection. In a time 

when faced with ongoing challenges 

resulting from the COVID–19 pandemic, 

the Exchange believes that the proposed 

temporary rule change provides sensibly 

tailored relief that will afford Members 

the ability to assess when and how to 

implement their work re-entry plans as 

measured against the health and safety 

of their personnel, while continuing to 

serve and promote the protection of 

investors and the public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe the proposed 

rule change will impose any burden on 

intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act because the 

proposed extension of the temporary 

remote inspection relief rule will apply 

equally to all Members required to 

conduct office and location inspections 

in calendar year 2022 through December 

31, 2022. The Exchange further does not 

believe that the proposed extension to 

the temporary rule will impose any 

burden on intermarket competition 

because it relates only to the extension 


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9766 Federal Register / Vol. 87, No. 35 / Tuesday, February 22, 2022 / Notices 

19See supra note 14. 

20 15 U.S.C. 78s(b)(3)(A). 

21 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. 22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

of the remote manner in which 

inspections for the calendar year 2022 

may be conducted. Additionally, and as 

stated above, FINRA has recently 

submitted a filing to extend its 

substantively identical temporary 

remote relief rule for its trading permit 

holders and members in the same 

manner.19

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to 19(b)(3)(A) 

of the Act 20 and Rule 19b–4(f)(6) 21

thereunder. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

MIAX–2022–09 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–MIAX–2022–09. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

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

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

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

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

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

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. 

All submissions should refer to File 

Number SR–MIAX–2022–09 and should 

be submitted on or before March 15, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–03648 Filed 2–18–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94263; File No. SR– 

EMERALD–2022–06] 

Self-Regulatory Organizations; MIAX 

Emerald, LLC; Notice of Filing of a 

Proposed Rule Change To Establish 

Fees for the Exchange’s cToM Market 

Data Product; Suspension of and 

Order Instituting Proceedings To 

Determine Whether To Approve or 

Disapprove the Proposed Rule Change 

February 15, 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 February 

7, 2022, MIAX Emerald, LLC (‘‘MIAX 

Emerald’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

as described in Item II below, which 

Item has been prepared by the 

Exchange. The Exchange filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A)(ii) of the Act,3 and 

Rule 19b–4(f)(2) thereunder.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons and is, 

pursuant to Section 19(b)(3)(C) of the 

Act, hereby: (i) Temporarily suspending 

the proposed rule change; and (ii) 

instituting proceedings to determine 

whether to approve or disapprove the 

proposed rule change. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing a proposal to 

amend the Exchange’s Fee Schedule 

(‘‘Fee Schedule’’) to establish fees for 

the market data product known as 

MIAX Emerald Complex Top of Market 

(‘‘cToM’’). The fees became operative on 

February 7, 2022. The text of the 

proposed rule change is available on the 

Exchange’s website at http://

www.miaxoptions.com/rule-filings/ 

emerald, at MIAX’s principal office, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Description of 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 


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